Page 102 - DMGT206_PRODUCTION_AND_OPERATIONS_MANAGEMENT

Unit 5: Quality Management

Following the success of the first five pilot projects, Tata Steel adopted this approach to quality Notes
improvement. It built the necessary infrastructure for project identification. It also created an
apex council and several divisional quality councils to provide strategic direction, and to focus
on executing quality improvement projects. In the year 2000, Tata Steel won the first JRD Quality
Values Award, the highest internal recognition for total quality in the Tata Group of Companies.
In ten years, with determination, Tata Steel had achieved excellence in manufacturing. Today, it
is the world’s second lowest cost producer of hot rolled coils. In July 2001, the company was
ranked first among 12 of the world’s top steel firms by the US consultancy organization, World
Steel Dynamics.

Understanding Relationships among Factors Determining Quality

The Tata management understood that in order to be successful using a systems approach, there
are a number of basic steps that need to be taken. First, it had to determine how quality fitted
into the overall organizational strategy. Then, more specifically, the role quality played in the
processing of the product. Next, the quality theme had to be clarified. It was essential that
individuals at all levels within the organization comprehended the quality goals.
For any organization the key elements that affect quality are people, facilities, and materials.
We need to understand how they affect quality in the firm. Once a strategy is developed and
communicated and the key elements affecting quality are understood, the conversion process
needs to be examined.

Self Assessment

Fill in the blanks:
6. The key elements for any organization that affect quality are people, facilities, and
……………… .
7. After the development and communication of strategy and well understanding of key
elements of quality, the ……………… process needs to be examined.
5.4 Continual Improvement

Continual improvement of the organization’s overall performance should be a permanent
objective of the organization. Continual improvement comes from a well-established strategy
for quality, one that is based on customer perceptions.
We know that quality can be built into all activities and services. Improved efficiency can result
from focusing not only on achieving present performance targets, but more importantly, by
breaking through existing performance levels to new, higher levels. This can, however, be
assured by a continuous search to identify areas of potential improvements.
Improved efficiency and service can result from focusing not only on achieving present
performance targets, but more importantly, by breaking through existing performance levels
to new, higher levels. A close cooperation between those who provide services and those who
consume services is essential.
Such an organization needs not just good people; but also people who are growing through
education and life experiences. Management, as well as members of the workforce, must continue
to experience new learning and growth. This is the basis for continual improvement. Some
techniques, commonly used for continual improvement, are discussed below:

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