Sustainable development of total quality management through Demings PDSA cycle

SUSTAINABLE DEVELOPMENT OF TOTAL QUALITY MANAGEMENT THROUGH DEMINGS PDSA CYCLE

Author: Dr. G. Karuppusami
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Abbreviations
TQM CSF QAP Total Quality Management Critical Success Factor Quality-related Action Program

PDSA Plan-Do-Study-Act TQMII Total Quality Management Implementation Index

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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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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 customers expectations which reflects a shift in focus to customer satisfaction.
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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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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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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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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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Criteria for the study

Quality is one of the twentieth centurys most important management ideas (Feigenbaum, 1999) You cant manage what you dont measure (Wert, 2003)
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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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CSFs reported by Saraph et al., (1989)

1. 2. 3. 4. 5. 6. 7. 8. The role of management leadership and quality policy Role of quality department Training Product / service design Supplier quality management Process management Quality data and reporting Employee relations

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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. 2. 3. 4. 5. 6. 7. 8. Top management responsibility for quality performance Performance evaluation based on quality Acceptance of responsibility for quality by major dept heads Degree of participation by dept heads in quality improvement process Consideration of quality as first priority Discussion of quality related issues in meetings Extent to which quality goals and policies are understood Degree of comprehensiveness of quality plan

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CSFs and QAPs of TQM

TQM

CSF 1

CSF 2

CSF n

QAP 1

QAP 2

QAP 3

QAP i

QAP 1

QAP 2

QAP 3

QAP i

QAP 1

QAP 2

QAP 3

QAP i

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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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Sustainable development of total quality management through Demings PDSA cycle

PDSA Cycle for sustainable development of TQM

Step 1: Plan for TQM ACT PLAN

Step 4: Take necessary actions to improve the less developed programs of TQM

Step 2: Implement TQM

DO STUDY Step 3: Study and measure the level of TQM implementation

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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 companys 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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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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TQM Implementation space

TQMIIimk

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Notations
i Dm m Zm Wm = = = = = Index of QAPs Departments Index of departments Ideal weight factor assigned department Revised normalized weight of department Actual performance of quality-related action programme i in department m

Vim =

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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.

TQMII

V
i 1 m 1 mM m 1

iI

mM

im

Wm

10 I

Zm

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

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Presentation of a Case Study to illustrate TQMII

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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 selected

1. Role of top management and quality policy 2. Supplier quality management 3. Customer focus 4. Process management 5. Product / service design 6. Quality data and reporting 7. Training 8. Employee relations 9. Role of quality department 10. Benchmarking 11. Information technology analysis 12. Lean manufacturing 13. Continuous improvement
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TQMII Calculation Step 1 (Table 1)

1. Compute each departments normalized quality consciousness weight

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

W1= 10(0.52 + 14 + 2.56 + 38 + 310) = 7.4 1010
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TQMII Calculation Step 2 (Table 1)

2. Compute each departments quality consciousness state efficiency.
The calculation for the first the department D1 is as follows; QCSE1= (0.52 + 14 + 2.56 + 38 + 310) = 0.74 1010
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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

TQMII

V
i 1 m 1 mM m 1

iI

mM

im

Wm

10 Zm

TQMII of QAP 1 is as follows

= (97.4 + 106 + 75.81 + 105.46 + 107.92 + 107.7 + 85.22 + 94.74 + 56.86) 10(10 + 10 + 7 + 7 + 9 + 10 + 9 + 6 + 7) = 0.65

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TQMII Calculation Step 4 (Table 2)

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

TQMII

V
i 1 m 1 mM m 1

iI

mM

im

Wm

10 I

Zm

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

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Table 1 Department consciousness matrix

State of quality consciousness Crisis Management Quality consciousness state efficiency for Department m, QCSEm Normalized Quality Consciousness weight, Wm Sustenance Emergence Awareness Maturity Dm

Department name

Weight

k=
Zm Product engineering Quality assurance
Production planning & control

1
2 0.5 2 0.5 0 0 1 1 0 0

2
4 1 2 0.5 1 0 1 1 1 0

3
6 2.5 2 1 1 2 1 6 2 0

4
8 3 2 3 6 2 2.5 2 3.5 1

5
10 3 2 5 2 6 4.5 0 3.5 9 7.40 6.00 5.81 5.46 7.92 7.70 5.22 4.74 6.86 0.74 0.60 0.83 0.78 0.88 0.77 0.58 0.79 0.98

yk = X11 =

D1 D2 D3 D4 D5 D6 D7 D8 D9

10.00 10.00 7.00 7.00 9.00 10.00 9.00 6.00 7.00

Application Engineering Manufacturing Engineering Production department Materials department Information Technology
Sales & Marketing department

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Table 2. TQMII Calculation

CSFs, QAPs and weights QAPs weight (Ui) QAPs Index (i) 1 2 3 4 5 6 7 Index Performance weights of departments on each QAPs D1 m= wm = Zm = V1m = 1 7.40 10.00 9 7 6 7 8 8 7 D2 2 6.00 10.00 10 6 8 9 8 10 8 D3 3 5.81 7.00 7 6 7 6 7 5 6 D4 4 5.46 7.00 10 10 6 10 10 9 9 D5 5 7.92 9.00 10 8 10 10 10 10 10

CSF

QAPs

Top management responsibility for quality performance Performance evaluation based on quality Acceptance of responsibility for quality by major dept heads Degree of participation by dept heads in quality improvement process Consideration of quality as first priority Discussion of quality related issues in meetings Extent to which quality goals and policies are understood

8.86 9.05 8.95 8.95 9.33 8.81 8.81

Role of Top Management and Quality Policy

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Table 2. TQMII Calculation contd

TQMII of QAP I given state of quality D6 QAPs weight (Ui) m= wm = 6 7.70 10.0 QAPs Index (i) D7 7 5.22 9.00 D8 8 4.74 6.00 D9 9 6.86 7.00 TQMII of CSFi given state of quality CSF QAPs

Zm =

1
2 3 4 5 6 7 8

Top management responsibility for quality performance Performance evaluation based on quality Acceptance of responsibility for quality by major dept heads Degree of participation by dept heads in quality improvement process Consideration of quality as first priority Discussion of quality related issues in meetings Extent to which quality goals and policies are understood Degree of comprehensiveness of quality plan

8.86
9.05 8.95 8.95 9.33 8.81 8.81 8.67

V1m =

10
7 9 7 9 7 6 7

8
7 6 6 8 10 8 10

9
7 7 6 7 5 6 5

5
7 6 7 8 7 8 8

0.65
0.55 0.56 0.58 0.63 0.60 0.57 0.60 0.59

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Role of Top Management and Quality Policy

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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 departments regarding TQMII. and data among

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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References
1 2 3 4 5 Crosby, P.B., (1979), Quality Is Free, New American Library, New York, NY 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. Feigenbaum, A.V. (1951), Quality control: Principles, Practice, and Administration (New-York: McGraw-Hill). 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. 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 Juran, J.M., Gryna, F.M., Jr. and Bingham, R.S. (1974), Quality Control handbook, 4th edition, McGraw-hill, New York 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. Levitt, T. (1972), Production line approach to service, Harvard Business Review, Vol. 50, pp. 41-52 Quinn, B. (2000), Sustaining New Jerseys industrial future, Pollution Engineering, Vol. 32 No.13, pp. 25-27.

6 7

8 9

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References contd
10 11 12 13 14 15 Reeves, C.A. and Bednar, D.A. (1994), Defining quality: alternatives and implications, Academy of Management Review, Vol. 19, pp. 419-441. Saraph, 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. Taguchi, G., (1981), On-line quality control during production, Japanese standards association Wilkinson, A. (1998), Empowerment, International Encyclopaedia of Human Resource Management, pp. 507-17 Yong, 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. Zairi, M. (2002), Beyond TQM implementation: the new paradigm of TQM sustainability, Total Quality management, Vol. 13 No. 8, pp. 11611172. Zairi, M. and Liburd, L.M. (2001), TQM sustainability- a roadmap for creating competitive advantage, Integrated management, Proceedings of the 6th 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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Thanks

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