Professional Documents
Culture Documents
TQM MBA Slides
TQM MBA Slides
TQM meaning
Evolution
Concepts
Processes
Tools
Definition:
Total Quality Management
Total Quality Management (TQM) refers to management
methods used to enhance quality and productivity in
organizations, particularly businesses.
TQM is a comprehensive system approach that works
horizontally across an organization, involving all
departments and employees and extending backward and
forward to include both suppliers and clients/customers.
Total Quality Management (TQ, QM or TQM) and Six
Sigma (6) are sweeping culture change efforts to
position a company for greater customer satisfaction,
profitability and competitiveness.
TQM may be defined as managing the entire organization
so that it excels on all dimensions of products and
services that are important to the customer.
Quality Descriptions
vs.
Conformance Quality
Conformance Quality
Meeting Our Customers Requirements
Continuous Improvement
Quality in Everything We Do
Basics Creating TQM
Process-Oriented Viewing Quality Building an
Focus on Management as a Organizational
Prevention & Never Ending Culture Around
Problem Solving Quest Quality
(Ongoing Process
Improvement)
Basics Inverted View of Management
Traditional Direction of TQM
Organizational Support Organizational
Structure View
Employees
Top
Management
Lower Level Management &
Front Line Supervisors
Middle Management
Middle Management
Lower Level Management &
Front Line Supervisors
Top
Management
Employees
Quality Management History
Frederick Winslow Taylor wrote Principles of Scientific Management in 1911
Walter A. Shewhart used statistics in quality control and inspection, and showed
that productivity improves when variation is reduced (1924); wrote Economic
Control of Manufactured Product in 1931
In 1960, Dr. K. Ishikawa formalized quality circles - the use of small groups to
eliminate variation and improve processes
Organizational Profile:
Environment, Relationships, and Challenges
2 5
Strategic Human Resource
Planning Development
1 & Management 7
Leadership Business
Results
3 6
Customer and Process
Market Focus Management
QS 9000
ISO 9000
Evans and Lindsay The Management and Control of Quality, Southwestern Books, p536.
Costs of Quality: Categories
Appraisal costs
Prevention costs
10
100
$ Saved
External Failure Costs
$
Internal Failure Costs Total Cost Total Cost
Using a COPQ Without Using
System A COPQ
System
Appraisal Costs
Prevention Costs
Months
Process Flow Chart
Buffer: Material No,
Inspect Continue
Received from
Material for Defects
Supplier
Defects found?
Yes
Can
Canbe beused
usedto
tofind
find
quality
qualityproblems.
problems. Return to
Supplier for
Credit
Input-Output Analysis
Sub- Measure
Suppliers Inputs Outputs Customers s
Processes
S I P O C
From Flowchart
Example SIPOC - Specifying
Equipment Selection and Installation
Procedures at Coca-Cola USA
Suppliers Inputs Process Outputs Customers Measures
Customers Technical Developing Equipment Burger King Number of
Information Installation Selection Guide Entities Using
Coca-Cola Cost McDonalds Guidelines
Fountain Technical Reduction Equipment
Questions Programs Sales Manuals Prestige Installation
Coca-Cola Audit Ratings
Customer Developing Technology
Input Cost/ Benefit Fountain Survey of
Equipment
Selection Matrix Equipment Users
Policies and Suppliers Effectively
Installation Using
Procedures Guidelines Selection
Designing Installation Time Guidelines
Installation Standards
Policies and
Procedures Installation
Rating System
Installation
Design
Guidelines
Pareto Analysis
0.54
0.52
0.5
0.48
0.46
0.44
1 2 3 4 5 6 7 8 9 10 11 12
Time (Hours)
Histogram
Frequency
Data Ranges
Scatter Diagram
12
10
Defects
8
6
4
2
0
0 10 20 30
Hours of Training
Checksheet (data collection)
Monday
Billing Errors
Wrong Account
Wrong Amount
A/R Errors
Wrong Account
Wrong Amount
Cause & Effect Diagram
Machine Man
Environment Effect
Method Material
Fishbone Analysis:
Existing Hiring Process Problems
Control Charts
1020
UCL
1010
1000
990
980
LCL
970
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Customer Survey
Wors Best
t
Are We On Time? 5 4 3 2 1
Are We Courteous? 5 4 3 2 1
Overall Rating? 5 4 3 2 1
General
Comments:
Example Customer Survey
Results - Quantas Airways
Survey of Frequent Flier Needs Order of Priority:
Remove Remove Inspect Soda Manifold Install Drain Pan Riser Install and Connect Valve
Cup Rest Product Hoses, Onto Ice Chest Assembly Wiring Assembly
Splash Plate Tower and
Drain Pan Disassemble
Valves Prepare Rear Tower Panel
Mounting Blocks on Woodgrain Units for
Flush Cooling Install Valve Mounting
Sabre Vinyl Install Tower Structure
Circuits Blocks
Repair Dents Onto Drain Pan Riser
Inspect Fittings
Sand
Clean Clean Surface
Ice Chest Sanitize Cooling Circuits
Parts Install Valves
Tower Assembly Install New Beverage
Tubing and Rubatex
Flush Out
Apply Sabre Vinyl Install Sabre Valve
Covers, Nozzles and
Decals
To Be
Remanufac- Tear Down Remanu- Final
Reassembly
tured And Wash facture Clean-up
Equipment
Unit Not
OK
QA
Five Most Common Reasons
For Returns From QA
3. Check 2. Do