Module - 1 Principles and Practice: Definition, basic approach, gurus of TQM, TQM Framework, awareness, defining quality, historical review, obstacles, benefits of TQM. Quality Management Systems: Introduction, benefits of ISO registration, ISO 9000 series of standards, ISO 9001 requirements. Total quality management (TQM) is an integrated organizational effort designed to improve quality at every level. Total – Whole, entire, complete Quality – Excellence, class, meeting expectation Management – organizing, administering, art of getting things done Common definitions of quality. •Conformance to specifications Measures how well the product or service meets the targets and tolerances determined by its designers. •Fitness for use Focuses on how well the product performs its intended function or use. • Value for price paid Basic Approach of TQM •A Committed and involved management to provide long term top-to-bottom organizational support. • An Unwavering focuses on the customer, both internally & externally. • Effective involvement & utilization of the entire work force. • Continuous improvement of the business and production process. • Treating suppliers & Vendors as partners. • Establishing the performance measures Gurus of TQM Quality Gurus Individuals who have been identified as making a significant contribution to improving the quality of goods and services. • Walter A. Shewhart • W. Edwards Deming • Joseph M. Juran • Armand V.Feigenbaum • Philip B.Crosby • Genichi Taguchi • Kaoru Ishikawa • Walter A. Shewhart – Statistician at Bell Laboratories • Developed statistical control process methods to distinguish between random and nonrandom variation in industrial processes to keep processes under control. • Developed the “plan-do-check-act” (PDCA) cycle that emphasizes the need for continuous improvement. • Strongly influenced Deming and Juran. Shewhart’s Plan-Do-Check-Act (PDCA) Cycle • W. Edwards Deming – Advocated Statistical Process Control (SPC) • Methods which signal shifts in a process that will likely lead to products and/or services not meeting customer requirements. • Emphasized an overall organizational approach to managing quality. • Demonstrated that quality products are less costly than poor quality products. • Identified 14 points critical for improving quality. – The Deming Prize • Highest award for industrial excellence in Japan. Deming’s 14-Point Program for Improving Quality 1. Create constancy of purpose for improvement of product and service. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Adopt the new philosophy. Cease dependence on mass inspection. End the practice of awarding business on the price tag alone. Improve constantly and forever the system of production and training. Institute training. Institute leadership. Drive out fear. Break down barriers between staff areas. Eliminate slogans, exhortations, and targets for the workforce. Eliminate numerical quotas. Remove barriers to pride in workmanship. Institute a vigorous program of education and retraining. Take action to accomplish the program. • Joseph M. Juran – Emphasized the importance of producing quality products through an approach focused on quality planning, control, and improvement. – Defined product quality as “fitness for use” as viewed by the customer in: • Quality of design • Quality of conformance • Availability • Safety • Field use – Categorized the cost of quality as: • Cost of prevention • Cost of detection/appraisal • Cost of failure • Armand Feigenbaum – Proposed the concept of “total quality control,” making quality everyone’s responsibility. • Stressed interdepartmental communication. • Emphasized careful measurement and report of quality costs • Philip Crosby – Preached that “quality is free.” – Believed that an organization can reduce overall costs by improving the overall quality of its processes. • Genichi Taguchi – Emphasized the minimization of variation. • Concerned with the cost of quality to society. • Extended Juran’s concept of external failure. • Kaoru Ishikawa – Developed problem-solving tools such as the cause-and-effect (fishbone) diagram. – Called the father of quality circles. TQM Framework begins with the knowledge provided by the gurus of quality: Shewhart, Deming, Juran, Feigenbaum, Ishikawa, Crosby and Taguchi. As the figure shows they contributed to the development of principles and practices , the tools and techniques are used in the product/service realization activity. Feedback from internal/external customer provides information to continuously improve the organization system. Awareness An organization will not begin the transformation to TQM until it is aware that the quality of the product or service must be improved. Awareness comes about when an organization losses mark share or realizes that quality . Management realizes that TQM is a better way to run a business and complete in domestic and world markets. The Japanese learned this fact from practical experience . Quality and productivity are not mutually exclusive. Improvement in quality can lead directly to increase productivity and other benefits. Quality improvement is not limited to the conformance of the product or service to specifications. Quality – When a product or service meets or exceeds expectation considering the intended use and the selling price. Q=P/E Quality = performance / expectation Definition by ISO 9000:2000 It if defined as the degree to which a set of inherent characteristics fulfils requirement. Where, Degree – good, excellent, bad Inherent – existing, within, natural Requirement – need or expectation Dimensions of Quality 1. Performance - Fulfillment of primary requirement 2. Features - Additional things that enhance performance 3. Conformance - Meeting specific standards set by the industry 4. Reliability - Consistence performance over a period of time 5. Durability - Long life and less maintenance 6. Service - Ease of repair, guarantee, and warranty 7. Response - Dealer customer relationship, human interface 8. Aesthetics - exteriors, packages 9. Reputation - Past performance, ranking, branding Before 1988 – Performance, Prize and service After 1989 – Performance, service and prize •Performance – availability (ready for use), reliability (free from failure), maintainability •Features – psychological and technical. Added feature along with main usage •Service – intangible, made up of many small things •Warranty – Vs guarantee. Customer feels comfortable with this •Price – value for money, ready to pay at the same time comparative study to be done •Reputation – Branding merges with quality. Good experience reaches 6 bad reaches 15 Historical Review of TQM Industrialization led to mass production in which it led to the concept of one product at a time to the assembly line of production. Though workmanship was affected but mass production led to more job and reduction in cost of the product and increase in quality, reduction of defects etc. It started during the middle ages. Industrial revolution saw the development of specialization of labour. Eli Whitney introduced the concept of interchangeable parts. 1924 –W.A. Shewart of Bell Telephone statistical chart for the control of various. Concept of sample tests was followed. It was a failure in the initial stages. 1946 – ASQC American Society for Quality Control, now ASQ. Frequent meetings, conferences and publications were made to public. 1950 – W.Edwards Demings his guidance and lecture to Japan engineers transformed quality concepts in the organization. His cycle PLAN-DOCHECK-ACT 1954 – Joseph M.Juran Concept of efficient and productive. Juran Trilogy Quality planning – Quality Control – Quality Improvement 1960 – Quality control circles was formed. Zero defects concepts 1970 – Reactive approach to proactive approach. Shift from Japan to USA The world opened their eyes to TQM after 1970’s 1980 – SPC – Statistical Process Control. Concepts of parameter and tolerance. Experiments 1990 – Concepts of certification of ISO, CMM etc 2000 – six sigma concept - Six Sigma stands for Six Standard Deviations (Sigma is the Greek letter used to represent standard deviation in statistics) from mean. Six Sigma methodology provides the techniques and tools to improve the capability and reduce the defects in any process. TQM Basic Concepts •Management Involvement –Participate in quality program, develop quality council, direct participation •Focus on customer – who is the customer – internal and external, voice of the customer, do it right first time and every time. •Involvement and utilization of entire work force – All levels of management •Continuous improvement – Quality never stops, placing orders, bill errors, delivery, minimize wastage and scrap etc. •Treating suppliers as partners – no business exists without suppliers. •Performance measures – creating accountability in all levels Barriers(Obstacles) in TQM Implementation •Lack of commitment from top management – avoiding training for self and employees, meetings •Lack of employee involvement – particularly at managerial level, supportive attitude, trust •Lack of team work – Co-operation and co-ordination within workers. •Lack of customer oriented approach – Know the customer need, demand, taste, shortcomings •Lack of attention to feedback and complaints •Supplier control – in terms of materials, cost, quality, delivery etc •Review quality procedures – up gradation, correct past errors. Learn from experience •Improper planning. •Inability to change organization culture. •Inadequate use of empowerment and teamwork. •Failure to continually improve. •Lack of continuous training and education. •Paying inadequate attention to internal and external customers. Five Pillars of TQM 1. Product 2. Process 3. System 4. People Benefits of TQM Improved Quality. Improved employee participation. Improved teamwork. Improved working relationship. Improved customer satisfaction. Improved employee satisfaction. Increased productivity. Improved profitability. Improved market share. 5. Leadership Benefits of TQM Customer satisfaction oriented benefits: •Improvement in product quality •Improvement in product design •Improvement in production flow •Improvement in employee morale and quality consciousness •Improvement in product service •Improvement in market place acceptance Economic improvement oriented benefits: •Reduction in operating costs •Reduction in operating losses •Reduction in field service costs •Reduction in liability exposure Principles of TQM •Visionary leadership •Customer-driven excellence •Organizational and personal learning •Valuing employees and partners •Agility •Focus on the future •Managing for innovation •Management by fact •Public responsibility •Focus of results and creating values •Systems perspective QUALITY MANAGEMENT SYSTEMS A quality management system is a management technique used to communicate to employees what is required to produce the desired quality of products and services and to influence employee actions to complete tasks according to the quality specifications. A QMS can be defined as: “A set of co-ordinated activities to direct and control an organization in order to continually improve the effectiveness and efficiency of its performance.” Purpose of Quality Management System ✔ Establishes a vision for the employees. ✔ Sets standards for employees. ✔ Builds motivation within the company. ✔ Sets goals for employees. ✔ Helps fight the resistance to change within organizations. ✔ Helps direct the corporate culture. Benefits of QMS A fully documented QMS will ensure that two important requirements are met: • The customers’ requirements – confidence in the ability of the organization to deliver the desired product and service consistently meeting their needs and expectations. • The organization's requirements – both internally and externally, and at an optimum cost with efficient use of the available resources – materials, human, technology and information. Management systems are needed in all areas of activity, whether large or small businesses, manufacturing, Service or public sector. A good QMS will: • Set direction and meet customers’ expectations • Improve process control • Reduce wastage • Lower costs • Increase market share • Facilitate training • Involve staff • Raise morale Fourteen (14) Steps necessary in implementing QMS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Achieve organizational goals. Reduce costly errors. Improve customer satisfaction. Market your business more effectively. Manage growth more effectively. Improve documentation availability. Correct issues to improve products and services. Grow market share in new territories and market sectors. Creates a culture of quality. Embed vision for all projects. Better internal communications. Consistent products. Measure performance of individuals and teams. Improve compliance. Documentation of Quality Management System A quality system is the method used to ensure that the quality level of a product or service is maintained. The system documentation can be viewed as hierarchy containing four tiers, as shown in the following illustrations: All documentation moves from one level to the next in a descending order. If the system is properly structured, changes at one level will seldom affect the level above it, but may affect those below. International Organization for Standardization (ISO) ISO is a worldwide federation of national standards bodies (ISO member bodies). The work of preparing International Standards is carried out through ISO technical committees, in liaison with international organizations, governmental and non-governmental bodies. ISO’s most recent family of standards for quality management a system are currently in their final draft (FDIS) form, and comprises: • ISO-9000:2000 - Quality management systems – Fundamentals and vocabulary • ISO-9001:2000 - Quality management systems – Requirements • ISO-9004:2000 – Guidelines for performance improvement Necessary Steps in implementing ISO History of ISO – Founded in 1947 by a group of delegates from 25 countries, the 67 original technical committees of ISO came together with a unified goal of ensuring products and services are safe, reliable, and of good quality. Post World War II – BS 5750 ISO founded in 1946 Switzerland, Geneva. 1987 - ISO 9000: 1987 - Three models of quality ISO 9001: 1987 – Design Development etc ISO 9002: 1987 – Production, installation, service etc ISO 9003: 1987 – Quality assurance, inspection, testing etc ISO 9000:1994 ISO 9001: 2000 combined the three to one standard. ISO 9000: 2008 latest with technical committee Similar certifications ANSI – American National Standard Institute EC – European Community ASQ 9000 – American Society for Quality DOD – Department of Defense FDA – Food and Drug Administration ISI – Indian Standards Institute BIS Hallmark – Bureau of Indian Standards Benefits of ISO Registration 1. Increase in internal quality – reduction of scrap, rework etc 2. Production reliability – measure of breakdowns, time and shift management etc 3. External quality – acceptance by customers, less claims, return of goods 4. Time performance – marketing, delivery, production time etc 5. Cost of poor quality – scraps and rework ISO standards Developed by the ISO Technical Committee 176, published in 1987 and updated approximately every five years, the standards comprise five documents whose focus is Quality Assurance Systems. These five documents are: a)ISO 9000-Quality Management and Quality Assurance Standards - Guidelines for selection and use b)ISO 9001 - Quality systems - Model for quality assurance in design, production, installation and servicing. This is the most comprehensive standard with 20 clauses. c)ISO 9002 - Quality systems - model for quality assurance in production and installation. This standard has 18 clauses. d)ISO 9003-Quality systems - Model for quality assurance in final inspection and test. Requires conformity with 12 clauses. e) Quality management and quality system elements - Guidelines. Basic Requirements of ISO 9001 1. Procedure to cover all processes in the business 2. Monitoring process to ensure effectiveness 3. Keeping adequate record 4. Defect verification and appropriate correction 5. Regular review of individual processes 6. Facilitating continual improvement.
