Total Quality Management

Agenda
 Quality, Evolution of quality management & gurus  TQM
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What, Why Concepts – Cost of quality, QFD, Benchmarking, Concurrent Engineering Tools – 7 quality tools, 7 management tools Team issues Case: Punjab Tractors Benefits of TQM, Sins of TQM Other quality initiatives Future of TQM

What is Quality?
l Is a product’s or service’s ability to satisfy the needs and expectations of the customer l Quality is “fitness for use” - Joseph Juran l Quality is “conformance to requirements” - Philip Crosby

Quality Gurus
l Edward Deming
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Deming’s 14 points Constantly improve people, processes and products and services Focus on long term needs than short term profits Abolish MBO and Performance Appraisal Conformance and non-conformance rather than low or high quality Zero defect program - do it right, first time, every time. Cost of quality < 2.5% of sales, reduce through prevention Quality policy statement Quality planning, quality control, quality improvement – Juran Trilogy

l Philip Crosby
q q q q

 Joseph Juran
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Quality Gurus…
• William Conway
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3 categories of waste – time, material, capital

• Kaoru Ishikawa
Quality Circles (QC), Ishikawa Diagram (Fishbone Diagram)

• Walter A. Shewart
Concepts of SQC Germ Theory of Management- elimination of the virus of variability.

• Genichi Taguchi
Design of Experiments

Evolution of Quality Management
Inspection Quality Control
Salvage, sorting, grading, blending, corrective actions, identify sources of non-conformance Develop quality manual, process performance data, selfinspection, product testing, basic quality planning, use of basic statistics, paperwork control.

Quality Assurance

Quality systems development, advanced quality planning, comprehensive quality manuals, use of quality costs, involvement of non-production operations, failure mode and effects analysis, SPC. Policy deployment, involve supplier & customers, involve all operations, process management, performance measurement, teamwork, employee involvement.

TQM

What is TQM?
Constant drive for continuous improvement and learning. Management by fact Concern for employee involvement and development

Results Focus

Passion to deliver customer value

Organisation response ability

Actions not just words (implementation)

Process Management

Partnership perspective (internal/external)

Why TQM?
l So that the whole organisation works towards world-class standards. l Addresses issues ranging from management of quality at the suppliers' end to the way the finished products are delivered to the customers. l Does not focus on the measurement of results; it focuses on the management of the processes and the measures used. l In recent times, even the process of business strategy is included in TQM.

Institutionalization of TQM
 Top management is vital to the success of TQM implementation.  Personal leadership and example is very important; managers need to apply TQM in their daily work and get the people to think about and use the concepts and tools.  TQM must
 

be built into systems processes that involve planning and rewards. become an invisible part of the ongoing belief system of the organization. be preceded by a cultural change

Cost of Quality
Cost of Quality
Cost of Conformance Cost of Cost of lost Non-Conformance Opportunities
Cancellation of Orders

Cost of Prevention
Training, QC, QA

Cost of Appraisal
Inspection, Checking, Audits

Cost of Internal Failure
Scrap, Rework

Cost of External Failure
Warranty, Installation, Service Costs

Cost of Exceeding Requirements
Redundant Documenting

Total Cost of Quality Cost of Lost Opportunities Prevention Costs Cost Cost of Exceeding Requirements Appraisal Cost

Prevention Cost

Time

TQM Concepts

Quality Function Deployment
Links customer needs with design, development, engineering, manufacturing and services. Major TQM tool which is system and process oriented. Achieve and display the results in the common matrix diagram presenting one set of ideas against those of another, thereby evaluating their relationships.
Quality systems thinking + Knowledge Understanding & satisfying Customer requirements

QFD
Maximizing positive Quality that adds value

Relative Importance

Correlation Matrix
Design Requirements

Customer Requirements

How

Customer Rating
C O M P E T I T I V E A S S E S S M E N T S

What

Relationship Matrix

Objective Target Values Competitive Benchmark Technical Absolute Importance Relative

How much Competitive Assessment Action Ranking

Benchmarking
 Comparison process to continuously identify the best business practices anywhere and adopt them to the organization.  Valuable TQM tool which accomplishes objectives of customer satisfaction and continuous improvement.  Motivates an organization & fosters a new in-depth understanding about the functioning of the organization.  Reduces cycle time as small or big tasks get done faster.  Constantly redefines standards which must be achieved to remain competitive.  Increases productivity.

Deming Wheel applied to benchmarking
• Implement improvement
• Convert goals to action plans

•Management commitment •Resource commitment •Develop plan

IMPLEMENT

PLAN

• Convert gap to targets and operational goals

INTEGRATE

•Develop process measure •Measure ANALYZE •Data identification •Target Companies •Site visits •Gather Data

Concurrent Engineering
 Process in which appropriate disciplines are committed to work interactively to conceive, approve, develop and implement product programs that meet pre-determined objectives .  Re-unites technical and non technical disciplines such as engineering, marketing and accounting, focusing on satisfying the customer, the representatives work together in defining the product to be manufactured.  CE team must be backed by fundamental training on TQM.  One of the prime motivations for a concurrent engineering approach to product development is a desire to shorten the total time that it takes to bring a product to the marketplace.

Concurrent Engineering…

Some Quality Tools of TQM
l Flow Charts l Run Charts l Histograms l Control Charts (Statistical Process Control) l Brainstorming and related tools l Fishbone Diagram l Pareto Chart

Flow Charts

Run Charts
13 12 11 10 9 8 0 2 4 6 8 10 12 14

Control Charts
M E A S U R E M E N T

Upper Control Limit (UCL)

Lower Control Limit (LCL)
TIME

Cause & Effect Diagrams…

Pareto Charts
100

Cumulative %
80

% of 60 faults
40 20 0

56

18

10

8

7

1

Causes

Team Roles and Responsibilities

Mission of TQM process improvement teams
l Defining the process in detail l Eliminating unnecessary activities l Developing measures of performance l Establishing performance baselines l Setting improvement goals and changing the processes to meet them

TQM Teams
l Composition of team
l Core members should represent key process activities l Sometimes include process supplier and process customer

l Team Training
l Just in Time Training - learning is immediately reinforced through application l 7 QC tools, 7 Management tools, Benchmarking, Quality Function Deployment, Concurrent Engineering l Central productivity or TQM departments for communications, facilitation and training; key middle managers trained.

TQM and Six Sigma…
 Both work best with strong internal sponsorship from senior management.  Cultural change in the adopting organisation is a positive by-product of both methodologies.  Both use statistical methods for measurement and control. They rely on data - not opinion - to justify change.  Both value the people working within systems, who ultimately drive quality. Both establish the customer (whether internal or external) as the final arbiter of quality.  Problem prevention, not mere detection, is the aim for both TQM and Six Sigma.

References
l T.J. Cartin, Principles & Practices of TQM

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