TOTAL QUALITY MANAGEMENT: TQM

Origins, Evolution & key elements

What is Quality?
Quality is fitness for use (Joseph Juran) Quality is conformance to requirements (Philip B. Crosby) Quality of a product or services is its ability to satisfy the needs and expectations of the customer

Evolution of Quality Management

Inspection Quality Control Quality Assurance TQM
Salvage, sorting, grading, blending, corrective actions, identify sources of non-conformance Develop quality manual, process performance data, self-inspection, product testing, basic quality planning, use of basic statistics, paperwork control. Quality systems development, advanced quality planning, comprehensive quality manuals, use of quality costs, involvement of non-production operations, failure mode and effects analysis, SPC. Policy deployment, involve supplier & customers, involve all operations, process management, performance measurement, teamwork, employee involvement.

W. E. Deming and the 6 Eras of Quality

1920s : New statistical thinking and methods in manufacturing 1930/40s : Use of statistical thinking outside manufacturing 1950/60s : Systems of improvement 1970/80s : The fourteen points Late 80s : The New Climate 1990s : System of Profound Knowledge

Demings view of a production as a system

Receipt & test of materials Suppliers, materials & equipment Production, assembly, inspection Design & redesign Consumer Research

Distribution

Consumers

Test of processes, machines, methods, cost

Demings Chain Reaction

Improve Quality Provide jobs and more jobs Stay in business
Cost decreases because of less rework, fewer mistakes, fewer delays, snags, better use of machine time and materials

Productivity improves Capture the market with better quality and lower price

The Deming Cycle or PDCA Cycle PLAN

ACT

Plan a change to the process. Predict the effect this change will have and plan how the effects will be measured

DO

Adopt the change as a permanent modification to the process, or abandon it.

Implement the change on a small scale and measure the effects

CHECK
Study the results to learn what effect the change had, if any.

W. Edwards Demings 14 Points 1) Create constancy of purpose towards improvement of

product and services.

2) Adopt the new philosophy. We can no longer live with

commonly accepted levels of delays, mistakes, defective workmanship.

3) Cease dependence on mass inspection. Require, instead,

statistical evidence that quality is built in.

4) End the practice of awarding business on the basis of

price tag.

W. Edwards Demings 14 Points 5) Find problems. It is managements job to work

continually on the system.

6) Institute modern methods of training on the job. 7) Institute modern methods of supervision of production
workers. The responsibility of foremen must be changed from numbers to quality.

8) Drive out fear that everyone may work effectively for the
company.

W. Edwards Demings 14 Points 9) Break down barriers between departments. 10) Eliminate numerical goals, posters and slogans for the
workforce asking for new levels of productivity without providing methods.

11) Eliminate work standards that prescribe numerical quotas.

Remove barriers that stand between the hourly worker 12) and his right to pride of workmanship.

W. Edwards Demings 14 Points 13) Institute a vigorous programme of education and

retraining.

14) Create a structure in top management that will push

everyday on the above 13 points.

Demings System of Profound Knowledge

Appreciation for system Knowledge about variation

Theory about knowledge

Knowledge of psychology

Philip Crosbys Four Absolutes

What is Quality? What system is needed to cause quality? What performance standard should be used? What measurement system is required? Definition : Conformance to requirements System of quality is prevention Performance Standard : Zero Defects Measurement : Price of nonconformance (PON)

Crosbys Successful Company

Characteristics of the Eternally Successful Organisation People do things right routinely Growth is profitable and steady Customer needs are anticipated Change is planned and managed People are proud to work there

Philip B. Crosbys 14 Points 1) Make it clear that management is committed to quality.

Form quality improvement teams with representatives 2) from each department. Determine where current and potential quality problems 3) lie. Evaluate the cost of quality and explain its use as a 4) management tool.

Philip B. Crosbys 14 Points 5) Raise the quality awareness and personal concern of all
employees.

6) Take actions to correct problems identified through

previous steps.

7) Establish a committee for the zero defects programme.

Train supervisors to actively carry out their part of the 8) quality improvement programme.

Philip B. Crosbys 14 Points 9) Hold a zero defects day to let all employees realise that
there has been a change.

10) Encourage all individuals to establish improvement goals

for themselves and their groups.

11) Encourage employees to communicate to management the

obstacles they face in attaining their improvement goals. Recognise and appreciate those who participate.

12)

Philip B. Crosbys 14 Points

13) Establish quality councils to communicate on a regular

basis.

14) Do it all over again to emphasise that the quality

improvement programme never ends.

Joseph M. Jurans Quality Trilogy

Quality Planning
Establish quality goals Identify customer needs Translate needs into our language Develop a product for these needs Optimise product features for these needs

Quality Control
Prove the process can produce under operating conditions Transfer process to operation

Quality Improveme
Seek to optimise the process via tools of diagnosis

Jurans Trilogy Diagram

Quality Planning 40 Cost of Poor Quality Quality control (during operations) Quality improve -ment Original zone of quality control

20

New zone of quality control

0 0

TIME Lessons learned

Jurans Quality Planning Road Map

1) Identify who are the customers 2) Determine the customers needs 3) Translate the needs into our language 4) Develop a product to meet those needs 5) Optimise a product so as to meets our needs as well as the customers. 6) Develop a process which is able to produce the product 7) Optimise the process 8) Prove the process can make the product under operating conditions

Joseph M.Juran and the Cost Of Quality

2 types of costs: Unavoidable Costs: preventing defects (inspection, sampling, sorting, QC) Avoidable Costs: defects and product failures (scrapped materials, labour for re-work, complaint processing, losses from unhappy customers

Gold in the Mine

Joseph M.Juran and the Cost Of Quality

Costs Total Costs Unavoidable costs

Avoidable costs 100% defective Point of Enough quality

Joseph M.Juran and the Cost Of Quality

Costs Total Costs Unavoidable costs

Avoidable costs

100% defective

Point of Enough quality

Joseph M. Jurans 10 Points 1) Build awareness of the need and opportunity for
improvement.

2) Set goals for improvement. 3) Organise to reach the goals (establish a quality council,
identify problems, select projects, appoint teams, designate facilitators)

4) Provide training. 5) Carry out projects to solve problems

Joseph M. Jurans 10 Points 6) Report progress. 7) Give recognition. 8) Communicate results. 9) Keep score. 10) Maintain momentum by making annual improvement part
of the regular systems and process of the company.

What is TQM?
Constant drive for continuous improvement and learning.

Management by Fact

Concern for employee involvement and development

Result Focus

Passion to deliver customer value / excellence

Organisation response ability

Actions not just words (implementation)

Process Management

Partnership perspective (internal / external)

LEARNING AND TQM

Learning Process Improvement Quality Improvement Customer Satisfaction Shareholder Satisfaction Employee Satisfaction

BASIC PRINCIPLES OF TQM

Approach Scope Scale Philosophy Standard Control Theme Management Led Company Wide Everyone is responsible for Quality Prevention not Detection Right First Time Cost of Quality On going Improvement

FOUR KEY PRINCIPLES

Measure quality so you can affect it Focus on a moving customer Involve every employee Think long term - Act short term

THE CASE FOR QUALITY

1 Success of competitors who take quality seriously 2 Rising expectations of customers 3 Quality differentiates companies from the competition 4 Narrowing of supplier bases by quality conscious companies
.

THE CASE FOR QUALITY

5 Growing evidence that growth in market share comes from sustained quality. 6 Cost advantages 7 High cost of catastrophic failure 8 Inspection poor substitute for right first time

SEVEN DEADLY SINS OF TQM

Flight to nowhere One size fits all Substituting TQM for leadership Inside - Out indicators Mandatory religion Quality kept as a separate activity Teaching to the test Booz-Allen & Hamilton

IS QUALITY A SOUND INVESTMENT?

Year 1988 1988 1989 1990 1990 1990 1991 1992 1992 1992 1993 1994 Company Motorola Westinghouse (CNFD) Xerox (BPS) General Motors Federal Express IBM (IBM Rochester) Selectron AT&T (UCS) AT&T (TSBU) Texas Instruments (DS&E) Zyta Eastman Chemical Stock Growth (Oct 94) 373.0% - 49.6% 75.9% 1.6% 10.6% - 34.9% 526.9% 32.2% 32.2% 106.8% 8.4% 18.5%

Total Stock Value Standard & Poor 500 Stock value

Source: US Dept. of Commerce Study 1995

23016 (91.8% growth) 15911 (32.6% growth)

THE NEW ISO 9000 2000 QUALITY STANDARD

REASONS FOR CHANGE

ISO Technical Committee (TC) argue that:
The main reason for the year 2000 revision is to give users the opportunity to add value to activities and to improve their performance continually by focusing on the major processes within the organisation

ISO 9000 2000 CHANGES

CUSTOMER FOCUSED ORGANISATION LEADERSHIP INVOLVEMENT OF PEOPLE PROCESS APPROACH SYSTEM APPROACH TO MANAGEMENT CONTINUAL IMPROVEMENT FACTUAL APPROACH TO DECISION MAKING MUTUALLY BENEFICIAL SUPPLIER RELATIONSHIPS

IMPLEMENTATION PRINCIPLES
MANAGEMENT RESPONSIBILITY RESOURCE MANAGEMENT PRODUCT REALIZATION MEASUREMENT, ANALYSIS AND IMPROVEMENT

More clearly defined requirements

Continual improvement increased emphasis on the role of top management establishment of measurable objectives at relevant functions and levels Monitoring of information of customer satisfaction and/or dissatisfaction as a measurement of the system performance Increased attention to resource availability; determination of training effectiveness Measurement extending to the system, process, and product Analysis of collected data on the performance of the quality management system

Quality is a Journey, not a Destination