Quality Management
Introduction
1
THE ROAD TO QUALITY MANAGEMENT
QM
Strategies for
Effective QC
Changing Work Habits
to do the Right things
Right the First time,
Everytime
QA
Inspection
QC
2
QUALITY!!
3
QUALITY is meeting applicable
requirements at the least cost
(total value) and time within
defined goals and objectives
4
CORPORATE GOALS
& OBJECTIVES
• Total Value
• Time
Resources
(capabilities)
Manpower
System
Knowhow
Requirements
(applicable)
5
CORPORATE GOALS
& OBJECTIVES
Resources
Requirements
6
CORPORATE GOALS
& OBJECTIVES
Rework
Resources
Requirements
7
CORPORATE GOALS
& OBJECTIVES
Resources
Requirements
8
CORPORATE GOALS
& OBJECTIVES
Resources
Gold Plating
Requirements
9
Why should we go for it?
10
THE COST OF QUALITY
POTENTIAL LONG RANGE REDUCTION
Before
After
Deviations
(Primary Costs)
Deviations
(Primary Costs)
Appraisal
Prevention
Appraisal
Prevention
11
BREAKDOWN OF COST OF QUALITY
100
Cost of Quality = 29% of TPC
90
80
70
Material
Costs
(40%)
60
50
40
Labor
Costs
(37%)
30
20
10
0
Engr.
Costs
(23%)
By Account
By Cause
Deviations = N/A
(Consequential)
29%
29%
Materials = 6%
Deviations = 17.5%
(Primary)
Appraisal
= 10.0%
Labor
= 10%
Engr'g
= 13%
Prevention = 1.5%
12
TQM IS NOT MAGIC
13
TQM has excellent tools,
concepts and techniques
that could help my company
improve.
14
I also know that it will take hard
work to benefit from TQM
concepts, tools, and techniques.
15
KEY ISSUES
• Communication
• Cross functional Cooperation
• Team Work
• Mutual understanding and trust
• Customer focus
• Policies and Procedures (Control)
• Empowerment
• Accountability
16
ROOT CAUSE
Misalignment in perceptions/expectations
B/L x
B/L y
B/L z
Other B/L
Proponent
1
ADDED
COST
4
3
3
3
2
17
Power of Alignment
18
Misalignment:
Where Does it Happen !
B/L v
B/L w
B/L x
B/L y
B/L z
19
Improvement Opportunity
B/L w
B/L x
B/L y
B/L z
FUNCTIONAL INTEREST
B/L v
CORPORATE INTEREST
TIME
20
Improved Work Process
B/L w
B/L x
B/L y
B/L z
FUNCTIONAL INTEREST
B/L v
CORPORATE INTEREST
TIME
21
THE JIGSAW PUZZLE APPROACH
22
Challenges
Process Acceptance
• Resistance to Change
• Someone Else’s Idea
• What is in it for me
• Not Believing that we can Change
• Another Fad
• Not Believing in the Process
• Limited Vision
23
Challenges(Contd.)
Process Acceptance
• Being Implemented in One Business Line
• Existing Systems
• Threat to Existing Efforts
• Improvement is Someone Else’s Job
• Problems Denial
24
What Worked for US
• Top Level Commitment
• Customizing the Process to Our Needs
• Using Believers to Convert the Non-Believers
25
It Was Not Forced
26
What Worked for Us
• Top Level Commitment
• Customizing the Process to Us
• Using Believers to Convert the Non-Believers
• The Quality Team were Confident of the Process
• Responsibility is with the Line Management
• Did not Undermine Line Management Efforts
• Quality Team is a Catalyst
27
CONCLUSION
CHANGE
• Status Quo Cannot Continue
• There is room for Improvement
• Improvement has to be Structured & Organized
• Sponsorship has to come from the Top
• Change should be developed by Employees
• Quality Improvement is a Mind Set
28
CHANGE IS IMMINENT
• ENGINEER IT
• PREPARE FOR IT
• RESPOND TO IT
29
OTHERWISE
BE PREPARED TO
PAY FOR IT
30