Total Quality Management

Presented to: Prof Ganachri

Group Members:
 Total Quality Management

Total Quality Management (TQM) is a

philosophy which involves company
practices that aim to harness the human
and material resources of an organization in
the most effective way to achieve the
objectives of the organization
 What is TQM?
Concern for
Constant drive Management employee
for continuous by Fact involvement and
improvement development
and learning.
Organisation
Passion to deliver responsibility
Result Focus customer value /
excellence
Partnership
Actions not just
perspective
words
Process (internal /
(implementation)
external)
Management
 Five Pillars Of TQM

 Product
 Processes
 Organization
 Leadership
 Commitment
 Evolution of Quality Management

Inspection Salvage, sorting, grading, blending, corrective

actions, identify sources of non-conformance
Develop quality manual, process performance
Quality data, self-inspection, product testing, basic
Control quality planning, use of basic statistics,
paperwork control.
Quality systems development, advanced quality
Quality
planning, comprehensive quality manuals, use of
Assurance quality costs, involvement of non-production
operations,failure mode and effects analysis

TQM Policy deployment, involve supplier & customers,

involve all operations, process management,
performance measurement, teamwork, employee
involvement.
 Typical process of TQM
 Policy and strategy of  Improvement of the
the organization organization
 Mission
 Leadership and commitment
 Working environment
 Divisional objectives  Measurement of performance
 Improvement objectives
 Management of the  Improvement plans
organization  Monitor and review
 Organization structure
 Management system
 Information system
 Communication
Fundamental Concepts
Commitment to TQM
 Commitment to TQM by the highest level of management.
 Promotion of this concept to all levels and activities of the organization
 Individual involvement
 Devotion to continuous improvement

Customer satisfaction
 Internal customers
 External customers
 Customer needs
 Customer expectations
Fundamental Concepts
Quality Losses
 Ineffective and inefficient utilization of human, financial and material
resources in processes
 Loss of customer satisfaction
 Loss of opportunity to add more value
 Loss due to waste or misuse of resources

Participation by all
 Strengths and abilities of individuals
 Effective utilization of strengths and abilities
 Communication and teamwork
Fundamental Concepts

Process Measurements
Continuous improvement
Problem Identification
Alignment of corporate objectives and
Individual attitudes
Personal Accountability
Personal Development
Implementing Total Quality
Management
 Appropriate systems, improvement
tools and techniques
 Application and coordination of the
above
 Overcome resistance to change
Implementing TQM
Organizational structure
 Incremental improvement of processes
 Review of the appropriateness of the organizational structure

Process Management Concept

 Process owner and process customer
 Responsibilities of management and process owners
Implementing TQM
Measurement of Performance
 Monitoring the performance of all key functions and processes
 Key attributes: cost, time, flexibility, and quality
 Indicators of process efficiency
 Measures of customer satisfaction

 Improvement planning techniques

 Training
Quality improvement
 Situations requiring improvement
 High quality costs
 Customer complaints
 Health and safety considerations

 Problem solving techniques

 Identify opportunities for improvement
 Apply to all areas of the business

 Review priorities of improvement before action

Quality improvement
A methodology for quality improvement
 Involve the whole organization
 Initiate quality improvement projects or
activities
 Investigate possible areas for improvement
 Establish cause and effect relationship
 Take improvement action
 Confirm the improvement
 Sustain the gains
Quality improvement
Problem solving process
 Identify subjects for improvement
 Prioritize
 Analyze causes of problem
 Collect data for analysis
 Assess alternative solutions for actions
 Select the optimum solution for action
Managing for quality improvement

Organizing for quality improvement

 Responsibilities for Quality improvement
 Within the organizational hierarchy
 Within the processes that flow across organizational
boundaries

Planning for quality improvement

Measuring quality improvement
Measure of quality losses
 Associated with customer satisfaction
 Associated with process efficiency
 Sustained by society
Managing for quality improvement
Measuring quality improvement
 Statistical interpretation of trends
 Establish and meet numerical targets
 Measure and track trends
 Report and review measures
 Measure the cost of measurement
Tools for quality improvement

 Pareto Analysis
 Flowcharts
 Checklists
 Histograms
 Scatter Diagrams
 Control Charts
 Cause-and-Effect Diagrams
 PARETO CHART
DEFINITION
 A Pareto Chart is a vertical bar chart in which the bars are arranged in
the descending order of their height starting from the left and prioritize
the problems or issues.

USES
 to prioritize problems
 to analyze a process
 to identify root causes
 to verify that whatever improvement process you implement continues
to work
Pareto Analysis

NUMBER OF
CAUSE DEFECTS PERCENTAGE

Poor design 80 64 %
Wrong part dimensions 16 13
Defective parts 12 10
Incorrect machine calibration 7 6
Operator errors 4 3
Defective material 3 2
Surface abrasions 3 2
125 100 %
 Percent from each cause

10
20
30
40
50
60
70

0
Po
W or
ro De
ng si
gn
(64)

di
m
De en
fe si
ct on
s

(13)
iv
M e
ac pa
hi r ts
ne
ca (10)
O
pe l ibr
ra at
to io
(6)
r ns
e r
De ro
fe rs
ct
(3)

iv

Causes of poor quality

e
Su m
at
Pareto Chart

rfa er
ce ia
(2)

ab ls
ra
si
on
s
(2)
Flow Charts
Flow charts are nothing but graphical representation of steps involved in a
process. Flow charts give in detail the sequence involved in the material,
machine and operation that are involved in the completion of the process.
Thus, they are the excellent means of documenting the steps that are carried
out in a process.

Start/
Finish Operation Operation Decision Operation

Operation Operation

Decision Start/
Finish
Check Sheet
Check sheets are nothing but forms that can be used to systematically collect data.
Check sheet give the user a place to start and provides the steps to be followed in
Collecting the data

COMPONENTS REPLACED BY LAB

TIME PERIOD: 22 Feb to 27 Feb 2002
REPAIR TECHNICIAN: Bob

TV SET MODEL 1013

Integrated Circuits ||||
Capacitors |||| |||| |||| |||| |||| ||
Resistors ||
Transformers ||||
Commands
CRT |
CHECK SHEET

USES STEPS
 to gather data  team agrees on what to
 to test a theory observe
 decide who collects data
 to evaluate alternate
 decide time period for
solutions
collecting data
 to verify that whatever
 design Check Sheet
improvement process
 collect data
you implement
 compile data in the
continues to work
Check Sheet
 review Check Sheet
Histogram
Histograms help in understanding the variation in the process. It also helps in
estimating the process capability.

20

15

10

0
1 2 6 13 10 16 19 17 12 16 2017 13 5 6 2 1
Scatter Diagram
It is a graph of points plotted; this graph is helpful in comparing two variables.
The distribution of the points helps in identifying the cause and effect relationship
Between two variables.

X
 Control Chart
A control chart is nothing but a run chart with limits. This is helpful in finding the
amount and nature of variation in a process.

24
UCL = 23.35
Number of defects

21

18 c = 12.67

15

12

6
LCL = 1.99
3
2 4 6 8 10 12 14 16

Sample number
Cause and Effect Diagram
 Developed by Dr Kaoru Ishikawa in 1943. It is also known by
the name of
 1) Ishikawa diagram,
 2)Fishbone diagram.

 This diagram is helpful in representing the relationship

between an effect and the potential or possible causes that
influences it.

 This is very much helpful when one want to find out the
solution to a particular problem that could have a number of
causes for it and when we are interested in finding out the
root cause for it.
 Cause-and-Effect Diagram
Measurement
Measurement Human
Human Machines
Machines
Faulty
testing equipment Poor supervision Out of adjustment

Incorrect specifications Lack of concentration Tooling problems

Improper methods Inadequate training Old / worn

Quality
Quality
Inaccurate Problem
Problem
temperature
control Defective from vendor Poor process design
Ineffective quality
Not to specifications management
Dust and Dirt Material- Deficiencies
handling problems in product design

Environment
Environment Materials
Materials Process
Process
The Continuous Improvement Process

Empowerment/
Shared Leadership

Measurement
Customer
Satisfaction
Measurement

Business
Results Process
Team Improvement/
Management
Problem
Solving

...
Measurement
Cost of Quality
The seven sources of waste
 Overproduction
 Defective products
 Waiting lines and delays
 Stocks of intermediaries/semi-finished products
 Transportation
 Ineffective procedures
 Ineffective movements or actions
 BARRIERS
 Lack of management commitment
 Inability to change organizational culture
 Improper planning
 Lack of continuous training and education
 Incompatible organizational structure
 Insufficient resources
 Use of prepackaged program
 Ineffective measurement techniques
 Inadequate attention to customers
 Inappropriate conditions for implementation
 Inadequate use of teamwork
 Employee Empowerment
 TQM stresses team work in solving quality problems , e.g.
quality circle, brainstorming, discussion, quality control tools
 What is a Quality circle – a team of volunteer production
employees and their supervisors (8-10) that volunteer and meet
regularly to solve quality problems.
 Team meets weekly; analyses and solve problems, decisions
made through group consensus.
 Open discussion promoted; criticism not allowed
 Employees viewed as most important organizational resource
and great care is taken in employee hiring and training.
 Employees extensively trained in customer service,
communication, and quality awareness
Quality
Circles Organization
8-10 members
Same area
Supervisor/moderator

Training
Presentation Group processes
Implementation Data collection
Monitoring Problem analysis

Problem
Solution Identification
Problem results List alternatives
Consensus
Brainstorming
Problem
Analysis
Cause and effect
Data collection
and analysis
 Elements for Success

 Management Support
 Mission Statement
 Proper Planning
 Customer and Bottom Line Focus
 Measurement
 Empowerment
 Teamwork/Effective Meetings
 Continuous Process Improvement
 Dedicated Resources
 Six Sigma
 Business improvement approach that seeks to find and
eliminate causes of defects and errors in processes by
focusing on outputs that are critical to customers.
 The term Six Sigma is based on a statistical measure that
equates 3.4 or fewer errors or defects per million
opportunities.
 Motorola pioneered the concept of Six Sigma.
 The late Bill Smith, a reliability engineer is credited with
conceiving the idea of Six Sigma.
 GE (specifically CEO Jack Welch) extensively promoted it.
Black Belts and Green Belts

 Champion
 an executive responsible
for project success
 Black Belt
 project leader
 Master Black Belt
 a teacher and mentor for
Black Belts
 Green Belts
 project team members
 Six Sigma: DMAIC
DEFINE
DEFINE MEASURE
MEASURE ANALYZE
ANALYZE IMPROVE
IMPROVE CONTROL
CONTROL

67,000
67,000 DPMO
DPMO
cost
cost = 25% of
= 25% of sales
sales
3.4
3.4 DPMO
DPMO
Contrasts between traditional TQM and Six Sigma
 TQM is based largely on worker empowerment and teams; SS is
owned by business leader champions.

 TQM is process based; SS projects are truly cross-functional.

 TQM training is generally limited to simple improvements tools

and concepts; SS is more rigorous with advanced statistical
methods.

 TQM has little emphasis on financial accountability; SS requires

verifiable return on investment and focus on bottom line.
 Kaizen
 A Japanese term meaning ‘change for the better’ the
concept implies a CONTINUOS IMPROVEMENT in
all company functions at all levels. It is more cultural
attitude and a life style rather than techniques.

 Since the improvement is gradual, the expenditure to

achieve the process is very small.
Total Quality Management (TQM) Programs

 Motorola - Six Sigma

 Xerox - Leadership through Quality

 Intel - Perfect Design Quality

 Hewlett-Packard - Total Quality Control

Case Study
and
Illustrations
 A Case Study
on
“Pending Papers”
by
Quality Circle
of M/S Techtronics Pvt. Ltd., Hyderabad
 The Problem :
To reduce the Time Gap between receipts of
letters or communication and the Disposal or
action taken.

 Data Collected:
Data revealed that on an Average 4-7 Days are
taken to dispose a paper or a letter of
communication.
 Brainstorming:
Reasons for delay were;
1. Lack of proper Planning
2. Improper codification of files
3. Postponement
4. Disturbance
5. Tension
6. Insufficient Time
7. Insufficient Staff
8. No clear Job Specification
9. Everything is not in Place
10.Other reasons
Major Causes:
 After discussion it was identified that the
major causes for the delay were:
1.Lack of Planning – 40%
2.The presence of Tension – 20%
3.The Attitude to Postpone – 15%
4.Lack of Allocation of work – 10%
5.Other reasons – 15%
Recommendations:
1. Planning: 4. Allocation of Work:
 Know the capacity, work load, etc.  Know the importance of work, time
factor
 Prioratise
 Work to be equally distributed
 Communication must be clear
1. Tension:  Think what to do, when and how
 Rectify mistake at initial stage
itself
 Complete the task in time 5. Everything in Place and
Place for Everything:
1. Postponement:  Files, stationary, etc. to be kept in
 Reallocation of work an orderly manner
 Increase efficiency
 Additional manpower
Solution and Conclusion..
 Plan the work in advance
 Do things right at first time
 Do one job at a time
 Never postpone work
 Prioritise the work and plan your time
 Everything in place and place for everything must be strictly followed

 Conclusion:
 The average time taken previously to dispose off the papers was 4-7
days.
 After implementing Quality Circle, the papers are disposed off within 48
hours.
Illustrations on TQM
 Illustrations on TQM.xls
 Quality is a Journey, not a
Destination.