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Sustainable development of total quality management through Deming’s PDSA cycle

SUSTAINABLE DEVELOPMENT
OF TOTAL QUALITY
MANAGEMENT
THROUGH DEMING’S PDSA
CYCLE
Author: Dr. G. Karuppusami

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Sustainable development of total quality management through Deming’s PDSA cycle

Abbreviations

TQM Total Quality Management


CSF Critical Success Factor
QAP Quality-related Action Program
PDSA Plan-Do-Study-Act
TQMII Total Quality Management
Implementation Index

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What is Quality?

Quality is the totality of features and


characteristics of a product or service
that bear on its ability to satisfy implied
or stated needs.

ANSI/ASQC STD A3-1987.

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What is Quality?
• Feigenbaum (1951) and Abbott (1955) defined quality as ‘value’,

• Levitt (1972) as ‘conformance to specifications’,

• Juran et al. (1974) as ‘fitness for use’,

• Crosby (1979) as ‘conformance to requirements’,

• Taguchi (1981) as ‘the losses a product imparts to the society from the time the
product is shipped’,

• Reeves and Bednar, (1994) as ‘the extent to which a product or service meets
and/or exceeds a customer’s expectations’ which reflects a shift in focus to
customer satisfaction.

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Total quality management


• Ho (1997) defines the term TQM as:

‘Total = everyone associated with the company is involved


in continuous improvement (including its’ customers and
suppliers if feasible);

Quality = customers’ expressed and implied requirements


are met fully;

Management = executives are fully committed’.

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Motivation for the study


The business units are ever increasingly forced
to achieve world-class manufacturing
capabilities in order to compete and, in many
cases, to achieve in the market. One of the
means to achieve the world-class manufacturing
capability is through the practices of Total
Quality Management (Joseph, et al., 1999)

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Full TQM (OR) Partial TQM?

• The problem with TQM is not whether companies have


been converted to the philosophy: many surveys have
shown the philosophy being embraced by organizations
(Yong & Wilkinson, 1999). The issue relates more acutely
to whether these supposedly TQM companies are actually
practicing ‘total or partial TQM’ (Wilkinson et al., 1998).

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Some obstacles to achieving TQM

• Lack of top management support


• Lack of customer focus
• Lack of employee empowerment
• Lack of training

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Criteria for the study

‘Quality is one of the twentieth century’s


most important management ideas’
(Feigenbaum, 1999)

‘You can’t manage what you don’t measure’


(Wert, 2003)

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Critical Success Factors (CSFs) of TQM


• CSFs are the critical areas of managerial planning and action
that must be practiced to achieve effective quality
management in a business unit (Saraph et al., (1989)
• CSFs are critical and absolutely essential for the success of
TQM. The process stands a good chance of ending in failure
if these factors are not part of the management process.

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CSFs reported by Saraph et al., (1989)


1. The role of management leadership and quality policy
2. Role of quality department
3. Training
4. Product / service design
5. Supplier quality management
6. Process management
7. Quality data and reporting
8. Employee relations

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Quality Related Action Programs (QAPs)

• Critical success factors of TQM are latent variables,


which means they cannot be measured directly. Hence
Quality-related Action Programs (QAPs) are generated
that represent manifestations of these CSFs. QAPs are
the quality management prescriptions.

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QAPs of CSF ‘The role of top management


leadership and quality policy’
1. Top management responsibility for quality performance
2. Performance evaluation based on quality
3. Acceptance of responsibility for quality by major dept heads
4. Degree of participation by dept heads in quality improvement
process
5. Consideration of quality as first priority
6. Discussion of quality related issues in meetings
7. Extent to which quality goals and policies are understood
8. Degree of comprehensiveness of quality plan

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CSFs and QAPs of TQM


TQM

CSF 1 CSF n
CSF 2

QAP 1 QAP 2 QAP 3 QAP i QAP 1 QAP 2 QAP 3 QAP i QAP 1 QAP 2 QAP 3 QAP i

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Sustainable development of TQM


• Quinn (2000) describes sustainability as the development
that meets present needs without compromising the
ability of future generations to meet their own needs.

• Without sustainability, there is little benefit to be gained


from TQM (Curry et al., 2002).

• The focus of maintaining competitive advantage and


performance does not simply emphasize the present
time, but also the future (Zairi, 2002).

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Sustainable development of TQM

Sustainability is defined as ‘the ability of an organization


to adapt to change in the business environment to
capture contemporary best practice methods and to
achieve and maintain superior competitive performance’
(Zairi & Liburd 2001).

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PDSA Cycle for sustainable development of TQM

Step 1: Plan for TQM


ACT
PLAN

Step 4: Take
necessary actions to Step 2: Implement
improve the less TQM
developed programs
of TQM

DO
STUDY Step 3: Study and
measure the level
of TQM
implementation

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TQM Implementation Index (TQMII)

TQM Implementation Index (TQMII) can be


interpreted as the level of TQM implementation
of a company on a unit scale. Input is the
company’s total quality effort. Output is the
level of the performance of the plant. TQMII
measures how well a company has
implemented its TQM.

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Framework for TQMII calculation


• The set of CSFs and QAPs implemented by the
company.
• The list of departments involved in the quality
programs.
• The level of quality consciousness of the
departments.
• The degree to which critical quality factors and
quality action programs applied.

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TQM Implementation space

TQMIIim k

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Notations
 i = Index of QAPs
 Dm = Departments
 m = Index of departments
 Zm = Ideal weight factor assigned department
 Wm = Revised normalized weight of
department
 Vim = Actual performance of quality-related
action programme i in department m

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TQMII Algorithm
Algorithm developed by Kumar et.al.(2004) is adopted.
TQMII algorithm for the firm (or) CSF is as follows.

i =I m =M

∑ ∑V im Wm
TQMII = i =1 m =1
m =M
10 I ∑Zm
m =1

i = 1, 2, 3…..I; m = 1, 2, 3 …. M,
I = Total number of QAPs of the firm or CSF

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Presentation of a Case
Study to illustrate TQMII

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Case Study
• The suggested PDSA model for TQM implementation
was applied to an automotive ancillary company located
in South India.
• The company is the largest manufacturer of automotive
horns in India and has ISO 9002, ISO 14001, ISO/TS
16949:1999 certifications.
• Thirteen CSFs and 85 QAPs were selected by the expert
committee.

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Case Study – CSFs selected


1. Role of top management and quality policy
2. Supplier quality management
3. Customer focus
4. Process management
5. Product / service design
6. Quality data and reporting
7. Training
8. Employee relations
9. Role of quality department
10. Benchmarking
11. Information technology analysis
12. Lean manufacturing
13. Continuous improvement

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TQMII Calculation – Step 1 (Table 1)

1. Compute each department’s normalized quality


consciousness weight

The calculation for the first the department ‘D1’ is as


follows;

W1= 10×(0.5×2 + 1×4 + 2.5×6 + 3×8 + 3×10) = 7.4


10×10

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TQMII Calculation – Step 2 (Table 1)

2. Compute each department’s quality


consciousness state efficiency.

The calculation for the first the department ‘D1’ is


as follows;

QCSE1= (0.5×2 + 1×4 + 2.5×6 + 3×8 + 3×10) = 0.74


10×10

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TQMII Calculation – Step 3 (Table 2)


3. Compute TQMII of QAPs
i = 1, 2, 3…..I; m = 1, 2, 3 …. M i=I m=M

∑ ∑V Wm
im

TQMII = i =1 m =1
m=M
10 ∑ Zm
m =1

TQMII of QAP 1 is as follows

= (9×7.4 + 10×6 + 7×5.81 + 10×5.46 + 10×7.92 + 10×7.7 + 8×5.22 + 9×4.74 + 5×6.86)


10(10 + 10 + 7 + 7 + 9 + 10 + 9 + 6 + 7)
= 0.65

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TQMII Calculation – Step 4 (Table 2)


4. Calculate TQMII of the CSF or firm as a whole.
i=I m=M

∑ ∑V Wm
im

TQMII = i =1 m =1
m=M
10 I ∑ Zm
m =1
I = Total number of QAPs of the firm or CSF,
i = 1, 2, 3…..I;
m = 1, 2, 3 …. M,

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Table 1 Department consciousness matrix

Normalized Quality Consciousness weight, Wm

Quality consciousness state efficiency for Department m, QCSEm


State of quality consciousness
Department name Weight

Crisis Management

Awareness

Emergence

Maturity

Sustenance
Dm

k= 1 2 3 4 5
Zm yk = 2 4 6 8 10
Product engineering D1 10.00 X11 = 0.5 1 2.5 3 3 7.40 0.74
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Quality assurance D2 10.00 2 2 2 2 2 6.00 0.60
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Production planning & control D3 7.00 0.5 0.5 1 3 5 5.81 0.83
Application Engineering D4 7.00 0 1 1 6 2 5.46 0.78
Sustainable development of total quality management through Deming’s PDSA cycle

Table 2. TQMII Calculation


CSFs, QAPs and weights Index Performance weights of departments on each QAPs
QAPs Index (i)

QAPs weight (Ui)


CSF QAPs D1 D2 D3 D4 D5
m= 1 2 3 4 5
wm = 7.40 6.00 5.81 5.46 7.92

Zm = 10.00 10.00 7.00 7.00 9.00

1 Top management responsibility for quality 8.86 V1m = 9 10 7 10 10


Role of Top Management and Quality Policy

performance

2 Performance evaluation based on quality 9.05 7 6 6 10 8

3 Acceptance of responsibility for quality by major 8.95 6 8 7 6 10


dept heads

4 Degree of participation by dept heads in quality 8.95 7 9 6 10 10


improvement process

5 Consideration of quality as first priority 9.33 8 8 7 10 10

6 Discussion of quality related issues in meetings 8.81 8 10 5 9 10

7 Extent to which quality goals and policies are 8.81 7 8 6 9 10


understood

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Table 2. TQMII Calculation contd… QAPs Index (i)

QAPs weight (Ui)

TQMII of QAP I given state of quality

TQMII of CSFi given state of quality


CSF QAPs D6 D7 D8 D9
m= 6 7 8 9
wm = 7.70 5.22 4.74 6.86
Zm = 10.0 9.00 6.00 7.00
Role of Top Management and Quality Policy

1 Top management responsibility for quality 8.86 V1m = 10 8 9 5 0.65


performance

2 Performance evaluation based on quality 9.05 7 7 7 7 0.55


3 Acceptance of responsibility for quality by 8.95 9 6 7 6 0.56
major dept heads

4 Degree of participation by dept heads in 8.95 7 6 6 7 0.58 0.59


quality improvement process

5 Consideration of quality as first priority 9.33 9 8 7 8 0.63

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6 Discussion
meetings
of quality related issues in 8.81 7 10 5 7 0.60

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7 Extent to which quality goals and policies are 8.81 6 8 6 8 0.57
understood
Sustainable development of total quality management through Deming’s PDSA cycle

TQMII of the selected organization

The combined level of TQM


implementation index in
the selected organization was assessed
as 0.460 on a unit scale

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Recommendations as a result of the Study


• Link the department quality consciousness state efficiency of
TQM implementation program to annual incentive scheme.

• Arrange training program for all the least developed QAPs.

• Encourage exchange of information and data among


departments regarding TQMII.

• Obtain expert advice about the list of CSFs and QAPs selected
for the TQMII analysis.

• Integrate the TQM programs with the procedures of ISO 9002,


ISO 14001, ISO/TS 16949:1999 certifications.
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Conclusions
• The problem areas of TQM implementation correctly identified
by the proposed PDSA method.

• The model allows tracking of TQM programs and departments


that are substantially impacting the TQM implementation in the
company.

• Specific recommendations were proposed to bring about


improvements in those least developed TQM programs.

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References
1 Crosby, P.B., (1979), Quality Is Free, New American Library, New York, NY
2 Curry, A. and Kadasah, N. (2002), “Focusing on key elements of TQM – evaluation for sustainability”, The TQM
magazine, Vol. 14 No.4, pp 207-216.
3 Feigenbaum, A.V. (1951), Quality control: Principles, Practice, and Administration (New-York: McGraw-Hill).
4 Ho, D.C.K., Duffy, V.G. and Shih, H.M. (2001), “Total quality management: An empirical test for mediation effect”,
International journal of production research, Vol.39 No.3, pp. 529-548.
5 Joseph, I. N., Rajendran, C. and Kamalanabhan, T.J. (1999), ” An Instrument For Measuring Total Quality
Management Implementation in Manufacturing Based Business Units In India”, International journal of production
research, Vol.37 No.10 pp. 2201-2215
6 Juran, J.M., Gryna, F.M., Jr. and Bingham, R.S. (1974), Quality Control handbook, 4th edition, McGraw-hill, New
York
7 Kumar, A., Stecke, K.E. and Motwani , J.G. (2004), ”An analytical framework to measure, benchmark, and
improve the strategic position of an organization using a quality competitiveness index”, International Journal of
Operations and Quantitative Management, Vol.10 No. 2, pp. 1-37.
8 Levitt, T. (1972), “Production line approach to service”, Harvard Business Review, Vol. 50, pp. 41-52
9 Quinn, B. (2000), “Sustaining New Jersey’s industrial future”, Pollution Engineering, Vol. 32 No.13, pp. 25-27.

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References contd…
10 Reeves, C.A. and Bednar, D.A. (1994), “Defining quality: alternatives and implications”, Academy of
Management Review, Vol. 19, pp. 419-441.
11 Saraph, J. V., Benson, P. G. and Schroeder, R. G. (1989) “An Instrument for Measuring the Critical Factors of
Quality Measurement”, Decision Sciences, Vol. 20 No. 4, pp. 810-29.
12 Taguchi, G., (1981), On-line quality control during production, Japanese standard’s association

13 Wilkinson, A. (1998), “Empowerment”, International Encyclopaedia of Human Resource Management,


pp. 507-17
14 Yong, J. and Wilkinson, A. (1999), “The state of total quality management: a review’’, The International Journal
of Human Resource Management, Vol. 10 No. 1, February, pp. 137-61.
15 Zairi, M. (2002), “Beyond TQM implementation: the new paradigm of TQM sustainability“, Total Quality
management, Vol. 13 No. 8, pp. 1161–1172.
16 Zairi, M. and Liburd, L.M. (2001), “TQM sustainability- a roadmap for creating competitive advantage”,
Integrated management, Proceedings of the 6th International conference on ISO 9000 and TQM, Paisley, Ayr,
Scotland, 17-19 April, pp. 452-461.

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Quality is a Journey,
not a Destination

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Thanks

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