Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management The Total Quality Approach to Quality Management Course Instructor: Dr. Syed M. Ahmed, Ph.D. College of Engineering Florida International University, Miami, Florida Lecture Outline The Total Quality Approach Two Views of Quality Elements of Total Quality The Deming Cycle Juran’s Contributions Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management What is Quality? Crosby’s Contributions Total Quality Efforts Succeed Six-Sigma Concept The Future of Quality Management FEDEX - “Performance to the standard expected by the customer” General Services Administration - “Meeting the customer’s need the first time and every time” BOEING - “Providing customers with products and services that consistently meet their needs and expectations. Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management What is Quality? (1) US Department of Defense - “Doing the right thing right the first time, always striving for improvement, and always satisfying the customer”. Quality can be defined in terms of the agent. Who is the judge of quality? Quality involves meeting or exceeding customer expectations. Quality applies to products, services, people, processes, and environments. Quality is an ever-changing state (i.e., what is considered quality today may not be good enough to be considered quality tomorrow). Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management What is Quality? (2) Quality is a dynamic state associated with products, services, people, processes and environments that meets or exceeds expectations. Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management The Total Quality Approach (1) Total quality is an approach to doing business that attempts to maximize the competitiveness of an organization through the continual improvement of the quality of its products, services, people, processes and environments. Customer focus The Total Quality Approach (2) o Strategically based o Customer focus (internal and external) o Obsession with quality Customer focus o Scientific approach to decision making and problem solving o Long-term commitment o Teamwork o Continual process improvement Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management Characteristics of the Total Quality: o Education and training o Freedom through control o Unity of purpose o Employee involvement and empowerment Historic Development of Total Quality Approach Customer focus Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management The Total Quality Approach (3) The Total Quality Approach (4) The upper managers personally take charge of leading the revolution. All levels and functions under goCustomer training infocus managing for quality. Quality improvement should be taken at a continuing, revolutionary pace. Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management Japanese Strategies: The workforce is enlisted in quality improvement through the Quality Control (QC) concept. Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management Two Views of Quality (1) Traditional View: Total Quality View • Process performance = defective parts per hundred produced. • Process performance = defective parts per million produced. • Focused on after-the-fact inspections of products. Customerimprovement focus • Continuous of products, processes and people. • Employees are passive workers who followed orders. • Employees are empowered to think and make recommendations. • One improvement per year per employee • At least 10 improvements per employee per year • Focus on short term profits • Focus on long term profits and continual improvement. Two Views of Quality (2) Total Quality View Productivity versus quality Productivity and quality are always in conflict. You cannot have both. Lasting productivity gains are made only as a result of quality improvements. Customer focus How quality is defined Meeting customer specifications. Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management Traditional View Satisfying customer needs and exceeding customer expectations. How quality is measured Establishing an acceptable level of nonconformance and measuring against the bench mark. Establishing high-performance bench marks for customer satisfaction and then continually improving performance. Two Views of Quality (3) Total Quality View How quality is achieved Quality is inspected into the product. Quality is determined by product design and achieved by effective controlfocus techniques. Customer Attitude towards defects Defects are an expected part of producing a product. Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management Traditional View Defects are to be prevented using effective control systems. Quality as a function Quality is a separate function. Quality should be fully integrated throughout the organization, i.e. it should be every body’s responsibility. Two Views of Quality (4) Total Quality View Responsibility for quality Employees are blamed for quality. 80% quality problems are management’s fault. Customer focus Supplier relationships Supplier relationships are short term and cost driven. Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management Traditional View Supplier relationships are long term and quality oriented. Elements of Total Quality (1) Comprehensive strategic plan with following elements: vision, mission, broad objectives and following activities Provides sustainable competitive advantage in the marketplace. Customer Focus “Customer is the driver”. Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management Strategically Based External customers: define the quality of the product or service delivered. Internal customers: define the quality of people, processes, and environment associated with the products or services. Elements of Total Quality (2) All personnel at all levels approach all aspects of the job from the perspective of “How can we do this better?”. “Good enough” is never good enough. Scientific Approach Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management Obsession with Quality Hard data are used in establishing benchmarks, monitoring performance, and making improvements. Decision making and problem solving is based on scientific principals. Elements of Total Quality (3) Quality improvement is NOT another management innovation but a whole NEW way of doing business that requires an entirely new corporate culture. Teamwork Internal competitiveness vs. External competitiveness Continual Process Improvement Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management Long-term Commitment Continually improve systems (environments) where products are developed and services are delivered by people. Elements of Total Quality (4) Best way to improve people on a continual basis. Train hardworking people “How to work smart?” Freedom through Control Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management Education and Training Involving and empowering employees to simultaneously bring more minds to bear on the decision-making process and increase the ownership employees feel about decisions that are made. Well-planned and carried-out controls (not loss of management control). Elements of Total Quality (5) Internal politics have no place in a total quality organization, rather collaboration is the norm. Unity of purpose has nothing to do with Labor Unions. Employee Involvement and Empowerment Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management Unity of Purpose Basis for involving employees: 1. to increase the likelihood of a good decision or a better plan; 2. to promote ownership of decisions by involving the people who will have to implement them. Empowerment means not just involving people but involving them in ways that give them a real voice. 1. Conduct consumer research and use it in planning the product (PLAN). 2. Produce the product (DO). 3. Check the product to make sure it was produced in attendance with the plan (CHECK). Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management The Deming Cycle (1) 4. Market the product (ACT). 5. Analyze how the product is received in the market in terms of quality, cost and other criteria (ANALYZE) Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management Deming’s Fourteen Points (2) Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management Deming’s Seven Deadly Diseases (3) Juran’s Contributions (1) Juran’s Ten Steps to Quality Improvement Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management Juran’s Three Basic Steps to Progress Juran’s Contributions (2) 80/20 Rule: 80% of the trouble comes from 20% of the problems. The Juran Trilogy Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management The Pareto Principle Juran’s Contributions (3) 1. Determine who the customers are: 2. Identify customers’ needs. 3. Develop products with features that respond to customer needs. 4. Develop systems and processes that allow the organization to produce these features. 5. Deploy the plans to operational levels. Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management Quality Planning Quality Control 1. Assess actual quality performance. 2. Compare performance with goals. 3. Act on differences between performance and goals. Juran’s Contributions (4) 1. Develop the infrastructure necessary to make annual quality improvements. 2. Identify specific areas in need of improvement, and implement improvement projects. 3. Establish a project team with responsibility for completing each improvement project. Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management Quality Improvement 4. Provide teams with what they need to be able to diagnose problems to determine root causes, develop situations, and establish control that will maintain gains made. Crosby’s Contributions 1. Determination. 2. Education. 3. Implementation. Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management Crosby’s Quality Vaccine Ingredients Total Quality Efforts Succeed Senior management delegation and poor leadership. Team mania. Deployment process. Taking a narrow, dogmatic approach. Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management The successful organizations avoid these errors: Confusion about the differences among education, awareness, inspiration, and skill building Six Sigma Concept (1) 1. Identify the product characteristics wanted by the customers. 2. Classify the characteristics in terms of their criticality. 3. Determine if the classified characteristics are controlled by part and/or process. Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management A Six-step Protocol for Process Improvement 4. Determine the maximum allowable tolerance for each classified characteristic. 5. Determine the process variation for each classified characteristic. 6. Change the design of the product, process, or both to achieve a Six Sigma processes performance. Histogram of a 3-Sigma Process Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management Six Sigma Concept (2) Histogram of a 6-Sigma Process Six Sigma Concept (3) Six Sigma is an extension of total quality management which has the aim of taking process and product quality to levels where all customer requirements are met. How is Six Sigma Achieved? By improving process performance. Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management What is Six Sigma? Or, Without improving the process at all if the specifications describing acceptable product can be loosened enough to correspond to the original process’s ± 6 sigma points. Histogram of a 6-sigma process achieved by broadening the specification range for product acceptability Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management Six Sigma Concept (4) Histogram is shifted 1½ Sigma from its ideal position to account for long-term variation. The Future of Quality Management (1) Demanding global customers. Shifting customer expectations. Opposing economic pressures. New approaches to management. Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management Future Trends The Future of Quality Management (2) A total commitment to continually increasing value for customers, investors, and employees. A firm understanding that quality is defined by customers, not the company. A commitment to leading people with a bias for continuous improvement and communication. Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management Quality Management Characteristics for the Future A recognition that sustained growth requires the simultaneous achievement of four objectives all the time, forever: (a) customer satisfaction, (b) cost leaderships, (c) effective human resources, and (d) integration with the supplier base. A commitment to fundamental improvement through knowledge, skills, problem solving and teamwork. Syed. M. Ahmed, Ph.D. The Total Quality Approach to Quality Management Questions/Queries?