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TOTAL QUALITY
MANAGEMENT
© Operational Excellence Consulting. All rights reserved.
© Operational Excellence Consulting
LEARNING OBJECTIVES
2
Identify key leaders in the field of quality
and their philosophies
2
Identify characteristics of the TQM
philosophy
3
Explain the meaning of Total Quality
Management (TQM)
1
Understand the importance of process
management and measuring the cost of
quality
4
Describe Total Quality leadership
attitudes and behaviors
6
Identify methods and tools for Total
Quality
7
Describe the key business excellence
and quality management models
5
Define the steps for TQM
implementation
8
NOTE: This is a PARTIAL PREVIEW.
To download the complete presentation, please
visit: https://www.oeconsulting.com.sg
© Operational Excellence Consulting
CONTENTS
3
Customer Focus
2
Employee Involvement & Empowerment
3
Introduction to TQM
1
Process Management
4
Cost of Quality
5
Total Quality Leadership
7
TQM Implementation
8
Business Excellence & Quality
Management Models
6
Methods & Tools for Total Quality
9
Key Takeaways
10
© Operational Excellence Consulting
“
Quality is not an act, it is a
habit.”
ARISTOTLE
4
© Operational Excellence Consulting
CHANGING SCENARIO OF ORGANIZATIONS
5
TODAY TOMORROW
YESTERDAY
Continuous Improvement Breakthrough Improvement
Incremental Improvement
Cost Management Value Creation
Cost Reduction
Use of Information Use of Knowledge
Use of Data
QCs Across Departments IQCs Across Organizations
QCs at Rank & File
A Quality Workforce A World-class Workforce
A Committed Workforce
Quality Management Innovation & Quality
Quality Control
Training for Development Training for Employability
Training for Employment
A Quality Mindset An Innovation Mindset
Problem-solving Mindset
Where is your organization now?
© Operational Excellence Consulting
THE EVOLUTION OF TOTAL QUALITY MANAGEMENT
6
Business Excellence
Models
Learning
Organizations
1940’s 1960’s 1980’s 2000’s
1900’s
Industrial
Engineering
Business Process
Reengineering
Lean &
Six Sigma
Quality
System
Total Quality
Management
Design of
Experiments
Statistical
Process
Control
Quality
Control
Benchmarking &
Best Practices
© Operational Excellence Consulting
WHAT IS TOTAL QUALITY MANAGEMENT (TQM)?
7
A management philosophy
that Quality and Customers
are fundamental business
principles for the company
Quality means providing our
external and internal
customers with products and
services that fully satisfy their
requirements
Aims at continuous
improvement through
systematic company-wide
employee involvement that will
deliver the best product and
service with total customer
satisfaction at the lowest cost
© Operational Excellence Consulting
TQM IS NOT A FAD
8
Successful Lean organizations in
Japan are built on a strong
foundation of TQM.
© Operational Excellence Consulting 9
CHARACTERISTICS OF TQM
Focuses on meeting
customers’ needs, by
providing quality products and
services at a reasonable cost
Focuses on continuous
improvement
Recognizes role of everyone
in the organization
Views organization as an
integrated system with a
common aim
Focuses on the way tasks are
accomplished
Emphasizes teamwork
© Operational Excellence Consulting
WHAT TQM IS NOT
10
● A flavor of the month
● The job of the QA department
● 100 percent inspection
● An ISO 9000 quality
management system
● Churning out tons of Standard
Operating Procedures
● A machine vision system
● Requiring supervisors to
constantly “police” the operators
● A rigorous Six Sigma Green Belt
certification program
● Another one of those “Extra
Curricula Activities”
© Operational Excellence Consulting
QUALITY IN VARIOUS INDUSTRIES
11
AIRLINES
§ On-time
§ Comfortable
§ Low-cost service
HEALTHCARE
§ Correct diagnosis
§ Low waiting time
§ Low cost
POSTAL SERVICES
§ Fast delivery
§ Correct delivery
§ Cost containment
CONSUMER PRODUCTS
§ Defect-free
§ Properly made
§ Cost effective
INSURANCE
§ Payout on-time
§ Fast processing
§ Reasonable cost
TELCO
§ Low outage
§ Low-cost service
§ Customer service
© Operational Excellence Consulting
IMPETUS FOR IMPLEMENTING TQM
12
INCREASED
COMPETITIVENESS
CHANGING
PRODUCT MIX
CUSTOMER
DEMANDS
GLOBALLY
INTEGRATED ECONOMY
Impetus
for TQM
© Operational Excellence Consulting 13
THE QUALITY GURUS
THE QUALITY
PIONEERS
J. M. Juran
A. V. Feigenbaum
W. E. Deming
P. B. Crosby
G. Taguchi
K. Ishikawa
© Operational Excellence Consulting
“
Quality comes not from
inspection, but from
improvement of the
production process.”
W. EDWARDS DEMING
14
© Operational Excellence Consulting
DEMING’S 14 POINTS FOR TQM
15
1
Create constancy of purpose for improving products
and services. 8 Drive out fear.
2 Adopt the new philosophy. 9 Break down barriers between staff areas.
3
Cease dependence on inspection to achieve
quality. 10
Eliminate slogans, exhortations and targets for the
workforce.
4
End the practice of awarding business on price
alone; instead, minimize total cost by working with a
single supplier.
11
Eliminate numerical quotas for the workforce and
numerical goals for management.
5
Improve constantly and forever every process for
planning, production and service. 12
Remove barriers that rob people of pride of
workmanship, and eliminate the annual rating or
merit system.
6 Institute training on the job. 13
Institute a vigorous program of education and self-
improvement for everyone.
7 Adopt and institute leadership. 14
Put everybody in the company to work
accomplishing the transformation.
© Operational Excellence Consulting
“
All improvement happens
project by project and in no
other way.”
JOSEPH M. JURAN
16
© Operational Excellence Consulting
JURAN TRILOGY – QUALITY PLANNING, QUALITY CONTROL & QUALITY
IMPROVEMENT
17
Quality
Improvement
Time
Original Zone of
Quality Control
New Zone of
Quality Control
Cost
of
Poor
Quality
Sporadic Spike
Chronic Waste
Quality Planning Quality Control (During Operations)
Lessons Learned
Source: J. M. Juran
© Operational Excellence Consulting
JURAN’S 10 STEPS TO QUALITY IMPROVEMENT
18
Set goals for improvement
2
Organize to meet goals that have been
set
3
Build awareness of both the need for
improvement and opportunities for
improvement
1
Provide training
4
Implement projects aimed at solving
problems
5
Give recognition
7
Communicate results
8
Report progress
6
Keep score
9
Maintain momentum by building
improvement into company’s regular
systems
10
Source: J. M. Juran
© Operational Excellence Consulting
“
Quality has to be caused,
not controlled.”
PHILIP B. CROSBY
19
© Operational Excellence Consulting
CROSBY’S FOUR ABSOLUTES OF QUALITY
20
Quality performance standard is zero
defects. Errors should not be
tolerated.
Quality comes from prevention,
which is a result of training,
discipline, example, leadership and
more.
Quality measurement is the price of
non-conformance.
Quality means conformance to
requirements.
1 2
4 3
© Operational Excellence Consulting
CROSBY’S 14 STEPS TO QUALITY IMPROVEMENT
21
1
Make it clear that management is committed to
quality for the long term. 8
Train supervisors to carry out their responsibilities in
the quality program.
2 Form cross-departmental quality teams. 9
Hold a Zero Defects Day to ensure all employees
are aware there is a new direction.
3 Identify where current and potential problems exist. 10
Encourage individuals and teams to establish both
personal and team improvement goals.
4
Assess the cost of quality and explain how it is used
as a management tool. 11
Encourage employees to tell management about
obstacles they face in trying to meet quality goals.
5
Increase the quality awareness and personal
commitment of all employees. 12 Recognize employees who participate.
6 Take immediate action to correct problems identified. 13
Implement quality councils to promote continual
communication.
7 Establish a zero defects program. 14
Repeat everything to illustrate that quality
improvement is a never-ending process.
© Operational Excellence Consulting
“
As with many other things,
there is a surprising amount
of prejudice against quality
control, but the proof of the
pudding is still in the eating.”
KAORU ISHIKAWA
22
© Operational Excellence Consulting
ISHIKAWA’S 6 PRINCIPLES FOR QUALITY TRANSFORMATION
23
Quality first – not short-term profit
first.
1
Using facts and data to make
presentations – utilization of
statistical methods.
4
Consumer orientation – not
producer orientation. Think from
the standpoint of the other party.
2
Respect for humanity as a
management philosophy – full
participatory management.
5
The next process is your customer
– breaking down the barrier of
sectionalism.
3 Cross-function management.
6
Source: Kaoru Ishikawa
© Operational Excellence Consulting
COMMONALITY OF THEMES OF QUALITY GURUS
24
Quality Cannot
Be Inspected In
Leadership
Commitment
Quality First
Approach
Total Employee
Involvement
A program for quality
requires organization-
wide efforts and long
term commitment,
accompanied by the
necessary investment
in training
Inspection is never
the answer to quality
improvement, nor is
“policing”
Involvement of
leadership and top
management is
essential to the
necessary culture of
commitment to quality
Quality come first,
before schedules and
costs
© Operational Excellence Consulting 25
ISO 9001 QUALITY MANAGEMENT PRINCIPLES
1.
Customer
Focus
2.
Leadership
3.
Engagement of
People
4.
Process
Approach
5.
Improvement
7.
Relationship
Management
QUALITY
MANAGEMENT
PRINCIPLES
6.
Evidence-based
Decision Making
© Operational Excellence Consulting
TRADITIONAL INSPECTION IS A POOR SUBSTITUTE FOR QUALITY
26
Traditional 100% inspection does not
provide 100% defect-free products.
ACTION!
© Operational Excellence Consulting
1. Individually, count the number of ‘f’s in the following
paragraph:
The necessity of training farm hands for first-class farms in the
fatherly handling of farm livestock is foremost in the minds of
farm owners. Since the forefathers of the farm owners trained
the farm hands for first-class farms in the fatherly handling of
farm livestock, the farm owners feel they should carry on with
the family tradition of training farm hands of first-class farms in
the fatherly handling of farm livestock because they believe it
is the basis of good fundamental farm management.
2. How many ‘f’s have you counted? Has everyone got the same
number? Can quality be inspected in? Is it easy to catch
defects?
ACTIVITY 1: THE INSPECTION EXERCISE
27
Time allowed:
1 min
© Operational Excellence Consulting
TQM IS A PARADIGM SHIFT
28
Traditional Organization TQM Organization
Strategy Profit-focused Customer Focus
Structure Hierarchical Flat and Flexible
System Piece-meal Integrated and Aligned
Style Top-down Top-down and Bottom-up
Staff Organized by Functions Organized by Teams
Skills Narrow Broad
Shared Values Less Congruent / Reactive More congruent / Proactive
© Operational Excellence Consulting
TQM IMPERATIVES
29
TQM
IMPERATIVES
Management
Commitment
Customer
Focus
Management-
By-Fact
Teamwork
Continuous
Improvement
© Operational Excellence Consulting
Operational Excellence Consulting is a management
training and consulting firm that assists organizations
in improving business performance and effectiveness.
Based in Singapore, the firm’s mission is to create
business value for organizations through innovative
design and operational excellence management
training and consulting solutions. For more
information, please visit www.oeconsulting.com.sg
ABOUT OPERATIONAL EXCELLENCE CONSULTING

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Total Quality Management (TQM)

  • 1. TOTAL QUALITY MANAGEMENT © Operational Excellence Consulting. All rights reserved.
  • 2. © Operational Excellence Consulting LEARNING OBJECTIVES 2 Identify key leaders in the field of quality and their philosophies 2 Identify characteristics of the TQM philosophy 3 Explain the meaning of Total Quality Management (TQM) 1 Understand the importance of process management and measuring the cost of quality 4 Describe Total Quality leadership attitudes and behaviors 6 Identify methods and tools for Total Quality 7 Describe the key business excellence and quality management models 5 Define the steps for TQM implementation 8 NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg
  • 3. © Operational Excellence Consulting CONTENTS 3 Customer Focus 2 Employee Involvement & Empowerment 3 Introduction to TQM 1 Process Management 4 Cost of Quality 5 Total Quality Leadership 7 TQM Implementation 8 Business Excellence & Quality Management Models 6 Methods & Tools for Total Quality 9 Key Takeaways 10
  • 4. © Operational Excellence Consulting “ Quality is not an act, it is a habit.” ARISTOTLE 4
  • 5. © Operational Excellence Consulting CHANGING SCENARIO OF ORGANIZATIONS 5 TODAY TOMORROW YESTERDAY Continuous Improvement Breakthrough Improvement Incremental Improvement Cost Management Value Creation Cost Reduction Use of Information Use of Knowledge Use of Data QCs Across Departments IQCs Across Organizations QCs at Rank & File A Quality Workforce A World-class Workforce A Committed Workforce Quality Management Innovation & Quality Quality Control Training for Development Training for Employability Training for Employment A Quality Mindset An Innovation Mindset Problem-solving Mindset Where is your organization now?
  • 6. © Operational Excellence Consulting THE EVOLUTION OF TOTAL QUALITY MANAGEMENT 6 Business Excellence Models Learning Organizations 1940’s 1960’s 1980’s 2000’s 1900’s Industrial Engineering Business Process Reengineering Lean & Six Sigma Quality System Total Quality Management Design of Experiments Statistical Process Control Quality Control Benchmarking & Best Practices
  • 7. © Operational Excellence Consulting WHAT IS TOTAL QUALITY MANAGEMENT (TQM)? 7 A management philosophy that Quality and Customers are fundamental business principles for the company Quality means providing our external and internal customers with products and services that fully satisfy their requirements Aims at continuous improvement through systematic company-wide employee involvement that will deliver the best product and service with total customer satisfaction at the lowest cost
  • 8. © Operational Excellence Consulting TQM IS NOT A FAD 8 Successful Lean organizations in Japan are built on a strong foundation of TQM.
  • 9. © Operational Excellence Consulting 9 CHARACTERISTICS OF TQM Focuses on meeting customers’ needs, by providing quality products and services at a reasonable cost Focuses on continuous improvement Recognizes role of everyone in the organization Views organization as an integrated system with a common aim Focuses on the way tasks are accomplished Emphasizes teamwork
  • 10. © Operational Excellence Consulting WHAT TQM IS NOT 10 ● A flavor of the month ● The job of the QA department ● 100 percent inspection ● An ISO 9000 quality management system ● Churning out tons of Standard Operating Procedures ● A machine vision system ● Requiring supervisors to constantly “police” the operators ● A rigorous Six Sigma Green Belt certification program ● Another one of those “Extra Curricula Activities”
  • 11. © Operational Excellence Consulting QUALITY IN VARIOUS INDUSTRIES 11 AIRLINES § On-time § Comfortable § Low-cost service HEALTHCARE § Correct diagnosis § Low waiting time § Low cost POSTAL SERVICES § Fast delivery § Correct delivery § Cost containment CONSUMER PRODUCTS § Defect-free § Properly made § Cost effective INSURANCE § Payout on-time § Fast processing § Reasonable cost TELCO § Low outage § Low-cost service § Customer service
  • 12. © Operational Excellence Consulting IMPETUS FOR IMPLEMENTING TQM 12 INCREASED COMPETITIVENESS CHANGING PRODUCT MIX CUSTOMER DEMANDS GLOBALLY INTEGRATED ECONOMY Impetus for TQM
  • 13. © Operational Excellence Consulting 13 THE QUALITY GURUS THE QUALITY PIONEERS J. M. Juran A. V. Feigenbaum W. E. Deming P. B. Crosby G. Taguchi K. Ishikawa
  • 14. © Operational Excellence Consulting “ Quality comes not from inspection, but from improvement of the production process.” W. EDWARDS DEMING 14
  • 15. © Operational Excellence Consulting DEMING’S 14 POINTS FOR TQM 15 1 Create constancy of purpose for improving products and services. 8 Drive out fear. 2 Adopt the new philosophy. 9 Break down barriers between staff areas. 3 Cease dependence on inspection to achieve quality. 10 Eliminate slogans, exhortations and targets for the workforce. 4 End the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier. 11 Eliminate numerical quotas for the workforce and numerical goals for management. 5 Improve constantly and forever every process for planning, production and service. 12 Remove barriers that rob people of pride of workmanship, and eliminate the annual rating or merit system. 6 Institute training on the job. 13 Institute a vigorous program of education and self- improvement for everyone. 7 Adopt and institute leadership. 14 Put everybody in the company to work accomplishing the transformation.
  • 16. © Operational Excellence Consulting “ All improvement happens project by project and in no other way.” JOSEPH M. JURAN 16
  • 17. © Operational Excellence Consulting JURAN TRILOGY – QUALITY PLANNING, QUALITY CONTROL & QUALITY IMPROVEMENT 17 Quality Improvement Time Original Zone of Quality Control New Zone of Quality Control Cost of Poor Quality Sporadic Spike Chronic Waste Quality Planning Quality Control (During Operations) Lessons Learned Source: J. M. Juran
  • 18. © Operational Excellence Consulting JURAN’S 10 STEPS TO QUALITY IMPROVEMENT 18 Set goals for improvement 2 Organize to meet goals that have been set 3 Build awareness of both the need for improvement and opportunities for improvement 1 Provide training 4 Implement projects aimed at solving problems 5 Give recognition 7 Communicate results 8 Report progress 6 Keep score 9 Maintain momentum by building improvement into company’s regular systems 10 Source: J. M. Juran
  • 19. © Operational Excellence Consulting “ Quality has to be caused, not controlled.” PHILIP B. CROSBY 19
  • 20. © Operational Excellence Consulting CROSBY’S FOUR ABSOLUTES OF QUALITY 20 Quality performance standard is zero defects. Errors should not be tolerated. Quality comes from prevention, which is a result of training, discipline, example, leadership and more. Quality measurement is the price of non-conformance. Quality means conformance to requirements. 1 2 4 3
  • 21. © Operational Excellence Consulting CROSBY’S 14 STEPS TO QUALITY IMPROVEMENT 21 1 Make it clear that management is committed to quality for the long term. 8 Train supervisors to carry out their responsibilities in the quality program. 2 Form cross-departmental quality teams. 9 Hold a Zero Defects Day to ensure all employees are aware there is a new direction. 3 Identify where current and potential problems exist. 10 Encourage individuals and teams to establish both personal and team improvement goals. 4 Assess the cost of quality and explain how it is used as a management tool. 11 Encourage employees to tell management about obstacles they face in trying to meet quality goals. 5 Increase the quality awareness and personal commitment of all employees. 12 Recognize employees who participate. 6 Take immediate action to correct problems identified. 13 Implement quality councils to promote continual communication. 7 Establish a zero defects program. 14 Repeat everything to illustrate that quality improvement is a never-ending process.
  • 22. © Operational Excellence Consulting “ As with many other things, there is a surprising amount of prejudice against quality control, but the proof of the pudding is still in the eating.” KAORU ISHIKAWA 22
  • 23. © Operational Excellence Consulting ISHIKAWA’S 6 PRINCIPLES FOR QUALITY TRANSFORMATION 23 Quality first – not short-term profit first. 1 Using facts and data to make presentations – utilization of statistical methods. 4 Consumer orientation – not producer orientation. Think from the standpoint of the other party. 2 Respect for humanity as a management philosophy – full participatory management. 5 The next process is your customer – breaking down the barrier of sectionalism. 3 Cross-function management. 6 Source: Kaoru Ishikawa
  • 24. © Operational Excellence Consulting COMMONALITY OF THEMES OF QUALITY GURUS 24 Quality Cannot Be Inspected In Leadership Commitment Quality First Approach Total Employee Involvement A program for quality requires organization- wide efforts and long term commitment, accompanied by the necessary investment in training Inspection is never the answer to quality improvement, nor is “policing” Involvement of leadership and top management is essential to the necessary culture of commitment to quality Quality come first, before schedules and costs
  • 25. © Operational Excellence Consulting 25 ISO 9001 QUALITY MANAGEMENT PRINCIPLES 1. Customer Focus 2. Leadership 3. Engagement of People 4. Process Approach 5. Improvement 7. Relationship Management QUALITY MANAGEMENT PRINCIPLES 6. Evidence-based Decision Making
  • 26. © Operational Excellence Consulting TRADITIONAL INSPECTION IS A POOR SUBSTITUTE FOR QUALITY 26 Traditional 100% inspection does not provide 100% defect-free products.
  • 27. ACTION! © Operational Excellence Consulting 1. Individually, count the number of ‘f’s in the following paragraph: The necessity of training farm hands for first-class farms in the fatherly handling of farm livestock is foremost in the minds of farm owners. Since the forefathers of the farm owners trained the farm hands for first-class farms in the fatherly handling of farm livestock, the farm owners feel they should carry on with the family tradition of training farm hands of first-class farms in the fatherly handling of farm livestock because they believe it is the basis of good fundamental farm management. 2. How many ‘f’s have you counted? Has everyone got the same number? Can quality be inspected in? Is it easy to catch defects? ACTIVITY 1: THE INSPECTION EXERCISE 27 Time allowed: 1 min
  • 28. © Operational Excellence Consulting TQM IS A PARADIGM SHIFT 28 Traditional Organization TQM Organization Strategy Profit-focused Customer Focus Structure Hierarchical Flat and Flexible System Piece-meal Integrated and Aligned Style Top-down Top-down and Bottom-up Staff Organized by Functions Organized by Teams Skills Narrow Broad Shared Values Less Congruent / Reactive More congruent / Proactive
  • 29. © Operational Excellence Consulting TQM IMPERATIVES 29 TQM IMPERATIVES Management Commitment Customer Focus Management- By-Fact Teamwork Continuous Improvement
  • 30. © Operational Excellence Consulting Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. Based in Singapore, the firm’s mission is to create business value for organizations through innovative design and operational excellence management training and consulting solutions. For more information, please visit www.oeconsulting.com.sg ABOUT OPERATIONAL EXCELLENCE CONSULTING