Total Quality Management

Introduction to TQM

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What are the current concerns of the Top Management?

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References

• Total Quality Management by Dale H Besterfield and others, third edn, Pearson

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Evaluation pattern

• Attendance 5 marks• Class Test-1- 20 marks• Quizzes & Presentations -15 marks

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10 Current Concerns of Top Management

Shareholder interests

Corporate strategy

Corporate Governance

Ecology and environment

Technology and

InformationSustainable Growth &

Profits

Globalization

Employee retention

Customer retention

Total Quality Management

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Why is Quality a concern?

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Some Reasons

• Demands continuous attention• Customer satisfaction• Competitive advantage• Self correcting• Cultural change• Involvement of all and hence Total

involvement

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Total Quality Management touches all Departments & activities of the

Organization

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The Road Map of TQM

1.Defining Quality

2. Evolution of Quality

Movement

3.The Gurus of Quality

Management

4. Principles and Practices

5. Tools and Techniques

6.Product or Service

Realization7.Customer

The road map suggests the manner in which an organization becomes aware of the importance of adopting Total Quality Management .

The Road Map of the Study of TQM1Intro

toQuality

2Contribution of the Gurus

3Principles and Practices

4Tools and Techniques

1.Shewhart2.Demming3. Juran4.Figenbaum5.Ishikawa6.Crossby7.Taguchi

1. Leadership2. CustomerSatisfaction3. Employee involvement4. Supplier Partnerships5. Costs of Quality

1. Benchmarking2. I.T3. Q M S and ISO4. SQC5. Sampling and Reliability6. FMEA7. JIT and Lean Mfg.8. Stat. Proc. Control9. CMM & PCMM

5Application and

Implementation

Product / Service Quality

1. Motorola2. Toyota3. Others

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TQM- MMS IV Sem

S-1Introduction to TQM

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Contents

Quality Definition Quality Movements History of Quality Paradigms Quality Control & Assurance Total Quality Management - Pillars of TQM - Other components of TQM

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Quality- A saying

Quality is never an accident; it is always the result of high intention, sincere effort, intelligent direction and skillful execution; it represents the wise choice of many alternatives. Will A Foster

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Defining and Understanding Quality

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Quality Definition• Quality is the conformance to

requirements. (Crosby in 1979)

• Fitness for use. (Juran 1970)

• The degree to which a system, component, or process meets specified requirements. (IEEE)

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QUALITY IS …THE QUALIFIER!!

• Doing It Right First Time And All The Time. This boosts Customer satisfaction immensely and increases efficiency of the Business operations.

• Clearing The Bar i.e. Specification or Standard

stipulated. Excellence that is better than a minimum standard.

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• Quality is not fine-tuning your product at the final stage of manufacturing, before packaging and shipping .

• Quality is in-built into the product at every stage from conceiving –specification & design stages to prototyping –testing and manufacturing stages.

• TQM philosophy and guiding principles continuously improve the Organization processes and result in customer satisfaction.

Quality

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Defining Quality

• Quality is defined as the degree to which a set of inherent characteristics fulfill requirements.----ISO.

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Dimensions of QualityPerformance - Primary Characteristics, such as Clarity

Features - Secondary Characteristics, Remote Control

Conformance - Meeting Specifications or Standards

Reliability - Consistency of Performance over time - Fail

Durability - Useful life, include Repair.

Service - Resolution of problem; Ease of problem

Response – Human Relations with Customers

Aesthetics - Appearance; Sensory Features

Reputation – Past Performance; (Company) Image

The 9 Dimensions of Quality Contd.

• Performance

• Features

• Conformance_________________________

• Reliability

• Durability

• Service________________________

• Response- of Dealer/ Mfgr. to Customer

• Aesthetics

• Reputation - of Mfgr./Dealer

Cost

Performance

FeaturesService

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Evolution

1900 1920 1940 1960 1980 1990 2000

Craftsman

Foreman

Inspection

SQC

TQC

TQM

TQC &CWQC

Years

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Evolution of Quality –Means & Focus

1975 1980 1985 1990 1995 2000

Operation Customers Innovations

Quality ofWork life

QualityCircle

Productivity

EmployeeInvolvement

Quality

EmployeesEmpowerment

Total Quality

Self Directed

Teams

TQC/TQM

Self Managed Teams

TQM

Session 3The Gurus of Quality TQM tenets overview

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The Gurus of Quality Management

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Quality Gurus• Dr. Walter A. Shewhart (Father of Quality, 1920-40s)

• Dr. Dodge (Acceptance Sampling, 1920-40s)

• Dr. Romig (Acceptance Sampling, 1920-40s)

• Dr. W. Edwards Deming (14-points, 1945-1980s)

• Dr. Joseph M. Juran (TQM, post WWII – 1980s)

• Dr. Philip Crosby (Quality is Free, 1980s)

• Dr. Kaoru Ishikawa (Fishbone Diagram, Post WWII - 1980s)

• Dr. Genichi Taguchi (QFD, Quality Engineering)

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Quality Gurus: Walter Shewhart

Walter Shewhart

In 1924, Walter A. Shewhart of Bell Telephone Labs.

Developed a statistical chart for the control of product variables – the beginning of SQC (Statistical Quality Control) and SPC (Statistical Process Control) .

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In 1954,Joseph M. Juran taught Japanese managers their responsibility to achieve quality .

In 1960, the first quality control circles were formed. SQC techniques were being applied by Japanese workers.

1970’s US managers were learning from Japan “The Quality Implementation Miracles”.

In 1980’s TQM principles and methods became popular.(also in auto industry)

In 1990’s, the ISO 9000 model became the world-wide standard for QMS.

Joseph M. Juran

Quality Gurus: Joseph Juran

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Developed concept of Total Quality Control (TQC)

Responsibility for quality must rest with the persons who do the work – precursor to new concept quality at the source

Armand V. Feigenbaum

Quality Gurus: A. V. Feigenbaum

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Wrote Quality Is Free in 1979. Introduced the following concepts:

“Company Should Have The Goal of Zero Defects”

Cost of Poor Quality is Greatly Underestimated

Traditional Trade-off Between Costs of Improving Quality and Costs of Poor Quality is Erroneous

Philip Crosby

Quality Gurus: Philip Crossby

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In 1972 wrote Guide to Quality Control

Credited with the concept of Quality Circles

Suggested the use of Fishbone Diagrams

Kauru Ishikawa

Quality Gurus: Kauru Ishikawa

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Contends “That Constant Adjustment of Processes to Achieve Product Quality is Not Effective”

Instead suggested, Products Should be Designed to be Robust Enough to Handle Process and Field Variation

Genichi Taguchi

Quality Gurus: Genichi Taguchi

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Quality Gurus: W. Edwards Deming

• After World War II taught Japanese managers How To Improve Productivity and Quality

• In 1951. Japan established Deming Prize (Highest Honour in Japan)

• US was slow in recognizing his contributions

• Introduced Japanese companies the Plan-Do-Check-Act (PDCA) Cycle (developed initially by Shewhart and subsequently modified by Deming) )

• Developed 14 Points for managers

W. Edwards Deming

Class task-1- Knowing the Gurus• Objective: To acquaint each student with the career and contribution of the

Gurus of Quality• The Task: Each student will gather material regarding the Gurus, his career

and his contribution to quality and prepare a report in word document. The assigned Gurus are provided below

• 1 to 10- Taguchi • 11 to 20- Joseph Juran• 21 to 30- Phil Crosby• 31 to 40- Fiegenbaum• 41 to 50- Deming• 51 to 60- IshikawaBesides the assigned Gurus, each student will select a second Guru of his choice

whose work will also be similarly commented in the report.Format: The report will carry a title page containing a description of the class

task, the name of the Gurus covered, the name and roll number of the student

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Quality Movement and Evolution

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Quality Movements• Japanese were badly defeated in World War II. Their industrial and

financial bases were in chaos. • Japan had no natural resource and limited source of food for their

people. • The quality movement began in Japan in 1946 with the U.S.

Occupation Force's mission to revive and restructure Japan's communications equipment industry.

• Dr. Deming was invited by the Union of Japanese Scientists and Engineers to Japan in 1947.

• In 1954, Dr. Joseph Juran of the United States raised the level of quality management from the factory to the total organization in Japan.

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Results from Japan’s implementation from American quality

experts led to an industrial revolution that eventually left the

American industry lagging behind. It was during the late 1980s that American industry began to

finally look to their quality experts for methods to improve

quality. In the late 1980s, an NBC Documentary called If Japan Can, Why

Can’t We brought national attention to the needs for quality

improvements for global competition.

Quality Movements

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Quality Control - QC QC is detection of defects and have them corrected

so that defect-free products will be produced. QC is limited to products . QC is testing the final product against predefined

product quality standards. QC is operational techniques that are used to fulfill

requirements for product quality.

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Quality Control- A Saying

• “Quality control is the process of measuring actual quality, comparing this to some

standard, and then acting on the discrepancy” Juran

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Quality Assurance - QA QA is oriented toward preventing defects. QA is more concerned with the processes that produce

the final product, and making sure that quality is part of each stage.

QA is about maturing the process towards minimum defect.

QA about balancing methodology, leadership, and technology.

QA about taking into account human factors as well as technological ones.

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About the tenets ofTotal Quality Management

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Total Quality Management - TQM

• Total – Made up of the whole(or) Complete. i.e. whole organization

• Quality – Degree of Excellence a product or service provides to the customer in present and future.

• Management – Act , art, or manner of handling , controlling, directing, etc.

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TQM –a definition

• TQM is the art of managing the whole to achieve excellence.

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TQMTotal Quality Management (TQM) is a management strategy aimed at embedding awareness of quality in all organizational processes.

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TQM revolves around customer driven management. Its major emphasis is on determining customer need or

expectation from the product. Total Quality is the culture of the organization. It is attitude of people how they perform their assigned work with

aims to provide, customers with products and services that satisfy their needs.

The culture change means all members of the organization participate in the improvement of process, products, and services.

TQM Philosophy

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Old vs. TQM Approach Quality Element Previous Approach TQM Approach

Definition Product-oriented Customer-oriented

Priorities 2nd to service and costEquals of service and cost

Decisions Short-term Long-term

Emphasis Detection Prevention

Errors Operations System

Responsibility Quality control Everyone

Problem Solving Managers Teams

Procurement Price Life-cycle costs,partnership

Manager’s Role Plan, assign, control, and enforce

Delegate, coach, facilitate and mentor

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TQM Philosophy

“Do the right things, right,

the first time, and every time”

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Pillars of TQM

1- Customer Focus: Studying customer needs, gathering customer requirements, and measuring and managing customer satisfaction. Customer satisfaction is seen as the company's highest priority. The company believes that it will only be successful if its customers are satisfied.

2- Process Management: Develop a production process that reduce the product variations. Applying the same process; the same product should be produces with the same level of quality every time. Teams are process-oriented, and interact with their internal customers to deliver the required results. Management's focus is on controlling the overall process, and rewarding teamwork.

Total Quality Management

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3- Human side of Quality: TQM environment requires a committed and well-trained work force that participates fully in quality improvement activities. On-going education and training of all employees supports the drive for quality.

4- Continuous Improvement: TQM recognizes that product quality is the result of process quality. As a result, there is a focus on continuous improvement of the company's processes. This will lead to an improvement in process quality. In turn this will lead to an improvement in product quality. Measurement and analysis id the tool that has been used for that.

Pillars of TQM

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Continuous Improvement (through measurement and analysis)

Customer Focus

ProcessManagement

Employee Training & Empowerment

T. Q. M.

• Reduce Rework Activities (Cost Reduction) • Shorter Development Cycle (Cost Reduction) • Increased Customer Satisfaction (Quality Improvement)

Pillars of TQM

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Customer Satisfaction Organizational Diagram

• CUSTOMERS

Front-line Staff

Functional Department

Staff

CEO

Sr.Mgrs

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Other Elements of TQM

Leadership Vision and Mission Statement

Employee Participation Recognition and Reward Education and Training

Supplier Quality Management Performance Evaluation

Product Design

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TEN COMMANDMENTS Elements of TQM

1. Top Management Commitment & Involvement (Leadership)

2. Customer Involvement (Customer Satisfaction)

3. Design Products For Quality (Product Design)

4. Design Processes For Quality (Process Design)

5. Control Processes For Quality (Process Design)

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6. Developing Supplier Partnerships (Supplier Partnership)

7. Customer Service, Distribution, Installation, etc. (Customer Satisfaction)

8. Building Teams of Empowered Employees (Employee Involvement)

9. Benchmarking (Performance Evaluation)

10.Continuous Improvement (Kaizen)

TEN COMMANDMENTS Elements of TQM

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Six Basic Concepts of TQM

1. Management commitment to TQM principles and methods & long-term Quality plans for the Organization

2. Focus on Customers – Internal & External3. Quality at All Levels of the Work Force.4. Continuous improvement of the business

process.5. Treating Suppliers As Partners6. Establish Performance Measures For The

Processes.

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Top ManagementCommitment & Involvement

• Support MUST be GENUINE or TQM will be seen as just another passing fad

• FUNDAMENTAL CHANGES must occur in the CULTURE of ORGANIZATION

• Such fundamental changes are NOT EASY, BUT ARE IMPOSSIBLE without Top Management’s Commitment & Involvement

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Benefits of Quality• Higher Internal & External Customer Satisfaction• Reliable Products/Services• Better Efficiency of Operations• More Productivity & Profit• Better Morale of Work Force• Less Wastage Costs• Less Inspection Costs• Improved Process• More Market Share• Spread of Happiness & Prosperity• Better Quality of Life For All.• Improved Quality • Employee Participation • Team Work

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Obstacles In Implementing TQM

•Top Management Commitment

•Changing Organization Culture

•Organization Structure & Departments

•Continuous Training & Education

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•Improper Planning

•Internal & External Customers-Dissatisfaction

•Empowerment & Teamwork

•Continuous Improvement

Obstacles In Implementing TQM

PROJECT Task -2 Obstacles in TQM implementations

• Groups and Tasks • Roll Nos---Task No• 1 to 10- 1• 11 to 20- 2• 21 to 30- 3• 31 to 40- 4 • 41 to 50- 5• 51 to 60- 6

Task Nos 1. A commercial Bank 2. A Municipal Hospital 3. A Local Tourism company 4. B-school 5. A Cooperative Store 6. A Trading organization

Activity:Students will undertake a study of some of the prevalent practices and beliefs that drive the operations and also create obstacles for TQM implementation in the allotted organizations . Identify the obstacles and provide reasons for considering them as obstacles. The students will make a report of their work class . The report will mention Task No, Task description, Roll No and Name on the cover page of the Report.