Unit iii


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Unit iii

  2. 2. Primary approach Adaptation and deployment of a suitable quality improvement model, keeping in view the improvement needs and competition. Reason for adopting TQM - primarily to increase domestic and global competitiveness. There is need for clear, consistent and persistent leadership to introduce TQM principles. TQM can be implemented through a well- developed Total Quality system model.
  3. 3. Basic Elements of TQM strategy Concept of „customer-first‟ and listening to customers. Customer-focused vision, and strategic goals Care for employees and trust-building Creation of a Learning Organization for change and continuous improvement Leadership to remove barriers to achieving TQ Plans and measurement of result.
  4. 4. Deming Management Philosophy Propounded by W. Edwards Deming Was a statistician at Western Electric in 1930s During World War II – he taught quality control courses as part of national defense effort Taught engineers but failed to reach top management 1950s – he was invited to Japan to introduce statistical quality control concepts Mid 1970s – quality of Japanese products exceeded that of the West. He was practically unknown in the US till 1980.
  5. 5. Deming Management Philosophy He never really defined quality. “ a product or service possesses quality if it helps somebody and enjoys a good and sustainable market.” High quality High productivity long-term competitive strength Deming‟s Philosophy – “A System of Profound Knowledge” which consists of 4 parts;  Appreciation for a system  Understanding process variation  Theory of knowledge  Psychology
  6. 6. Deming‟s Philosophy1. Systems: A set of functions or activities that work together to achieve organizational goals A system must have an aim for everybody to gain over the long term– stockholders, employees, customers, community and environment Components of a system must work together for effectiveness Subsystems and people who work in them must be interrelated Management‟s job is to optimize the system. Systems require co-operation. Competition may be destructive
  7. 7. Deming‟s Philosophy2. Understanding process variation: No two outputs from any production process are exactly alike. Variation may be due to difference in material, tools, machinery, settings, operators, etc. and are difficult to comprehend. Common causes of variation - Factors present as a natural part of the process (80-90%) Special causes of variation – arise from external sources, thus not inherent in the process (10-20%)
  8. 8. Deming‟s Philosophy2. Understanding process variation: Common Causes of variation Special Causes of variation ›Inherent in the process ›External to the process ›Account for 80-90% of ›Account for 10-20% of observed variations observed variations ›Arise from variation in ›Arise from variation in quality methods, machines, etc. of material, poor training, etc. ›System governed only by ›System governed by special common causes is stable causes is unstable and disrupts and performance can be predictable pattern predicted ›If management ignores them, ›If management tries to fix they miss the opportunity to it, variation may increase. improve.
  9. 9. Deming‟s Philosophy2. Understanding process variation: Variation is the root cause of poor quality Variation increases the cost of doing business By minimizing variation, everybody benefits To reduce common cause variation – change technology of the process Pressurizing workers to perform at high quality can lead to frustration Special cause variation – can be corrected through training and management support
  10. 10. Deming‟s Philosophy3. Theory of knowledge: Concerned with nature and scope of knowledge, its presuppositions, and general reliability of claims to knowledge. Deming was influenced by Irving Lewis who stated that there is no knowledge without interpretation, the latter being an activity of the mind subject to further experience. Management decisions must be driven by facts, data, and justifiable theories, not solely by opinions. Good theories supported by data can establish cause- effect relationship, used for prediction. Theory explains why things happen.
  11. 11. Deming‟s Philosophy4. Psychology: It helps understand people, interactions between people and circumstances, between leaders and employees, etc. Psychology helps nurture and preserve people‟s positive innate attributes. Deming‟s contribution was in bringing together some basic concepts already developed by others in the field.
  12. 12. Deming – 14 Points for ManagementIntroduction: These points were devised during an era when organisations were ruled by autocratic managers, driven by short-term profits and little focus or interest in quality improvement. These points, even today, provide important insights for managers. Failure to heed them might lead to repetition of the mistakes made in the past.
  13. 13. Deming – 14 Points for Management1.Create and publish a statement of aims and purposes of the organisation and demonstrate management‟s commitment to it:Conduct a thorough assessment to identify the need for change as well as the areas that demand change, and follow up on opportunities. Without adequate commitment from management, change and improvement is not possible.
  14. 14. Deming – 14 Points for Management2. Learn the new philosophy:Old historical methods such as quota-driven production, work measurement, don‟t work. There should be new ways of thinking.Organisations need to continually renew themselves to learn new approaches including the Baldrige framework and Six Sigma
  15. 15. Deming – 14 Points for Management3. Understand the purpose of inspection:It is essential for improvement of processes and reduction of cost.Mid 20th Century – it was a principal means of quality control, which added little value to the product.Deming suggested that inspection should be used wisely as an information-gathering tool for improvement.Better understanding can eliminate unnecessary inspection or perform critical inspection to avoid expensive rework.
  16. 16. Deming – 14 Points for Management4. End Price-tag Decisions:Purchasing decisions have been conventionally driven by cost through competitive bidding.Deming promoted the recognition of purchasing departments as „internal suppliers‟ to production.He urged businesses to be loyal to few suppliers thereby enhancing opportunity for improvement.Supply chains need to be established to develop stronger partnerships with suppliers.
  17. 17. Deming – 14 Points for Management5. Improve Constantly:Traditionally not a common practice, but currently an essential means to survival in competition.Improvements are sought in design (through customer feedback and understanding customer needs)and operations (by reducing variation, encouraging innovation, etc.).Use appropriate tools for improvement.
  18. 18. Deming – 14 Points for Management6. Institute training:People are the most valuable resourceTraining, besides improving product/service quality; adds to worker morale by demonstrating that the company is interested in investing in their future.Training should aim to identify, diagnose, analyze and solve performance problems.Some provide excellent training for technology related to production, but fail to enrich ancillary skills of their workforce.
  19. 19. Deming – 14 Points for Management7. Teach & Institute Leadership:Management must lead and guide, not supervise and direct.Supervision must provide a link between management and workforce. Leadership should help eliminate fear and instill teamwork.Leadership gets challenging as new generations of managers replace those who have learned to lead.
  20. 20. Deming – 14 Points for Management8. Drive out fear:Fear in work – fear of failure, change, the unknown.It encourages short-term selfish thinking and not long-term improvement.Creating a culture without fear is a slow process.It can happen through positive motivation and effective leadership & corporate policies.Managers should be sensitive to the impact that fear can have on their organisations.
  21. 21. Deming – 14 Points for Management9. Optimize Team Efforts:Barriers between individuals and departments lead to poor quality. This is often a result of internal competition.Teamwork helps break down barriers between internal customers and suppliers.Focus should be on meeting customer needs and improving processes as a means to achieving corporate goals.
  22. 22. Deming – 14 Points for Management10. Eliminate Exhortations:Motivate through trust and leadership than slogans.However, workers cannot improve solely from motivational methods without a system that enhances their performance.Where the environment constrains their output, they become frustrated and perform badly.Take the help of data-driven processes and better organizational design to drive improvement.
  23. 23. Deming – 14 Points for Management11. Eliminate Quotas and MBO:Numerical quotas encourage short-term behavior rather than long-term.Deming – goals are useful, but numerical goals set without incorporating a method to reach there, generate frustration and resentment.Where variations occur, strive to understand the reasons for variation, find means to improve rather than focus on short-term goals.
  24. 24. Deming – 14 Points for Management12. Remove barriers to pride in workmanship:Stop viewing workers as „commodities‟Don‟t give them monotonous work with inferior machines, or material, or require them to report to supervisors who don‟t know the job.Empower workers with a sense of ownership of their work processes and show higher self- esteem.
  25. 25. Deming – 14 Points for Management13. Institute Education:Where training refers to job skills, education refers to self-development.Firms should develop value and self-worth of employees by investing in them.It is an effective method to motivate employees and is found to return many benefits.Educating employees must not be viewed as a cost.
  26. 26. Deming – 14 Points for Management14. Take Action:Cultural changes anywhere, starts with top management, and includes everyone.Changing an organizational culture may be met with resistance in many firms.This normally happens when traditional management practices are deeply ingrained into the organizations culture.Nevertheless, take appropriate action to imbibe change.
  27. 27. The Juran Philosophy Joseph M Juran joined the Western Electric in 1920s Spent much of his tenure as a corporate industrial engineer 1951 – wrote and published „Quality Control Handbook‟, one of the most comprehensive books on quality. 1950s - He taught quality principles to Japanese, just after Deming He was a principle force in their quality reorganisation
  28. 28. The Juran Philosophy Juran viewed quality on two levels; i. The mission of the firm as a whole is to achieve high product quality ii. The mission of each individual department in the firm is to achieve high production quality Senior management must play an active leadership role in quality management process. He believed that employees at different levels spoke different „languages‟. Thus, to get management‟s attention, quality issues must be addressed through analysis of quality costs.
  29. 29. The Juran Philosophy Focus on conformance to specifications through  Elimination of defects and  Support by statistical tools He defined quality as “fitness for use.” It consists of four parts  Quality of design  Quality of conformance  Availability  Field service
  30. 30. The Juran Philosophy Quality of design: Focuses on market research, product concept and design specifications Quality of conformance: Includes technology, manpower and management Availability: Focuses on reliability, maintainability and logistical support Field service: Includes promptness, competence and integrity
  31. 31. The Juran Philosophy Juran prescribed the Juran Quality Trilogy consisting of Quality planning – the process for preparing to meet quality goals Quality control – the process of meeting quality goals during operations Quality improvement – the process for breaking through to unprecedented levels of performance.
  32. 32. The Juran Philosophy Adopted top-down approach. It is management‟s responsibility to achieve quality Emphasised on problem solving techniques He advocated 10 steps to quality improvement:i. Build awareness of opportunitiesii. Set goals for improvement in all areas of workiii. Organise to reach goals.iv. Carry out improvement projects to solve problemsv. Provide training to people
  33. 33. The Juran Philosophyvi. Give recognition for quality workvii. Report progressviii. Communicate resultsix. Keep the scorex. Maintain momentum of progressBased on these principles, Juran propagated a concept “Managing Business Process quality” by cross- functional quality improvement programs
  34. 34. The Crosby Philosophy Advocated by Philip B. Crosby, who was corporate vice president at International Telephone & Telegraph for 14 years. He established the Philip Crosby Associates in 1979 to develop and offer training programs. He authored several books, “quality without tears”, “quality is free”, etc that were easy for people to read. He popularized the idea of the "cost of poor quality", that is, figuring out how much it really costs to do things badly
  35. 35. The Crosby Philosophy He believed that zero defects is not something that originates on the assembly line Management must set the tone and atmosphere for employees to follow Benefit - dramatic decrease in wasted resources and time spent producing goods that consumers do not want Mr. Crosby defined quality as a conformity to certain specifications set forth by management
  36. 36. The Crosby Philosophy Crosbys response to the quality crisis was the principle of "doing it right the first time" (DRIFT) which included four important principles 1) Quality is defined as conformance to requirements, not as goodness or elegance. 2) The system for causing quality is prevention, not appraisal. 3) The performance standard must be Zero Defects, not "thats close enough". 4) The measurement of quality is the Price of Non- conformance.
  37. 37. The Crosby Philosophy Zero Defects (ZD) Performance standard:  Theme – do it right the first time  Prevent defects, not find and fix them  People are conditioned to believe that error is inevitable… they not only accept but anticipate it!  Most human error is a result of lack of attention rather than lack of knowledge.  ZD standard – help to eliminate waste due to rework, scrap and repair
  38. 38. The Crosby Philosophy Basic elements of quality improvement: Determination, education and implementation. Emphasis on management and organisational processes for changing corporate culture. Crosby Philosophy fits well within existing organisational structures. Like Deming, Crosby has also prescribed his 14 points of quality management, as follows;
  39. 39. The Crosby Philosophy 14 principles for quality improvement – Crosby:i. Commitment of top management to qualityii. Team approach to quality improvementiii. Measure quality to identify improvement areasiv. System for measuring cost of qualityv. Initiating corrective actionsvi. Promoting quality awareness in the companyvii. Planning „zero defect‟ programme
  40. 40. The Crosby Philosophyviii. Organizing supervisory training for all levelsix. Setting goals for improvementx. Promoting work systems for performing error-free workxi. Observe zero-defects day to stress quality standardsxii. Recognize those who meet their quality goalsxiii. Constitute „quality councils‟ of quality professionals to share experiences, problems and solutionsxiv. „Do it all over again‟ for improvement.
  41. 41. Armand Feigenbaum‟s Philosophy 1950s – He recognized the importance of comprehensive approach to Quality Coined the term “Total Quality Control” Japanese adopted his concept and renamed it Company-wide Quality Control Defines Total Quality as excellence-driven rather than a defect-driven concept He viewed quality as a strategic business tool that requires involvement from everyone, and promoted the use of quality costs to measure and evaluate quality.
  42. 42. Armand Feigenbaum‟s Philosophy He believed that TQM is based on three core principles: customer focus, participation and teamwork, continuous improvement. Practices Principles Infrastructure Participation & Teamwork Tools & techniques
  43. 43. Armand Feigenbaum‟s Philosophy He observed that quality is directly influenced by 9 M‟s1. Markets2. Money3. Management4. Men5. Materials6. Machines7. Modern information methods8. Mounting product requirements9. Motivation
  44. 44. Armand Feigenbaum‟s Philosophy Focus on TQM should be:  Satisfy customers better than competitors do  Compensate for weaknesses inherent in the culture  Use facilitation, mediate structure to imbibe change  Benchmark against best-of-breed companies  Use scientific methods, not opinion or gut-feel  All dealings to be based on sincerity and trust  Use customers and competitors to drive all decisions  Get the workforce to manage itself
  45. 45. Armand Feigenbaum‟s Philosophy Focus on TQM should be:  Build on continuous learning and improvement processes  Use technology effectively  Measure key parameters for all activities  Get people to perform mundane activities with a focus on quality  Emphasize process more than product  Turn employees from skill hoarders to disseminators  Use cross-functional teams
  46. 46. Armand Feigenbaum‟s Philosophy Key elements of quality control:a) Total quality control is a system for quality developmentb) The „control‟ aspect involves setting standards, appraising performance and taking corrective actionc) Factors that affect quality can be divided into two categories; viz., technology and humand) Operating quality costs can be divided into four parts; prevention costs, appraisal costs, internal failure costs and external failure costse) It is important to control quality at the source.
  47. 47. Shewhart‟s Philosophy Walter A Shewhart – Father of Quality Deming learned „at the feet‟ of Shewhart. Credit for TQM philosophy goes to two people, Shewhart, and his student, Deming. Shewhart introduced the concept of Statistical Process Control which became the cornerstone for process control. Statistical Process Control involves the use of a system to chart separately common causes and special causes of variation, and then remedy it
  48. 48. Shewhart‟s Philosophy For SPC to work effectively, the common cause variation needs to be really small relative to specification limits. Control processes are hampered greatly by lack of information. SPC will aid managers to make scientific, efficient and economical decisions. He developed Shewhart Cycle Learning and Improvement Cycle, combining creative thinking with statistical analysis. The cycle contains 4 continuous steps: Plan, do, study, act. (The PDSA Cycle)
  49. 49. Shewhart‟s Philosophy The major contribution made by Shewhart is the PDSA cycle of management.  Plan what you want to do  Do what is planned  Study the results  Act – make corrections  Plan for improvements (start the cycle again)
  50. 50. Shewhart‟s Philosophy Another of his noteworthy contributions includes control charts; which is a fundamental tool of SPC. Control chart is the graphical device which helps in identifying the variation in characteristics for improvement. It is the line chart with control limits It helps to identify whether processes are operating consistently. Control charts have 3 components:  A centerline (the mathematical average of samples)  Upper and lower control limits defining constraints  Performance data plotted over time
  51. 51. Shewhart‟s PhilosophyControl charts – applications To establish a state of statistical control To monitor a process and signal when it goes out of control To determine process capabilityThe American Society for Quality presents a Shewhart Medal – for outstanding contribution to the science and techniques of quality control or for demonstrating leadership in the field of QC.