You are on page 1of 49

Total Quality Management

Blueprint

Defining quality
Service quality and Manufacturing quality
Total Quality Management Introduction
Philosophy of TQM
Elements of TQM
Quality Awards

Operations management-Semester
II

Defining Quality

Conformance to specifications
Fitness for use
Value for price paid
Support Service
Psychological criteria

Operations management-Semester
II

Manufacturing Quality

Manufacturing tangible product


Conformance degree to which product characteristic meet
present standard
Performance
Reliability- function as expected without failure
Features extras that are included beyond basic characteristics
Durability expected operational life of the product
Serviceability

Operations management-Semester
II

Service Quality

Perceptual in nature
Tangible factors
Responsiveness to customer needs
Courtesy and friendliness of staff
Promptness of resolving complaints
Time
Consistency

Operations management-Semester
II

Do you know ?

Todays customer demand and expect high quality


Six Sigma 3.4 defects per million
Everyone in the company is trained for quality
Highly qualified Black Belts
Black Belts identify and solve quality problems
E.g. G.E and Motorola

Operations management-Semester
II

Total Quality Management

Preventive
Quality is customer driven
Entire organisation
Technical aspect + involvement of people

Operations management-Semester
II

Concepts that make the philosophy of TQM

Customer focus
Continuous improvement
Employee empowerment
Use of quality tools
Product design
Process management
Managing supplier quality

Operations management-Semester
II

Customer Focus

Meeting or exceeding customer expectation


Perfectly produced product has little value if it is not what
the customer wants
Relative or Subjective in nature
Difficult to predict
Ways and means : Focus group, market surveys and
customer interviews

Operations management-Semester
II

Continuous Improvement

Traditional approach : Peak or plateaus to be reached


USA : Change = of large magnitudes
Japan : Gradual improvement
Means to attain Continuous Improvement
PDCA/PDSA
Benchmarking

Operations management-Semester
II

10

Employee Empowerment

Not to pass the buck on others


Incentives
Empower the employees to take decisions

Operations management-Semester
II

11

Use of Quality Tools

Assess quality by using variety of quality control tools


Seven tools
Cause-and effect diagram
Flow charts
Check lists
Control charts
Scatter diagrams
Paretto Analysis
Histograms

Operations management-Semester
II

12

Seven Tools : Cause-and-effect diagrams


To identify potential
cause for particular
quality problem
Also called fish bone
diagram or Ishikawa
Spine( cause of
problem) and head of
fish (the problem)

Operations management-Semester
II

13

Seven Tools : Flow charts


Schematic diagram of
sequence of steps
Explains: how the
operations work and
where the problem
could arise

Operations management-Semester
II

14

Seven Tools : Check lists


Lists of common defects
and the number of
observed occurrence of
these defects
It can be multidimensional featuring
location or time

Operations management-Semester
II

15

Seven Tools : Control Charts


Evaluate whether the
process is operating
within the expected
levels
Upper Control Limit
(UCL) and Lower
Control Level (LCL)
If it falls beyond that, it
shows a problem

Operations management-Semester
II

16

Seven Tools : Scatter Diagram


Relationship between
variables
Positive or negative
correlation
E.g. Training and level
of defect

Operations management-Semester
II

17

Seven Tools : Paretto Analysis


To identify quality problems
based on degree of
importance
Few quality problems are
important
80:20 principle
Rank the causes of poor
quality in decreasing order
based on percentage of
defect each has caused

Operations management-Semester
II

18

Seven Tools : Histograms

Frequency distribution
of observed values of a
variable

Operations management-Semester
II

19

Product design: Quality Function Deployment

Product design to meet customer expectation


Customer speaks in everyday language
QFD translates customer language to specific
requirements
QFD enhances inter-departmental communication

Operations management-Semester
II

20

QFD: House of quality


Enables to view relationships among variables
Technical v/s customer requirements
Steps (the resultant matrix is called house of quality)
Customer requirements
Numerically scored based on importance
Scores translated into specific product characteristics
Compare with competitors
Specified goals

Operations management-Semester
II

21

QFD: House of quality

Operations management-Semester
II

22

House of quality : Customer requirements

Interview, focus groups along with the


importance the customer attach to the
attribute

Operations management-Semester
II

23

House of quality : Customer requirements

House of quality : Competitive evaluation

How our product compares to those of


competitors

Operations management-Semester
II

25

House of quality : Competitive evaluation

House of quality : Product characteristics

Attributes of the
product are market
along the top

Operations management-Semester
II

27

House of quality : product characteristics

House of quality : The relationship matrix

How each customer requirement is related


product characteristics
Positive relationship
Negative relationship

Operations management-Semester
II

29

House of quality : relationship matrix

House of quality : Trade-off matrix

How each product


characteristic is
related to others

Operations management-Semester
II

31

House of quality : Trade-off matrix

House of quality : Setting targets

Evaluate competitors product relative to the


specific product characteristics and set
targets

Operations management-Semester
II

33

House of quality : Setting targets

Process Management

Quality at the source


Uncover the source of quality problems and
correct it

Operations management-Semester
II

35

Managing Supplier Quality

Traditional: numerous suppliers to ensure


competitive bidding
TQM : Limited suppliers to ensure
Better quality
Save time
Cost

Operations management-Semester
II

36

Eight Elements of TQM

Ethics
Integrity
Trust
Training
Team work
Leadership
Recognition
Communication

Operations management-Semester
II

37

Elements of TQM
Ro
of

Recogni
tion

Bindi
ng
Morta
r

Commu
nication

Training

Ethics

Buildi
ng
Brick
s

Foun
datio
n
Integr
ity

Team
work

Leaders
hip

Trust

Operations management-Semester
II

38

Ethics
Good and Bad in any
situation
Organisational Ethics
Personal ethics

Operations management-Semester
II

39

Integrity

Honesty, morals,
values, fairness and
adherence to the
facts and integrity

Operations management-Semester
II

40

Trust

By-product of integrity
and ethical conduct
Pride of ownership
and encourages
commitment
Enables a cooperative
environment essential
for TQM

Operations management-Semester
II

41

Training

Responsibility of
supervisor
Teaching the
employee the basis
of TQM

Operations management-Semester
II

42

Team work

Ensures better and quicker solution to problems


Employees feel free to raise quality concerns
Quality Improvement Teams(QIT) or excellence teams
Temporary teams specific problems
Problem Solving Teams
Temporary teams certain problems
Natural Work Teams

Small group of skilled workers who share


responsibility

Operations management-Semester
II

43

Leadership

Inspiring vision, make


strategic decisions
Provide focus

Operations management-Semester
II

44

Communication

Sharing of correct information


Downward communication
Upward Communication
Sideways Communication

Operations management-Semester
II

45

Recognition

For both suggestion and achievement


Individual or team
Recognition comes in different
Ways Letter, trophy or incentive
Places In department, directors cabin
Time Staff meeting , annual meeting

Operations management-Semester
II

46

Quality Awards

The Malcolm Balridge National Quality Award


(MBNQA)
1987, to reward and stimulate quality initiatives
2 companies each in 3 categories
(Manufacturing, service and small business
Categories evaluated : Leadership, Strategic
Planning, Customer and Market focus,
Information and Analysis, Human Resources
Focus, Process Management, Business Results

Operations management-Semester
II

47

Quality Awards

The Deming Prize


Japanese Award given to recognise efforts
for quality improvement
Given by Union of Japanese Scientists
and Engineers

Operations management-Semester
II

48

Quality Awards in India

Rajiv Gandhi National Quality Award


The Golden Peacock National Quality Award

Operations management-Semester
II

49

You might also like