Total Quality Management


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Total Quality Management

  1. 1. TQM by Ram, Saurabh, Rishikesh and Chinmaya 1
  2. 2. What is quality?  The American National Standards Institute (ANSI) and the American Society for Quality (ASQ) define quality as: “The totality of features and characteristics of a product or service that bears on its ability to satisfy given needs.” 2 TQM by Ram, Saurabh, Rishikesh and Chinmaya
  3. 3. What is TQM?  A comprehensive, organization-wide effort to improve the quality of products and services, applicable to all organizations. Management Approach of an Organization  centered on Quality based on 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. 3 TQM by Ram, Saurabh, Rishikesh and Chinmaya
  4. 4. What is a customer?  Anyone who is impacted by the product or process delivered by an organization. External customer: The end user as well as intermediate processors. Other external customers may not be purchasers but may have some connection with the product. Internal customer: Other divisions of the company that receive the processed product.  What is a product? The output of the process carried out by the organization. 4 TQM by Ram, Saurabh, Rishikesh and Chinmaya
  5. 5. Reasons for quality becoming a cardinal priority for most organizations: Competition – Today’s market demand high quality  products at low cost. Having `high quality’ reputation is not enough! Internal cost of maintaining the reputation should be less. Changing customer – The new customer is not only  commanding priority based on volume but is more demanding about the “quality system.” Changing product mix – The shift from low  volume, high price to high volume, low price have resulted in a need to reduce the internal cost of poor quality. 5 TQM by Ram, Saurabh, Rishikesh and Chinmaya
  6. 6. Product complexity – As systems have  become more complex, the reliability requirements for suppliers of components have become more stringent. Higher levels of customer satisfaction –  Higher customers expectations are getting spawned by increasing competition. 6 TQM by Ram, Saurabh, Rishikesh and Chinmaya
  7. 7. Everyone defines Quality based on their own perspective of it. Typical responses about the definition of quality would include: Perfection 1. Consistency 2. Eliminating waste 3. Speed of delivery 4. Compliance with policies and procedures 5. Doing it right the first time 6. Delighting or pleasing customers 7. Total customer satisfaction and service 8. 7 TQM by Ram, Saurabh, Rishikesh and Chinmaya
  8. 8. 8 TQM by Ram, Saurabh, Rishikesh and Chinmaya
  9. 9. TQM by Ram, Saurabh, Rishikesh and Chinmaya 9
  10. 10. The core of TQM is the customer-supplier  interfaces, both externally and internally, and at each interface lie a number of processes. This core must be surrounded by commitment to  quality, communication of the quality message, and recognition of the need to change the culture of the organisation to create total quality. These are the foundations of TQM, and they are  supported by the key management functions of people, processes and systems in the organisation. TQM by Ram, Saurabh, Rishikesh and Chinmaya 10
  11. 11. TQM by Ram, Saurabh, Rishikesh and Chinmaya 11
  12. 12. W. Edwards Deming is best known for his  management philosophy establishing quality, productivity, and competitive position. The most important Deming works are:  Deming cycle,The Fourteen Points ETC TQM by Ram, Saurabh, Rishikesh and Chinmaya 12
  13. 13. 1. Achieve constancy of purpose. 2. Learn a new philosophy. 3. Do not depend on mass inspection. 4. Reduce the number of vendors for better control and consistency. 5. Recognize two sources of faults: (a). Management & production systems (b). Production workers. 6. Improve on the job training. 7. Improve supervision.
  14. 14. 8. Drive out fear. 9. Improve communication. 10. Eliminate fear. 11. Consider work standards carefully. 12. Teach statistical methods. 13. Encourage new skills. 14. Use statistical knowledge. Deming’s contribution to the Japanese industry was so much that the Japanese Government named the highest quality award for the industry after his name as the ‘Deming Award’.
  15. 15. Kaoru Ishikawa made many contributions to quality, the most noteworthy being his  total quality viewpoint,  company wide quality control,  his emphasis on the human side of quality  the Ishikawa diagram and the assembly  use of the “seven basic tools of quality”. TQM by Ram, Saurabh, Rishikesh and Chinmaya 16
  16. 16. Seven QC Tools Flow charts 1. Check sheets 2. Histograms 3. Pareto diagrams 4. Cause-and-effect diagrams 5. Scatter diagrams 6. Control charts 7. 18
  17. 17. Process map identifies the sequence of activities or the  flow in a process. Objectively provides a picture of the steps needed to  accomplish a task. Helps all employees understand how they fit into the  process and who are their suppliers and customers. Can also pinpoint places where quality-related  measurements should be taken. Also called process mapping and analysis.  Very successfully implemented in various organizations.  e.g. Motorola reduced manufacturing time for pagers using flow charts. 19
  19. 19. Special types of data collection forms in which the  results may be interpreted on the form directly without additional processing. Data sheets use simple columnar or tabular forms to  record data. Additionally, including information such as  specification limits makes the number of nonconforming items easily observable and provides an immediate indication of the quality of the process. 21
  20. 20. Process Variability  Continuous Data  Factors important when investigating  Histograms: Variations  Location  Shape  Unusual features  TQM by Ram, Saurabh, Rishikesh and Chinmaya 22
  21. 21. Named after Wilfredo Pareto.  Prioritize problems  Categorical Data  TQM by Ram, Saurabh, Rishikesh and Chinmaya 23
  22. 22. Based on the 85-15  Pareto distribution. Helpful in  identifying the quality focus areas. Popularized by  Juran. It is a histogram of  the data from the largest frequency to the smallest. 24
  23. 23. Also called fishbone diagrams (because of their  shape) or Ishikawa diagrams.  Helps in identifying root causes of the quality failure. (Helps in the diagnostic journey.) 25
  24. 24. Graphical components of the regression  analysis. Often used to point out relationship  between variables. Statistical correlation analysis used to interpret scatter diagrams. 26
  25. 25. Run chart: Measurement against progression of time.  Control chart: Add Upper Control Limit and Lower  Control Limit to the run chart. 27
  26. 26. Variation (Trends) over time.  Data Could be Means, counts or proportions  collected over time. TQM by Ram, Saurabh, Rishikesh and Chinmaya 28
  27. 27. Steps to be followed:- 1. Set up a long –term goal or mission. 2. Define a vision statement ,i.e. value system of the organization guiding everyone in the organization. 3. Break up the mission statement into annual short-term goals or objectives which should be ‘SMART’. 4.Identify customers who will help the organization to achieve the goals. 5. Discover their needs. 6. Develop product features responding to customer needs.
  28. 28. 7. Establish product goals. 8. Develop systems and processes to produce these product features. 9. Prove process capability and hand over to production,i.e. develop the plan at operating level. Quality planning is the starting point of the Journey to be a world-class organization.
  29. 29. Quality control as defined by Juran is control over  process.  Quality control consists of two major processes:- 1. Statistical process control. 2. Training on statistical tools.  For quality control concept of self-control has to be developed by:- 1. Means for knowing quality goals. 2. Means for knowing his performance on the quality goals. 3. Means for regulating/correcting his performance.
  30. 30. The quality improvement activity under the Juran – methodology is popularly known as:- Juran Quality Improvement Project, (JQIP). Juran clearly states that it is the number of JQI projects undertaken by an organization that decides the rate of growth of an Organization.
  31. 31. Eliminating errors and doing things right the first  time saves time and resources. The savings may then be used for expansion of services or made available to employees in their efforts to increase service quality.  creates an organizational atmosphere of excitement and sense of accomplishment through the rewarding of creativity  employees feel free to use their creative energies to develop new ideas. TQM by Ram, Saurabh, Rishikesh and Chinmaya 33
  32. 32. Employees begin to develop a commitment to the organization  rather than looking at it as just their employer. When employees feel they are an integral part of the organization, they feel needed and enjoy work more, which may further increase service quality. TQM gives an organization greater problem-solving flexibility and  increases the quality of work life for all employees. Total Quality Management may be a quot;profit generator,quot; even for  public organizations. It does not actually create profit for the organizations, but if implemented properly, it may identify costly processes and cost-saving measures. Once fully implemented, the only expense of TQM is the cost of routine operations. In public organizations, saved resources may be viewed as quot;profits.quot; TQM by Ram, Saurabh, Rishikesh and Chinmaya 34
  33. 33. To produce continuously high quality services, an organization must  react quickly to changes in the community and not be restricted by its management style. TQM calls for organizational change, it does not demand radical  organizational reform. Real quality improvement requires radical structural change, such as flattening organizational structures. TQM claims that quality is a complicated entity that is beyond the  average employee to comprehend without specialized training in statistical techniques. It takes what is common sense to the ordinary worker and makes it sound complicated by changing the name and dressing it up with technical language. TQM calls for the elimination of performance assessments. Critics fear  that without performance assessment managers would have too much power over employees and may be use it capriciously. TQM by Ram, Saurabh, Rishikesh and Chinmaya 35
  35. 35. TQM can be implemented by practicing the  following processes in the organization: KAIZEN  POKA-YOKE  6σ  ISO:9000  LEAN MANUFACTURING SYSTEM  QUALITY CIRCLES  STATISTICAL PROCESS CONTROL  JUST IN TIME  TQM by Ram, Saurabh, Rishikesh and Chinmaya 37
  36. 36. TQM by Ram, Saurabh, Rishikesh and Chinmaya 38