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TOTAL QUALITY

MANAGEMENT

Definitions of Quality

ASQC: Product characteristics & features that affect customer


satisfaction

User-Based: What consumer says it is

Mfg.-Based: Degree to which a product conforms to design


specification

Product-Based: Level of measurable product characteristic

QUALITY PERSPECTIVES
Everyone defines Quality based on their own
perspective of it. Typical responses about the definition
of quality would include:
Perfection
Consistency
Eliminating waste
Speed of delivery
Compliance with policies and procedures
Doing it right the first time
Delighting or pleasing customers
Total customer satisfaction and service

WHY QUALITY?
Reasons for quality becoming a cardinal priority for most
organizations:
Competition Todays 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 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.

THE 3 QUALITY GURUS


Deming: the best known of the early pioneers, is credited

with popularizing quality control in Japan in early 1950s.Today,


he is regarded as a national hero in that country and is the
father of the world famous Deming prize for quality.
Juran: like Deming was invited to Japan in 1954 by the union of

Japanese Scientists. He focuses on top-down management and


technical methods rather than worker pride and satisfaction.
Philip Crosby: author of popular book Quality is Free. He says

Quality is an attitude and a measurement

COMMONALITY OF THEMES OF
QUALITY GURUS
Inspection is never the answer to quality improvement, nor is
policing.
Involvement of leadership and top management is essential to
the necessary culture of commitment to quality.
A program for quality requires organization-wide efforts and
long term commitment, accompanied by the necessary
investment in training.
Quality is first and schedules are second.

Demings 14 Points
1.
2.
3.
4.
5.

Create constancy of purpose


Adopt philosophy of prevention
Cease mass inspection
Select a few suppliers based on quality
Constantly improve system and workers

6. Institute worker training


7. Instill leadership among supervisors
8. Eliminate fear among employees
9. Eliminate barriers between departments
10.Eliminate slogans
11.Remove numerical quotas
12.Enhance worker pride
13.Institute vigorous training and education programs
14.Develop a commitment from top management to implement above 13 points

Deming Wheel: PDCA Cycle

4. Act
Institutionalize
improvement;
continue cycle.

1. Plan
Identify
problem and
develop plan
for
improvement.

3. Study/Check

2. Do

Assess plan; is it
working?

Implement
plan on a test
basis.

INTRODUCTION TO TQM
What is TQM?
A comprehensive, organization-wide effort to improve the quality
of products and services, applicable to all organizations.
The goal is customer satisfaction.

Total Quality Management


Principles

Continuous improvement

Employee empowerment

Benchmarking

Just-in-time (JIT)

Knowledge of TQM tools

Continuous Improvement

Represents continual improvement of process &


customer satisfaction

Involves all operations


& work units

Other names

Kaizen (Japanese)

Zero-defects (Poka Yoke)

Six sigma

Employee Empowerment

Getting employees involved in product & process


improvements

85% of quality problems are due to process &


material

Techniques

Talk to workers

Support workers

Let workers make decisions

Build teams & quality circles

Benchmarking

Selecting best practices to use


as a standard for performance

Steps

Determine what to
benchmark

Form benchmarking team

Identify benchmarking partners

Collect benchmarking information

Take action to meet or exceed benchmark

Just-In-Time (JIT)

Pull system of production/purchasing

Customer starts production with an order

Involves vendor partnership programs to improve quality


of purchased items

Reduces all inventory levels

Inventory hides process & material problems

Improves process & product quality

Seven TQM Tools

Pareto Analysis

Scatter Diagram

Flow Chart

SPC Chart

Check Sheet

Cause-and-Effect Diagram

Histogram

5W, 1 H& 4 M
Who

Man

What

Machine

Where

Material

When

Method

Why
How

KAIZEN
Use Small Teams to Optimize Process Performance by
Implementing Incremental Change
Apply Intellectual Capital of Team Members Intimate with Process

ZERO DEFECTS
Making processes better leads to reduced
Rework
Scrap
Warranty costs
Inspection costs
The 1-10-100 rule states that as a product or service moves through the
production system, the cost of correcting An error multiplies by 10.
Activity

Cost

Order entered correctly Rs. 1

Error detected in billing Rs. 10


Error detected by customer Rs. 100
Dissatisfied customer shares the experience with others the costs is

Rs.1000

WHY IS ZERO DEFECTS AN


IMPORTANT CONCEPT?
Key Element in our capability to
eliminate waste.

Defects
Inventories
Motions
Delays

THE 4 COMPONENTS OF ZDQ


ZDQ functions by combining four elementary
components:
1. Point of Origin Inspection
2. 100 % Audit Checks
3. Immediate Feedback
4. Poka-Yoke

The 5 S Method
Seiko

Sort ( Proper arrangement )

Seiton

Set

Seiso

Shine ( Sweep or clean-up )

( Systematic or

Orderliness )

Seiketso - Standard ( Personal cleanliness )


Shitsuke - Sustain ( Self-discipline )

WHY DO IT?
QUALITY

EFFICIENCY

5S
SAFETY

ELIMINATING
BREAKDOWN
S

The nine types of waste


Overproduction
Delays (waiting time)
Transportation
Process
Inventories
Motions
Defective products
Untapped resources
Misused resources

ELIMINATION OF
WASTE
Identify
waste
Check and
measure
results

Search for
causes
Implement
continuous
improvement

BENEFITS
Improvements in: Workforce morale
Company image
Health and Safety
Machine maintenance
Quality
Productivity
Leading to Increased Competitiveness

Six Sigma: DMAIC DMADV


Define
Measure
Analyze
Continuous Improvement

Reengineering

Improve

Design

Control

Validate

Six Sigma DMAIC Process


Control
Improve
Define
Analyze
Measure

Define: Define who your


customers are, and what their
requirements are for your
products and services Their
expectations. Define your
team goals, project
boundaries, what you will
focus on and what you wont.
Define the process you are
striving to improve by mapping
the process.

Six Sigma DMAIC Process


Control
Improve
Define
Analyze
Measure

Measure: Eliminate guesswork


and assumptions about what
customers need and expect and
how well processes are working.
Collect data from many sources
to determine speed in responding
to customer requests, defect
types and how frequently they
occur, client feedback on how
processes fit their needs, how
clients rate us over time, etc.
The data collection may suggest
Charter revision.

Six Sigma DMAIC Process


Control
Improve
Define
Analyze
Measure

Analyze: Grounded in the


context of the customer and
competitive environment,
analyze is used to organize data
and look for process problems
and opportunities. This step
helps to identify gaps between
current and goal performance,
prioritize opportunities to
improve, identify sources of
variation and root causes of
problems in the process.

Six Sigma DMAIC Process


Control
Improve
Define
Analyze
Measure

Improve: Generate both


obvious and creative
solutions to fix and prevent
problems. Finding
creative solutions by
correcting root causes
requires innovation,
technology and discipline.

Six Sigma DMAIC Process

Control
Improve
Define
Analyze
Measure

Control: Insure that the


process improvements, once
implemented, will hold the
gains rather than revert to
the same problems again.
Various control tools such as
statistical process control can
be used. Other tools such as
procedure documentation
helps institutionalize the
improvement.

Six Sigma DMADV Process


Validate
Design
Define
Analyze
Measure

Design: Develop detailed


design for new process.
Determine and evaluate
enabling elements. Create
control and testing plan for
new design. Use tools such as
simulation, benchmarking,
DOE, Quality Function
Deployment (QFD), FMECA
analysis, and cost/benefit
analysis.

Six Sigma DMADV Process


Validate
Design
Define
Analyze
Measure

Validate: Test detailed design


with a pilot implementation. If
successful, develop and
execute a full-scale
implementation. Tools in this
step include: planning tools,
flowcharts/other process
management techniques, and
work documentation.

EIGHT QUALITY MANAGEMENT


PRINCIPLES
Customer Focus
Leadership
Involvement of People
Process Approach
Systematic Approach to Management
Continual Improvement
Factual Approach to Decision-Making
Mutually Beneficial Supplier Relationships

COST OF QUALITY
Types of Quality Costs
The cost of quality is generally classified into four categories
Cost of Prevention
Cost of Appraisal
Cost of Internal Failure
Cost of External Failure

Cost of Prevention
Prevention costs include those activities which remove and
prevent defects from occurring in the production process.
Included are such activities as quality planning, production
reviews, training, and engineering analysis, which are
incurred to ensure that poor quality is not produced.
Appraisal
Those costs incurred to identify poor quality products after
they occur but before shipment to customers. e.g.
Inspection activity.

Internal Failure
Those incurred during the production process.
Include such items as machine downtime, poor quality
materials, scrap, and rework.
External Failure
Those incurred after the product is shipped.
External failure costs include returns and allowances,
warranty costs, and hidden costs of customer dissatisfaction
and lost market share.

ISO 9000: 2000


Created by International Organization for
Standardization (IOS) which was created in 1946 to
standardize quality requirement within the European
market.
IOS initially composed of representatives from 91
countries: probably most wide base for quality
standards.
Adopted a series of written quality standards in 1987
(first revised in 1994, and more recently (and
significantly) in 2000).
Prefix ISO in the name refers to the scientific term
iso for equal. Thus, certified organizations are
assured to have quality equal to their peers.

ISO 9000: 2000


Defines quality systems standards based on the
premise that certain generic characteristics of
management principles can be standardized.
And that a well-designed, well-implemented and well
managed quality system provides confidence that
outputs will meet customer expectations and
requirements.
Standards are recognized by 100 countries including
Japan and USA.
Intended to apply to all types of businesses. (Recently,
B2B firm bestroute.com became the first e-commerce
company to get ISO certification.)

ISO 9000: 2000


Created to meet five objectives:
1.

Achieve, maintain, and seek to continuously improve


product quality in relation to the requirements.

2.

Improve the quality of operations to continually


meet customers and stakeholders needs.

3.

Provide confidence to internal management that


quality requirements are being met.

4.

Provide confidence to the customers that quality


requirements are being met.

5.

Provide confidence that quality system requirements


are fulfilled.

ISO 9000: 2000 STRUCTURE

Consists of three documents

1.

ISO 9000 Fundamentals and vocabulary.

2.

ISO 9001 Requirements.


Organized in four sections: Management
Responsibility; Resource Management; Product
Realization; and Measurement, Analysis and
Improvement.

3.

ISO 9004 Guidelines for performance


improvements.

SECRET TO SUCCESS
Establish Atmosphere
Obtain Commitment
Select Objectives
Inform (communicate)
Voluntary
Training
Be Open and Positive

FOUR PILLARS OF TQM


Process
People
Management
System

TOTAL QUALITY IS
Meeting Our Customers Requirements
Doing Things Right the First Time; Freedom from Failure (Defects)
Consistency (Reduction in Variation)
Continuous Improvement
Quality in Everything We Do

TQ: TRANSFORMING AN
ORGANIZATION
From

To

Motivation through fear and loyalty

Motivation through shared vision

Attitude: Its their problem

Ownership of every problem affecting the

Attitude: the way weve always done it

customer

Decisions based on assumptions/ judgment

Continuous improvement

calls

Decisions based on data and facts

Everything begins and ends with management

Everything begins and ends with customers

Crisis management and recovery

Doing it right the first time

Choosing participative OR scientific

Choosing scientific AND participative

management

management

THANK YOU

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