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
Salvage, sorting, grading, blending, corrective
actions, identify sources of non-conformance
Quality
Control
Develop quality manual, process performance
data, self-inspection, product testing, basic
quality planning, use of basic statistics,
paperwork control.
Quality
Assurance
Quality systems development, advanced quality
planning, comprehensive quality manuals, use of
quality costs, involvement of non-production
operations, failure mode and effects analysis, SPC.
TQM
Policy deployment, involve supplier & customers,
involve all operations, process management,
performance measurement, teamwork, employee
involvement.
W. E. Deming and the 6 Era’s of Quality
1920’s
: New statistical thinking and methods in
manufacturing
1930/40’s : Use of statistical thinking outside
manufacturing
1950/60’s : Systems of improvement
1970/80’s : The fourteen points
Late 80’s : The “New Climate”
1990’s : System of Profound Knowledge
Deming’s view of a production as a system
Receipt & test of
materials
Suppliers,
materials &
equipment
Production,
assembly,
inspection
Design &
redesign
Distribution
Test of processes, machines,
methods, cost
Consumer
Research
Consumers
Deming’s 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
Plan a change to the process. Predict the
effect this change will have and plan how
the effects will be measured
ACT
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 Deming’s 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 Deming’s 14 Points
5) Find problems. It is management’s 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 Deming’s 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.
12) Remove barriers that stand between the hourly
worker and his right to pride of workmanship.
W. Edwards Deming’s 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.
Deming’s System of Profound Knowledge
Appreciation for
system
Theory about
knowledge
Knowledge
about variation
Knowledge of
psychology
Philip Crosby’s Four Absolutes
What is Quality?
Definition : Conformance to
requirements
What system is needed
to cause quality?
System of quality is
prevention
What performance
standard should be used?
Performance Standard :
Zero Defects
What measurement
system is required?
Measurement : Price of nonconformance (PON)
Crosby’s 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. Crosby’s 14 Points
1) Make it clear that management is committed to
quality.
2) Form quality improvement teams with
representatives from each department.
3) Determine where current and potential quality
problems lie.
4) Evaluate the cost of quality and explain its use as a
management tool.
Philip B. Crosby’s 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.
8) Train supervisors to actively carry out their part of
the quality improvement programme.
Philip B. Crosby’s 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.
12) Recognise and appreciate those who participate.
Philip B. Crosby’s 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. Juran’s 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
Quality
Prove the process can Improvement
produce under
operating conditions
Transfer process to
operation
Seek to optimise the
process via tools of
diagnosis
Juran’s Trilogy Diagram
Quality Planning
Quality control (during operations)
40
Cost of
Poor
Quality
Quality
improve
-ment
20
Original zone of
quality control
0
TIME
0
Lessons learned
New zone
of quality
control
Juran’s Quality Planning Road Map
1) Identify who are the customers
2) Determine the customer’s 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 customer’s.
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’s 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. Juran’s 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.
Result Focus
Actions not just
words
(implementation)
Management
by Fact
Passion to deliver
customer value /
excellence
Process
Management
Concern for
employee
involvement and
development
Organisation
response
ability
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
Management Led
Company Wide
Everyone is responsible for Quality
Philosophy
Prevention not Detection
Standard
Right First Time
Control
Cost of Quality
Theme
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
Stock Growth (Oct 94)
Motorola
373.0%
Westinghouse (CNFD)
- 49.6%
Xerox (BPS)
75.9%
General Motors
1.6%
Federal Express
10.6%
IBM (IBM Rochester)
- 34.9%
Selectron
526.9%
AT&T (UCS)
32.2%
AT&T (TSBU)
32.2%
Texas Instruments (DS&E)
106.8%
Zyta
8.4%
Eastman Chemical
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
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TOTAL QUALITY MANAGEMENT: TQM Origins