Total Quality Management

Agenda
 Quality, Evolution of quality management & gurus
 TQM
● What, Why
● Concepts – Cost of quality, QFD, Benchmarking, Concurrent
Engineering
● Tools – 7 quality tools, 7 management tools
● Team issues
● Case: Punjab Tractors
● Benefits of TQM, Sins of TQM
● Other quality initiatives
● Future of TQM
What is Quality?
❧ Is a product’s or service’s ability to satisfy the
needs and expectations of the customer

❧ Quality is “fitness for use” - Joseph Juran

❧ Quality is “conformance to requirements” - Philip

Crosby
Quality Gurus
❧ Edward Deming
● Deming’s 14 points
● Constantly improve people, processes and products and services
● Focus on long term needs than short term profits
● Abolish MBO and Performance Appraisal
❧ Philip Crosby
● Conformance and non-conformance rather than low or high
quality
● Zero defect program - do it right, first time, every time.
● Cost of quality < 2.5% of sales, reduce through prevention
● Quality policy statement
 Joseph Juran
● Quality planning, quality control, quality improvement – Juran
Trilogy
Quality Gurus…
• William Conway
3 categories of waste – time, material, capital
●

• Kaoru Ishikawa
Quality Circles (QC), Ishikawa Diagram (Fishbone Diagram)

• Walter A. Shewart
Concepts of SQC
Germ Theory of Management- elimination of the virus of variability.

• Genichi Taguchi
Design of Experiments
 Evolution of Quality Management
Salvage, sorting, grading, blending, corrective actions,
Inspection
identify sources of non-conformance

Develop quality manual, process performance data, self-

Quality inspection, product testing, basic quality planning, use of
Control basic statistics, paperwork control.

Quality systems development, advanced quality planning,

Quality comprehensive quality manuals, use of quality costs,
Assurance involvement of non-production operations, failure mode and
effects analysis, SPC.

Policy deployment, involve supplier & customers, involve all

TQM operations, process management, performance measurement,
teamwork, employee involvement.
 What is TQM?
Concern for
Constant drive for Management employee
continuous by fact involvement and
improvement and
development
learning.

Passion to
Organisation
Results Focus deliver customer response ability
value

Actions not just Partnership

words Process perspective
(implementation) Management (internal/external)
Why TQM?
❧ So that the whole organisation works towards
world-class standards.
❧ Addresses issues ranging from management of
quality at the suppliers' end to the way the finished
products are delivered to the customers.
❧ Does not focus on the measurement of results; it
focuses on the management of the processes and
the measures used.
❧ In recent times, even the process of business
strategy is included in TQM.
Institutionalization of TQM

 Top management is vital to the success of TQM

implementation.
 Personal leadership and example is very important;
managers need to apply TQM in their daily work and get
the people to think about and use the concepts and tools.
 TQM must

be built into systems processes that involve planning and rewards.

become an invisible part of the ongoing belief system of the
organization.

be preceded by a cultural change
 Cost of Quality
Cost of Quality

Cost of Cost of Cost of lost

Conformance Non-Conformance Opportunities
Cancellation of Orders

Cost of Cost of Cost of Cost of Cost of

Prevention Appraisal Internal External Exceeding
Training, Inspection, Failure Failure Requirements
QC, QA Checking, Scrap, Warranty, Redundant
Audits Rework Installation, Documenting
Service Costs
 Total Cost of Quality

Cost of Lost Opportunities

Prevention Costs Cost of Exceeding Requirements

Appraisal Cost
Cost

Prevention Cost

Time
TQM Concepts
 Quality Function Deployment
Links customer needs with design, development, engineering,
manufacturing and services.
Major TQM tool which is system and process oriented.
Achieve and display the results in the common matrix
diagram presenting one set of ideas against those of another,
thereby evaluating their relationships.
Quality systems thinking + Knowledge Understanding & satisfying Customer
requirements

QFD

Maximizing positive Quality that adds value

Relative Importance Correlation
Matrix
Design Customer
Customer Requirements How Rating
Requirements
C A
O S
M S
P E
E S
What Relationship Matrix T S
I M
T E
I N
V T
E S
Objective
Target Values How much
Competitive
Benchmark
Competitive Assessment
Technical Absolute
Importance Relative Action Ranking
Benchmarking
 Comparison process to continuously identify the best
business practices anywhere and adopt them to the
organization.
 Valuable TQM tool which accomplishes objectives of
customer satisfaction and continuous improvement.
 Motivates an organization & fosters a new in-depth
understanding about the functioning of the organization.
 Reduces cycle time as small or big tasks get done faster.
 Constantly redefines standards which must be achieved to
remain competitive.
 Increases productivity.
 Deming Wheel applied to benchmarking
•Management commitment
• Implement •Resource commitment
improvement •Develop plan
• Convert goals to
action plans
IMPLEMENT PLAN

• Convert gap to •Develop process

targets and measure
operational goals INTEGRATE ANALYZE •Measure
•Data identification
•Target Companies
•Site visits
•Gather Data
Concurrent Engineering
 Process in which appropriate disciplines are committed to
work interactively to conceive, approve, develop and
implement product programs that meet pre-determined
objectives .
 Re-unites technical and non technical disciplines such as
engineering, marketing and accounting, focusing on
satisfying the customer, the representatives work together
in defining the product to be manufactured.
 CE team must be backed by fundamental training on TQM.
 One of the prime motivations for a concurrent engineering
approach to product development is a desire to shorten the
total time that it takes to bring a product to the
marketplace.
Concurrent Engineering…
Some Quality Tools of TQM

❧ Flow Charts
❧ Run Charts
❧ Histograms
❧ Control Charts (Statistical Process Control)

❧ Brainstorming and related tools

❧ Fishbone Diagram
❧ Pareto Chart
Flow Charts
Run Charts
13

12

11

10

0 2 4 6 8 10 12 14
Control Charts
M
Upper Control Limit (UCL)
E
A
S
U
R
E
M
E
N
T

Lower Control Limit (LCL)

TIME
Cause & Effect Diagrams…
 Pareto Charts

100
Cumulative %
80

% of 60 56
faults

40

20 18
10 8 7
1
0

Causes
Team Roles and Responsibilities
Mission of TQM process improvement
teams
❧ Defining the process in detail
❧ Eliminating unnecessary activities
❧ Developing measures of performance
❧ Establishing performance baselines
❧ Setting improvement goals and changing the
processes to meet them
TQM Teams
❧ Composition of team
❧ Core members should represent key process activities
❧ Sometimes include process supplier and process customer
❧ Team Training
❧ Just in Time Training - learning is immediately reinforced through
application
❧ 7 QC tools, 7 Management tools, Benchmarking, Quality Function
Deployment, Concurrent Engineering
❧ Central productivity or TQM departments for communications,
facilitation and training; key middle managers trained.
TQM and Six Sigma…

 Both work best with strong internal sponsorship from

senior management.
 Cultural change in the adopting organisation is a positive
by-product of both methodologies.
 Both use statistical methods for measurement and control.
They rely on data - not opinion - to justify change.
 Both value the people working within systems, who
ultimately drive quality. Both establish the customer
(whether internal or external) as the final arbiter of quality.
 Problem prevention, not mere detection, is the aim for both
TQM and Six Sigma.
References

❧ T.J. Cartin, Principles & Practices of TQM