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Total Quality

Management

by Adnan khan

© Wiley 2007

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Learning Objectives
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Explain the meaning of TQM Identify the costs of Quality Describe the evolution of TQM Identify Quality leaders and their contributions

© Wiley 2007

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Learning Objectives    Identify key features of the TQM philosophy Describe tools identifying and solving quality problems Describe quality awards and quality certifications © Wiley 2007 3 .

Defining Quality    Definition of quality is dependent on the people defining it There is a lack of a single. universal definition of quality 5 common definitions include      Conformance to specifications Fitness for use Value for price paid Support services Psychological criteria © Wiley 2007 4 .

friendly staff © Wiley 2007 5  Fitness for use   Value for price paid   Support services   Psychological  .Defining Quality – 5 Ways  Conformance to specifications  Does product/service meet targets and tolerances defined by designers? Evaluates performance for intended use Evaluation of usefulness vs. price paid Quality of support after sale e.g.prestige.

performance.Manufacturing Quality vs. waiting time. reliability. consistency © Wiley 2007 6 . Service Quality  Manufacturing quality focuses on tangible product features  Conformance. features  Service organizations produce intangible products that must be experienced  Quality often defined by perceptional factors like courtesy. friendliness. promptness.

Cost of Quality   Quality affects all aspects of the organization Quality has dramatic cost implications of.  Quality control costs   Prevention costs Appraisal costs Internal failure costs External failure costs  Quality failure costs   © Wiley 2007 7 .

Cost of Quality – 4 Categories  Early detection/prevention is less costly  May be less by a factor of 10 © Wiley 2007 8 .

Evolution of TQM – New Focus © Wiley 2007 9 .

Quality Gurus © Wiley 2007 10 .

TQM Philosophy     TQM Focuses on identifying quality problem root causes Encompasses the entire organization Involves the technical as well as people Relies on seven basic concepts of  Customer focus  Continuous improvement  Employee empowerment  Use of quality tools  Product design  Process management  Managing supplier quality © Wiley 2007 11 .

concepts  Focus on Customer   Identify and meet customer needs Stay tuned to changing needs. Benchmarking Empower all employees. fashion styles Continuous learning and problem solving. e.TQM Philosophy . e.g.g. external and internal customers © Wiley 2007 12  Continuous Improvement    Employee Empowerment  .

& implementation tools Studying practices at “best in class” companies  Understanding Quality Tools    Plan-Do-Study-Act © Wiley 2007 13 .TQM Philosophy– Concepts (continued)  Team Approach   Teams formed around processes – 8 to 10 people Meet weekly to analyze and solve problems Ongoing training on analysis. and correction. assessment.

Ways of Improving Quality  Plan-Do-Study-Act Cycle (PDSA)   Also called the Deming Wheel after originator Circular. never ending problem solving process Tools typically taught to problem solving teams Used to translate customer preferences to design  Seven Tools of Quality Control   Quality Function Deployment  © Wiley 2007 14 .

implement new process © Wiley 2007 15 . identify problems Develop an improvement plan. data. performance objectives Implement the plan – trial basis Collect data and evaluate against objectives  Do   Study   Act   Communicate the results from trial If successful.PDSA Details  Plan    Evaluate current process Collect procedures.

PDSA   (continued) Cycle is repeated After act phase. start planning and repeat process © Wiley 2007 16 .

Seven Tools of Quality Control        Cause-and-Effect Diagrams Flowcharts Checklists Control Charts Scatter Diagrams Pareto Analysis Histograms © Wiley 2007 17 .

Cause-and-Effect Diagrams   Called Fishbone Diagram Focused on solving identified quality problem © Wiley 2007 18 .

Flowcharts   Used to document the detailed steps in a process Often the first step in Process Re-Engineering © Wiley 2007 19 .

Checklist  Simple data check-off sheet designed to identify type of quality problems at each work station. per shift. per machine. per operator © Wiley 2007 20 .

Control Charts   Important tool used in Statistical Process Control – Chapter 6 The UCL and LCL are calculated limits used to show when process is in or out of control © Wiley 2007 21 .

Scatter Diagrams   A graph that shows how two variables are related to one another Data can be used in a regression analysis to establish equation for the relationship © Wiley 2007 22 .

g. 80% of the problems caused by 20% of causes    © Wiley 2007 23 .Pareto Analysis  Technique that displays the degree of importance for each element Named after the 19th century Italian economist Often called the 80-20 Rule Principle is that quality problems are the result of only a few problems e.

Histograms  A chart that shows the frequency distribution of observed values of a variable like service time at a bank drive-up window Displays whether the distribution is symmetrical (normal) or skewed  © Wiley 2007 24 .

Quality Function Deployment    Critical to ensure product design meets customer expectations Useful tool for translating customer specifications into technical requirements is Quality Function Deployment (QFD) QFD encompasses       Customer requirements Competitive evaluation Product characteristics Relationship matrix Trade-off matrix Setting Targets © Wiley 2007 25 .Product Design .

Quality Function Deployment (QFD) Details  Process used to ensure that the product meets customer specifications Voice of the engineer Voice of the customer Customer-based benchmarks © Wiley 2007 26 .

Reliability – critical to quality    Reliability is the probability that the product. service or part will function as expected No product is 100% certain to function properly Reliability is a probability function dependent on sub-parts or components © Wiley 2007 27 .