Total Quality Management – TQM

Dr.-Ing. George Power

The Evolution of Quality Management

 The Evolution of Quality Management

Company-
Total wide
Quality Quality
Quality Control Control
Assurance

Quality
Control
(Acceptance
Sampling)
Mass
Inspection

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 Evolution of Quality Management

 Mass Inspection  Quality Assurance

 Inspecting  Emphasis on prevention
 Salvaging  Proactive approach using SPC
 Sorting  Advance quality planning
 Grading  Total Quality Control
 Rectifying  All aspects of quality of inputs
 Rejecting  Testing equipment
 Quality Control  Control on processes
 Quality manuals
 Product testing using SQC
Company
 Basic quality planning Quality
Total
Quality
- wide
Quality
Control Control
Assurance
Quality
Control
(Acceptance
Mass Sampling)
Inspection

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 Evolution of Quality Management (cont’d)

 Company-wide Quality  Total Quality Management

Control  Measured in all aspects of
 Measured in all functions business
connected with production:  Top management
 R&D commitment
 Design  Continuous improvement
 Engineering
 Involvement & participation
 Purchasing
of employees
 Operations, etc.

Company-
Total wide
Quality Quality
Quality Control Control
Assurance
Quality
Control
(Acceptance
Sampling)
Mass
Inspection

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 Scope of different quality concepts

Total Quality
Management

Quality
Assurance

Quality
Control

Inspection

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 Evolution of quality concepts

Integrated
design and
Improvement in product quality

manufacturing
Quality
through
design
Improved
Focus on profit and Statistical designs Customer-driven
production quotas Process quality focus
Control
Statistical
sampling Organizational
Inspection quality focus
1920 1940 1960 1980 2000
Old concept of quality: New concept of quality:
Inspect for quality after production Build quality into the process.
Identify and correct causes of
quality problems
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 Quality “Gurus” and their contribution

Name Main Contribution

Dr. Walter A. Shewhart • Contributed to understanding of process variability
• Developed concept of statistical control charts
Dr. W. Edwards Deming • Stressed management’s responsibility for quality
• Developed “14 points” to guide companies in quality
improvement
Dr. Joseph M. Juran • Defined quality as “fitness for use”
• Developed concept of cost of quality
Dr. Armand V. Feigenbaum • Introduced concept of total quality control
Dr. Philip B. Crosby • Coined phrase “quality is free”
• Introduced concept of zero defects
Dr. Kaoru Ishikawa • Developed cause-and-effect diagrams
• Identified concept of internal customer
Dr. Genichi Taguchi • Focused on product design quality
• Developed loss function

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 Walter A. Shewhart (1891 – 1967)

 Often referred to as the “grandfather of

quality control”
 Worked as a statistician at Bell Labs
during the 1920s and 1930s
 Studied randomness and recognized that
variability existed in all manufacturing
processes
 Developed quality control charts that are
used to identify if the variability in the
process is random or due to an assignable
cause (operator, equipment, tools, etc.)
 Also stressed that eliminating variability
improves quality
 His work created the foundation
of today’s Statistical Process Control.

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 W. Edwards Deming (1900 – 1993)

 Known as the “father of quality control”

 Statistics professor at New York
University in the 1940s
 After Word War II he assisted many
Japanese companies in improving
quality
 In recognition of his work, the Japanese
established in 1951 the Deming Prize
 Only 30 years later American companies
began adopting Deming’s philosophy
 He outlined his notions of quality in his
famous 14 points
 Deming stressed that quality problems
are caused mainly by processes and
systems, including poor management.

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 Deming’s “System of Profound Knowledge”

 Appreciation of a system: Understanding the overall

processes involving suppliers, producers, and
customers (or recipients) of goods and services;
 Knowledge of variation: The range and causes of
variation in quality, and use of statistical sampling in
measurements;
 Theory of knowledge: The concepts explaining
knowledge and the limits of what can be known;
 Knowledge of psychology: Concepts of human
nature.

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 Deming’s key principles (“14 Points”)

1. Create constancy of purpose toward improvement of product and service, with

the aim to become competitive and stay in business, and to provide jobs.
2. Adopt the new philosophy. We are in a new economic age. Western management
must awaken to the challenge, must learn their responsibilities, and take on
leadership for change.
3. Cease dependence on inspection to achieve quality. Eliminate the need for
massive inspection by building quality into the product in the first place.
4. End the practice of awarding business on the basis of price tag. Instead, minimize
total cost. Move towards a single supplier for any one item, on a long-term
relationship of loyalty and trust.
5. Improve constantly and forever the system of production and service, to improve
quality and productivity, and thus constantly decrease costs.
6. Institute training on the job.
7. Institute leadership. The aim of supervision should be to help people and
machines and gadgets to do a better job. Supervision of management is in need of
overhaul, as well as supervision of production workers.

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 Deming’s “14 Points” (cont’d)

8. Drive out fear, so that everyone may work effectively for the company.
9. Break down barriers between departments. People in research, design, sales, and
production must work as a team, to foresee problems of production and in use
that may be encountered with the product or service.
10. Eliminate slogans, exhortations, and targets for the work force asking for zero
defects and new levels of productivity. The bulk of causes of low quality and low
productivity belong to the system and thus lie beyond the work force.
11. Eliminate work standards (quotas) on the factory floor. Substitute leadership.
Eliminate management by objective. Eliminate management by numbers,
numerical goals. Substitute leadership.
12. Remove barriers that rob the hourly worker, people in management and in
engineering of his right to pride of workmanship. The responsibility of supervisors
must be changed from sheer numbers to quality. Abolish the “annual or merit
rating and management by objective.”
13. Institute a vigorous program of education and self-improvement.
14. Put everybody in the company to work to accomplish the transformation. The
transformation is everybody's job.

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 Deming’s “Seven Deadly Diseases of
Management”

1. Lack of constancy of purpose

2. Emphasis on short-term profits
3. Evaluation by performance, merit rating, or annual
review of performance
4. Mobility of management
5. Running a company on visible figures alone
6. Excessive medical costs
7. Excessive costs of warranty, fueled by lawyers who
work for contingency fees

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 “A Lesser Category of Obstacles”

 Neglecting long-range planning

 Relying on technology to solve problems
 Seeking examples to follow rather than developing solutions
 Excuses, such as "our problems are different"
 Obsolescence in school that management skill can be taught in
classes
 Reliance on quality control departments rather than management,
supervisors, managers of purchasing, and production workers
 Placing blame on workforces who are only responsible for 15% of
mistakes where the system desired by management is responsible
for 85% of the unintended consequences
 Relying on quality inspection rather than improving product quality.

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 The PDCA cycle

 The Plan-Do-Check-Act (PDCA) cycle is a four-step

management process used in business.
 It is also known as the Deming (or Shewhart) circle, cycle or
wheel, or Plan-Do-Study-Act (PDSA).

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 The PDCA management process

 PLAN
Establish the objectives and processes necessary to deliver results in accordance
with the expected output (the target or goals).
 DO
Implement the new processes, often on a small scale if possible, to test possible
effects. Collect data for charting and analysis for the following "CHECK" step.
 CHECK
Measure the new processes and compare the results (collected in "DO" above)
against the expected results (targets or goals from the "PLAN") to ascertain any
differences. Charting data can make this much easier to see trends in order to
convert the collected data into information needed for the next step "ACT".
 ACT
Analyze the differences to determine their cause. Each will be part of either one
or more of the P-D-C-A steps. Determine where to apply changes that will include
improvement. When a pass through these four steps does not result in the need
to improve, refine the scope to which PDCA is applied until there is a plan that
involves improvement.
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 Joseph M. Juran (1904 – 2008)

 20th century management consultant and author

remembered as a preacher for quality and quality
management
 He developed the idea of trilogy:
 Quality Planning
 Quality Improvement
 Quality Control
 He stressed that conformance to specifications is
necessary but not sufficient requirement of a
product
 The fitness for use by the consumer of the
targeted market segment is an essential
requirement in addition to conformance.

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 Juran’s Trilogy

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 Juran’s 10 Points

1. Build awareness of need and opportunities for

improvement
2. Set goals for improvement
3. Organize the overall improvement program
4. Provide the training
5. Solve problems through project methodology
6. Report progress
7. Give recognition
8. Communicate results
9. Keep score
10. Institutionalize the improvement process
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 Armand V. Feigenbaum (b. 1922)

 Quality control expert and businessman.

 He devised the concept of Total Quality Control,
later known as Total Quality Management
(TQM), as an “effective system for integrating
the quality development, quality maintenance,
and quality improvement efforts of the various
groups in an organization to achieve full
customer satisfaction."
 He also developed the concept of a "hidden"
plant—the idea that so much extra work is
performed in correcting mistakes that there is
effectively a hidden plant within any factory.
 Accountability for quality: Because quality is
everybody's job, it may become nobody's job—
the idea that quality must be actively managed
from the highest levels of management.
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 Philip B. Crosby (1926 – 2001)

 Businessman, consultant and author who contributed

to management theory and quality management
practices
 He initiated the Zero Defects program at the Martin
Company Orlando, Florida, plant
 Crosby's response to the quality crisis was the principle
of “doing it right the first time” (DIRFT). He would also
include four major principles:
 the definition of quality is conformance to requirements
(requirements meaning both the product specifications
and the customer's requirements)
 the system of quality is prevention
 the performance standard is zero defects
 the measurement of quality is the price of
nonconformance

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 Crosby’s quality points
 Do it right the first time
 Zero Defects
 Quality is defined as conformance to
requirements, not as 'goodness' or
'elegance'
 The system for causing quality is
prevention, not appraisal – Quality is
Free
 The performance standard must be
Zero Defects, not “that's close
enough”
 The measurement of quality is the
Price of Non-conformance, not
indices.
 Cost of quality is only the measure of
operational performance
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 Management commitment
 Quality improvement team
 Quality measurement
 Evaluation of cost of quality
 Quality awareness
 Corrective action
 Establish committee for zero defect
planning
 Supervisor training
 Zero Defect Day
 Goal Setting
 Error cause removal
 Recognition
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 Kaoru Ishikawa (1915 – 1989)

 Japanese university professor and influential

quality management innovator best known for his
cause-and-effect diagrams (also Ishikawa or “Fish
Bone” diagrams)
 Simplified statistical techniques for QC
 Stressed the implementation of company-wide
quality control, quality circles and shared vision
 “Quality does not only mean the quality
of product, but also of after sales service,
quality of management, the company itself
and the human life.”

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 Ishikawa’s Cause-and-Effect-Diagram

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 Ishikawa’s three sets of causes

 8 M’s (in manufacturing)  8 P’s (in services)

 Machine  Price
 Method  Promotion
 Materials  Process
 Man Power  Place/Plant
 Mother Nature  Policies
 Measurement  Procedures
 Maintenance  Product (or Service)
 Management  4 S’s (in services)
 Surroundings
 Suppliers
 Systems
 Skills

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 Genichi Taguchi (b. 1924)

 Japanese engineer and statistician. From the

1950s onwards, he developed a methodology
for applying statistics to improve the quality
of manufactured goods.
 Key elements of his quality philosophy
include:
 Loss function, used to measure financial loss
to society resulting from poor quality;
 The philosophy of off-line quality control,
designing products and processes so that they
are insensitive (“robust”) to parameters
outside the design engineer’s control; and
 Innovations in the statistical design of
experiments, notably the use of an outer array
for factors that are uncontrollable in real life,
but are systematically varied in the
experiment.
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 Taguchi’s Loss Function

 A quality product is a product that causes a minimal loss

(expressed in money!) to society during it's entire life
 The relation between this loss and the technical
characteristics is expressed by the loss function

Traditional and Taguchi’s view of non-conformance

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