What is TQM?

• Total Quality Management

– An integrated effort designed to improve
quality performance at every level of the
organization.
• Customer-defined quality
– The meaning of quality as defined by the
customer.

Reid & Sanders, Operations Management Page 3

© Wiley 2002
 Defining Quality

• Conformance to Specifications
– How well the product or service meets the targets
and tolerances determined by its designers
• Fitness for Use
– Definition of quality that evaluates how well the
product performs for its intended use.
• Value for Price Paid
– Quality defined in terms of product or service
usefulness for the price paid.

Reid & Sanders, Operations Management Page 4

© Wiley 2002
 Defining Quality

• Support Services
– Quality defined in terms of the support provided
after the product or service is purchased
• Psychological Criteria
– A way of defining quality that focuses on
judgmental evaluations of what constitutes product
or service excellence.

Reid & Sanders, Operations Management Page 5

© Wiley 2002
 Manufacturing vs. Service

• Manufacturing produces a tangible product

– Quality is often defined by tangible characteristics
– Conformance, Performance, Reliability, Features
• Service produces an intangible product
– Quality is often defined by perceptual factors
– Courtesy, Friendliness, Promptness, Atmosphere,
Consistency

Reid & Sanders, Operations Management Page 6

© Wiley 2002
 Overview of TQM Philosophy

• Focus on identifying root causes of

reoccurring problems & correcting them
– A proactive, not reactive approach
• Allow customers to determine what’s
important (customer-driven quality)
• Involve everyone in the organization

Reid & Sanders, Operations Management Page 8

© Wiley 2002
 TQM Philosophy

• Maintain a Customer Focus:

– Identify and meet current customer needs
– Continually gather data (look for changing
preferences)
• Continuous Improvement:
– Continually strive to improve
– Good enough, isn’t good enough
• Quality at the Source:
– Find the source of quality problems & correct them
Reid & Sanders, Operations Management Page 9
© Wiley 2002
 TQM Philosophy

• Employee Empowerment:
– Empower all employees to find quality problems
and correct them
• Focus on internal & external customer needs:
– External customers:
• People who purchase the company’s goods and services
– Internal customers:
• Other downstream employees who rely on preceding
employees to do their job

Reid & Sanders, Operations Management Page 10

© Wiley 2002
 TQM Philosophy

• Understanding Quality Tools:

– All employees should be trained to properly utilize
quality control tools
• Team Approach:
– Quality is an organization-wide effort
– Quality circles: work groups acting as problem-
solving teams
• Benchmarking
– Studying the business practices of other
companies for purposes of comparison.
Reid & Sanders, Operations Management Page 11
© Wiley 2002
 TQM Philosophy

• Manage Supplier Quality:

– Ensuring that suppliers engage in the same high
quality practices
– Strategic partnering with key suppliers
• Quality of Design:
– Determining which features will be included in the
final design of a product to meet customers’ needs
& preferences
• Ease of Use:
– Ergonomics, easy to understand directions, etc.
Reid & Sanders, Operations Management Page 12
© Wiley 2002
 TQM Philosophy

• Quality of Conformance to Design:

– Degree to which the product conforms to it’s
design specifications (a measure of consistency &
lack of variation)
• Post-Sale Service:
– Assisting with issues that arise after the purchase
– Warranty & repair issues, follow through on any
promises to build a continuing relationship with the
customer

Reid & Sanders, Operations Management Page 13

© Wiley 2002
 Improving Quality by TQM
 Plan-Do-Study-Act Cycle (PDSA)
 Also called the Deming Wheel after originator
 Circular, never ending problem solving process

 Quality Function Deployment

 Used to translate customer preferences to design

 Seven Tools of Quality Control

 Tools typically taught to problem solving teams

11
 Improving Quality by TQM

 Kaizen
 Continuous improvement

 5’S

 The Practice of Good House keeping

12
 CI Methodology: PDCA Cycle
1. Plan a change
4. Institutionalize
aimed at
the change or
improvement.
abandon or
do it again.
4. Act 1. Plan

3. Check 2. Do

3. Study the results; 2. Execute the

did it work? change.
Quality Function Deployment
 What is QFD?
Quality Function Deployment (QFD) is a
systematic process for motivating a business to
focus on its customers.

It is used by cross-functional teams to identify

and resolve issues involve in providing products,
processes, services and strategies which will
more than satisfy their customers.
 Customer Satisfaction

 All customers want to be satisfied.

 Giving customers some extra value will

delight them by exceeding their
expectations and ensure their return.
7 QC Tools
 Basic 7 QC Tools
1. Flow Chart
2. Run Chart
3. Histograms
4. Pareto Diagram
5. Cause & Effect Diagram
6. Scatter Diagram
7. Control Charts
 Example: Pareto Analysis
Can be used 80%

to find when
80% of the
problems may Frequency
be attributed
to 20% of the
causes.

Design Assy. Purch. Training Other

Instruct.
 Example: Run Chart
Can be used to identify
when equipment or
processes are not behaving
Diameter

0.58 according to specifications.

0.56
0.54
0.52
0.5
0.48
0.46
0.44
1 2 3 4 5 6 7 8 9 10 11 12
Time (Hours)
 Example: Scatter Diagram
Can be used to illustrate the
12 relationships between quality
behavior and training.
10
Defects

8
6
4
2
0
0 10 20 30
Hours of Training
 Example: Cause & Effect Diagram
Possible causes: The results
or effect.
Machine Man

Environment Effect

Method Material

Can be used to systematically track backwards to find

a possible cause of a quality problem (or effect).
 Example: Control Charts
Can be used to monitor ongoing production process quality
and quality conformance to stated standards of quality.
1020
UCL
1010
1000
990
980
LCL

970
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
KAIZEN
 Introduction
“ Kai” in Japanese means “ Change” and
“Zen" means good. The literary meaning of
Kaizen is “ Change for good”
 Concept
 Kaizen is an philosophy it implies that whatever we do
can be continuously improved be it our working life or
personal life.

 Kaizen is something that anybody can do, every operator must

devote time for making improvements.

 Kaizen means “ Continuous Improvement”.

 Kaizen Principles
 Get rid of all old assumptions.

 Don’t look for excuses, look for ways to make things happen.

 It does not cost money to kaizen

 Kaizen Principles
 If something is wrong “Fix it Now.

 Good ideas flow when the going gets tough..

 Ask “WHY” five times – get to the root cause.

 Never stop doing KAIZEN

 Three Components of Kaizen

 PERCEPTIVENESS
 IDEA DEVELOPMENT
 DECISION MAKING, IMPLEMENTATION
& EFFECT
 Three Components of Kaizen
Perceptiveness:-
Discovering problems and pointing out what type of
kaizen is required to fix them

Idea Development:-
Devising creative solutions to problems
 Three Components of Kaizen
Decision Making, Implementation & effect:-
Deciding which kaizen proposals are the best and

Which can be implemented , planning how to implement them

And then actually implementing them.

When Kaizen
Whenever there is a

• Pain area for individual

• Pain area for organization

• Dissatisfaction over working method

 Problem Identification
What is problem?

• It’s the deviation from the normal

• Difference between what’s expected and what is actually

occurring.
Areas for Kaizen
• Cost
• Safety
• Maintenance
• Waste
• Inadequacy
• Energy
• Service
• Productivity
• Trust
• Inconsistency
5S – The Practice of Good
House keeping
 5S
THE SECRET TO
JAPANESE SUCCESS
 IDEA BEHIND 5S
In order to achieve high levels of quality, safety, and

productivity, workers must have a conductive

working environment
 WHAT IS 5S?
 Developed by the Japanese
 Housekeeping System
 Helps Create a Better Working Environment
and a Consistently High Quality Process
 THE 5S PRINCIPLES
 SEIRI – Organisation/Sort out
 SEITON – Orderliness/Systemize
 SEISO – The Cleaning/Shining
 SEIKETSU – STANDARDIZE
 SHITSUKE - Sustain/Discipline
 ADVANTAGES OF “5S”
 Company image improves

 Health and Safety is ensured

 Quality & Productivity improved

ADVANTAGES OF “5S”
 Results in a place easier to manage
 Smooth working
 No obstruction, No deviation, No problems
 Time saving
 Quick retrieval
 Accidents & mistakes minimized
 Increases space
 Creates workplace ownership
METHODOLOGY
OF 5S
SEIRI (SORT)
 SEITION (Set in Order)
Arrange items in a
Proper order so that
they can be easily
Picked up for use
SEISO (Shine)
Clean your
work place
completely so
that there is no
dust anywhere
SEIKETSU (Standardise)
Maintain a high
standard of house
Keeping and work
place organisation at
all times
SHITSUKE (Sustain)
Train people to
follow Good house
Keeping Discipline
independently
 SIX SIGMA

 A comprehensive and flexible system for

achieving , sustaining and maximizing business
success by minimizing defects and variability n
processes.
 Six Sigma Three Dimensions

 Led by Define Measure Analyze Improve Control

 Senior
 Mgmt • ••••••••
•
•••••• •
•• •
••• •
Regression
Driven by
LSL US
L

customer Methodology
needs Upper/Low
er
specificati
Organization Tools on limits

Enabled by quality 35 100%

team. 30
25
80%

20 60%
15 40%
10
20%
5
0 0%
L K A F B C G R D
Process variation Frequency Cumulative Frequency
 Three step process
 Determining defects per million opportunities
DPMO
 DMAIC
 An organizational network
 Defects per million opportunities
 k=no. of opportunities for making a defect per
unit of execution of that process
 n= no. of units of observation of the process
 d= no. of defects that occurred in that process
 DPMO= [d/k*n] * 1000,000.
 DMAIC

Control Measure

Improve Analyze

Define
Organization for six sigma

 The process owner

 The team leader and the members
 The six sigma coach
 The sponsor
 Statistical process control charts

 Attribute based measurement

p= proportion of defects
c= the no. of defects
 Variable based measurement

X= average of measurement
R= range of measurement
Thank you