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TOTAL QUALITY MANAGEMENT

An integrated management system
that ensures continuous
improvement of an organization
toward total customer satisfaction

CUSTOMER
DELIGHT

Anna Bella Siriban-Manalang

TOTAL QUALITY MANAGEMENT
is a planned continuing process of
building quality into all aspects of
an organization

EXCELLENCE

Anna Bella Siriban-Manalang

PERFORMANCE EXCELLENCE
FOCUSED QUALITY
TOTAL QUALITY MANAGEMENT
An operating philosophy and
management tool
that focuses on
CONTINUOUS PROCESS IMPROVEMENT
everything is a process / use of scientific
methods / data do it right the first time
through
UNIVERSAL PARTICIPATION
everyone, everywhere
team as well as individuals
that results in
“CUSTOMER” SATISFACTION
internal and external customers / ultimately
improve company’s performancer
Anna Bella Siriban-Manalang

99.99%
If people were to perform only 99.99% of the
time :

At least 200,000 wrong drug prescriptions
each year

Unsafe drinking water, almost four days
each year

No electricity, water or heat for about 15
minutes each day

No telephone service or television
transmission for nearly 15 minutes each day

Nine misspelled words on every page of a
magazine

Thus, the only acceptable
target is for companies to

and Poor Quality Anna Bella Siriban-Manalang .QUALITY FORMULA Quality = POC + PONC = Price of Conformance + Price of Non-Conformance = Doing things right + Doing things wrong Rejects Sorting Waste Errors Added Costs Due to Scrap. Delays. Rewark.

10% of Sales or Revenue .Cost of Quality TYPICAL Prevention Experts Total Appraisal Conformance Failure NonConformance The Estimate 30-50% of Sales or Revenue WHAT IT COULD BE! Prevention Appraisal Conformance Failure NonConformance 5 .

1 Quality Engineering A.1.4 Reinspection A.2 APPRAISAL A.1 Scrap A.4 Quality Training A.1 Inspection and Test of Incoming Material A.2.3.1.2 Rework A.3 Quality Planning by others A.4.4.4.3 INTERNAL FAILURE A.5 Faulf of Supplier A.QUALITY COST A.1.3.3 Failure Analysis A.2 Inspection and Test A.2.3.1.4.4 EXTERNAL FAILURE A.2.3.3.4.5 Errors A.3 Repair A.3 Product Quality Audits A.4.5 Equipment Calibration and Maintenance A.2.2 Design and Development of Equipment A.6 Downgrading A.4 Materials and Services Consumed A.1 Complainta A.2.6 Liability Anna Bella Siriban-Manalang .3.2 Rejected and Returned A.4 Warranty Charges A.1 PREVENTION A.

THE JAPANESE SUCCESS MODEL Sociocultural Environment Cultural Characteristics Educational Systems Government / Business Environment Government Institutions Business Institutions Competitive Environment Intensity of Domestic Competition Japanese Firms Competitiveness Marketing Global Market Dominance Organizational Environment Lifetime Employment Government Institutions Consensual Management Quality Control Circles Management Labor Cooperation .

Areas of Departure from “Traditional” Management Thinking to TQM Thinking (Paradigm Shift) • Definition of “Customer” • Definition of “Quality” • How Quality is achieved • Relationship between Productivity & Quality • Causes of Problems • Involvement of People • Time frame Anna Bella Siriban-Manalang .

Definition of “Customer” • OLD : The ultimate Entity who actually buys the Firm’s products of Services • NEW : Anyone within or outside the firm who is the recipient of one’s work outputs. Anna Bella Siriban-Manalang .

The level of quality attained is based on what the firm says it should be and is achieved via conformance to internal standards.Definition of “Quality” Old: Attributes of the ultimate product or service of the firm. Good quality means highest quality possible. Anna Bella Siriban-Manalang .

Definition of “Quality” New : Quality is not just productor.service related but applies to everything we do.” (W. It means a predictable degree of uniformity and dependability at low cost with a quality suited to the market. Deming) Anna Bella Siriban-Manalang . “Good quality does not necessarily mean highest quality possible.

respect and courtesy Anna Bella Siriban-Manalang .TWO ELEMENTS OF QUALITY Quality in FACT Doing the right thing Doing it the right way Doing it right the first time Doing it on time everytime Quality in PERCEPTION Delivering the right product Satisfying customer needs Meeting customer expectations with integrity.

Anna Bella Siriban-Manalang .HOW QUALITY IS ACHIEVED OLD : Produce as MANY as possible and as QUICKLY as possible Remove the errors by QUALITY CONTROL INSPECTION at the end of production. Replace any faulty products that might still find their way to the customer.

Anna Bella Siriban-Manalang in for . The role of quality control must now shift from inspection to assisting REDESIGNING THE PROCESS error prevention.HOW QUALITY IS ACHIEVED NEW : Design quality into the production process to produce defect-free products Go for defect PREVENTION rather that defect detection.

CAUSES OF PROBLEMS OLD : Quality variations are largely caused by human error NEW : 85% of quality problems in an organization are system-related Anna Bella Siriban-Manalang .

” BETTER WORKING LIFE QUALITY OUTPUTS “ People who feel good about themselves produce good results.” Anna Bella Siriban-Manalang .QUALITY OUTPUTS BETTER WORKING LIFE “ People who produce good results feel good about themselves.

rather that short-term profitability.TIME FRAME • OLD : Emphasize annual performance and bottom-line results • NEW: “ Innovate and allocate resources to fulfill the long-range needs of the company and customer.” (W. Deming) Anna Bella Siriban-Manalang .

Product. and Service improvement Anna Bella Siriban-Manalang .PRINCIPLES OF TQM • CUSTOMER FOCUS AND DELIGHT Internal and external customers Products and Services meet Needs of clients • FULL PARTICIPATIVE MANAGEMENT Democratic Management Style and Culture Full Employee Participation • TOP MGT. COMMITMENT & LEADERSHIP Full Management commitment to Quality • OPEN COMMUNICATION Respect and Trust No barriers between departments No atmosphere of fear Information Sharing • CONTINUOUS IMPROVEMENT People Improvement Process.

PRINCIPLES OF TQM • HUMAN RESOURCE EXCELLENCE Education and Training Commitment of all People Time Management Rewards and Recognition • EMPHASIS ON LONG-TERM GOALS Strategic Planning • BREAKTHROUGH STRUCTURE Network of teams Innovation Problem-solving techniques Measurement • BENCHMARKING Comparing with the best World-class excellence Anna Bella Siriban-Manalang .

QUALITY PLANNING PROCESS VISION MISSION STATEMENT IMPLEMENTATION STRATEGIES Anna Bella Siriban-Manalang .

STEPS: 1.construct the customer window. Lists of outputs/products that are provided to this customer. Match. WANT DON’T GET CUSTOMER WANTS AND DOES NOT GET (A) CUSTOMER WANTS AND GETS ( C) (B) CUSTOMER DOES NOT WANT AND DOES NOT GET (D) CUSTOMER DOES NOT WANT AND GETS ANYWAY DON’T WANT Anna Bella Siriban-Manalang GET . Identify customer requirements.CUSTOMER STUDY PURPOSE: To assess level of quality as perceived by the customer to establish priorities for improvement action. 4. Identify customer (internal or external) for each product or service. 3. 2.

QUADRANT C. Decide on course of action WANT DON’T GET QUADRANT A. Another option is about the value of that attribute. Reduce variations to ensure consistency. In this quadrant. validate own assessment 6. Customer does not want it but gets if anyway. DON’T WANT Anna Bella Siriban-Manalang GET . There are 2 corrective action options. Customer does not want it and does not get it. It would not make sense wasting energy or resources to deliver them.CUSTOMER STUDY 5. Where feasible. Improvement teams may have to examine the feasibility of adding the desired features to the product or service QUANDRANT B. Items in this quadrant become prime targets for CORRECTIVE ACTION. Customer wants it and gets it. so don’t tinker with the system QUADRANT D. It may be possible to eliminate this part of your product or service. your delivery system matches the customer’s needs. Customer wants it and does not get it. so continual improvement is the strategy. These are attributes that you are not delivering and the customer does not want.

First. it is absolutely essential that top management be completely sold to quality and to visibly demonstrate a strong and unconditional commitment to it. How does an organization make Quality a way of life? 1. .Q.

and of mutual trust. Second the organizational climate for quality thinking and action to thrive. Quality grows and blossoms in an environment of cooperation. respect. not confrontation. and open communication. harmony. .2. not animosity. should be reasonably positive and healthy.

. 3. Third. the best ideas come forward when people are encouraged to challenge existing policies and procedures that may have become obsolete and non-aligned with the new quality culture.In everything there is always a better way.

. Fourth people should be provided with sufficient resources and appropriate authority to pursue their objectives.4. A system of recognizing quality work performance should also be in place.

Quality culture development is not a short-term endeavor.5. Lastly. . let there be a lot of patience.

How is Quality monitored? A.Q. While quality is the responsibility of everyone in the organization. . Quality Council composed of top level executives who will develop corporate goals and policies and preside over quality improvement projects. each individual has a particular role defined by a structure which establishes accountabilities and functional relationships. The structure should have four components: 1.

. Quality Leaders and Facilitators who will provide training on quality improvement concepts and methodologies and integrate quality improvement activities at all levels.2.

. Quality Circles staffed the people coming either from within the same function / department / division or cross functional.3. recommending. monitoring and controlling process-oriented quality improvement or corrective projects. who take responsibility for initiating. putting into effect.

analyze. and solve problems of various type in that area. QUALITY Anna Bella Siriban-Manalang .QUALITY QUALITY CIRCLE a small group of people from the same work area that voluntarily meets on a regular basis to identify.

WHAT IS A QUALITY CONTROL CIRCLE (QCC)?  SMALL GROUP OF PEOPLE  DOING SIMILAR WORK  MEMBERSHIP IS VOLUNTARY  MEETING IS REGULAR  TO IDENTIFY. ANALYZE & SOLVE  PROBLEMS WITHIN THEIR OWN WORK AREA  TO IMPLEMENT SOLUTIONS .

WHAT ARE THE BENEFITS QUALITY CIRCLE? • INCREASED MORALE AND REDUCED TURNOVER • HIGHER QUALITY WORKMANSHIP • LEADER DEVELOPMENT • BETTER TECHNICAL SKILLS AND IMPROVED WORK ATTITUDES • INCREASED PRODUCTIVITY • BETTER PRODUCTS OR SERVICE .

THE TOOLS OF TQC  Brainstorming  Process Flow Diagram  Cause and Effect Diagram  Checksheets  Pareto Diagram  Histograms Anna Bella Siriban-Manalang .

TEAM NETWORK CONCEPT P P LEAD TEAM ISSUE COUNCIL P LEAD TEAM CROSS-FUNCTIONAL P P LEAD TEAM QI TEAMS & CIRCLES QI TEAMS & CIRCLES REQUIRED Support Guidance CPS Process & Techniques Facilitation Anna Bella Siriban-Manalang .

training and other assistance to one or more Quality Circle Anna Bella Siriban-Manalang .TEAM NETWORK CONCEPT Steering Committee Facilitator Quality Circle Quality Circle Quality Circle Leaders Leaders Leaders Members Members Members Member of steering committee who gives advice.

SORT (sort out unnecessary objects and discharge / remove from work area) 2. SYSTEMATIZE (systematize arrangement of objects.SEITON (keep in good order) 2.) 4. To keep work area clean. SHITSUKE (discipline of workers in performing above 4s activities) 6. SHIKKARI (steadily or persistently performing 5s activities Anna Bella Siriban-Manalang 4.etc. SEISO (clean up) 3. SANITIZE (sanitize work area and surroundings to maintain healthiness of workers) 5. SEIRI ( clear cut) 1.) 3. SWEEP (sweep up all dirt.etc.tools. SELF-DISCIPLINE (self-discipline of workers in performing above 4s) 6. trash. SEIKETSU (hygienic surroundings) 5. SUSTAIN (sustain 5s activities-do not stop-continue in order to achieve good results) .5S + 1 ACTIVITIES JAPANESE ENGLISH 1. waste.

like a compass. The problem. Result : Quality 2. Nothing communicates quite like example. A tough-minded leader provides purpose and direction. service. A leader is motive-led and value-fed. A TQC leader believes this commitment is liberating and enriching to all. A tough-minded TQC leader leads by an example that is focused stretching and positive. A tough TQC leader ensures that all compensation is related to positive performance and expects total integrity. Knowing that our strengths are our tools. Result : Quality The problem is not the competitor ( the Japanese). Result : Quality 5. The science of physics would probably not exist without the magnetism of particles. A leader is guided in all decision by these two components. And the solution is the person in the mirror. team building and quality. Result : Quality 3. and say “Follow me”? The Result : Quality! Anna Bella Siriban-Manalang . a tough-minded TQC leader expects and reinforces the best. A tough-minded TQC leader is committed to people. innovation. the challenge. Will you adopt the positive values that leads to success? Will you lead your colleagues to do the same? Will you dare to stop pushing and driving. Result : Quality 4. is the person in the mirror. A tough-minded leader provides a crystal-clear focus of all strengths in the organization. A tough-minded leader provides transcedent or macrovision and magnetic lift and pull.THE ESSENCE OF THE TQC PARADIGM : SUMMING UP 1.

and gratitude.QUALITY AFFIRMATION FOR THE TQC LEADER I will exemplify a passion for excellence I will ask . I will provide an example of accountability. love. and integrity I will follow a path of continual empowerment for myself and others I will consistently look for a focus on the strengths rather than the weaknesses of all with whom I come in contact. I will enfuse every thought and relationship with faith. needs. and hear . I will lead as I would like to be led I will savor the flavor of each passing moment. listen. Anna Bella Siriban-Manalang . hope. and possibilities of my customers and my team. mental. and spiritual fitness. I will cultivate optimum physical. commitment.to determine. the wants.

I can and must be systematically analyzed. Give everyone opportunities to contribute to improving systems and eliminating quality problems.   Realize that processes must be standardized and that the standardized procedures must be followed.  Quality leadership is a responsibility that starts with the customer. Foresee from making barriers that prevent workers from making quality products or giving quality service.  Focus on constantly improving every system and procedure. Work hard to reduce variation of output quality. Help people do the best job possible.TOTAL QUALITY LEADERSHIP A style of management which focuses on giving Top Value to Customer by building excellence in every aspect of your organization through creative involvement of everybody.both internal and external.   Improve relationships with suppliers .  Know that work is not haphazard. Adapt communication systems to the needs of the work. Anna Bella Siriban-Manalang . not to the needs of the organization’s hierarchy. Enable workers to use knowledge and insight. Recognize that 85% of failures and errors are caused by badly designed system and procedures and that less than 15% of quality problems are employee-related.  Nurture commitment from all employees. Focus on the expectations and needs of both internal and external customers.