Total Quality Management


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Total Quality Management

  1. 1. TOTAL QUALITY MANAGEMENT: TQM Origins, Evolution & key elements
  2. 2. 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 satisfy the needs and expectations of the customer
  3. 3. Evolution of Quality Management Inspection Quality Control Quality Assurance TQM Salvage, sorting, grading, blending, corrective actions, identify sources of non-conformance Develop quality manual, process performance data, self-inspection, product testing, basic quality planning, use of basic statistics, paperwork control. Quality systems development, advanced quality planning, comprehensive quality manuals, use of quality costs, involvement of non-production operations, failure mode and effects analysis, SPC. Policy deployment, involve supplier & customers, involve all operations, process management, performance measurement, teamwork, employee involvement.
  4. 4. Deming’s view of a production as a system Consumer Research Design & redesign Receipt & test of materials Suppliers, materials & equipment Production, assembly, inspection Distribution Consumers Test of processes, machines, methods, cost
  5. 5. Improve Quality Productivity improves Provide jobs and more jobs Deming’s Chain Reaction Cost decreases because of less rework, fewer mistakes, fewer delays, snags, better use of machine time and materials Stay in business Capture the market with better quality and lower price
  6. 6. PLAN CHECK DO ACT The Deming Cycle or PDCA Cycle Plan a change to the process. Predict the effect this change will have and plan how the effects will be measured Implement the change on a small scale and measure the effects Adopt the change as a permanent modification to the process, or abandon it. Study the results to learn what effect the change had, if any.
  7. 7. W. Edwards Deming’s 14 Points Create constancy of purpose towards improvement of product and services. Adopt the new philosophy. We can no longer live with 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 of price tag. 1) 2) 3) 4)
  8. 8. W. Edwards Deming’s 14 Points Find problems. It is management’s job to work continually on the system. Institute modern methods of training on the job. Institute modern methods of supervision of production workers. The responsibility of foremen must be changed from numbers to quality. Drive out fear that everyone may work effectively for the company. 5) 6) 7) 8)
  9. 9. Break down barriers between departments. Eliminate numerical goals, posters and slogans for the workforce asking for new levels of productivity without providing methods. Eliminate work standards that prescribe numerical quotas. Remove barriers that stand between the hourly worker and his right to pride of workmanship. 9) 10) 11) 12) W. Edwards Deming’s 14 Points
  10. 10. Institute a vigorous programme of education and retraining. Create a structure in top management that will push everyday on the above 13 points. 13) 14) W. Edwards Deming’s 14 Points
  11. 11. Deming’s System of Profound Knowledge Appreciation for system Knowledge about variation Theory about knowledge Knowledge of psychology
  12. 12. Joseph M. Juran and the Cost Of Quality 2 types of costs: Unavoidable Costs: preventing defects (inspection, sampling, sorting, QC) Avoidable Costs: defects and product failures (scrapped materials, labour for re-work, complaint processing, losses from unhappy customers “ Gold in the Mine”
  13. 13. Joseph M. Juran and the Cost Of Quality 100% defective Point of “Enough quality” Total Costs Unavoidable costs Avoidable costs Costs
  14. 14. What is TQM? Constant drive for continuous improvement and learning. Concern for employee involvement and development Management by Fact Result Focus Passion to deliver customer value / excellence Organisation response ability Actions not just words (implementation) Process Management Partnership perspective (internal / external)
  15. 15. Learning LEARNING AND TQM Process Improvement Quality Improvement Customer Satisfaction Shareholder Satisfaction Employee Satisfaction
  16. 16. BASIC PRINCIPLES OF TQM Approach Management Led Scope Company Wide Scale Everyone is responsible for Quality Philosophy Prevention not Detection Standard Right First Time Control Cost of Quality Theme On going Improvement
  17. 17. FOUR KEY PRINCIPLES <ul><li>Measure quality so you can affect it </li></ul><ul><li>Focus on a moving customer </li></ul><ul><li>Involve every employee </li></ul><ul><li>Think long term - Act short term </li></ul>
  18. 18. THE CASE FOR QUALITY 1 Success of competitors who take quality seriously 2 Rising expectations of customers 3 Quality differentiates companies from the competition 4 Narrowing of supplier bases by quality conscious companies .
  19. 19. 5 Growing evidence that growth in market share comes from sustained quality. 6 Cost advantages 7 High cost of catastrophic failure 8 Inspection poor substitute for right first time THE CASE FOR QUALITY
  20. 20. SEVEN DEADLY SINS OF TQM <ul><li>Flight to nowhere </li></ul><ul><li>One size fits all </li></ul><ul><li>Substituting TQM for leadership </li></ul><ul><li>Inside - Out indicators </li></ul><ul><li>Mandatory religion </li></ul><ul><li>Quality kept as a separate activity </li></ul><ul><li>Teaching to the test </li></ul>Booz-Allen & Hamilton
  21. 21. 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
  22. 22. Project Quality Assurance Project Quality Plan PQP Q
  23. 23. Project Quality Plan <ul><li>Definition </li></ul><ul><li>The project quality plan is a documented description of the project management system and must be approved by the AEM, in part to demonstrate his commitment to quality but primarily it is the means by which technical and administrative authorities are delegated through out the project. </li></ul><ul><li>All projects shall have quality plan. </li></ul><ul><li>Project engineer shall develop and update the PQP. </li></ul><ul><li>. </li></ul>
  24. 24. Relationships between project quality plans PQP ADCO PQP Designer PQP construction contractor Suppliers quality plans
  25. 25. Preparation of a project quality plan Confirm project objectives Plan the project allocate resources Identify critical activities Define standards and controls Audits Close-out AEM/PE/HE AEM/PE HE/HC/PE DE/CE/PE QA/SCE/PE PE
  26. 26. CONTENTS OF TYPICAL PROJECT QUALITY PLAN <ul><li>1. COVER SHEET + REVISION CONTROL </li></ul><ul><li>1.1 Document purpose </li></ul><ul><li>1.2 Policy statement </li></ul><ul><li>2. INTRODUCTION </li></ul><ul><li>2.1 Background </li></ul><ul><li>2.2 Project Scope </li></ul><ul><li>2.3 Project Objectives & Constraints </li></ul><ul><li>2.4 QA Standards (Consider putting in Document purpose) </li></ul>
  27. 27. CONTENTS OF TYPICAL PROJECT QUALITY PLAN <ul><li>3. EXECUTION STRATEGY </li></ul><ul><li>3.1 Project Management risks. </li></ul><ul><li>3.2 Critical Activities. </li></ul><ul><li>3.3 Control Strategy. </li></ul><ul><li>3.4 Cost & Schedule. </li></ul><ul><li>3.5 HSE Plan. </li></ul><ul><li>3.6 Commissioning & Hand-over. </li></ul>
  28. 28. CONTENTS OF TYPICAL PROJECT QUALITY PLAN <ul><li>4. ORGANISATION, RESPONSIBILITES & INTERFACES </li></ul><ul><li>4.1 Table with names </li></ul><ul><li>4.2 External interfaces </li></ul><ul><li>4.3 Definition of specific roles and responsibilities. </li></ul><ul><li>5. QUALITY REFERENCE SYSTEM </li></ul><ul><li>5.1 Controlling Documents </li></ul><ul><li>5.2 Applicable Procedures (Check list based) </li></ul><ul><li>6. INTEGRATION OF CONTRACTORS & SUPPLIERS </li></ul><ul><li>6.1 Define Contractor interfaces. </li></ul><ul><li>6.2 Contractor + Supplier Quality System. </li></ul>
  29. 29. CONTENTS OF TYPICAL PROJECT QUALITY PLAN <ul><li>7. AUDITS & REVIEWS </li></ul><ul><li>This section should include schedule for: </li></ul><ul><ul><ul><ul><li>* PHSER * HSEIA </li></ul></ul></ul></ul><ul><ul><ul><ul><li>* HAZOP * VE </li></ul></ul></ul></ul><ul><ul><ul><ul><li>* TECHNICAL REVIEWS * QA AUDITS </li></ul></ul></ul></ul><ul><ul><ul><ul><li>* LESSONS LEARNT REVIEW. </li></ul></ul></ul></ul><ul><li>8. QUALITY IMPROVEMENT </li></ul><ul><li>8.1 LESSONS LEARNT </li></ul><ul><li>8.2 CLOSE-OUT REPORT </li></ul>
  30. 30. CONTENTS OF TYPICAL PROJECT QUALITY PLAN <ul><li>PREPARATION & APPROVALS: </li></ul><ul><li>PREPARE: PE, PM and / or Team Leaders </li></ul><ul><li>ENDORSE: AEM </li></ul><ul><li>APPROVE: EPM </li></ul><ul><li>Timing </li></ul><ul><li>The nominated PE, PM or Team leader shall develop the PQP </li></ul><ul><li>immediately after receiving the PID document and approval of the </li></ul><ul><li>project in the Business Plan. </li></ul>
  31. 31. Quality is a Journey, not a Destination