TOTAL QUALITY MANAGEMENT:TOTAL QUALITY MANAGEMENT:TQMTQMOrigins, Evolution & Key ElementsOrigins, Evolution & Key ElementsProfessor Jayashree Sadri and Dr. SorabProfessor Jayashree Sadri and Dr. SorabSadriSadri
What is Quality?Quality is “fitness for use”(Joseph Juran)Quality is “conformance to requirements”(Philip B. Crosby)Quality of a product or services is its ability to satisfythe needs and expectations of the customer
Evolution of Quality ManagementInspectionQualityControlQualityAssuranceTQMSalvage, sorting, grading, blending, correctiveactions, identify sources of non-conformanceDevelop quality manual, process performancedata, self-inspection, product testing, basicquality planning, use of basic statistics,paperwork control.Quality systems development, advanced qualityplanning, comprehensive quality manuals, use ofquality costs, involvement of non-productionoperations, failure mode and effects analysis, SPC.Policy deployment, involve supplier & customers,involve all operations, process management,performance measurement, teamwork, employeeinvolvement.
Deming’s view of a production as a systemConsumerResearchDesign &redesignReceipt & test ofmaterialsSuppliers,materials &equipmentProduction,assembly,inspectionDistribution ConsumersTest of processes,machines, methods, cost
Improve QualityProductivity improvesProvide jobs andmore jobsDeming’s Chain ReactionCost decreases becauseof less rework, fewermistakes, fewer delays,snags, better use ofmachine time andmaterialsStay in businessCapture the market withbetter quality and lower price
PLANCHECKDOACTThe Deming Cycle or PDCA CyclePlan a change to the process. Predict theeffect this change will have and plan howthe effects will be measuredImplement the change ona small scale and measurethe effectsAdopt the change as apermanent modificationto the process, orabandon it.Study the results tolearn what effect thechange had, if any.
W. Edwards Deming’s 14 PointsCreate constancy of purpose towards improvementof product and services.Adopt the new philosophy. We can no longer livewith commonly accepted levels of delays, mistakes,defective workmanship.Cease dependence on mass inspection. Require,instead, statistical evidence that quality is built in.End the practice of awarding business on the basis ofprice tag.1)2)3)4)
W. Edwards Deming’s 14 PointsFind problems. It is management’s job to workcontinually on the system.Institute modern methods of training on the job.Institute modern methods of supervision ofproduction workers. The responsibility of foremenmust be changed from numbers to quality.Drive out fear that everyone may work effectively forthe company.5)6)7)8)
Break down barriers between departments.Eliminate numerical goals, posters and slogans forthe workforce asking for new levels of productivitywithout providing methods.Eliminate work standards that prescribe numericalquotas.Remove barriers that stand between the hourlyworker and his right to pride of workmanship.9)10)11)12)W. Edwards Deming’s 14 Points
Institute a vigorous programme of education andretraining.Create a structure in top management that will pusheveryday on the above 13 points.13)14)W. Edwards Deming’s 14 Points
Deming’s System of Profound KnowledgeAppreciation forsystemKnowledgeabout variationTheory aboutknowledgeKnowledge ofpsychology
Joseph M. Juran and the Cost Of Quality2 types of costs:Unavoidable Costs: preventing defects (inspection,sampling, sorting, QC)Avoidable Costs: defects and product failures(scrapped materials, labour for re-work, complaintprocessing, losses from unhappy customers“Gold in the Mine”
Joseph M. Juran and the Cost Of Quality100% defective Point of “Enoughquality”TotalCostsUnavoidablecostsAvoidablecostsCosts
What is TQM?Constant drivefor continuousimprovement andlearning.Concern foremployeeinvolvement anddevelopmentManagementby FactResult FocusPassion to delivercustomer value /excellenceOrganisationresponseabilityActions not justwords(implementation)ProcessManagementPartnershipperspective(internal /external)
LearningLEARNING AND TQMProcess ImprovementQuality ImprovementCustomerSatisfactionShareholderSatisfactionEmployeeSatisfaction
BASIC PRINCIPLES OF TQMApproach Management LedScope Company WideScale Everyone is responsible for QualityPhilosophy Prevention not DetectionStandard Right First TimeControl Cost of QualityTheme On going Improvement
FOUR KEY PRINCIPLESFOUR KEY PRINCIPLES•Measure quality so you can affect it•Focus on a moving customer•Involve every employee•Think long term - Act short term
THE CASE FOR QUALITY1 Success of competitors who take quality seriously2 Rising expectations of customers3 Quality differentiates companies from thecompetition4 Narrowing of supplier bases by quality consciouscompanies.
5 Growing evidence that growth in marketshare comes from sustained quality.6 Cost advantages7 High cost of catastrophic failure8 Inspection poor substitute for right first timeTHE CASE FOR QUALITY
SEVEN DEADLY SINS OF TQMSEVEN DEADLY SINS OF TQM•Flight to nowhereFlight to nowhere•One size fits allOne size fits all•Substituting TQM for leadershipSubstituting TQM for leadership•Inside - Out indicatorsInside - Out indicators•Mandatory religionMandatory religion•Quality kept as a separate activityQuality kept as a separate activity•Teaching to the testTeaching to the testBooz-Allen & HamiltonBooz-Allen & Hamilton
IS QUALITY A SOUND INVESTMENT?Year Company Stock Growth (Oct 94)1988 Motorola 373.0%1988 Westinghouse (CNFD) - 49.6%1989 Xerox (BPS) 75.9%1990 General Motors 1.6%1990 Federal Express 10.6%1990 IBM (IBM Rochester) - 34.9%1991 Selectron 526.9%1992 AT&T (UCS) 32.2%1992 AT&T (TSBU) 32.2%1992 Texas Instruments (DS&E) 106.8%1993 Zyta 8.4%1994 Eastman Chemical 18.5%Total Stock Value £23016 (91.8% growth)Standard & Poor 500 Stock value £15911 (32.6% growth)Source: US Dept. of Commerce Study 1995
Project Quality PlanProject Quality PlanDefinitionDefinition• The project quality plan is a documented descriptionof the project management system and must beapproved by the AEM, in part to demonstrate hiscommitment to quality but primarily it is the means bywhich technical and administrative authorities aredelegated through out the project.• All projects shall have quality plan.• Project engineer shall develop and update the PQP..
Relationships between project quality plansRelationships between project quality plansPQPADCOPQPDesignerPQPconstructioncontractorSuppliersquality plans
Preparation of a project quality planPreparation of a project quality planConfirm project objectivesPlan the project allocate resourcesIdentify critical activitiesDefine standards and controlsAuditsClose-outAEM/PE/HEAEM/PE/HEAEM/PEAEM/PEHE/HC/PEHE/HC/PEDE/CE/PEDE/CE/PEQA/SCE/PEQA/SCE/PEPEPE
CONTENTS OF TYPICAL PROJECT QUALITY PLANCONTENTS OF TYPICAL PROJECT QUALITY PLAN4.4.ORGANISATION, RESPONSIBILITES &ORGANISATION, RESPONSIBILITES &INTERFACESINTERFACES4.14.1 Table with namesTable with names4.24.2 External interfacesExternal interfaces4.34.3 Definition of specific roles and responsibilities.Definition of specific roles and responsibilities.5.5. QUALITY REFERENCE SYSTEMQUALITY REFERENCE SYSTEM5.15.1 Controlling DocumentsControlling Documents5.25.2 Applicable Procedures (Check list based)Applicable Procedures (Check list based)6.6.INTEGRATION OF CONTRACTORS & SUPPLIERSINTEGRATION OF CONTRACTORS & SUPPLIERS6.16.1 Define Contractor interfaces.Define Contractor interfaces.
CONTENTS OF TYPICAL PROJECT QUALITY PLANCONTENTS OF TYPICAL PROJECT QUALITY PLANPREPARATION & APPROVALS:PREPARATION & APPROVALS:PREPARE:PREPARE: PE, PM and / or Team LeadersPE, PM and / or Team LeadersENDORSE:ENDORSE: AEMAEMAPPROVE:APPROVE: EPMEPMTimingTimingThe nominated PE, PM or Team leader shallThe nominated PE, PM or Team leader shalldevelop the PQPdevelop the PQPimmediately after receiving the PID document andimmediately after receiving the PID document andapproval of theapproval of theproject in the Business Plan.project in the Business Plan.