TOPIC 4: TQM (MEM605)

TQM – The Implementation

(Part 2)

Prepared By: Dr Shahriman Adenan

Revised by: Ir Dr Noriah Yusoff

09/06/2020
1
 TOPIC 4: CONTENT
The content of this topic includes:
1. Deming Cycle, continuous improvement,
employee empowerment, benchmarking,
JIT and Taguchi Concept
2. Implementation Strategy: Hoshin Kanri
3. Common Implementation Mistakes

09/06/2020

2
 Taguchi Techniques
• Experimental design methods to improve
product & process design
– Identify key component & process variables
affecting product variation
• Taguchi Concepts
– Quality robustness
– Quality loss function
– Target specifications
 Quality Robustness
• Ability to produce
products uniformly
regardless of
manufacturing
conditions
• Put robustness in House
of Quality matrices
besides functionality
 Taguchi Methods
• Taguchi methods are statistical methods
developed by Genichi Taguchi to improve the
quality of manufactured goods, and more
recently also applied to, engineering,
biotechnology, marketing and advertising.
• Professional statisticians have welcomed the
goals and improvements brought about by
Taguchi methods, particularly by Taguchi's
development of designs for studying variation,
but have criticized the inefficiency of some of
Taguchi's proposals
 Taguchi Methods…
Taguchi's work includes three principal
contributions to statistics:
1. Taguchi loss function; - a way to show how
each non-perfect part produced, results in a
loss for the company
2. The philosophy of off-line quality control;
3. Innovations in the design of experiments
(DOE)
The Fundamental of Taguchi Concepts
1. The definition of quality given by the Taguchi
methodology is customer orientated.
2. Taguchi defines quality in a negative manner:
"Quality is the loss imparted to society from
the time the product is shipped.
3. This "loss" would include the cost of
customer dissatisfaction that leads to the loss
of company reputation.
The Fundamental of Taguchi Concepts
4. This differs greatly from the traditional
producer-orientated definition which
includes the cost of re-work, scrap, warranty
and services costs as measures of quality.
5. The customer is the most important part of
the process line, as quality products and
services ensure the future return of the
customer and hence improves reputation
and increased market share.
 Taguchi’s concept
In general, there are four quality concepts
devised by Taguchi :
1. Quality should be designed into the product
from the start, not by inspection and
screening.
2. Quality is best achieved by minimising the
deviation from the target, not a failure to
confirm to specifications.
 Taguchi’s concept…
3. Quality should not be based on the
performance, features or characteristics of
the product.
4. The cost of quality should be measured as a
function of product performance variation
and the losses measured system- wide
 Purpose
A technique for the optimisation of products
or processes, Taguchi involves a two-stage
experimental design that gives the benefits of
robustness and efficiency with the minimum
number of experiments.
 When to use?
• During design, commissioning or
postcommissioning when seeking the
optimum operating characteristics of a
product or process.
 Benefits
• Taguchi methods give a fast and pragmatic
approach to the optimisation of products and
processes.
• They can also be used for tolerance design:
the setting of the statistically based
tolerances, allowing either improved
performance through tighter tolerances or
cheaper designs in non-critical areas; and for
fast type approval testing
 Policy Deployment
(Hoshin Kanri)
• Top management vision leading to long-term
objectives
• Deployment through annual objectives and
action plans
• Negotiation for short-term objectives and
resources
• Periodic reviews
• https://youtu.be/j8r3_qNxNNc
 HOSHIN KANRI
Hoshin kanri is a
method devised to
capture and cement
strategic goals as well
as flashes of insight
about the future and
develop the means
to bring these into
reality.
 HOSHIN KANRI…
• Also called Policy Deployment or Hoshin Planning, it
is a Strategic planning/Strategic management
methodology, based on a concept popularised in
Japan by Professor Kaoru Ishikawa in the late 1950s
• He said that each person is the expert in his or her
own job and Japanese TQC (Total Quality Control) is
designed to use the collective thinking power of all
employees to make their organisation the best in its
field
 HOSHIN KANRI…
Purpose
• To delight the customer through the
manufacturing and servicing process by
implementing the quality goals of the
organisation
 HOSHIN KANRI…
The planning process steps:
1. identification of critical 5. definition of sub-goals or
business issues that the tactics that support each
organization faces; strategy;
2. establishment of business 6. establishment of metrics
objectives to address or indicators for measuring
these issues; process performance; and
3. definition of the 7. establishment of business
company's over-all goals; fundamental measures.
4. development of strategies
that support the over-all
goals;
HOSHIN KANRI…
 HOSHIN KANRI…
Benefits
• It shows the employee what the overall goals
of the organisation are and where he/she fits
in so that everybody pulls in the same
direction towards clearly defined goals
 IMPLEMENTING A TQ STRATEGY
A TQ strategy has several elements;
• Customer focused vision
• Concept of the voice of the customer
• Way of learning from outstanding companies
• Expression of caring for employees
• Means of removing barriers to achieving
quality
• Measurement plan
Roles in implementing Quality Strategy:

Senior Management

Middle Management

Workforce
 Roles in implementing Quality Strategy:

Senior Management
• Senior Managers must ensure that the
organisation is focusing on the needs of the
customers
• Senior Managers promote the vision, mission and
values of the organisation
• Senior Managers identify the processes that need
improvement
• Senior Managers must review progress
 Roles in implementing Quality Strategy:

Middle management
• Middle Managers must improve the operational
processes that are the foundation of the cust
• Middle Managers must yield the spirit of
teamwork
• Middle Managers must implement continuous
improvement process
• Middle Managers must identify and develop
future leaders of the organisation omer
satisfaction
Roles in implementing Quality Strategy:

Workforce
• The Workforce must develop ownership of the
quality improvement process
• The Workforce must be trained in
communication and problem-solving skills
• Management must work with Unions
• Management and Unions must have equal
representation
COMMON IMPLEMENTATION MISTAKES

• TQM is regarded as a program

• The process is not driven by a focus on the
customer
• Structural elements in the organisation such
as compensation systems and
functionalisation blocked change
• Goals are set too low
• The organisation is too successful and
complacent
COMMON IMPLEMENTATION MISTAKES…

• Training is not properly addressed

• The focus is on products not on processes
• little empowerment is given and what is given
is not supported in actions
• Senior management is not personally and
visibly committed and actively participating
 TQM DEPLOYMENT MISTAKES -AND HOW TO
AVOID THEM
• There are five problems in TQM deployments,
which, if not handled well, will derail a
deployment effort.
• By recognizing these mistakes and working to
avoid them, a team can stay on track
 Problem #1: Leadership Indifference
• Support and • Support should be
commitment for a TQM forthcoming not only
deployment from the from senior leadership,
leadership of an but also from
organization is the key leadership at all levels
driver for success. in the organization.
• Leadership must walk • No amount of good
the talk and intentions, resources,
continuously emphasize effort or time will make
the importance of TQM up for missing sustained
at all forums. leadership support.
 Problem #2: Faulty Deployment Strategy

• A deployment strategy • Lack of alignment may

helps to align cause confusion among
organizational business the key stakeholders
goals to expected and associates about
deployment results and the value of the entire
to maintain the effort; this gap delays
sustenance of TQM in deployment in many
the organization. organizations.
Problem #3: Stress on Training and Certification

• Training and certification • But sometimes teams are

are important aspects of
an overall TQM
deployment effort
because they build
competency within the • Without adequate
organization.
more focused on training
and certification goals,
and fail to support project
execution.
mentoring and coaching
support after their initial
training, Belts may select
projects simply to meet
the certification targets or
projects may be
inordinately delayed.
 Problem #4: Incorrect Project Selection

• A lack of focus on • This results in delayed

project selection and or scrapped projects,
prioritization can lead and quick
to projects that lack disillusionment among
data or business focus the Green Belts and
or projects focused on Black Belts.
process areas that are
outside the Green Belts‘
and Black Belts‘ realm
of control.
 Problem #5: Segregating the Effort

• Every individual • Yet sometimes

member of an deployment teams fail
organization has a stake to communicate the
in its growth and benefits of the TQM
progress; therefore, deployment to the key
each is responsible for stakeholders.
contributing to and • Often only the
facilitating a successful deployment team will
deployment. make formal goals
relating to TQM results.
 STRATEGIES FOR SUCCESS

• Successful companies have sharp focus on

quality through planning
• Top management is heavily involved
• Customer focus is integrated across functions
• Employee participation is high
 INTERNATIONAL QUALITY STUDY

• A large percentage of businesses in the US do

not evaluate quality at all or do so less than
once each year, compared to Japanese
businesses
• More emphasis is placed on incorporating
consumer research in new product and service
design in Japan than in the US
• Japanese companies has the highest rate of
employee participation regarding quality
 SUMMARY
• Successful implementation of TQ based
strategies depends on the commitment and
involvement of all employees: senior
management, middle management and the
workforce including union leadership
• Today‘s managers must constantly improve
their approaches to meet competitive
challenges
The END