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Total Quality Management

R. M. K. Engineering College

July 2011

Quality
• It is the degree to which a set of inherent characteristics fulfills the requirements. – Degree means that quality can be used with adjectives like poor, good, and excellent. – Inherent is defined as existing in something, especially as a permanent characteristics. – Characteristics can be quantitative or qualitative – Requirement is a need or expectation that is stated; generally implied by the organization, its customers, and other interested parties. Or obligatory. • Quality can be quantified as Q = P / E – where Q = Quality, – P = Performance and – E = Expectation

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Total Quality Management
• TQM is an enhancement to the traditional way of doing business. It is a proven technique to guarantee survival in world class competition. Only by changing the actions of management will the culture and actions of an entire organization be transformed. – Total : Made up of the whole – Quality : Degree of excellence a product or service provides – Management : Act, art or manner of handling , controlling ,directing etc. • So TQM is the art of managing the whole to achieve excellence. It is both a philosophy and a set of guiding principles that represent the foundation of continuously improving the organization. It is the application of quantitative methods and human resources to improve all the processes within the organization and exceed customer needs now and in the near future. • TQM integrates fundamental management techniques, existing improvement efforts, and technical tools under a disciplined approach.

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Basic concepts of TQM
• A committed and involved management to provide long term top-to-bottom organizational support : LEADERSHIP • An unwavering focus on the customer, both internally and externally : CUSTOMER SATISFACTION

• Effective involvement and utilization of the entire work force : EMPLOYEE INVOLVEMENT
• Continuous improvement of the business and production process : CONTINUOUS PROCESS IMPROVEMENT • Treating suppliers as partners : SUPPLIER PARTNERSHIP • Establish performance measures for the processes : PERFORMANCE MEASURES

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and mentor -4- . assign. partnership • Managers Role > Plan.New and Old Cultures • Quality Element > Previous State > TQM • Definition > Product oriented > Customer oriented • Priorities > Second to service and cost > First among equals of service and cost • Decisions > Short term > Long term • Emphasize > Detection > Prevention • Errors > Operations > System • Responsibility > Quality Control > Everyone • Problem solving > Managers > Teams • Procurement > Price > Life cycle costs . coach. facilitate. control and enforce > Delegate .

PDSA Cycle -5- .D.Gurus of TQM • Walter A. Shewart Ph. : Control Chart Theory.

Gurus of TQM • W.D. productivity and competitive position -6- . Edwards Deming Ph.: 14 points of theory of management to improve quality.

Gurus of TQM • Joseph M. Juran Ph.D. : Juran Trology -7- .

Gurus of TQM • Armand V. : Author of Total Quality Control -8- .D. Feigenbaum Ph.

Gurus of TQM • Kaoru Ishikawa Ph. Fishbone / Ishikawa diagram for analysing cause and effect -9- . : Author of Quality is Free and Quality Without Tears .D.

D. : Taguchi philosophy .10 - .Gurus of TQM • Genichi Taguchi Ph.

TQM Framework • Gurus – Principles and Practices – Tools and techniques – Product or Service realization » Customer .11 - .

includes repair • Service : Resolution of problems and complaints. such as exterior finish • Reputation : Past performance and other intangibles . added features. workmanship • Reliability : Consistency of performance over time. average time for the unit to fail • Durability : Useful life. such as being ranked first • Adapted from : David A.12 - . ease of repair • Response : Human-to-human interface.Dimensions of Quality • Performance : Primary product characteristics. such as remote control • Conformance : Meeting specifications or industry standards . Managing Quality : The Strategic and Competitive Edge (New York : Free Press : 1988) . such as the courtesy of the dealer • Aesthetics : Sensory characteristics. Garvin. such as brightness of the picture • Features : Secondary characteristics .

13 - .Quality Costs • Cost of Quality (COQ) : – Cost of prevention – Cost of appraisal – Cost of internal failure – Cost of external failure • Analysis techniques for quality costs – Trend analysis – Pareto analysis .

14 - .Obstacles / Barriers to implementing TQM • Lack of management commitment • Inability to change organizational culture • Improper planning • Lack of continuous training and education • Incomplete organizational structure and isolated individuals and departments • Ineffective measurement techniques and lack of access to data and results • Paying inadequate attention to internal and external customers • Inadequate use of empowerment and teamwork • Failure to continually improve .

Deming Prize • The Deming prize. The awards ceremony is broadcast every year in Japan on national television. was originally designed to reward Japanese companies for major advances in quality improvement. Edwards Deming. albeit usually operating in Japan. Over the years it has grown. under the guidance of Japanese Union of Scientists and Engineers (JUSE) to where it is now also available to non-Japanese companies. . the Deming Prize for Individuals and the Deming Application Prize. established in December 1950 in honor of W.15 - . • Two categories of awards are made annually. and also to individuals recognized as having made major contributions to the advancement of quality.

education. Up to 18 awards may be given annually across six eligibility categories— manufacturing. health care. and nonprofit sectors for performance excellence. 91 organizations had received the award.S. small business.16 - . Department of Commerce. organizations in the business.S. an agency of the U. education. and nonprofit.Malcolm Baldrige National Quality Award • The Malcolm Baldrige National Quality Award recognizes U.S. The Baldrige Award is the only formal recognition of the performance excellence of both public and private U. As of 2010. organizations given by the President of the United States. which is based at and managed by the National Institute of Standards and Technology. It is administered by the Baldrige Performance Excellence Program. health care. . service.

It is applicable at all levels in an organization. job and in all functional areas like marketing.17 - . department.Quality Planning • The road map consists of structured and sequential steps • Output of each preceding activity or step becomes the input for the next step and so on • This quality planning road map is applicable to all industries in both the manufacturing and service sectors.production / operations and human resources (HR) • The quality planning road map can be applied at the following levels – Supervisory and worker level – Functional level – Multifunctional systems and – Major programs . division. such as corporate. finance.

Large number of jobs require quality planning as well as re-planning as the job may be dynamic.18 - . • The concepts and tools which are used for quality planning at this stage are – Self control concept – Triple role concept . In some cases the employees themselves are training to plan their jobs.Supervisory and Worker Levels • Each employee is assigned a job .

if the failure to meet the objectives results • The triple role concept • It stresses that each employee holding a job should be able to carry out the following 3 roles – As a customer (getting inputs from suppliers) – As a processor – As a supplier (Creating products to customers) .19 - . Inorder to achieve self control.• Self control concept • The self control concept emphasizes that the person should have full control as well as mastery over the attainment of planned results of the assigned job. a person should be provided with – Knowledge of what he is supposed to do – Knowledge of what others are doing and – Means for regulating either of the above two.

20 - .Leadership is the capacity to turn vision to reality .

but where they stand in terms of challenge and controversy.21 - . .The ultimate measure of leaders is not where you stand in moments of comfort and conveniences.

Dr. Deming preached that to achieve the highest level of performance requires more than a good philosophy – the organization must change its behavior and adopt new ways of doing business. .22 - . W. Dr. Edwards Deming: (1900-1993) is considered to be the Father of Modern Quality. Edward Deming • Dr.

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along with price. depend on meaningful measures of quality. . stay in business and provide jobs. Instead. instead. require. We are in a new economic age.• Point 1: Create constancy of purpose toward improvement of the product and service so as to become competitive. • Point 3: Cease dependence on mass inspection. statistical evidence that quality is built in. • Point 5: Find the problems. There should be continual reduction of waste and continual improvement of quality in every activity so as to yield a continual rise in productivity and a decrease in costs. mistake. defective material and defective workmanship. constantly improve the system of production and service. End the practice of awarding business on the basis of a price alone. • Point 4: Improve the quality of incoming materials. • Point 2: Adopt the new philosophy. We no longer need live with commonly accepted levels of delay.24 - .

Modern methods of on-the-job training use control charts to determine whether a worker has been properly trained and is able to perform the job correctly. • Point 7: Institute modern methods of supervision. Statistical methods must be used to discover when training is complete. . Management must prepare to take immediate action on response from supervisors concerning problems such as inherited defects.25 - . poor tools or fuzzy operational definitions.• Point 6: Institute modern methods of training and education for all. The emphasis of production supervisors must be to help people to do a better job. lack of maintenance of machines. Improvement of quality will automatically improve productivity.

workers can also fear the effects of change on their jobs. design. • Point 10: Eliminate the use of slogans. administration and production must work in teams to tackle problems that may be encountered with products or service. People in different areas such as research. Such exhortations only create adversarial relationships. fear of the fact that it may be necessary to learn a better way of working and fear that their positions might be usurped frequently affect middle and higher management. whilst on the shop-floor.26 - . • Point 9: Break down barriers between departments and staff areas. sales. demanding zero defects and new levels of productivity without providing methods. . and to belong to it. posters and exhortations for the workforce. • Fear can often be found at all levels in an organization: fear of change.• Point 8 : Fear is a barrier to improvement so drive out fear by encouraging effective two-way communication and other mechanisms that will enable everybody to be part of change.

abolition of the annual merit rating (appraisal of performance) and of management by objectives. and encourage self-improvement for everyone. This implies. and people in management.27 - . it needs people that are improving with education. Substitute aids and helpful leadership. • Point 13: Institute a vigorous program of education. • Point 12: Remove the barriers that rob hourly workers. . • Point 14: Top management's permanent commitment to ever-improving quality and productivity must be clearly defined and a management structure created that will continuously take action to follow the preceding 13 points.• Point 11: Eliminate work standards that prescribe numerical quotas for the workforce and numerical goals for people in management. of their right to pride of workmanship. What an organization needs is not just good people.

28 - . manufacturing etc – Coordinator or consultant • Duties – To establish the corer values and quality statements – To establish the strategic long term plan with goals and the annual quality improvements program with objectives – To plan the training and education programs – To determine and monitor the cost of poor quality – To perform and monitor the performance measures for each functional areas of the organization – To establish multifunctional project and departmental teams and monitor their progress – To establish / revise the recognition and reward system periodically .Quality Council • Quality Council is a team to provide overall direction for achieving the total quality culture • Composition : – Chief Executive Officer (CEO) – Senior Managers of the functional areas eg design.

What is strategy ? Literal meaning • The science and art of using all the forces of a nation to execute approved plans as effectively as possible during peace or war. • The art or skill of using stratagems in endeavors such as politics and business .29 - . The science and art of military command as applied to the overall planning and conduct of large-scale combat operations. • A plan of action resulting from strategy or intended to accomplish a specific goal.

This is especially reflected in vision. it becomes the central issue in strategic planning. • An essential idea behind strategic quality planning is that the product is customer value rather than a physical product or service. mission and policy guidelines of an organization.What is the relation of Strategic Planning and Total Quality Management? • When an organization chooses to make quality a major competitive edge (differentiation). .30 - . This feat cannot be achieved unless an organization creates a culture of quality and no strategy and plan can be worthwhile unless it is carefully implemented.

31 - .Seven steps to Quality Planning • Discover customer needs • Customer positioning • Predict the future • Gap analysis • Closing the gap • Alignment • Implementation .

32 - . Closing the Gap: The plan can now be developed to close the gap by establishing goals and responsibilities. vision. designing changes. Predict the future: Next planners must look into their crystal balls to predict the future conditions that will affect their product or service. Who will they be? Will your customer base change? What will they want? How will they want? How will the organization meet and exceed expectations? • 2. . • 3. Alignment: As the plan is developed. Do they want to retain. the planners determine where organization wants to be in relation to the customers. All stakeholders should be included in the development of the plan. Gap Analysis : This step requires the planner to identify the gaps between the current state and the future state of the organization. • 6. and overcoming resistance to change. The planning group should meet at least once a year to assess progress and take any corrective action. Resources must be allocated to collecting data. Without this alignment. reduce. Demographics.• 1. and core values and concepts of the organization. Implementation: This last step is frequently the most difficult. and technical assessments or projections are tools that help predict the future. Customer Needs: The first step is to discover the future needs of the customers. The organization’s needs to concentrate its efforts on areas of excellence. • 5. Also part of this step is the monitoring activity to ensure that progress is being made. the plan will have little chance of success. Customer Positioning: Next. An analysis of the core values and concepts is an excellent technique for pinpointing gaps. Product or services with poor quality performance should be targeted for breakthrough or eliminated. • 7. or expand the customer base. it must be aligned with the mission. 4. economics forecasts.

Quality Statements • Quality statements are part of strategic planning process and once developed. Quality policy statement • The utilization of these statements varies from organization to organization. Vision statement 2.33 - . • There are three types of quality statements: 1. are occasionally reviewed and updated. Small organization may use only the quality policy statement . Mission statement 3.

and become deeply shared within the organization. on the other hand. • Successful visions are timeless. describes how the future will look if the organization achieves its mission. and Polaroid’s instant photography . inspirational. A vision statement.34 - .Vision Statement • The vision statement is a short declaration what an organization aspires to be tomorrow. such as: – – – – IBM’s Service Apple’s Computing for the masses Disney theme park’s the happiest place on the earth.

and suppliers. and describes the function of the organization. Our mission is to improve continually our products and services to meet our customers’ needs. easy to understand.Mission Statement • A mission statement concerns what an organization is all about. the owners of our business. This statement is usually one paragraph or less in length. . customers.35 - . allowing us to prosper as a business and to provide a reasonable return on to our shareholders. and financial services. It provides clear statement of purpose for employees. communications. • An example of mission statement is: – Ford Motor Company is a worldwide leader in automatic and automotive related products and services as well as the newer industries such as aerospace. The statement answers the questions such as: who we are. what do we do and how do we do it. who are our customers.

It should be written by the CEO with feedback from the workforce and be approved by the quality council.36 - . A quality policy is a requirement of ISO 9000. . • A simple quality policy is: – Xerox is a quality company. Quality is the basic business principle for Xerox.Quality Policy • The quality policy is a guide for everyone in the organization as to how they should provide products and services to the customers. Quality means providing our external and internal customers with innovative products and services that fully satisfy their requirements. Quality is the job of every employee.

37 - .Customer Satisfaction • Customer satisfaction model • Internal and external customers • Customer perception of quality – – – – – – Performance Features Service Warranty Price Reputation .

Customer complaints / Tools used for collecting customer complaints • Comment card • Customer questionnaire • Focus groups • Toll free telephone numbers • Customer visits • Report cards • Internet and computer • Employee feedback .38 - .

Thank You .