QUALITY MANAGEMENT & RISK
MANAGEMENT
TOTAL QUALITY MANAGEMENT
A philosophy that involves everyone in an organization in
a continual effort to improve quality and achieve
customer satisfaction.
T
Q
M
• Continuous improving
• Involvement of everyone
• Customer satisfaction
QUALITY ?
INTRODUCTION
THE TQM APPROACH:
 Find out what the customer wants
 Design a product or service that meets or exceeds
customer wants
 Design processes that facilitates doing the job right the
first time
 Keep track of results
 Extend these concepts to suppliers
HOW TO EVALUATE
CUSTOMER SATISFACTION ?
INTRODUCTION
STAGES OF APPLYING THE
PHILOSOPHY OF TQM
1.The senior management and concerned departments
adopting the TQM philosophy
2.Preparing the current system for TQM philosophy.
3.A preparation and planning for the application of TQM
4.Applying TQM plans, methods and systems
5.The maintaining and improving the performance of the
TQM philosophy
INTRODUCTION
10 STEPS TO IMPLEMENT TQM :
1. TQM Feasibility Study
2. TQM Team Building & Training
3. Target Definition & Decision Making
4. System Selection & Information Analysis
5. TQM Master Plan
6. TQM Team Building & Training
7. TQM Action Plans
8. TQM Tools Selection & Implementation
9. System Performance Evaluation
10.Corrective Actions & Continuous Improvement
THE ELEMENTS OF TQM
1.Customer-focused: The customer ultimately determines the level
of quality.
2. Total employee involvement: All employees participate in
working toward common goals.
3. Process-centered: A fundamental part of TQM is a focus on
process thinking.
4. Integrated system: Although an organization may consist of
vertically structured departments, it is the horizontal processes
interconnecting these functions that are the focus of TQM.
THE ELEMENTS OF TQM
5. Strategic and systematic approach: A critical part of the
management of quality is the strategic and systematic
approach to achieving an organization’s vision, mission, and
goals.
6. Continual improvement: A large aspect of TQM is continual
process improvement.
7. Fact-based decision making: In order to know how well an
organization is performing, data on performance measures are
necessary.
TQM BENEFITS AND ADVANTAGES
1. Strengthened competitive position
2. Adaptability to changing or emerging market conditions
3. Higher productivity
4. Enhanced market image
5. Elimination of defects and waste
6. Reduced costs and better cost management
7. Higher profitability
TQM BENEFITS AND ADVANTAGES
8. Improved customer focus and satisfaction
9. Increased customer loyalty and retention
10. Increased job security
11. Improved employee morale
12. Enhanced shareholder and stakeholder value.
13. Improved and innovative processes
SIX SIGMA
• A The term sigma refers to standard deviation (σ) or variance
(σ2) and is a measure of the dispersion of a set of data around
the mean (𝑋̅) of this data
• These are the parameters of the normal distribution.
• It is often assumed that the process mean was centered at
nominal.
• SS focuses on customer satisfaction, eliminate sources of
variation, improve the performance of processes, and improve
productivity.
SIX SIGMA
• Before the 1970s, the industry standards were based
on ±3σ and percent (%) defect.
• Now, as population grows and industrial volume
due to global economy becomes mass production.
• The ±6σ and 3.4 defect per million are today’s
standard for ultimate customer satisfaction and
maximum profitability.
SIX SIGMA
SIX SIGMA
• Six Sigma culture is customer-centric; its goal is to delight
customers.
• The quality of a product or service is measured from the
customer’s perspective, by its contribution to their success.
• This customer focus comes through the Six Sigma drivers:
• Voice of the Customer(VOC): What the customer says that they
want
• Critical to Quality (CTQ): Requirements that are most important to
customers
SIX SIGMA
• Motorola engineering scientist William Smith, known as
the father of Six Sigma, developed the concept in the
1980s.
• For many years, he and other pioneering engineers and
scientists worked on this or similar concepts to reduce
variation, improve quality, and maximize productivity,
including: Walter A. Shewhart, W. Edwards Deming,
Philip R. Crosby, Shiego, Taiichi Ohno, and Joseph Juran.
• Each one studied quality from a different angle
SIX SIGMA
SIX SIGMA
SIX SIGMA
SIX SIGMA
SIX SIGMA
SIX SIGMA
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SIX SIGMA
Implementation of six sigma
The strength of Six Sigma can be found in many things, the
most important are:
1. Six Sigma contributes to the trading results, according to
six sigma, quality is not a goal in itself, but it is a means
to an end.
2. Focus on the customer is important: meeting the customer
demand and enhancing the customer satisfaction.
3. Six Sigma provides a powerful base for quality
improvement by training employees. In this way, they can
measure the processes themselves.
Implementation of six sigma
SIX SIGMA DMAIC METHODOLOGY
• The strength of Six Sigma can be found in DMAIC is a systematic
six-sigma project management practice inspired by Deming's
PDCA (Plan, Do, Check, and Act) Cycle.
• The process consists of the five phases called Define, Measure,
Analyze, Improve, and Control.
• The define phase concentrates on forming the team, defining the
project's goals, mapping the process, identifying customers, and
identifying the high impact characteristics or the CTQs (Critical to
Quality).
SIX SIGMA DMAIC METHODOLOGY
LEAN SIX SIGMA:
TOOLS & TECHNIQUES