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Total Quality Management [TQM] -
Introduction
What is TQM?
• Management approach to long-term success through
customer satisfaction.
• TQM is an enhancement to the traditional way of doing
business. It is a proven technique to guarantee survival
in world-class competition. Only by changing the actions
of management will the culture & actions of an entire
organization be transformed.
• TQM is for the most part Common Sense.
• Total – Made up of the Whole
• Quality – Degree of excellence a Product or Service
provides
• Management – Act, Art, or Manner of handling,
controlling, directing…
TQM is the art of managing the whole to
achieve Excellence!
Communic
ation
Commitment
Culture
Performance
People
PlanningProcesses
TQM Framework
Basic Approach to TQM
[1/7]
1. Committed & Involved management to
provide long-term top-to-bottom
organizational support.
2. Focus on Customer, both internally &
externally
3. Effective involvement & utilization of the
entire work force
4. Continuous improvement of the business &
production processes
5. Treating suppliers as partners
6. Establish performance measures for the
process
Basic Approach to TQM
[2/7]
• Committed & Involved management to provide
long-term top-to-bottom organizational support
• Quality goals are included in the business
plan
• Periodic [yearly/quarterly, etc.] quality
improvement program are established &
inputs are included from all work force
• TQM is a continual activity that must be
entrenched in the culture – it is NOT just a
one-shot program.
• TQM must be communicated to all.
Basic Approach to TQM
[3/7]
• Focus on Customer, both internally & externally
• Key to effective TQM is its focus on
Customers
• Start by satisfying Internal customers
• Listen to “voice of the customers” &
emphasize design quality & defect
prevention
• Do it right at the first time & every time,
Customer satisfaction is the most important
consideration
Basic Approach to TQM
[4/7]
• Effective involvement & utilization of the entire
work force
• TQM is everyone’s responsibility
• Work force needs to be trained on the
quality improvement skills so that they can
be effectively participate in project teams
• Work force MUST be involved in the
development & implementation of TQM
• People must come to work, NOT only to do
their jobs, but also to how to improve their
jobs
• People must be empowered at the lowest
level to perform processes in an optimum
manner
Basic Approach to TQM
[5/7]
• Continuous improvement of the business &
production processes
• Here must be continual striving to improve
all business & production processes
• Quality improvement projects, such as, on-
time delivery, reduction in billing error rate,
improved customer satisfaction index,
reduced cycle time, reduced scrap, etc. are
good place to begin with
• Technical techniques such as SPC,
Benchmarking, ISO 9000, 6 Sigma, designed
experiments are excellent for problem
solving
Basic Approach to TQM
[6/7]
• Treating suppliers as partners
• On average 40% of the sales dollar is
purchased product/service, therefore, the
supplier quality must be outstanding
• A partnering relationship rather than an
adversarial one must be developed
• The focus should be on Quality & Life-cycle,
rather than price
Basic Approach to TQM
[7/7]
• Establish performance measures for the process
• Performance measures such as percent
nonconforming, customer satisfaction, etc.
should be determined for each functional
area & posted for everyone
• Quantitative data are necessary to measure
continuous quality improvement activity
New vs. Old Culture
TQM gurus & their contributions 1/3]
Philip Crosby
• The Four Absolutes of
Quality Management:
1. Quality is conformance to
requirements
2. Quality prevention is
preferable to quality
inspection
3. Zero defects is the quality
performance standard
4. Quality is measured in
monetary terms – the
price of non-conformance
Dr. Edwards Deming
• Fourteen Obligations of Top Management:
1. Create constancy of purpose for
improvement of product and service.
2. Adopt the new philosophy. We can no
longer live with commonly accepted
levels of delays, mistakes, defective
materials, & defective workmanship.
3. Cease dependency on mass inspection to
achieve quality.
4. End the practice of awarding business on
the basis of price tag alone. Establish
long term relationship with suppliers to
develop loyalty and trust.
5. Improve constantly and forever every
process for planning, production, and
service.
6. Institute training on the job for all,
including management, to make better
use of every employee.
7. Adopt and institute leadership aimed at
helping people do a better job.
8. Drive out fear so that everybody may
work effectively and more productively
for the company.
9. Break down barriers between
departments and staff areas.
10. Eliminate slogans and exhortations for
the work force as they create adversarial
relationships.
11. Eliminate arbitrary numerical targets for
the workforce and management.
12. Remove barriers that rob people of pride
of workmanship. This includes the annual
appraisal of performance and
Management by Objective.
13. Encourage education. Institute a vigorous
program of education and self-
improvement for everyone
14. Clearly define top management’s
permanent commitment to ever
improving quality and productivity. Put
everybody in the company to work to
accomplish the transformation. Support is
not enough, action is required.
TQM gurus & their contributions [2/3]
Dr. Armand Feigenbaum
• Developed Total
Quality Control (TQC)
philosophy
• Quote: “Quality is
everybody’s job, but
because it is
everybody’s job, it can
become nobody’s job
without the proper
leadership and
organization.”
Dr. Kaoru Ishikawa
• Known as father of Japanese
quality control effort
• Established concept of Company
Wide Quality Control (CWQC) –
participation from the top to the
bottom of an organization and
from the start to the finish of the
product life cycle
• Started Quality Circles – bottom
up approach – members from
within the department and solve
problems on a continuous basis
• The fishbone diagram is also called
Ishikawa diagram in his honor
• Introduced concept that the next
process is your customer
Dr. Joseph Juran
• Juran’s Quality Trilogy
(compared to financial
management):
• Quality planning (financial
budgeting) – create process
that will enable one to meet
the desired goals
• Quality control (cost
control) – monitor and
adjust the process
• Quality
improvement (profit
improvement) – move the
process to a better and
improved state of control
through projects
TQM gurus & their contributions [3/3]
Dr. Walter Shewhart
• Shewhart’s control charts are
widely used to monitor processes.
Problems are framed in terms of
special cause and common cause.
• The Shewhart Cycle –
PDCA Problem Solving Process:
• Plan – what changes are desirable?
What data is needed?
• Do – carry out the change or test
decided upon
• Check – observe the effects of the
change or the test
• Act – what we learned from the
change should lead to improvement
or activity
• Referred to as
the “Father of Statistical Quality
Control”
Dr. Genichi Taguchi
• The lack of quality should be
measured as function of
deviation from the nominal value
of the quality characteristic.
Thus, quality is best achieved by
minimizing the deviation from
target (minimizing variation).
• Quality should be designed into
the product and not inspected
into it. The product should be so
designed that it is immune to
causes of variation.
Taguchi recommends a three-stage
design process:
1. System Design (Stage 1):
1. development of a basic
functional prototype design
2. determination of materials,
parts and assembly system
3. determination of the
manufacturing process
involved
2. Parameter Design (Stage 2):
1. Selecting the nominals of the
system by running statistically
planned experiments
(DFSS/DOE)
3. Tolerance Design (Stage 3):
1. Deals with tightening
tolerances and upgrading
materials
Dr. Walter Shewhart’s PDCA Cycle
Shewhart
Deming
Juran
Feigenbaum
Ishikawa
Crosby
Taguchi
TQM Framework
Guru’s
Principles &
Practices
Tools &
Techniques
Product or
Service
Realization
Customer
Bencharking
IT
QMS
Environmental Mgt. System
Quality Function Deployment
Quality by Design
Failure Mode & Effect Analysis
Product & Service Liability
Total Productive Maintenance
Management Tools
Statistical Process Control
Experimental Design
Taguchi’s Quality Engineering
People & Relationship:
- Leadership
- Customer Satisfaction
- Employee Involvement
- Supplier Partnerrship
Approach:
Continuous Process Improvement
Measure:
Performance easures
Defining Quality
• When the expression “Quality” is used, we
usually think in terms of an excellent product or
service that fulfills or exceeds our
expectations. These expectations are based on
the intended use & the selling price.
• Q can be defined as below.
Q = P/E
Here,
Q = Quality
P = Performance
E = Expectations
Quality
Dimensions
Obstacles
1. Lack of Mgt. Commitment
2. Inability to change organizational culture
3. Improper planning
4. Lack o continuous training & education
5. Incompatible organizational structure &
isolated individuals & departments
6. Ineffective measurement techniques & lack of
access to data & results
7. Paying inadequate attention to internal &
external customers
8. Inadequate use of empowerment &
teamwork
9. Failure to continually improve
Benefits
Benefits
Improved
quality
Employee
participation
Teamwork
Working
relationship
Customer
satisfaction
Employee
satisfaction
Productivity
Communicat
ion
Profitability
Market
share
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Introduction to Total Quality Management[TQM]

  • 1. Total Quality Management [TQM] - Introduction
  • 2. What is TQM? • Management approach to long-term success through customer satisfaction. • TQM is an enhancement to the traditional way of doing business. It is a proven technique to guarantee survival in world-class competition. Only by changing the actions of management will the culture & actions of an entire organization be transformed. • TQM is for the most part Common Sense. • Total – Made up of the Whole • Quality – Degree of excellence a Product or Service provides • Management – Act, Art, or Manner of handling, controlling, directing… TQM is the art of managing the whole to achieve Excellence!
  • 4. Basic Approach to TQM [1/7] 1. Committed & Involved management to provide long-term top-to-bottom organizational support. 2. Focus on Customer, both internally & externally 3. Effective involvement & utilization of the entire work force 4. Continuous improvement of the business & production processes 5. Treating suppliers as partners 6. Establish performance measures for the process
  • 5. Basic Approach to TQM [2/7] • Committed & Involved management to provide long-term top-to-bottom organizational support • Quality goals are included in the business plan • Periodic [yearly/quarterly, etc.] quality improvement program are established & inputs are included from all work force • TQM is a continual activity that must be entrenched in the culture – it is NOT just a one-shot program. • TQM must be communicated to all.
  • 6. Basic Approach to TQM [3/7] • Focus on Customer, both internally & externally • Key to effective TQM is its focus on Customers • Start by satisfying Internal customers • Listen to “voice of the customers” & emphasize design quality & defect prevention • Do it right at the first time & every time, Customer satisfaction is the most important consideration
  • 7. Basic Approach to TQM [4/7] • Effective involvement & utilization of the entire work force • TQM is everyone’s responsibility • Work force needs to be trained on the quality improvement skills so that they can be effectively participate in project teams • Work force MUST be involved in the development & implementation of TQM • People must come to work, NOT only to do their jobs, but also to how to improve their jobs • People must be empowered at the lowest level to perform processes in an optimum manner
  • 8. Basic Approach to TQM [5/7] • Continuous improvement of the business & production processes • Here must be continual striving to improve all business & production processes • Quality improvement projects, such as, on- time delivery, reduction in billing error rate, improved customer satisfaction index, reduced cycle time, reduced scrap, etc. are good place to begin with • Technical techniques such as SPC, Benchmarking, ISO 9000, 6 Sigma, designed experiments are excellent for problem solving
  • 9. Basic Approach to TQM [6/7] • Treating suppliers as partners • On average 40% of the sales dollar is purchased product/service, therefore, the supplier quality must be outstanding • A partnering relationship rather than an adversarial one must be developed • The focus should be on Quality & Life-cycle, rather than price
  • 10. Basic Approach to TQM [7/7] • Establish performance measures for the process • Performance measures such as percent nonconforming, customer satisfaction, etc. should be determined for each functional area & posted for everyone • Quantitative data are necessary to measure continuous quality improvement activity
  • 11. New vs. Old Culture
  • 12. TQM gurus & their contributions 1/3] Philip Crosby • The Four Absolutes of Quality Management: 1. Quality is conformance to requirements 2. Quality prevention is preferable to quality inspection 3. Zero defects is the quality performance standard 4. Quality is measured in monetary terms – the price of non-conformance Dr. Edwards Deming • Fourteen Obligations of Top Management: 1. Create constancy of purpose for improvement of product and service. 2. Adopt the new philosophy. We can no longer live with commonly accepted levels of delays, mistakes, defective materials, & defective workmanship. 3. Cease dependency on mass inspection to achieve quality. 4. End the practice of awarding business on the basis of price tag alone. Establish long term relationship with suppliers to develop loyalty and trust. 5. Improve constantly and forever every process for planning, production, and service. 6. Institute training on the job for all, including management, to make better use of every employee. 7. Adopt and institute leadership aimed at helping people do a better job. 8. Drive out fear so that everybody may work effectively and more productively for the company. 9. Break down barriers between departments and staff areas. 10. Eliminate slogans and exhortations for the work force as they create adversarial relationships. 11. Eliminate arbitrary numerical targets for the workforce and management. 12. Remove barriers that rob people of pride of workmanship. This includes the annual appraisal of performance and Management by Objective. 13. Encourage education. Institute a vigorous program of education and self- improvement for everyone 14. Clearly define top management’s permanent commitment to ever improving quality and productivity. Put everybody in the company to work to accomplish the transformation. Support is not enough, action is required.
  • 13. TQM gurus & their contributions [2/3] Dr. Armand Feigenbaum • Developed Total Quality Control (TQC) philosophy • Quote: “Quality is everybody’s job, but because it is everybody’s job, it can become nobody’s job without the proper leadership and organization.” Dr. Kaoru Ishikawa • Known as father of Japanese quality control effort • Established concept of Company Wide Quality Control (CWQC) – participation from the top to the bottom of an organization and from the start to the finish of the product life cycle • Started Quality Circles – bottom up approach – members from within the department and solve problems on a continuous basis • The fishbone diagram is also called Ishikawa diagram in his honor • Introduced concept that the next process is your customer Dr. Joseph Juran • Juran’s Quality Trilogy (compared to financial management): • Quality planning (financial budgeting) – create process that will enable one to meet the desired goals • Quality control (cost control) – monitor and adjust the process • Quality improvement (profit improvement) – move the process to a better and improved state of control through projects
  • 14. TQM gurus & their contributions [3/3] Dr. Walter Shewhart • Shewhart’s control charts are widely used to monitor processes. Problems are framed in terms of special cause and common cause. • The Shewhart Cycle – PDCA Problem Solving Process: • Plan – what changes are desirable? What data is needed? • Do – carry out the change or test decided upon • Check – observe the effects of the change or the test • Act – what we learned from the change should lead to improvement or activity • Referred to as the “Father of Statistical Quality Control” Dr. Genichi Taguchi • The lack of quality should be measured as function of deviation from the nominal value of the quality characteristic. Thus, quality is best achieved by minimizing the deviation from target (minimizing variation). • Quality should be designed into the product and not inspected into it. The product should be so designed that it is immune to causes of variation. Taguchi recommends a three-stage design process: 1. System Design (Stage 1): 1. development of a basic functional prototype design 2. determination of materials, parts and assembly system 3. determination of the manufacturing process involved 2. Parameter Design (Stage 2): 1. Selecting the nominals of the system by running statistically planned experiments (DFSS/DOE) 3. Tolerance Design (Stage 3): 1. Deals with tightening tolerances and upgrading materials
  • 16. Shewhart Deming Juran Feigenbaum Ishikawa Crosby Taguchi TQM Framework Guru’s Principles & Practices Tools & Techniques Product or Service Realization Customer Bencharking IT QMS Environmental Mgt. System Quality Function Deployment Quality by Design Failure Mode & Effect Analysis Product & Service Liability Total Productive Maintenance Management Tools Statistical Process Control Experimental Design Taguchi’s Quality Engineering People & Relationship: - Leadership - Customer Satisfaction - Employee Involvement - Supplier Partnerrship Approach: Continuous Process Improvement Measure: Performance easures
  • 17. Defining Quality • When the expression “Quality” is used, we usually think in terms of an excellent product or service that fulfills or exceeds our expectations. These expectations are based on the intended use & the selling price. • Q can be defined as below. Q = P/E Here, Q = Quality P = Performance E = Expectations
  • 19. Obstacles 1. Lack of Mgt. Commitment 2. Inability to change organizational culture 3. Improper planning 4. Lack o continuous training & education 5. Incompatible organizational structure & isolated individuals & departments 6. Ineffective measurement techniques & lack of access to data & results 7. Paying inadequate attention to internal & external customers 8. Inadequate use of empowerment & teamwork 9. Failure to continually improve