The Hashemite University Total Quality Management Eng. MHMD RWSHDH Industrial Engineering Department, Engineering Faculty The Hashemite University What is Quality Quality has been defined in a number of ways. When viewed from a consumer’s perspective, it means meeting or exceeding customer expectations Total quality is an approach to doing business that attempts to maximize an organization’s competitiveness through the continual improvement of the quality of its products, services, people, processes, and environments 2 www.hu.edu.jo What is Quality Quality is “fitness for use” (Joseph Juran) Quality is “conformance to requirements or specifications” (Philip B. Crosby) Quality of a product or services is its ability to satisfy the needs and expectations of the customer The quality of a product or service is the fitness of that product or service for meeting its intended used as required by the customers. (Hence) 3 www.hu.edu.jo Dimensions of Quality 1. 2. 3. 4. 5. 6. 7. 8. Performance Reliability Durability Serviceability Aesthetics Features Perceived Quality Conformance to standards 4 www.hu.edu.jo Performance Will the product perform its intended job? Evaluate software spreadsheet packages. One out perform another with respect to the execution speed 5 www.hu.edu.jo Reliability How often does the product fail? How often does this car require repair? 6 www.hu.edu.jo Durability How long does the product last? The product should perform satisfactorily over a long period of life 7 www.hu.edu.jo Serviceability How easy is it to repair the product? If amazon.com sends the wrong book, how hard is it to get this error corrected? How long did it take a credit card company to correct an error in your bill? 8 www.hu.edu.jo Aesthetics What does the product look like? Do you like the box in which Shoes are packaged? 9 www.hu.edu.jo Features What will the product do beyond the basics? Added features Spreadsheet software package that has built in statistical analysis features 10 www.hu.edu.jo Perceived quality What is the reputation of the company selling this product? Prefer to use a particular airline in which the flight almost always arrive on time and does not lose or damage the luggage 11 www.hu.edu.jo Conformance to standards Is the product made exactly as the designer intended? How well does the hood fit on a new car? 12 www.hu.edu.jo Quality management Quality management: • It is a method for ensuring that all the activities necessary to design, develop and implement a product or service are effective and efficient with respect to the system and its performance. •Quality management can be considered to have three main components: quality control, quality assurance and quality improvement. •Quality management is focused not only on product quality, but also the means to achieve it. Quality management therefore uses quality assurance and control of processes as well as products to achieve more consistent quality. •The International Organization for Standardization (ISO) created the Quality Management System (QMS) standards in 1987. These were the ISO 9000:1987 series of standards comprising ISO 9001:1987, ISO 9002:1987 and ISO 9003:1987; which were applicable in different types of industries, based on the type of activity or process: designing, production or service delivery •The Quality Management System standards created by ISO are meant to certify the processes and the system of an organization and not the product or service itself. ISO 9000 standards do not certify the quality of the product or service 13 www.hu.edu.jo Evolution of Quality Management Inspection Quality Control Quality Assurance TQM Salvage, sorting, grading, blending, corrective actions, identify sources of non-conformance •Quality Control is the ongoing effort to maintain the integrity of a process to maintain the reliability of achieving an outcome •Develop quality manual, process performance data, self-inspection, product testing, basic quality planning, use of basic statistics, paperwork control. • Quality Assurance is the planned or systematic actions necessary to provide enough confidence that a product or service will satisfy the given requirements for quality. • Quality systems development, advanced quality planning, comprehensive quality manuals, use of quality costs, involvement of non-production operations, failure mode and effects analysis, SPC. Policy deployment, involve supplier & customers, involve all operations, process management, performance measurement, teamwork, employee involvement. 14 www.hu.edu.jo History TQM "Total Quality Control" was the key concept of Armand Feigenbaum's 1951 book, Quality Control: Principles, Practice, and Administration, in a chapter titled "Total Quality Control" Feigenbaum grabs on to an idea that sparked many scholars interest in the following decades, that would later be catapulted from Total Quality Control to Total Quality Management. W. Edwards Deming, Joseph Juran, Philip B. Crosby, and Kaoru Ishikawa, known as the big four, also contributed to the body of knowledge now known as Total Quality Management. The American Society for Quality says that the term Total Quality Management was used by the U.S. Naval Air Systems Command "to describe its Japanese-style management approach to quality improvement."[1] This is consistent with the story that the United States Navy began researching the use of statistical process control (SPC); the work of Juran, Crosby, and Ishikawa; and the philosophy of W. Edwards Deming who developed The concept of Total Quality Management (TQM) after World War II for improving the production quality of goods and services. The concept was not taken seriously by Americans until the Japanese, who adopted it in 1950 to resurrect their postwar business and industry, used it to dominate world markets by 1980. Total Quality Management is a management approach that originated in the 1950's and has steadily become more popular since the early 1980's. 15 www.hu.edu.jo History TQM In Japan, TQM comprises four process steps, namely: Kaizen – Focuses on "Continuous Process Improvement", to make processes visible, repeatable and measurable. Atarimae Hinshitsu – The idea that "things will work as they are supposed to" (for example, a pen will write). Kansei – Examining the way the user applies the product leads to improvement in the product itself. Miryokuteki Hinshitsu – The idea that "things should have an aesthetic quality" (for example, a pen will write in a way that is pleasing to the writer). 16 www.hu.edu.jo What is TQM Total - Made up of the whole Quality - degree of excellence a product or service provides Management - Act, art or manner of planning, controlling, directing,…. Therefore, TQM is the art of managing the whole to achieve excellence. There are many definitions of total quality management around. Some define total quality management in a way different to some others.. Total Quality is a description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. The culture requires quality in all aspects of the company's operations, with processes being done right the first time and defects and waste eradicated from operations, process improvement apprach to management TQM involves a knowledge. of the principles and techniques of the behavioral sciences, quantitative and nonquantitative analysis, economics, and system analysis to continuously improve the quality of all activities and relationships TQM is a structuned system for meeting and exceeding customer needs and expectations by creating organization–wide participation in the planning and implementation of breakthrough and continuous improvement process 17 www.hu.edu.jo What does TQM mean? TQM is the system of activities directed at achieving delighled customers, empowered employees, high revenues, and lower costs Total Quality Management, TQM, is a method by which management and employees can become involved in the continuous improvement of the production of goods and services. It is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices. If I am to put all these in a single sentence, I will define total quality management as follows “TQM is a process and a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, engineering, and production, customer service, etc.) to achieve best possible outcomes from the inputs, by using them effectively and efficiently in order to deliver best value for the customer, while achieving long term objectives of the organization”, This involves the continuous improvement of organizational processes, resulting in high quality products and services 18 www.hu.edu.jo Total Quality System Quality System: the collective plans, activities, and events that are provided to ensure that a product, process, or service will satisfy given needs. Generic guidelines for quality system ( ANSI/ASQC Standard Z-1.15 1979) Policy, planning, organization, and administration. Product design assurance, specification development, and control. Control of purchased materials and component parts. Production quality control. User contact and field performance. Corrective action. Employee selection, training, and motivation. Legal requirements - product liability and user safety. Sampling and other statistical techniques 19 www.hu.edu.jo TQM & Activities Total quality management TQM is the foundation for activities, which include: TQM is a customer focused approach Aims at satisfying the customer or delighting them(Meeting customer requirements ) Provides best quality product at lowest possible price It is company wide strategy Involves everyone in the organization (Employee involvement and empowerment) Prevention of defects is the way and the target is zero defects Total quality management is methodical It makes moves based on information Focus on processes (It is a continuous process) / improvement plans Commitment by senior management and all employees Reducing development cycle times Just In Time/Demand Flow Manufacturing Improvement teams Systems to facilitate improvement Recognition and celebration Challenging quantified goals and benchmarking This shows that TQM must be practiced in all activities, by all personnel, in Manufacturing, Marketing, Engineering, R&D, Sales, Purchasing, HR, etc. 20 www.hu.edu.jo Value-based Approach TQM requires that the company maintain this quality standard in all aspects of its business. This requires ensuring that things are done right the first time and that defects and waste are eliminated from operations Quality assurance through statistical methods is a key component in a manufacturing organization, where TQM generally starts by sampling a random selection of the product. The sample can then be tested for things that matter most to the end users. The causes of any failures are isolated, secondary measures of the production process are designed, and then the causes of the failure are corrected. Manufacturing Dimensions Performance Features Reliability Conformance Durability Serviceability Perceived quality Service Dimensions Reliability Responsiveness Assurance Empathy Tangibles 21 www.hu.edu.jo 22 www.hu.edu.jo TQM culture change Quality Element Previous state TQM Definition Product oriented Customer oriented Priorities Second to service and cost First among equals of service and cost Decisions Short term Long term Emphasis Detection Prevention Errors Operations System Responsibilities Quality control Every one Problem solving Managers Teams Procurement Price Life cycle costs, partnership Manager role |Plan, assign, control and enforce Delegate, coach, facilitate and monitor 23 www.hu.edu.jo The Eight Elements Of TQM TQM has been coined to describe a philosophy that makes quality the driving force behind leadership, design, planning, and improvement initiatives. For this, TQM requires the help of those eight key elements. These elements can be divided into four groups according to their function. The groups are: I. Foundation - It includes: Ethics, Integrity and Trust. II. Building Bricks - It includes: Training, Teamwork and Leadership. III. Binding Mortar - It includes: Communication. IV. Roof - It includes: Recognition 24 www.hu.edu.jo The Eight Elements Of TQM 1. 2. 3. 4. 5. 6. 7. 8. To be successful implementing TQM, an organization must concentrate on the eight key elements: Ethics Integrity Trust Training Teamwork Leadership Recognition Communication 25 www.hu.edu.jo The Eight Elements Of TQM I. Foundation TQM is built on a foundation of ethics, integrity and trust. It fosters openness, fairness and sincerity and allows involvement by everyone. This is the key to unlocking the ultimate potential of TQM. These three elements move together, however, each element offers something different to the TQM concept. 1. Ethics – Ethics is the discipline concerned with good and bad in any situation. It is a two-faceted subject represented by organizational and individual ethics. Organizational ethics establish a business code of ethics that outlines guidelines that all employees are to adhere to in the performance of their work. Individual ethics include personal rights or wrongs. 2. Integrity – Integrity implies honesty, morals, values, fairness, and adherence to the facts and sincerity. The characteristic is what customers (internal or external) expect and deserve to receive. People see the opposite of integrity as duplicity. TQM will not work in an atmosphere of duplicity. 26 www.hu.edu.jo The Eight Elements Of TQM Trust – Trust is a by-product of integrity and ethical conduct. Without trust, the framework of TQM cannot be built. Trust fosters full participation of all members. It allows empowerment that encourages pride ownership and it encourages commitment. It allows decision making at appropriate levels in the organization, fosters individual risk-taking for continuous improvement and helps to ensure that measurements focus on improvement of process and are not used to contend people. Trust is essential to ensure customer satisfaction. So, trust builds the cooperative environment essential for TQM. II. Bricks Basing on the strong foundation of trust, ethics and integrity, bricks are placed to reach the roof of recognition. It includes: 4. Training – Training is very important for employees to be highly productive. Supervisors are solely responsible for implementing TQM within their departments, and teaching their employees the philosophies of TQM. Training that employees require are interpersonal skills, the ability to function within teams, problem solving, decision making, job management performance analysis and improvement, business economics and technical skills. During the creation and formation of TQM, employees are trained so that they can become effective employees for the company. www.hu.edu.jo Total Quality Management 27 The Eight Elements Of TQM 5.Teamwork – To become successful in business, teamwork is also a key element of TQM. With the use of teams, the business will receive quicker and better solutions to problems. Teams also provide more permanent improvements in processes and operations. In teams, people feel more comfortable bringing up problems that may occur, and can get help from other workers to find a solution and put into place. There are mainly three types of teams that TQM organizations adopt A. Quality Improvement Teams or Excellence Teams (QITS) - These are temporary teams with the purpose of dealing with specific problems that often re-occur. These teams are set up for period of three to twelve months. B. Problem Solving Teams (PSTs) - These are temporary teams to solve certain problems and also to identify and overcome causes of problems. They generally last from one week to three months. C. Natural Work Teams (NWTs) - These teams consist of small groups of skilled workers who share tasks and responsibilities. These teams use concepts such as employee involvement teams, self-managing teams and quality circles. These teams generally work for one to two hours a week. 28 www.hu.edu.jo The Eight Elements Of TQM 6. Leadership – It is possibly the most important element in TQM. It appears everywhere in organization. Leadership in TQM requires the manager to provide an inspiring vision, make strategic directions that are understood by all and to instill values that guide subordinates. For TQM to be successful in the business, the supervisor must be committed in leading his employees. A supervisor must understand TQM, believe in it and then demonstrate their belief and commitment through their daily practices of TQM. The supervisor makes sure that strategies, philosophies, values and goals are transmitted down through out the organization to provide focus, clarity and direction. A key point is that TQM has to be introduced and led by top management. Commitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent with the objectives of the company and in creating and deploying well defined systems, methods and performance measures for achieving those goals. 29 www.hu.edu.jo The Eight Elements Of TQM III. Binding Mortar -- 7. Communication – It binds everything together. Starting from foundation to roof of the TQM house, everything is bound by strong mortar of communication. It acts as a vital link between all elements of TQM. Communication means a common understanding of ideas between the sender and the receiver. The success of TQM demands communication with and among all the organization members, suppliers and customers. Supervisors must keep open airways where employees can send and receive information about the TQM process. Communication coupled with the sharing of correct information is vital. For communication to be credible the message must be clear and receiver must interpret in the way the sender intended. There are different ways of communication such as: 1. Downward communication - This is the dominant form of communication in an organization. Presentations and discussions basically do it. By this the supervisors are able to make the employees clear about TQM. 2. Upward communication - By this the lower level of employees are able to provide suggestions to upper management of the affects of TQM. As employees provide insight and constructive criticism, supervisors must listen effectively to correct the situation that comes about through the use of TQM. This forms a level of trust between supervisors and employees. This is also similar to empowering communication, where supervisors keep open ears and listen to others. 3. Sideways communication - This type of communication is important because it breaks down barriers between departments. It also allows dealing with customers and suppliers in a more professional manner. 30 www.hu.edu.jo The Eight Elements Of TQM IV. Roof -- 8. Recognition – Recognition is the last and final element in the entire system. It should be provided for both suggestions and achievements for teams as well as individuals. Employees strive to receive recognition for themselves and their teams. Detecting and recognizing contributors is the most important job of a supervisor. As people are recognized, there can be huge changes in self-esteem, productivity, quality and the amount of effort exhorted to the task at hand. Recognition comes in its best form when it is immediately following an action that an employee has performed. Recognition comes in different ways, places and time such as, · Ways - It can be by way of personal letter from top management. Also by award banquets, plaques, trophies etc. · Places - Good performers can be recognized in front of departments, on performance boards and also in front of top management. · Time - Recognition can given at any time like in staff meeting, annual award banquets, etc. those goals. 31 www.hu.edu.jo The TQM System Continuous Improvement Objective Principles Elements Customer Focus Process Improvement Total Involvement Leadership Education and Training Supportive structure Communications Reward and recognition Measurement 32 www.hu.edu.jo What’s the goal of TQM? “Do the right things right the first time, every time.” 33 www.hu.edu.jo Another way to put it At it’s simplest, TQM is all managers leading and facilitating all contributors in everyone’s two main objectives: (1) Total client satisfaction through quality products and services; and (2) Continuous improvements to processes, systems, people, suppliers, partners, products, and services. 34 www.hu.edu.jo LEARNING AND TQM Learning Process Improvement Quality Improvement Customer Satisfaction Shareholder Satisfaction Employee Satisfaction 35 www.hu.edu.jo Productivity and TQM Traditional view: Quality cannot be improved without significant losses in productivity. TQM view: Improved quality leads to improved productivity. 36 www.hu.edu.jo lean manufacturing and TQM It is a well known fact that TQM movements and lean manufacturing had a close relationship. In fact in some cases we can not differentiate between lean manufacturing and TQM techniques. Understanding Total Quality Management is therefore very important in the attempt of understanding lean manufacturing 37 www.hu.edu.jo Six Sigma vs. TQM TQM Pitfall Lack of Integration 6σ Solution Links the business and personal “bottom line” Leadership Apathy Leadership at the Vanguard A Fuzzy Concept A consistently repeated, simple message 38 www.hu.edu.jo Six Sigma vs. TQM TQM Pitfall An unclear goal Failure to breakdown internal barriers 6σ Solution Setting no-nonsense, Ambitious goal Priority on Cross Functional Process Management 39 www.hu.edu.jo Six Sigma vs. TQM TQM Pitfall 6σ Solution Incremental vs. Exponential Change Incremental Exponential change Focus on Product Quality Attention to all business process 40 www.hu.edu.jo Principles of TQM & Basic Tenets (Doctrine ) of TQM The key principles of TQM are as following: Management Commitment Top Management must provide leadership and support for all quality initiatives Plan (drive, direct) Do (deploy, support, participate) Check (review) Act (recognize, communicate, revise) Employee Empowerment Involve every employee Training Suggestion scheme Measurement and recognition Excellence teams (Team Work) Involves librarians, aides, volunteers, etc. Anyone within immediate organization The collective IQ is greater than the singular IQ www.hu.edu.jo 41 Principles of TQM & Basic Tenets (Doctrine ) of TQM Fact Based Decision Making (Data Based or Data Enhanced Decision Making) Quality management, planning, and statistical tools assist in creating data. TQM looks at assessment as a means of identifying areas for improvement. The gap between current level and desirable level is measured in order to close the gap, not to blame someone for the existence of the gap Improving quality requires the establishment of effective metrics. We must speak with data and facts not just opinions Measure quality so you can affect it Focus on a moving customer SPC (statistical process control) DOE, FMEA The 7 statistical tools TOPS (FORD 8D - Team Oriented Problem Solving) 42 www.hu.edu.jo Principles of TQM & Basic Tenets (Doctrine ) of TQM Continuous Improvement TQM is mainly concerned with continuous improvement in all work, from high level strategic planning and decision-making, to detailed execution of work elements on the shop floor. It stems from the belief that mistakes can be avoided and defects can be prevented. It leads to continuously improving results, in all aspects of work, as a result of continuously improving capabilities, people, processes, technology and machine capabilities. Continuous improvement must deal not only with improving results, but more importantly with improving capabilities to produce better results in the future. The five major areas of focus for capability improvement are demand generation, supply generation, technology, operations and people capability. A central principle of TQM is that mistakes may be made by people, but most of them are caused, or at least permitted, by faulty systems and processes. This means that the root cause of such mistakes can be identified and eliminated, and repetition can be prevented by changing the process Improve each and everyday - Do not focus on problems, focus on improvements. If you’re not part of the solution, you’re part of the problem. Customers are not interested in excuses, they’re interested in results. Be proactive - If it ain’t broke, break it, because if you don’t someone else will. The purpose of understanding what is done and how it is done is to learn how to do it better. Know your political atmosphere. 43 www.hu.edu.jo Principles of TQM & Basic Tenets (Doctrine ) of TQM Continuous Improvement Quality goals are a moving target, thereby requiring a commitment toward continuous improvement Process centered Preventing variability is the key to producing high quality Systematic measurement and focus on CONQ Excellence teams Cross-functional process management Attain, maintain, improve standards 44 www.hu.edu.jo Continuous Improvement versus Traditional Approach Traditional Approach Market-share focus Individuals Focus on ‘who” and “why” Short-term focus Status quo focus Product focus Innovation Fire fighting Continuous Improvement Customer focus Cross-functional teams Focus on “what” and “how” Long-term focus Continuous improvement Process improvement focus Incremental improvements Problem solving 45 www.hu.edu.jo Principles of TQM & Basic Tenets (Doctrine ) of TQM Customer Focus The customer makes the ultimate determination of quality TQM is client centered as opposed to service oriented A client centered library focuses on getting information about what the client wants and fulfilling those expectations. Rather than trying to measure the quality of services and programs in the abstract, TQM links assessment of quality directly to the satisfaction of user needs Customer driven standards Supplier partnership Service relationship with internal customers Never compromise quality Customer Input There are two main ways to determine those processes, activities, attitudes, or products which need to be monitored and improved: a) input from staff, either informally or through formal staff surveys or staff suggestion schemes; b) input from customers. THE CUSTOMER Who determines quality of customer service? If the customer does not perceive you as offering quality service you are not. PERCEPTION IS TRUTH CUSTOMER SATISFACTION IS OUR MEASURE OF SUCCESS 46 www.hu.edu.jo Principles of TQM & Basic Tenets (Doctrine ) of TQM Integrated system: Everyone must understand the vision, mission and guiding principles Integrated Planning Means moving outside library environment and communicating, collaborating, and cooperating with others in entire organization. Look outward, not inward. Examples - implementing TEKS, TAAS, etc. Strategic and Systematic Approach: to achieve its vision, mission, and goals(Think long term - Act short term) Communication: During times of organizational change, as well as part of day-to-day operation, effective communication plays a large part in maintaining morale and in motivating employees at all levels communications involve strategies, method and timeliness 47 www.hu.edu.jo The three aspects of TQM Counting Customers Culture Tools, techniques, and training in their use for analyzing, understanding, and solving quality problems Customer Quality for the customer as a driving force and central concern. Shared values and beliefs, expressed by leaders, that define and support quality. 48 www.hu.edu.jo Four Pillars of Total Quality Management Principle #1: Synergistic Relationships According to this principle, an organization must focus, first and foremost, on its suppliers and customers. In a TQM organization, everyone is both a customer and supplier; this confusing concept emphasizes "the systematic nature of the work in which all are involved". In other words, teamwork and collaboration are essential. The concept of synergy suggests that performance and production is enhanced by pooling the talent and experience of individuals. Principle #2: Continuous Improvement and Self Evaluation The second pillar of TQM is the total dedication to continuous improvement, personally and collectively. According to Deming, no human being should ever evaluate another human being. Therefore, TQM emphasizes self-evaluation as part of a continuous improvement process. 49 www.hu.edu.jo Four Pillars of Total Quality Management." Principle #3: A System of Ongoing Process The third pillar of TQM is the recognition of the organization as a system and the work done within the organization must be seen as an ongoing process. Quality speaks to working on the system, which must be examined to identify and eliminate the flawed processes that allow its participants to fail. Since systems are made up of processes, the improvements made in the quality of those processes largely determine the quality of the resulting product. Principle #4: Leadership The fourth TQM principle is that the success of TQM is the responsibility of top management. 50 www.hu.edu.jo BASIC PRINCIPLES OF TQM Approach Scope Scale Philosophy Management Led Company Wide Everyone is responsible for Quality Prevention not Detection Standard Right First Time Control Cost of Quality Theme On going Improvement 51 www.hu.edu.jo TQM Benefits (direct and indirect)? Strengthened Competitive position Adaptability to changing and emerging market conditions and to environmental and other government regulations Higher productivity Enhanced market image Elimination of defect and waste Reduced costs and better cost management Higher profitability Improved customer focus and satisfaction Increased job security Improved employee morale Enhanced shareholder and stakeholder value Improved and innovative process 52 www.hu.edu.jo Total quality management vs traditional management style Total quality management has changed the traditional management style forever. It was a very radical movement those days. Some of these changes are radical even today. Few of these changes are discussed below. Traditional way of management focused on internal activities. Quality had a meaning which was totally internally defined. Products or services provided by organization were assumed to be good in quality, if this organization has done its best in producing that product or service. But in total quality management, focus is the customer. So that ultimate decider of the quality is the customer. Fitting to the customer requirement was the least requirement while delighting them is the ultimate goal. Traditionally people thought bad quality products are due to the workers who do not perform their job correctly. One of the major differences between total quality management and traditional management style is the assignment of the responsibility of the quality to the management. Especially responsibility of the quality goes into the middle level management in the operational level. Total quality management is an organization wide movement. All the organization has to be in unity to apply TQM principles. 53 www.hu.edu.jo Total quality management vs traditional management style Total quality management, unlike traditional management calls for high amount of team working. Team building, specially cross functional teams are feature of TQM. These teams will provide the necessary momentum to the implementation process and will propel the system forward, with very less resistance. TQM believes in quality assurance rather than checking. Quality is inbuilt to the system, so that products are assured to be in good quality. Some decision like narrowing down the supplier base is total quality management concepts used for this purpose, which is revolutionary still today. Unlike in traditional management style, total quality management makes decisions on facts and figures. Therefore problems are identified correctly. Therefore solutions are well planned. TQM depends on cyclic thinking. Also it is continuous. Therefore improvements are small, stable and continuous in nature. This is also known as Kaizen. These events are used in teambuilding, brain storming and decision making. There are many other differences between the old or the traditional way of management to the total quality management. In the bigger picture, TQM has basically changed the culture and the thinking patterns of the organization. 54 www.hu.edu.jo W. Edwards Deming: (1900-1993) The Father of Modern Quality "We have learned to live in a world of mistakes and defective products as if they were necessary to life. It is time to adopt a new philosophy in America." To achieve high level of performance requires more than a good philosophy - the organization must change its behavior and adopt new ways of doing business. This is what Dr. Deming preached to the Japanese in 1950, and in the 1980s and 90s until his death, in America. Deming's approach were amply summed up in his famous 14 Points. These exhort management to rational action instead of merely sloganizing quality and blaming workers for issues beyond the workers' control. We call this "walking the talk." Deming formulated this into his System of Profound Knowledge™ by which management could change itself only with a view from the outside; the system cannot understand itself. 55 www.hu.edu.jo W. Edwards Deming: (1900-1993) The Father of Modern Quality Deming based much of his work on earlier work done by Walter Shewhart on statistical quality control (SQC). Shewhart is considered the father of quality control. SQC uses control charts to identify and control sources of variation in manufacturing processes. In TQM, we apply the principles of controlling the quality of machine-based factory operations to controlling the quality of people-based management operations. The principles we will learn are: Variation is inherent in all processes - mechanical and human. The Plan-Do-Study-Act (PDSA) cycle developed by Dr. Walter Shewhart helps us manage the effects of variation. This is the scientific method applied to problem solving which has us plan and test our improvements, make adjustments, and then standardize them to prevent recurrence. PDSA or PDCA (check) is fundamental to TQM. To do PDSA, we must collect data relevant to the process and understand what this data means. Understanding this data helps prioritize and direct improvement. Improvement increases stakeholder (shareholder, employee, customer, community) satisfaction both now and in the future. 56 www.hu.edu.jo Deming’s view of a production as a system Receipt & test of materials Suppliers, materials & equipment Production, assembly, inspection Design & redesign Distribution Consumer Research Consumers Test of processes, machines, methods, cost 57 www.hu.edu.jo Deming’s Chain Reaction Improve Quality Cost decreases because of less rework, fewer mistakes, fewer delays, snags, better use of machine time and materials Provide jobs and more jobs Stay in business Productivity improves Capture the market with better quality and lower price 58 www.hu.edu.jo 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 A plan can be to initiate a new process or improve an existing one it should be based upon customer needs, and resolve to more effectively fulfill the organization’s mission study the situation Determine what needs to be done Develop a plan and measurement process for what needs to be done? DO ACT (As Needed) Adopt the change as a permanent modification to the process, or abandon it. Take action, either to implement the change or change variables to see if the process can be made more effective, or “Standardize” the new, successful process. If It worked Institionalize/Standardize the change. B. if it didn’t try something else C. continue the cycle Implement the change on a small scale and measure the effects Implement the plan CHECK (Analyze) Study the results to learn what effect the change had, if any. Review the gathered data to determine if the planned and implemented change has created the quality improvement intended. . Determine whether the plan worked? B. study the results www.hu.edu.jo 59 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. 5. 6. 7. End the practice of awarding business on the basis of price tag. Find problems. It is management’s job to work continually on the system. Institute modern methods of training on the job. Institute modern methods of supervision of production workers. The responsibility of foremen must be changed from numbers to quality. Drive out fear that everyone may work effectively for the company. Break down barriers between departments. Eliminate numerical goals, posters and slogans for the workforce asking for new levels of productivity without providing methods. Eliminate work standards that prescribe numerical quotas. Remove barriers that stand between the hourly worker and his right to pride of workmanship Institute a vigorous programme of education and retraining. Create a structure in top management that will push everyday on the above 13 points. 8. 9. 10. 11. 12. 13. 14. 60 www.hu.edu.jo 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” 61 www.hu.edu.jo Joseph M. Juran and the Cost Of Quality Costs Total Costs Unavoidable costs Avoidable costs 100% defective Point of “Enough quality” 62 www.hu.edu.jo Total Quality Management and Mistakes prevention There are three major mechanisms of prevention: Preventing mistakes (defects) from occurring (Mistake - proofing or Poka-Yoke). Where mistakes can't be absolutely prevented, detecting them early to prevent them being passed down the value added chain (Inspection at source or by the next operation). Where mistakes recur, stopping production until the process can be corrected, to prevent the production of more defects. (Stop in time). TQM is the management process used to make continuous improvements to all functions. TQM represents an ongoing, continuous commitment to improvement. The foundation of total quality is a management philosophy that supports meeting customer requirements through continuous improvement. 63 www.hu.edu.jo Plan-Do-Check-Act (PDCA) Circle A Problem Solving Model: •Identify the Problem. •List possible Root Causes •Search out the most likely Root Cause. •Identify potential Solutions. •Select and implement a solution. •Follow – up to evaluate the effect. •Standardize the process. 64 www.hu.edu.jo Never-Ending Process A never-ending process, the PDCA shouldn’t be considered a constant burden but rather an indication that the organization is still breathing, still transforming to meet the ever-changing needs of the customer. 65 www.hu.edu.jo The seven Quality Tools Pareto chart: Vilfredo Pareto, an 1800’s Italian economist, Juran applied later the pareto principle, pointing out that 80% of variation in a process is caused by roughly 20% of the variables, he labeled these variables the “vital few” as opposed to the “trivial many”. A Pareto Chart is a vertical bar graph that ranks problems or issues. USES to prioritize problems to analyze a process to identify root causes to verify that whatever improvement process you implement continues to work 66 www.hu.edu.jo The seven Quality Tools Flowchart it helps the group gain a common understanding of what is involved in the process. A flowchart can also point out missing, redundant, or erroneous steps. Cause and – Effect Analysis: Called also an “Ishikawa diagram” or alternatively called a fishbone diagram. The C-E diagram provides a way of organizing what may be a long list of potential causes. Check sheets (some times called a tally sheet). The Check Sheet is a simple, organized way of tracking the frequency of a particular occurrence or event over time. Are used to gather data on a frequency of occurrence of particular events or defects, and must be designed to gather the specific information needed. USES to gather data to test a theory to evaluate alternate solutions to verify that whatever improvement process you implement continues to work 67 www.hu.edu.jo The seven Quality Tools Control charts: it serves two vital purposes as a data gathering tool: A. it shows when a process in being influenced by special causes, creating an out – of – control, and B. it tells how a process behaves over time. Histograms: it provides a graphical picture of the frequency distribution of the data. Scatter Diagrams: it shows whether or not there is a correlation between two variables. 68 www.hu.edu.jo TQM Implementation Model Process Improvement Manage variation Fix a known problem: QI Story Prevent recurrence: SPC, Kaizen System Improvement Six Sigma Daily Management Quality Assurance Theory of Constraints Strategic Policy Management Product Improvement Quality Function Deployment . 69 www.hu.edu.jo Managing variation Variation is a fact of life. It is random and miscellaneous. Thus, the same process can produce two things that are not alike. In the days of hand-crafted products, this could be accounted for by "fitting" things together. In modern industry where interchangeable parts are assembled into mass-produced final products, controlling variation is critical to customer satisfaction. This is one of the most important tasks a manager faces. Dr. Walter Shewhart identified two kinds of variation, controlled and uncontrolled, and their characteristics. Controlled variation: stable exhibits a consistent pattern over time results of a process can be predicted with greater certainty process can be improved because outcomes of changes can be predicted Uncontrolled variation: changes over time due to "assignable causes" can not predict results of process process cannot be improved easily since outcome of changes are unpredictable 70 www.hu.edu.jo Implementation TQM implementation process begins with senior management especially CEO commitment. Leadership is essential during every phase of the implementation process especially at start Senior management should be educated in the TQM concepts and they should visit Successful TQM firms, reading articles and attend seminars. 71 www.hu.edu.jo Implementation Timing of implementation is very important. Is the firm ready for TQM?. There maybe some obstacles like changing the management personnel, interpersonal conflicts. Establishing the quality council with stating the core values and the mission. Active involvement of middle managers and first line supervisors because they are the communication links from the top management and front line workers. 72 www.hu.edu.jo Implementation If there is an union, TQM representative should talks with them early to be on the same side. It is important to communicate the TQM to entire firm. Communication is never ending process not only in implementation stage. It is important to create TQM awareness , interest and desire. Customer , employee and supplier surveys must be conducted to benchmark the attitudes of them to get data for further improvement. 73 www.hu.edu.jo Implementation Every one needs for training of quality awareness and problem solving. The employees training happens in project team. The quality council determines the quality improvement projects. The implementation process is completed by following the other duties of the quality council. 74 www.hu.edu.jo Role of senior management They have the leadership authority and thus they must actively participate in TQM by participating in the quality council. Managers should visit on site in the firm Management By Wandering Around (MBWA ) Let employees think for themselves. Senior management is no longer make final decision but to make sure the team decision is comply with quality statement of the firm. 75 www.hu.edu.jo Role of senior management Staying senior management informed on the quality improvement by attending seminars and reading books. Providing the needed training resources for TQM techniques. Participating the high management in celebrating and awarding the success of firm quality efforts. 76 www.hu.edu.jo Role of senior management Seniors engaged in quality by serving on teams , coaching teams and teaching seminars. They should spend 1/3 of their time on quality. They should listening to internal and external customers and suppliers through visits and surveys. This data is translated to core values and process improvement projects. 77 www.hu.edu.jo Role of senior management Communication. Most of the previous stated is based on it. It includes firm newsletter and publications, posters, TQM bulletin board, short departmental information meetings, memos and organization wide meeting. It should be with external customers and suppliers by media and advertising in magazines. 78 www.hu.edu.jo Role of senior management By achieving the previous, senior managers should be able to remove fear from the firm, breakdown barriers, remove system roadblocks , minimize resistance to change and change the culture. Only with involvement of senior management, TQM can success. 79 www.hu.edu.jo Implementation TQM implementation process begins with senior management especially CEO commitment. Leadership is essential during every phase of the implementation process especially at start Senior management should be educated in the TQM concepts and they should visit Successful TQM firms, reading articles and attend seminars. 80 www.hu.edu.jo Implementation Timing of implementation is very important. Is the firm ready for TQM?. There maybe some obstacles like changing the management personnel, interpersonal conflicts. Establishing the quality council with stating the core values and the mission. Active involvement of middle managers and first line supervisors because they are the communication links from the top management and front line workers. 81 www.hu.edu.jo Implementation If there is an union, TQM representative should talks with them early to be on the same side. It is important to communicate the TQM to entire firm. Communication is never ending process not only in implementation stage. It is important to create TQM awareness , interest and desire. Customer , employee and supplier surveys must be conducted to benchmark the attitudes of them to get data for further improvement. 82 www.hu.edu.jo Implementation Every one needs for training of quality awareness and problem solving. The employees training happens in project team. The quality council determines the quality improvement projects. The implementation process is completed by following the other duties of the quality council. 83 www.hu.edu.jo Role of senior management They have the leadership authority and thus they must actively participate in TQM by participating in the quality council. Managers should visit on site in the firm Management By Wandering Around (MBWA ) Let employees think for themselves. Senior management is no longer make final decision but to make sure the team decision is comply with quality statement of the firm. 84 www.hu.edu.jo Role of senior management Staying senior management informed on the quality improvement by attending seminars and reading books. Providing the needed training resources for TQM techniques. Participating the high management in celebrating and awarding the success of firm quality efforts. 85 www.hu.edu.jo Role of senior management Seniors engaged in quality by serving on teams , coaching teams and teaching seminars. They should spend 1/3 of their time on quality. They should listening to internal and external customers and suppliers through visits and surveys. This data is translated to core values and process improvement projects. 86 www.hu.edu.jo Role of senior management Communication. Most of the previous stated is based on it. It includes firm newsletter and publications, posters, TQM bulletin board, short departmental information meetings, memos and organization wide meeting. It should be with external customers and suppliers by media and advertising in magazines. 87 www.hu.edu.jo Role of senior management By achieving the previous, senior managers should be able to remove fear from the firm, breakdown barriers, remove system roadblocks , minimize resistance to change and change the culture. Only with involvement of senior management, TQM can success. 88 www.hu.edu.jo Managing variation Management's job is to manage variation in order to produce predicable results, such as quality, cost, and production schedules. Since all data sets contain random variation or noise, the noise must be filtered out, otherwise two kinds of mistakes could arise. interpreting controlled variation (noise) as if it were a meaningful change (signal) and expending efforts to "fix" natural variation interpreting uncontrolled variation (signal) as if it were noise and not recognizing when a change has taken place. To manage the variation in a process, historical data must be analyzed to identify which changes are noise and which changes are signals. To do this Dr. Shewhart created the control charts. In manufacturing, we use a variety of charts for Statistical Process Control (SPC). 89 www.hu.edu.jo Different Strategies to develop the TQM process: Strategy No.1: The TQM Element Approach: Examples of this approach include quality circles, SPC, Taguchi methods, and QFD Strategy No.2: The Guru Approach: For example managers might study Deming’s 14 points and seven deadly diseases. Strategy No.3: The Organization Model Approach: This method was used widely in the late 1980 and is exemplified by the initial winners of MBNQA. Strategy No.4: The Japanese TQ Approach: This approach was used by Florida power and light – among others – to implement TQM and to compete for the Deming prize. Strategy No.5: The Award Criteria: An organization might use criteria of a quality Award, for example: the Deming prize, the European Quality Award, or the MBNQA, to identify areas for Improvement 90 www.hu.edu.jo Common Mistakes and Barriers to Success in TQM Implementation Lack of Management Commitment Inability to change Organizational culture Implementation Problems: Before implementing TQM, management should A. Obtain a company – wide commitment to the process; B. Communicate the company’s vision, mission and goals; and C. Provide open communication about the company's new focus. Poor use of Data: data must be credible and reliable, the measurement process must be consistent, and data retrieval method must be efficient. Finally, decision makers must be trained in data analysis and interpretation Other Common problems Lack of cooperation and team work (not necessarily a lack of teams) among different work at task groups. A failure to understand what teamwork entails? Focus on short – term profits than on long-term goals. Insufficient resources or lack of sustained commitment of those resources. Lack of Continuous and effective training and education Failure to focus on customer’s needs and expectations. Lack of mutual trust and respect among levels of employees Lack of shared vision, mission, or guiding principles Lack of strategic directions Management’s failure to recognize or reward achievements. 91 www.hu.edu.jo 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 92 www.hu.edu.jo TQM: A “Buzzword” Losing Popularity For many companies, the term TQM is associated with corporate programs (mid 1980s ~ early 1990s) aimed at implementing employee teams and statistical process control. Unfortunately, many companies were dissatisfied with the perceived results of these programs, concluding TQM does not work. Question: Why were they dissatisfied? Were they justified? 93 www.hu.edu.jo Theories of Major contributors to Quality W. Edwards Deming: 14 points Create constancy of purpose for improvement of product and service Create dependence on mass inspection Institute training Drive out fear Break down barrier between staff areas Encourage education and self- improvement for everyone Etc… Seven deadly diseases: Lack of constancy of purpose Emphasize on short-Term profits Running a company on visible figures alone Etc… System of profound knowledge Appreciation for a system: Interrelated components knowledge about variation Theory of knowledge psychology: we all want to be appreciated www.hu.edu.jo 94 Theories of Major contributors to Quality Philip Crosby -Quality means conformance not elegance -There is no such thing as quality problem -It is always cheaper to do the job right the first time -The only performance measurement is the cost of quality -The only performance standard is zero defects He also had 14 steps he believed necessary for improvement (such as) Make it clear that management is committed to quality Form quality improvement teams Evaluate the cost of quality Encourage individuals to establish improvement goals. Etc... . kaoru Ishikawa Quality first- not short- term profit first The next process is your customer Utilization of statistical Methods Full participatory Management Cross- function management 95 www.hu.edu.jo Theories of Major contributors to Quality Joseph Juran: Juran’s quality planning roadmap consists of the following steps: Determine quality goals Identity customers Discover customers needs Translate from customer language to products Develop a reliable process Transfer the process, with controls, to operations Walter Shewart: Shewart cycle PDCA (Plan, do, check, act) - Tow types of variation in a process: chance causes and assignable causes Genichi Taguchi - Taguchi loss function: the minimum loss imparted by the product to society from time the product is shipped, translating any deviation of a product from its target parameter into a financial measure. The Taguchi loss function is a driver for continuous improvement Armand Feigenbaum Quality leadership – Quality Technology – organizational commitment Continuous improvement is necessary if one is to stay competitive 96 www.hu.edu.jo Summary TQM encourages participation amongst shop floor workers and managers. There is no single theoretical formalization of total quality, but Deming, Juran and Ishikawa provide the core assumptions, as a "...discipline and philosophy of management which institutionalizes planned and continuous... improvement ... and assumes that quality is the outcome of all activities that take place within an organization; that all functions and all employees have to participate in the improvement process; that organizations need both quality systems and a quality culture.". Management must recognize the barriers that will exist during the planning and early implementation phases of TQM. Even organizations that have been involved in TQM for some time could evaluate the program's progress and improve existing Systems. Training in TQM concept and Methods should promote an awareness and understanding of the reasons that TQM fails, allowing countermeasures to be planned into the process TQM tools are well-established techniques that can be applied equally well to process improvement as to the development of strategic business planning. This paper has described the application of a variety of TQM tools used to develop a strategic business plan that are more often used for process improvement or product concept development. The ADI team found the usage of these TQM tools improved the efficiency of the business planning process and shortened the time frame for completion of highly detailed and complex tasks. The management team will use standardized templates developed from this project for future business plans. The feedback received by the team, from both senior management at Analog Devices and our internal product line customers, recognized the value and quality of information derived from the usage of these tools. 97 www.hu.edu.jo