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Page 4 of 7
Example Cases
Valuable lessons can be learned from the following organisations:
Pick Salami and Meat Processing Company, Hungary
TQM earns company international recognition
In 1993, the management at Pick Meat, a Hungarian salami and meat processing company, embarked on a three-year project to implement ISO 9001, as well as Hazard Analysis and Critical Control Point (HACCP), and Quality Analysis and Critical Control Point (QACCP). The management team also wanted to put in place essential elements of TQM, including teams, an idea system, and structured documentation of processes that were accessible by intranet. A permanent team was made responsible for the whole TQM effort and other teams formed that encompassed procurement, production, sales and marketing, management systems, IT and human resources. A process of gathering customer and stakeholder comments and integrating them into the system was initiated. A plan-do-check-act (PDCA) cycle, considered essential to business management, was designed and included a company organised customer club, made up of frequent users of Pick products to provide structured feedback. Feedback was facilitated through surveys and pools, two-way communication, a toll-free customer service line, a three-language web site and feedback related to quality awards. In its quality drive Pick paid special attention to the protection of the environment, the reduction of any nuisances associated with its operations and initiated good manufacturing and hygiene practices (GMP and GHP), well-developed plant processes, well-organised technology and detailed documentation of the processes, products and means of production. The company’s ISO 9001 system was registered in 1995, and later improved and audited to ISO 9001:2000. Pick achieved improved financial performance, improved market performance and good feedback from customers, consumers, employees and society. As well as its numerous historical successes, including a Certificate of Merit at the 1935 World Expo in Brussels, Pick has also won the Hungarian National Quality Award in 1999, and was recognised for excellence by the European Foundation for Quality Management in 2001 and 2002. [21]
Fine Papers, South Africa
TQM has positive impact on paper manufacturer
Fine Papers, a South African subsidiary of Sappi Limited, London, consisted of three mills, Enstra, Stanger and Adamas. The implementation of both TQM and Reliability Centred Maintenance (RCM) at the Enstra mill, an uncoated paper manufacturing unit, achieved a positive impact on availability, reliability, quality and the elimination of waste. However, quality was still variable and needed to be inspected throughout the process. As a further improvement, Statistical Process Control (SPC) was introduced, process standards were developed, and capability studies carried out. As a result, production processes were simplified, quality was in-built at source and a move from inspection to prevention was achieved. However, something was still lacking and the mill decided to implement Total Productive Maintenance (TPM). TPM is an approach that improves product and process reliability, which are important concepts in TQM. As part of the implementation of TPM:
1) A multi-disciplinary team, chaired by the production superintendent, was formed and this enabled supplier issues such as non-conformance with specification of raw materials to be addressed immediately; the supplier could be brought to the meeting if required.
2) Autonomous maintenance tasks that enhanced and built on RCM methodologies were identified as: a) set-up; b) minor adjustments; c) machine cleaning (to clean is to inspect, which is a basic premise); d) bolting (operators checking if bolts were tight).
3) Identified training issues could also be addressed immediately by the human resources representative.
4) Operational level day-to-day proactive problem identification and solving was carried out using tools like the “five whys” to check whether other possible causes of failure had been addressed—or whether failure could have been prevented and what was needed to prevent possible reoccurrence of the failure.
5) Any problems identified were put on a gap list. Any gap that could not be closed by the Strategic Business Unit team was then passed to the team at the next level, which was known as the focus team.
6) A third-level team, called the integration team, was set up to solve problems at the systemic level and a fourth level team, the strategic team, chaired by the general manager and comprising all the heads of departments, was made responsible for strategic issues and the entire productivity journey.
Staff agreed that TPM helped the company as a result of its structured and systematic solution approach. [22]
Neptune Limited, UK
Teamwork used to sustain TQM
Neptune (UK) Limited, a precision machining company, obtained accreditation to British Standard 5750 Part 2: ISO 9002 in October 1987, and this provided the company with the opportunity to move towards achieving a synergy between best practice and motivated employees. The organisation set out to create a focused teamwork environment throughout the company to sustain its TQM drive. Neptune employees were used to working independently, so to change the culture to one of interdependence, the company made a strategic decision to develop Self-Directed Work Teams (SDWT). To do this Neptune used in-house employee education sessions involving multi-disciplinary groups (including the shop floor, directors, managers and office staff) to break down barriers. The resulting benefits included:
1) Improved communications between work section members.
2) Work section barriers were broken down.
3) Improved awareness of:
a. the contribution teamwork made towards the achievement of corporate and personal targets
b. the significance and benefits of preparation and planning
c. the need to manage time and work to strict deadlines
d. the importance of managing resources.
4) An internal/external customer culture was developed.
5) Conflicts were reduced.
Neptune employees now value the benefits that are inherent in a SWDT environment, including the opportunity to participate, learn different job skills and feel like an organisational asset. [23]
Automotive Springs Manufacturer, UK
TQM helps SME auto manufacturerreduce defectives
A UK manufacturer of automotive springs began implementing a total quality programme in the early 1990s. The manufacturer established systems thatincluded training, quality assurance, and a comprehensive data collection and measurement system linked with business and departmental objectives. The measurement system, under the Quality Operating System (QOS), monitored three major performance indicators:parts per million (ppm), failure to meet customer demand, and Due Date Performance (DDP). Operatives were empowered to carry out improvements throughout the cell manufacturing set up; the use of quality tools helped mould a culture of quality consciousness amongst employees. Self-assessment was carried out and advanced quality planning tools, Statistical Process Control (SPC), and a Quality Assurance (QA) system were implemented. The quality implementation framework had three main components:
1) Organisational elements affected by TQM implementation.
2) Quality initiatives to improve the organisational elements.
3) The goal or aim of the whole process.
The company reduced its defectives from 5,661ppm in January 1998, to 1,082 ppm in January 1999. These were further reduced to 478ppm in April 1999. In March 1999, the company achieved certification to the third edition of QS 9000. [24]
RPG Enterprises, India
TQM saves millions of dollars in quality costs
In 1996, the management of RPG Enterprises, a large business house in India, determined that quality management was to be the major competitive tool to take the company to global leadership. To facilitate, encourage and motivate staff towards quality excellence throughout the group the company initiated the RPG Quality Awards. The awards’ criteria and system measured results in terms of customer satisfaction, employee satisfaction, business results and impact on society. As a result of their implementation, the following results occurred:
1) Increased quality awareness among the group’s companies and made TQM an important topicwithin the group. Staff started talking about the awards, their eligibility, the criteria, the application and selection process, the winners and their achievements;
2) Generated healthy competition among the group companies;
3) Provided direction and created a uniform TQM culture throughout the group;
4) Recognised contributions made by individual units and motivated managements and employees to work towards improvements on a continuing basis;
5) Improved performance of the company in both financial and non-financial areas;
6) Improved business results which enhanced the competitive position among domestic and global players;
7) The award criteria provided checklists that helped group companies focus their attention on items they might not have otherwise thought of;
8) The award criteria provided benchmarks for measuring company performance and individual performance;
9) The advantages of corporate quality awards were increasingly recognised by management within the group;
10) Contributed to greater improvement efforts all round and helped RPG’s TQM initiative; In 1996 the company saved US$ 0.2 million in poor quality costs from 52 successful TQM projects. In 2000 the company saved US$ 24.4 million in poor quality costs from 2520 successful TQM projects. [25]
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