Total Quality Management

What is Quality?
Old Quality vs. New Quality
Difference between old quality (Rolls Royce, personal
banker, ...) and new quality is that old was the work of
craftsmen and the new is the work of a system (Toyota,
Big Mac, Boeing Aircraft, Disney World, ...). The old is
expensive, made for the few, using skilled hands, is
beautiful and functionally based. The new reduces cost,
made for the many by intelligent minds and should drive
the economy and make business more competitive.

Toyota Commercial
Why care about quality
increase productivity

expand market share

raise customer loyalty

enhance competitiveness of the firm

at a minimum, serve as a price of entry

Achieving high quality Is Difficult
Only 36% of the firms felt that Total Quality programs boosted their
ability to compete.
Arthur D. Little Survey of 500 Firms

Over 50% of firms rated their efforts D or F relative to increasing

customer satisfaction, increasing market share, or reducing their cost.
Rath and Strong

Main Problem: Achieving high quality is as easy to understand as losing

weight and quitting smoking and is as difficult to do.

Steve Schwartz, IBM MDQVP

Why Quality is so difficult to do?

Quality can only be defined in terms of an agent (a judge of

quality).
One has to translate future needs of the user into measurable
characteristics
Service Industries are particularly
Difficult
Reasons:
High volume of transaction
Immediate consumption
Difficult to measure and control
More labor intensive
High degree of customization required
Image is a quality characteristic
Behavior is a quality characteristic
Quality Gurus

Deming: The father of the quality movement. Scientific

approach to quality
Juran: Quality by design
Crosby: Quality is free
Demings Seven
Deadly Diseases
Lack of Constancy of purpose
Emphasis on short term profits
Evaluation of performance, merit rating or annual review of
performance
Mobility of management
Running the company on visible figures alone
Excessive medical costs
Excessive costs of warranty fueled by lawyers that work on
contingency fees
Interview with Deming
What is TQM??

The essence of Total Quality Management is a common sense

dedication to understanding what the customer wants and then
using people and science to set up systems to deliver products
and services that delight the customer.

Greg Hughes
President
AT&T Transmission Systems
Basic Concepts of TQM
Customer Focus

Continuous Process Improvement - Kaizen

Employee Empowerment Everyone is responsible for quality

Quality is free - focus on defect prevention rather than defect

detection for it is always cheaper to do it right the first time

Benchmarking Legally stealing other peoples ideas

Customer-Supplier Partnerships

Management by fact..by numbers..by data Balanced scoreboard

(financial, customer, process, learning)
Quality in U.S. vs. the Japanese

U.S. conforming to the requirements at the least

cost
Japanese joint responsibility to make the end
customer happy

12
 I met the requirements

OEM

Supplier

OEM

Combative non collaborative relationship

13
Creating the Best Vehicle/Systems with All the People
All the Suppliers All the Time

YOU meet the

requirements! Lets create
the best
Vehicle and
Systems
together.

Partnership - Collaborative relationship

14
 Strength of USA vs. Japan

Concept

Good Innovative Ideas Good Implementation

Strength of USA Mfg Strength of Japanese Mfg

KAIZEN

Time
Good Ideas, Good Implementation are the goals of
everyone in the automotive industry
15
Seven Basic Quality Tools To improve
Process Quality
Scatter Diagrams: Plot data on a chart no attempt is made to
classify the data or massage it
Pareto Charts: Organize data on a histogram based on
frequency from most prevalent to least. Help identify major
causes or occurrences (80:20 rule)
Check Sheets: Easy way to count frequency of occurrence by
front line workers
Histograms: Categorize data is cells and plot (see if any patterns
emerge)
Run Charts: Plot data as a function of time
Cause and effects Charts: fishbone diagrams are used to identify
the root causes of a problem
Control Charts: are statistical tools used to determine if the
variation in results is caused by common or special events
Failures in O-rings
Graph Fit of O-ring failures
Full O-ring data including no failures
T RUN CHART
R
A
N
S
A
C
T
I
O
N
T
I
M
E
Time of Day
Data Collected
From Check Sheet
Time Range (in secs) Frequency
44-50 1
51-57 4
58-64 17
65-71 12
72-78 14
79-85 19
86-92 18
93-99 11
100-106 3
107-113 1
A Histogram
89 18
96 11
20 103 3
47
110 1
18
54

16
61
14
68
12
75
10
82
8
89
6

96
4

2 103

0 110
47 54 61 68 75 82 89 96 103 110
Be careful of Cell Size
47 1 50
35 54 4 64
30 61 17 78
25
68 12 5092
20
15
75 14 106
64
10 82 19
78
5 89 18
0 96 11 92

50103 64 78 923 106 106

110 1
Pareto Chart (80-20 Rule)
47 1
90 54 4 120%
80 61 17 100%
70 68 12
60 75 14 80%
50
82 19 60%
Series2
40
30 89 18 40% Series1
20 96 11
20%
10 103 3
0 110 1 0%
1 2 3 4 5 6 7
85
Further info on Pareto Charts
Pareto Diagrams
Purpose:
helps organize data to show major factors
displays data in the order of importance
organize based on fact rather than perception
To construct:
use data from a check sheet or similar instrument
analyze data to determine frequency
identify the vital few
calculate percentages
add percentages to find vital few (80%)
draw cumulative curve
Typical Application:
display relative importance of different factors
choose starting point for problem solving
monitor success
identify basic cause of a problem
use a selling tool to gain support
 Teller Processes
Sequence
of activities
Fatigue
Too
Training many
steps
Control
Attitude functions

Processing
Delays
Too much
downtime

Not user
Slow friendly
response
time

Fishbone Diagram aka

Computers
Cause & Effect Diagram
 Cause and Effect Diagram
Fishbone Diagram
Purpose:
visual display of information to identify root causes rather than symptoms.
To construct:
determine the issue and write problem statement in a box to the right of diagram
find the main causes and write them on branches flowing to the main branch (method,
equipment, people, material, environment, customer expectations, money,
management, govt. regulations)
identify all possible causes and write them on the diagram as sub-causes in each
category
Typical Application:
determine the real cause of the problem
check the potential effects of a solution

Fishbone Diagrams Explained

5 Whys problem solving technique
Mizenboushi and GD3 Concepts
Robust Design
- keep Good Designs
Good - minimize change
Design
Prevent Problems Find Problems
GD3

Good Good
Discussion Dissection
DRBFM DRBTR
Address any potential issues up stream at Design 28
Phase
Quality Focus At the Design Stage

Quality from the start

Directs attention to Change
Change = potential to have problems
Directs attention to Interfaces
Most defects occur at the interface

Focus on
Change Points & Interface Points
29
 No change No Problem

Examples:
Design change
Packaging environment
change
Usage environment
change
New manufacturing
process
New supplier

Change Points have the highest potential

to introduce defects 30
DRBFM Example

Tire Pressure Monitoring System

Changing the sensor from Aluminum Valve to Rubber Valve.

Purely for cost reduction purposes... System Performance is the same.

Simple change What could go wrong?

31
Interfaces
Interfaces (Interfaces where issues can brew and surface
later)
Customer to Supplier
Department to Department
System Interfaces

The Crash sensor failure on Honda Minivans

Interface Points have the highest potential

to introduce defects
32
Design Review By Failure Modes (DRBFM)
Basic Concepts
Before and After Description of the Change Point
Describe the Potential failure modes
Describe the Design Countermeasures
Target Testing of the change points and Countermeasures Only

Design techniques to uncover defects at

the design stage Up stream
 DRBFM DRBTR
Design Verify/Validate Design

Changes

Test Result (Change in product

due to test: Cracks,Leaks, etc.)

Focus on Implementation
34
Where do failures occur
Design Phase (Suppliers are Up Stream)
Production
In the field

Where is it cheapest to detect failures?

Example:
Replacing a four crash sensors by a single one ..
When Failures Occur!
Why did the failure happen?
Symptoms vs. Root Causes
Root Causes (Investigate the whole chain):
Suppliers/Component failure
Design
Manufacturing
Change management

Why were not able to detect it?

Rootcause Analysis:
Why Occurred?
Why Not Detected?
36
 Failure Detection 5Ws-2Hs
Who
Where
When
What
Why
How was the problem found?
How can we isolate it? Turn On / Turn Off

Rootcause Analysis Methodology

Failure Isolation KT Analysis: Is - Is Not

Why is this design and not the other similar design

Why this plant and not another plant
Why this operator and not the other operator
Why in winter and not in the summer
Why this computer and not the other computer
Why in this model and not in other models

Rootcause Analysis Methodology

Finding the root causes of a problem is not Fault
Finding/Criticism.
To find problems is not fault finding/criticism.

To find problems is a creative act, same as innovation.

We should never stop at only finding problems, but also develop a

systemic corrective action plan... FIX THE PROCESS that created the
problem & identify detection algorithms

We never forget that every job should relate directly to improving a

product. Other jobs are nothing but waste, e.g., only to check, to
inspect, etc.

Everyone should readily accept help from review participants.

39
 Summary - Concepts
Quality all the time by everyone from an end user prospective

Address issues up stream. Address product and process defects

at the design stage

Fixing problems usually involves fixing the systemic process

issues that caused the problem Reoccurrence Prevention

Focus on Implementation

Focus on Change Points and Interfaces