Total Quality Management

Introduction
Total Made up of the whole(or) Complete. 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. TQM is the art of managing the whole to achieve excellence.

 "TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society."

What is a quality?
It depends on the role of people defining it. Most customers have difficulties in defining it but from seeing the product they can know it more. Common definitions for quality:
1. conformance to specifications: How well a product or service meets the targets and tolerances determined by its designers.

2- fitness for use: It evaluates how well the product performs for its intended use. 3- value for price paid: Quality defined in terms of product or service usefulness for the price paid. 4- support services: The support provided after the product is purchased. 5- psychological criteria: It focuses on judgmental evaluations of what constitutes product or service excellence.

Dimensions of Quality for Manufacturing Versus Service Organizations

Defining quality in manufacturing organizations is often different from that of services.
Manufacturing: Conformance to specification Performance Reliability Features Durability Service: Tangible factors Consistency Responsibility to customer needs Timeliness/promptness Atmosphere

Evolution of Quality Era

In the early 20th century, quality management meant inspecting products to ensure that they met specifications. In 1940s, during 2nd World War quality became more statistical in nature. In 1960s, the concept took a broader meaning so the quality was seen as a concept that affected the entire organization.

In 1970s and 1980s: quality began to have a strategic meaning Companies understood that quality provides a competitive advantage competition based on quality has grown in importance Customer were put first and quality was defined as meeting or exceeding customer expectations

Timeline showing the differences between old and new concepts of quality
TIME focus Early 1900s inspection 1940s Statistical sampling Old concept of quality : Inspect for quality after production 1960s Organizational quality focus 1980s and beyond Customer driven quality New concept of quality.: Build quality into the process. identify and correct causes of quality problems

Demings fourteen points for TQM

Create constancy of purpose. Adopt the new philosophy. Cease dependence on inspection to achieve quality. End the practice of awarding business on the basis of price tag alone. Improve constantly and forever every process.

Institute modern training (for everybody!).

Institute modern methods of supervision.

Demings fourteen points for TQM (Contd..)

Encourage employees to speak up.

Break down barriers between departments.

Eliminate slogans, exhortations, and targets for the work force. Eliminate work standards that prescribe numerical quotas. Remove barriers to pride in workmanship. Institute a vigorous program of education and self-improvement for everyone. Place everybody in the company to work to accomplish the transformation and create a structure in top management that will push every day on the above points.

Characteristics of Successful TQM Companies

The characteristics that are common to companies that successfully implement TQM in their daily operations are as follows:

Strive for owner/customer satisfaction and employee satisfaction Strive for accident-free jobsites Recognize the need for measurement and fact-based decision making Arrange for employees to become involved in helping the company improve Train extensively Work hard at improving communication inside and outside the company Use teams of employees to improve processes Place a strong emphasis on the right kind of leadership. Involve subcontractors and suppliers in continuous improvement. Strive for continuous improvement

Example: Walt Disney CO.

The importance of exceptional quality is demonstrated by The Walt Disney Company in operating its theme parks. The focus of the parks is customer satisfaction. This is accomplished through precise attention to every detail, with particular focus on the role of employees in service delivery. Employees are viewed as the most important organizational resource, and great care is taken in employee hiring and training.

GE and Motorola
World-class organizations such as General Electric and Motorola attribute their success to having one of the best quality management programs in the world. These companies were some of the first to implement a quality program called, Six-Sigma, where the level of defects is reduced to approximately 3.4 parts per million In fact, Motorola was one of the first companies to win the prestigious Malcolm Baldrige National Quality Award in 1988, due to its high focus on quality.

 Both GE and Motorola have had a primary goal to achieve total customer satisfaction. To this end, the efforts of these organizations have included eliminating almost all defects from products, processes, and transactions. This resulted in significant increases in sales and market share, as well as cost savings in the range of millions of dollars.

Cost of quality
Quality affects all aspect of the organization and has dramatic cost implications. The most obvious consequence occurs when poor quality creates dissatisfied customers and eventually leads to loss of business. It is divided into two categories: 1- quality control costs 2- quality failure cost The first category consists of costs necessary for achieving high quality. These are of two types: prevention costs and appraisal costs. The second category consists of the cost consequences of poor quality. These include external failure costs and internal failure costs

Prevention cost

Cost of preparing and implementing a quality plan

Appraisal cost

Costs of testing, evaluating and inspecting quality

Internal failure cost

Costs of scrap, rework and material loses

External failure cost

Costs of failure or customer returns, sites, including repairs and recalls.

 Companies that consider quality important invest heavily in prevention and appraisal costs in order to prevent internal and external failure costs. Detecting and correcting defects during product design and product production is less expensive than when defects are found at the customer site.

Uses of Quality Tools

TQM places a great deal of responsibility on all workers. If employees are to identify and correct quality problems, they need proper training. They need to understand how to assess quality by using a variety of quality control tools, how to interpret findings, and how to correct problems

Cause-and-effect diagram
A chart that identifies potential causes of particular quality problems.

Flowchart
A schematic of the sequence of steps involved in an operation or process. By seeing the steps involved in an operation or process, everyone develops a clear picture of how the operation works and where problems could arise

Checklist
A list of common defects and the number of observed occurrences of these defects

TQM Transforming an Organization

From Motivation through fear and loyalty Attitude: Its their problem To Motivation through shared vision Ownership of every problem affecting the customer Continuous improvement

Attitude: the way weve always done it Decisions based on assumptions/ judgment calls Everything begins and ends with management Crisis management and recovery

Decisions based on data and facts

Everything begins and ends with customers Doing it right the first time

What is Six Sigma?

A goal of near perfection in meeting customer requirements A sweeping culture change effort to position a company for greater customer satisfaction, profitability and competitiveness A comprehensive and flexible system for achieving, sustaining and maximizing business success; uniquely driven by close understanding of customer needs, disciplined use of facts, data, and statistical analysis, and diligent attention to managing, improving and reinventing business processes

Six Sigma Improvement Methods

DMAIC vs. DMADV
Define
Measure Analyze
Continuous Improvement Reengineering

Improve Control

Design Validate

Six Sigma DMAIC Process

Control Improve Define Analyze Measure Define: Define who your customers are, and what their requirements are for your products and services Their expectations. Define your team goals, project boundaries, what you will focus on and what you wont. Define the process you are striving to improve by mapping the process.

Six Sigma DMAIC Process

Control Improve Define Analyze Measure Measure: Eliminate guesswork and assumptions about what customers need and expect and how well processes are working. Collect data from many sources to determine speed in responding to customer requests, defect types and how frequently they occur, client feedback on how processes fit their needs, how clients rate us over time, etc. The data collection may suggest Charter revision.

Six Sigma DMAIC Process

Control Improve Define Analyze Measure Analyze: Grounded in the context of the customer and competitive environment, analyze is used to organize data and look for process problems and opportunities. This step helps to identify gaps between current and goal performance, prioritize opportunities to improve, identify sources of variation and root causes of problems in the process.

Six Sigma DMAIC Process

Control Improve Define Analyze Measure Improve: Generate both obvious and creative solutions to fix and prevent problems. Finding creative solutions by correcting root causes requires innovation, technology and discipline.

Six Sigma DMAIC Process

Control Improve Define Analyze Measure Control: Insure that the process improvements, once implemented, will hold the gains rather than revert to the same problems again. Various control tools such as statistical process control can be used. Other tools such as procedure documentation helps institutionalize the improvement.

Six Sigma DMADV Process

Validate Design Define Analyze Measure Design: Develop detailed design for new process. Determine and evaluate enabling elements. Create control and testing plan for new design. Use tools such as simulation, benchmarking, DOE, Quality Function Deployment (QFD), FMECA analysis, and cost/benefit analysis.

Six Sigma DMADV Process

Validate Design Define Analyze Measure

Validate: Test detailed design with a pilot implementation. If successful, develop and execute a full-scale implementation. Tools in this step include: planning tools, flowcharts/other process management techniques, and work documentation.

Conclusion
Implementing total quality management requires broad and sweeping changes throughout a company. It also affects all other decisions within operations management. The decision to implement total quality management concepts throughout the company is strategic in nature. As you can see, virtually every aspect of the operations function must change to support the commitment toward total quality management.