TOTAL QUALITY MANAGEME NT (TQM). Total Quality Management TQM is a philosophy which applies equally...

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TOTAL QUALITY MANAGEMENT (TQM)

Total Quality Management

TQM is a philosophy which applies equally to all parts of the organization.

TQM can be viewed as an extension of the traditional approach to quality.

TQM places the customer at the forefront of quality decision making.

Greater emphasis on the roles and responsibilities of every member of staff within an organization to influence quality.

All staff are empowered.

Elements of TQM Leadership

Top management vision, planning and support.

Employee involvement All employees assume responsibility for the

quality of their work. Product/Process Excellence

Involves the process for continuous improvement.

Elements of TQM Continuous Improvement

A concept that recognizes that quality improvement is a journey with no end and that there is a need for continually looking for new approaches for improving quality.

Customer Focus on “Fitness for Use” Design quality

Specific characteristics of a product that determine its value in the marketplace.

Conformance quality The degree to which a product meets its design

specifications.

A fundamental concept of TQM

“A set of inter-related resources and activities which transform inputs into outputs.”

“Any activity that accepts inputs, adds values to these inputs for customers, and produces outputs for these customers. The customers may be either internal or external to the organization.”

DIMENSIONS OF QUALITY OR QUALITY CHARACTERISTICSwhat the customer looks in a product.

DIMENSIONS OF QUALITY FOR PRODUCTS & SERVICES

PerformanceFeatures

ReliabilityConformance

DurabilityServiceability

THE COST OF QUALITYPREVENTION COSTSQuality planning costsProduct design costsProcess costsTraining costsInformation costs

INTERNAL FAILURE COSTSScrap costsRework costsProcess failure costsProcess downtime costsPrice reduction

THE COST OF QUALITY (CONT.)

EXTERNAL FAILURE COSTSCustomer complaint costsProduct return costsWarranty claim costsProduct liability costsLost sales costs

THE COST OF QUALITY (CONT.)

TQM PRINCIPLESCustomer-defined qualityManagement leadership toward qualityStrategic quality planningEmployee responsibilityContinuous quality improvementCooperation between the employees and the managementUse of statistical quality controlTraining

TQM & organizational Cultural ChangeTraditional Approach

Lack of communication

Control of staff

Inspection & fire fighting

Internal focus on rule

Stability seeking

Adversarial relations

Allocating blame

TQM

Open communications

Empowerment

Prevention

External focus on customer

Continuous improvement

Co-operative relations

Solving problems at their roots

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Perceived quality is poor

Perceived quality is good

Expectations > perceptions

Expectations = perceptions

Expectations < perceptions

Perceived quality is governed by the gap between customers’ expectations and their perceptions of the product or service

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Source: Slack et al. 2004

Customer’s expectations concerning a

product or service

Customer’s perceptions

concerning the product or service

PreviousExperience

Word of mouth communications

Image of product or service

Customer’s own specification of

quality

Management’s concept of the

product or service

organization’s specification of

quality

The actual product or serviceGap 1

Gap 2

Gap 3

Gap 4

A “Gap” model of Quality

Source: Parasuraman, Zeithman and Berry. 1985

10080604020

No. of Occurrence

s per Month

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ABC Classification of Defects

Group A: Critical DefectsGroup B: Moderate DefectsGroup C: Minor Defects

1.Pareto Chart A method for identifying causes of poor quality

2. A Process Chart A diagram showing job operations or a process

Brush BodyFibers

Fill

Trim

InspectMake

Box

Insert

CloseWrap

Inspect

Reserve

Master Pack

Stack

Master Box

Fold Up

Plastic Sheet

Pallet

Deliver

Obstacles to Implementing TQM

Lack of a company-wide definition of quality. Lack of a formalized strategic plan for change. Lack of a customer focus. Poor inter-organizational communication. Lack of real employee empowerment. Lack of employee trust in senior management. View of the quality program as a quick fix. Drive for short-term financial results. Politics and turf issues.

PDCA Cycle repeated to create continuous improvement

Time

Performance

“Continuous”improvement

Plan

Do

Check

Act

Product

Continual improvement of the quality management systemContinual improvement of the quality management system

Customers(and otherinterested parties)

Requirements

Managementresponsibility

Resourcemanagement

Measurement, analysis and improvement

Productrealisation

Output

Satisfaction

Input

Source: BS EN ISO 9001:2000

Key: Value adding activity information flow

Customers(and otherinterested parties)

3. A Check Sheet A list of causes of quality problems with the number of defects resulting from each cause

/

/

/ / /// /

// ///

// ////

///

//

/

Defects 1 2 3 4 5 6 7 8

Cracks

Dents

Hairlines

/

/

//

/

/

//

Hour

4. A Histogram A bar chart showing the frequency of occurrence of causes of defects

DispersionDispersion

LengthLength

No.

of

Occu

rren

ces

No.

of

Occu

rren

ces

5. A Scatter Diagram A graph showing how two process variables relate to each other

AbsenteesAbsentees

ProductivityProductivity

6. A Control Chart and Statistical Process Control (SPC)Monitoring of a production process using the statistical quality control technique

0

0.05

0.1

0.15

0.2

0.25

1 2 3 4 5 6 7 8 9 1011121314151617181920

UCL

LCL

CausesCausesMaterialsMaterialsMethodMethod

ManpowerManpowerMachineMachine

EffectEffectQuality Problem

s

7. A Fishbone Diagram

A chart showing the different categories of problem causes.