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
Deming’s “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 delight the
customer.
Greg Hughes
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 people’s 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
“ I met the requirements”

ent
ir em
R equ
c ts
OEM du
Pro lts
r e su
o tR
es
T
Supplier

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! Let’s create
the best Vehicle
and
Systems
SOR 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
Good Ideas, Good Implementation are the goals of everyone
in the automotive industry
15
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 RUN CHART
R
A
N
S
A
C
T
I
O
N

T
I
M
E Time of Day
Data Collected
From Check Sheet
Time Range (in secs) Frequency
44-50 1
51-57 4
58-64 17
65-71 12
72-78 14
79-85 19
86-92 18
93-99 11
100-106 3
107-113 1
A Histogram
89 18
96 11
20 103 3
47
110 1
18
54

16
61
14
68
12
75
10
82
8
89
6

96
4

2 103

0 110
47 54 61 68 75 82 89 96 103 110
Be careful of Cell Size
47 1 50
35 54 4 64
30 61 17 78
25 68 12
20 5092
75 14 106
15 64
10 82 19
78
5 89 18
0 96 11 92

50103 64 78 923 106 106

110 1
Pareto Chart (80-20 Rule)
47 1
90 54 4 120%
80 61 17
100%
70 68 12
60 75 14 80%
50
82 19 60%
40 Series2
89 18
30 40% Series1
20 96 11
103 3 20%
10
0 110 1 0%
1 2 3 4 5 6 7
85

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
Too
Training many
steps
Control
Attitude functions

Processing
Delays
Too much
downtime

Not user
Slow friendly
response
time

Computers
Fishbone Diagram aka
Cause & Effect Diagram
 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 sub-causes in
each category
 Typical Application:
◦ determine the real cause of the problem
◦ check the potential effects of a solution

Fishbone Diagrams Explained

5 Why’s problem solving technique
 Mizenboushi and GD3 Concepts
Robust Design
- keep Good Designs
Good - minimize change
Design
Prevent Problems Find Problems
GD3

Good Good
Discussion Dissection
DRBFM DRBTR
Address any potential issues up stream at Design Phase 28
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?

31
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
32
Design Review By Failure Modes (DRBFM)
Basic Concepts
Before and After – Description of the Change Point
Describe the Potential failure modes
Describe the Design Countermeasures
Target Testing of the change points and Countermeasures Only

Design techniques to uncover defects at

the design stage – Up stream
 DRBFM DRBTR
Design
Design Verify/Validate
Verify/Validate Design
Design

Changes

Test Result (Change in product

due to test: Cracks,Leaks, etc.)

Focus on Implementation
34
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.

39
 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