Total Quality Management
Instructor: Hank Sobah
Quality Basics
Elements of a Quality System
• Quality offers organizations significant
opportunities for improvement, including:
–
–
–
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reduced costs
increased sales
better performance to schedule
more satisfied customers.
• A successful quality system does more than
ensure the quality of products and services; it
drives vigorous operations and leads to a
healthy bottom line.
Elements of a Quality System
Successful quality systems share
basic common elements:
Management, Customer Focus
Design, Purchasing, Production
Education and Training, Statistics
Participative Management, Technology
Quality Cost, Auditing
Ongoing Improvement
Management
A quality system cannot succeed
without the active and continuous
involvement of line and staff managers.
Successful quality systems require a
partnership in responsibility for improving
quality and achieving results.
Everyone shares the responsibility for quality
Customer Focus
Every organization needs to know its
customers. Successful organizations tell
customers what their products are supposed
to do—and then ask them how well the
products performed.
Design
Quality has to be designed into a product or
service. An organization can only do that by
bringing design and development personnel
in on the quality effort along with marketing,
production, and customer support.
Purchasing
Suppliers are partners, not adversaries
in the quality effort.
Smart organizations evaluate a
supplier’s price and quality, and, if
necessary, help them improve their
quality system.
Production
Production equals people working with
processes to produce goods and services.
Employees need training, tools, and clear
work instructions to efficiently produce high
quality designs.
Education and Training
Everyone has an influence on quality—line
workers, middle management, support
staff, and senior executives.
They all benefit from training in the
principles of quality.
Participative Management
Providing skills and training is not enough;
managers must encourage staff to solve
problems independently.
Managers needs to tap into a company’s
most valuable resource, employees, to
boost productivity and cut costs.
Statistics
Decision makers need to know the risks
involved in their decisions.
Successful organizations know statistics
can be the difference between failure and
success in controlling processes and
solving problems.
Technology
Advances in computerization and robotics
promise huge gains in productivity
—
IF automated systems are not producing
products that must be reworked.
Quality Costs
Organizations can spend money on
quality by investing in good quality or
by paying for poor quality.
Successful ones invest in good quality
because they know it costs much less
over the long term.
Auditing
An effective quality audit provides
companies with solid information about
how people, systems, and products are
performing in terms of quality.
Ongoing Improvement
The secret to success in quality is
preventing problems.
To help improve quality and prevent
problems before they occur, quality
teams can be established to bridge
departmental barriers.
Total Quality Management
• A management approach centered on quality
• Based on organization-wide participation
• Aimed at long-term success through customer
satisfaction.
TQM focuses on customers;
• internal – those within the organization, the next party in
the work process
• external - end users, stakeholders, regulatory agencies.
Customer Satisfaction Fluctuates so;
• Continuous Improvement is critical to survival.
• Continuous Improvement applies to processes and the
people who operate them as well as products.
Total Quality Management (2)
The plan-do-check-act (PDCA) cycle is
• Well-known model for continuous process
improvement.
• A four-step process also referred to as the
Shewhart cycle, the Deming cycle (for W.
Edwards Deming), and the PDSA cycle (with
the S standing for “study”).
• A Plan to effect improvement is developed.
1. The plan is carried out, preferably on a small scale.
2. The effects of the plan are observed.
3. Results are studied to determine what was learned
and what can be predicted.
TQM Emphasizes Participation
• Every activity contributes to or detracts from quality and productivity.
Leadership from management and employee involvement are
crucial for success.
• Management’s role in TQM is to develop a quality strategy aligned
with organizational business objectives and based on customer and
stakeholder needs. After that strategy is defined, managers must
participate in its deployment regularly and at every level.
• Employee involvement can take several forms. Typically, quality
improvement requires teams involving employees across functional
boundaries.
• When employees are involved in quality, their organizations are
more likely to make well-informed quality decisions and feel
responsible for those decisions.
• Organizations empower employees by allowing them to make
decisions that improve work processes within defined boundaries.
Process Definition
An activity or group of activities that takes
an input, adds value through the use of
resources, and provides an output to
internal or external customers. The
value added by a process comes in
exchange for the resources it uses,
including people, equipment, material,
money, and time.
Process – Cycle Time
The time it takes to complete a process
from beginning to end. To a large
degree, cycle time is a quality standard
imposed by customers who expect
products and services to be delivered on
demand. Reducing cycle time helps
eliminate costly rework and frees
resources for other processes.
Process - Variation
All processes have variation caused by common
or special causes. Unchecked variation can
result in defects and customer dissatisfaction.
Common causes result in normal process
variation that can be improved only by a
fundamental change in the process. Special (or
assignable) causes are attributed to something
outside the normal process; they result in
abnormal process variation, which must be
eliminated. Before a process can be improved,
any special causes of variation must be
identified and eliminated.
Process Management
The collection of practices used to
implement and improve quality
management and process effectiveness
across an organization. It focuses on the
overall effectiveness of cross-functional
processes rather than the outputs of
individual functions. Process management
treats the organization as a group of
interrelated processes that ultimately
affect quality
Quality Deployment
Quality Culture:
For an organization to make long-lasting
changes, a culture change must also take
place. A quality culture exhibits four
characteristics:
Leadership
Quality Management
Organizational Learning
Ethics
Leadership
Executives and managers must
demonstrate a personal commitment to
quality. Lukewarm support from top
management can be the kiss of death
for a quality program.
Quality Management
Practices must reduce barriers to change,
such as traditional thinking, reliance on fire
fighting, and policies that impede
communication and learning and rob
people of pride in their work. Quality
management must promote decision
making and problem solving that is driven
by customer, date, and proven cause-andeffect relationships.
Organizational Learning
Quality principles must be translated into
corporate policies and practices that
spread new quality ideas across
organizational boundaries.
Code of Ethics
A firm code of ethics specifies
generally accepted standards of
professional conduct useful to the
organization and its customers.
TQM Requires Clear Strategy
• A good quality strategy is integrated with an
organization’s overall business strategy and
should include;
– a vision statement (where an organization wants to go),
– mission statement (where the organization is),
– goals (endpoints or conditions the organization works
toward to close the gap between vision and mission),
– and objectives (expectations stated in quantitative
terms to help achieve goals).
Quality Plan
• A quality plan outlines how an organization
will meet its goals and objectives.
• Simply, a quality plan should answer three
questions:
– What specific quality work needs to be done?
– How is it to be done?
– What are the outputs?
Quality Planning
The planning process often begins with a
quality assessment, identifying:
– Business practices
– Attitudes
– Activities that are enhancing or inhibiting
quality improvement.
Quality Planning Tools
Tools and techniques that can be used
include;
– Self-evaluation
– Organizational assessment
– Customer surveys
– Benchmarking.
The Quality Function
Is defined as the entire collection of
activities through which an organization
achieves fitness for use.
It is supported by systems thinking, the
belief that an organization is an
interrelated system that cannot be
divided into independent parts.
DEFINITIONS
(from ASQ Quality Digest Readers)
• Quality itself has been defined as
fundamentally relational:
– 'Quality is the ongoing process of building and
sustaining relationships by assessing,
anticipating, and fulfilling stated and implied
needs.‘
• Even other quality definitions that aren’t
explicitly relational are implicitly relational.
DEFINITIONS
(from ASQ Quality Digest Readers)
• Why do we try to do the right thing right, on time,
every time? To build and sustain relationships.
• Why do we seek zero defects and conformance
to requirements (or their modern counterpart, six
sigma)? To build and sustain relationships.
• Why do we seek to structure features or
characteristics of a product or service that bear
on their ability to satisfy stated and implied
needs? (ANSI/ASQC.) To build and sustain
relationships.
DEFINITIONS
(from ASQ Quality Digest Readers)
The focus of continuous improvement is the
building and sustaining of relationships. It
would be difficult to find a definition of
quality that did not have a fundamental
express or implied focus on building and
sustaining relationships.
•
--from Winder, Richard E. and Judd, Daniel K., 1996, ORGANIZATIONAL
ORIENTEERING
DEFINITIONS
(from ASQ Quality Digest Readers)
• Quality is the customers' perception of the value
of the suppliers' work output.
• The word "Quality" represents the properties of
products and/or services that are valued by the
consumer.
• Quality is a momentary perception that occurs
when something in our environment interacts
with us, in the pre-intellectual awareness that
comes before rational thought takes over and
begins establishing order. Judgment of the
resulting order is then reported as good or bad
quality value.
DEFINITIONS
(from ASQ Quality Digest Readers)
• There are two definitive types of "quality".
– Quality of design
– Quality of the process
• Whether you are in discrete manufacturing,
process manufacturing or a service related
industry you have design issues of usability,
comfort, and tolerance of durability beyond
prescribed use and identity of "status" of design
quality.
• The ability to live up to the "quality of design" is
maintained by the "quality of the process"
DEFINITIONS
(from ASQ Quality Digest Readers)
• My definition of Quality is: "Reducing the
variation around the target".
• All your actions aimed at the translation,
transformation and realization of customer
expectations , converting them to
requirements,
• Quality is doing the right things right and is
uniquely defined by each individual.
DEFINITIONS
(from ASQ Quality Digest Readers)
• The degree to which something meets or exceeds
the expectations of its consumers.
• "Conformance to *Valid* Requirements"
• Quality is meeting the customer's needs in a way
that exceeds the customer's expectations.
• "Quality is nothing more or less than the perception
the customer has of you, your products, and your
services"!
• Definition of Quality: "WOW"
DEFINITIONS
(from ASQ Quality Digest Readers)
Definition depends on the purpose and for whom
you are talking:
• If you talk for your customers, then it is what ever
he says it is, what he expect from the product or
service.
• If you talk to your company, to your people, then I
follow the Kano Model. There are three parts of
Quality:
1. The Basic Q. What absolutely must be. w/o the
customers is dissatisfied.
2. The Customer expected Q. achieve all and the customer
is satisfied. I.e Six Sigma helps to do that.
3. The exciting Q. The customer does not know it exists,
yet it is possible. This becomes tomorrow's expectation.
DEFINITIONS
(from ASQ Quality Digest Readers)
• Quality is the extent to which products, services,
processes, and relationships are free from
defects, constraints, and items which do not add
value for customers."
• A Strategic, Systems Approach to Continuous
Improvement,
• Clean, precise and flawless
• A perceived degree of excellence with a
minimum usually set forth by the customer.
DEFINITIONS
(from ASQ Quality Digest Readers)
• Quality is a perceived degree of
excellence with a minimum usually set
forth by the customer.
• When the customer returns and the
product doesn't.
• When something is what you expect it to
be then it is perceived as quality.
• Thus, quality is a fulfillment of expectation.
DEFINITIONS
(from ASQ Quality Digest Readers)
•
There are two forms of quality, and therefore two
definitions and two forms of measurement.
1. OBJECTIVE quality is the degree of compliance of a
process or its outcome with a predetermined set of
criteria, which are presumed essential to the ultimate
value it provides. Example: proper formulation of a
medication.
2. SUBJECTIVE quality is the level of perceived value
reported by the person who benefits from a process or
its outcome. It may subsume various intermediate
quality measures, both objective and subjective.
Example: pain relief provided by a medication
DEFINITIONS
(from ASQ Quality Digest Readers)
• Satisfy or exceed customer expectations at the
minimum possible cost
• Quality is to reach the costumer needs at low
rates (costs) to the company and achieving
employee satisfaction.
• Quality is an ever evolving perception by the
customer of the value provided by a product.
• It is not a static perception that never changes
but a fluid process that changes as a product
matures (innovation) and other alternatives
(competition) are made available as a basis of
comparison.
DEFINITIONS
(from ASQ Quality Digest Readers)
• "Variation is the enemy of Quality
• "Uniformity is the enemy of Knowledge".
• Quality means best for certain
conditions...(a) the actual use and (b) the
selling price. (Feigenbaum, 1983)
• Quality, It's a Way of Life.
• Quality Is Our Most Important Product.
• Quality is a degree of excellence...
(Webster)