Total Quality Management

MMZG 522/MBAZG522/QMZG532
Rajiv Gupta
BITS Pilani
Live Lecture 3
 Recitation 3
• Module 1
– Personal Quality Checklist
• Module 2
– Topics Covered in Prerecorded Lectures 3 and 4
• Module 3
– Discussion on Prerecorded Lecture 3
• Module 4
– Discussion on Prerecorded Lecture 4
• Module 5
– Brief Summary of Prerecorded Lecture 5
• Module 6
– Brief Summary of Prerecorded Lecture 6
• Module 7
– Discussion Questions for the next recitation

2
 Recitation 3
• Begin Module 1
– Personal Quality Checklist

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 Personal Quality Checklist
• The checklist is a list of personal attributes that you want to
improve upon.
• Ideally the number of attributes should be between 5 and 10
• You should have sufficient number of “defects “ that can be
measured per week etc, i.e., they should be challenging.
• The attributes should be selected so that their conformance
or non-conformance can be observed unambiguously.
• There should be enough time saver activities to allow for extra
activities.
• There should be a mix of personal and work related
attributes.
• You should seek inputs from your “customers.”

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 Personal Quality Checklist
• Some Common Mistakes made:
– Ambiguously defined attributes, like eating healthy, or
giving up a bad habit
– Monthly or longer frequency of tracking. Needs to be
broken down into shorter targets.
– Not tracking multiple occurrences of “defects” in a
single day
– Not enough “defects.” Attributes too easy.
– Not having time savers to balance against activities
that need more time
– Only personal or work related attributes. Not a mix.
– No input from “customers.”
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 Personal Quality Checklist
• As you track defects, note the number of
defects in each attribute every day. Then add
up the total number of defects across all
attributes for the week and plot it on a run
chart.
• You can also chart any attribute individually.
But it is not necessary to chart all attributes
individually. Chart those that need detailed
analysis for correction/improvement.

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 Personal Quality Checklist
• You will record the defects for the next several
weeks.
• You may notice improvement in some
attributes, and not much improvement in
others. Why is this the case? What should you
do about it?

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 Example

Attribute Week 1 Week 2 Week 3 Week 4

Attribute 1 3 2 4 2
Attribute 2 4 5 1 4
Attribute 3 2 1 2 1
Attribute 4 4 4 3 1
Total 13 12 10 8

The above are the number of defects for the attributes in each week.

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 Run Chart for Defects
14

12

10

Defects
Series1
6

0
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

Weeks 9
 Variation of Weights
65.5

USL
65

64.5

Wt. 64
Wt kgs
kgs

63.5

LSL
63

62.5
8-6-2016 8-8-2016 8-10-2016 8-12-2016 8-14-2016 8-16-2016 8-18-2016 8-20-2016 8-22-2016

Does the chart show points that are out of control?

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 Variation of Weights
66.5

66

65.5
UCL
65

64.5
Series1

64
Xbar

63.5

63

62.5
LCL
0 5 10 15 20 25 30

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 Recitation 3
• End of module 1

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 Recitation 3
• Begin Module 2
– Topics Covered in Prerecorded Lectures 3 and 4

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 Prerecorded Lecture 3
• This lecture is about Deming and his approach to
overall management which is about a very systemic
approach to quality and value creation.
• Deming is known for two main contributions. One is
his System of Profound Knowledge and the other is
his 14 Points.
• The System of Profound Knowledge were his last
contribution before he passed away in 1994.

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 Prerecorded Lecture 3
• The System of Profound Knowledge (SOPK) consists
of 4 elements, Appreciation of a System, Knowledge
of Variation, Theory of Knowledge and Psychology.
• Appreciation of a System advocates that we view
businesses and other activities as systems. Otherwise
our attempts to understand and improve activities
will not result in overall improvement.
• Knowledge about Variation deals with the difference
between common cause and special cause variation
and the need to understand which is inherent in the
current system configuration.
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 Knowledge About Variation

x Out of control
point
Upper
x Control
x x Limit
x
x
x x X bar

x x Lower
Control
Limit

Time
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 Prerecorded Lecture 3
• Any attempt to meddle with random variations due to
common causes may result in making the variations
worse.
• Theory of Knowledge focuses on the PDSA cycle as the
only viable approach to gain knowledge about a system.
We need to have a theory that is constantly testable.
• Psychology talks about the need to understand that each
individual is born with an intrinsic motivation to learn.
But our systems of rewards and punishments destroy this
motivation and take away the joy of learning.

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 Prerecorded Lecture 3
• Deming’s 14 Points are embedded in the SOPK.
• The 14 Points discuss in detail the things that a good
manager must do in order to create a great
organization.
• The 14 Points are general in nature and do not get
specific in terms of how each of them must be
achieved. These are left to the judgement of the
managers.

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 Prerecorded Lecture 4
• Lecture 4 begins with SIPOC model of a system. The
role of the organization’s purpose is discussed.
• It is shown that it is essential to ensure the alignment
of the activities of everyone in the organization.
Otherwise there will be a lot of wasted time and
effort.
• In order to truly focus of the customer, a company
first needs to understand the true customer needs
and then see how best they can meet those needs.

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 Prerecorded Lecture 4
• Several companies behave in a product-out fashion
as opposed to a customer-in manner. A product-out
orientation is exhibited by an organization that
considers its task to put out products that it feels a
customer should buy as opposed to first
understanding what the customer needs.

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 Prerecorded Lecture 4
• Several companies that have adopted the product-
out approach have not survived for too long.
• Customers are both internal and external.
• Even among the external customers there is a
difference between a customer who pays for the
product, someone who uses the product, and
someone who influences the purchase.
• Examples would be minor patients who do not pay
for their treatment. Doctors and others influence the
choice of treatment as well as hospitals.

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 Recitation 3
• End of module 2

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 Recitation 3
• Begin Module 3
– Discussion Questions on Prerecorded lecture 3

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 Recitation
• Discussion questions
– Suggest an example where systems thinking can help
improve how we address problems
– What is the relevance of the theory of learning in
running organizations?
– What do you understand regarding the theory of
variation? Why is it important?
– Have you observed the way in which any organization
curbs the joy of learning and discovery? Give some
examples of intrinsic and extrinsic motivation.

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 Recitation
• Discussion questions
– Take any point in Deming’s 14 points and suggest
an example illustrating its relevance and use.

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 Deming’s 14 Points
1. Create constancy of purpose toward improvement of product
and service, with the aim to become competitive and to 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 inspection on a mass basis by building quality
into the product in the first place.

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 Deming’s 14 Points
4. End the practice of awarding business on the basis of price
tag. Instead, minimize total cost. Move toward 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.

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 Deming’s 14 Points
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.

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.

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 Deming’s 14 Points
10. Eliminate slogans, exhortations, and targets for the work force
asking for zero defects and new levels of productivity. Such
exhortations only create adversarial relationships, as the bulk of the
causes of low quality and low productivity belong to the system and
thus lie beyond the power of the work force.

– Eliminate work standards (quotas) on the factory floor. Substitute

leadership.

– Eliminate management by objective. Eliminate management by

numbers, numerical goals. Substitute leadership.

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 Deming’s 14 Points
11. Remove barriers that rob the hourly worker of his right to
pride of workmanship. The responsibility of supervisors must
be changed from sheer numbers to quality.

12. Remove barriers that rob people in management and in

engineering of their right to pride of workmanship. This
means, inter alia, abolishment of the annual or merit rating
and of management by objective.

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 Deming’s 14 Points
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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 Recitation 3
• End of Module 3

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 Recitation 3
• Begin Module 4
– Discussion Questions on Prerecorded lecture 4

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 Recitation
• Discussion questions
– What is the purpose of your organization? How
does the leadership of the organization work to
convey the purpose to the employees? How well
is your organization aligned to its purpose?
– What prevents companies from meeting its
customer’s expectations? How well does your
organization meet its customer expectations?
– Do you know who is your customer? If so, how do
you ensure that you meet his/her requirements?

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 Recitation
• Discussion questions
– How does your company keep track of customer
satisfaction? What are the shortcomings in that
approach?
– Think of any organization with multiple customers.
How would they be able to satisfy conflicting needs?
– Consider the total experience of a person visiting a
bank and describe the components of that total
experience.

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 Recitation 3
• End of module 4

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 Recitation 3
• Begin Module 5
– Brief Summary of Prerecorded Lecture 5

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 Summary of Lecture 5
• The configuration of the system as well as the inputs to the
system result in the output which results in customer
satisfaction
• When a system does not perform as desired, problem solving
needs to be resorted to
• Problem solving should be done using the PDSA approach to
be effective
• Before we can solve a problem, it is important to first identify
what the problem is and also to identify the root cause of the
problem
• Frequently, if the problem is not correctly understood, or the
root cause not identified, the wrong problem may get solved
or we may address symptoms. The problem will not be solved
for good.

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PDSA Cycle – Learning Cycle

ACT PLAN

STUDY DO

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 Summary of Lecture 5
• The purpose of problem solving is not just to address
the immediate need but to prevent the problem
from occurring at any time in the future
• The problem solving approach requires that we
arrive at countermeasures for the problem, test the
countermeasures and, based on the test, either
deploy the countermeasures or make adjustments
until the countermeasures effectively eliminate the
problem.
• After determining the countermeasure(s) we need to
standardize the system.
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 Summary of Lecture 5
• Six Sigma is an approach to dramatically reduce the
variability in products and processes
• Theoretically, Six Sigma implies one error in a million
opportunities. But in practice it is accepted as 3.4
errors in a million
• An organization needs to approach Six Sigma as a
system and not as a fad.
• DMAIC is a process used by Six Sigma practitioners to
solve problems

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 Recitation 3
• End of module 5

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 Recitation 3
• Begin Module 6
– Brief Summary of Prerecorded Lecture 6

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 Summary of Lecture 6
• Lecture 6 discusses process improvement.
• Process improvement can be of small scale, medium
scale, or large scale depending on the scope and effect.
• Process improvement can be either continual, and in
small steps, or periodic, and breakthrough in nature.
• Both continual and breakthrough improvements are
necessary to stay ahead of the competition.
• There are a number of charting techniques to improve
processes, Process Charts, Flow Diagram, etc.

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 Summary of Lecture 6
• Managing change is not an easy task as people naturally resist
change.
• Resistance to change comes from a variety of reasons
including habits, fear of the unknown, lack of trust, lack of
understanding, etc.
• There are three approaches to convince people to change; top
down, appealing to logic, and appealing to societal and
emotional concerns.
• Of all the three approaches, the last one will lead to more
sustainable change.
• There are three categories of people; those who support
change, those who resist change, and those who are neutral.

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 Summary of Lecture 6
• The neutrals are the largest in number of the three
categories.
• When considering bringing about change, we should
focus on the neutrals, because they are easier to
convert than those opposed to change. However, we
should enlist the support of those who favor the
change.
• There are four categories to describe the cost of
quality; Prevention Costs, Appraisal Costs, Costs of
Internal Failure, and Costs of External Failure

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 Summary of Lecture 6
• It is best to focus on the cost of preventing poor
quality as the benefits from these efforts will be
greater than the costs incurred in ensuring
prevention.

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 Recitation 3
• End of module 6

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 Recitation 3
• Begin Module 7
– Discussion Questions for the next recitation
– Based on Prerecorded Lectures 5 and 6

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 Next Recitation
• Discussion questions
– Juran’s Trilogy is Planning, Control, and Improvement.
Does your organization ensure control before
improvement?
– How does your organization deal with problems
related to customer complaints? Does management
believe in going to the gemba?
– Have you been involved in root cause analysis? What
method did you use?
– Does your organization use Six Sigma? Is it s real thing
or a fad at your company?

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 Next Recitation
• Discussion questions
– Suggest an example of continuous improvement
– How does your company view process
improvement?
– Have you been involved with managing change, or
seen change being managed? How was the
experience?
– How would you suggest change be managed for
better outcomes?

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 Next Recitation
• Discussion questions
– Give an example of successful and unsuccessful
change management.
– Give examples of cost of quality you have
observed. Suggest how these might be improved

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Questions?

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