Total Quality

Management

What is Quality?

Old Quality vs. New Quality

Difference between old quality (Rolls Royce,

personal banker, ...) and new quality is that old

was the work of craftsmen and the new is the work
of a system (Toyota, Big Mac, Boeing Aircraft,
Disney World, ...). The old is expensive, made for
the few, using skilled hands, is beautiful and
functionally based. The new reduces cost, made
for the many by intelligent minds and should drive
the economy and make business more
competitive.

Toyota Commercial

Why care about quality

increase productivity
expand market share
raise customer loyalty
enhance competitiveness of the firm
at a minimum, serve as a price of entry

Achieving high quality Is

Difficult
Only 36% of the firms felt that Total Quality

programs boosted their ability to compete.

Arthur D. Little Survey of 500 Firms

Over 50% of firms rated their efforts D or F

relative to increasing customer satisfaction,

increasing market share, or reducing their cost.
Rath and Strong

Main Problem: Achieving high quality is as easy

to understand as losing weight and quitting

smoking and is as difficult to do.
Steve Schwartz, IBM MDQ VP

Why Quality is so difficult to

do?
Quality can only be defined in terms of an

agent (a judge of quality).

One has to translate future needs of the user
into measurable characteristics

Service Industries are

particularly Difficult
Reasons:
High volume of transaction
Immediate consumption
Difficult to measure and control
More labor intensive
High degree of customization required
Image is a quality characteristic
Behavior is a quality characteristic

Quality Gurus
Deming: The father of the quality

movement. Scientific approach to quality

Juran: Quality by design
Crosby: Quality is free

Demings Seven
Deadly Diseases
Lack of Constancy of purpose
Emphasis on short term profits
Evaluation of performance, merit rating or annual

review of performance
Mobility of management
Running the company on visible figures alone
Excessive medical costs
Excessive costs of warranty fueled by lawyers
that work on contingency fees
Interview with Deming

What is TQM??
The essence of Total Quality Management is
a common sense dedication to
understanding what the customer wants and
then using people and science to set up
systems to deliver products and services that
Greg Hughes
delight the customer.
President
AT&T Transmission Systems

Basic Concepts of TQM

Customer Focus
Continuous Process Improvement - Kaizen
Employee Empowerment Everyone is responsible for

quality
Quality is free - focus on defect prevention rather than

defect detection for it is always cheaper to do it right the

first time
Benchmarking Legally stealing other peoples ideas
Customer-Supplier Partnerships
Management by fact..by numbers..by data

Balanced scoreboard (financial, customer, process, learning)

Quality in U.S. vs. the Japanese

U.S. conforming to the

requirements at the least cost

Japanese joint responsibility to
make the end customer happy

12

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OEM

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Supplier

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OEM
Combative non collaborative relationship
13

Creating the Best Vehicle/Systems with All the

People All the Suppliers All the Time
YOU meet the
requirements!

SOR

Lets create
the best
Vehicle and
Systems
together.

Partnership - Collaborative relationship

14

Strength of USA vs. Japan

Concept
Good Innovative Ideas

Good Implementation

Strength of USA Mfg

Strength of Japanese Mfg

KAIZEN

Time

15

Good Ideas, Good Implementation are the goals

of everyone in the automotive industry

Seven Basic Quality Tools To

improve Process Quality
Scatter Diagrams: Plot data on a chart no

attempt is made to classify the data or massage it

Pareto Charts: Organize data on a histogram
based on frequency from most prevalent to least.
Help identify major causes or occurrences (80:20
rule)
Check Sheets: Easy way to count frequency of
occurrence by front line workers
Histograms: Categorize data is cells and plot (see
if any patterns emerge)
Run Charts: Plot data as a function of time
Cause and effects Charts: fishbone diagrams are
used to identify the root causes of a problem
Control Charts: are statistical tools used to
determine if the variation in results is caused by
common or special events

Failures in O-rings

Graph Fit of O-ring failures

Full O-ring data including no

failures

T
R
A
N
S
A
C
T
I
O
N
T
I
M
E

RUN CHART

Time of Day

Data Collected
From Check Sheet
Time Range (in

secs)
44-50
51-57
58-64
65-71
72-78
79-85
86-92
93-99
100-106
107-113

Frequency
1
4
17
12
14
19
18
11
3
1

A Histogram

Be careful of Cell Size

Pareto Chart (80-20 Rule)

Further info on Pareto Charts

Pareto Diagrams
Purpose:

helps organize data to show major factors

displays data in the order of importance
organize based on fact rather than perception
To construct:
use data from a check sheet or similar instrument
analyze data to determine frequency
identify the vital few
calculate percentages
add percentages to find vital few (80%)
draw cumulative curve
Typical Application:
display relative importance of different factors
choose starting point for problem solving
monitor success
identify basic cause of a problem
use a selling tool to gain support

Teller

Processes
Sequence
of activities

Fatigue
Training

Too
many
steps

Control
functions

Attitude

Processing
Delays

Too much
downtime

Not user
friendly

Slow
response
time

Computers

Fishbone Diagram aka

Cause & Effect

Cause and Effect Diagram

Fishbone Diagram
Purpose:
visual display of information to identify root causes rather than

symptoms.
To construct:
determine the issue and write problem statement in a box to the
right of diagram
find the main causes and write them on branches flowing to the
main branch (method, equipment, people, material, environment,
customer expectations, money, management, govt. regulations)
identify all possible causes and write them on the diagram as subcauses in each category
Typical Application:
determine the real cause of the problem
check the potential effects of a solution
Fishbone Diagrams Explained

5 Whys problem solving technique

Mizenboushi and GD3 Concepts

Good
Design
Prevent Problems

Robust
Design
- keep Good
Designs
- minimize change

Find Problems

GD3

Good
Discussion
DRBFM

Good
Dissection
DRBTR

Address any potential issues up stream at

Design Phase

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Quality Focus At the Design Stage

Quality from the start

Directs attention to Change

Change = potential to have problems

Directs attention to Interfaces

Most defects occur at the interface

Focus on
Change Points & Interface Points
29

No change No Problem

Examples:
Design change
Packaging environment
change
Usage environment
change
New manufacturing
process
New supplier

Change Points have the highest

potential to introduce defects

30

DRBFM Example
Tire Pressure Monitoring System
Changing the sensor from Aluminum Valve to Rubber Valve.

Purely for cost reduction purposes... System Performance is the

same.

Simple change What could go

wrong?

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Interfaces
Interfaces (Interfaces where issues can
brew and surface later)
Customer to Supplier
Department to Department
System Interfaces

The Crash sensor failure on Honda

Minivans

Interface Points have the highest

potential to introduce defects
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Design Review By Failure Modes

(DRBFM)

Before and After Description of the Change Point

DescribeConcepts
the Potential failure modes
Basic
Describe the Design Countermeasures

Target Testing of the change points and

Countermeasures Only

Design techniques to uncover

defects at the design stage Up
stream

Design
Design

DRBFM

Verify/Validate
Verify/Validate

DRBTR

Design
Design

Changes
Test Result (Change in product
due to test: Cracks,Leaks, etc.)

Focus on Implementation
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Where do failures occur

Design Phase (Suppliers are Up Stream)
Production
In the field
Where is it cheapest to detect failures?
Example:

Replacing a four crash sensors by a single one ..

When Failures Occur!

Why did the failure happen?
Symptoms vs. Root Causes
Root Causes (Investigate the whole chain):
Suppliers/Component failure
Design
Manufacturing
Change management

Why were not able to detect it?

Rootcause Analysis:
Why Occurred?
Why Not Detected?
36

Failure Detection 5Ws-2Hs

Who
Where
When
What
Why
How was the problem found?
How can we isolate it? Turn On / Turn Off

Rootcause Analysis Methodology

Failure Isolation KT Analysis: Is - Is

Not
Why is this design and not the other similar design
Why this plant and not another plant
Why this operator and not the other operator
Why in winter and not in the summer
Why this computer and not the other computer
Why in this model and not in other models

Rootcause Analysis Methodology

Finding the root causes of a problem is not

Fault Finding/Criticism.
To find problems is not fault finding/criticism.
To find problems is a creative act, same as innovation.
We should never stop at only finding problems, but also

develop a systemic corrective action plan... FIX THE PROCESS

that created the problem & identify detection algorithms

We never forget that every job should relate directly to

improving a product. Other jobs are nothing but waste, e.g.,

only to check, to inspect, etc.

Everyone should readily accept help from review participants.

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Summary - Concepts
Quality all the time by everyone from an end

user prospective

Address issues up stream. Address product

and process defects at the design stage

Fixing problems usually involves fixing the

systemic process issues that caused the

problem Reoccurrence Prevention

Focus on Implementation
Focus on Change Points and Interfaces