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Total Quality Management unit I by c.coomarasamy, Professor, TEC, Trichy

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  1. 1. MG 1401 TOTAL QUALITY MANAGEMENT 1.Introduction
  2. 2. TOTAL QUALITY MANAGEMENTTQM is an enhancement of traditional way of doing businessTQM is for the most part common sense.Analyzing the three words, we have• Total : made up of the whole• Quality : degree of excellence a product or service provides• Management : act, art, or manner of handling, controlling, directing, etc.,Therefore, TQM is the art of managing the whole to achieve excellence.ie., to manage in a total quality way.
  3. 3. TOTAL QUALITY MANAGEMENTFoundations-Hard- management necessities - four parts of a new model for TQM- 4 Ps - improving Performance through better Planning and management of People and Processes in which they workCore- is Performance measures. This core still needs to be surrounded byFoundations- Soft-outcoms- 3Cs• Commitment - to quality and meeting the customer requirements• Communications - of the quality message and recognition of the need to change the• Culture - of most organizations to create total Quality These are the S which must encase the H of other three Ps.
  4. 4. TOTAL QUALITY MANAGEMENT New model for TQM4 Ps - Hard3 Cs - Soft H S S H H H S
  5. 5. TOTAL QUALITY MANAGEMENTThus, TQM is defined as both• a philosophy and a set of guiding principles that represent the foundation of continuously improving organizations• It is the application of quantitative methods and human resources to improve all the processes within the organization and exceed customer needs now and in the future• It integrates fundamental managing techniques, existing improved efforts and technical tools under the disciplined approach
  6. 6. TOTAL QUALITY MANAGEMENT TQM Shewhart Bench Marking Deming Information Technology Juran Quality Management Systems Figenbaum Environmental Management System Ishikawa Quality Function Deployment Crosby are Quality by Design Taguchi Failure Mode & Effect Analysis Products and service LiabilityBegins with the knowledge Total Productive Maintenanceprovided by Management Tools some of the Tools and Statistical Process Control Gurus Techniques Experimental Design of quality Taguchi’s Quality Engineering They contributed to the development of Product or Principles & Service Customer Practices Realization Approach People and Relationship Continuous Process Improvement Leadership Measure Customer Satisfaction Performance measures Employee Involvement Supplier Partnership TQM framework
  7. 7. QualityIntroduction: The initial thrust in the Industrial scene was to “ Produce and Flourish” and subsequently, it was to “ Produce Quality and Flourish” and then “ Assure Quality and Flourish” and now “ Manage Quality and Flourish”In the LPG era- (Liberalization, Privatization and Globalization) It is mandatory for Indian Industries to incorporate Quality in each and every business activity Quality has to be managed- it does not just happenFundamental parts of the recipe for success• Understanding and commitment by senior management• Effective leadership• Teamwork• Good process management e.g., - watch -depends on wearer, - jewelry- impression of wealth, - timepiece- data including date, - hospital- professionalism
  8. 8. Quality - definitionwe must define Quality in a way that it is useful to the management,we must recognize the need to include in the assessment of Quality- the true requirements of the customer - the needs of the expectationsQuality then, is simply meeting the customer requirements• expressed in many ways by other authors• we are not able to give an unique definition for Quality - because it is not a phenomena, - it involves- a lot of - diverse parameters - diverse set of people - therefore we have a - diverse set of definitions - when the expression Quality is used, we usually think in terms of an excellent product or service that fulfills or exceeds our expectation.
  9. 9. Quality - definition-these expectations are based on the intended use and the selling price. e.g., plain steel washer & chrome plated steel washer-when a product surpasses our expectation we consider that Quality. Quality can be quantified as follows: Q = P / E, where Q- Quality, P- Performance & E- ExpectationsIf Q is greater than 1.0, then the customer has a good feeling about the product or servicePerception: the organization determines performance the customer determines expectations
  10. 10. Quality - definition• a more definitive definition is given in ISO 9000:2000• “Quality is defined as the degree to which a set of inherent characteristics fulfills requirement” - degree means that Quality can be used with adjectives such as poor, good, and excellent - inherent is defined as existing in something, especially as a permanent characteristics - characteristics can be quantitative or qualitative - requirement is need or expectation that is stated; generally implied by the organization, its customers, and other interested parties; or obligatorySituations• Doing the right things-(Products and services that reflect target features based on the needs of intended customers)• Doing the right things right- (using efficient processes)• Doing the right things right, right way- (both functional standards and customer’s expectations)• No single definition of Quality applies in all situations
  11. 11. Quality - definitionHelpful guides defined by Quality Gurus1.“Fitness for purpose or use” - Dr .Joseph. M. Juran (1954)2.“Quality should be aimed at the needs of the consumer, present and future” -W. Edwards Deming (1950)3.“The total composite product and service characteristics of marketing, engineering, manufacture and maintenance through which the product and service in use will meet the expectation of the customer” - Armand V. Feigenbaum4.“Conformance to requirement” -Philip B. Crosby(1979)5.“Quality is the minimum loss imparted by a Product to Society from the time the product is shipped”- - Dr. Genichi Taguchi (1960)6.“Quality is correcting and preventing loss, no living with loss” -HoshinOther definitions7. “Conformance to specifications and standards”8. “Productivity, competitive costs, on time delivery and the satisfaction of the customer”9. “Getting everyone to do what they have accepted to do, for the first time and every time”10. “What the customer say it is”
  12. 12. Dimensions of Quality (Measuring Quality)David A. Garvin’s NINE dimensions of quality1 Performance : Main, operating, primary, important characteristics, also called Functionality or Operationally -mileage given by an automobile -brightness of the picture -power consumed by a water pump -maximum speed, comfort in an automobile2 Features: Secondary characteristics, added features, enhancement, supplementing basic function -power steering -remote control -air conditioner in a car -free movie on a omni bus journey3 Conformance: Meeting specifications or industry standards, workmanship -conformance to requirements -an objective definition of quality4 Reliability: Probability that a product is performing its indented life and under stated conditions -consistency of performance over time -average time for the unit to fail
  13. 13. Dimensions of Quality (Measuring Quality)5 Durability : Useful life, including repair, before it physically deteriorates or it is replaced -conditions of use6 Service : Solve problems, compliance, easy to repair, easy to recondition, competence, courtesy, speed7 Response : Human to human interface, quick to attend customer’s complaint -courtesy of the dealer8 Aesthetics : Sensory characteristics -such as exterior finish -style -colour -smell -taste -feel etc.,9 Reputation :Past performance and other intangibles, recognized -such as being ranked first -brand image -goodwill
  14. 14. Dimensions of Quality (Measuring Quality) Other dimensions are: • Availability- measure of probability that the equipment is kept in working condition • Manufacturability- easy manufacturing, or service- includes design, process planning, finishing, assembly, packing and delivery Dimensions of quality Properties CharacteristicsMeasurable Non-measurable Functional Technical Psychologicalvariable attributes-size -colour -durability -aesthetics-weight -number -appealing-strength defectives-IQ, etc., -skills etc.,
  15. 15. Dimensions of Quality (Measuring Quality)• These dimensions are somewhat independent.• A product can be excellent in one dimension and average or poor in another.• Very few, if any, excel in all dimensions.• e.g., High quality cars in 1970s – Japanese were cited-based on the dimensions of reliability, conformance and aesthetics• Therefore, quality products can be determined by using a few of the dimensions of the quality• Marketing has the responsibility of identifying the relative importance of each dimension of quality• These dimensions are then translated into requirements for the development of a new product or improvement of an existing one.
  16. 16. Quality planning • In any organization quality planning is an essential activity that decides its success in the market place • should be formulated with customer satisfaction as the goal rather than financial or sales goals Traditional organization Planning Design Engineering Manufacturing Supply Sales & marketing Service Takes careIdentifies Design Prepares a Manufacture Supply To the customer of afterthe customer the detailed sales servicerequirement product Specification & process methodology The design and engineering department have to simultaneously work with Manufacturing department However, the traditional approach cannot respond to the customers demand quickly. So the interaction between all the departments is essential for an effective and successful quality planning
  17. 17. Dr. Joseph M. Juran
  18. 18. Quality planning A road map for quality planning as developed by Joseph M. Juran Activities Existing product and service Outputs Establish quality goals (create new design/idea from old one) List of quality goalsApply measurement throughout Identify ( the goals impacted) the customers List of customers (depending on the market potential) Determine the customer’s needs (Market research, input from technical expert Discover the customer needs and satisfaction) List of customer’s needs Develop product features (to achieve high product sales with quality, Optimize) Product designs Develop process features (concurrent engineering or simultaneous engineering, optimize the process) Process designs Establish process controls (prove that the process can produce the Product under operating conditions) Process ready to produce Transfer the plans to the operating forces (groups) Juran’s Quality Planning road map
  19. 19. Quality planningThe major tasks involved in the road map of quality planning comprise the following broad activities• Design practices: to build quality into product, to suit customer and market needs and requirements• Product and Process development: scaling up, commercial run, handing over of design• Measuring instruments and gauges: laboratory controls, calibration and standards, control of precision and accuracy of instruments• Tools, jigs and fixtures: their design, try out, evaluation, and certification prior to use in the shop• Quality control: procedure during production• Supplier quality: assurance
  20. 20. Quality planning• Field quality: assurance covering customer education, installation, commissioning and maintenance of hardware• Customer relations: assurance, monitoring of information to design, the changing needs of customers, their new requirements, new application ideas etc.,• Overall quality: assurance, audit of company• Systems of quality improvement: Project identification, project team, targets of results and time, resource mobilization, monitoring of progress, evaluation and control• Quality costs: measurement and analysis, to achieve the optimal product design• Working methods and procedures of planning: all stages right from design to delivery need to be documented as quality manuals
  21. 21. Quality costs - Cost of quality (COQ)The concept of Cost Of Quality (COQ) has been around for many years• Dr. Joseph M. Juran included a section on COQ in his “Quality control handbook” in 1951• The American Society for Quality (ASQ) established the Quality Cost Committee under the Quality Management Division in 1961• Philip B. Crosby- popularized the use of COQ – in his book “Quality is free” in 1979 He has written as “Quality is free, but only to those who are willing to pay heavily for it”• Several Current quality system standards ISO 9000, QS-9000, AS-9000 refer the use of COQ for quality improvementConcept of COQ : - the Costs due to the lack of quality or - the Costs to ensure quality is produced
  22. 22. Model of quality costs, strategic objectives and continuous improvement
  23. 23. Quality costs - Cost of quality (COQ)Philip B. Crosby refers to the COQ as the-1. “price of conformance”- the prevention and appraisal costs2. “price of non-conformance”- the failure costs
  24. 24. Quality costs - Cost of quality (COQ)- is the sum of the costs incurred by the company in preventing poor quality- the costs incurred to ensure and evaluate that the quality requirements are met, and- any other costs incurred as a result of poor quality being producedpoor quality is defined as non-value added activities- waste, errors or failures to meet customer needs and requirements- broken into three categories of PAFCOQ model is often referred as the PAF model on A ti pp en ra ev is Pr al Failure Internal, External
  25. 25. Quality costs - Cost of quality (COQ)Prevention costs- refer to all activities specifically designed to prevent poor quality in products or services.- an investment to prevent failure to meet customer requirements or specifications and are associated with designing, installing, maintaining and auditing a quality system and related activities.- These actions are designed to prevent defects, failures or process wastes.- Elements can include statistical process control, quality training, quality system audits, supplier certification, determination of customer requirements and design reviews.
  26. 26. Quality costs - Cost of quality (COQ)Appraisal costs are associated with measuring, evaluating or auditing products or services to assure conformance to quality standards and performance requirements.- an investment to prevent products or services that are defective in any way from reaching the customer.- Elements include receiving inspection, product testing and audits, test equipment calibration, monitoring service calls and customer satisfaction surveys.
  27. 27. Quality costs - Cost of quality (COQ)Failure costs result from products or services not conforming to requirements or customer needs.- They represent a cost penalty incurred by an organisation because it has failed to meet quality standards. There are two types of failure cost:1.Internal failure costs - that occur prior to delivery or shipment of the product, or furnishing of a service, to the customer and frequently represent wastes.Elements in this category include scrap, rework, sorting, troubleshooting, excess inventory, activities that do not add value, wasted material or time
  28. 28. Quality costs - Cost of quality (COQ)2.External failure costs - that occur after delivery of the product, and during or after the furnishing of a service, to the customer.They include the results of customer dissatisfaction, such as loss of market share and future custom opportunities.Elements in this category include returned goods, warranties, product recalls, loss of reputation, loss of repeat sales, liability insurance and complaint investigations.External failure costs are the most serious because they impact the customer and are often understated because they are difficult to quantify. They must receive priority attention
  29. 29. Quality costs - Cost of quality (COQ)Total quality cost is the sum of Prevention, Appraisal, & Failure.It is a key principle of quality costs that relatively small investments in prevention activities result in significant reductions in failure costs, both internal and external.Appraisal costs, such as product testing and inspection or excessive levels of signature approvals for purchase requisitions or loan approvals, likewise, can be expected to decrease as quality improves.
  30. 30. Quality costs - Cost of quality (COQ)• Prevention cost • Appraisal cost1. Planning 1. Purchasing appraisal2. Preparation costs -receiving/3. Design &Development- source inspection test of Product/Service purchased items4. Purchasing 2. Operations-M or S5. Operations- inspection, tests, & audits manufacturing / service during production &6. Education& training delivery 3. External- field-trials,7. Quality administration performance evaluations staff- Quality of field stock & Program planning, spare parts performance reporting 4. Review of test and8. Market research -in inspection data-reviewing collection, continued inspection and test data survey of quality needs prior to release of including feedback, products contract and 5. Miscellaneous quality document review evaluations9. Field testing -support area-dispatch10.Preventive maintenance rooms, store rooms,11.Evaluation packaging and shipping
  31. 31. Quality costs - Cost of quality (COQ)Failure costs: costs associated with the product or service whichdid not meet the requirements and the product had to be fixed or replaced or the service had to be repeated• Internal failures • External failures -costs resulting from the failures found -when the customer finds the failure before the product or service reaches -do not include any of the customer’s personal the customer costs i.e., non-conforming products such as costs of scrap, rework, repair & r/c before reaching i.e., non-conforming after the the customer• (a) Design failure costs delivery to the customer inherent design inadequacies (a) Cost of investigations on customer which includes design corrective actions, complaints-or user service rework due to design changes, scrap due to design changes and production liaison costs (b) Returned goods replacements• (b) Purchase failure costs (c) Retrofit and recall costs-due to design purchased material rejection cost deficiency the parts are redesigned’ i.e., rejection disposition, replacement, recalled or retrofitted supplier corrective action, rework supplier (d) Warranty claims-repair costs, cleaning rejects, uncontrolled material losses. costs, price reduction negotiated• (c) Operation failure costs This covers major portion. (e) Liability costs-including liability costs associated with non-conforming insurance-claims –damages suffered discovered during the operation process (f) Penalty costs-according to contracts or during government rules, proven lack (g) Customer or user goodwill-dissatisfaction material review, during corrective actions, of the customer rework or repair, scrap costs, internal failure labour costs (h) Lost sales-due to quality problems, profit lost due to reduction in sales
  32. 32. Quality cost modelsCost per good unit of product cost 80 70 60 50 40 Optimal situation 30 20 10 60% 70% 80% 90% 100% Quality conformance 100% defective 0% defective
  33. 33. Analysis techniques for quality costs
  34. 34. Optimum Quality costsThe PAF costs can be analyzed as shown in figure 0 100 ( Quality conformance, 100%)
  35. 35. Quality cost analysis• In the short term, there is a positive correlation between quality improvement and the cost of conformance and• a negative correlation between quality improvement and the cost non-conformance.In other words, an improvement in the quality of the products will lead to an increase in the cost of conformance that generated it.This is because an improvement in the quality level of a product might require• extra investment in R&D,• more spending in appraisal cost,• more investment in failure prevention and so on.But a quality improvement will lead to a decrease in the cost of nonconformance because1. fewer products will be returned from the customers,2. therefore less operating cost of customer support and3. there will be less internal rework.
  36. 36. Root cause analysis of quality costs
  37. 37. Analysis techniques for quality costs• PAF costs varies with organizations and products• A costs have been budgeted in many companies• Studies reveal that F costs are several time the A costs• P costs are relatively low when comparing with the Total cost• Relationship between I-F and E-F costs is significant• The I-F cost point to a need for programs involved in manufacturing, planning and production• The E-F cost point to a need for programs involving product design and field of service• Hidden Quality cost – shown as iceberg floating in waterTechniques for cost estimation1. Collecting data from accounting section2. Collecting data from existing reports3. Estimation of cost where data are not available
  38. 38. Hidden Quality costshown as Ice Berg floating in water /Rejects 1/3 can be identified and assessed /Reprocessing Water level 2/3 difficult to Identify and ass
  39. 39. Quality cost model Optimum segment Total quality cost curve optimumZone of improvement Zone of indifference Zone of high appraisal costsProjects Failure costs ~ 50% Failure costs < 40%Failure costs > 70% Prevention cost ~ 10% Prevention cost > 50%Prevention cost < 10% If no profitable projects Study cost per defect detected,Find breakthrough can be found, shift Verify validity of standards,Projects : pursue emphasis to control Reduce inspection, Try audit of decisions100% defective Quality of conformance 100% good
  40. 40. Analysis techniques for quality costs• The techniques for analyzing quality costs are quiet varied• The most common techniques used are Trend and Pareto analysis• The objective of these techniques is to determine opportunities for quality improvement1. Trend analysis: involves simply comparing present cost levels to past levels- - can be accomplished by cost category, sub category, product, measurement base, index,
  41. 41. Analysis techniques for quality costs Trend analysis Quality cost Year Trend analysis-(a) By cost analysis
  42. 42. Analysis techniques for quality costs Trend analysis
  43. 43. Analysis techniques for quality costs Trend analysis
  44. 44. Analysis techniques for quality costs Trend analysis by cost category
  45. 45. Analysis techniques for quality costs Trend analysis
  46. 46. Analysis techniques for quality costs2.Pareto analysis:- named after Alfredo Pareto (1848-1923) (Europe) - an Italian economist Dr. Joseph Juran coined: vital few and useful many (trivial) -is a graph that ranks data classifications in descending order from left to rightOther techniques:3.Bar charts A comparative bar chart can be used to compare with the bench marked cost for a similar item of a competing organization4. Pie charts can also be used
  47. 47. Analysis techniques for quality costs Pareto analysis – defective items Vital few (85 %) Trivial many (15 %)40 36%3530 27%25 22%20 Rough surface Less polishing Miss Shaping Surface scars Surface pits Incomplete Scratches15 Others Cracks105 3% 1% 2% 2% 4% 3%0
  48. 48. Analysis techniques for quality costs Pareto analysis Grills Bumpers-R Bumpers-Fr Others
  49. 49. Objectives of Quality cost evaluation1. To quantify the size of the problem in a language that will have an impact on top management2. To identify the area of major opportunities for cost reduction3. To identify the opportunities for reducing customer dissatisfaction and associated threat to product salability4. The assessment of quality cost will provide information for major areas for potential improvement
  50. 50. Total Quality Management• TQM is the art of managing the whole to achieve excellence.• It is defined as “ a management philosophy of pursuing continuous improvement in each process (marketing, finance, design, engineering, production, customer service etc., ) through the integrated efforts of all individuals in the organization with a focus of meeting customer needs and organizational objectives”
  51. 51. Total Quality Management• It is a method by which management and employees can become involved in the continuous improvement of the production of goods and service.• It is a combination of quality and management tools aimed at increasing business and reducing losses due to useful practices
  52. 52. Integrated approach to TQM• IA Strategy Organization Leadership Structure Commitment TQM Managing Suppliers Customers People Systems Attitudes ISO 9000 Behavior (Standards) Involvement Empowerment
  53. 53. Basic concepts of Total Quality Management1. A committed and involved management to provide a long term top to bottom organizational support2. An unwavering focus on the customer, both internally and externally3. Effective involvement and utilization of entire workforce4. Continuous improvement of the business and production process (activities)5. Treating suppliers as partners6. Establish performance measures for the processes (activities)
  54. 54. Purpose of TQMThe purpose of TQM is to provide quality product to the customers which will in turn – increase productivity-lower cost with a higher quality product and lower price- competitive position in the market placeThis series of events will allow the organization to achieve the objectives of profit and growth with greater easeIn addition, the workforce will have job security which will create a satisfying place to work
  55. 55. Basic concepts of TQM1. Management commitment- the basic PDCA cycle- developed by Shewart : -Plan (drive, direct) -Do (deploy, support, participate) -Check (review) -Act (recognize, communicate, revise)2. Customer focus- Voice of customer- “Do it right, the first time and every time” to ensure customer satisfaction -Supplier partnership -Service relationship with internal as well as external customers -Non compromise in quality -Customer driven standards -Customer retention3. Employee (involvement) Empowerment -Training and motivation -Suggestion scheme -Measurement, recognition and reward -Teamwork- excellence teams -Union involvement
  56. 56. Basic concepts of TQM4. Continuous process improvement -Attain, maintain and improve standards -PDSA cycle (Plan-Do-Study-Act)-modified by Deming -Improvement strategies -Problem-solving methods -cross-functional process management -Re-engineering -Six sigma concept5. Supplier partnership -Customer / Supplier relations -Supplier selection (restriction) -Supplier rating -Supplier certification -Partnering relationship
  57. 57. Basic concepts of TQM6. Performance measures for the processes -Reveal trends (graphs, control charts, process capability) -Comparison of goals with performance -Identification of processes to be improved -Provide information-make informal decisions -Adopt strategy -Quality costs- measurement , analysis, and action to reduce7. Fact based decision making -SPC- Statistical Process Control -DOE- Design Of Experiments -FMEA- Failure Mode Effect Analysis -The 7 statistical tools -TOPS- Team Oriented Problem Solving TOPS
  58. 58. Historical review Quality era Inspection SQC Quality assurance Strategic QualityCharacteristics 1800s 1930s 1950s Management 1980+1.Primary Detection Control Co-ordination Management concern To be A competitive2.View of A problem Solved pro active attack Opportunity Quality Product Uniform Designer’s role The market and3.Emphasis Uniformity Production Consumer needs With less Inspection Programs and Gauging, Statistical systems Strategic planning4.Methods Measurement Quality Tools Goal setting Inspection Manufacturing Everyone (Team)5. Who is Department & All departments in the organizationResponsible? Engg. Depts6. Operation Inspects Controls Builds in quality Manages in quality& approach quality quality
  59. 59. History of qualitySta Periods/ Terms Year Milestones/ eventsge Started from Stone age Used strong, sharp stones comfortable size & shapeA Before industrial 1850s Cottage industry approach revolutionB After industrial revolution 1870+ Skilled tradesman, standards, inspectionC After world war I 1919+ Statistical Quality Control 1924 W.A. Shewhart-developed a statistical chart (Bell Telephone lab) H.F. Dodge and H.G. Roming-developed the area of acceptance sampling as a substitute for 100% inspection 1943 Dr. Kaoru Ishikawa-developed fish bone diagram (C & E )D After world war II 1945+ Reliability, maintainability 1946 American Society for Quality Control was formed (now ASQ) 1950 W. Edwards Deming (American)- SQC, reliability, dependability, predictability& consistency of product and failure Deming prize by Union of Japanese Scientists and Engineers 1951 Dr. Joseph Juran-authored Quality Control Hand book-defined “fitness for use” He developed TQM philosophy around his quality trilogy- quality 1954 planning, control and improvement Dr. Genichi Taguchi-got Deming prize-Product design-Robust design 1960 of parameters and tolerancesE Quality 1960+ Quality motivation-1960-first Quality circles were formed for Japanese workers 1962 Zero defect 1964 Dr. Kaoru Ishikawa-published book on “Quality management”
  60. 60. History of qualityStage Periods/ Terms Year Milestones/ eventsF Quality Systems 1979 Integrated quality program Philip B. Crosby –authored book “Quality is free” 1980s Statistical Process Control-Automotive Industries 1983 Total Quality Control, TQM, Strategic planning 1984 Philip B. Crosby- authored Quality without TearsG Quality Standards Quality systems 1987 ISO 9000 –First release Environmental management 1996 ISO 14000 Systems The status or priority for Quality, Cost and Delivery is a cycle as follows Status/ 1960s 1980s 1990s 2000s Priority 1 Cost Delivery Quality Cost 2 Delivery Quality Cost Delivery 3 Quality Cost Delivery QualityQCD may look same in 1960s and 2000s. But nowin 2000s the Cost reduction is the focus after ensuring Quality and Delivery.
  61. 61. Principles of Total Quality Management• Total Quality Management has 10 basic principles.• They explain how it is implemented and the "rules" by which it operates.These are:1. Agree Customer Requirements (more than specifications)2. Understand and Improve Customer Supplier chains3. Do the Right Things4. Do things Right First Time5. Measure for success6. Continuous Improvement is the goal7. Management must lead8. Training is essential9. Communicate more effectively10. Recognize successful involvement
  62. 62. The eight key elements Of TQM• Total Quality Management is a management approach -originated in the 1950s -has steadily become more popular since the early 1980s.• Total Quality is a description of the - culture, attitude and organization of a company - strives to provide customers with products and services that satisfy their needs.• The culture requires quality in all aspects of the companys operations, with processes being done right the first time and defects and waste eradicated from operations.• To be successful implementing TQM, an organization must concentrate on the eight key elements:1. Ethics2. Integrity3. Trust4. Training5. Teamwork6. Leadership7. Communication8. Recognition
  63. 63. TQM- eight key elements-four groups• TQM has been coined to describe a philosophy that makes quality the driving force behind leadership, design, planning, and improvement initiatives.• For this, TQM requires the help of those eight key elements.• These elements can be divided into four groups according to their function.They are: I. Foundation - Ethics, Integrity and Trust. II. Building Bricks - Training, Teamwork & Leadership. III. Binding Mortar - Communication. IV. Roof - Recognition.
  64. 64. TQM- key elements Roof Binding mortarBuilding bricks Foundation Trust
  65. 65. I. Foundation - Ethics, Integrity and TrustTQM is built on a foundation of ethics, integrity and trust. - It fosters openness, fairness and sincerity and allows involvement by everyone. - This is the key to unlocking the ultimate potential of TQM. - These three elements move together, however, each element offers something different to the TQM concept.1. Ethics - is the discipline concerned with good and bad in any situation. - It is a two-faceted subject represented by organizational and individual ethics. - Organizational ethics establish a business code of ethics that outlines guidelines that all employees are to adhere to in the performance of their work. - Individual ethics include personal rights or wrongs.
  66. 66. I. Foundation - Ethics, Integrity and Trust2. Integrity - implies honesty, morals, values, fairness and adherence to the facts and sincerity.- The characteristic is what customers (internal or external) expect and deserve to receive. People see the opposite of integrity as duplicity. TQM will not work in an atmosphere of duplicity.3. Trust - is a by-product of integrity and ethical conduct. - without trust, the framework of TQM cannot be built.- fosters full participation of all members.- allows empowerment that encourages- pride ownership and it encourages commitment.
  67. 67. I. Foundation - Ethics, Integrity and Trust- allows decision making at appropriate levels in the organization,- fosters individual risk-taking for continuous improvement and helps to ensure that measurements focus on improvement of process and are not used to contend people.- is essential to ensure customer satisfaction.- So, trust builds the cooperative environment essential for TQM.
  68. 68. II. Building Bricks - Training, Teamwork & LeadershipBasing on the strong foundation of trust, ethics and integrity, bricks are placed to reach the roof of recognition. It includes:4. Training – is very important for employees to be highly productive.- Supervisors are solely responsible for implementing TQM within their departments, and teaching their employees the philosophies of TQM.- Training that employees require are interpersonal skills, the ability to function within teams, problem solving, decision making, job management performance analysis and improvement, business economics and technical skills.- During the creation and formation of TQM, employees are trained so that they can become effective employees for the company.
  69. 69. II. Building Bricks - Training, Teamwork & Leadership5. Teamwork - is also a key element of TQM to become successful in businessWith the use of teams, the business will receive quicker and better solutions to problems.- provide more permanent improvements in processes and operations.In teams, people feel more comfortable bringing up problems that may occur, and can get help from other workers to find a solution and put into place.
  70. 70. II. Building Bricks - Training, Teamwork &There are Leadership mainly three types of teams that TQM organizations adopt:A. Quality Improvement Teams or Excellence Teams (QITS) These are temporary teams with the purpose of dealing with specific problems that often re-occur.These teams are set up for period of three to twelve monthsB. Problem Solving Teams (PSTs) These are temporary teams to solve certain problems and also to identify and overcome causes of problems.They generally last from one week to three months.
  71. 71. II. Building Bricks - Training, Teamwork & LeadershipC. Natural Work Teams (NWTs)These teams consist of small groups of skilled workers who share tasks and responsibilities.These teams use concepts such as employee involvement teams, self-managing teams and quality circles.These teams generally work for one to two hours a week.
  72. 72. II. Building Bricks - Training, Teamwork & Leadership6. Leadership - It is possibly the most important element in TQM. It appears everywhere in organization.Leadership in TQM requires the manager to provide an inspiring vision, make strategic directions that are understood by all and to instill values that guide subordinates.For TQM to be successful in the business, the supervisor must be committed in leading his employees.
  73. 73. II. Building Bricks - Training, Teamwork & LeadershipA supervisor must understand TQM , believe in it and then demonstrate their belief and commitment through their daily practices of TQM .The supervisor makes sure that strategies, philosophies, values and goals are transmitted down through out the organization to provide focus, clarity and direction.A key point is that TQM has to be introduced and led by top management.Commitment and personal involvement is required from top management in creating and deploying -clear quality values and goals consistent with the objectives of the company and in creating and deploying well defined systems, methods and performance measures for achieving those goals.
  74. 74. III. Binding Mortar - Communication7. Communication – It binds everything together. Starting from foundation to roof of the TQM house, everything is bound by strong mortar of communication.It acts as a vital link between all elements of TQMCommunication means a common understanding of ideas between the sender and the receiver.The success of TQM demands communication with and among all the organization members, suppliers and customers.Supervisors must keep open airways where employees can send and receive information about the TQM process.
  75. 75. III. Binding Mortar - CommunicationCommunication coupled with the sharing of correct information is vital.For communication to be credible the message must be clear and receiver must interpret in the way the sender intended.There are different ways of communication such as: A. Downward communication B. Upward communication C. Sideways communicationA. Downward communication – This is the dominant form of communication in an organization.Presentations and discussions - basically do it. By this the supervisors are able to make the employees clear about TQM .
  76. 76. III. Binding Mortar - CommunicationB. Upward communication –By this the lower level of employees are able to provide suggestions to upper management of the affects of TQM .As employees provide insight and constructive criticism, supervisors must listen effectively to correct the situation that comes about through the use of TQM .This forms a level of trust between supervisors and employees.This is also similar to empowering communication, where supervisors keep open ears and listen to others.C. Sideways communication –This type of communication is important because it breaks down barriers between departments. It also allows dealing withcustomers and suppliers in a more professional manner.
  77. 77. IV. Roof –Recognition8. Recognition –Recognition is the last and final element in the entire system.It should be provided for both suggestions and achievements for teams as well as individuals.Employees strive to receive recognition for themselves and their teams.Detecting and recognizing contributors is the most important job of a supervisor.As people are recognized, there can be huge changes in self-esteem, productivity, quality and the amount of effort exhorted to the task at hand.
  78. 78. IV. Roof –RecognitionRecognition comes in its best form when it is immediately following an action that an employee has performed.Recognition comes in different ways, places and time viz.,· Ways - It can be by way of personal letter from top management. Also by award banquets, plaques, trophies etc.· Places - Good performers can be recognized in front of departments, on performance boards and also in front of top management.· Time - Recognition can given at any time like in staff meeting, annual award banquets, etc.
  79. 79. ConclusionWe can conclude that these eight elements are key in ensuring the success of TQM in an organization and that the supervisor is a huge part in developing these elements in the work place.Without these elements, the business entities cannot be successful TQM implementers.It is very clear from the above discussion that TQM without involving integrity, ethics and trust would be a great remiss, in fact it would be incomplete.Training is the key by which the organization creates a TQM environment.
  80. 80. ConclusionLeadership and teamwork go hand in hand.Lack of communication between departments, supervisors and employees create a burden on the whole TQM process.Last but not the least, recognition should be given to people who contributed to the overall completed task.Hence,• lead by example,• train employees to provide a quality product,• create an environment where there is no fear to share knowledge, &• give credit where credit is due- is the motto of a successful TQM organization.
  81. 81. Strategy vision values Leadership skills• Leadership qualities and leadership skills can be developed with leadership training.• For the model built up for considering the impact of leadership qualities and leadership skills, see the graphic leadership qualities.
  82. 82. Leadership (Management commitment)Good leaders are made, not bornWith the desire and willpower, one can become an effective leaderGood leaders develop through a never ending process of self study, education, training and experienceGood leaders are continually working and studying to improve their leadership skillsThey are NOT resting on their laurelsDefinitionsAverage people : Just do thingsManagers : Do things rightLeaders : Do right thingsA leader is more of a “thinker than a doer”
  83. 83. Leadership (Management commitment)A leader strengthens and inspires the followers to accomplish shared goals.Leaders shape, promote, protect and exemplify the organization’s values.Leadership is We, not me; mission, not my show; vision , not division; and community, not domicileLeaders should serve as role models through their ethical behaviour and the personal involvement in planning, communication, training and development of future leaders, review of organizational performance and employee recognition.
  84. 84. Leadership (Management commitment)ie., Leadership is a process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more cohesive and coherent.Leaders carry out this process by applying their leadership attributes such as beliefs, values, ethics, character, knowledge and skills.The position as a manager, supervisor, leader etc., will give the authority to accomplish certain tasks and objectives in the organization.This power does not make as a leader, it simply the boss.Leadership differs in that it makes the followers want to achieve high goals, rather than simply bossing people around.Leader Vs Manager“Leader create energy by inspiring ; Managers control and direct energy:“Leaders are essential ; Managers are necessary”“Leaders do the right things ; Managers do things right”
  85. 85. Leadership conceptsIn order to become successful, leadership requires an understanding of human nature- the basic needs, wants and abilities of peopleTo be effective, a leader understands that:1. People, need security and independence at the same time.2. People are sensitive to external rewards and punishments and yet are also strongly self-motivated3. People like to hear a kind word of praise, catch people doing something right, so you can pat them on the back.4. People can process only a few facts at a time; thus, a leader needs to keep things simple.5. People trust their gut reaction more than statistical data.6. People distrust a leader’s rhetoric (the art of oratory) if the words are inconsistent with the leader’s actions.
  86. 86. Leadership concepts
  87. 87. The seven habits of highly effective people Principles
  88. 88. 7 habits
  89. 89. Habit 1: Be proactiveBeing proactive means taking responsibility for your lifeProactive behaviour is a product of conscious choice based on valuesProactive people let carefully thought-about, selected and internalized values tell them how to respondReactive behaviour is based on feelingsReactive people let circumstances, conditions or their environment tell them how to respondThe language we use is a real indicator of our behaviourReactive ProactiveThere’s nothing I can do Let’s look at our alternativesShe makes me so mad I control my feelingsI can’t I chooseI must I preferThings are getting worse What initiative can we use?
  90. 90. Habit 1: Be proactiveThe 7 habits of Highly Effective People: Principles- Stephen R. Covey
  91. 91. Habit 2: Begin with the end in mindYou begin with a plan that will produce the appropriate end Thus leadership is the first creation and management the secondLeadership is doing the right things, & management is doing things rightDevelop a personal philosophy or creed.Start by considering the examples given below:1. Never compromise with honesty2. Remember the people involved3. Maintain a positive attitude4. Exercise daily5. Keep a sense of humour6. Do not fear mistakes7. Facilitate the success of subordinates8. Seek devine help9. Read a leadership book monthly
  92. 92. Habit 3: Put first things first
  93. 93. Habit 3: Put first things first• Habit 1 says , “you’re the creator, you are in charge”• Habit 2 is the first creation and is based on imagination -leadership based on values• Habit 3 is practicing self management and requires habits 1 & 2 as prerequisitesIt is the day by day, moment by moment management of your time• Urgent : means it requires immediate attention• Important: has to do with results that contribute to your mission, goals, and values• Effective, proactive people- spend most of their time in Q 2 thereby reducing time spent in Q 1Write down your key roles for the week List your objectives for each role using Q 2 activities – these objectives should be tied to your personal goals or philosophy developed in habit 2Schedule time to complete the objectivesAdapt the weekly schedule to your daily activities
  94. 94. Habit 4: Think Win-WinWin-Win is a frame of mind and heart that constantly seeks mutual benefit in all human interactionsWin-Win embraces five independent dimensions of life1. Character: involves the trains of integrity; maturity; and abundance mentality2. Relationships: means that two parties trust each other and are deeply committed to Win-Win3. Agreements: require the five elements of desired results, guidelines, resources, accountability and consequences4. Systems5. Processes: In order to obtain Win-Win, four step process is needed - see the problem from the other view point - identify the key issues and concerns - determine acceptable results - seek possible new options to achieve those results
  95. 95. Habit 5: Seek first to understand , then to be understoodEmpathic listening is the key to effective communicationIt focuses on learning how the other person sees the world, how they feelThe essence is not that you agree with someone, It is that you fully, deeply understand, that person, emotionally as well as intelluctuallyNext to physical survival is psychological survival- to be understood- to be affirmed- to be validated- to be appreciatedSecond part: to be understoodGreek words: ethos - your personal credibility or character pathos- empathy you have with the other person’s communication logos - the logic or reasoning part of your presentation
  96. 96. Habit 6: Snergy (unity)• When there is genuine understanding, people reach solutions that are better than they could have achieved acting alone
  97. 97. Habit 7: Sharpen the sawPresenting and enhancing the greatest asset you have, which is youIt’s renewing the four dimensions of your nature1. Physical : follow good nutrition, rest, relaxation and regular exercise2. Spiritual : renewal comes from prayer, meditation, and spiritual reading3. Mental : continue to develop your intellect through reading, seminars and writing4. Social/ Emotional : does not require time, it does require exercise
  98. 98. Role of senior managementEstablish quality policiesDevelop a leadership system• In a TQM organization, all the employees are responsible for quality especially senior management and the CEO (Chief Executive Officer)• They must actively participate in the implementation process of TQM• They must also actively participate in the quality council and other activities
  99. 99. Role of senior managementRoles:1. MBWA-Management By Wandering Around2. Strategy of decision making and problem solving3. Strong information base4. Provide the resources to train the employees5. Award and recognition6. Spend more time on quality7. Listening internal and external customers and suppliers8. Effective communication9. Identify and encourage potential employees10. Responsibility on quality11. Role model12. Minimize the resistance to changes13. The S.Ms should periodically check whether the QI programs are conducted as per the plan
  100. 100. Quality councilIn order to build quality into the culture, a Quality council is established to provide overall directions and guidanceIt is the driver for the TQM engine.It consists of the1. CEO - Chief Executive Officer2. senior managers of the functional areas such as- design, marketing, finance, production, quality3. a coordinator or consultant and4. union representativeA bright young person with executive potential should be selected as the coordinator and he will report to the CEO
  101. 101. Quality councilThe coordinator builds the two way trust -propose team needs to the council -share council expectations with the team -& brief the council on team progress -assists the team leaders -ensure empowerment -discusses on the problems-to know their responsibilitiesIn small organizations where managers may be responsible for more than one functional area, the number of members will be smallerTherefore a consultant may be employed rather than a coordinator
  102. 102. Quality structure • QS •Chair person : CEO Corporate •Members : Senior Managers who head Quality specific functions council Chair person : Senior Manager of main function of concerned division who is member Quality Quality Quality of the Corporative quality Sub-council Sub-council Sub-council council Division-1 Division-2 Division-3 Process Improvement Teams & Other Project Improvement TeamsTypical quality structure involving different levels of cross functional participation by managers
  103. 103. Duties of Quality council1. Develop the core values, vision, mission & quality policy statements2. Develop the strategic long term plan with goals and annual Q.I.P with objectives3. Create the total education and training plan4. Determine and continually monitor the cost of poor quality5. Determine the performance measures for the organization, approve those for functional areas and monitor them6. Continuously improve the process of customer satisfaction7. Establish work group teams at different levels and monitor their progress8. Establish or revise the recognition and reward system to account for the new way of doing business
  104. 104. Duties of Quality councilWithin 3 to 5 years, the activities of the quality council will become so grained in the culture of organizationWhen this state is achieved, a separate QC is no longer neededQuality becomes the first item on the executive meeting ie., The executive meeting becomes part of the QCQuality Circles: These are at grass root levelApart from improvement of product or service quality they concentrate on mutual developmentThis will make them error free and bring them closer creating a healthier working environment
  105. 105. Quality statements• Vision Statements• Mission They are part of the Strategic planning process• Quality policyOnce developed, they are only occasionally reviewed and updatedSmall organizations may use only quality policy statementThis can be included in the employee badgeThey should be developed using the inputs from all the employeesVision statement: is a short declaration of what an organization aspires to be tomorrow -It is the ideal state that might never be reached, but which you continually strive to achieve
  106. 106. Quality statementsMission statement: -answers the following questions:1. Who we are?2. Who are the customers?3. What we do?4. How we do it? - is usually one paragraph or less in length -is easy to understand -describes the function of organization -provides a clear statement of purpose of employees, customers & suppliers
  107. 107. Quality statementsVision statement: Examples:“The happiest place on earth”“We will be the preferred provider of safe, reliable and cost effective products and services that satisfy the electric-related needs of all customer segments.”“To continuously enrich knowledge base of practitioners in mobility Industry and institutionsin the service of the humanity” “To be a world-class organization, leading technological and socio-economic development of the country by enhancing the global competitiveness of technical manpower and by ensuring High quality technical education to all sections of the society”Mission statement: Examples:“Ford motor company is a worldwide leader in automatic and automotive-related products andservices as well as the newer industries such as aerospace, communications, and financialservices our mission is to improve continually our products and services to meet our customer’sneeds, allowing to prosper as a business and to provide a reasonable return to our share holders,the owners of our business.”“Facilitating world-class technical education through high quality institutions, academic excellenceand innovative research and developmental programmes, Technology forecasting and globalmanpower planning, Promoting industry-institute interaction Inculcating entrepreneurship•Making Indian technical education globally acceptable•Providing affordable education to all•To be a forward looking organization that has an efficient, flexible, and empowered manpower, sensitive to stake holder’s expectations.”
  108. 108. Quality statementsQuality Policy statement: The quality policy is a guide for everyone in the organization as to- how they should provide products and service to the customers- should be written by the CEO with feedback from the workforce- should be approved by the Quality councilCommon characteristics are:1. Quality is first among equals2. Meet the needs of internal and external customers3. Equal or exceed the competition4. Continually improve the quality5. Include business and production practices6. Utilize the entire work forceA quality policy is a requirement of ISO / QS 9000.
  109. 109. Quality statementsQuality policy statement: Examples“Xerox is a quality company. Quality is the basic principlesof Xerox. Quality means providing our external and internalcustomers with innovative products and services that fullysatisfy their requirements. Quality is the job of every employee.” – Xerox corporation.“We are committed to enhance customer satisfaction byproviding products and services to clearly establishedrequirements through customer focus and continualimprovement in all its process.” -Chennai based leading manufacturer of engine bearings, bushings and thrust washers.
  110. 110. Strategic planningStrategic quality plans & Business plans are separableIf we ask quality strategy, quality plan - they will show- business strategy, business plansIn fact, the term quality is not used too much.The time horizon for strategic planning : is for 3 to 10 years short term planning : is for 1 year or lessStrategy means adirection, Visionguide or of Present Strategic plancourse of action. futureStrategic planning is a process by which organizations develop a vision, mission, objectives and goals for its achievement.-usually performed by the CEO and Executive Team.-sets the long term direction of the organization
  111. 111. Strategic Planning
  112. 112. Seven steps to Strategic planning!. Who are the customers? Will the customer base change? 1. Customer needs What they want? How will the organization meet and exceed expectations? 2. Customer positioning2. Want to retain, reduce or expand. Concentrate on the areas of excellence. 3. Predict the future3. Demographics, economic forecasts, Technical assessment or projections4. Current- future- identify the gap, 4. Gap analysis analyze core values5. By establishing goals and responsibilities 5. Closing the gap6. Developed plan –should align with vision, 6. AlignmentMission and core values7. Implement-monitor 7. Implementation-assess the progress and take corrective action 8. Re-evaluation
  113. 113. SWOT analysisS- Strength Financial strength, market reputations, cost leadership, talented workforce etc.,W- Weakness lack of guidance, weak management team, poorly defined policies and procedures, poor image in the market, weak financial position etc.,O- Opportunity potential avenues – for expanding market for the product and service, fall of competitors, development of new productT- Threat competitions, government regulations, poor supplier partnership and changing behaviour of customersThe vision, mission and guiding principles serve as the foundation for strategic planning
  114. 114. Deming’s Philosophy (14 points) Dr.W.Edwards Deming was a supreme practitioner, whose teaching pointed the Japanese towards the star of quality management on which their post-war breakthrough was based. He taught SPC concepts and importance of quality to leading CEOs (21) of Japanese Industry in a seminar in 1950. He summarised his ideas in theseDr. W. Edwards Deming far-famed Fourteen Points. The rest were developed and the original ones modified over a period of time.
  115. 115. Deming’s Philosophy1. * “Create constancy of purpose towards improvement”. -that means short-term out, long-term in.2.* “Adopt the new philosophy” -from top to bottom3. * “Cease dependence on inspection”. -you don’t inspect quality into products and services – -you design it in and check only by statistical quality control.4. * “Move towards a single supplier for any one item.” -playing many suppliers off against each other is a mug’s game.5. * “Improve constantly and forever”. - however good you are, you can always do better.6. * “Institute training on the job” - the best place to learn.7. * “Institute leadership” - going well beyond supervision and its quotas and targets.8. * “Drive out fear”, -which makes for bad work - and bad management.9. * “Break down barriers between departments”:
  116. 116. Deming’s Philosophy10. * “Eliminate slogans”. -exhortation is another counter-productive substitute for real management.11. * “Eliminate management by objectives”. -relying on production and other targets is also counter- productive.12. * “Remove barriers to pride of workmanship”. -the key to superior quality lies here – and in the Fourteen Points, which all encourage performance.13. * “Institute education and self-improvement” - which should go without saying.14. * “The transformation is everyone’s job”- and Deming really meant everyone, from and including the top. Simple, straightforward, not easy, but absolutely worth the effort. W.Edwards Deming’s 14 Points revolutionised an economy. What they did for Japan they can also do for you.
  117. 117. Barriers to TQM implementationTQM extends beyond the scope of quality control, quality assurance, quality management and total quality.Total quality embraces the aspect of continuous improvement in all the activities of an organization.Organizations that have accepted and implemented this philosophy are far and few.An organization complying with the above statements have reached that level of quality by applying total quality management as part of their daily routines without it being written into policy or procedures.It is a way of life for them.
  118. 118. Barriers to TQM implementationMany companies and organizations are striving to achieve this level.There appears to be much confusion as to what total quality management stands for.Some people are trying to define TQM by placing items such as change, corporate culture, into boxes.This means that they see each of these as separate entities.It must be understood that TQM should be seen as a single integrated approach to the four areas of managements organizational being.Thus TQM must be seen in an organization as the organizational consistency and harmony which are vital to corporate strategy and its impact on the external market.TQM should be seen as the amalgamation of teams, methods, internal markets and leadership.You must adopt an holistic approach to the concept of TQM .
  119. 119. Barriers to TQM implementationCommon obstacles/barriers are:1. Lack of top management commitment and vision2. Lack of motivation and involvement of employees (company culture and management style)3. Flavour of month attitude4. Department based thinking and actions5. Poor appreciation of the concepts and principles of TQM6. Lack of structures for TQM activities7. Deciding how to start8. Gaining the involvement of non-manufacturing departments9. Ineffective leadership
  120. 120. Our TQM• Discipline is most important always.• You should spent your time judiciously.• You should be attentive in the class. - no discussions among yourselves.• You should bring separate notebook for the subject.• You should write/note down maximum points possible that could be readable latter.• Note books should be shown to me whenever I ask.• You should write all tests, assignments for getting required internal marks.• Internal marks will be awarded based on your performance only.• You should not have an idea that the subject is theoretical one and you could get pass marks easily.• Every subject in the semester is important, pay attention to all subjects equally.• Wish you all the best.