Total Quality
Management
S.Shahrukh Haider
Introduction
Competition is getting harder and becoming
global. Companies now have to be more responsive,
offer a better product and keep improving. Total
quality management (TQM) increases customer
satisfaction by boosting quality. It does this by
motivating the workforce and improving the way the
company operates. In an increasingly competitive
market, firms with a continuous improvement
culture and external focus are more likely to survive
and prosper. TQM is considered an important
catalyst in this context.
What is Total Quality Management ?
TQM is an approach to improving the effectiveness and
flexibilities of business as a whole. It is essentially a way of
organizing and involving the whole organization, every
department, every activity and every single person at every level.
TQM ensures that the management adopts a strategic overview
of the quality and focuses on prevention
rather
than
inspection.
Objectives of TQM
• Meeting the customer's requirements is the primary objective
and the key to organizational survival and growth.
• The second objective of TQM is continuous improvement of
quality. The management should stimulate the employees in
becoming increasingly competent and creative.
• Third, TQM aims at developing the relationship of openness and
trust among the employees at all levels in the organisation.
Defining Quality – 5 Ways
• Conformance to specifications
•
Does product/service meet targets and tolerances defined by
designers?
• Fitness for use
•
Evaluates performance for intended use
•
Evaluation of usefulness vs. price paid
•
Quality of support after sale
•
e.g. Ambiance, prestige, friendly staff
• Value for price paid
• Support services
• Psychological
Manufacturing Quality vs. Service Quality
• Manufacturing quality focuses on tangible product features
• Conformance, performance, reliability, features
• Service organizations produce intangible products that must
be experienced
• Quality often defined by perceptional factors like
courtesy, friendliness, promptness, waiting time,
consistency
Significance of TQM
The importance of TQM lies in the fact that it encourages innovation, makes
the organization adaptable to change, motivates people for better quality, and
integrates the business arising out of a common purpose and all these provide
the organization with a valuable and distinctive competitive edge.
Elements of TQM
• Be customer focused
It requires the company to check customers' attitudes regularly and includes
the idea of internal customers as well as external ones.
• Do it right the first time
This means avoiding rework, i.e., cutting the amount of defective work.
• Constantly improve
Continuous improvement
gradually to get better.
allows
the
company
• Quality is an attitude
Every one has to be committed to quality. That means
changing the attitude of the entire workforce, and
altering the way the company operates.
• Telling staff what is going on
This involves improved communication. Typically, it
includes team briefing.
• Educate and train people
An unskilled workforce makes mistakes. Giving more skills to
workers means they can do a wider range of jobs, and do
them better. It also means educating staff in the principles of
TQM, which is a whole new style of working.
• Measure the work.
Measurement allows the company to make decisions based
on facts, not opinion. It helps to maintain standards and keep
processes within the agreed tolerances.
• Top management must be involved
If senior management is not involved, the programme will
fail.
• Make it a good place to work
Many companies are full of fear. Staffs are afraid of the
sack, their boss and making mistakes. There is no point in
running a TQM program unless the company drives out
fear.
• Introduce team work
Team work boosts employees' morale. It reduces conflict
and solves problem by hitting them with a wider range of
skills. It pushes authority and responsibility downwards and
provides better, more balanced solutions.
• Organize by process, not by function
This element of TQM seeks to reduce the barriers that
exist between different departments, and concentrates on
getting the product to the customer.
Elements of TQM(Addition viewpoint)
• Leadership
• Top management vision, planning and support
• Employee involvement
• All employees assume responsibility for inspecting the quality of their work.
• Product/Process Excellence
• Involves product design quality and monitoring the process for continuous improvement.
• Poka-yokes are devices that prevent defects from being produced.
Elements of TQM (cont’d)
• Continuous Improvement
• A concept that recognizes that quality improvement is a journey with no end and that
there is a need for continually looking for new approaches for improving quality.
• Customer Focus (on “Fitness for Use”)
• Design quality
• Specific characteristics of a product that determine its value in the marketplace.
• Conformance quality
• The degree to which a product meets its design specifications.
Implementing TQM
• Successful Implementation of TQM
• Requires total integration of TQM into day-to-day operations.
• Causes of TQM Implementation Failures
• Lack of focus on strategic planning and core competencies.
• Obsolete, outdated organizational cultures.
Implementation of TQM
For TQM to be successful, the organization must
concentrate on the following key elements:
Integrity
Ethics
Trust
Training
Teamwork
Communication
Recognition
Leadership
Implementation of TQM
The key elements of TQM can be divided into four
groups according to their function:
Foundation: Integrity, Ethics, Trust
Building Bricks: Leadership, Teamwork,Training
Roof: Recognition (Motivation)
Binding Mortar: Communication
Reasons for FAILURE
TQM fails because:
• Top management sees no reason for change.
• Top management is not concerned for its staff.
• Top management is not committed to the TQM
programme.
• The company loses interest in the programme after six
months.
• The workforce and the management do not agree on
what needs to happen.
• Urgent problems intervene.
• TQM is imposed on the workforce, which does not
inwardly accept it.
• No performance measure or targets are set, so progress
cannot be measured.
• Processes are not analyzed, systems are weak and
procedures are not written down.
Evolution of TQM – New Focus
TQM Philosophy – What’s Different?
• Focus on Customer
• Identify and meet customer needs
• Stay tuned to changing needs, e.g. fashion styles
• Continuous Improvement
• Continuous learning and problem solving, e.g. Kaizen, 6
sigma
• Quality at the Source
• Inspection vs. prevention & problem solving
• Employee Empowerment
• Empower all employees; external and internal customers
TQM Philosophy– What’s Different? (continued)
• Understanding Quality Tools
• Ongoing training on analysis, assessment, and correction,
& implementation tools
• Team Approach
• Teams formed around processes – 8 to 10 people
• Meet weekly to analyze and solve problems
• Benchmarking
• Studying practices at “best in class” companies
• Managing Supplier Quality
• Certifying suppliers vs. receiving inspection
Four Dimensions of Quality
• Quality of design
• Determining which features to include in the final design
• Quality of conformance to design
• Production processes are set up to meet design
specifications
• Ease of use
• Instructions, operation, maintenance, safety
• Post-sale service
• Responsiveness, rapid repair, p.m., spare parts
Seven Problem Solving Tools
• Cause-and-Effect Diagrams
• Flowcharts
• Checklists
• Control Charts
• Scatter Diagrams
• Pareto Analysis
• Histograms
Cause-and-Effect Diagrams
• Called Fishbone Diagram
• Focused on solving identified quality problem
Flowcharts
• Used to document the detailed steps in a process
• Often the first step in Process Re-Engineering
Checklist
• Simple data check-off sheet designed to identify type of
quality problems at each work station; per shift, per
machine, per operator
Control Charts
• Important tool used in Statistical Process Control –
Chapter 6
• The UCL and LCL are calculated limits used to show
when process is in or out of control
Scatter Diagrams
• A graph that shows how two variables are related
to one another
• Data can be used in a regression analysis to
establish equation for the relationship
Pareto Analysis
•
•
•
•
Technique that displays the degree of importance for each element
Named after the 19th century Italian economist
Often called the 80-20 Rule
Principle is that quality problems are the result of only a few problems
e.g. 80% of the problems caused by 20% of causes
Histograms
•
•
A chart that shows the frequency distribution of observed values
of a variable like service time
at a bank drive-up window
Displays whether the distribution is symmetrical (normal) or
skewed
EXTRA MATERIAL:
Explanation to 7 tools of TQM
Check Sheets
Check Sheets are simple documents
that are used for collecting data in
real-time.
A Check Sheet is typically a blank
form that is designed for the quick,
easy and efficient recording of the desired information,
which can be either quantitative or qualitative.
When the information is quantitative, the check sheet is
called a Tally Sheet.
Histograms
A histogram divides
up the range of
possible values in a
data set into classes or
groups.
For each group, a
rectangle is constructed
with a base length equal to the range of values in that
specific group, and an area proportional to the number
of observations falling into that group.
Scatter Diagrams
Scatter Diagrams are
used to present
measurements of two
or more related variables.
A Scatter Diagram does
not specify dependent or
independent variables.
Either type of variable can be plotted on either axis.
Scatter Diagrams represent the association (not
causation) between two variables.
Control Charts
A control chart consists
of the following:
CL
A Centre Line (CL) drawn
at the process mean value.
Lower and Upper Control Limits that indicate the
threshold at which the process output is considered
statistically unlikely.
Run Charts
Run Charts are
similar in some
regards to Contol
Charts, but do
not show the
control limits of
the process.
They are therefore
simpler to produce, but do not allow for the full range of analytic
techniques supported by Control Charts.
•
•
Run chart: Measurement against progression of time.
Control chart: Add Upper Control Limit and Lower Control Limit
to the run chart.
Ishikawa Diagram
Machine
Also called fishbone diagrams (because of
their shape) or Ishikawa diagrams.
Helps in identifying root causes of the
quality failure. (Helps in the diagnostic
journey.)
Manpower
Problem
Method
Material
Ishikawa Diagram is also called Cause-and-Effect
Diagram. Often are four generic heading used: 4 M´s!
Pareto Diagram
The purpose of the Pareto Diagram is to highlight the
most important set of factors among a typically large
amount of causes for a problem.
In order to develop the Pareto Diagram for a specific
process, the knowledge of Frequncy, Relative
Frequency, Cumulative Frequency and Percentage
Frequency is needed.