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 Salvage, sorting, grading, blending, corrective

actions, identify sources of non-conformance
Develop quality manual, process performance
Quality data, self-inspection, product testing, basic
Control quality planning, use of basic statistics,
paperwork control.
Quality systems development, advanced quality
Quality
planning, comprehensive quality manuals, use of
Assurance quality costs, involvement of non-production
operations, failure mode and effects analysis, SPC.

TQM Policy deployment, involve supplier & customers,

involve all operations, process management,
performance measurement, teamwork, employee
involvement.
 Deming’s view of a production as a system

Receipt & test of Design & Consumer

materials redesign Research

Suppliers, Production,
materials & assembly, Distribution Consumers
equipment inspection

Test of processes,
machines, methods, cost
 Deming’s Chain Reaction

Improve Quality
Provide jobs and Cost decreases because
more jobs of less rework, fewer
mistakes, fewer delays,
snags, better use of
Stay in business 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 DO
Adopt the change as a Implement the change on
permanent modification a small scale and measure
to the process, or the effects
abandon it.
CHECK
Study the results to
learn what effect the
change had, if any.
 W. Edwards Deming’s 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 Deming’s 14 Points

5) Find problems. It is management’s 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 Deming’s 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 Deming’s 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.
Deming’s System of Profound Knowledge

Appreciation for Knowledge

system about variation

Theory about Knowledge of

knowledge 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
Unavoidable
Costs
costs

Avoidable
costs

100% defective Point of “Enough

quality”
 What is TQM?
Concern for
Constant drive Management employee
for continuous by Fact involvement and
improvement and development
learning.
Organisation
Passion to deliver response
Result Focus customer value / ability
excellence

Actions not just Partnership

perspective
words (internal /
Process
(implementation) external)
Management
 LEARNING AND TQM

Learning

Process Improvement

Quality Improvement

Customer Shareholder Employee

Satisfaction Satisfaction Satisfaction
 BASIC PRINCIPLES OF TQM

Approach Management Led

Scope Company Wide

Scale Everyone is responsible for Quality

Philosophy Prevention not Detection

Standard Right First Time

Control Cost of Quality

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

Total Stock Value £23016 (91.8% growth)

Standard & Poor 500 Stock value £15911 (32.6% growth)
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 Suppliers
construction quality plans
contractor
Preparation of a project quality plan

AEM/PE/HE
Confirm project objectives

Plan the project allocate resources AEM/PE

Identify critical activities HE/HC/PE

Define standards and controls DE/CE/PE

Audits 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 Background
2.2 Project Scope
2.3 Project Objectives & Constraints
2.4 QA Standards (Consider putting in Document purpose)
CONTENTS OF TYPICAL PROJECT QUALITY PLAN

3. EXECUTION STRATEGY

3.1 Project Management risks.

3.2 Critical Activities.
3.3 Control Strategy.
3.4 Cost & Schedule.
3.5 HSE Plan.
3.6 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 * HSEIA
* HAZOP * VE
* TECHNICAL REVIEWS * QA AUDITS
* LESSONS LEARNT REVIEW.

8. QUALITY IMPROVEMENT

8.1 LESSONS LEARNT

8.2 CLOSE-OUT REPORT
CONTENTS OF TYPICAL PROJECT QUALITY PLAN

PREPARATION & APPROVALS:

PREPARE: PE, PM and / or Team Leaders

ENDORSE: AEM
APPROVE: EPM

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.
Quality is a Journey,
not a Destination