Total Quality Management - 8.

Course SM 2.62: Total Quality Management Japanese way

Session 8: TQM:

the Jajpanese Way

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Learning Objectives: After completing this session, you should be able to discuss the basic concepts and some applications of TQM which are practised in Japan

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TQC movement in Japan Ishikawa has listed six features characterizing the TQC movement in Japan: Company-wide Total Quality Control (TQC) with all employees participating Emphasis on education and training QC-circle activities TQC audits Application of statistical methods Nationwide TQC promotion

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Management by facts emphasize the use of data rotate the PDCA cycle based on facts rather than relying on experience and intuition make the facts available to all concerned.

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Quality first Seeking improvement for improvements sake is the surest way to strengthen a companys overall competitiveness. Take care of the quality, the profits will take care of themselves The only thing an enterprise can offer customers is quality. All other indices relate to internal management

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Manage the upstream process Encourages people to go back to the upstream process on the production line to seek out a problems cause. Problem solvers should ask why five times to identify the root cause. TQC should be extended to include vendors, suppliers, and sub-contractors to improve the quality of supplies and materials

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The next process is the customer This realization has in turn led to the formal commitment: never to send defective items to those in the following process The concept of quality assurance rests on the premise that assuring quality to each customer at each stage will assure quality in the finished product

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Customer-oriented (market-in) All TQC related activities are conducted with the customers needs in mind Build a system for designing, developing, producing, and servicing products with the ultimate aim of satisfying customers. Defining the customer is a top management priority

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Training TQC starts with training and ends with training The introduction of TQC in Japan starts with allout efforts for training managers and workers. A natural follow-up to the concept of building quality into people

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Cross-functional management Issues such as: customer satisfaction, cost control, delivery control, and new product development call for cross-functional efforts cutting horizontally across the whole organization.

These issues are often called: quality function (Q), cost function (C) and scheduling : quantity-delivery (S)

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Cross-functional management

Cross functional goals shall be determined by top management or the cross-functional committee prior to the determination of departmental goals. The introduction of cross functional goals helps managers maintain a proper balance in their work, with the ultimate goal of QCS in mind Break the departmental barriers, improve communication More efficient and effective processing and feedback of information among different organizational strata.

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Follow the PDCA Cycle New standard are set only to be challenged, revised and replaced by newer and better standards. Only after a standard has been established and stabilized should one move on to the next phase of using PDCA cycle to raise the standard. SDCA is used for stabilizing and standardizing the conditions and PDCA for improving them.

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Follow the PDCA Cycle

Level
A S

A P
A S A P A S C D C D

Time

Revision of standards Review of job results

A C

S D

Enactment of standards Execution of standardize d job

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Use the QC story to pursuade

TQC practitioners have found that their suggestions and solutions are persuasive because they are based on a precise analysis of data and not on hunches QC story is a seven steps to process improvement in action QC stories are also effective tools for improving communication among the upper and lower organizational levels.

1 2

Define the Problem

Study the present system

3
4 5 6 7

Analyze the potential causes

Plan and implement a solution

Evaluate the results

Standardize the improvement

Reflect on process and develop future plans

Process Improvement Model

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Standards

The standard should be binding on everyone Managements job is to see that everyone works accordance with the established standards. This is called discipline One-point standardization: when a company members work is such that most of it does not have to be standardized, one of his many operations is all that needs to be standardized

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Quality Circles

The basic philosophy of QC circle activities is: To exercise peoples capabilities and draw out their unlimited potential To create cheerful workplaces that make life worthwhile and where humanity is respected To contribute to the improvement and development of the corporate constitution

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Daily management

Daily management is introduced so that TQM will not be isolated from daily work activities Most work consists of smoothly continuing the activities that exist. Maintaining the status quo by thoroughly doing these jobs is extremely important, especially to the line organization.

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Daily management

The activities that maintain the status quo are basically those that adhere to standard. When an abnormal condition that prevents the continuation and maintenance of the status quo occurs, it is necessary to identify its causes and to take actions that improve or prevent it from recurring.

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Daily management

The key to success in daily management include: Identify control items Establish control levels Standardize process (clarify and document job procedures, management system chart) Detect and take actions on abnormalities Conduct problem-solving activities

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Policy management

Policy management aims primarily to achieve objectives by breaking through the status quo. Policy management deploys not only objectives but also measures By deploying measures policy management clarifies the process involved in achieving objectives, reviews each years implementation status, and incorporates the information gathered into the next years process.

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Policy management

Policy management strongly demonstrates the concept of process-oriented management in TQM To promote policy management it is necessary to rotate the PDCA cycle on the top managements policies by establishing policies, deploying policies, implementing policies and evaluating the results of implementation, and carrying the evaluation results forward to the following year.

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Policy management

To establish mid and long-term business plans, it is important to understand available management resources, forecast changes in the business environment, and to apply management strategies to adapt to changes. To establish short-term (usually, annual) business policies it is necessary to build on the foundation of the mid and long-term plans, conduct gap analysis on the performance of the preceding period, clarify the causes of the gaps and to incorporate actions to be taken.

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Policy management

Once top managements annual plans have been determined they are deployed throughout the lower level of management. Because the resources are limited, it is essential that priorities are assigned at each level so that clear list of measures and action plans can be deployed at the lower level of management.

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Policy management
Top Management:: Division Management:: Middle Management:: Policy (End) Measures (Means) Policy (End) Measures (Means) Policy (End) Measures (Means)

Lower Management::

Policy (End)

Measures (Means)

Policy Deployment

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Management Audits (Diagnosis)

The audits are conducted to check whether the policies deployed between different level of management have been properly executed. to identify what is wrong, not who is wrong. It helps people to recognize the shortcoming in their efforts.

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Management Audits (Diagnosis)

The president of a company that has introduced TQC conducts audit once or twice a year at all major divisions of the company. The president points out deviations and only provides hints for actions. The division under review then study the causes and prepare concise material that describe the priority activities to be taken.

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Concluding Remarks

Many Japanese practices succeed simply because they are good management practices. This success has little to do with cultural factors. And the lack of cultural bias means that these practice can be - and are- just as successfully employed elsewhere. What we need is to recognize and admit that there will be no progress if we keep on doing things exactly the same way all the time.

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End of Session 8