Training script:

TQM - Total Quality

Management

www.iLeanGO.com

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 What is TQM?

TQM - introduction

TQM is a comprehensive philosophy including quality problems as a system,

which, thanks to the commitment of all members of the organization in the
process of the improvement of the quality of product (service) and its
activities, as well as to the competent determining of the goals of the
organization strives to meet the needs and expectations of customer.

Three scientists made the largest contribution to the development of TQM

concept: Edward Deming, Joseph Juran and Philip Crosby.

The improvement of quality supported by TQM has become an important

asset in the fight against the competition, this methodology has been
recognized by many companies as a future method of management

TQM concept
TQM is characterized by five guiding leading philosophies

• quality is defined from the customer`s point of view

• quality is associated with both market profitability and from the

point of view of the costs within the organization

• quality is seen as an element of competition

• quality involves the strategic planning of process

• quality requires a huge commitment of everyone in the

organization

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TQM principles

Total Quality Management (TQM), according to Crosby is the philosophy of

work based on four principles:

1) Quality means achieving the compliance with specified

requirements
2) The quality system is aimed at prevention
3) Work is done without defects
4) Measurement of the level of quality is associated with the
analysis of costs

The main assumptions of TQM

Developed by Deming, Juran, and Crosby:

• policy of development

• commitment of suppliers and customers

• management of processes

• measurement of the results of activity

• team work

• involvement of employees

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Key elements of TQM

According to Runge the key elements of TQM are:

• Development and implementation of quality strategy specifying

measurable objectives

• Commitment of management team and employees through

communication, training, recognition and transfer of
competence

• Provision of the resources necessary to achieve the objectives

set

• Improvement and reduction of administrative and production

processes in the enterprise

• Identifying and raising the level of customer satisfaction and the

company's employees, as well as the image of the company in
the public opinion (image)

• Analysing the results of enterprise and indicators achieved and

comparing them to the objectives set (managing the enterprise)

TQM activities
The first stage of activities is the analysis of the existing situation, which allows
for the assessment of the steps taken to improve the quality of product and
the whole process of its implementation. This assessment is made through
internal analysis and benchmarking.

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The second stage of work on the implementation of TQM is to create clear
and smoothly functioning quality system. The quality system describes the
interoperability of individual organizational units to create a product
completely compatible with the requirements specified by the customer.

The primary objective of the implementation of system is to satisfy the

customer, that is the adaptation of production to the requirements of
customer.

Seven steps of the implementation of quality system can be distinguished:

1) The decision as regards the design, development and

implementation of the Quality Management System (QMS)
compliant with standards

2) Appointment and training of animators in charge of quality

responsible for the implementation of system

3) Setting up the team responsible for the development of system

4) Assessment of the existing situation - the existing quality system

from the point of necessary changes

5) Development and implementation of action plan covering the

construction of the quality system in the enterprise consisting
in:

- reduction of non-compliance
- elimination of non-compliance
- introduction of preventive action

6) Self-control, audits and corrective action in the course of the

operation of system

7) Continuous improvement of system - CPU (Continuous

Improvement Process)

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The above-mentioned steps of the implementation of quality system can be
included in four stages, as shown in figure Stages of the implementation of
quality system in the enterprise:

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 Current state analysis

Current state analysis

Works should begin with the preparation of materials, specifying the present
state of enterprise. This state should be specified after the implementation of
Phase III.

If it was not done all the instructions describing the implementation of 5S

principles, standards of the implementation of operation, SMED checklists,
forms of activities associated should be collected, and process maps
including all changes introduced should be prepared.

The documents collected will constitute the starting point to the self-analysis
of TQM.

Self-analysis

• TQM self-analysis is a tool, which allows to assess the weaknesses and

strengths of the enterprise for the quality of material and information
flows and management methods and the conformity of product with
the requirements of customer. It also allows you to find to what extent
the enterprise is prepared for the implementation of QAS in
accordance with the requirements of ISO 9000 standards of 9000 series

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• The best method of TQM self-analysis is the one based on the reward
of quality of Malcolm Baldrige

• As part of the preparation for self-analysis two-three hour training for

representatives of senior executive management to get acquainted
with the model of rewards and the TQM elements included in it with
the presentation of practical examples of the daily work of enterprises

• Later self-analysis should be performed in order to assess the operation

of the system and the development of the whole enterprise. From now
on it should be performed regularly once a year

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 Assessment of customer satisfaction

Assessment of customer satisfaction

The second element of the analysis of existing state is customer satisfaction.

• One of the most important factors, which is a condition of success is

customer satisfaction in TQM. Only satisfied customers will order again,
and one unsatisfied customer has a greater impact on total sales than
ten satisfied ones. Therefore, the dialogue between the customer and
the enterprise is extremely important to assess customer satisfaction
and to adapt the product to the requirements set by him.

• Three basic methods are used to assess the customer`s opinion:

1. Regular, personal dialogue with the customer with the initiative

of seller - possible to apply with reference to several major
customers

2. Sending out a survey - possible to apply to any number of

customers. The survey should cover the important elements
from the point of view of the customer, not a market study. As
a result, the willingness to answer questions will increase

3. Telephone survey/skype - the form of surveying used more and

more often, allows direct access to information from specific
people

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Model of customer satisfaction assessment
process

The influence of customer's votes on the course of works in the enterprise is

shown in figure "Model of customer satisfaction assessment process" below.
The advantage of this procedure is that it can be used in the enterprise of
any size and part of the information on the level of customer satisfaction is
collected automatically.

The essential elements of the process are:

• Choice of customers, who will be taken into consideration in the

assessment. The criteria can be turnover, strategic importance,
geographical location, etc.

• Sources of information such as: survey results, customer complaints,

critical situations (important customer problems; problems with their
own products, possibility of losing the customer), the conversation
with the customer, indispensable warranty services and current
expenditure on maintenance and repair

• Assessment of information. All results from various sources of

information are evaluated, sorted out and presented to top
management. The manager in charge of quality during the process
of the assessment of customer satisfaction makes the assessment

• Discussion on results. Within the management team results are

discussed and people responsible for corrective action are
appointed. Such meetings with the participation of the management
should be held every month

• Observation and supervision. The effectiveness of improvement

actions taken must be checked on a regular basis by the manager in
charge of quality

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 • Feedback and communication. It is very important that the customer
is familiar with the plans of improvement. If the customer knows that
the problems have been identified and works on their solution, he is
more willing to accept critical situations

Every enterprise should create such a process individually together with a

description of the responsibilities for each function, and implement it to the
daily practice through regular assessments once a month or once every few
months (depending on the specificity of production). Below is the
information matrix, which specifies which information can be obtained from
the individual employees of customer.

Information matrix for supplier-customer relations

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The analysis of the existing situation should specify the baseline of enterprise
and indicate:

 if there is a system already

 if the division of functions is clearly defined

 what documentation system is kept

 if the channels of information to individual employees function properly

and what is the state of their knowledge

 if the processes in the enterprise are defined and described and in

what way.

The results of analyses should be structured according to ISO standards of

9000 series, and then presented graphically in the form of the graph of the
degree of fulfilling the requirements

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 Creating of Quality Assurance System

Guidelines
• The construction of the system should start by creating a team in
charge of TQM. At the beginning this team should consist of two
experts and one to three (depending on the size of enterprise)
people with knowledge of the basics of quality management and
able to implement projects independently

• These features will be important at a time when experts withdraw

from the implementation of system and the employees on their own
will have to set up a team supervising the improvement of quality in
the enterprise

• Representatives of the enterprise should be trained as internal

auditors (training in a similar scope as the one to which experts were
subjected)

Documentation of Quality Assurance System

Documentation of QMS is composed of three basic components: Books of
Quality, Procedures (system and work) and the Instructions of work

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System of Quality Assurance

• The basis of QAS documentation are instructions in the form of

implementation provisions for the functioning of individual work
places both in the area of production tasks, and their control. For
their implementation in the course of technological operations and
development of production employees are responsible

• The parent role in relation to the instructions is played by the work

procedures in the form of internal documentation regulating the rules
of flows and allocation of tasks in the production process. Managers
are responsible for their implementation and development

• System procedures are the following: internal documentation

concerning the activity in the field of the quality of the functioning of
enterprise and responsibility for it. These procedures are implemented
and developed by the staff of quality supervision

• The main document of QMS is the Book of Quality, which specifies the
rules and policy, which the organization observes in its functioning.
This functioning is to provide the achievement of the required quality
of products and services rendered. The Book of Quality is an external
document, which is presented to customers in order to convince
them of the efficiency of the functioning of QMS of the supplier

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Revision of the documentation of quality
assurance system

• QAS documents formed in the previous stage should have the opinion
by the procedure established with entries of procedure "Developing
QAS documentation" before they are edited in the final draft

• Any comments made by consulting authorities, above all users of a

particular document should be examined by TQM team and possibly
included in the final version of documentation

• In practice, the introduction to the trail use of more complex

procedures to verify them is also used

Construction of the plan for the implementation of

documentation system

• The analysis performed and the documentation created allow to build

a schedule of the implementation of changes in accordance with the
guidelines resulting from the newly created system of information and
material circulation

• The order of the

implementation of changes
should be determined the
weight of each factor with
respect to the objectives
set by the enterprise

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 Implementing of QAS

Guidelines

The implementation of the Quality Assurance System begins with the

implementation of tasks resulting from the acceptance of guidelines for the
documentation of processes, i.e. the construction of instructions, forms and
procedures. The effect of these actions will changes mainly in the flow of
information, but the QMS will also have an impact on the flow of materials.

For the proper implementation of the Quality System training of employees

should be carried out in the field:

• Quality management, costs of quality and assessment of the

effectiveness of quality system

• Policy and quality of organization objectives and the concept of focus

on customer satisfaction

• Developing awareness in the field of quality

• Development of procedures, instructions, forms, quality records, etc.

• Development of quality plans and the book of quality

• Process control, data collection and their analysis, specifying problems

and their analysis, corrective actions and development of teamwork
and communication methods

• Assessment of the achievements of employees to define their

development and potential needs

The next step will be an internal audit involving the control of the
compliance of flows described in the Book of Quality and the internal
documentation relating to it and repeated self-analysis according to the
criterion of reward of Malcolm Baldrige. The control performed should result

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in guidelines for corrective action. After performing improvement and
adjustment actions the enterprise is prepared to certification.

Certification

• After completing the implementation of documentation and internal

audit the person responsible for quality in the enterprise can draw up
the application for certification, the approval of which by the
management and passing with the required documents to the
selected certification unit starts the process of the certification of
system

• The Quality Assurance System can be subjected to certification of one

of the models of standards PN-ISO 9001, 9002 or 9003. After the
approval of the new version of ISO 9000, only one model-9001 will be
at the disposition with possible relevant restrictions. In addition, the
certification of processes, products and staff is possible

• The choice of the type of certification depends on many factors.

Above all, it is the customer who decides and his requirements. The
most commonly used in practice is the model according to ISO 9002
(75% of granted certificates), then model according to ISO 9001 (22%),
and very rarely model according to ISO 9003

Post-certification

The first step made after certification should be to make the team in charge
of TQM independent. This means that experts withdraw their commitment in
actions to improve the quality system, passing their competence to the
other participants of the team. From now on, they will be responsible for
controlling the development of QAS.

The period of the validity of certificate is usually three years, then external
recertification is required. Every time after the expiration of the year it is
necessary to perform control audit That, however, is not enough

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Necessary internal activities must be performed throughout the year:

• Drawing up the action plan on the basis of the report on certification

audit. Identified weak points should be eliminated immediately and
recommendations should be filled in

• Each year, a framework plan of audits should be drawn up, in which

dates and persons responsible for carrying out the annual system audit
and audit procedures will be fixed

• Annual re-development of documentation in order to take into

account the organizational changes, simplification of procedure with
documents and increase of the acceptance of system on the part of
all employees. Here changes in the documentation resulting from
applications for the improvement of the course of processes are also
made

• Training new employees and documentation of changes

• Regular (once every 3 months) meetings with the participation of the

management of enterprise, heads of functional areas and advisors in
charge of quality of all parameters affecting the quality and customer
satisfaction

• Carrying out audits and corrective action

• Qualification of new suppliers and products

• Annual summary of the essential elements of system in the form of

leaflet, which is distributed among employees. This can be, for
example, the summary of the indices of enterprise and quality
objectives, structure of existing organization, surnames of persons
responsible, to whom you must report your comments, review of ISO
standards, key dates and presenting the ZJ system with its essential
elements

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Continuous Improvement

In accordance with the principles of the concept Lean the enterprise, in

addition to the current control measures, must develop. This means the
need to make improvements associated with improving the effectiveness of
pro-quality activities. Two programs are intended for this purpose:

• Benchmarking - looking for the best processes and ways of

production organization, aiming to achieve the highest
performance and consisting of comparing the processes in the
enterprise analysed and the competitor - partner of
benchmarking

• Quality circles - looking for ways to improve the course of single

partial processes and within design teams organized inside the
enterprise

Creating of improvement programs will stimulate the organization to

changes. The lack of specific solutions will not stimulate the employees of
enterprise sufficiently to look for ways to develop work methods.

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Additional programs aimed at improving quality are: the "zero error”
program (otherwise known as Six Sigma - more about Six Sigma in Yellow
Belt module) and the implementation of the Environmental Management
System.

An important element of improvement will be the implementation of CAQ

module (Computer Aided Quality) to the existing computer system.

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