Total Quality Management

By
Fatima Gull Muhammad
WEEK # 3
 Week 3 Topics
• TQM Structure
– TQM network
– Quality Circles & QITs.
– Suggestion Schemes
– TQM & team work
– Cross functional teams
– Internal & External customer relationship
• Philosophies of Quality Gurus
– Dr. Deming, Juran and Philips Crosby.
– Evolution of Quality Thinking
 Integration of
• Staff

Structure of TQM • Customers

• Suppliers

Continual
Improvement

Quality of Quality of
• Leadership • Work
• Learnability, • Process
Show • Enterprise
consistency results
Baldrige criteria for performance excellence
framework
 Quality Circle (1/2)
• A quality circle is a group of workers who do the same or similar work,
who meet regularly to identify, analyze and solve work-related problems.
• Normally small in size, the group is usually led by a supervisor or manager
and presents its solutions to management; where possible, workers
implement the solutions themselves in order to improve the performance
of the organization and motivate employees.
• Quality circles were at their most popular during the 1980s, but continue
to exist in the form of Kaizen groups and similar worker participation
schemes.
• Typical topics for the attention of quality circles are:
– improving occupational safety and health
– improving product design
– improvement in the workplace & manufacturing processes
 Quality Circle (2/2)
• Quality circles are typically more formal groups. They meet regularly on
company time and are trained by competent persons (usually
designated as facilitators) who may be personnel and industrial
relations specialists trained in human factors and the basic skills of
problem identification, information gathering and analysis, basic
statistics, and solution generation.

• Quality circles are generally free to select any topic they wish (other
than those related to salary and terms and conditions of work, as there
are other channels through which these issues are usually considered).

• Quality circles have the advantage of continuity; the circle remains

intact from project to project.
 Effect of Quality Improvement
Improve Quality (Product/Service)

Increase Productivity (less rejects,

faster job)

Lower Costs and Higher Profit

Business Growth, Competitive, Jobs,

Investment
Key Elements of TQM – TQM Structure in the Organization
 Customer Types
i. Primary Customer
ii. Secondary Customer
iii. Indirect Customer
iv. External Customer
v. Consumer / End User
vi. Intermediary
vii. Internal Customer
IMPORTANCE OF IDENTIFYING CUSTOMER TYPE

• Identifying and defining customers types is an important part of service and

process management and improvement.
– Defining a process through documentation and process mapping requires
that process owners and improvement teams identify every customer
type and source of process and service/product requirements.
– Measuring service/process effectiveness also requires customer input.
• Generally, customer satisfaction research is performed among the end users
of an organization’s products or services.
• When an organization performs market research, it should look beyond its
current customers. Surveying lost customers, prospective customers, and
competitors’ customers can also provide useful insights as to what satisfies
customers. Such research can also provide information as to what new or
improved products, services, or processes might fulfill the customer’s
requirements and result in satisfaction.
• W.

• Edwards Deming- 14 Points &

PDCA
• Joseph .M . Juran - Juran’s
Trilogy
• Philips. B. Crosby. Four
Absolutes-Quality-
Requirements, Prevention of NC,
Zero Defects & Measure of NC.
• Kaoru Ishikawa-Disciple of Juran
& Feigenbaum. TQC in Japan,
SPC, Cause & Effect Diagram, QC.
• Taguchi. G-Loss Function.
• Walter. A. Shewhart - PDSA
• A. Feigenbaum - Customer
requirement, CWQC, Employee
Involvement, TQC.
 W Edwards Deming (1900-1993)
the key to quality: reducing variation
• regarded by the Japanese as the chief architect of
their industrial success
• quality is about people, not products
– having a satisfied customer is not enough
– profit in business comes from
• repeat customers
• customers that boast about your product and service
• customers that bring friends with them
– necessary to anticipate customer needs
 Deming
Deming’s 14 Points on Quality Management,
“A core concept on implementing total quality management, is a set
of management practices to help companies increase their quality
and productivity.”
• Reduction in process variability by extensive use of statistics will lead to
improvement in quality and increase in productivity
• “all processes are vulnerable to loss of quality through variation: if levels
of variation are managed, they can be decreased and quality raised”
• Talked about New Climate (organisational culture)
– Joy in work
– Innovation
– Co-operation
• Win-Win approach
• He proposed a 14 point TQM programme
 Deming
14 Points
Deming’s fourteen points to help management

1. Create constancy of purpose towards improvement of product and

service.
2. Adopt the new philosophy. We can no longer live with commonly
accepted levels of delays, mistakes, defective workmanship.
3. Cease dependence on mass inspection. Require, instead statistical
evidence that quality is built in.
4. End the practice of awarding business on the basis of price tag.
5. Find problems. It is management’s job to work continually on the
system.
6. Institute modern methods of training on the job.
7. Institute modern methods of supervision of production workers. The
responsibility of foremen must be changed from numbers to quality.
Deming’s fourteen points to help management

8. Drive out fear, so that everyone may work effectively for the
company.
9. Break down barriers between departments.
10.Eliminate numerical goals, posters and slogans for the workforce
asking for new levels of productivity without providing methods.
11.Eliminate work standards that prescribe numerical quotas.
12.Remove barriers that stand between the hourly worker and his
right to pride of workmanship.
13.Institute a vigorous programme of education and retraining.
14.Create a structure in top management that will push every day on
the above thirteen points.
W E Deming – PDCA Cycle
PDCA
PDSA cycle- seven steps or phases
Analyze the Develop the
Identify the
current optimal
opportunity
process solution(s)

Standardize Study the Implement

the solution results changes

Plan for the

future.
Continuous Process Improvement cycle
Phase I Identify the Opportunity

Phase 7 Phase 2
Plan for the future Analyze the process
Act Plan

Study Do
Phase 6
Standardize the solution Phase 3
Develop the optimal solution(s)

Phae 55 Study
Phase the
Study the Phase4 Implementation
Phase
results
results 4 Implementation
 Joseph Juran
• Structure CWQM concept: Company-Wide Quality Management

• Essential for senior managers to

– involve themselves
– define the goals
– assign responsibilities
– measure progress

• Involvement of people within Quality

– Placed emphasis on training process supervision & operators
– Primary focus to reduce Cost of Quality
 Joseph Juran (2/3)
• Quality does not just happen but has to be planned,
Developed the idea of trilogy
– Quality Planning
– Quality Improvement
– Quality Control

• Conformance to specifications is necessary but not sufficient

requirement of a product.
• Fitness for use by the consumer of the targeted market
segment is an essential requirement in addition to
conformance
 Joseph Juran (3/3)
• Quality PLANNING consists of:
– Identifying customers and their needs
– Establishing optimum quality goals
– Creating measurements of quality
– Plan to meet quality goals under operating
conditions
– Produce continuing results

• Juran suggests a 10 point plan

 Juran’s 10 steps to Quality Improvement
1. Build awareness of the need and opportunity for improvement.
2. Set goals for improvement.
3. Organize to reach the goals (establish a quality council, identify
problems, select projects, appoint teams, designate facilitators).
4. Provide training.
5. Carry out projects to solve problems.
6. Report progress.
7. Give recognition.
8. Communicate results
9. Keep score.
10. Maintain momentum by making annual improvement part of the
regular systems and processes of the company.
 Philip Crosby
• Do it right the first time
• Zero Defects
– First to popularize Quality for top management
• Absolutes of QM
– Quality is defined as CONFORMANCE TO REQUIREMENTS, not as
'goodness' or 'elegance'
– The system for causing quality is PREVENTION, not appraisal –
Quality is Free
– The performance standard must be ZERO DEFECTS, not "that's
close enough"
– The measurement of quality is the PRICE OF NON-CONFORMANCE
– Cost of quality is only the measure of operational performance
 Philip Crosby - Management 14 steps to
1. improvement
Make it clear that management is committed to quality.
2. Form quality improvement teams with representatives from each department.
3. Determine where current and potential quality problems lie.
4. Evaluate the cost of quality and explain its use as a management tool.
5. Raise the quality awareness and personal concern of all employees.
6. Take actions to correct problems identified through previous steps.
7. Establish a committee for the zero defects programme.
8. Train supervisors to actively carry out their part of the quality improvement
programme.
9. Hold a ‘zero defects day’ to let all employees realize that there has been a change.
10. Encourage individuals to establish improvement goals for themselves and their
groups.
11. Encourage employees to communicate to management the obstacles they face in
attaining their improvement goals.
12. Recognize and appreciate those who participate.
13. Establish quality councils to communicate on a regular basis.
14. Do it all over again to emphasize that the quality improvement programme never
ends.
 Philip Crosby (1/3)
1. Management Commitment: Top Management must be
convinced of the need for quality and must clearly
communicate this to the entire company by written policy,
stating that the person is expected to person is expected to
perform according to the requirement or cause the
requirement to be officially changed to what the company
and the customers really need.
2. Quality Improvement Team: form a team composed of
departmental heads to oversee improvements in their
departments and in the company as a whole.
3. Quality Measurement: Establish measurement s appropriate
to every activity in order to identify areas in need of
improvement.
 Philip Crosby (2/3)
5. Quality awareness: raise quality awareness among
employees. They must understand the importance of
product conformance and the costs of non-conformance.
6. Corrective Action: Take corrective action as a result of
steps 3 and 4.
7. Zero Defects Planning: Form a committee to plan a
program appropriate to the company and its culture.
8. Supervisor’s Training: All levels of managements must be
trained in how to implement their part of the quality
improvement program.
 Philip Crosby (3/3)
9. Zero Defects Day: Schedule a day as a signal to employees that
the company has a new standard.
10. Goal Setting: Individuals must establish improvement goals for
themselves and their groups.
11. Errors Cause Removal: Employees should be encouraged to
inform management of any problem that prevents them from
performing error free network.
12. Recognition: Give public recognition, nonfinancial appreciation,
to those who meet their quality goals or perform outstandingly.
13. Quality Councils: Composed of Quality professional and team
chairpersons, quality council should meet regularly to share
experiences, problems and ideas.
14. Do It All Over Again: Repeat steps 1 to 13 in order to emphasize
the never-ending process of quality improvement.
 Cost of Quality
Prevention Cost
• Cost associated with time
spend in planning the
quality system
• Consists of the following
– Process control costs
– Information systems costs
– Training Costs
– General Management cost
Appraisal Costs
• Cost incurred on
measurement & analysis of
data in order to detect &
correct problems
• Consist of
– Cost of maintaining, testing
& inspection
– Process control costs
 Cost of Quality
Internal Failure Cost
• Incurred due to non-
conformance
• Include
– Scrap and rework costs
– Cost of corrective action
– Downgrading costs
External Failure Cost
• Occur when poor products
reach customer
• Include
– Costs of customer complaints
and returns
– Product recall costs
– Warranty claims costs
– Product liability costs
 Gurus
Comparison
1/2
Gurus Comparison – 2/2
Crosby Deming Juran
SELF READING
 Ishikawa
• Ishikawa is considered as Japan’s leading figure in
the area of Total Quality Management.
• His inspiration came from the work of Deming and Juran and, to
a lesser extent, Feigenbaum.
• He is well respected for the following contributions:
a) Quality Control Circles-he was the first to introduce this
concept and to have put it into practice successfully;
b) He is the originator of Fishbone Diagrams or Ishikawa
Diagrams which are now used worldwide in continuous
improvement to represent cause-effect analysis;
c) Ishikawa has commented that Feigenbaum approach to
Total Quality Control includes many non-specialists and
therefore the input on quality problem solving may be
limited.
 Ishikawa
• Developed several tools and techniques for application
– Ishikawa cause and effect diagram
– Defined the seven basic tools of quality management

• Simplified statistical techniques for Quality Control (QC)

• Company wide quality control (CWQC)

– quality does not only mean the quality of product, but
also of after sales service, quality of management, the
company itself and the human life
 Ishikawa Diagram
(Fishbone Diagram)
 Cause and Effect Diagram
• The cause and effect diagram is an investigative tool.
This is also called Ishikawa Diagram. Because of its
shape, the diagram is also termed as Fishbone Diagram.
• There is a systematic arrangement of all possible causes
which give rise to the effect in Ishikawa diagram. Before
taking up problem for a detailed study, it is necessary to
list down all possible causes through a brainstorming
session so that no important cause is missed. The causes
are then divided into major sources or variables.
Cause-and-Effect Diagram: Example 1
Cause-and-Effect Diagram: Example 2
Cause-and-Effect Diagram: Example 3
Measurement
Measurement Human
Human Machines
Machines
Faulty
testing equipment Poor supervision Out of adjustment

Incorrect specifications Lack of concentration Tooling problems

Improper methods Inadequate training Old / worn

Quality
Quality
Inaccurate Problem
Problem
temperature
control Defective from vendor Poor process design

Ineffective quality
Not to specifications management
Dust and Dirt Material- Deficiencies
handling problems in product design

Environment
Environment Materials
Materials Process
Process
 Ishikawa Diagram
• Diagrams which show the causes of a certain event
8 Ps (Services) 4 Ss
• Three sets of causes 1. Price (Services)

• 6 M’s (Production) 2. Promotion 1. Surroun

dings
– Machine 3. People
2. Supplier
4. Process
– Method s
5. Place/Plant 3. Systems
– Maintenance 6. Policies 4. Skills
– Manpower 7. Procedures
– Management 8. Product (or
Service)
– Materials
1.
Kaoru Ishikawa (15 points)
product quality is improved and becomes uniform. Defects
are reduced
2. reliability of goods is improved
3. cost is reduced
4. quantity of production is increased,
rational production schedules are possible
5. wasteful work and rework are reduced
6. technique is established and improved
7. inspection and testing costs are reduced
8. rational contracts between vendor/vendee
9. sales market is enlarged
10. better relationships between departments
11. false data and reports are reduced
12. freer, more democratic discussions
13. smoother operation of meetings
14. more rational repairs and installation
15. improved human relations
 QUALITY CIRCLES
• A quality circle is a group of employees from the same work area and doing
similar type of work voluntarily meet for an hour periodically either every
week or fortnightly to identify and analyze
a) Quality of work they perform
b) Working conditions

• The common number of employees for a quality circle group is about 8-10
individuals.

Pre-Requisites for successful quality circles

i. Members of Quality circles must have prior training in problem solving
ii. Top management support/attitude
iii. Actual implementation to be pre-ceded by carefully developed plan for maximum
returns.
 ORGANIZATION
8-10 members
Same area
Supervisor/moderator

PRESENTATI TRAINING
ON Group processes
Implementation Data collection
Monitoring Problem analysis

Quality Circles
PROBLEM
SOLUTION IDENTIFICATION
Problem List alternatives
results Consensus
Brainstorming

PROBLEM
ANALYSIS
Cause and effect
Data collection and
analysis
 Taguchi
– Developed concept of the ‘Loss Function’
– A quality product is a product that causes a minimal loss
(expressed in money!) to society during it's entire life.
The relation between this loss and the technical
characteristics is expressed by the loss function
– Deviation from target value causes losses
» Internal - increased cost of manufacture, increased cost of supply
» External - Customer dissatisfaction, warranty costs, loss of
reputation & ultimately loss of market
– Taguchi implies that Design has a vital Quality function
• His methodologies held ensure customer satisfaction
 Walter A Shewhart
• Pioneer of modern quality control
• “founder of the control chart” (e.g. X-bar and R chart).
• originator of the plan-do-check-act cycle.
• perhaps the first to successfully integrate statistics,
engineering, and economics.
• defined quality in terms of objective and subjective quality
– objective quality: quality of a thing independent of
people.
– subjective quality: quality is relative to how people
perceive it. (value)
 Feigenbaum
• Build it in at an earlier stage of the process.
• Armand Feigenbaum, like Deming and Juran, Achieved
visibility through his work with the Japanese.
• Unlike the latter two, he used a total quality control approach
that may very well be the forerunner of today’s TQM.
• He promoted a system for integrating efforts to develop,
maintain, and improve quality by various groups in an
organization.
• To do otherwise, according to Feigenbaum, would be to
inspect for and control quality after the fact rather than
 Imai
• Known for the development of ‘Kaizen
philosophy (1986)

• Focus of improvement activities to the factory shop

floor
 Shigeo Shingo
– “Fool-Proofing” or “Poke-Yoke”
– Source Inspection systems
– No statistical sampling is necessary
– Zero defects through good engineering and process investigation rather
than slogans and exhortations
• Poka-Yoke: mistake-proofing
– identify errors before they become defects
– stop the process whenever a defect occurs, define the source and prevent
recurrence
• 1967: source inspection + improved PY
– prevented the worker from making errors
so that defects could not occur
– Zero Quality Control
 Yoshio Kondo (b.1924)
motivation of employees is important
• Emphasised inter-relationship between
quality and people
– Creativity – joy of thinking
– Physical activity – joy of working
– Sociality – joy of sharing pleasure and pain with
colleagues
– leadership is central to implementation of TQM
 Yoshio Kondo
• Four points of action to support motivation
– when giving work instruction, clarify the true aims
of the work
– see that people have a strong sense of
responsibility towards their work
– give time for the creation of ideas
– nurture ideas and bring them to fruition
 Yoshio Kondo
• Leaders must have
– a dream (vision and shared goals)
– strength of will and tenacity of purpose
– ability to win the support of followers
– ability to do more than their followers, without
interfering when they can do it alone
– successes
– ability to give the right advice
Review of Main Ideas of the Quality Guru
• W. E. Deming:
– introduced concepts of variation to the Japanese and also a
systematic approach to problem solving, which later became
know as the Deming, PDCA or PDSA cycle.
– Also given 14 points and has summarized his 70 years
experience in his System of Profound Knowledge.

• Juran:
– Quality does not happen by accident, it must be planned,
– and quality planning is part of the trilogy of planning, control
and improvement.
– There is no shortcuts to quality
 Review of Main Ideas of the Quality Guru
• Philip Crosby
– ‘DO it right first time’ and ‘Zero defects’.
– He based his quality improvement approach on four absolutes of quality
management, the cost of quality and quality improvement process.

• Kaoru Ishikawa’s
i. 7 tools of Quality Control
ii. Company Wide Quality Control (CWQC)
iii. Quality Circle Movement

• Shiegeo Shingo
– Poka-Yoke system to ensure ‘zero-defects’ in production by preventive
measures.
 Review of Main Ideas of the Quality Guru
• Yoshio Kondo:
– identifies that quality is more compatible with human
nature than cost and productivity.
– He developed a four point approach to motivation which
makes it possible for work to be reborn as a creative
activity.

• Taiichi Ohno:
– JIT (Just-in-time)
– Lean Manufacturing
– Seven form of WASTE (MUDA)
Key Contributors to Quality Management
Contributor Known for
Deming 14 points; special & common causes of
variation

Juran Quality is fitness for use; quality trilogy

Feignbaum Quality is a total field

Crosby Quality is free; zero defects

Ishikawa Cause-and effect diagrams; quality

circles

Taguchi Taguchi loss function

Ohno and Continuous improvenment

Quali ty
Shingo
 TQM Key 'Drivers' for TQM:
• Believe in, foster and support teamwork.
• Be committed to the problem-solving process; use it and
let data drive decisions.
• Seek employee input before you make decisions.
• Believe that the best way to improve the quality of work
or service is to ask and to listen to employees who are
doing the work.
• Strive to develop respect and trust among employees.
• Have a customer orientation and focus towards
employees and citizens.
 TQM
• Manage on the behaviour of 95 percent of the employees, not
the 5 percent who cause problems.
• Improve systems and examine processes before blaming people.
• Avoid top-down, power-oriented decision-making whenever
possible.
• Encourage creativity through risk-taking and be tolerant of honest
mistakes.
• Be a facilitator and coach. Develop an open atmosphere that
encourages the provision and acceptance of feedback.
• With teamwork, develop with employees agreed goals and a plan
to achieve them.