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Definition: 
Total Quality Management 
• Total Quality Management (TQ, QM or TQM) 
and Six Sigma (6s) are sweeping “culture change” 
efforts to position a company for greater customer 
satisfaction, profitability and competitiveness. 
• TQ may be defined as managing the entire 
organization so that it excels on all dimensions of 
products and services that are important to the 
customer. 
• We often think of features when we think of the 
quality of a product or service; TQ is about 
conformance quality, not features.
Total Quality Is… 
• Meeting Our Customer’s Requirements 
• Doing Things Right the First Time; Freedom 
from Failure (Defects) 
• Consistency (Reduction in Variation) 
• Continuous Improvement 
• Quality in Everything We Do
A Quality Management System Is… 
• A belief in the employee’s ability to solve 
problems 
• A belief that people doing the work are best able 
to improve it 
• A belief that everyone is responsible for quality
Elements for Success 
• Management Support 
• Mission Statement 
• Proper Planning 
• Customer and Bottom Line Focus 
• Measurement 
• Empowerment 
• Teamwork/Effective Meetings 
• Continuous Process Improvement 
• Dedicated Resources
The Continuous Improvement Process 
Measurement 
Measurement 
Measurement 
Empowerment/ 
Shared Leadership 
Process 
Improvement/ 
Problem 
Solving 
Team 
Customer 
Satisfaction 
Business 
Results 
Management 
Measurement 
. . .
Modern History of Quality Management 
• Frederick W. Taylor wrote Principles of Scientific Management in 1911. 
• Walter A. Shewhart used statistics in quality control and inspection, and 
showed that productivity improves when variation is reduced (1924); wrote 
Economic Control of Manufactured Product in 1931. 
• W. Edwards Deming and Joseph M. Juran, students of Shewhart, went to 
Japan in 1950; began transformation from “shoddy” to “world class” goods. 
• In 1960, Dr. K. Ishikawa formalized “quality circles” - the use of small groups 
to eliminate variation and improve processes. 
• In the late ‘70’s and early ‘80’s: 
– Deming returned from Japan to write Out of the Crisis, 
and began his famous 4-day seminars in the United States 
– Phil Crosby wrote Quality is Free 
– NBC ran “If Japan can do it, why can’t we?” 
– Motorola began 6 Sigma
History of Quality Management 
Deming’s 14 Points 
1. Create constancy of purpose for improvement 
2. Adopt a new philosophy 
3. Cease dependence on mass inspection 
4. Do not award business on price alone 
5. Work continually on the system of production and service 
6. Institute modern methods of training 
7. Institute modern methods of supervision of workers 
8. Drive out fear 
9. Break down barriers between departments 
10. Eliminate slogans, exhortations, and targets for the work force 
11. Eliminate numerical quotas 
12. Remove barriers preventing pride of workmanship 
13. Institute a vigorous program of education and retraining 
14. Take action to accomplish the transformation
History of Quality Management 
Deming’s Concept of “Profound Knowledge” 
 Understanding (and appreciation) of Systems 
- optimizing sub-systems sub-optimizes the total system 
- the majority of defects come from systems, the responsibility of 
management (e.g., machines not in good order, defective material, etc. 
 Knowledge of Statistics (variation, capability, uncertainty in data, etc.) 
- to identify where problems are, and point managers and workers 
toward solutions 
 Knowledge of Psychology (Motivation) 
- people are afraid of failing and not being recognized, 
so they fear how data will be used against them 
 Theory of Knowledge 
- understanding that management in any form is a prediction, and is 
based on assumptions
History of Total Quality 
According to Dr. Joseph M. Juran (1991): 
“On the assembly line at the Ford Motor Company in 1923, 
most of the workers producing Model T’s were immigrants 
and could not speak English. Many were also illiterate. 
Workers learned their trade by modeling the actions of other 
workers. They were unable to plan, problem-solve, and make 
decisions. As a result, the Taylor scientific school of 
management flourished, and MBAs and industrial engineers 
were invented to do this work. Today, however, the workforce 
is educated. Workers know what is needed to improve their 
jobs, and companies that do not tap into this significant source 
of knowledge will truly be at a competitive disadvantage.”
History of Total Quality 
According to Phil Crosby, Quality is . . . 
An attitude: 
- Zero Defects 
- Continuous Improvement 
A measurement: 
- Price of Conformance, plus 
- Price of Nonconformance (defects)
TQ: Transforming an Organization 
From 
Motivation through fear and loyalty 
To 
Motivation through shared vision 
Attitude: “It’s their problem” Ownership of every problem 
affecting the customer 
Attitude: “the way we’ve always done 
it” 
Continuous improvement 
Decisions based on assumptions/ 
judgment calls 
Decisions based on data and facts 
Everything begins and ends with 
management 
Everything begins and ends with 
customers 
Crisis management and recovery Doing it right the first time 
Choosing participative OR scientific 
management 
Choosing scientific AND 
participative management
What is Six Sigma? 
• A goal of near perfection in meeting customer requirements 
• A sweeping culture change effort to position a company for 
greater customer satisfaction, profitability and 
competitiveness 
• A comprehensive and flexible system for achieving, 
sustaining and maximizing business success; uniquely driven 
by close understanding of customer needs, disciplined use of 
facts, data, and statistical analysis, and diligent attention to 
managing, improving and reinventing business processes 
(Source:The Six Sigma Way by Pande, Neuman and Cavanagh)
Is 99% Quality Good Enough? 
• 22,000 checks will be deducted from the 
wrong bank accounts in the next 60 
minutes. 
• 20,000 incorrect drug prescriptions will be 
written in the next 12 months. 
• 12 babies will be given to the wrong parents 
each day.
Six Sigma Quality 
The objective of Six Sigma quality is 3.4 defects 
per million opportunities! 
(Number of Standard Deviations) 3 Sigma 4 Sigma 5 Sigma 6 Sigma 
0.0 2700 63 0.57 0.002 
0.5 6440 236 3.4 0.019 
1.0 22832 1350 32 0.019 
1.5 66803 6200 233 3.4 
2.0 158,700 22800 1300 32
But is Six Sigma Realistic? 
· 
(66810 ppm) · IRS – Tax Advice (phone-in) 
100K 
10K 
41 
1K 
31 
100 
21 
11 
1 
Restaurant Bills ······ · 
Doctor Prescription Writing 
Payroll Processing 
Order Write-up 
Journal Vouchers 
Wire Transfers 
Best in Class 
(3.4 ppm) 
Domestic Airline 
Flight Fatality Rate 
3 4 5 6 7 
10 
1 
2 3 4 5 6 (0.43 ppm) 
7 
· (233 ppm) 
Average 
Company 
Purchased Material 
Lot Reject Rate 
Air Line Baggage Handling 
Defects Per Million Opportunities (DPMO) SIGMA
Six Sigma Improvement Methods 
DMAIC vs. DMADV 
Define 
Measure 
Analyze 
Design 
Validate 
Continuous Improvement Reengineering 
Improve 
Control
Six Sigma DMAIC Process 
Control 
Measure 
Define 
Improve 
Analyze 
Define: Define who your 
customers are, and what 
their requirements are for 
your products and services – 
Their expectations. Define 
your team goals, project 
boundaries, what you will 
focus on and what you won’t. 
Define the process you are 
striving to improve by 
mapping the process.
Six Sigma DMAIC Process 
Control 
Measure 
Define 
Improve 
Analyze 
Measure: Eliminate 
guesswork and assumptions 
about what customers need 
and expect and how well 
processes are working. Collect 
data from many sources to 
determine speed in responding 
to customer requests, defect 
types and how frequently they 
occur, client feedback on how 
processes fit their needs, how 
clients rate us over time, etc. 
The data collection may 
suggest Charter revision.
Six Sigma DMAIC Process 
Control 
Measure 
Define 
Improve 
Analyze 
Analyze: Grounded in the 
context of the customer and 
competitive environment, 
analyze is used to organize 
data and look for process 
problems and opportunities. 
This step helps to identify gaps 
between current and goal 
performance, prioritize 
opportunities to improve, 
identify sources of variation and 
root causes of problems in the 
process.
Six Sigma DMAIC Process 
Control 
Measure 
Define 
Improve 
Analyze 
Improve: Generate both 
obvious and creative 
solutions to fix and prevent 
problems. Finding creative 
solutions by correcting root 
causes requires innovation, 
technology and discipline.
Six Sigma DMAIC Process 
Control 
Measure 
Define 
Improve 
Analyze 
Control: Insure that the 
process improvements, once 
implemented, will “hold the 
gains” rather than revert to 
the same problems again. 
Various control tools such as 
statistical process control can 
be used. Other tools such as 
procedure documentation 
helps institutionalize the 
improvement.
Six Sigma DMADV Process 
Validate 
Measure 
Define 
Design 
Analyze 
Design: Develop 
detailed design for new 
process. Determine and 
evaluate enabling 
elements. Create 
control and testing plan 
for new design. Use 
tools such as simulation, 
benchmarking, DOE, 
Quality Function 
Deployment (QFD), 
FMECA analysis, and 
cost/benefit analysis.
Six Sigma DMADV Process 
Validate 
Measure 
Define 
Design 
Analyze 
Validate: Test detailed 
design with a pilot 
implementation. If 
successful, develop and 
execute a full-scale 
implementation. Tools 
in this step include: 
planning tools, 
flowcharts/other process 
management techniques, 
and work documentation.

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Total Quality Managment

  • 1. Definition: Total Quality Management • Total Quality Management (TQ, QM or TQM) and Six Sigma (6s) are sweeping “culture change” efforts to position a company for greater customer satisfaction, profitability and competitiveness. • TQ may be defined as managing the entire organization so that it excels on all dimensions of products and services that are important to the customer. • We often think of features when we think of the quality of a product or service; TQ is about conformance quality, not features.
  • 2. Total Quality Is… • Meeting Our Customer’s Requirements • Doing Things Right the First Time; Freedom from Failure (Defects) • Consistency (Reduction in Variation) • Continuous Improvement • Quality in Everything We Do
  • 3. A Quality Management System Is… • A belief in the employee’s ability to solve problems • A belief that people doing the work are best able to improve it • A belief that everyone is responsible for quality
  • 4. Elements for Success • Management Support • Mission Statement • Proper Planning • Customer and Bottom Line Focus • Measurement • Empowerment • Teamwork/Effective Meetings • Continuous Process Improvement • Dedicated Resources
  • 5. The Continuous Improvement Process Measurement Measurement Measurement Empowerment/ Shared Leadership Process Improvement/ Problem Solving Team Customer Satisfaction Business Results Management Measurement . . .
  • 6. Modern History of Quality Management • Frederick W. Taylor wrote Principles of Scientific Management in 1911. • Walter A. Shewhart used statistics in quality control and inspection, and showed that productivity improves when variation is reduced (1924); wrote Economic Control of Manufactured Product in 1931. • W. Edwards Deming and Joseph M. Juran, students of Shewhart, went to Japan in 1950; began transformation from “shoddy” to “world class” goods. • In 1960, Dr. K. Ishikawa formalized “quality circles” - the use of small groups to eliminate variation and improve processes. • In the late ‘70’s and early ‘80’s: – Deming returned from Japan to write Out of the Crisis, and began his famous 4-day seminars in the United States – Phil Crosby wrote Quality is Free – NBC ran “If Japan can do it, why can’t we?” – Motorola began 6 Sigma
  • 7. History of Quality Management Deming’s 14 Points 1. Create constancy of purpose for improvement 2. Adopt a new philosophy 3. Cease dependence on mass inspection 4. Do not award business on price alone 5. Work continually on the system of production and service 6. Institute modern methods of training 7. Institute modern methods of supervision of workers 8. Drive out fear 9. Break down barriers between departments 10. Eliminate slogans, exhortations, and targets for the work force 11. Eliminate numerical quotas 12. Remove barriers preventing pride of workmanship 13. Institute a vigorous program of education and retraining 14. Take action to accomplish the transformation
  • 8. History of Quality Management Deming’s Concept of “Profound Knowledge”  Understanding (and appreciation) of Systems - optimizing sub-systems sub-optimizes the total system - the majority of defects come from systems, the responsibility of management (e.g., machines not in good order, defective material, etc.  Knowledge of Statistics (variation, capability, uncertainty in data, etc.) - to identify where problems are, and point managers and workers toward solutions  Knowledge of Psychology (Motivation) - people are afraid of failing and not being recognized, so they fear how data will be used against them  Theory of Knowledge - understanding that management in any form is a prediction, and is based on assumptions
  • 9. History of Total Quality According to Dr. Joseph M. Juran (1991): “On the assembly line at the Ford Motor Company in 1923, most of the workers producing Model T’s were immigrants and could not speak English. Many were also illiterate. Workers learned their trade by modeling the actions of other workers. They were unable to plan, problem-solve, and make decisions. As a result, the Taylor scientific school of management flourished, and MBAs and industrial engineers were invented to do this work. Today, however, the workforce is educated. Workers know what is needed to improve their jobs, and companies that do not tap into this significant source of knowledge will truly be at a competitive disadvantage.”
  • 10. History of Total Quality According to Phil Crosby, Quality is . . . An attitude: - Zero Defects - Continuous Improvement A measurement: - Price of Conformance, plus - Price of Nonconformance (defects)
  • 11. TQ: Transforming an Organization From Motivation through fear and loyalty To Motivation through shared vision Attitude: “It’s their problem” Ownership of every problem affecting the customer Attitude: “the way we’ve always done it” Continuous improvement Decisions based on assumptions/ judgment calls Decisions based on data and facts Everything begins and ends with management Everything begins and ends with customers Crisis management and recovery Doing it right the first time Choosing participative OR scientific management Choosing scientific AND participative management
  • 12. What is Six Sigma? • A goal of near perfection in meeting customer requirements • A sweeping culture change effort to position a company for greater customer satisfaction, profitability and competitiveness • A comprehensive and flexible system for achieving, sustaining and maximizing business success; uniquely driven by close understanding of customer needs, disciplined use of facts, data, and statistical analysis, and diligent attention to managing, improving and reinventing business processes (Source:The Six Sigma Way by Pande, Neuman and Cavanagh)
  • 13. Is 99% Quality Good Enough? • 22,000 checks will be deducted from the wrong bank accounts in the next 60 minutes. • 20,000 incorrect drug prescriptions will be written in the next 12 months. • 12 babies will be given to the wrong parents each day.
  • 14. Six Sigma Quality The objective of Six Sigma quality is 3.4 defects per million opportunities! (Number of Standard Deviations) 3 Sigma 4 Sigma 5 Sigma 6 Sigma 0.0 2700 63 0.57 0.002 0.5 6440 236 3.4 0.019 1.0 22832 1350 32 0.019 1.5 66803 6200 233 3.4 2.0 158,700 22800 1300 32
  • 15. But is Six Sigma Realistic? · (66810 ppm) · IRS – Tax Advice (phone-in) 100K 10K 41 1K 31 100 21 11 1 Restaurant Bills ······ · Doctor Prescription Writing Payroll Processing Order Write-up Journal Vouchers Wire Transfers Best in Class (3.4 ppm) Domestic Airline Flight Fatality Rate 3 4 5 6 7 10 1 2 3 4 5 6 (0.43 ppm) 7 · (233 ppm) Average Company Purchased Material Lot Reject Rate Air Line Baggage Handling Defects Per Million Opportunities (DPMO) SIGMA
  • 16. Six Sigma Improvement Methods DMAIC vs. DMADV Define Measure Analyze Design Validate Continuous Improvement Reengineering Improve Control
  • 17. Six Sigma DMAIC Process Control Measure Define Improve Analyze Define: Define who your customers are, and what their requirements are for your products and services – Their expectations. Define your team goals, project boundaries, what you will focus on and what you won’t. Define the process you are striving to improve by mapping the process.
  • 18. Six Sigma DMAIC Process Control Measure Define Improve Analyze Measure: Eliminate guesswork and assumptions about what customers need and expect and how well processes are working. Collect data from many sources to determine speed in responding to customer requests, defect types and how frequently they occur, client feedback on how processes fit their needs, how clients rate us over time, etc. The data collection may suggest Charter revision.
  • 19. Six Sigma DMAIC Process Control Measure Define Improve Analyze Analyze: Grounded in the context of the customer and competitive environment, analyze is used to organize data and look for process problems and opportunities. This step helps to identify gaps between current and goal performance, prioritize opportunities to improve, identify sources of variation and root causes of problems in the process.
  • 20. Six Sigma DMAIC Process Control Measure Define Improve Analyze Improve: Generate both obvious and creative solutions to fix and prevent problems. Finding creative solutions by correcting root causes requires innovation, technology and discipline.
  • 21. Six Sigma DMAIC Process Control Measure Define Improve Analyze Control: Insure that the process improvements, once implemented, will “hold the gains” rather than revert to the same problems again. Various control tools such as statistical process control can be used. Other tools such as procedure documentation helps institutionalize the improvement.
  • 22. Six Sigma DMADV Process Validate Measure Define Design Analyze Design: Develop detailed design for new process. Determine and evaluate enabling elements. Create control and testing plan for new design. Use tools such as simulation, benchmarking, DOE, Quality Function Deployment (QFD), FMECA analysis, and cost/benefit analysis.
  • 23. Six Sigma DMADV Process Validate Measure Define Design Analyze Validate: Test detailed design with a pilot implementation. If successful, develop and execute a full-scale implementation. Tools in this step include: planning tools, flowcharts/other process management techniques, and work documentation.

Editor's Notes

  1. 1980’s Long Range Encompasses entire organization
  2. Essential elements to business success include: Customer Loyalty Employee Commitment Operating Efficiency Some interesting evidence to validate transitioning into a Customer Focused company: Customer perception of quality in the top 1/5….pretax ROI=32% Customer perception of quality in the bottom 2/5….pretax ROI=14% Almost 70% of why customers left companies had nothing to do with product quality Only 4% of customers complain 65-90% of unhappy customers would never again buy from the company When people did complain and their problems were resolved quickly, 82% would buy again It costs five times as much to replace a typical customer as it does to take actions that would have kept the customer in the first place Only 4% of company problems or barriers to delighting the customer are known to top managers. (9% to managers, 74% to supervisors, 100% baseline employee) Truth: “Quality offers something to everyone…the customer, the employee, and the business. It stands for what most employees especially believe in…doing a job right the first time, being “the best” at what they do, and having everyone’s ideas treated with respect.”