Total Quality Management - Introduction

Total Quality
Management
Unit I
Deborah Sharon. S, Asst. Prof,
REC

Total Quality Management
 Total - Made up of the whole
 Quality - Degree of excellence a product
or service provides
 Management – Act, Art or manner of
handling, controlling, directing, etc.
REC

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Definition
As defined by the International Organization for
Standardization (ISO):
"TQM is a management approach for an
organization, centered on quality, based on the
participation of all its members and aiming at
long-term success through customer satisfaction,
and benefits to all members of the organization
and to society." ISO 8402:1994
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Evolution of Quality
Craftsman
Foreman
Inspection
SQC
TQC
TQC &CWQC
TQM
Inspection
Quality Control
Quality Assurance
Total Quality Management
1900 1920 1940 1960 1980 1990 2000
Evolution
Years
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1975 1980 1985 1990 1995 2000
Operation Customers Innovations
Quality of
Work life
Quality
Circle
Productivity
Employee
Involvement
Quality
Employees
Empowerment
Total
Quality
Self Directed
Teams
TQC/TQM
Self Directed/
Managed
Teams
Evolution of quality –Means &
Focus
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History of TQM
TQM involves methodology for continually
improving the quality of all processes, it draws
on a knowledge of the principles & practices of:
• The behavioural sciences
• The analysis of quantitative & non-quantitative
data
• Economics theories
• Process analysis
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TQM Timeline
1920s: Some of the first seeds of quality
management were planted as the principles
of scientific management swept through U.S.
industry.
1930s:Walter Shewhart developed the
methods for statistical analysis and control of
quality.
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TQM Timeline
1950s:
• W. Edwards Deming taught methods for
statistical analysis and control of quality to
Japanese engineers & executives
• Joseph M. Juran taught the concepts of
controlling quality and managerial
breakthrough
• Armand V. Feigenbaum’s book Total Quality
Control was published
• Philip B. Crosby’s promotion of zero defects
paved the way for quality improvement in
many companies
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TQM Timeline
1968: Kaoru Ishikawa’s synthesis of the philosophy
contributed to Japan’s ascendancy as a quality
leader
Today:
 TQM is the name for the philosophy of a broad and systemic
approach to managing organizational quality.
 Quality standards such as the ISO 9000 Series and quality award
programs such as the Deming Prize and the Malcolm Baldridge
National Quality Awards specify principles and processes that
comprise TQM.
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Quality
ISO 9000: “Degree to which a set of
inherent characteristics fulfills
requirements.”
 Degree : Poor / Good / Excellent
 Inherent : Existing / Permanent
 Characteristics : Quantitative / Qualitative
 Requirements : Stated Expectations
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9 Dimensions of Quality
 Performance – Primary product
characteristics
 Features – Secondary characteristics
 Conformance – Meeting specifications or
industry standards
 Reliability – Consistency of Performance
over time
 Durability – Useful life includes repair
 Service – Resolution of problems and
complaints; ease of repair
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9 Dimensions of Quality
 Response – Human to human interface
(Courtesy of the dealer)
 Aesthetics – Sensory characteristics
(Finish of a product)
 Reputation – Past performance and other
intangibles
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Basic Concepts of TQM
 Committed and Involved Management
 Unwavering focus on customer (Internal &
External)
 Involvement and Utilization of work force
 Continuous improvement of process
(Business & Production)
 Treat Suppliers as Partners
 Establish Performance Measures for
Process
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TQM Framework
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Gurus of TQM : Shewhart
 Workplace : Western Electric
& Bell Telephone Laboratories
 Contributions : Control chart
theory with control limits ;
PDSA Cycle
 Book : Economic Control of
Quality of Manufactured
Product (1931)
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Gurus of TQM : Deming
 Protégé of Shewhart
 Work : Taught Statistical
Process Control & Importance
of Quality to CEOs of Japan
 Contributions : 14 Principles
of Deming
 Books : Out of the Crisis ;
Quality, Productivity and
Competitive Position
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Gurus of TQM : Juran
 Workplace : Western
Electric
 Contributions : Trilogy ; All
levels commitment to
Quality, Project
improvement based on ROI
 Book : Juran Quality
Control Handbook
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Gurus of TQM : Feigenbaum
 Contributions : TQC necessary to achieve
productivity, market penetration &
competitive advantage; Quality begins –
identifying customer requirements and ends
– product / service in the hands of satisfied
customer; Quality Principles : Management
involvement, Employee involvement, First
line supervision leadership, Company Wide
Quality Control.
 Book : Total Quality Control
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Gurus of TQM : Ishikawa
 Studied under Deming,
Juran and Feigenbaum
 Contributions :Adapted TQC
for Japanese; Development
of Cause-Effect Diagram
(Ishikawa Diagram);
Quality Circle Concept (to
Identify & Solve quality
problems)
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Gurus of TQM : Crosby
 Contributions : Doing it right
the first time; 4 absolutes of
Quality Management (Quality
is conformance to
requirements, Prevention of
nonconformance is the
objective not appraisal, the
performance standard is zero
defects and the measurement
of quality is the cost of
nonconformance)
 Books : Quality is free (1979);
Quality without Tears (1984)
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Gurus of TQM : Taguchi
 Contributions : Developed
Loss Function concept that
combines cost, target and
variation into one metric;
 Taguchi’s Philosophy :
Robust design of
parameters and tolerances
(built on simplification and
use of traditional design of
experiments
REC

Deming Cycle (PDCA)
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14 Principles of Deming
 Create and Publish the Aims and
Purposes of the Organization
 Constant Commitment
 Include investors, customers, suppliers,
employees, the community and a quality
philosophy
 Learn the new philosophy
 Seek never ending improvement
 Refuse to accept nonconformance
 Customer satisfaction is number one priority
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 Understand the Purpose of Inspection
◦ Improve Process & Reduce Cost
 Stop Awarding Business Based on Price
Alone
◦ Price has no meaning without quality
◦ Suppliers – Develop longterm relationship
based on loyalty and trust
 Improve Constantly and Forever the
System
◦ Prevent problems before they happen
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Institute Training
Employee orientation to organization’s
philosophy
Teach and Institute Leadership
Train Supervisors
Drive out Fear, Create Trust and Create a
climate for Innovation
Encourage open, effective communication and
teamwork
Manage for success
Treat People with Dignity
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 Optimize the efforts of Teams, Groups,
and Staff Areas
◦ Internal and External Barriers to be broken
down by long term perspective of management
by working together with each sect
◦ Multifunctional team – excellent method
 Eliminate Exhortations for the workforce
◦ Eliminate Numerical Quotas for the workforce
(coz they work for quantity rather than quality;
replace with statistical methods for process
control)
◦ Eliminate Management by Objective (improve
the process capability)
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 Remove Barriers that Rob People of Pride of
Workmanship
◦ Relate to organization mission
◦ Don’t blame for system faults
◦ Inadequate training
◦ Inadequate or inefficient equipment provided for
work
 Encourage Education and Self Improvement
for Everyone
◦ Train (long term commitment by management and
Retrain(changing environment)
 Take Action to Accomplish the Transformation
◦ Create corporate structure to implement philosophy
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Juran’s Trilogy
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Quality Planning – Juran’s Trilogy
 Establish Quality Goals
 Identify who the customers are
 Determine the needs of customers
 Develop Product features that respond to
customers’ needs
 Develop Processes able to produce the
product features
 Establish Process Controls
 Transfer the plans to operating forces
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Quality Control – Juran’s Trilogy
 Evaluate actual performance
 Compare actual performance with quality
goals
 Act on the difference
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Quality Improvement – Juran’s
Trilogy
 Prove the need
 Establish the Infrastructure
 Identify Improvement projects
 Establish Project teams
 Provide the teams with resources, training
and motivation to
◦ Diagnose Cause
◦ Stimulate Remedies
◦ Establish controls to continue with the gain
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Vital Few & Trivial Many – Juran
Pareto analysis
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Crosby’s 14 Principles
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Contribution of Crosby
 Doing it right the first time
 4 absolutes of Quality Management
◦ Quality is conformance to requirements
◦ Prevention of nonconformance is the objective
not appraisal
◦ The performance standard is zero defects and
◦ The measurement of quality is the cost of
nonconformance
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Six C’s of Crosby
 Comprehension
 Commitment
 Competence
 Communication
 Correction
 Continuance
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Prevention Process - Crosby
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Obstacles / Barriers of TQM
 Lack of Management Commitment
 Inability to Change Organizational Culture
 Improper Planning
 Lack of Continuous Training and Education
 Incompatible Organizational Structure and
Isolated Individuals and Departments
 Ineffective Measurement Techniques and
Lack of Access to Data and Results
 Paying Inadequate Attention to Internal
and External Customers
 Inadequate Use of Empowerment and
Teamwork
 Failure to Continually Improve
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Benefits of TQM –
Certified Manager of Quality /
Organizational Excellence Handbook
Direct and indirect benefits:
 Strengthened competitive
position
 Adaptability to changing or
emerging market conditions
and to environmental and
other government
regulations
 Higher productivity
 Enhanced market image
 Elimination of defects and
waste
 Reduced costs and better
cost management
 Higher profitability
 Improved customer focus
and satisfaction
 Increased customer loyalty
and retention
 Increased job security
 Improved employee morale
 Enhanced shareholder and
stakeholder value
 Improved and innovative
processes
REC

Total Quality Management - Introduction

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