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TOTAL QUALITY

MANAGEMENT

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SOME DEFINITION OF QUALITY
What is quality?
QUALITY PERSPECTIVES

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What is quality?
OTHER QUALITY PERSPECTIVES
Everyone defines Quality based on their own
perspective of it. Typical responses about the definition
of quality would include:
1. Perfection
2. Consistency
3. Eliminating waste
4. Speed of delivery
5. Compliance with policies and procedures
6. Doing it right the first time
7. Delighting or pleasing customers
8. Total customer satisfaction and service
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INTRODUCTION
 What is quality?
Dictionary has many definitions: “Essential
characteristic,” “Superior,” etc.
Some definitions that have gained wide acceptance in
various organizations: “Quality is customer satisfaction,”
“Quality is Fitness for Use.”

 The American National Standards Institute (ANSI) and


the American Society for Quality (ASQ) define quality
as:
“The totality of features and characteristics of a product
or service that bears on its ability to satisfy given needs.”
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QUALITY –
DEFINITION

1. Predictable degree of uniformity and dependability at


low cost and suited to the market –Deming
2. Fitness for use-Juran
3. Conformance to requirements - Crosby
4. Minimum loss imparted by a product to society from the
time the product is shipped - Taguchi
5. A way of managing tile organization -Feigenbaum
6. Correcting and preventing loss, not living with loss -
Hosffin .
7. The totality of characteristics of an entity that bear on
its ability to satisfy stated and implied needs – ISO
DEFINITIONS OF QUALITY
 Judgmental Perspective

 Product-based definition: quantities of product


attributes
 User-based definition: fitness for intended use
 Value-based definition: quality vs. price
 Manufacturing-based definition: conformance to
specifications
QUALITY PERSPECTIVES
Judgmental perspective
 “goodness of a product.”
 Shewhart’s transcendental definition of quality –
“absolute and universally recognizable, a mark of
uncompromising standards and high achievement.”
 Examples of products attributing to this image: Rolex
watches, Lexus cars.
Product-based perspective
 “function of a specific, measurable variable and that
differences in quality reflect differences in quantity of
some product attributes.”
 Example: Quality and price perceived relationship. 13
QUALITY PERSPECTIVES
User-based perspective
 “fitness for intended use.”
 Individuals have different needs and wants, and hence
different quality standards.
 Example – Nissan offering ‘dud’ models in US markets
under the brand name Datson which the US customer
didn’t prefer.
Value-based perspective
 “quality product is the one that is as useful as competing
products and is sold at a lesser price.”
 US auto market – Incentives offered by the Big Three are
perceived to be compensation for lower quality. 14
QUALITY PERSPECTIVES
Manufacturing-based perspective
 “the desirable outcome of a engineering and
manufacturing practice, or conformance to
specification.”
 Engineering specifications are the key!

 Example: Coca-cola – “quality is about manufacturing a


product that people can depend on every time they reach
for it.”

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QUALITY LEVELS
At organizational level, we need to ask following
questions:
 Which products and services meet your expectations?
 Which products and services you need that you are not
currently receiving?

At process level, we need to ask:


 What products and services are most important to the
external customer?
 What processes produce those products and services?
 What are the key inputs to those processes?
 Which processes have most significant effects on the
organization’s performance standards? 16
QUALITY LEVELS
At the individual job level, we should ask:
 What is required by the customer?

 How can the requirements be measured?

 What is the specific standard for each measure?

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INTRODUCTION
 What is a customer?
Anyone who is impacted by the product or process delivered
by an organization.
External customer: The end user as well as intermediate
processors. Other external customers may not be purchasers
but may have some connection with the product.
Internal customer: Other divisions of the company that receive
the processed product.

 What is a product?
The output of the process carried out by the organization. It
may be goods (e.g. automobiles, missile), software (e.g. a
computer code, a report) or service (e.g. banking, insurance)
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INTRODUCTION
 How is customer satisfaction achieved?
Two dimensions: Product features and Freedom from
deficiencies.
 Product features – Refers to quality of design.
Examples in manufacturing industry: Performance,
Reliability, Durability, Ease of use, Esthetics etc.
Examples in service industry: Accuracy, Timeliness,
Friendliness and courtesy, Knowledge of server etc.
 Freedom from deficiencies – Refers to quality of
conformance.
Higher conformance means fewer complaints and
increased customer satisfaction. 19
WHY QUALITY?
Reasons for quality becoming a cardinal priority for
most organizations:
 Competition – Today’s market demand high quality
products at low cost. Having `high quality’ reputation is
not enough! Internal cost of maintaining the reputation
should be less.
 Changing customer – The new customer is not only
commanding priority based on volume but is more
demanding about the “quality system.”
 Changing product mix – The shift from low volume,
high price to high volume, low price have resulted in a
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need to reduce the internal cost of poor quality.
WHY QUALITY?
 Product complexity – As systems have become more
complex, the reliability requirements for suppliers of
components have become more stringent.
 Higher levels of customer satisfaction – Higher
customers expectations are getting spawned by
increasing competition.

Relatively simpler approaches to quality viz. product


inspection for quality control and incorporation of
internal cost of poor quality into the selling price, might
not work for today’s complex market environment.

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A QUALITY MANAGEMENT SYSTEM IS…

A belief in the employee’s ability to solve


problems

A belief that people doing the work are best


able to improve it

A belief that everyone is responsible for


quality
EXAMPLE S OF QUALITY
MANAGEMENT SYSTEM

TQM
SIX SIGMA
ISO 9001
EXAMPLE S OF QUALITY MANAGEMENT
SYSTEM
SIX SIGMA
EXAMPLE S OF QUALITY MANAGEMENT
SYSTEM
ISO9001
ELEMENTS FOR SUCCESS
 Management Support
 Mission Statement
 Proper Planning
 Customer and Bottom Line Focus
 Measurement
 Empowerment
 Teamwork/Effective Meetings
 Continuous Process Improvement
 Dedicated Resources
The Continuous Improvement
Process
Measurement

Empowerment/
Shared Leadership

Measurement
Measurement

Customer
Satisfaction

Business
Results Process
Team Improvement/
Management
Problem
Solving

...
Measurement
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TOTAL QUALITY CONTROL PHILOSOPHY

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TOTAL QUALITY CONTROL PHILOSOPHY
 TQM Focuses on identifying quality problem root
causes
 Encompasses the entire organization

 Involves the technical as well as people


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A vital task for any management is to outline

1. quality goals
2. quality policies; and
3. quality plans

….in accordance with the four sides of the


TQM pyramid.

these goals and policies should be clear


and meaningful to all employees in the
firm
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Companies large and small implement quality
management systems to improve performance
and increase customer satisfaction with the
company's products and services. To be
effective, implementations of such a system
must have specific objectives related to the
company's overall strategic goals. When a
small business defines such goals clearly, it
can identify the tasks and characteristics that
allow it to achieve its targets. Through the
quality management system, it can specify
tests and measurements that identify
problems and help improve output quality to
better meet the needs of its customers. 34
Quality goals

• The firm’s quality goals signal to


employees that the firm’s principal
task is to satisfy its external customers
and that this can only be achieved if
the firm is able to exceed customers’
expectations.

• The firm’s quality goals give all


employees a clear indication of what
is going to be achieved concerning 35
quality.
Goal Characteristics

The goals and objectives a company defines


under a quality management system have to
be clear, achievable and measurable. A clear
goal is one that addresses a specific objective
from the company's strategic plan. It includes
details of what employees have to do to
achieve it. To let employees determine when
the company has reached its goal, the goal has
measurable characteristics that indicate how
much progress is required and when the36
company has fulfilled its objectives.
Quality Policies
• The firm’s quality policies, on
the other hand, describe in more
detail how employees are to
achieve that goal.

• The firm’s quality policies must


also conform to the four sides of
the TQM pyramid.
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Action Plans
Quality goals and quality policies must be
followed by meaningful action plans.

Quality Audit
Experience from firms which have understood and
realized the TQM vision shows that firms ought to
concentrate on short-term plans (one-year plans)
and long-term plans, the latter often being three-
year plans which are revised annually in connection
with an annual quality audit.
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TOTAL QUALITY
MANAGEMENT
Total Quality Control Philosophy
 TQM Focuses on identifying quality
problem root causes
 Encompasses the entire organization
 Involves the technical as well as people
Total Quality Control Philosophy
 Customer focus ▪ Goal is to first
 Continuous identify and then
improvement meet customer needs
 Employee ▪ TQM recognizes that
empowerment a perfectly produced
 Use of quality tools product has little
value if it is not what
 Product design the customer wants
 Process management ▪ Quality is customer
 Managing supplier driven.
quality
Total Quality Control Philosophy
 Customer focus ▪ A philosophy of never-
 Continuous ending improvement
improvement ▪ The Plan–Do–Study–
 Employee Act Cycle
empowerment ▪ Benchmarking
 Use of quality tools
 Product design
 Process management
 Managing supplier
quality
Total Quality Control Philosophy
 Customer focus  to seek out quality
 Continuous problems and correct
improvement them
 Employee  Employees are
empowerment rewarded for
 Use of quality tools uncovering quality
problems, not
 Product design punished
 Process management
 Managing supplier
quality
Total Quality Control Philosophy
 Customer focus  External customers
 Continuous ◼ those that purchase
improvement the company’s
 Employee goods and services
empowerment  Internal
 Use of quality tools customers
 Product design ◼ employees of the
 Process management organization who
 Managing supplier receive goods or
quality services from
others in the
company
Total Quality Control Philosophy
 Customer focus  Team Approach
 Continuous ◼ Two heads are
improvement better than one
 Employee ◼ Using techniques such
empowerment as brainstorming,
discussion, and quality
 Use of quality tools control tools, teams
 Product design work regularly to
correct problems.
 Process management
◼ The contributions of
 Managing supplier teams are considered
quality vital to the success of
the company.
Total Quality Control Philosophy
 Customer focus  Quality Circle
 Continuous ◼ A team of volunteer
improvement production employees
and their supervisors
 Employee who meet regularly to
empowerment solve quality problems.
 Use of quality tools
 Product design
 Process management
 Managing supplier
quality
Total Quality Control Philosophy
 Customer focus  Employees need to
 Continuous identify and correct
improvement quality problems so
 Employee they need proper
empowerment training
 Use of quality tools  They need to
understand how to
 Product design assess quality by
 Process management using a variety of
 Managing supplier quality control tools,
quality how to interpret
findings, and how to
correct problems
Total Quality Control Philosophy
 Customer focus  Seven Tools of Quality
 Continuous Control
improvement
 Employee
empowerment
 Use of quality tools
 Product design
 Process management
 Managing supplier
quality
Total Quality Control Philosophy
 Customer focus  Quality Function
 Continuous Deployment
improvement ◼ A tool used to translate
the preferences of the
 Employee customer into specific
empowerment technical requirements
 Use of quality tools
 Product design
 Process management
 Managing supplier
quality
Total Quality Control Philosophy
 Customer focus  QFD encompasses
 Continuous ◼ Customer requirements
improvement ◼ Competitive evaluation
◼ Product characteristics
 Employee
◼ Relationship matrix
empowerment
◼ Trade-off matrix
 Use of quality tools
◼ Setting Targets
 Product design
 Process management
 Managing supplier
quality
Total Quality Control Philosophy
 Customer focus  Reliability
 Continuous ◼ The probability that a
improvement product, service, or part
will perform as
 Employee intended.
empowerment ◼ No product is 100%
 Use of quality tools certain to function
properly
 Product design ◼ Reliability is a
 Process management probability function
 Managing supplier dependent on sub-parts
or components
quality
Total Quality Control Philosophy
 Customer focus  Reliability
 Continuous ◼ Reliability of a system is
improvement the product of
component reliabilities
 Employee ◼ RS = (R1) (R2)... (Rn)
empowerment  RS = reliability of the
 Use of quality tools product or system
 R1 = reliability of the
 Product design components
 Process management ◼ Increase reliability by
placing components in
 Managing supplier
parallel
quality
Total Quality Control Philosophy
 Customer focus  Reliability
 Continuous ◼ Parallel components
improvement allow system to operate
if one or the other fails
 Employee ◼ RS = R1 + (R2*
empowerment Probability of needing
 Use of quality tools 2nd component)

 Product design
 Process management
 Managing supplier
quality
Total Quality Control Philosophy
 Customer focus  Quality products come
 Continuous from quality sources
improvement  Quality must be built
 Employee into the process
empowerment
 Use of quality tools
 Product design
 Process management
 Managing supplier
quality
Total Quality Control Philosophy
 Customer focus  Quality at the source
 Continuous ◼ a belief that it is better
improvement to uncover source of
quality problems and
 Employee correct it
empowerment  TQM extends to
 Use of quality tools quality of product
 Product design from company’s
 Process management suppliers
 Managing supplier
quality
Total Quality Control Philosophy
 Customer focus  An inspection
 Continuous performed to check
improvement the quality of
 Employee materials that has
empowerment arrived is viewed as a
practice contributing
 Use of quality tools to poor quality and
 Product design wasted time and cost.
 Process management
 Managing supplier
quality
Total Quality Control Philosophy
 Customer focus  TQM extends the
 Continuous concept of quality to
improvement suppliers and ensures
 Employee that they engage in
empowerment the same quality
practices.
 Use of quality tools
 Product design
 Process management
 Managing supplier
quality
Quality Awards and Standards
 Philippine Quality Award
 Malcolm Baldrige National Quality Award
(MBNQA)
 The Deming Prize
 ISO 9000 Certification
 ISO 14000 Standards
Philippine Quality Award
 Sets a standard of excellence to help
Filipino organizations achieve world-class
performance and serves as a “template”
for competitiveness based on the
principles of Total Quality Management
(TQM).
 A national quality award comparable with
the Malcolm Baldrige National Quality
Award (MBNQA) of the US and those in
Europe and Asia.
Malcolm Baldrige National Quality
Award (MBNQA)
 Award named after the former Secretary
of Commerce – Regan Administration
 Intended to reward and stimulate quality
initiatives
 Given to no more that two companies in
each of three categories; manufacturing,
service, and small business
 Past winners; Motorola Corp., Xerox,
FedEx, 3M, IBM, Ritz-Carlton
The Deming Prize
 Given by the Union of Japanese Scientists
and Engineers since 1951
 Named after W. Edwards Deming who
worked to improve Japanese quality after
WWII
 Not open to foreign companies until 1984
 Florida P & L was first US company winner
ISO 9000 Standards
 Certification developed by International
Organization for Standardization
 Set of internationally recognized quality
standards
 Companies are periodically audited &
certified
ISO 9000 Standards
 ISO 9000:2000 QMS
◼ Fundamentals and Standards
 Provides the terminology and definitions used in the
standards.
 It is the starting point for understanding the system
of standards.
 ISO 9001:2000 QMS
◼ Requirements
 This is the standard used for the certification of a
firm’s quality management system.
 It is used to demonstrate the conformity of quality
management systems to meet customer
requirements.
ISO 9000 Standards
 ISO 9004:2000 QMS
◼ Guidelines for Performance
 Provides guidelines for establishing a quality
management system.
 It focuses not only on meeting customer
requirements but also on improving performance.
 More than 40,000 companies have been
certified
ISO 14000 Standards
 Focuses on a company’s environmental
responsibility
Why TQM Efforts Fail
 Lack of a genuine quality culture

 Lack of top management support and


commitment

 Over- and under-reliance on statistical


process control
TQM Within
Operations Management
 TQM is broad sweeping organizational
change
 TQM impacts
◼ Marketing
 providing key inputs of customer information
◼ Finance
 evaluating and monitoring financial impact
◼ Accounting
 provides exact costing
TQM Within
Operations Management
◼ Engineering
 translate customer requirements into specific
engineering terms
◼ Purchasing
 acquiring materials to support product development
◼ Human Resources
 hire employees with skills necessary
◼ Information systems
 increased need for accessible information
Reference
 www.wiley.com
 Wiley and Sons
The Plan–Do–Study–Act Cycle
The Plan–Do–Study–Act Cycle
 A diagram that describes the activities
that need to be performed to incorporate
continuous improvement into the
operation.
 Also called the Deming Wheel after
originator
 Circular, never ending problem solving
process
The Plan–Do–Study–Act Cycle

 Plan  Evaluate current process


 Do  Collect procedures, data,
 Study identify problems
 Act  Develop an improvement plan,
performance objectives
The Plan–Do–Study–Act Cycle

 Plan
 Do  Implement the plan – trial basis
 Study
 Act
The Plan–Do–Study–Act Cycle

 Plan
 Do
 Study  Collect data and evaluate
 Act against objectives
The Plan–Do–Study–Act Cycle

 Plan
 Do  Communicate the results from
 Study trial
 Act  If successful, implement new
process
Benchmarking
 Studying the business practices of other
companies for purposes of comparison
THE QC TOOLS
Seven Tools of Quality Control
 Cause-and-Effect  A chart that identifies
Diagrams potential causes of
 Flowcharts particular quality
 Checklists problems.
 Control Charts  Cause-and-effect
diagrams are
 Scatter Diagrams problem-solving tools
 Pareto Analysis commonly used by
 Histograms quality control teams.
Seven Tools of Quality Control
 Cause-and-Effect
Measurement Human
 Specific Machines
causes of
Diagrams
Faulty problems can be
explored through
testing equipment Poor supervision Out of adjustment
 Flowcharts
Incorrect specifications
 Checklists
Lack of concentration brainstorming.
Tooling problems

Improper methods Inadequate training  The Old development


/ worn
of a
 Control Charts
cause-and-effect Quality
 Scatter Diagrams
Inaccurate diagram requiresProblem the
 Pareto Analysis
temperature
control Defective from vendor Poorteam to think through
process design

 Histograms all the possible causes


Ineffective quality
Not to specifications management
Dust and Dirt Material-
handling problems
of poor quality.
Deficiencies
in product design

Environment Materials Process


Seven Tools of Quality Control
 Cause-and-Effect  A schematic of the
Diagrams sequence of steps
 Flowcharts involved in an
 Checklists operation or process
 Control Charts  It provides a visual
tool that is easy to
 Scatter Diagrams use and understand.
 Pareto Analysis  Often the first step in
 Histograms Process Re-
Engineering
Seven Tools of Quality Control
 Cause-and-Effect  A list of common
Diagrams defects and the
 Flowcharts number of observed
 Checklists occurrences of these
defects.
 Control Charts
 A checklist can also be
 Scatter Diagrams used to focus on other
 Pareto Analysis dimensions, such as
 Histograms location or time.
Seven Tools of Quality Control
 Cause-and-Effect  Charts used to
Diagrams evaluate whether a
 Flowcharts process is operating
 Checklists within set
expectations.
 Control Charts
 Scatter Diagrams
 Pareto Analysis
 Histograms
Seven Tools of Quality Control
 Cause-and-Effect  Graphs that show how
Diagrams two variables are
 Flowcharts related to each other
 Checklists  They are particularly
 Control Charts useful in detecting the
amount of correlation,
 Scatter Diagrams or the degree of linear
 Pareto Analysis relationship, between
 Histograms two variables.
Seven Tools of Quality Control
 Cause-and-Effect  A technique used to
Diagrams identify quality
 Flowcharts problems based on
 Checklists their degree of
importance.
 Control Charts
 Often called the 80-20
 Scatter Diagrams Rule
 Pareto Analysis  Principle is that quality
 Histograms problems are the
result of only a few
problems e.g. 80% of
the problems caused
by 20% of causes
Seven Tools of Quality Control
 Cause-and-Effect  A chart that shows the
Diagrams frequency distribution
 Flowcharts of observed values of
 Checklists a variable
 Control Charts
 Scatter Diagrams
 Pareto Analysis
 Histograms
TOTAL QUALITY CONTROL PHILOSOPHY
 Customer focus ▪ Goal is to first
 Continuous identify and then
improvement meet customer needs
 Employee ▪ TQM recognizes that
empowerment a perfectly produced
product has little
 Use of quality tools
value if it is not what
 Product design
the customer wants
 Process management
▪ Quality is customer
 Managing supplier driven.
quality
TOTAL QUALITY CONTROL PHILOSOPHY
 Customer focus ▪ A philosophy of never-
 Continuous ending improvement
improvement ▪ The Plan–Do–Study–
 Employee Act Cycle
empowerment ▪ Benchmarking
 Use of quality tools

 Product design

 Process management

 Managing supplier
quality
TOTAL QUALITY CONTROL PHILOSOPHY
 Customer focus  to seek out quality
 Continuous problems and correct
improvement them
 Employee  Employees are

empowerment rewarded for


uncovering quality
 Use of quality tools
problems, not
 Product design
punished
 Process management

 Managing supplier
quality
TOTAL QUALITY CONTROL PHILOSOPHY
 Customer focus  External customers
 Continuous  those that purchase
improvement the company’s goods
and services
 Employee
empowerment  Internal customers
 employees of the
 Use of quality tools
organization who
 Product design receive goods or
 Process management
services from others in
the company
 Managing supplier
quality
TOTAL QUALITY CONTROL PHILOSOPHY
 Customer focus  Team Approach
 Continuous  Two heads are better
improvement than one
 Using techniques such
 Employee
as brainstorming,
empowerment discussion, and quality
 Use of quality tools control tools, teams
work regularly to
 Product design correct problems.
 Process management  The contributions of
 Managing supplier
teams are considered
vital to the success of
quality the company.
TOTAL QUALITY CONTROL PHILOSOPHY
 Customer focus  Quality Circle
 Continuous  A team of volunteer
improvement production employees
and their supervisors
 Employee who meet regularly to
empowerment solve quality problems.
 Use of quality tools

 Product design

 Process management

 Managing supplier
quality
TOTAL QUALITY CONTROL PHILOSOPHY
 Customer focus  Employees need to
 Continuous identify and correct
improvement quality problems so
they need proper
 Employee
training
empowerment
 They need to
 Use of quality tools
understand how to
 Product design assess quality by
 Process management using a variety of
 Managing supplier quality control tools,
quality how to interpret
findings, and how to
correct problems
TOTAL QUALITY CONTROL PHILOSOPHY
 Customer focus  Seven Tools of Quality
 Continuous Control
improvement
 Employee
empowerment
 Use of quality tools

 Product design

 Process management

 Managing supplier
quality
TOTAL QUALITY CONTROL PHILOSOPHY
 Customer focus  Quality Function
 Continuous Deployment
improvement  A tool used to translate
the preferences of the
 Employee customer into specific
empowerment technical requirements
 Use of quality tools

 Product design

 Process management

 Managing supplier
quality
TOTAL QUALITY CONTROL PHILOSOPHY
 Customer focus  QFD encompasses
 Continuous  Customer requirements
improvement  Competitive evaluation
 Product characteristics
 Employee
 Relationship matrix
empowerment
 Trade-off matrix
 Use of quality tools
 Setting Targets
 Product design

 Process management

 Managing supplier
quality
TOTAL QUALITY CONTROL PHILOSOPHY
 Customer focus  Reliability
 Continuous  The probability that a
improvement product, service, or part
will perform as
 Employee intended.
empowerment  No product is 100%
 Use of quality tools certain to function
properly
 Product design
 Reliability is a
 Process management probability function
dependent on sub-parts
 Managing supplier
or components
quality
TOTAL QUALITY CONTROL PHILOSOPHY
 Customer focus  Reliability
 Continuous  Reliability of a system
improvement is the product of
component reliabilities
 Employee  RS = (R1) (R2)... (Rn)
empowerment  RS = reliability of the
 Use of quality tools product or system
 R1 = reliability of the
 Product design components
 Process management  Increase reliability by
placing components in
 Managing supplier
parallel
quality
TOTAL QUALITY CONTROL PHILOSOPHY
 Customer focus  Reliability
 Continuous  Parallel components
improvement allow system to operate
if one or the other fails
 Employee  RS = R1 + (R2*
empowerment Probability of needing
 Use of quality tools 2nd component)

 Product design

 Process management

 Managing supplier
quality
TOTAL QUALITY CONTROL PHILOSOPHY
 Customer focus  Quality products come
 Continuous from quality sources
improvement  Quality must be built

 Employee into the process


empowerment
 Use of quality tools

 Product design

 Process management

 Managing supplier
quality
TOTAL QUALITY CONTROL PHILOSOPHY
 Customer focus  Quality at the source
 Continuous  a belief that it is better
improvement to uncover source of
quality problems and
 Employee correct it
empowerment  TQM extends to
 Use of quality tools quality of product
 Product design from company’s
 Process management
suppliers
 Managing supplier
quality
TOTAL QUALITY CONTROL PHILOSOPHY
 Customer focus  An inspection
 Continuous performed to check
improvement the quality of
materials that has
 Employee
arrived is viewed as a
empowerment
practice contributing
 Use of quality tools
to poor quality and
 Product design wasted time and cost.
 Process management

 Managing supplier
quality
TOTAL QUALITY CONTROL PHILOSOPHY
 Customer focus  TQM extends the
 Continuous concept of quality to
improvement suppliers and ensures
that they engage in
 Employee
the same quality
empowerment
practices.
 Use of quality tools

 Product design

 Process management

 Managing supplier
quality
History of The Quality
Movement.

103
History of The Quality Movement.
 As early as the 1950s, Japanese companies
began to see the benefits of emphasizing quality
throughout their organizations and enlisted the
help of an American.
 Dr. W. Edwards Deming, who is credited with
giving Japanese companies a massive head
start in the quality movement.
 His methods include Statistical Process Control
(SPC) and Problem-Solving Techniques (PST).

104
Dr. W. Edward Deming.

105
History of The Quality Movement.
 (SPC) & (PST) were very effective in
gaining the necessary momentum to
change the mentality of organizations
needing to produce high quality products
and services.
 Deming developed his (14 points) to
communicate to managers how to
increase quality within an organization.

106
History of The Quality Movement.
 Deming believed that (85 percent) of all quality
problems were the fault of management.
 In order to improve, management had to take
the lead and put in place the necessary
resources and systems.
 For example, consistent quality in incoming
materials could not be expected when
purchasers (buyers) were not given the
necessary tools to understand quality
requirements of those products and services.

107
History of The Quality Movement.
 Purchasers (buyers) needed to fully understand
how to assess the quality of all incoming
products and services, understand the quality
requirements, as well as be able to
communicate these requirements to vendors.
 In a well managed quality system, purchasers
(buyers) should also be allowed to work closely
with vendors and help them meet or exceed the
required quality requirements.

108
History of The Quality Movement.
 According to Deming, there were two
different concepts of improvement
process that quality systems needed to
address:

 1- Common (systematic) causes of errors.

 2- Special (individual) causes of errors.

109
History of The Quality Movement.
1- Systematic causes are shared by
numerous personnel, machines, or
products.
 Systematic causes of error include:
- Poor product / service design
- Materials are not suited for their use.
- Improper bills of lading.
- Poor physical conditions.

110
History of The Quality Movement.
2- Special causes are associated with
an individual employees or
equipment.
 Special causes of error include:
- lack of skills
- Lack of training.
- Poor lot of incoming materials.
- An equipment out of order.
111
- Edwards Deming.
- Common Causes of Errors.
- Special Causes of Errors.

112
History of The Quality Movement.
 Another influential individual in the
development of quality control was
Joseph M. Juran, who, like Deming, was
working in Japanese organizations
focusing on improving quality.
 Juran also established the Juran Institute
in 1979; its goals and objectives were
centered on helping organizations
improve the quality of their products and
services.
113
Dr. Joseph M. Juran.

114
History of The Quality Movement.
 Juran defined quality as “fitness for use”
meaning that the users of products or
services should be able to rely on that
product or service with (100 percent) all
the time without any worry of defects.
 If this was true, the product could be
classified as fit for use (Qualified).

115
History of The Quality Movement.
 Quality of design could be described as
what distinguishes a Yugo from a
Mercedes-Benz and involves the design
concept and specifications.
 The quality of a product or service is only
as good as its design and specifications
(intention).

116
History of The Quality Movement.
 Thus, it is important to include quality
issues in the design process, as well as to
have in mind during the design phase …
 The difficulties one might have in
replicating the product or service with the
intended quality level.

117
History of The Quality Movement.
 Quality of conformance is reflected in the
ability to replicate each aspect of a
product or service with the same quality
level as that intended in the design.
 This responsibility is held by individuals
to develop the processes for replication,
the workforce and their training,
supervision, and adherence to test
programs.

118
History of The Quality Movement.
 Availabilityrefers to freedom from
disruptive problems throughout the
process and is measured by the frequency
or probability of defects.
 For example, if a process does not have a
steady flow of electricity and this causes
defective parts, or when an employee
must complete two jobs at once and is
therefore forced to make concessions on
the quality of both products or services.
119
History of The Quality Movement.
 Safety is described by Juran as
calculating the risk of injury due to
product hazards.
 For example, even if the product or
service meets or exceeds all quality
standards and expectations, but there is a
possibility that if it is not used properly it
could injure someone, the product will not
be considered high-quality.
 For example auto switched-off heater.
120
History of The Quality Movement.
 Field Service use refers to the ability
of the product to reach the end user
(consumer) with the desired level of
quality.
 This involves packaging,
transportation, storage and field
service competence, and
promptness.

121
History of The Quality Movement.
 Juran also developed a
comprehensive approach to quality
that spanned a product or service’s
entire life cycle.
 From design to customer relations
and all the steps in between.

122
History of The Quality Movement.
 Juran preached that an organization
should dissect all processes and
procedures from a quality
perspective and analyze for a “fitness
for use.”
 Once this is completed, the
organization can begin to make
changes based on the “fitness for
use” model.
123
- Joseph M. Juran. - Fitness for use.
- Design & Specifications. - Ability to Replicate.
- Availability. - Safety.
-Field Service. - Fitness for use Model.

124
The Rationale Behind TQM.
 Why TQM ?

 Ithas become a question of survival


in the intense competitive
environment.
 Increasing customer consciousness
all over the world.

125
The Rationale Behind TQM.
 Why TQM ?

 The Need for earning profit instead of


making profit.
 Crucial role played by organizational
issues, such as leadership, human
resource, revolution in IT, etc. ,in
quality management.
126
Definition.
 Definitions:

 Total = Made up of the whole.


 Quality = Degree of excellence of
provided product or service.
 Management = The act, the art, or the
manner of handling, controlling,
directing, counseling, etc.
127
Difinition.
 Definition of TQM:

 SoThat, Total Quality Management is


the art of managing the whole
process to achieve excellence.

128
Difinition.
 Other Definitions:
 “TQM is the management approach
of an organization, centered on
quality, based on the participation of
all its members and aiming at long-
term success through customer
satisfaction, and benefits to all
members of the organization and to
society”
129
Elements of TQM.

130
TQM.
Managing the entire organization so that it excels in all dimensions of
products and services that are important to the customer.

1- Philosophical 3- Tools of the


2- Generic tools.
element. department.

131
TQM.
1- Philosophical element.

 Customer-driven Quality.
 Leadership.
 Continuous improvement.
 Employee participation.
 Quick response.
 Design quality.

132
TQM.
2- Generic tools.

 SPC tools:
- Process flow charts.
- Check sheets.
- Pareto analysis & Histogram.
- Cause, Effect & and prevention.
- Management by fact.
- Partnership development.

133
TQM.
3- Tools of the department.

 1- SQC methods:
- Sampling plans.
- Process capability.
- Taguchi methods.

134
TQM.
Tools of the department.

 2- Benchmarking:
- P
- T

135
TQM.
Tools of the department.

 3- Total preventive maintenance Diagrams:


- Run charts.
- Scatter diagrams.
- Control charts.

136
TQM.
Tools of the department.

 4- Quality function deployment:


- R
- S
- C

137
TQM.
Tools of the department.

 5- New seven management tools :


- Affinity diagram.
- Relationship diagram.
- Tree diagram.
- Matrix diagram.
- Arrow diagram.
- PDPC.
- Matrix data analysis diagram.
138
TQM.
Tools of the department.

 6-Failure mode and effect analysis :


- R
- S
- C

139
The Seven Tools of Quality.

ISHIKAWA (Q-7).

140
Seven Tools of Quality (Q-7).
Professor Ishikawa proposed seven
elemental (Q-7) tools based on
statistical techniques.

The seven basic tools are used to


facilitate successful accomplishment
of quality improvement objectives.
141
Seven Tools of Quality (Q-7).
 The Seven tools of Quality are:
1- Check sheets.

2- Histograms.

3- Cause and Effect diagrams.

4- Pareto diagrams.

5- Stratification analysis.

6- Scatter diagrams.

7- Control charts.
142
1- Check Sheets.

Data-Collection Sheets.

143

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