Total Quality Management

Donald E.
Stout, Jr 7/12/2020
Total Quality
Management
Total Quality Management
and Continuous Improvement
Dr. Abdul Shakoor
Quality Basics 1
Donald E. Stout, Jr 7/12/2020
Quality Basics 2
Quality Basics 3
Adherence To standard
Quality Basics 4
Why TQM?
Ford Motor Company had operating losses
of $3.3 billion between 1980 and 1982.
Xerox market share dropped from 93% in
1971 to 40% in 1981.
Attention to quality was seen as a way to
combat the competition.
Quality Basics 5
TQM: A “Buzzword” Losing

Popularity
 For many companies, the term TQM is
associated with corporate programs (mid
1980s ~ early 1990s) aimed at implementing
employee teams and statistical process
control.
 Unfortunately, many companies were
dissatisfied with the perceived results of these
programs, concluding TQM does not work.
Question: Why were they dissatisfied?

Were they justified?
TQM
 Total - made up of the whole
 Quality - degree of excellence a product
or service provides
 Management - act, art or manner of
planning, controlling, directing,….
Therefore, TQM is the art of managing

the whole to achieve excellence.
Quality Basics 6
What does TQM mean?

Total Quality Management means that
the organization's culture is defined and
supports the constant attainment of
customer satisfaction through an
integrated system of tools, techniques,
and training. This involves the
continuous improvement of
organizational processes, resulting in
high quality products and services.
What’s the goal of TQM?
“Do the right things right the first

time, every time.”
Quality Basics 7
Another way to put it

 At it‟s simplest, TQM is all managers
leading and facilitating all contributors in
everyone‟s two main objectives:
(1) total client satisfaction through
quality products and services; and
(2) continuous improvements to
processes, systems, people, suppliers,
partners, products, and services.
Productivity and TQM

 Traditional view:
• Quality cannot be improved without
significant losses in productivity.
 TQM view:
• Improved quality leads to improved
productivity.
Quality Basics 8
Basic Tenets of TQM

 1. The customer makes the ultimate
determination of quality.
 2. Top management must provide leadership
and support for all quality initiatives.
 3. Preventing variability is the key to
producing high quality.
 4. Quality goals are a moving target, thereby
requiring a commitment toward continuous
improvement.
 5. Improving quality requires the
establishment of effective metrics. We must
speak with data and facts not just opinions.
TQM Six Basic Concepts

 Management commitment to TQM principles and
methods and long term quality plans for the
organization
 Focus on Customers—internal & external
 Quality at all levels of the workforce
 Continuous improvement of the production/business
process
 Treating suppliers as partners
 Establish performance measures for the processes
Quality Basics 9
The three aspects of TQM

Tools, techniques, and training in
Counting their use for analyzing,
understanding, and solving quality
problems
Customers Quality for the customer as a

driving force and central concern.
Culture Shared values and beliefs,

expressed by leaders, that define
and support quality.

and Continuous Improvement
 TQM is the management process used to
make continuous improvements to all
functions.
 TQM represents an ongoing, continuous
commitment to improvement.
 The foundation of total quality is a
management philosophy that supports
meeting customer requirements through
continuous improvement.
Quality Basics 10
Continuous Improvement versus

Traditional Approach
Traditional Approach Continuous Improvement
 Market-share focus  Customer focus

 Individuals  Cross-functional teams
 Focus on „who” and “why”  Focus on “what” and “how”
 Short-term focus  Long-term focus
 Status quo focus  Continuous improvement
 Product focus  Process improvement
 Innovation focus
 Fire fighting  Incremental improvements
 Problem solving
Quality Throughout
 “A Customer‟s impression of quality begins
with the initial contact with the company and
continues through the life of the product.”
• Customers look to the total package - sales,
service during the sale, packaging, deliver, and
service after the sale.
• Quality extends to how the receptionist answers
the phone, how managers treat subordinates, how
courteous sales and repair people are, and how
the product is serviced after the sale.
 “All departments of the company must strive to
improve the quality of their operations.”
Quality Basics 11
Historical Evolution of Total Quality

Management
FOUR LEVELS IN EVOLUTION OF TQM
Value-based Approach
 Manufacturing  Service Dimensions
Dimensions • Reliability
• Performance • Responsiveness
• Features • Assurance
• Reliability • Empathy
• Conformance • Tangibles
• Durability
• Serviceability
• Aesthetics
• Perceived quality
Quality Basics 12
The TQM System

Objective Continuous
Improvement
Principles Customer Process Total

Focus Improvement Involvement
Leadership
Elements Education and Training Supportive structure
Communications Reward and recognition
Measurement
Obstacles to TQM Implementation

o Lack of Management Commitment
o Inability to Change Organizational Culture
o Improper Planning
o Lack of Continuous Training and Education
o Incompatible Organizational Structure and
Isolated Individuals and Departments

3-26
Quality Basics 13
Obstacles to TQM Implementation

o Ineffective Measurement Techniques and Lack of
Access to Data and Results
o Paying Inadequate Attention to Internal and External
Customers
o Inadequate Use of Empowerment and Teamwork
o Failure to Improve Continually
3-27
Quality Tools
Quality Improvement: Problem Solving
Quality Basics 14
Quality Basics 15
Quality Control Tools

• Pareto chart
• Histogram
• Process flow diagram
• Check sheet
• Scatter diagram
• Control chart
• Run chart
• Cause and effect diagram
Quality Basics 16
Pareto Principle
 Vilfredo Pareto (1848-1923) Italian
economist
• 20% of the population has 80% of the
wealth
 Juran used the term “vital few, trivial
many”. He noted that 20% of the quality
problems caused 80% of the dollar loss.
7 Quality Tools
Pareto chart
30 28
% Complaints
25
20
16
15
12 12
10
6
5 4 3
0
Loose Stitching Button Material
Threads flaws problems flaws
7 Quality Tools
Quality Basics 17
70
(64)
60
Pareto
Percent from each cause

Chart
50
40
30
20
(13)
(10)
10 (6)
(3) (2) (2)
0
Causes of poor quality

Histogram
25
20
Frequency
15
10
Category
7 Quality Tools
Quality Basics 18
Histogram
40
35
30
25
20
15
10
5
0 1 2 6 13 10 16 19 17 12 16 20 17 13 5 6 2 1
Flowcharts
 Flowcharts
• Graphical description of how work is done.
• Used to describe processes that are to be
improved.
7 Quality Tools
Quality Basics 19
Flow Diagrams
" Draw a flowchart for whatever you do.
Until you do, you do not know what you
are doing, you just have a job.”
-- Dr. W. Edwards Deming.
Flowchart
Activity
Yes
Decision
No
7 Quality Tools
Quality Basics 20
Flowchart
Flow Diagrams
Quality Basics 21
Flow Diagrams
Process Chart Symbols

Operations
Inspection
Transportation
Delay
Storage
Quality Basics 22
Process Chart
Date: 9-30-00 Location: Graves Mountain
Analyst: TLR Process: Apple Sauce
Distance
Operation
Transport
Description
Storage
Inspect
(min)
Time
(feet)
Delay
Step
of
process
1 Unload apples from truck 20

2 Move to inspection station 100 ft
3 Weigh, inspect, sort 30
4 Move to storage 50 ft
5 Wait until needed 360
6 Move to peeler 20 ft
7 Apples peeled and cored 15
8 Soak in water until needed 20
9 Place in conveyor 5
10 Move to mixing area 20 ft
11 Weigh, inspect, sort 30
Page 1 0f 3 Total 480 190 ft
Quality Basics 23
Check Sheet
Shifts
   

Defect Type
 
 
 
7 Quality Tools
Check Sheet
COMPONENTS REPLACED BY LAB
TIME PERIOD: 22 Feb to 27 Feb 1998
REPAIR TECHNICIAN: Bob
TV SET MODEL 1013

Integrated Circuits ||||
Capacitors |||| |||| |||| |||| |||| ||
Resistors ||
Transformers ||||
Commands
CRT |
Quality Basics 24
Cause-and-Effect Diagrams
 Show the relationships between a
problem and its possible causes.
 Developed by Kaoru Ishikawa (1953)
 Also known as …
• Fishbone diagrams
• Ishikawa diagrams
7 Quality Tools
Cause and Effect

“Skeleton”
Materials Procedures
Quality
Problem
People Equipment
7 Quality Tools
Quality Basics 25
Fishbone Diagram
Measurement Human Machines
Faulty testing equipment Poor supervision Out of adjustment
Incorrect specifications Lack of concentration Tooling problems
Improper methods Inadequate training Old / worn
Quality
Inaccurate Problem
temperature Poor process
control Defective from vendor
design
Ineffective quality
Not to specifications management
Dust and
Dirt Material- Deficiencies
handling problems in product
design
Environment Materials Process
Cause and effect diagrams

 Advantages
• making the diagram is educational in itself
• diagram demonstrates knowledge of
problem solving team
• diagram results in active searches for
causes
• diagram is a guide for data collection
Quality Basics 26
Cause and effect diagrams

To construct the skeleton, remember:
 For manufacturing - the 4 M‟s
 man, method, machine, material

 For service applications
 equipment, policies, procedures, people
Scatter Diagram
Quality Basics 27
Run Charts
 Run Charts (time series plot)
• Examine the behavior of a variable over
time.
• Basis for Control Charts
Control Chart 27
24
UCL = 23.35
21
Number of defects
18 c = 12.67
15
12
6
LCL = 1.99
3
2 4 6 8 10 12 14 16
Sample number
Quality Basics 28
Control Charts
Quality Basics 29

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Donald E.

Dr. Abdul Shakoor