TOTAL QUALITY MANAGEMENT: TQM

Origins, Evolution & key elements

What is Quality?
Quality is fitness for use
(Joseph Juran) Quality is conformance to requirements (Philip B. Crosby) Quality of a product or services is its ability to satisfy the needs and expectations of the customer

Evolution of Quality Management

Inspection Quality Control
Salvage, sorting, grading, blending, corrective actions, identify sources of non-conformance

Develop quality manual, process performance data, self-inspection, product testing, basic quality planning, use of basic statistics, paperwork control.
Quality systems development, advanced quality planning, comprehensive quality manuals, use of quality costs, involvement of non-production operations, failure mode and effects analysis, SPC. Policy deployment, involve supplier & customers, involve all operations, process management, performance measurement, teamwork, employee involvement.

Quality Assurance
TQM

Demings view of a production as a system

Receipt & test of materials Suppliers, materials & equipment Design & redesign Consumer Research

Production, assembly, inspection

Distribution

Consumers

Test of processes, machines, methods, cost

Demings Chain Reaction

Improve Quality

Provide jobs and more jobs Stay in business

Cost decreases because of less rework, fewer mistakes, fewer delays, snags, better use of machine time and materials

Productivity improves
Capture the market with better quality and lower price

The Deming Cycle or PDCA Cycle

PLAN

Plan a change to the process. Predict the effect this change will have and plan how the effects will be measured

ACT
Adopt the change as a permanent modification to the process, or abandon it.

DO
Implement the change on a small scale and measure the effects

CHECK
Study the results to learn what effect the change had, if any.

W. Edwards Demings 14 Points 1) Create constancy of purpose towards improvement

of product and services.

2) Adopt the new philosophy. We can no longer live

with commonly accepted levels of delays, mistakes, defective workmanship.

3) Cease dependence on mass inspection. Require,

instead, statistical evidence that quality is built in.

4) End the practice of awarding business on the basis of

price tag.

W. Edwards Demings 14 Points

5) Find problems. It is managements job to work
continually on the system.

6) Institute modern methods of training on the job.

7) Institute modern methods of supervision of

production workers. The responsibility of foremen must be changed from numbers to quality.

8) Drive out fear that everyone may work effectively for

the company.

W. Edwards Demings 14 Points

9) Break down barriers between departments. 10) Eliminate numerical goals, posters and slogans for
the workforce asking for new levels of productivity without providing methods.

11) Eliminate work standards that prescribe numerical

quotas.

12) Remove barriers that stand between the hourly

worker and his right to pride of workmanship.

W. Edwards Demings 14 Points

13) Institute a vigorous programme of education and
retraining.

14) Create a structure in top management that will push

everyday on the above 13 points.

Demings System of Profound Knowledge

Knowledge about variation

Appreciation for system

Theory about knowledge

Knowledge of psychology

Joseph M. Juran and the Cost Of Quality

2 types of costs: Unavoidable Costs: preventing defects (inspection, sampling, sorting, QC) Avoidable Costs: defects and product failures (scrapped materials, labour for re-work, complaint processing, losses from unhappy customers

Gold in the Mine

Joseph M. Juran and the Cost Of Quality

Costs

Total Costs

Unavoidable costs

Avoidable costs 100% defective Point of Enough quality

What is TQM?
Constant drive for continuous improvement and learning.

Management by Fact

Concern for employee involvement and development

Result Focus

Passion to deliver customer value / excellence

Organisation response ability

Partnership perspective (internal / external)

Actions not just words (implementation)

Process Management

LEARNING AND TQM

Learning Process Improvement Quality Improvement

Customer Satisfaction

Shareholder Satisfaction

Employee Satisfaction

BASIC PRINCIPLES OF TQM

Approach Scope Scale Philosophy Standard Control Theme Management Led Company Wide Everyone is responsible for Quality Prevention not Detection Right First Time Cost of Quality On going Improvement

FOUR KEY PRINCIPLES

Measure quality so you can affect it Focus on a moving customer Involve every employee Think long term - Act short term

THE CASE FOR QUALITY

1 Success of competitors who take quality seriously 2 Rising expectations of customers 3 Quality differentiates companies from the competition 4 Narrowing of supplier bases by quality conscious companies
.

THE CASE FOR QUALITY

5 Growing evidence that growth in market share comes from sustained quality.

6 Cost advantages
7 High cost of catastrophic failure 8 Inspection poor substitute for right first time

SEVEN DEADLY SINS OF TQM

Flight to nowhere

One size fits all

Substituting TQM for leadership Inside - Out indicators Mandatory religion Quality kept as a separate activity Teaching to the test Booz-Allen & Hamilton

IS QUALITY A SOUND INVESTMENT?

Year 1988 1988 1989 1990 1990 1990 1991 1992 1992 1992 1993 1994 Company Stock Growth (Oct 94) Motorola 373.0% Westinghouse (CNFD) - 49.6% Xerox (BPS) 75.9% General Motors 1.6% Federal Express 10.6% IBM (IBM Rochester) - 34.9% Selectron 526.9% AT&T (UCS) 32.2% AT&T (TSBU) 32.2% Texas Instruments (DS&E) 106.8% Zyta 8.4% Eastman Chemical 18.5% 23016 (91.8% growth) 15911 (32.6% growth)

Total Stock Value Standard & Poor 500 Stock value

Source: US Dept. of Commerce Study 1995

Q
Project Quality Assurance Project Quality Plan PQP

Project Quality Plan

Definition
The project quality plan is a documented description of the project management system and must be approved by the AEM, in part to demonstrate his commitment to quality but primarily it is the means by which technical and administrative authorities are delegated through out the project. All projects shall have quality plan. Project engineer shall develop and update the PQP.
.

Relationships between project quality plans

PQP ADCO PQP Designer

PQP construction contractor

Suppliers quality plans

Preparation of a project quality plan

Confirm project objectives
Plan the project allocate resources
Identify critical activities Define standards and controls Audits
AEM/PE/HE

AEM/PE HE/HC/PE DE/CE/PE QA/SCE/PE PE

Close-out

CONTENTS OF TYPICAL PROJECT QUALITY PLAN

1. COVER SHEET + REVISION CONTROL 1.1 Document purpose 1.2 Policy statement 2.INTRODUCTION 2.1 2.2 2.3 2.4 Background Project Scope Project Objectives & Constraints QA Standards (Consider putting in Document purpose)

CONTENTS OF TYPICAL PROJECT QUALITY PLAN

3. EXECUTION STRATEGY 3.1 3.2 3.3 3.4 3.5 3.6 Project Management risks. Critical Activities. Control Strategy. Cost & Schedule. HSE Plan. Commissioning & Hand-over.

CONTENTS OF TYPICAL PROJECT QUALITY PLAN

4.ORGANISATION, RESPONSIBILITES & INTERFACES 4.1 Table with names 4.2 External interfaces 4.3 Definition of specific roles and responsibilities.

5. QUALITY REFERENCE SYSTEM 5.1 Controlling Documents 5.2 Applicable Procedures (Check list based)
6. INTEGRATION OF CONTRACTORS & SUPPLIERS 6.1 Define Contractor interfaces. 6.2 Contractor + Supplier Quality System.

CONTENTS OF TYPICAL PROJECT QUALITY PLAN

7.AUDITS & REVIEWS This section should include schedule for: * PHSER * HAZOP * TECHNICAL REVIEWS * LESSONS LEARNT REVIEW. 8. QUALITY IMPROVEMENT 8.1 LESSONS LEARNT 8.2 CLOSE-OUT REPORT

* HSEIA * VE * QA AUDITS

CONTENTS OF TYPICAL PROJECT QUALITY PLAN

PREPARATION & APPROVALS:
PREPARE: ENDORSE: APPROVE: Timing The nominated PE, PM or Team leader shall develop the PQP immediately after receiving the PID document and approval of the project in the Business Plan. PE, PM and / or Team Leaders AEM EPM

Quality is a Journey, not a Destination