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TOTAL QUALITY MANAGEMENT:TOTAL QUALITY MANAGEMENT:TQMTQM
Origins, Evolution & Key ElementsOrigins, Evolution & Key Elements
Professor Jayashree Sadri and Dr. Sorab Professor Jayashree Sadri and Dr. Sorab SadriSadri
What is Quality?
Quality is “fitness for use”
(Joseph Juran)
Quality is “conformance to requirements”
(Philip B. Crosby)
Quality of a product or services is its ability to satisfy the needs and expectations of the customer
Evolution of Quality Management
Inspection
Quality Control
Quality Assurance
TQM
Salvage, sorting, grading, blending, corrective actions, identify sources of non-conformance
Develop quality manual, process performance data, self-inspection, product testing, basic quality planning, use of basic statistics, paperwork control.
Quality systems development, advanced quality planning, comprehensive quality manuals, use of quality costs, involvement of non-production operations, failure mode and effects analysis, SPC.
Policy deployment, involve supplier & customers, involve all operations, process management, performance measurement, teamwork, employee involvement.
Deming’s view of a production as a system
Consumer Research
Design & redesign
Receipt & test of materials
Suppliers, materials & equipment
Production, assembly, inspection
Distribution Consumers
Test of processes, machines, methods, cost
Improve Quality
Productivity improves
Provide jobs and more jobs
Deming’s Chain Reaction
Cost decreases because of less rework, fewer mistakes, fewer delays, snags, better use of machine time and materials
Stay in business
Capture the market with better quality and lower price
PLAN
CHECK
DOACT
The Deming Cycle or PDCA Cycle
Plan a change to the process. Predict the effect this change will have and plan how the effects will be measured
Implement the change on a small scale and measure the effects
Adopt the change as a permanent modification to the process, or abandon it.
Study the results to learn what effect the change had, if any.
W. Edwards Deming’s 14 Points
Create constancy of purpose towards improvement of product and services.
Adopt the new philosophy. We can no longer live with commonly accepted levels of delays, mistakes, defective workmanship.
Cease dependence on mass inspection. Require, instead, statistical evidence that quality is built in.
End the practice of awarding business on the basis of price tag.
1)
2)
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4)
W. Edwards Deming’s 14 Points
Find problems. It is management’s job to work continually on the system.
Institute modern methods of training on the job.
Institute modern methods of supervision of production workers. The responsibility of foremen must be changed from numbers to quality.
Drive out fear that everyone may work effectively for the company.
5)
6)
7)
8)
Break down barriers between departments.
Eliminate numerical goals, posters and slogans for the workforce asking for new levels of productivity without providing methods.
Eliminate work standards that prescribe numerical quotas.
Remove barriers that stand between the hourly worker and his right to pride of workmanship.
9)
10)
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12)
W. Edwards Deming’s 14 Points
Institute a vigorous programme of education and retraining.
Create a structure in top management that will push everyday on the above 13 points.
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14)
W. Edwards Deming’s 14 Points
Deming’s System of Profound Knowledge
Appreciation for system
Knowledge about variation
Theory about knowledge
Knowledge of psychology
Joseph M. Juran and the Cost Of Quality
2 types of costs:
Unavoidable Costs: preventing defects (inspection, sampling, sorting, QC)
Avoidable Costs: defects and product failures (scrapped materials, labour for re-work, complaint processing, losses from unhappy customers
“Gold in the Mine”
Joseph M. Juran and the Cost Of Quality
100% defective Point of “Enough quality”
Total Costs
Unavoidable costs
Avoidable costs
Costs
What is TQM?
Constant drive for continuous
improvement and learning.
Concern for employee
involvement and development
Management by Fact
Result FocusPassion to deliver customer value /
excellence
Organisation response ability
Actions not just words
(implementation)Process
Management
Partnership perspective (internal / external)
Learning
LEARNING AND TQM
Process Improvement
Quality Improvement
Customer Satisfaction
Shareholder Satisfaction
Employee Satisfaction
BASIC PRINCIPLES OF TQM
Approach Management Led
Scope Company Wide
Scale Everyone is responsible for Quality
Philosophy Prevention not Detection
Standard Right First Time
Control Cost of Quality
Theme On going Improvement
FOUR KEY PRINCIPLESFOUR KEY PRINCIPLES
•Measure quality so you can affect it
•Focus on a moving customer
•Involve every employee
•Think long term - Act short term
THE CASE FOR QUALITY
1 Success of competitors who take quality seriously
2 Rising expectations of customers
3 Quality differentiates companies from the competition
4 Narrowing of supplier bases by quality conscious companies
.
5 Growing evidence that growth in market share comes from sustained quality.
6 Cost advantages
7 High cost of catastrophic failure
8 Inspection poor substitute for right first time
THE CASE FOR QUALITY
SEVEN DEADLY SINS OF TQMSEVEN DEADLY SINS OF TQM
•Flight to nowhereFlight to nowhere
•One size fits allOne size fits all
•Substituting TQM for leadershipSubstituting TQM for leadership
•Inside - Out indicatorsInside - Out indicators
•Mandatory religionMandatory religion
•Quality kept as a separate activityQuality kept as a separate activity
•Teaching to the testTeaching to the test
Booz-Allen & HamiltonBooz-Allen & Hamilton
IS QUALITY A SOUND INVESTMENT?Year Company Stock Growth (Oct 94)1988 Motorola 373.0%1988 Westinghouse (CNFD) - 49.6%1989 Xerox (BPS) 75.9%1990 General Motors 1.6%1990 Federal Express 10.6%1990 IBM (IBM Rochester) - 34.9%1991 Selectron 526.9%1992 AT&T (UCS) 32.2%1992 AT&T (TSBU) 32.2%1992 Texas Instruments (DS&E) 106.8%1993 Zyta 8.4%1994 Eastman Chemical 18.5%
Total Stock Value £23016 (91.8% growth)Standard & Poor 500 Stock value £15911 (32.6% growth)Source: US Dept. of Commerce Study 1995
Project Quality AssuranceProject Quality AssuranceProject Quality PlanProject Quality Plan
PQPPQP
Q
Project Quality PlanProject Quality PlanDefinitionDefinition
• The project quality plan is a documented description of the project management system and must be approved by the AEM, in part to demonstrate his commitment to quality but primarily it is the means by which technical and administrative authorities are delegated through out the project.
• All projects shall have quality plan.
• Project engineer shall develop and update the PQP..
Relationships between project quality plansRelationships between project quality plans
PQPADCO
PQPDesigner
PQPconstructioncontractor
Suppliersquality plans
Preparation of a project quality planPreparation of a project quality plan
Confirm project objectives
Plan the project allocate resources
Identify critical activities
Define standards and controls
Audits
Close-out
AEM/PE/HEAEM/PE/HE
AEM/PEAEM/PE
HE/HC/PEHE/HC/PE
DE/CE/PEDE/CE/PE
QA/SCE/PEQA/SCE/PE
PEPE
CONTENTS OF TYPICAL PROJECT QUALITY PLANCONTENTS OF TYPICAL PROJECT QUALITY PLAN
1.1.COVER SHEET + REVISION CONTROLCOVER SHEET + REVISION CONTROL
1.1 Document purpose 1.1 Document purpose
1.2 Policy statement1.2 Policy statement
2.2.INTRODUCTIONINTRODUCTION
2.12.1 BackgroundBackground
2.22.2 Project ScopeProject Scope
2.32.3 Project Objectives & ConstraintsProject Objectives & Constraints
2.42.4 QA Standards (Consider putting in Document purpose)QA Standards (Consider putting in Document purpose)
CONTENTS OF TYPICAL PROJECT QUALITY PLANCONTENTS OF TYPICAL PROJECT QUALITY PLAN
3. 3. EXECUTION STRATEGYEXECUTION STRATEGY
3.13.1 Project Management risks.Project Management risks.
3.23.2 Critical Activities.Critical Activities.
3.33.3 Control Strategy.Control Strategy.
3.43.4 Cost & Schedule.Cost & Schedule.
3.53.5 HSE Plan.HSE Plan.
3.63.6 Commissioning & Hand-over.Commissioning & Hand-over.
CONTENTS OF TYPICAL PROJECT QUALITY PLANCONTENTS OF TYPICAL PROJECT QUALITY PLAN
4.4.ORGANISATION, RESPONSIBILITES & INTERFACESORGANISATION, RESPONSIBILITES & INTERFACES
4.14.1 Table with namesTable with names
4.24.2 External interfaces External interfaces
4.34.3 Definition of specific roles and responsibilities.Definition of specific roles and responsibilities.
5. 5. QUALITY REFERENCE SYSTEMQUALITY REFERENCE SYSTEM
5.15.1 Controlling DocumentsControlling Documents
5.25.2 Applicable Procedures (Check list based)Applicable Procedures (Check list based)
6.6.INTEGRATION OF CONTRACTORS & SUPPLIERSINTEGRATION OF CONTRACTORS & SUPPLIERS
6.16.1 Define Contractor interfaces.Define Contractor interfaces.
6.26.2 Contractor + Supplier Quality System.Contractor + Supplier Quality System.
CONTENTS OF TYPICAL PROJECT QUALITY PLANCONTENTS OF TYPICAL PROJECT QUALITY PLAN
7.7.AUDITS & REVIEWSAUDITS & REVIEWS
This section should include schedule for:This section should include schedule for:
* PHSER* PHSER * HSEIA* HSEIA
* HAZOP* HAZOP * VE* VE
* TECHNICAL REVIEWS* TECHNICAL REVIEWS * QA AUDITS* QA AUDITS
* LESSONS LEARNT REVIEW.* LESSONS LEARNT REVIEW.
8. 8. QUALITY IMPROVEMENTQUALITY IMPROVEMENT
8.1 LESSONS LEARNT8.1 LESSONS LEARNT
8.2 CLOSE-OUT REPORT8.2 CLOSE-OUT REPORT
CONTENTS OF TYPICAL PROJECT QUALITY PLANCONTENTS OF TYPICAL PROJECT QUALITY PLANPREPARATION & APPROVALS:PREPARATION & APPROVALS:
PREPARE:PREPARE: PE, PM and / or Team LeadersPE, PM and / or Team Leaders
ENDORSE:ENDORSE: AEMAEM
APPROVE:APPROVE: EPMEPM
TimingTiming
The nominated PE, PM or Team leader shall develop the PQP The nominated PE, PM or Team leader shall develop the PQP
immediately after receiving the PID document and approval of theimmediately after receiving the PID document and approval of the
project in the Business Plan.project in the Business Plan.
Quality is a Journey, not a Destination