IT Services Group 4 • Jalal Hafidi • Mathew Joseph • Tolulope Oke • Denisa Teme • Li Wei Overview Total Quality Management (TQM) Definition of TQM Evolution of TQM Quality o Quality programs o Cost of Quality Philosophy of TQM o TQM approaches o TQM tools Case Study Difference between manufacturing and service organization ITIL Quality Standards Failure of TQM efforts Relations to COBIT5 1 of 26 Total Quality Management (TQM) Have you ever lost your luggage or ordered goods and they were late? Was your issue resolved? What in your opinion is TQM? 2 of 26 What is TQM? An integrated effort geared at improving quality throughout the organization Quality & Success, Competitiveness Customer Satisfaction & Quality Management Customer-defined Quality Quality terms should be agreed upon by both parties so as to achieve the desired aim 3 of 26 Evolution of TQM 4 of 26 Question A successful TQM program incorporates all of the following except: a. b. c. d. Continuous improvement Employee involvement Benchmarking Centralized decision making authority 5 of 26 Discussion How do you define quality? 6 of 26 What is Quality? No universal definition of quality People view it as: • “Performance to standards” • “Meeting the customer’s needs” • “Satisfying the customer” Conformance to specifications Fitness for use Value for price paid Support services Psychological criteria 7 of 26 Cost of Quality Cost consequences of poor quality Cost to achieve high quality Prevention costs Appraisal costs Internal failure costs 8 of 26 External failure costs Cost of Quality 9 of 26 Costs of Defects 10 of 26 Question All of the following costs are likely to decrease as a result of better quality except: a. Customer dissatisfaction costs b. Maintenance costs c. Scrap costs d. Inspection costs 11 of 26 The Philosophy of TQM TQM is based on quality management from different points of view: Customer focus Continuous improvement Employee empowerment Use of quality tools Two approaches are used in assessing performance: • Benchmarking approach 12 of 26 TQM Approaches The Plan–Do–Study–Act approach (PDSA) The activities needed to improve PDSA cycle: Plan: Analyze =>collect data=>identify problems=>develop a plan for improvements. Do: Implement the changes=>collect data for evaluation. Study: Analyze the data collected=> evaluate it against the plan Act: Communicate the result=> implement the new procedure 13 of 26 TQM Tools The seven tools of quality control: Cause-and-effect diagram Flowchart Checklist Control charts Scatter diagrams Pareto analysis Histogram 14 of 26 Question The process of identifying other organizations that are best at some facet modeling your organization after them is known as: a. Continuous improvement b. Employee empowerment c. Benchmarking d. Copycatting e. Patent infringement 15 of 26 Case Study Questions What is wrong with how Gold Coast Advertising (GCA) measure its quality? Explain why Gold Coast should ask its customers about how they define quality. Offer suggestions to George Stein on ways of identifying quality dimensions GCA’s customers consider important. What questions would you ask customers to evaluate how they define quality? 16 of 26 Quality as Defined by Manufacturing & Service Organizations 17 of 26 Process Management Old vs. New What kind of control is it ? Preventive Detective Corrective Managing supplier quality 18 of 26 ITIL Information Technology Infrastructure Library A globally recognized collection of best practices for IT service management Focuses on aligning IT services with the needs of business Quality management 19 of 26 Question ISO 9000 seeks standardization in terms of a. Products b. Production procedures c. Suppliers’ specifications d. Procedures to manage quality 20 of 26 Quality Standards ISO 9000 Standards A set of international quality standards and a certification demonstrating that companies have met all the standard specified. Development: ISO 9000:2000 – Fundamentals and Standards ISO 9001:2000 – Requirements ISO 9004:2000 – Guidelines for Performance Advantages How to receive the ISO certification 21 of 26 Quality Standards ISO 14000 A set of international standards and a certification focusing on a company's environmental responsibility Focusing on 3 major areas: Management systems Operations Environmental systems Green Manufacturing and environmental concerns 22 of 26 Why TQM Efforts Fail Lack of a genuine quality culture Failure Over- and under-reliance on statistical process control (SPC) methods Lack of top management support and commitment 23 of 26 APO11-Managing Quality Maintain continuous improvement. Integrate quality management into solutions Perform quality monitoring, control and reviews Focus quality management on customers. Define and manage quality standards, practices and procedures. Establish a quality management system 24 of 26 Relation to COBIT5- Output Establish a quality management system o Quality management plans Define and manage quality standards, practices and procedures. o Quality management standards Focus quality management on customers o Review results of quality of service, including customer feedback Perform quality monitoring, control and reviews. o Results of quality reviews and audits Integrate quality management into solutions for development and service delivery o Results of solution and service delivery quality monitoring Maintain continuous improvement. o Quality review benchmark results 25 of 26 THANK YOU 26 of 26