University of Santo Tomas Faculty of Engineering Industrial Engineering Department IE 412 Industrial Quality Control

Reported by: Group # 9 Kurata, Yoshiki Agpasa, Eunice Bianca 4IE-B Group # 10 Chua, Mark Genesis Narito, Adrian Noel

Quality is everyones responsibility

-Edward Deming

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Companies that use TQM

What is TQM?
o

Refers to an integrated approach that seeks to improve quality and performance which will meet or exceed customer expectations and to develop continuous improvement. Focuses on encouraging a continuous flow of incremental improvements from the bottom of the organizations hierarchy. It is not a complete solution formula as viewed by many formulas cannot solve managerial problems, but a lasting commitment to the process of continuous improvement.

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TQM is an operating philosophy and management tool that focuses on continuous process improvement. Everything is a scientific method. A use of process. Do it right the first time thru universal participation. Teams as well as individuals that results in customer satisfaction. Internal and External customers ultimately cos performance.

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Continuous Process Improvement Cycle

1. Identify the opportunity 7. Plan for the future Act 6. Standardize the solution Check Plan

2. Analyze the process

3. Develop the optimal Solution

Do

5. Study the results

4. Implement

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In Japanese, TQM comprises four process steps, namely:

Kaizen Atarimae Hinshitsu Kansei Miryokuteki Hinshitsu -TQM requires that the company maintain this quality standard in all aspects of its business. This requires ensuring that things are done right the first time and that defects and waste are eliminated from operations.

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TQM Six Basic Concepts

1. 2. 3.

4.
5. 6.

A committed and involved management to provide long-term-top-to-bottom organizational support. An unwavering focus on the customer, both internally and externally. Effective involvement of the business and production process. Continuous improvement of the business and production process. Treating suppliers as partners. Establish performance measures for the process.

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7 Important Principles of Total Quality Management

1. Quality can and must be managed. 2. Processes, not people, are the problem. 3. Dont treat symptoms, look for the cure. 4. Every employee is responsible for quality. 5. Quality must be measurable. 6. Quality improvements must be continuous. 7. Quality is a long-term investment.
Introduction Principles Advantages Comparison Framework and Steps Activities Barriers Companies that use TQM

Principles of TQM
Criteria:
1.
2. 3. 4.

5.
6. 7. 8.

Leadership System Approach to Management Customer Driven Organization Factual Approach in Decision Making Involvement of People Process Approach Continual Improvement Mutually Beneficial Customer-Supplier Relationships

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5 Main Advantages of TQM

1.

2. 3.

4.

5.

Encourages a strategic approach to management at the operational level through involving multiple departments in cross-functional improvements and systemic innovation processes; Provides high return on investment through improving efficiency; Works equally well for service and manufacturing sectors; Allows organizations to take advantage of developments that enable managing operations as cross-functional processes; and Fits an orientation toward inter organizational collaboration and strategic alliances through establishing a culture of collaboration among different departments within organization.

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TQM and Continuous Improvement Firm

Two different perspectives of the same phenomenon
o

The TQM Perspective the beliefs and practices required of management to bring about and perpetuate a continuous improvement firm (CIF). The CIF Perspective the organization itself in all its integrity, full-blown, operating and practicing the Total Quality Management (TQM) approaches.

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TQM and JIT

TQM ensures that the improvements are fundamental and not superficial
JIT seeks improvement through reduction of waste.

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Comparison of OLD and TQM Cultures

Element By Definition Priority Time frame Emphasis Old Product oriented After cost Short Term Detection TQM Customer oriented On par to cost Long Term Prevention

Errors
Responsibility Problem solving Procurement Managers Role

Operations
Quality Control Managers Price Plan, assign Control

Systems
Everyone Teams Life-cycle costs Delegate, coach, facilitate

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TQM Framework
Gurus Tools and Techniques

Principles and Practices

Product or Service Realization

CUSTOMERS

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Five Steps in TQM

Determine what customers want Develop products and services Develop production system Monitor the system Include customers and suppliers

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TQM Activities
o

o o o o o
o

ISO, OHSAS, SA systems Quality Circles Professional Circles 5S Employee Suggestion Scheme Business improvement through Benchmarking, Six Sigma concepts Balanced Score Card Kaizen

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Barriers in Successful TQM

Lack of management commitment Inability to change org. culture Improper planning Lack of continuous training and Education Lack of data & results or access to data or ineffective measurement Inadequate attention to customer (I&E) Inadequate use of empowerment & teamwork Incompatible org structure , individualistic

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Introduction

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FORD Motor Company

o

is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. Ford is the second largest automaker in the U.S. and the fifth-largest in the world based on annual vehicle sales in 2010. At the end of 2010, Ford was the fifth largest automaker in Europe. Ford is the eighth-ranked overall American-based company in the 2010 Fortune 500 list, based on global revenues in 2009 of $118.3 billion.
Principles Advantages Comparison Framework and Steps Activities Barriers Companies that use TQM

Introduction

TQM techniques that Ford used:

Six Sigma Quality Operating System or (QOS) developed their own quality process or 5S. The DMAIC process, or define, measure, analyze, improve, and control has built an overall strategy for consistency in their teams,

Framework and Steps Companies that use TQM

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Federal Express (FedEx)

FedEx created the overnight air express business in 1973. Ten years later, it was the first U.S. company to top $1 billion in revenues in its first decade. The company is the worlds largest express transportation company: more than 110,000 employees moved more than 2million items to over 200 countries each business day. In 1990, FedEx became the first service company to win the Baldrige Award.

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Leading the Transition

Commit to quality Know you Companys Systems and Values Participate in your Companys Quality Processes Integrate Quality in the Companys Management model

Companies that use TQM

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XEROX

The Xerox Corporation started its thrive towards TQM in the 1970s with the invention of PARC, Palo Alto Research Center.

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XEROX

Xerox has established a program called Leadership Through Quality (LTQ) and a Quality Training Task Force for its companys leadership teams. "Today, more than 100,000 Xerox employees worldwide have been trained in this process, which stresses continuous improvement and defines quality precisely as meeting customer requirements" (Evans-Correia, 1997, 135).
Principles Advantages Comparison Framework and Steps Activities Barriers Companies that use TQM

Introduction

The XEROX Corporation focuses on:

o Benchmarking o a reduced supplier base o and leadership teams

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Toyota Corporation

a multinational automaker headquartered in Toyota, Aichi, Japan. In 2010, Toyota Motor Corporation employed 317,734 people worldwide . TMC is the world's largest automobile manufacturer by sales and production.

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Toyota Corporation uses:

5S Lean manufacturing JIT Kaizen Six Sigma

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References
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o
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Besterfield, D., et.al. Total Quality Management, Third Edition. Prentice Hall. 2003 Cortada, J. & Woods, J. The Quality Yearbook, 1996 Edition. McGraw Hill. 1996 Bounds, G., et.al. Beyond Total Quality Management. McGraw Hill. 1994 George, S. & Weimerskirch, A. Total Quality Management, Second Edition. John Wiley & Sons Inc. 1998 Lawler, E., Morhman, S., and Ledford, G. Jr. Employeee Involvement and Total Quality Management. Jossey-Bass Publishers. 1992 Gitlow, H. & Gitlow, S. Total Quality Management in Action. Prentice Hall. 1994
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References
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http://www.brighthub.com/office/projectmanagement/articles/72279.aspx http://en.wikipedia.org/wiki/Ford http://en.wikipedia.org/wiki/Toyota http://www.stfrancis.edu/content/ba/ghkickul/stuwebs/btopics /works/tqmxerox.htm

Introduction

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Advantages

Comparison

Framework and Steps

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Companies that use TQM