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Total Quality Management,
Total Quality Management
Explain Total, Quality and Management
 TQM is a philosophy which applies equally to
  all parts ...
What is Total Quality Management?
  Definition: TQM is a management philosophy, a
  paradigm, a continuous improvement app...
• What is a customer?
Anyone who is impacted by the product or process delivered by
   an organization.
External customer:...
• How is customer satisfaction achieved?
Two dimensions: Product features and Freedom from
  deficiencies.
• Product featu...
The TQM Approach

• Find out what the customer wants
• Design a product or service that meets or
  exceeds customer wants
...
Elements of TQM
•   Continual improvement: Kaizen
•   Competitive benchmarking
•   Employee empowerment
•   Team approach
...
Steps in implementing TQM
1. Obtain CEO Commitment
2. Educate Upper-Level Management
3. Create Steering Committee
4. Outli...
TQM beliefs
Following are the universal Total Quality Management beliefs:
   -Owner/customer satisfaction is the measure o...
Benefits of TQM:
1. Advantages unique to TQM –
   a. It makes a company a leader not a follower.
   b. TQM creates goal di...
3.   Benefits for the company –
     a. Better product quality.
     b. Staff is more motivated and quality conscious.
   ...
Principles and Core concepts of TQM:
• Delight the Customer
  a. customer Satisfaction
  b. Internal customers are real
• ...
PDCA Cycle repeated to create continuous
improvement
   Performance




                       Plan
                      ...
IMPLEMENTATION OF TQM (PDCA WAY)

Steps in TQM Process
                 PLAN                          DO
    1. Policies a...
Process improvement: Kaizen
• Japanese for gradual and orderly continuous improvement over a
  long period of time with mi...
Kaizen: Implementation
• The Deming cycle: Originally developed by Walter Shewart,
  but renamed in 1950s because Deming p...
Kaizen: Implementation
• Plan – Study the current system; identifying problems; testing
  theories of causes; and developi...
Process improvement tools
                       Seven QC Tools

1.   Flow charts
2.   Check sheets
3.   Histograms
4.   P...
1.Flow charts
• Process map identifies the sequence of activities or the flow in
  a process.
• Objectively provides a pic...
2.Check sheets
• Special types of data collection forms in which the results may
  be interpreted on the form directly wit...
3.Histograms
• A bar chart of the frequency of outcomes




     22
4.Pareto diagrams
• Based on the 85-15
  Pareto distribution.
• Helpful in identifying
  the quality focus areas.
• Popula...
5.Cause-effect diagrams

• Also called fishbone diagrams (because of their shape) or
  Ishikawa diagrams.
• Helps in ident...
6.Scatter diagrams

• Graphical components of the regression analysis.
• Often used to point out relationship between vari...
7.Run charts and Control charts

• Run chart: Measurement against progression of time.
• Control chart: Add Upper Control ...
Quality circles
• Teams of workers and supervisors that meet regularly to
  address work-related problems involving qualit...
ISO 9000: 2000 Quality Management Principles

•    Principle 1: Customer Focus
•    Principle 2: Leadership
•    Principle...
Six Sigma

• Business improvement approach that seeks to find and
  eliminate causes of defects and errors in processes by...
Obstacles to Implementing TQM
•   Lack of a company-wide definition of quality.
•   Lack of a formalized strategic plan fo...
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Tqm

  1. 1. Total Quality Management,
  2. 2. Total Quality Management Explain Total, Quality and Management  TQM is a philosophy which applies equally to all parts of the organization.  TQM can be viewed as an extension of the traditional approach to quality.  TQM places the customer at the forefront of quality decision making.  Greater emphasis on the roles and responsibilities of every member of staff within an organization to influence quality.  All staff are empowered.
  3. 3. What is Total Quality Management? Definition: TQM is a management philosophy, a paradigm, a continuous improvement approach to doing business through a new management model. TQM is a comprehensive management system which: -Focuses on meeting owners’/customers’ needs, by providing quality services at a reasonable cost. -Focuses on continuous improvement. -Recognizes role of everyone in the organization. -Views organization as an internal system with a common aim. -Focuses on the way tasks are accomplished. -Emphasizes teamwork
  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. It may be goods (e.g. automobiles, missile), software (e.g. a computer code, a report) or service (e.g. banking, insurance) 4
  5. 5. • How is customer satisfaction achieved? Two dimensions: Product features and Freedom from deficiencies. • Product features – Refers to quality of design. Examples in manufacturing industry: Performance, Reliability, Durability, Ease of use, Esthetics etc. Examples in service industry: Accuracy, Timeliness, Friendliness and courtesy, Knowledge of server etc. • Freedom from deficiencies – Refers to quality of conformance. Higher conformance means fewer complaints and increased customer satisfaction. 5
  6. 6. The TQM Approach • Find out what the customer wants • Design a product or service that meets or exceeds customer wants • Design processes that facilitates doing the job right the first time • Keep track of results • Extend these concepts to suppliers 7
  7. 7. Elements of TQM • Continual improvement: Kaizen • Competitive benchmarking • Employee empowerment • Team approach • Decisions based on facts • Knowledge of tools • Supplier quality • Champion • Quality at the source: The philosophy of making each worker responsible for the quality of his or her work. • Suppliers 8
  8. 8. Steps in implementing TQM 1. Obtain CEO Commitment 2. Educate Upper-Level Management 3. Create Steering Committee 4. Outline the Vision Statement, Mission Statement, & Guiding Principles 5. Prepare a Flow Diagram of Company Processes 6. Focus on the Owner/Customer (External) & Surveys 7. Consider the Employee as an Internal Owner/customer 8. Provide a Quality Training Program 9. Establish Quality Improvement Teams 10. Implement Process Improvements 11. Use the Tools of TQM 12. Know the Benefits of TQM
  9. 9. TQM beliefs Following are the universal Total Quality Management beliefs: -Owner/customer satisfaction is the measure of quality -Everyone is an owner/customer. -Quality improvement must be continuous. -Analysis of the processes is the key to quality improvement. -Measurement, a skilled use of analytical tools, and employee involvement are critical sources of quality improvement ideas and innovations -Sustained total quality management is not possible without active, visible, consistent, and enabling leadership by managers at all levels -It is essential to continuously improve the quality of products and services that we provide to our owners/customers
  10. 10. Benefits of TQM: 1. Advantages unique to TQM – a. It makes a company a leader not a follower. b. TQM creates goal directed connection between customers, management, and workers. Everyone is motivated to contribute. Thus, it fosters team work. c. It makes the company more sensitive to customer needs. d. It makes the company adopt more readily to change. 2. Benefits to customers – a. Fewer problems with product or service b. Better customer care. c. Greater satisfaction
  11. 11. 3. Benefits for the company – a. Better product quality. b. Staff is more motivated and quality conscious. c. Productivity improvement d. Reduced quality costs e. Enhanced problem solving capacity f. Increased market. g. increased competitive position of the firm, improved profitability h. good public image by helping it to provide goods and services of higher quality at lower cost to society 4. Benefit to staff – a. Empowerment b. Enhancement of job interest and security c. More training and improvement in skills d. More recognition e. Reduced employee grievances.
  12. 12. Principles and Core concepts of TQM: • Delight the Customer a. customer Satisfaction b. Internal customers are real • Management by facts a. All work is process b. measurement • People based management a. team-work b. people make quality • Continuous improvement a. continuous improvement cycle b. prevention
  13. 13. PDCA Cycle repeated to create continuous improvement Performance Plan Do Act Check “Continuous” improvement Time
  14. 14. IMPLEMENTATION OF TQM (PDCA WAY) Steps in TQM Process PLAN DO 1. Policies and objectives 3.Education and Training 2. Methods to achieve 4. Implementation of objectives Change ACT CHECK 7. Prevent undesired effects 5. Observe results 8. Measure for improvements 6. Analyse Results
  15. 15. Process improvement: Kaizen • Japanese for gradual and orderly continuous improvement over a long period of time with minimum financial investment, and with participation by everyone in the organization. • Improvement in all areas of business serves to enhance quality of the firm. • Three things required for successful kaizen program: operating practices, total involvement, and training. • Operating practices expose opportunities for improvement. JIT reveals waste and inefficiency as well as poor quality. • Every employee strives for improvement. Top management views improvement as part of strategy and supports it. Middle management can implement top management’s improvement goals by establishing, maintaining, and upgrading operating standards. Workers can engage through suggestions, small group activity. • Middle management can help create conducive environment for improvement by improving cooperation amongst departments, and by making employees conscious of their responsibilities for improvement. • Supervisors can direct their attention more on improvement than supervision, which will facilitate communication. 16
  16. 16. Kaizen: Implementation • The Deming cycle: Originally developed by Walter Shewart, but renamed in 1950s because Deming promoted it extensively. 17
  17. 17. Kaizen: Implementation • Plan – Study the current system; identifying problems; testing theories of causes; and developing solutions. • Do – Plan is implemented on a trial basis. Data collected and documented. • Study – Determine whether the trial plan is working correctly by evaluating the results. • Act – Improvements are standardized and final plan is implemented. • Variation of PDSA cycle: FADE – Focus, Analyze, Develop, Execute cycle! 18
  18. 18. Process improvement tools Seven QC Tools 1. Flow charts 2. Check sheets 3. Histograms 4. Pareto diagrams 5. Cause-and-effect diagrams 6. Scatter diagrams 7. Control charts 19
  19. 19. 1.Flow charts • 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. 20
  20. 20. 2.Check sheets • 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. However, to generate useful information from raw data, further processing generally is necessary. • 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
  21. 21. 3.Histograms • A bar chart of the frequency of outcomes 22
  22. 22. 4.Pareto diagrams • 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. 23
  23. 23. 5.Cause-effect diagrams • 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.) 24
  24. 24. 6.Scatter diagrams • Graphical components of the regression analysis. • Often used to point out relationship between variables. Statistical correlation analysis used to interpret scatter diagrams. 25
  25. 25. 7.Run charts and Control charts • Run chart: Measurement against progression of time. • Control chart: Add Upper Control Limit and Lower Control Limit to the run chart. 26
  26. 26. Quality circles • Teams of workers and supervisors that meet regularly to address work-related problems involving quality and productivity. • Developed by Kaoru Ishikawa at University of Tokyo. • Became immediately popular in Japan as well as USA. • Lockheed Missiles and Space Division was the leader in implementing Quality circles in USA in 1973 (after their visit to Japan to study the same). • Typically small day-to-day problems are given to quality circles. Since workers are most familiar with the routine tasks, they are asked to identify, analyze and solve quality problems in the routine processes. 27
  27. 27. ISO 9000: 2000 Quality Management Principles • Principle 1: Customer Focus • Principle 2: Leadership • Principle 3: Involvement of people • Principle 4: Process approach • Principle 5: Systems approach for management • Principle 6: Continual improvement • Principle 7: Factual approach to decision making • Principle 8: Mutually beneficial supplier relationships. 28
  28. 28. Six Sigma • Business improvement approach that seeks to find and eliminate causes of defects and errors in processes by focusing on outputs that are critical to customers. • The term Six Sigma is based on a statistical measure that equates 3.4 or fewer errors or defects per million opportunities. • Motorola pioneered the concept of Six Sigma. • The late Bill Smith, a reliability engineer is credited with conceiving the idea of Six Sigma. • GE (specifically CEO Jack Welch) extensively promoted it. 29
  29. 29. Obstacles to Implementing TQM • Lack of a company-wide definition of quality. • Lack of a formalized strategic plan for change. • Lack of a customer focus. • Poor inter-organizational communication. • Lack of real employee empowerment. • Lack of employee trust in senior management. • View of the quality program as a quick fix. • Drive for short-term financial results. • Politics and turf issues.
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