Quality Management

TQM, Six Sigma, ISO

 Quality
• Quality is concerned with quality assurance
and process improvement in manufacturing
and service sectors (including the public
sector).
• the use of sound measurement methods,
statistical analysis and process improvement
techniques to significantly improve quality on
the shop floor and in manufacturing and
service (etc) planning.
 Quality management
• Quality management is concerned with
compliance with quality standards,
certification and compliance
 Total Quality Management -
TQM
• popular "quality management" concept.
• assuring product or service quality.
• business philosophy - a way of doing business.
• describes ways to managing people and business
processes to ensure complete customer
satisfaction at every stage.
• often associated with the phrase - "doing the
right things right, first time".
 Main features of TQM:
• views “quality” entirely from the point of view
of “the customer”.
• All businesses have many types of customer.
• customer can be someone "internal" to the
business (e.g. a production employee working at
the end of the production line is the "customer"
of the employees involved earlier in the
production process).
 Customers...
• customer can also be “external to the business”.
• ‘normal’ customers.
• When you fly with an airline you are their customer.
• When Tesco's buys products from food
manufacturers, it is a customer.
• TQM recognises that all businesses require
"processes" that enable customer requirements to be
met.
 TQM focus...
• TQM focuses on the ways in which these
processes can be managed - with two key
objectives:
• 1 100% customer satisfaction
• 2 Zero defects
 Importance of Customer -
Supplier Relationships - ‘Quality
Chains’
• TQM focuses on importance of relationship between
customers (internal and external) and supplier.
• These are "quality chains” which can be broken at
any point by one person or one piece of equipment not
meeting the requirements of the customer.
• Failure to meet requirements in any part of quality
chain multiplies, and failure in one part of system
creates problems elsewhere, leading to yet more failure
and problems, and so the situation is exacerbated.
 Customers
• ability to meet customers’ (external and internal)
requirements is vital.
• To achieve quality throughout organisation, every person in
quality chain needs training to ask following questions about
every customer-supplier chain:
• Customers
• Who are my customers?
• What are their real needs and expectations?
• How can I measure my ability to meet their needs and
expectations?
 Questions...
• Do I have the capability to meet their needs and
expectations? (If not, what must I do to improve
this capability?)
• Do I continually meet their needs and
expectations? (If not, what prevents this from
happening when the capability exists?)
• How do I monitor changes in their needs and
expectations?
 Suppliers:
• Who are my internal suppliers?
• What are my true needs and expectations?
• How do I communicate my needs and
expectations to my suppliers?
• Do my suppliers have the capability to
measure and meet these needs and
expectations?
• How do I inform them of changes in my
needs and expectations?
 Main Principles of TQM
• The main principles underlying TQM are summarised
below:
• Prevention Prevention is better than cure. In the
long run, it is cheaper to stop products defects than
trying to find them
• Zero defects The ultimate aim is no (zero) defects -
or exceptionally low defect levels if a product or service
is complicated
• Getting things right first time Better not to
produce at all than produce something defective
 Quality/CI/Involvement
• Quality involves everyone Quality not just concern of
production or operations department - involves everyone,
including marketing, finance and human resources
• Continuous improvement Businesses always looking
for ways to improve processes to help quality
• Employee involvement Those in production and
operations have vital role to play in spotting improvement
opportunities for quality and identifying quality problems
 Introducing TQM into a
Business
• TQM not an easy concept to introduce into
businesses - particularly those not traditionally
concerned with understanding customer needs
and business processes.
• In fact - many attempts to introduce TQM fail!
• One of reasons for challenge of introducing
TQM is that it has significant implications for
the whole business.
 Involvement, but...
• For example, it requires that management give
employees a say in the production processes that
they are involved in.
• In a culture of continuous improvement, workforce
views are invaluable.
• The problem is - many businesses have barriers to
involvement.
• For example, middle managers may feel that their
authority is being challenged.
 Empowerment
• So "empowerment" is a crucial part of TQM.
• The key to success is to identify the management
culture before attempting to install TQM and to
take steps to change to the new required
management style.
• Since culture is not the first thing that managers
think about, this step has often been missed or
ignored with resultant failure of a TQM strategy.
 TQM focus...
• TQM also focuses the business on the activities
of the business that are closest to the customer -
e.g. the production department, the employees
facing the customer.
• This can cause resentment amongst departments
that previously considered themselves ‘above’
the shop floor.
 ASQ...
• The American Society for Quality (ASQ) is an
association for quality professionals.
• The organization focuses on customer satisfaction,
root cause analysis and continual improvement
• The organization teaches the importance of stable
top management support to drive continual
improvement
• They are pushing Six Sigma and ISO 9000
 ASQ...
• ASQ membership steeply rose from 1984 to
1995.
• during the Total Quality Management (TQM)
movement.
• Times have changed, and the TQM movement
probably does not fit anymore,
• but the ideas generated by the quality visionaries
are timeless
 ASQ focus...
• ASQ has a manufacturing focus
• It has developed programs to deploy quality in
the healthcare industry with great success.
• Other areas such as engineering, project
management, marketing and customer support
offer opportunities for ASQ
 ISO 9000
• ISO 9000 is the international standard for quality
management,
• It is becoming a worldwide standard.
• December 2001: there were more than 510,616
businesses certified in 161 countries.
• The 10 industrialized nations accounted for
nearly 62% of that total
 ISO 9000 certification
• Certification/registration takes place when an
independent and competent body certifies that a
product, process, service or system conforms to
specific requirements.
• With ISO 9000, registration and certification are
used interchangeably, and bodies that issue
conformity certificates are referred to as registrars
in the USA, and elsewhere as certification or
registration bodies.
 ISO 9000 registration
• Since the registrar is independent of both the
organization seeking certification (the first
party) and its customers (second parties),
• the registration process is known as third-party
assessment,
• and its value is based on the proven competence
of the registrar.
 Known brands...
• multinational organizations normally prefer known
brand names such as Bureau Veritas (France), Lloyd's
Register (UK), SGS (Switzerland), T¿ (Germany) or
American National Standards Institute (United States)
• smaller companies may prefer local registrar, able to
provide a more personalized service.
• organizations shopping for a registrar should consider
the following factors:
 Factors in choosing a
registrar
• Price. Some registrars base their rates on the
organization size while others may charge a
daily rate.
• Location. Registrar located close to the
organization preferred to a distant registrar.
• Compatibility. Is registrar familiar with nature
of organization's business and comfortable with
its culture?
 Prior to Audit

• prior to an on-site audit:

• a review of the company's quality manual to see whether
it meets requirements.
• Organisations need to ensure any issues raised by the
auditor are addressed by either changing procedures or
documents
• Preassessment. Organisation pays for practice audit.
Registrar can be directed to areas that the company
wants covered to address potential weak points.
 European and US
documentation
• European documentation procedures tend to be
more elaborate, so organisations spend more, on
average, on ISO 9000 implementation than
American companies.
• Approx 3 times more…?
• For many years, the Japanese evinced little interest
in ISO 9000 registration, preferring the total
quality management (TQM) approach with a focus
on continuous improvement.
 Revised ISO 9000
• ISO's revised ISO 9000: 2000 incorporated TQM
principles and is changing the thinking process.
• Intended to be applicable to all organizations,
regardless of type, size or product category.
• Is a move from conformance thinking to performance
thinking.
• Old standard: presence of 20 elements was evaluated;
now it must be determined whether the processes are
effective.
 ISO and Deming
• It has been recommended that companies use Dr.
W. Edwards Deming's built-in "plan-do-check-
act" cycle in the procedure
• to establish a plan and then take corrective
measures when quality results such as warranty
costs or defects exceed set objectives.
• Thus, the standard is moving organizations
toward Japanese-style continuous improvement.
 Measuring customer
satisfaction
• Another requirement is measuring customer
satisfaction.
• Most US companies developing questionnaires to
assess whether customers are satisfied with
products and services.
• European registrars are wary of paperwork created
by questionnaires, and some prefer instead to
develop a set of indices to measure customer
satisfaction.
 Objective evidence
• "I just need objective evidence that customers
have processes for assessing customer
satisfaction, even if it means that they just record
telephone calls made to customers,”
Cwiekowski, Great Western Registrar LLC (Phoenix)
• 90% of registered companies indicated they would
make the transition to ISO 9001: 2000 before the
December 2003 deadline.
 Malcolm Baldrige National
Quality Award
• the Baldrige Program has produced a widespread
positive impact on the quality performance of
U.S. companies.
• The quality literature-- for example, J.M. Juran --
feel that the criteria used for judging the Baldrige
competition have become the leading model
defining the concepts of continuous improvement
and total quality management (TQM).
 Baldrige criteria
• the Baldrige criteria are widely used by
companies nationwide to conduct self-audits,
and to develop and guide their own TQM
policies,
• whether they enter the competition or not.
• Been nearly two million requests for Baldrige
application forms and criteria.
Successful companies’ tactics
• With a focused, rapid deployment of a Six
Sigma plan, a major (US) financial services
company was able to save $75 million in
productivity benefits, reduce customer
complaints by 29% and increase stock value by
52%.
 Leading companies...
• Leading companies establish internal quality
awards to promote the benchmarking function.
• For example, one company honours an
employee annually with its Quality Award.
• Recipients receive a celebration within their
organization.
 Top companies
• Top companies divide benchmarking data according to
audience.
• For example, a leading telecom equipment
manufacturer separates benchmarking information into
administrative and technical categories.
• The administrative information is then posted on
internal electronic message boards, whereas the
technical information is more specifically targeted to
key stakeholders.
 The quality journey...
• The great leaders of the quality revolution of the
1980s focused on improving the competitiveness
of American organizations and did all they could
to spread the word.
• Many companies start a quality journey by
latching onto a quality trend.
• Such as TQM…
 Quality trends, circles, ISO, ...
• Quality trends: part of US business culture.
• But...
• Quality circles, total quality management (TQM),
• ISO, QS, Baldrige and now Six Sigma,
• have all had their day as the quality solution.
• Employees are tired of this year’s solution.
• Quality programs constantly change.
 Difficult...
• Difficult to develop quality system that can
show significant results—and without significant
results, management loses support from
employees.
• This is the case with Six Sigma, as with all
previous repackaged quality programs
 Quality-improvement
methods and techniques
• There are tried-and-true quality-improvement
methods and techniques
• Companies need to make them a part of the
company’s culture and stay focused on the tasks
that lead to a healthier business, not the
certificate on the wall or the colour of the belt.
 Taguchi: the Loss Function.
• Quality is the gap between how good something
is and how good it possibly could be,
• and we should continually focus on narrowing
that gap.
• the state of the quality profession: is there a gap
between what quality professionals are
contributing and what they could be contributing
to their organizations ?
 Quality gap...
• focus of quality movement shifted away from the
great quality visionaries.
• in their place is inappropriate level of attention to
things such as ISO
• -- marketing driven, time consuming standard doing
poor job assuring that companies meet a relatively
low quality hurdle.
• Has quality profession evolved from being change
agents to compliance officers?
 Any Questions
Taken from:
‘Quality Initiatives Increase Savings’, Quality Magazine:
http://www.qualitymag.com/CDA/ArticleInformation/news/news_item/0,6407,119529,00.html

‘About Quality’, Quality Magazine: http://www.qualitymag.com/FILES/HTML/QTY_about_us/1,6446,,00.html

‘Probing the Limits: Could Deming Have Been Wrong?’ , Quality Magazine :
http://www.qualitymag.com/qty/cda/articleinformation/features/bnp__features__item/0,,102404,00+en-uss_01dbc.html

‘Six Sigma? No Thanks’, Quality Magazine::

http://www.qualitymag.com/qty/cda/articleinformation/features/bnp__features__item/0,,99484,00+en-uss_01dbc.html

‘Probing the Limits: Wake Up ASQ!’, Quality Magazine::

http://www.qualitymag.com/qty/cda/articleinformation/features/bnp__features__item/0,,105764,00+en-uss_01dbc.html

‘ISO 9000 for a Small Planet’,

http://www.qualitymag.com/qty/cda/articleinformation/features/bnp__features__item/0,,98551,00+en-uss_01dbc.html

‘No Respect’, Quality Magazine :

http://www.qualitymag.com/qty/cda/articleinformation/features/bnp__features__item/0,,99000,00+en-uss_01dbc.html

‘Still Passionate for Quality?’, Quality Magazine :

http://www.qualitymag.com/qty/cda/articleinformation/features/bnp__features__item/0,,98570,00+en-uss_01dbc.html

tutur2u: total quality management -tqm http://www.tutor2u.net/business/production/quality_tqm.htm