TOTAL QUALITY MANAGEMENT

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CHAPTER 1
INTRODUCTION TO TOTAL QUALITY MANAGEMENT

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ONE MUST STRIVE FOREVER EXCELLENCE OR EVEN PERFECTION IN ANY TASK, HOWEVER SMALL, AND NEVER BE SATISFIED WITH THE SECOND BEST
- J R D TATA
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WHAT IS QUALITY?
Fitness for use - Joseph Juran Quality is customer determination Armand Feigenbaum Conformance to specifications - Crosby Excellence in goods and services, especially to the degree they conform to requirements and satisfy customers American Society for Quality
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WHAT IS QUALITY?
The totality of characteristics of an entity that bear on its ability to satisfy the stated and implied needs - ISO That which causes minimum loss to the society - Taguchi Capacity to satisfy wants Corwin D Edwards
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WHAT IS QUALITY?
The essential and distinguishing trait why product X may not be replaced by product Y Achieving excellence in a product / service by meeting / exceeding the requirements of the customer
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WHAT IS QUALITY?
A refined process in which products are assessed, improved, ensured, and confirmed Reduction of variation around the Mean

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DIMENSIONS OF QUALITY
PRODUCT

Tangible

Intangible

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DIMENSIONS OF QUALITY of a Tangible Product

Performance Reliability and consistency Conformance to specifications Durability Serviceability Features Aesthetics Perceived Quality
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DIMENSIONS OF QUALITY of an Intangible Product

Time to serve Timeliness of the service Completeness of the service Consistency Courtesy Responsiveness Accuracy first time right Convenience easy to obtain
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Performance Quality = ----------------Expectations

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Quality Control

a process to ensure whether a product meets predefined standards and requisite action taken if the standards are not met

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Quality Assurance

A planned and systematic pattern of all actions necessary to provide adequate confidence that the product optimally fulfills customer expectations

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What is Total Quality Management?

TOTAL QUALITY : made up of the whole : degree of excellence a product or service provides MANAGEMENT : act, art or manner of handling, controlling, directing, etc.
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What is Total Quality Management?

a philosophy and methodology for managing organizations a set of principles, tools, and procedures that provide guidance in the affairs of running an organization involves all members of the organization in controlling and continuously improving the work in the organization
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Definition of TQM
The process of integration of all activities, functions, and processes within an organization in order to achieve continuous improvement in cost, quality, function, and delivery of goods and services for customer satisfaction

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Basic concepts of TQM

A committed and involved management to provide long-term top-to-bottom organizational support An unwavering focus on the customer both internally and externally Effective involvement and utilization of the entire work force
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Basic concepts of TQM

Continuous improvement of the business and production process Treating suppliers as partners Establish performance measures for the processes

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Committed Management
Participate in the quality program Establish a quality council Develop a clear vision, set long term goals, and direct the program Establish an annual quality improvement with inputs from all the work force

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Customer Focus
Satisfy the internal customer Listen to the voice of the customer Emphasize design quality and defect prevention Do it right for the first time and every time

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Involvement of the work force

TQM is everyones responsibility Ensure the participation of all by training them in TQM, SPC (statistical process control) and other quality improvement skills Include internal customers and internal suppliers on project teams
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Involvement of the work force

Involve them in the development and implementation of the quality plans People must come to work not only to do their jobs, but also think about how to improve their jobs Empower people at the lowest possible level to perform processes in an optimum manner
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Continuous Improvement
Focus on quality improvement in areas such as on-time delivery, order entry efficiency, billing error rate, customer satisfaction, cycle time, scrap reduction etc.
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Continuous Improvement
Techniques such as statistical process control, benchmarking, quality function deployment, ISO 9000, design of experiments are excellent for problem solving
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Suppliers as partners
on an average 40% of the sales is purchased product or service so supplier quality must be outstanding develop partnering relationship focus on quality and life-cycle costs rather than price limit the suppliers to ensure true and lasting partnership
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Performance measures
apply performance measures for each functional area
uptime, percent nonconforming, absenteeism, and customer satisfaction

communicate these measures to all

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Elements of TQM
Commitment Customer focus Competency Communication Continuous improvement Concern for society

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Principles of TQM
Customer focused approach winning customer satisfaction Strategic planning and leadership Restructuring of vertical processes to cross functional horizontal processes a new approach to change the work culture to team work

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Principles of TQM
Creating a working culture through internal customer system, where each stage in the process, and each person in the process can be linked as customers Continuous improvement of all processes and activities, leading to total customer satisfaction and competitive advantage

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Principles of TQM
Training and development of people Empowerment and team work of the people - an opportunity to learn, apply, and practice their skills, creativity, and knowledge Team approach to work and crossfunctional process management is an important aspect of TQM work culture
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Gurus of TQM
Walter A. Shewhart developed control chart theory W. Edwards Deming 14 point theory Joseph M. Juran The Juran Trilogy Armand V. Feigenbaum Total quality control Kaoru Ishikawa developed cause and effect diagram
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Gurus of TQM
Philips B. Crosby known for his four absolutes of quality management. Also said doing it right the first time is less expensive than the cost of detecting and correcting nonconformities Genichi Taguchi developed loss function concept that combines cost, target, and variation into one metric
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Demings 14 points
Create and publish the Aims and Purposes of the organization Learn the New Philosophy Understand the Purpose of Inspection Stop Awarding Business Based on Price Alone Improve Constantly and Forever the System
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Demings 14 points
Institute Training Teach and Institute Leadership Drive Out Fear, Create Trust, and Create a Climate of Innovation Optimize the Efforts of Teams, Groups, and Staff Areas Eliminate Exhortations for the Work Force
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Demings 14 points
Eliminate Numerical Quotas for the Work Force Eliminate Management by Objective Remove Barriers that Rob People of Pride of Workmanship Encourage Education and Self-Improvement for Everyone Take Action to Accomplish the Transformation

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Joseph M. Jurans Quality Trilogy

Quality planning a process for presetting the quality goals, and preparations to meet these goals Quality control the process for ensuring that those goals are achieved in operation Quality improvement the process of breaking through to higher levels of quality and meeting the needs of customers for superior performance
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Jurans ten steps for Quality Improvement

Build awareness Set goals for improvement in all areas of work Organize to reach the goals Carryout improvement Provide training Recognize quality work
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Jurans ten steps for Quality Improvement

Report progress review and communication of progress towards the goal for improvement Communicate results Keep the score measure the improvements Maintain momentum
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Philips Crosbys Absolutes of Quality

Conformance to requirements System of prevention and not appraisal of quality Zero Defect as the ideal performance standard Price of non-conformance as a measure of quality
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Obstacles in implementing TQM

Lack of Management Commitment Inability to Change Organizational Culture Improper Planning Lack of Continuous Training and Education Incompatible Organizational Structure and Isolated Individuals and Departments Ineffective Measurement Techniques and Lack of Access to Data and Results
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Obstacles in implementing TQM

Paying Inadequate Attention to Internal and External Customers Inadequate Use of Empowerment and Teamwork Failure to Continually Improve

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Benefits of TQM - Direct

Greater customer loyalty and retention Improved market share and market standing Greater productivity and lower quality cost Higher potential for price realization and profitability Reduced warranty costs Better business results and stock prices
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Benefits of TQM - Indirect

A positive work culture and value system throughout the organization Revitalized people with high employee morale Transparent and flexible organization Social respect

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Features of a TQM organization

Strategically planned Vision, Mission, and Goals Leadership and Management to lead from the front Customer and Market focused business strategy Focus on development, involvement, and empowerment of people
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Features of a TQM organization

Innovative and creative process management with focus on customer satisfaction Culture of management by facts through data management and analysis Respect for society and environment

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Tools and Techniques for TQM (Tools for Quality Planning)

Quality Function Deployment Concurrent Engineering Failure Mode and Effect Analysis (FMEA) Seven Management and Planning Tools

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Tools and Techniques for TQM (Tools for Continuous Improvement)

Statistical tools 7 QC tools Cost of quality - measurement Kaizen, Poka-yoke system, Zero defect etc. Just-in-time manufacturing Benchmarking Re-engineering of business process Six-sigma practice

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