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Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action www.bsieducation.org/ standardsinaction SUSTAINABLE DEVELOPMENT OF TOTAL QUALITY MANAGEMENT THROUGH DEMING’S PDSA CYCLE Author: Dr. G. Karuppusami
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Page 1: Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action  SUSTAINABLE.

Sustainable development of total quality management through Deming’s PDSA cycle

Standards in Actionwww.bsieducation.org/standardsinaction

SUSTAINABLE DEVELOPMENT OF TOTAL QUALITY

MANAGEMENT THROUGH DEMING’S PDSA

CYCLE

Author: Dr. G. Karuppusami

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Sustainable development of total quality management through Deming’s PDSA cycle

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Abbreviations

TQM Total Quality Management

CSF Critical Success Factor

QAP Quality-related Action Program

PDSA Plan-Do-Study-Act

TQMII Total Quality Management Implementation Index

2

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Sustainable development of total quality management through Deming’s PDSA cycle

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What is Quality?

Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy implied or stated needs.

ANSI/ASQC STD A3-1987.

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Sustainable development of total quality management through Deming’s PDSA cycle

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What is Quality?• Feigenbaum (1951) and Abbott (1955) defined quality as ‘value’,

• Levitt (1972) as ‘conformance to specifications’,

• Juran et al. (1974) as ‘fitness for use’,

• Crosby (1979) as ‘conformance to requirements’,

• Taguchi (1981) as ‘the losses a product imparts to the society from the time the product is shipped’,

• Reeves and Bednar, (1994) as ‘the extent to which a product or service meets and/or exceeds a customer’s expectations’ which reflects a shift in focus to customer satisfaction.

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Sustainable development of total quality management through Deming’s PDSA cycle

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Total quality management• Ho (1997) defines the term TQM as:

‘Total = everyone associated with the company is involved in continuous improvement (including its’ customers and suppliers if feasible);

Quality = customers’ expressed and implied requirements are met fully;

Management = executives are fully committed’.

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Sustainable development of total quality management through Deming’s PDSA cycle

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Motivation for the study

The business units are ever increasingly forced to achieve world-class manufacturing capabilities in order to compete and, in many cases, to achieve in the market. One of the means to achieve the world-class manufacturing capability is through the practices of Total Quality Management (Joseph, et al., 1999)

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Sustainable development of total quality management through Deming’s PDSA cycle

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Full TQM (OR) Partial TQM?

• The problem with TQM is not whether companies have been converted to the philosophy: many surveys have shown the philosophy being embraced by organizations (Yong & Wilkinson, 1999). The issue relates more acutely to whether these supposedly TQM companies are actually practicing ‘total or partial TQM’ (Wilkinson et al., 1998).

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Sustainable development of total quality management through Deming’s PDSA cycle

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Some obstacles to achieving TQM

• Lack of top management support• Lack of customer focus• Lack of employee empowerment• Lack of training

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Sustainable development of total quality management through Deming’s PDSA cycle

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‘Quality is one of the twentieth century’s most important management ideas’

(Feigenbaum, 1999)

‘You can’t manage what you don’t measure’

(Wert, 2003)

Criteria for the study

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Sustainable development of total quality management through Deming’s PDSA cycle

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Critical Success Factors (CSFs) of TQM

• CSFs are the critical areas of managerial planning and action that must be practiced to achieve effective quality management in a business unit (Saraph et al., (1989)

• CSFs are critical and absolutely essential for the success of TQM. The process stands a good chance of ending in failure if these factors are not part of the management process.

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Sustainable development of total quality management through Deming’s PDSA cycle

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CSFs reported by Saraph et al., (1989)

1. The role of management leadership and quality policy2. Role of quality department3. Training4. Product / service design5. Supplier quality management6. Process management7. Quality data and reporting8. Employee relations

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Sustainable development of total quality management through Deming’s PDSA cycle

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Quality Related Action Programs (QAPs)

• Critical success factors of TQM are latent variables, which means they cannot be measured directly. Hence Quality-related Action Programs (QAPs) are generated that represent manifestations of these CSFs. QAPs are the quality management prescriptions.

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QAPs of CSF ‘The role of top management leadership and quality policy’

1. Top management responsibility for quality performance

2. Performance evaluation based on quality

3. Acceptance of responsibility for quality by major dept heads

4. Degree of participation by dept heads in quality improvement process

5. Consideration of quality as first priority

6. Discussion of quality related issues in meetings

7. Extent to which quality goals and policies are understood

8. Degree of comprehensiveness of quality plan

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CSFs and QAPs of TQM

QAP 1 QAP 2 QAP 3 QAP i

CSF 1

QAP 1 QAP 2 QAP 3 QAP i

CSF 2

QAP 1 QAP 2 QAP 3 QAP i

CSF n

TQM

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Sustainable development of TQM• Quinn (2000) describes sustainability as the

development that meets present needs without compromising the ability of future generations to meet their own needs.

• Without sustainability, there is little benefit to be gained from TQM (Curry et al., 2002).

• The focus of maintaining competitive advantage and performance does not simply emphasize the present time, but also the future (Zairi, 2002).

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Sustainable development of TQM

Sustainability is defined as ‘the ability of an organization to adapt to change in the business environment to capture contemporary best practice methods and to achieve and maintain superior competitive performance’ (Zairi & Liburd 2001).

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Step 3: Study and measure the level

of TQM implementation

Step 1: Plan for TQM

Step 2: Implement TQM

Step 4: Take necessary actions to

improve the less developed programs

of TQM

ACTPLAN

DO

STUDY

PDSA Cycle for sustainable development of TQM

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TQM Implementation Index (TQMII)

TQM Implementation Index (TQMII) can be interpreted as the level of TQM implementation of a company on a unit scale. Input is the company’s total quality effort. Output is the level of the performance of the plant. TQMII measures how well a company has implemented its TQM.

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Sustainable development of total quality management through Deming’s PDSA cycle

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Framework for TQMII calculation

• The set of CSFs and QAPs implemented by the company.

• The list of departments involved in the quality programs.

• The level of quality consciousness of the departments.

• The degree to which critical quality factors and quality action programs applied.

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TQMIIimk

TQM Implementation space

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Notations

i = Index of QAPs Dm = Departments m = Index of departments Zm =Ideal weight factor assigned department Wm =Revised normalized weight of

department Vim = Actual performance of quality-related

action programme i in department m

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Sustainable development of total quality management through Deming’s PDSA cycle

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TQMII Algorithm

Algorithm developed by Kumar et.al.(2004) is adopted. TQMII algorithm for the firm (or) CSF is as follows.

i = 1, 2, 3…..I; m = 1, 2, 3 …. M,

I = Total number of QAPs of the firm or CSF

Mm

m

Mm

m

mim

Ii

i

ZmI

WVTQMII

1

11

10

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Presentation of a Case Study to illustrate TQMII

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Sustainable development of total quality management through Deming’s PDSA cycle

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Case Study

• The suggested PDSA model for TQM implementation was applied to an automotive ancillary company located in South India.

• The company is the largest manufacturer of automotive horns in India and has ISO 9002, ISO 14001, ISO/TS 16949:1999 certifications.

• Thirteen CSFs and 85 QAPs were selected by the expert committee.

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Case Study – CSFs selected1. Role of top management and quality policy2. Supplier quality management 3. Customer focus4. Process management 5. Product / service design6. Quality data and reporting7. Training8. Employee relations9. Role of quality department10. Benchmarking11. Information technology analysis12. Lean manufacturing13. Continuous improvement

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TQMII Calculation – Step 1 (Table 1)

1. Compute each department’s normalized quality consciousness weight

The calculation for the first the department ‘D1’ is as follows;

W1= 10×(0.5×2 + 1×4 + 2.5×6 + 3×8 + 3×10) = 7.4 10×10

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TQMII Calculation – Step 2 (Table 1)

2. Compute each department’s quality consciousness state efficiency.

The calculation for the first the department ‘D1’ is as follows;

QCSE1= (0.5×2 + 1×4 + 2.5×6 + 3×8 + 3×10) = 0.74

10×10

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TQMII Calculation – Step 3 (Table 2)

3. Compute TQMII of QAPs

i = 1, 2, 3…..I; m = 1, 2, 3 …. M

Mm

m

Mm

m

mim

Ii

i

Zm

WVTQMII

1

11

10

TQMII of QAP 1 is as follows

= (9×7.4 + 10×6 + 7×5.81 + 10×5.46 + 10×7.92 + 10×7.7 + 8×5.22 + 9×4.74 + 5×6.86)

10(10 + 10 + 7 + 7 + 9 + 10 + 9 + 6 + 7)

= 0.65

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Sustainable development of total quality management through Deming’s PDSA cycle

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TQMII Calculation – Step 4 (Table 2)

4. Calculate TQMII of the CSF or firm as a whole.

Mm

m

Mm

m

mim

Ii

i

ZmI

WVTQMII

1

11

10

I = Total number of QAPs of the firm or CSF, i = 1, 2, 3…..I; m = 1, 2, 3 …. M,

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Sustainable development of total quality management through Deming’s PDSA cycle

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Table 1 Department consciousness matrix

 Department name

Dm

 Weight

State of quality consciousness

Norm

alized Quality C

onsciousness weight, W

m

Quality consciousness state efficiency for D

epartment m

, QC

SE

m

 

Crisis M

anagement

Aw

areness

Em

ergence

Maturity

Sustenance

    k = 1 2 3 4 5    

Zm yk = 2 4 6 8 10    

Product engineering D1 10.00 X11 = 0.5 1 2.5 3 3 7.40 0.74

Quality assurance D2 10.00   2 2 2 2 2 6.00 0.60

Production planning & control D3 7.00   0.5 0.5 1 3 5 5.81 0.83

Application Engineering D4 7.00   0 1 1 6 2 5.46 0.78

Manufacturing Engineering D5 9.00   0 0 2 2 6 7.92 0.88

Production department D6 10.00   1 1 1 2.5 4.5 7.70 0.77

Materials department D7 9.00   1 1 6 2 0 5.22 0.58

Information Technology D8 6.00   0 1 2 3.5 3.5 4.74 0.79

Sales & Marketing department D9 7.00   0 0 0 1 9 6.86 0.98

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Table 2. TQMII CalculationCSFs, QAPs and weights   Index Performance weights of departments on each QAPs

CSF

QA

Ps Index (i)

QAPs

QA

Ps w

eight (Ui)

  D1 D2 D3 D4 D5

m = 1 2 3 4 5

wm = 7.40 6.00 5.81 5.46 7.92

Zm = 10.00 10.00 7.00 7.00 9.00

Role of T

op Managem

ent and Quality

Policy

1Top management responsibility for quality performance

8.86 V1m = 9 10 7 10 10

2 Performance evaluation based on quality 9.05   7 6 6 10 8

3Acceptance of responsibility for quality by major dept heads

8.95   6 8 7 6 10

4Degree of participation by dept heads in quality improvement process

8.95   7 9 6 10 10

5 Consideration of quality as first priority 9.33   8 8 7 10 10

6Discussion of quality related issues in meetings

8.81   8 10 5 9 10

7Extent to which quality goals and policies are understood

8.81   7 8 6 9 10

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Table 2. TQMII Calculation contd…

CSF

QA

Ps Index (i)

QAPs

QA

Ps w

eight (Ui)

  D6 D7 D8 D9

TQ

MII of Q

AP

I given state of quality

TQ

MII of C

SF

i given state of quality

m = 6 7 8 9

wm = 7.70 5.22 4.74 6.86

Zm = 10.0 9.00 6.00 7.00

Role of T

op Managem

ent and Quality P

olicy

1Top management responsibility for quality performance

8.86 V1m = 10 8 9 5 0.65

       

0.59

2 Performance evaluation based on quality 9.05   7 7 7 7 0.55

3Acceptance of responsibility for quality by major dept heads

8.95   9 6 7 6 0.56

4Degree of participation by dept heads in quality improvement process

8.95   7 6 6 7 0.58

5 Consideration of quality as first priority 9.33   9 8 7 8 0.63

6Discussion of quality related issues in meetings

8.81   7 10 5 7 0.60

7Extent to which quality goals and policies are understood

8.81   6 8 6 8 0.57

8Degree of comprehensiveness of quality plan

8.67   7 10 5 8 0.60

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TQMII of the selected organization

The combined level of TQM implementation index in

the selected organization was assessed

as 0.460 on a unit scale

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Recommendations as a result of the Study• Link the department quality consciousness state efficiency of

TQM implementation program to annual incentive scheme.

• Arrange training program for all the least developed QAPs.

• Encourage exchange of information and data among departments regarding TQMII.

• Obtain expert advice about the list of CSFs and QAPs selected for the TQMII analysis.

• Integrate the TQM programs with the procedures of ISO 9002, ISO 14001, ISO/TS 16949:1999 certifications.

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Conclusions

• The problem areas of TQM implementation correctly identified by the proposed PDSA method.

• The model allows tracking of TQM programs and departments that are substantially impacting the TQM implementation in the company.

• Specific recommendations were proposed to bring about improvements in those least developed TQM programs.

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References1 Crosby, P.B., (1979), Quality Is Free, New American Library, New York, NY

2 Curry, A. and Kadasah, N. (2002), “Focusing on key elements of TQM – evaluation for sustainability”, The TQM magazine, Vol. 14 No.4, pp 207-216.

3 Feigenbaum, A.V. (1951), Quality control: Principles, Practice, and Administration (New-York: McGraw-Hill).

4 Ho, D.C.K., Duffy, V.G. and Shih, H.M. (2001), “Total quality management: An empirical test for mediation effect”, International journal of production research, Vol.39 No.3, pp. 529-548.

5 Joseph, I. N., Rajendran, C. and Kamalanabhan, T.J. (1999), ” An Instrument For Measuring Total Quality Management Implementation in Manufacturing Based Business Units In India”, International journal of production research, Vol.37 No.10 pp. 2201-2215

6 Juran, J.M., Gryna, F.M., Jr. and Bingham, R.S. (1974), Quality Control handbook, 4 th edition, McGraw-hill, New York

7 Kumar, A., Stecke, K.E. and Motwani , J.G. (2004), ”An analytical framework to measure, benchmark, and improve the strategic position of an organization using a quality competitiveness index”, International Journal of Operations and Quantitative Management, Vol.10 No. 2, pp. 1-37.

8 Levitt, T. (1972), “Production line approach to service”, Harvard Business Review, Vol. 50, pp. 41-52

9 Quinn, B. (2000), “Sustaining New Jersey’s industrial future”, Pollution Engineering, Vol. 32 No.13, pp. 25-27.

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References contd…

10Reeves, C.A. and Bednar, D.A. (1994), “Defining quality: alternatives and implications”, Academy of Management Review, Vol. 19, pp. 419-441.

11Saraph, J. V., Benson, P. G. and Schroeder, R. G. (1989) “An Instrument for Measuring the Critical Factors of Quality Measurement”, Decision Sciences, Vol. 20 No. 4, pp. 810-29.

12 Taguchi, G., (1981), On-line quality control during production, Japanese standard’s association

13Wilkinson, A. (1998), “Empowerment”, International Encyclopaedia of Human Resource Management, pp. 507-17

14Yong, J. and Wilkinson, A. (1999), “The state of total quality management: a review’’, The International Journal of Human Resource Management, Vol. 10 No. 1, February, pp. 137-61.

15Zairi, M. (2002), “Beyond TQM implementation: the new paradigm of TQM sustainability“, Total Quality management, Vol. 13 No. 8, pp. 1161–1172.

16Zairi, M. and Liburd, L.M. (2001), “TQM sustainability- a roadmap for creating competitive advantage”, Integrated management, Proceedings of the 6 th International conference on ISO 9000 and TQM, Paisley, Ayr, Scotland, 17-19 April, pp. 452-461.

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Quality is a Journey, not a Destination

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