By Niraj Goyal

This Information Technology (IT) case study was done during the implementation of Total Quality Management (TQM) in a financial services company with several hundred computers and computer users in multiple locations throughout India. The results have widespread applicability and in particular are aimed at organizations with large computer networks, IT facilities management companies and customer service providers. Success in any improvement effort is a function of techniques accompanied by a mindset change in the organization. This project was undertaken as part of the second wave of projects aimed at spreading the quality mindset in the organization.

The narrative unfolds in the chronological sequence of TQM's Seven Steps of Problem Solving (similar to DMAIC in Six Sigma), describing the critical process stages where results were achieved and mindsets changed. 

Step 1 – Define the Problem

Selecting the theme: After an initial two-day TQM awareness program, the company's senior management selected a theme by consensus: "Dramatic Improvements in Customer Service." As part of the theme, one of the improvement areas selected was "Reducing the response time to resolve IT (hardware and software) problems faced by internal customers." The company had outsourced its network and facility management. A small technical services management team and "help desk" oversaw the vendors' work.

Problem = Customer desire – actual status: Detailed data was available regarding the time of receipt of each call from the customer (in this case, the network users) and the time of call closure. Monthly management reports aggregated the performance by enumerating the number of calls that were resolved in the following categories:

Call Closure Time

< 30  Mins.

< 60  Mins.

< 2  Hours

> 2  Hours

< 24  Hours

< 48  Hours

> 48  Hour

While the information about what happened was well recorded, there was no information about what users had desired to have happen. The deviation from user desires or even the service standard promised to users was not measured.

Defining the problem therefore resulted in a changed mindset from data being used just as an internal record to measuring and "assuring a service standard to the user." The calls were categorized into groups that would be expected to have a service standard time of closure as defined in the table above.

A month of data was analyzed by subtracting the service standard time expected to be delivered and the actual time taken to resolve each call. The gaps between the actual closure time and the standard time were a measure of the problem. It was clear that the data needed to be prioritized in order to proceed. A Pareto diagram was drawn (Figure 1). It indicated that two categories < 30 minutes (67%) and > 120 minutes (27%) constituted 87% of the incoming load. It was decided to attack the < 30 minutes category first.

Figure 1: Incoming Call Categories

Definition of metrics: In order to define clear metrics, the concept of sigma was introduced to represent variability in timeliness of service. It was quickly grasped by the group that a 3-sigma standard translates into a 99.7 percent on-time performance. (Average + 3 sigma) of the actual closure times should be less than the service standard.

This meant that for the < 30-minute call category:

If T30 = average + 3 sigma of 30-minute calls' closure times
    T30 < 30 minutes    for a 99.7 percent on time performance

The past month's data revealed:
    T30 = 239 minutes

The objective was now clearly defined:
    Reduce T30 from 239 to <30, i.e. by 85 percent

Dividing the Task into Phase A and Phase B

Since making such a big reduction was too daunting a task for a team embarking on its first project, using the concept that "improvement occurs step by step," the initial objective, or Phase A, was to reduce T30 by 50 percent. A project charter was drawn up accordingly.

Step 2 (Phase A) – Analyze the Problem: The T30 calls were arranged in descending order according to actual time of closure. Those calls that had taken more than 30 minutes were segregated for analysis. It was recognized that the problem of quality was one of variability, and that the most effective solution to the problem would be ending the causes of calls with a very high time of closure. Thus, T30 calls that had taken more than 130 minutes (T30:130) were analyzed first (Figure 2).

Figure 2: Calls Longer Than 130 Minutes

The top three categories contributed approximately 75 percent of the problem. To sequence the order of attack, the group chose "big and easy" to precede "big and difficult" problems. Using that criteria, "Not Aware of Change Rule" was chosen.

Step 3 (Phase A) – Find the Root Cause: In these cases the engineer attending to the call had not closed the call after attending to it. The "Five Whys" technique was used to determine the root cause – Why had he not closed the call? Why was he not aware that he was supposed to close the call? Why was the procedure of call closure changed and he was not informed? Why is there no standard operating procedure to inform employees before closing the call?

Step 4 (Phase A) – Generate and Test Countermeasure Ideas: Countermeasures were easily identified – first, inform all the engineers; second, develop a standard procedure for informing all users before making a change in procedure which affects them. The engineers were informed of the new procedure.

Step 5 (Phase A) – Check the Results: The next three weeks showed a dramatic drop in the T30 value from 239 to 121 minutes. The objective of 50 percent reduction had been achieved.

Step 6 (Phase A) – Standardize the Results: A standard operating procedure was drawn up for future reference. An X Bar control chart (Figure 3) was introduced for routine day-to-day control.

Step 7 (Phase A) – Present a Quality Improvement Report: Drawing up the quality improvement report was deferred due to the project being continued to attempt to make further improvements.

Phase B to Further Reduce Downtime

Step 2 (Phase B) – Analyze the Problem: The second phase of the project, or Phase B, was to reduce the T30 value by 50 percent again, from less than 120 minutes to less than 60. The T30 calls which took more than 30 minutes to close were collated and arranged by category in descending order of time to close. There were two categories with the following data:

Categories      Calls      Minutes      Minutes/Call
Log-in              39           2720                 70
Printing              16           1672               104

Based upon the "big and easy" principle, the group chose to attempt the printing problem first. The printing calls were sub-categorized by "location" and then by "solution" since they had already been resolved.

Seven of the 16 calls were from Location 1,and seven of the 16 calls had been solved using the same remedy – reinstalling the printer driver.

Step 3 (Phase B) – Finding the Root Cause: Why did the printer driver need frequent re-installation? The group brainstormed and generated 10 possible causes. A check sheet to collect data was designed. For the next two weeks, the engineers were asked to record the reason of why the printer driver needed to be reinstalled each time they were attending to such a call.

Step 3 (Phase B) – Finding the Root Cause: Why did the printer driver need frequent re-installation? The group brainstormed and generated 10 possible causes. A check sheet to collect data was designed. For the next two weeks, the engineers were asked to record the reason of why the printer driver needed to be reinstalled each time they were attending to such a call.

Figure 4: Control Chart for 30-Minute Calls (October)

When reviewed, the data surprised the group members. It clearly illustrated the superiority of data-based problem-solving over intuitive problem-solving. And it acted as a major mindset changer. The problem, the data showed, was that the printer was going off-line rather than its driver needing reinstallation.

Why was the printer going off-line? Brainstorming quickly produced the cause: The machines being used had three versions of the Windows operating system – 98, 2000 and XP. In the Windows 98 version there was a problem – if a user tried to print without logging-in, the printer would go off-line and the next user would experience the problem. The cause was quickly confirmed as the root cause by one of the members trying to print without logging-in.

Step 4 (Phase B) – Generate and Implement Countermeasure Ideas: The group discussion produced the idea of adopting a software change to not allow a user to try printing without logging-in. All the machines using Windows 98 were identified, and the change was implemented. Applying the standard operating procedure used in Phase A, the group was careful to inform all users of the change before implementing it.

Step 5 (Phase B) – Check the Results: The calls were monitored for another two weeks and the results amazed the group. The data showed a dramatic drop of the T30 value from 121 to 47 minutes (Figure 4). A total reduction of 80 percent had been obtained in the T30 value. The question arose why had the reduction been much more dramatic than the data as per the Pareto chart would indicate. There are two reasons:

1. While the problem-solving method identified the vital problems using the calls that took a long time to resolve, there were undoubtedly many calls with the same problem and cause that were attended to within the standard time and therefore did not show in the analysis.
2. The system of daily control chart plotting and review with the engineers and the group raised the awareness of timeliness and thereby increased the urgency for a solution.

Step 6 (Phase B) – Standardize the Results: A standard procedure was developed and circulated to all regions to implement the change at all locations.

Step 7 (Phase B) – Present a Quality Improvement Report: A quality improvement report was written and presented to the Steering Committee.

Future Work and Conclusions

The work of the group is continuing in the following directions:

1. The T30 calls are now being analyzed to further reduce the time. Two interesting solutions are emerging that promise to cut the downtime further.
2. T60 calls are now under study. The average + 3 sigma of closure time of this category has been measured at 369 minutes. Work is being done to reduce it to < 60 minutes.

This case study demonstrates several principles of TQM and Six Sigma:

1. What cannot be measured, cannot be improved. (Establishing service standards and the use of sigma and control charts for on-time delivery of services were essential in making improvements.)
2. It is important to develop customer-oriented metrics.
3. Mindset change is crucial to the success of any improvement effort.
4. Standardizing the improvement can take longer than the improvement itself. (It is still continuing in this application.)
5. There is value in step-by-step improvement and continuous improvement.

About the Author

Niraj Goyal has 25 years of experience in multinationals in various operating roles, among them operations director of Cadbury India Ltd., where he was among the leading implementers of the quality movement. He is the founder of Cynergy Creators Private Ltd. Mr. Goyal consults in India and the United States with manufacturing, IT, media and financial services industries. He specializes in training and facilitating the implementation of the techniques of Six Sigma/TQM. Mr. Goyal can be reached at nirajgoyal@vsnl.in.

Total Quality Management is a management approach that originated in the 1950's and has steadily become more popular since the early 1980's. Total Quality is a description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. The culture requires quality in all aspects of the company's operations, with processes being done right the first time and defects and waste eradicated from operations.

To be successful implementing TQM, an organization must concentrate on the eight key elements:

1. Ethics
2. Integrity
3. Trust
4. Training
5. Teamwork
6. Leadership
7. Recognition
8. Communication

Key Elements
TQM has been coined to describe a philosophy that makes quality the driving force behind leadership, design, planning, and improvement initiatives. For this, TQM requires the help of those eight key elements. These elements can be divided into four groups according to their function. The groups are:
I. Foundation - It includes: Ethics, Integrity and Trust.
II. Building Bricks - It includes: Training, Teamwork and Leadership.
III. Binding Mortar - It includes: Communication.
IV. Roof - It includes: Recognition.

I. Foundation
TQM is built on a foundation of ethics, integrity and trust. It fosters openness, fairness and sincerity and allows involvement by everyone. This is the key to unlocking the ultimate potential of TQM. These three elements move together, however, each element offers something different to the TQM concept.

1. Ethics - Ethics is the discipline concerned with good and bad in any situation. It is a two-faceted subject represented by organizational and individual ethics. Organizational ethics establish a business code of ethics that outlines guidelines that all employees are to adhere to in the performance of their work. Individual ethics include personal rights or wrongs.

2. Integrity - Integrity implies honesty, morals, values, fairness, and adherence to the facts and sincerity. The characteristic is what customers (internal or external) expect and deserve to receive. People see the opposite of integrity as duplicity. TQM will not work in an atmosphere of duplicity.

3. Trust - Trust is a by-product of integrity and ethical conduct. Without trust, the framework of TQM cannot be built. Trust fosters full participation of all members. It allows empowerment that encourages pride ownership and it encourages commitment. It allows decision making at appropriate levels in the organization, fosters individual risk-taking for continuous improvement and helps to ensure that measurements focus on improvement of process and are not used to contend people. Trust is essential to ensure customer satisfaction. So, trust builds the cooperative environment essential for TQM.

II. Bricks
Basing on the strong foundation of trust, ethics and integrity, bricks are placed to reach the roof of recognition. It includes:

4. Training - Training is very important for employees to be highly productive. Supervisors are solely responsible for implementing TQM within their departments, and teaching their employees the philosophies of TQM. Training that employees require are interpersonal skills, the ability to function within teams, problem solving, decision making, job management performance analysis and improvement, business economics and technical skills. During the creation and formation of TQM, employees are trained so that they can become effective employees for the company.

5. Teamwork - To become successful in business, teamwork is also a key element of TQM. With the use of teams, the business will receive quicker and better solutions to problems. Teams also provide more permanent improvements in processes and operations. In teams, people feel more comfortable bringing up problems that may occur, and can get help from other workers to find a solution and put into place. There are mainly three types of teams that TQM organizations adopt:

A. Quality Improvement Teams or Excellence Teams (QITS) - These are temporary teams with the purpose of dealing with specific problems that often re-occur. These teams are set up for period of three to twelve months.
B. Problem Solving Teams (PSTs) - These are temporary teams to solve certain problems and also to identify and overcome causes of problems. They generally last from one week to three months.
C. Natural Work Teams (NWTs) - These teams consist of small groups of skilled workers who share tasks and responsibilities. These teams use concepts such as employee involvement teams, self-managing teams and quality circles. These teams generally work for one to two hours a week.

6. Leadership - It is possibly the most important element in TQM. It appears everywhere in organization. Leadership in TQM requires the manager to provide an inspiring vision, make strategic directions that are understood by all and to instill values that guide subordinates. For TQM to be successful in the business, the supervisor must be committed in leading his employees. A supervisor must understand TQM, believe in it and then demonstrate their belief and commitment through their daily practices of TQM. The supervisor makes sure that strategies, philosophies, values and goals are transmitted down through out the organization to provide focus, clarity and direction. A key point is that TQM has to be introduced and led by top management. Commitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent with the objectives of the company and in creating and deploying well defined systems, methods and performance measures for achieving those goals.

III. Binding Mortar
7. Communication - It binds everything together. Starting from foundation to roof of the TQM house, everything is bound by strong mortar of communication. It acts as a vital link between all elements of TQM. Communication means a common understanding of ideas between the sender and the receiver. The success of TQM demands communication with and among all the organization members, suppliers and customers. Supervisors must keep open airways where employees can send and receive information about the TQM process. Communication coupled with the sharing of correct information is vital. For communication to be credible the message must be clear and receiver must interpret in the way the sender intended.

There are different ways of communication such as:
A. Downward communication - This is the dominant form of communication in an organization. Presentations and discussions basically do it. By this the supervisors are able to make the employees clear about TQM.
B. Upward communication - By this the lower level of employees are able to provide suggestions to upper management of the affects of TQM. As employees provide insight and constructive criticism, supervisors must listen effectively to correct the situation that comes about through the use of TQM. This forms a level of trust between supervisors and employees. This is also similar to empowering communication, where supervisors keep open ears and listen to others.
C. Sideways communication - This type of communication is important because it breaks down barriers between departments. It also allows dealing with customers and suppliers in a more professional manner.

IV. Roof
8. Recognition - Recognition is the last and final element in the entire system. It should be provided for both suggestions and achievements for teams as well as individuals. Employees strive to receive recognition for themselves and their teams. Detecting and recognizing contributors is the most important job of a supervisor. As people are recognized, there can be huge changes in self-esteem, productivity, quality and the amount of effort exhorted to the task at hand. Recognition comes in its best form when it is immediately following an action that an employee has performed. Recognition comes in different ways, places and time such as,

By Khurram Hashmi

Total Quality Management is a management approach that originated in the 1950's and has steadily become more popular since the early 1980's. Total Quality is a description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. The culture requires quality in all aspects of the company's operations, with processes being done right the first time and defects and waste eradicated from operations.

Total Quality Management, TQM, is a method by which management and employees can become involved in the continuous improvement of the production of goods and services. It is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices.

Some of the companies who have implemented TQM include Ford Motor Company, Phillips Semiconductor, SGL Carbon, Motorola and Toyota Motor Company.¹

TQM Defined
TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, engineering, and production, customer service, etc.) to focus on meeting customer needs and organizational objectives.

TQM views an organization as a collection of processes. It maintains that organizations must strive to continuously improve these processes by incorporating the knowledge and experiences of workers. The simple objective of TQM is "Do the right things, right the first time, every time". TQM is infinitely variable and adaptable. Although originally applied to manufacturing operations, and for a number of years only used in that area, TQM is now becoming recognized as a generic management tool, just as applicable in service and public sector organizations. There are a number of evolutionary strands, with different sectors creating their own versions from the common ancestor. TQM is the foundation for activities, which include:

• Commitment by senior management and all employees
• Meeting customer requirements
• Reducing development cycle times
• Just In Time/Demand Flow Manufacturing
• Improvement teams
• Reducing product and service costs
• Systems to facilitate improvement
• Line Management ownership
• Employee involvement and empowerment
• Recognition and celebration
• Challenging quantified goals and benchmarking
• Focus on processes / improvement plans
• Specific incorporation in strategic planning

This shows that TQM must be practiced in all activities, by all personnel, in Manufacturing, Marketing, Engineering, R&D, Sales, Purchasing, HR, etc.²

Principles of TQM
The key principles of TQM are as following:³

• Management Commitment
  1. Plan (drive, direct)
  2. Do (deploy, support, participate)
  3. Check (review)
  4. Act (recognize, communicate, revise)
• Employee Empowerment
  1. Training
  2. Suggestion scheme
  3. Measurement and recognition
  4. Excellence teams
• Fact Based Decision Making
  1. SPC (statistical process control)
  2. DOE, FMEA
  3. The 7 statistical tools
  4. TOPS (FORD 8D - Team Oriented Problem Solving)
• Continuous Improvement
  1. Systematic measurement and focus on CONQ
  2. Excellence teams
  3. Cross-functional process management
  4. Attain, maintain, improve standards
• Customer Focus
  1. Supplier partnership
  2. Service relationship with internal customers
  3. Never compromise quality
  4. Customer driven standards

The Concept of Continuous Improvement by TQM
TQM is mainly concerned with continuous improvement in all work, from high level strategic planning and decision-making, to detailed execution of work elements on the shop floor. It stems from the belief that mistakes can be avoided and defects can be prevented. It leads to continuously improving results, in all aspects of work, as a result of continuously improving capabilities, people, processes, technology and machine capabilities.

Continuous improvement must deal not only with improving results, but more importantly with improving capabilities to produce better results in the future. The five major areas of focus for capability improvement are demand generation, supply generation, technology, operations and people capability.

A central principle of TQM is that mistakes may be made by people, but most of them are caused, or at least permitted, by faulty systems and processes. This means that the root cause of such mistakes can be identified and eliminated, and repetition can be prevented by changing the process.¹

There are three major mechanisms of prevention:

1. Preventing mistakes (defects) from occurring (Mistake - proofing or Poka-Yoke).
2. Where mistakes can't be absolutely prevented, detecting them early to prevent them being passed down the value added chain (Inspection at source or by the next operation).
3. Where mistakes recur, stopping production until the process can be corrected, to prevent the production of more defects. (Stop in time).

Implementation Principles and Processes
A preliminary step in TQM implementation is to assess the organization's current reality. Relevant preconditions have to do with the organization's history, its current needs, precipitating events leading to TQM, and the existing employee quality of working life. If the current reality does not include important preconditions, TQM implementation should be delayed until the organization is in a state in which TQM is likely to succeed.

If an organization has a track record of effective responsiveness to the environment, and if it has been able to successfully change the way it operates when needed, TQM will be easier to implement. If an organization has been historically reactive and has no skill at improving its operating systems, there will be both employee skepticism and a lack of skilled change agents. If this condition prevails, a comprehensive program of management and leadership development may be instituted. A management audit is a good assessment tool to identify current levels of organizational functioning and areas in need of change. An organization should be basically healthy before beginning TQM. If it has significant problems such as a very unstable funding base, weak administrative systems, lack of managerial skill, or poor employee morale, TQM would not be appropriate.⁵

However, a certain level of stress is probably desirable to initiate TQM. People need to feel a need for a change. Kanter (1983) addresses this phenomenon be describing building blocks which are present in effective organizational change. These forces include departures from tradition, a crisis or galvanizing event, strategic decisions, individual "prime movers," and action vehicles. Departures from tradition are activities, usually at lower levels of the organization, which occur when entrepreneurs move outside the normal ways of operating to solve a problem. A crisis, if it is not too disabling, can also help create a sense of urgency which can mobilize people to act. In the case of TQM, this may be a funding cut or threat, or demands from consumers or other stakeholders for improved quality of service. After a crisis, a leader may intervene strategically by articulating a new vision of the future to help the organization deal with it. A plan to implement TQM may be such a strategic decision. Such a leader may then become a prime mover, who takes charge in championing the new idea and showing others how it will help them get where they want to go. Finally, action vehicles are needed and mechanisms or structures to enable the change to occur and become institutionalized.⁸

Steps in Managing the Transition
Beckhard and Pritchard (1992) have outlined the basic steps in managing a transition to a new system such as TQM: identifying tasks to be done, creating necessary management structures, developing strategies for building commitment, designing mechanisms to communicate the change, and assigning resources.

Task identification would include a study of present conditions (assessing current reality, as described above); assessing readiness, such as through a force field analysis; creating a model of the desired state, in this case, implementation of TQM; announcing the change goals to the organization; and assigning responsibilities and resources. This final step would include securing outside consultation and training and assigning someone within the organization to oversee the effort. This should be a responsibility of top management. In fact, the next step, designing transition management structures, is also a responsibility of top management. In fact, Cohen and Brand (1993) and Hyde (1992) assert that management must be heavily involved as leaders rather than relying on a separate staff person or function to shepherd the effort. An organization wide steering committee to oversee the effort may be appropriate. Developing commitment strategies was discussed above in the sections on resistance and on visionary leadership.⁶

To communicate the change, mechanisms beyond existing processes will need to be developed. Special all-staff meetings attended by executives, sometimes designed as input or dialog sessions, may be used to kick off the process, and TQM newsletters may be an effective ongoing communication tool to keep employees aware of activities and accomplishments.

Management of resources for the change effort is important with TQM because outside consultants will almost always be required. Choose consultants based on their prior relevant experience and their commitment to adapting the process to fit unique organizational needs. While consultants will be invaluable with initial training of staff and TQM system design, employees (management and others) should be actively involved in TQM implementation, perhaps after receiving training in change management which they can then pass on to other employees. A collaborative relationship with consultants and clear role definitions and specification of activities must be established.

In summary, first assess preconditions and the current state of the organization to make sure the need for change is clear and that TQM is an appropriate strategy. Leadership styles and organizational culture must be congruent with TQM. If they are not, this should be worked on or TQM implementation should be avoided or delayed until favorable conditions exist.

Remember that this will be a difficult, comprehensive, and long-term process. Leaders will need to maintain their commitment, keep the process visible, provide necessary support, and hold people accountable for results. Use input from stakeholder (clients, referring agencies, funding sources, etc.) as possible; and, of course, maximize employee involvement in design of the system.⁷

Always keep in mind that TQM should be purpose driven. Be clear on the organization's vision for the future and stay focused on it. TQM can be a powerful technique for unleashing employee creativity and potential, reducing bureaucracy and costs, and improving service to clients and the community.

Conclusion
TQM encoureges participation amongst shop floor workers and managers. There is no single theoretical formalization of total quality, but Deming, Juran and Ishikawa provide the core assumptions, as a "...discipline and philosophy of management which institutionalizes planned and continuous... improvement ... and assumes that quality is the outcome of all activities that take place within an organization; that all functions and all employees have to participate in the improvement process; that organizations need both quality systems and a quality culture.".

About The Author
Khurram Hashmi is an avionics engineer currently working in the Pakistan Air Force Academy. Mr. Hashmi has a inclination in electronics and Quality Management.

Footnotes And References
1. Gilbert, G. (1992). Quality Improvement in a Defense Organization. Public Productivity and Management Review, 16(1), 65-75.
2. Hyde, A. (1992). The Proverbs of Total Quality Management: Recharting the Path to Quality Improvement in the Public Sector. Public Productivity and Management Review, 16(1), 25-37.
3. Martin, L. (1993). "Total Quality Management in the Public Sector," National Productivity Review, 10, 195-213.
4. Swiss, J. (1992). Adapting TQM to Government. Public Administration Review, 52, 356-362.
5. Tichey, N. (1983). Managing Strategic Change. New York: John Wiley & Sons.
6. Hill Stephen, 1991. "Why Quality Circles failed but Total Quality management might succeed." British journal of industrial relations, 29(4), 541-568.
7. Ishikawa, K, 1985.What is Total Quality Control? The Japanese way. Englewood Cliffs, New Jersey, Prentice- Hall.
8. Smith, AK, 1993. Total Quality Management in the Public sector. Quality Progress, June 1993, 45-48.