Typical risks which need to be managed in tqm

Involved departments can include administration, marketing, production, and employee training. TQM oversees all activities and tasks needed to maintain a desired level of excellence within a business and its operations. This includes the determination of a quality policy, creating and implementing quality planning and assurance, and quality control and quality improvement measures. A kanban is a physical signal that creates a chain reaction, resulting in a specific action.

Toyota used this idea to implement its just-in-time JIT inventory process. To make its assembly line more efficient, the company decided to keep just enough inventory on hand to fill customer orders as they were generated. Therefore, all parts of Toyota's assembly line are assigned a physical card that has an associated inventory number. Right before a part is installed in a car, the card is removed and moved up the supply chain, effectively requesting another of the same part.

This allows the company to keep its inventory lean and not overstock unnecessary assets. Effective quality management resulted in better automobiles that could be produced at an affordable price. Various iterations of TQM have been developed, each with its own set of principles. Still, certain core elements persist. These include, among others: Good leadership; a focus on quality; putting the customer first; error-correction and improvement as an on-going process; and job training.

Plant Construction and Expansion Item 4. Development and Deployment of the Toyota Production System. Business Essentials. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. FTA can be used to investigate complaints or deviations to fully understand their root cause and to ensure that intended improvements will resolve the issue and not lead to other issues.

FTA is an effective tool for evaluating how multiple factors affect a given issue. The output of an FTA includes a visual representation of failure modes. It is useful both for risk assessment and in developing monitoring programs. Figure 5 depicts a basic FTA. Hazard analysis and critical control points HACCP is used to manage risks with physical, chemical, and biological hazards.

HACCP has seven steps:. HACCP principles can used be to identify, mitigate, and manage risks. HACCP is useful when product and process understanding is sufficiently comprehensive to support identification of critical control points. The output of an HACCP analysis is risk management information that facilitates monitoring of critical points not only in the manufacturing process but also in other life cycle phases.

Preliminary hazard analysis PHA is a simple, inductive method of analysis whose objective is to identify the hazards that can cause harm for a given activity, facility, or system. It is usually carried out early in the development of a product or process, when there is little information on design details or operating procedures. It can be used to help identify the hazards or risks for the development of FMEAs and facilitate specification development activities. These are just some of the tools to aid the process of identifying and integrating risk management throughout the QMS.

There are many more tools available to identify, analyze, mitigate, and monitor risk. The importance of proceduralizing the tools and methods used cannot be overemphasized. The requirements and risk management tools presented in this article can and should be utilized based upon industry practice, guidance documents, and regulatory requirements.

He earned a B. Durivage resides in Lambertville, Michigan. Please feel free to email him at mark. Get more pharma manufacturing insight with our FREE newsletter sign me up. Sign in or Sign-up. Guest Column April 7, By Mark Durivage , Quality Systems Compliance LLC Probably the most significant concern for anyone responsible for implementing, deploying, and maintaining a quality management system is the integration of risk-based thinking. From document control to internal and external audit findings, training programs to customer complaints management , Qualityze helps to create a centralized, automated system to help you manage every process with ease.

Also, you can leverage built-in capabilities like e-Signature, Configurable Workflows, detail audit Trails, and much more. Experience the difference with Qualityze eQMS software today by requesting a free demo! Qualityze Inc. Skip to content By using this site you agree to our use of cookies. Please refer to our privacy policy.

Total Quality Management It refers to the well-defined approach towards organizational productivity and development. Industries Using Total Quality Management Initially introduced for the manufacturing industries, total quality management has proven its potential for different industries nowadays including pharmaceuticals, life sciences, etc.

Focusing on Organizational Effectiveness Though total quality management looks at the bigger picture for quality improvements, it needs consistency of quality processes to maintain customer satisfaction.

Process Improvement In total quality management, the focus is on improving the quality of the processes. Employee Involvement The total quality management approach is not about keeping employees under unnecessary pressure to get the work done, it is more about giving them opportunities to improve. Also, their contribution should be appreciated regularly to maintain a culture of quality. Fact-Based Decision Making When we talk about total quality management, it is very important to take all the data and information into analysis for informed decision-making.

You can get a cloud-based QMS software for added flexibility. Continuous Improvements Total quality management focuses on waste reduction and improved efficiency to ensure that a quality product is produced right from the first time.

Barafort et al. It was found from the study that particularly in the IT sector, the companies incur a large risk. The companies that integrated both frameworks tended to have better and sustainable risk management strategies. These companies are able to overcome risk-related challenges, which eventually improves their overall operational performance. This research revealed that the primary purpose of TQM is to help the organization to survive competition. In contrast, risk management is used to identify the potential known and unknown risk that the company could be exposed to.

Therefore, if the companies adopted TQM and ISO together, they will not only reduce the risk in their projects but also their cost, and they would be also able to gain a competitive advantage. The authors noted that the external environment is constantly changing and the companies are constantly exposed to different types of risks.

Therefore, the companies should synergize and integrate different tools so that risks are identified and then mitigated. In fact, both these aspects of quality management and risk management tend to complement each other. The authors in the previous literature have mutually agreed that quality and risk management should be integrated because doing so will add value to the company.

In the context of quality management, most of the companies usually use the PDCA cycle. However, this plan does control and act cycle has been changed or modified several times in the past.

Dervitsiotis added that PDCA is useful for stable environments but that if the system is unstable, a complex adaptive system cycle should be used, that is, unfreeze, explore, emerge, and guide.

The authors added that modern businesses operate in a dynamic and complex system and thus traditional quality mechanisms are not suitable for project management. In parallel, there are also certain limitations of the existing risk management methods in the project method. Furthermore, the risks are identified based on historical data, which could be misleading at times because the current business scenario is so dynamic that historical data continuously lose their value.

Therefore, traditional risk management approaches are not suitable for the current business scenario. This section presents the research methodology.

The research methodology is the approach through which the research objectives are met systematically. In this context, the author selected a primary qualitative research method. Different tools could be used to collect the primary qualitative data. The main tools that could be used to collect primary qualitative data include observation, Delphi approach, interviews, and focus groups.

Each of these methods has its own merits and demerits. The observation method is mainly used when the author intends to collect data by personal involvement. The Delphi approach is used when the view has to be taken from the industry experts. The focus group is used when the data is to be collected from a group of participants and different views are needed. The interview is conducted when the data is collected from one individual at a time. In this context, the author of the study used interviews to collect the data from the respondents.

The interview method was adopted because interview method is very flexible. Secondly, this method has a better response rate as compared to other methods. The analysis of the interview is very simple too which makes it an ideal method of data collection. The purpose of the research is to ask the interviewees if their companies integrate ISO and TQM in their project management and what the outcome is.

The interviewers participated in the research voluntarily and they were aware of their rights and obligations during this research.

As very few companies in the UAE have adopted TQM and risk management, the author only selected three companies for data collection. The three organizations chosen for this research achieved the ISO certificate that ensures the quality of the services, procedures, and processes of the organizations. These companies were selected because they had attained ISO recently.

All these three companies had a large number of employees employed. It was not possible to conduct data from each of the company. Therefore, the researcher had to select the number of respondents very carefully. The author of the study had also limitations in terms of time and budget. Therefore, the researcher only selected one employee per company. Hence, one employee was selected from each company i. The interviewee was from risk management department at a managerial position.

Each interview was conducted online due to Covid 19 and social distancing protocols. The interview duration was 1 hour each. The main interview questions asked from the respondents included the following:. This section presents the findings and analysis of the study. The following is the analysis of the interviews conducted from the three organizations. The company believes that TQM and risk management complement each other.

Various examples of risk were given by the company. The interviewee said that one of the most challenging risks that DEWA has faced in the past and is still facing is cyber risk, which is a risk related to financial disruption because of failures in an IT system. Dubai Electricity and Water Authority deal with cyber risk by constant observance, accelerating their modification strategy through multidisciplinary teams. They are continually doing the three steps of risk assessments listed in the ISO standards, which are risk identification, risk analysis, and risk evaluation.

The Roads and Transport Authority also implemented the ISO in and has received many rewards in risk assessment competition. The main type of risk faced by the company is system failure. The system failure is an IT risk which involves loss of the important data of the company due to any reason.

IT risk is a very important kind of risk in the customer service industry. The customers rely on the company and any failure of the system may create problems for the company. Desktops, servers, software, applications, communication networks like Email, databases and many others are the backbone of the company. These systems support the company in the day to day operations. Different form of data is stored on these systems including but not limited to inventory, customer details, sales and other sorts of data.

The different risk to the IT system includes virus attack in which the company firewall is not strong enough which eventually leads to system collapse. Secondly, due to power fluctuation, the system may collapse and all important data may be lost. Local area network of hardware failure could also lead to system failure. Poorly trained IT staff is another risk to the system which could lead to failure.

Other risks include poor back up and poor IT management practices. Any breach in the system could lead to loss of important data which eventually leads to poor customer satisfaction. The company said that before implementing ISO , the company used to consider risk as operational level issues.

They used historical data to anticipate the risk, which eventually hampered their performance in the short and long term. This means that the risk management system with the use of ISO is shifted toward the strategic and corporative levels, adding to the existing regular operational level. This innovative switch allows risk assessments to affect the TQM of transportation.

The Roads and Transport Authority risk assessment strategy was related to TQM of the company, showing a strong vision from the organization leader. The company has used ISO to improve their operational performance overall. Their risk management strategy has been improved too. The company recently implemented the framework of risk management ISO and is aiming to have a TQM effect by taking this step.