Total Quality Management (TQM)

© Operational Excellence Consulting. All rights reserved.
Total Quality
Management (TQM)

4© Operational Excellence Consulting. All rights reserved.
Program Outline
1. Introduction to TQM
2. Customer Focus
3. Employee Involvement & Empowerment
4. Process Management
5. Business Excellence & Quality Management Models
6. Total Quality Leadership
7. Implementing TQM
8. Tools & Techniques for Total Quality
9. Conclusion
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Changing Scenarios for Organizations
Introduction
Yesterday Today Tomorrow
Quality Quality Innovation
Control Management & Quality
Incremental Continuous Breakthrough
Improvement Improvement Improvement
Cost Reduction Cost Management Value Creation
Use of Data Use of Information Use of Knowledge
QCs at rank QCs across IQCs across
and file level departments organizations

Introduction
What is Total Quality Management?
• A management philosophy that Quality and Customers
are fundamental business principles for the company
• Quality means providing our external and internal
customers with products and services that fully satisfy
their requirements
• It aims at continuous improvement through systematic
company-wide employee involvement and teamwork
that will deliver the best product and service with Total
Customer Satisfaction at the lowest cost

3 Levels of Quality
Organizational
Level
Process Level
Individual Level
• Products and
services
• Key products
and services
• Key business
processes
• Key inputs
• Customer
requirements
• Measurements
• Standards
• Vision & Mission
• Quality Policies &
Goals
• Hoshin Kanri
• Process
Management,
Control &
Improvement
• Quality Circles
• Problem Solving
Tools & Technique
Quality Focus Mechanisms
Introduction

Deming’s 14 Points
1. Create constancy of purpose toward the improvement of products
and services in order to stay competitive, stay in business and
provide jobs.
2. Adopt the new philosophy.
3. Stop depending on inspection to achieve quality.
4. Stop awarding contracts on the basis of low bids.
5. Improve continuously and forever the system of production and
service, to improve quality and productivity, and thus constantly
reduce costs.
6. Institute training on the job.
7. Institute leadership.
Introduction

Introduction
Juran’s 10 Steps to Quality Improvement
1. Build awareness of both the need for improvement and opportunities for
improvement
2. Set goals for improvement
3. Organize to meet goals that have been set
4. Provide training
5. Implement projects aimed at solving problems
6. Report progress
7. Give recognition
8. Communicate results
9. Keep score
10.Maintain momentum by building improvement into company’s regular
systems

Introduction
Crosby’s 14 Steps to Quality Improvement
10. Encourage individuals and teams to establish both personal and
team improvement goals.
11. Encourage employees to tell management about obstacles they
face in trying to meet quality goals.
12. Recognize employees who participate.
13. Implement quality councils to promote continual communication.
14. Repeat everything to illustrate that quality improvement is a never-
ending process.

TQM
IMPERATIVES
Management
Commitment
Customer
Focus
Management-
By-Fact
Teamwork
Continuous
Improvement
Introduction
TQM Imperatives

Benefits of TQM
• Increased customer satisfaction
• Increased market share
• Lower costs
• Faster delivery time
• Increased profitability
• Increased efficiency
• Improved morale
Introduction

The Company
and its
Processes
Supplier Supplier Supplier Supplier
Customer Customer Customer Customer
Customer Focus
Traditional View of Suppliers and Customers

The
Next Process
Is
Your
CUSTOMER
Internally, the message must be :
. . .so that our external customers will always be satisfied
Customer Focus
Customer Focus from the Internal
Perspective

Source: Alex Trotman, CEO Ford Motor Company
Total Customer
Satisfaction
and
Loyalty
Product
Service
Product
Quality
Product
Innovation
Customer Focus
Total Customer Satisfaction

T
E
C
H
N
O
L
O
G
Y
PRODUCT
INNOVATION
M
A
R
K
E
T
Core Technology
Derivative Technology
Technology Acquisition
Segmentation
Captive market
Brand Loyalty
Customer Focus
Product Innovation

A Typical Organisation
Structured Vertically
Production Engineering Quality
General
Manager
Employees perform by divisions, leading to poor internal partnership.
Traditional View of Organization (Silo Effect)
Employee Involvement & Empowerment

Employees perform as a Linked Process, supporting the initiative
of Internal Partnership-Building.
The New View: Team Approach

Why Get to the Root?
“Alignment is the necessary
condition before empowering
individuals will empower the
whole team. Empowering the
individual when there is
relatively low level of alignment
worsens the chaos and makes
managing the team more
difficult.”
- Peter Senge
The Fifth Discipline
Alignment: Prerequisite to empowering the
team

Empowerment & Tools
• People empowerment comes from the ability of
employees to make a difference in the process they
manage
• People need tools to analyze, organize, understand and
use large amounts of data to make important decisions
that impact the bottom line

Quality Circle / Kaizen Team
• A group of workers who do similar work and who
meet:
Voluntarily
Regularly
In normal working time
Under the leadership of their supervisor
To identify, analyze and solve “work-related” problems
To recommend solutions to management

My
Process
Inputs Outputs
• Input Requirements
• Voice of Process
• Output Requirements
• Voice of Customer
Plan
DoCheck
Act
My
“Supplier”
My
“Customer”
Key Process Elements
System Boundary
Process Management

Key Dimensions of Process
Management
• Process Ownership
• Process Definition & Documentation
• Process Measurement
• Process Improvement
• Process Control
Process Management

Process Measurement
• Measurement is necessary to
control and improve the process
What to measure: input, process and
output
Measure the costs of poor quality
When to measure: randomly or
periodically (frequency)
Who to measure: person directly
responsible (third party)
How to measure: methodology &
procedures
Process Management

BREAKTHROUGH
KAIZEN
(INCREMENTAL)
BENCHMARKING
(COMPETITIVE
PARITY)
Improve Quality
Reduce Cost
Improve Speed
Increase Value to :
Customers
Stakeholders
Process Owners
Process Management
CONTINUOUS
IMPROVEMENT
Continuous Improvement
Process Management

Business Excellence & Quality
Management Models

Baldrige Criteria for Performance Excellence
Framework
4
Measurement, Analysis & Knowledge Management
2
Strategic
Planning
5
Workforce
Focus
3
Customer
Focus
6
Operations
Focus
1
Leadership
7
Results
Organizational Profile:
Environment, Relationships & Strategic Situation
Business Excellence & Quality Management Models

Excellence Categories
1. Leadership
2. Planning
3. Information
4. People
5. Processes
6. Customers
7. Results

2. Planning
Focuses on the organisation’s
planning process and how
all key performance
requirements are integrated
into the organisation’s
plans. Also examines the
deployment of the plans
and how performance is
tracked.
Focuses on the organisation’s
planning process and how
all key performance
requirements are integrated
into the organisation’s
plans. Also examines the
deployment of the plans
and how performance is
tracked.“Total Quality does not guarantee the
companies will produce strategies.
Winning strategies must come from the
minds of the leaders, augmented by
inputs from the troops.”
- Edwin Artzt
Chairman & CEO, Procter & Gamble

3. Information
• Key Excellence Indicators:
Balanced set of Performance Measures
Focus on Knowledge (Information of Value that is put
to use)
Reliable, Accessible, Timely and Consistent
Information
Organization has Strong Capability to Analyze
Information

5. Processes
“The quality of leadership will determine
the quality of products and services, and
the level of customer satisfaction.”
- Dr. Kenneth Blanchard
The One Minute Manager
Focuses on the key processes
the organisation uses to
pursue its objectives and
goals, including the design
process, production and
delivery processes, and
supplier and partnering
management processes.
Focuses on the key processes
the organisation uses to
pursue its objectives and
goals, including the design
process, production and
delivery processes, and
supplier and partnering
management processes.

6. Customers
• Key Excellence Indicators:
Well-defined Segmentation of Markets & Customers
Wide Range of Proactive Systems to Identify Current
& Future Markets / Customer Needs
Strategic Infrastructure Support for Customer
Relationship
Proactive Systems to gather Hard & Soft Performance
Data on Customer Satisfaction

Self Assessment for Quality Management
Principles (QMP), 1 of 2

“TQC, Japanese
style, is a thought
revolution in
management.”
- Dr. Kaoru Ishikawa
Total Quality Leadership

Leverage Points for Promoting Total Quality
Culture
TOTAL
QUALITY
CULTURE
Leadership
behavior
modeling
Management
roles
Employee
Involvement
Processes
and
systems
Education,
training and
development
Staffing
criteria
Operative
goals
Reward
systems

Don’t ask others to do
what you are not
willing to do yourself.
Quality leadership begins with setting a
good example
What you do speak so loudly that
I cannot hear what you say!!!

Non-compliance of Personal Quality
• Late for meeting or appointment
• Search for something misplaced or lost
• Delayed return of phone call or reply to
letter
• Putting a small task in a “KIV Pile”
• Failure to discard incoming junk promptly
• Missing a chance to clean up junk in office
• Unnecessary inspection

Understanding Waste
• Waste is all around us... it is both
obvious and hidden
• Personal Quality Checklists help
people make waste obvious at
the level of their own jobs
Most of us like to discover our own areas
for improvement!

Dealing with Root Causes
• Solutions must deal with
root causes, not
symptoms
• Ask “Why?” five times to
get to the root cause
It really works!!!

The Covey Matrix
?
?
?
?
HIGH LOW
URGENCY
HIGH
LOW
IMPORTANCE
?
?
?
?
HIGH LOW
URGENCY
HIGH
LOW
IMPORTANCE
Which
Quadrant
are you
in?

Key Lessons Learned
• Quality as practiced by the
individual is the foundation for
TQM
• Quality is based on the actions of
people
• TQM cannot exist without all the
people in an organization
understanding and practicing the
principles of quality at a personal
level
Quality begins and ends with the individual

Generic Model for Implementing TQM
1. Top management learns about and decides to commit
to TQM. TQM is identified as one of the organization’s
strategies.
2. The organization assesses current culture, customer
satisfaction, and quality management systems.
3. Top management identifies core values and principles
to be used, and communicates them.
4. A TQM master plan is developed on the basis of steps
1, 2, and 3.
Source: ASQ
Implementing TQM

Total
Customer
Satisfaction
External
Customer
Focus
Internal
Customer
Survey
Corporate
Citizen & Public
Relations
VIA
Public
Relations
Marketing
Comm-
unication
Leadership &
Communications
Policy
Deployment
Mass
Comm
MSA
Human
Resources
Optimization
TQM
Resource
Group
Newsletter
OJT
Resource
Group
ST
Resource
Group
IST
Resource
Group
IE
Resource
Group
Personal
Mastery
Program
OCS
SnRCafeteria
Safety
Operational
Excellence
TPM
8D
Bench-
mark
SIT
BPR
Top/TQM
Projects
Patents
Win-Win
IFI
5S
ESD
TQM
STEERING
COMMITTEE
Example: TQM Teams

Cascading of Hoshin Kanri
Hoshin Kanri cascades down,
with the tactic and targets
at one level becoming
the objective and
goals at the
next level.
Objective Goals Tactic Targets
What HowMeasure Measure
Department Manager
Section Manager
Engineer
Tools & Techniques for Total Quality

The FMEA Process
1. Review the process
2. Brainstorm potential failure modes
3. List potential effects of failure
4. Assign Severity rankings
5. Assign Occurrence rankings
6. Assign Detection rankings
7. Calculate the RPNs
8. Develop the action plan
9. Take action
10. Calculate the resulting RPNs

7 Basic QC Tools
• Stratification
• Check Sheet
• Control chart (Run chart)
• Pareto Chart
• Cause & Effect Diagram
• Histogram
• Scatter Diagram

Key Learning Points
• TQM involves a philosophy of continuous improvement with
emphasis on Quality and Customers.
• The central principle of Total Quality requires us to be
customer focus, always viewing quality from the perspective
of the customer.
• TQM requires the involvement of employees at all levels to be
successful. Empowering employees involves pushing down
the decision-making authority to the people closest to the
process.
• Total quality involves adoption of the process management
approach which examines and monitors various process
elements to ensure a stable and efficient process.
Conclusion

End of Presentation
To view the full list of training presentations,
please visit us at:
Operational Excellence Consulting
http://www.oeconsulting.com.sg

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