TOTAL QUALITY MANAGEMENT: TQM

Origins, Evolution & key elements

What is Quality?

Quality is ³fitness for use´ (Joseph Juran) Quality is ³conformance 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 Quality Assurance TQM
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.

cost . machines. inspection Distribution Consumers Test of processes. assembly.Deming¶s view of a production as a system Receipt & test of materials Suppliers. methods. materials & equipment Design & redesign Consumer Research Production.

Deming¶s Chain Reaction Improve Quality Cost decreases because Provide jobs and of less rework. fewer more jobs Stay in business mistakes. better use of machine time and materials Productivity improves Capture the market with better quality and lower price . fewer delays. snags.

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. DO Implement the change on a small scale and measure the effects CHECK Study the results to learn what effect the change had.The Deming Cycle or PDCA Cycle PLAN Plan a change to the process. . if any. or abandon it.

4) End the practice of awarding business on the basis of price tag. Edwards Deming·s 14 Points 1) Create constancy of purpose towards improvement of product and services. Require. defective workmanship. mistakes. 2) Adopt the new philosophy. We can no longer live with commonly accepted levels of delays. 3) Cease dependence on mass inspection. . instead. statistical evidence that quality is built in.W.

W. The responsibility of foremen must be changed from numbers to quality. 7) Institute modern methods of supervision of production workers. It is management¶s job to work continually on the system. Edwards Deming·s 14 Points 5) Find problems. 6) Institute modern methods of training on the job. . 8) Drive out fear that everyone may work effectively for the company.

10) Eliminate numerical goals. 12) Remove barriers that stand between the hourly worker and his right to pride of workmanship. 11) Eliminate work standards that prescribe numerical quotas.W. Edwards Deming·s 14 Points 9) Break down barriers between departments. posters and slogans for the workforce asking for new levels of productivity without providing methods. .

W. 14) Create a structure in top management that will push everyday on the above 13 points. . Edwards Deming·s 14 Points 13) Institute a vigorous programme of education and retraining.

Deming¶s System of Profound Knowledge Knowledge about variation Appreciation for system Theory about knowledge Knowledge of psychology .

labour for re-work. complaint processing.Joseph M. sampling. losses from unhappy customers ³Gold in the Mine´ . sorting. QC) Avoidable Costs: defects and product failures (scrapped materials. Juran and the Cost Of Quality 2 types of costs: Unavoidable Costs: preventing defects (inspection.

Juran and the Cost Of Quality Costs Total Costs Unavoidable costs Avoidable costs 100% defective Point of ³Enough quality´ .Joseph M.

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 .

Act short term .FOUR KEY PRINCIPLES ‡Measure quality so you can affect it ‡Focus on a moving customer ‡Involve every employee ‡Think long 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 BoozBooz-Allen & Hamilton .

of Commerce Study 1995 .6% IBM (IBM Rochester) .0% Westinghouse (CNFD) .8% growth) £15911 (32.6% growth) Total Stock Value Standard & Poor 500 Stock value Source: US Dept.5% £23016 (91.6% Xerox (BPS) 75.49.6% Federal Express 10.9% General Motors 1.9% Selectron 526.8% Zyta 8.9% AT&T (UCS) 32.4% Eastman Chemical 18.34.IS QUALITY A SOUND INVESTMENT? Year 1988 1988 1989 1990 1990 1990 1991 1992 1992 1992 1993 1994 Company Stock Growth (Oct 94) Motorola 373.2% AT&T (TSBU) 32.2% Texas Instruments (DS&E) 106.

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. ‡ Project engineer shall develop and update the PQP. 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.

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 Close-out AEM/PE/HE AEM/PE HE/HC/PE DE/CE/PE QA/SCE/PE PE .

1 Document purpose 1.4 Background Project Scope Project Objectives & Constraints QA Standards (Consider putting in Document purpose) .2 2.CONTENTS OF TYPICAL PROJECT QUALITY PLAN 1.3 2.INTRODUCTION 2. COVER SHEET + REVISION CONTROL 1.2 Policy statement 2.1 2.

2 3. HSE Plan. Commissioning & Hand-over.3 3. Control Strategy.1 3. Cost & Schedule.6 Project Management risks. Critical Activities.5 3.4 3.CONTENTS OF TYPICAL PROJECT QUALITY PLAN 3. EXECUTION STRATEGY 3. .

.1 Define Contractor interfaces.CONTENTS OF TYPICAL PROJECT QUALITY PLAN 4.2 Applicable Procedures (Check list based) 6.1 Controlling Documents 5.1 Table with names 4. QUALITY REFERENCE SYSTEM 5.2 External interfaces 4. 5.3 Definition of specific roles and responsibilities. RESPONSIBILITES & INTERFACES 4.2 Contractor + Supplier Quality System.ORGANISATION. 6. INTEGRATION OF CONTRACTORS & SUPPLIERS 6.

QUALITY IMPROVEMENT 8.1 LESSONS LEARNT 8.CONTENTS OF TYPICAL PROJECT QUALITY PLAN 7. 8.AUDITS & REVIEWS This section should include schedule for: * PHSER * HAZOP * TECHNICAL REVIEWS * LESSONS LEARNT REVIEW.2 CLOSE-OUT REPORT * HSEIA * VE * QA AUDITS .

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

Quality is a Journey. not a Destination .

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