The TQM

Exploring The Total

Management
of Quality

1
 What Is Quality?

 “The degree of excellence of a thing”

(Webster’s Dictionary)
 “The totality of features and
characteristics that satisfy needs”
 ( ASQC)
 Fitness for use

2
 Dimensions Of Product
Quality
 1. Performance : basic operating
characteristics

 2. Features :“extra” items added to

basic features

 3. Reliability :probability product will

operate over time

3
Dimensions Of Product Quality
cont’d….

 4. Conformance : meeting pre-

established standards

 5. Durability : life span before

replacement

6. Serviceability : ease of getting

repairs, speed & competence of repairs

4
 With customer in
thought….
 1. Time & Timeliness :customer
waiting time, completed on time

 2. Completeness :customer gets all

they asked for

 3. Courtesy :treatment by employees

5
 With customer in
thought….
Cont’d ….
 4. Consistency : same level of service
for all customers

 5. Accessibility & Convenience :ease

of obtaining service

 6. Accuracy :performed right every

time

 7. Responsiveness : reactions to
unusual situations 6
 Quality Of Conformance
 Ensuring product or service produced
according to design depends on :
2. Design of production process
3. Performance of machinery
4. Materials
5. Training

7
 The Meaning of Quality
 Quality of Conformance
 Quality of Design
 Producer’s Perspective
 Consumer’s Perspective
 Fitness for Consumer Use
 Production
 Marketing

8
 The Meaning of Quality cont’d
…
 Conformance to specifications
 Cost
 Quality
 Characteristics
 Price

9
 Quality Philosophers
 Walter Shewhart
 W. Edwards Deming
 Joseph Juran
 Philip Crosby
 Armand Feigenbaum

10
 Deming’s 14 Points
 1. Create constancy of purpose
 2. Adopt philosophy of prevention
 3. Cease mass inspection
 4. Select a few suppliers based on
quality
 5. Constantly improve system and
workers
 6. Institute worker training in SPC

11
 7. Instill leadership among
supervisors
 8. Eliminate fear among
employees
 9. Eliminate barriers between
departments
 10. Eliminate slogans
 11. Remove numerical quotas
12
 13. Institute vigorous education
programs on quality improvement
 14. Implement these 13 points
(Just do it !)

13
 The P-D-C-A Cycle
 Plan
 Do
 Check
 Act

14
 The P-D-C-A Cycle
 Identify problem.
 Develop plan for improvement.
 Implement plan on test basis
 Is the plan working?
 Institutionalize
 improvement.
 Continue cycle.

15
Total Quality Management
 1. Customer defined quality

 2. Top management leadership

 3. Quality as a strategic issue

 4. All employees responsible for quality

16
 Total Quality Management
cont’d….
 5. Continuous improvement

 6. Shared problem solving

 7. Statistical quality control

 8. Training & education for all

employees

17
 TQM Throughout The
Organization
 Marketing, sales, R&D

 Engineering

 Purchasing

 Personnel
18
 Management

 Packing, storing, shipping

 Customer service

19
 Strategic Implications Of
TQM

 Quality is key to effective strategy

 Clear strategic goal, vision, mission
 High quality goals
 Operational plans & policies
 Feedback mechanism
 Strong leadership

20
TQM In Service Companies
 Inputs are similar to manufacturing
 Processes & outputs are different
 Services tend to be labour intensive
 Quality measurement is harder
 Timeliness is an important measure
 TQM principles definitely apply to
services!

21
 Cost Of Quality
 Cost of achieving good quality
 Prevention
 Appraisal

 Cost of poor quality

 Internal failure costs
 External failure costs

22
 Quality Indexes
 Labor index
 quality cost / labor hours

 Cost index
 quality cost / manufacturing cost

23
 Sales index
 quality cost / sales

 Production index
 quality cost / units produced

24
 Quality and the Bottom
Line
 Quality is an important
determinant of business
profitability
 Quality is positively & significantly
related to a higher return on
investment
 Productivity = output / input
 Fewer defects increases output
 Quality improvement reduces 25
 Seven TQM Principles
 Continuous improvement - the goal
 Commitment of key decision
makers
 Reduce variation
 Reduce complexity
 Solve problems at the root cause
 Problem solve at the local level
 Publicize results of problem solving
26
 Seven Components Of
TQM
 Customer-oriented service
 Process focus
 Empowered interdisciplinary
improvement teams
 Scientific/systematic problem solving
 Data-driven decision making
 Statistical process control
 Problem-solving tools and techniques
27
The Quality Circle Process

 Seven Quality Control Tools

 1. Pareto analysis
 2. Flowcharts
 3. Check sheets
 4. Histograms
 5. Scatter diagrams
 6. Control charts
 7. Fishbone diagram

28
 Seven TQM Tools
 Flow chart of process under study
 Fishbone- cause and effect
diagram
 Pareto diagram
 Histogram
 Scatter diagram
 Run chart
 Control chart
29
 Seven TQM Techniques
 Brainstorming
 Nominal Group Process/Multi
pivoting
 Process clarification
 Benchmarking
 Force field analysis
 Statistical process analysis
 Affinity analysis
30
 Seven Step TQM Problem
Solving
 Problem Identification
 Team Chartering
 Problem study and refinement
 Plan the solution(s)
 Implement the solution(s)
 Evaluate effects or results
 Publicize the results and celebrate

31
 Seven Characteristics of
TQM Structure
 Quality Council - Organizations top
leaders
 Training program for all levels
 Mechanisms for selecting improvement
opportunities
 Formation of process improvement
teams
 Scientific and statistical control
processes
 Staff support for process analysis and
redesign 32
 Seven Steps To TQM
Effectiveness

 Organization vision, mission, values

 Management visibly committed to TQM
 Resource support provided
 Oversight Committee directs TQM
 Project approval and monitoring
 Board, management, and employees
trained
 Successes celebrated 33
 Documented Reasons For
Failure
 Choosing unsolvable problems
 Inadequately defined problems or
processes
 Instability in environment
 Poor management support
 Lack of TQM training
 Team dynamics, cooperation,
participation
 Needed expertise not available
 Poorly informed decisions
 Inadequate institutional coordination 34
 The Role Of Leadership In
Establishing Quality Management In
The Organization
 A mission describing the work of
the organization
 A vision of the organization in the
future
 A definition of quality for the
organization

35
 QM guiding principles for leaders
and managers reflecting the
organization’s assumptions about
roles and actions of leaders in
creating a learning work
environment
 Integration of leadership policies
with the values
36
conclusion.

37
 Quality Index Example
 1994 1995 1996 1997

 Quality Costs
 Prevention $ 27,000 41,500 74,600
112,300
 Appraisal 155,000 122,500 113,400
107,000
 Internal failure 386,400 469,200
347,800 219,100
 External failure 242,000 196,000
38
 Measuring Yield & Productivity
 Ch 3 - 24

 where,


 Y = yield
 I = number units started in
production
 % G = percentage good units
39
 Product Yield Example
 Ch 3 - 25

 Start with 100 motors per day



 80% are good quality

 50% of poor quality units can be
reworked
 What is the product yield?
40
 Product Cost
 Ch 3 - 26

 (kd) (I) + (kr) (R)

 Y
 where, kd = direct manufacturing cost
41

 Product Cost Example
 Ch 3 - 27

 Direct mfg cost = $30 Rework cost

= $12


 Start with 100 motors 20%

defective
 50% of defective motors can be
reworked 42
 Multistage Product Yield
 Y = (I) (%g1)(%g2)...(%gn)


 where
 I = input batch size
 % gi = percent good at stage i

43
 Multistage Product Yield
 Motors are produced in a four-
stage process with yields given
below. If we start with 100 motors,
what is our product yield?


 Y = (I) (%g1)(%g2)...(%gn)

 = (100) (0.93) (0.95) (0.97) (0.92)

 = 78.8 motors 44
 What input is needed to achieve a
product yield of 100 good motors?
 Y


 (%g1) (%g2) (%g3) (%g4)

 100
 (0.93) (0.95) (0.97) (0.92)
 = 126.8 motors
 I= 45
 Quality Productivity Ratio (QPR)
 (Good quality units)


 (I) (proc. cost) + (I) (1-%G) (%R)

(rework costs)
 Prefer larger ratio
 Increases if processing or rework
costs decrease, or if process yield
increases
46
 QPR Example
 Ch 3 - 33

 Base case, QPR = 2.88

 Case 1 - Increasing input has
no effect

47
 PPT Slide
 Ch 3 - 34

 Case 2 - Decreasing cost increases

QPR
 Case 3 - Increasing yield increases
QPR
 Case 4 - Cutting costs & raising
yield is best
48
 Pareto Chart
 Ch 3 - 38

 Percent from each cause

 Causes of poor quality

 Machine calibrations

 Defective parts
49
Flowchart
Ch 3 - 39

50
Check Sheet
Ch 3 - 40

51
Histogram
Ch 3 - 41

52
Ch 3 - 42

53
 Control Chart
 Ch 3 - 43

 18

 12

 6

 3
54
 Fishbone Diagram
 Quality

 Problem
 Machines

 Measurement

 Human
55

 Fishbone Diagram
 Quality

 Problem
 Machines

 Measurement

 Human
56

 ISO 9000 Categories
 Ch 3 - 46

 ISO 9001 ~ Suppliers and

Designers
 ISO 9002 ~ Production
 ISO 9003 ~ Inspection and Test
 ISO 9004 ~ Quality
Management 57
 ISO Accreditation
 Ch 3 - 48

 European registration
 3rd party registrar assesses quality
program

European Conformity (CE) mark

authorized

 United States 3rd party registrars 58

 What Is Quality?
 Ch 3 - 2

 “The degree of excellence of a

thing” (Webster’s Dictionary)
 “The totality of features and
characteristics that satisfy needs” (
ASQC)
 Fitness for use

59
 Dimensions Of Product Quality
(Garvin)
 Ch 3 - 3

 1. Performance


 basic operating characteristics

 2. Features 60
 Chapter 3
 Quality Management

61
62