1. Total Quality Management

2. Old Quality vs. New Quality
Difference between old quality (Rolls Royce, personal
banker, ...) and new quality is that old was the work of
craftsmen and the new is the work of a system (Toyota,
Big Mac, Boeing Aircraft, Disney World, ...). The old is
expensive, made for the few, using skilled hands, is
beautiful and functionally based. The new reduces cost,
made for the many by intelligent minds and should drive
the economy and make business more competitive.
Toyota Commercial

3. Why care about quality
increase productivity
expand market share
raise customer loyalty
enhance competitiveness of the firm
at a minimum, serve as a price of entry

4. Service Industries are particularly
Difficult
Reasons:
High volume of transaction
Immediate consumption
Difficult to measure and control
More labor intensive
High degree of customization required
Image is a quality characteristic
Behavior is a quality characteristic

5. Deming’s “Seven
Deadly Diseases”
 Lack of Constancy of purpose
 Emphasis on short term profits
 Evaluation of performance, merit rating or annual review of
performance
 Mobility of management
 Running the company on visible figures alone
 Excessive medical costs
 Excessive costs of warranty fueled by lawyers that work on
contingency fees
Interview with Deming

6. What is TQM??
The essence of Total Quality Management is a common sense
dedication to understanding what the customer wants and then
using people and science to set up systems to deliver products
and services that delight the customer.
Greg Hughes
President
AT&T Transmission Systems

7. Basic Concepts of TQM
 Customer Focus
 Continuous Process Improvement - Kaizen
 Employee Empowerment – Everyone is responsible for quality
 Quality is free - focus on defect prevention rather than defect
detection for it is always cheaper to do it right the first time
 Benchmarking – Legally stealing other people’s ideas
 Customer-Supplier Partnerships
 Management by fact..by numbers..by data – Balanced scoreboard
(financial, customer, process, learning)

8. Quality in U.S. vs. the Japanese
U.S. conforming to the requirements at the least
cost
Japanese joint responsibility to make the end
customer happy
8

9. “ I met the requirements”
m e nt
i re
Requ
OEM u cts
Pr od lts
r
o tR e su
T es
Supplier
OEM
Combative non collaborative relationship
9

10. “Creating the Best Vehicle/Systems with All the People
All the Suppliers All the Time”
YOU meet the
requirements! Let’s create
the best
Vehicle and
Systems
SOR together.
Partnership - Collaborative relationship
10

11. Strength of USA vs. Japan
Concept
Good Innovative Ideas Good Implementation
Strength of USA Mfg Strength of Japanese Mfg
KAIZEN
Time
Good Ideas, Good Implementation are the goals of
everyone in the automotive industry
11

12. Seven Basic Quality Tools To improve
Process Quality
 Scatter Diagrams: Plot data on a chart – no attempt is made to
classify the data or massage it
 Pareto Charts: Organize data on a histogram based on
frequency from most prevalent to least. Help identify major
causes or occurrences (80:20 rule)
 Check Sheets: Easy way to count frequency of occurrence by
front line workers
 Histograms: Categorize data is cells and plot (see if any patterns
emerge)
 Run Charts: Plot data as a function of time
 Cause and effects Charts: fishbone diagrams are used to identify
the root causes of a problem
 Control Charts: are statistical tools used to determine if the
variation in results is caused by common or special events

13. Summary - Concepts
Quality all the time by everyone from an end user prospective
Address issues up stream. Address product and process defects
at the design stage
Fixing problems usually involves fixing the systemic process
issues that caused the problem – Reoccurrence Prevention
Focus on Implementation
Focus on Change Points and Interfaces