Total Quality Management
What is Quality?
Old Quality vs. New Quality
 Difference between old quality (Rolls Royce, personal
banker, ...) and new quality is that old was the work of
craftsmen and the new is the work of a system (Toyota,
Big Mac, Boeing Aircraft, Disney World, ...). The old is
expensive, made for the few, using skilled hands, is
beautiful and functionally based. The new reduces cost,
made for the many by intelligent minds and should drive
the economy and make business more competitive.
Toyota Commercial
Why care about quality
 increase productivity
 expand market share
 raise customer loyalty
 enhance competitiveness of the firm
 at a minimum, serve as a price of entry
Achieving high quality Is Difficult
 Only 36% of the firms felt that Total Quality programs boosted their
ability to compete.
Arthur D. Little Survey of 500 Firms
 Over 50% of firms rated their efforts D or F relative to increasing
customer satisfaction, increasing market share, or reducing their cost.
Rath and Strong
 Main Problem: Achieving high quality is as easy to understand as losing
weight and quitting smoking and is as difficult to do.
Steve Schwartz, IBM MDQVP
Why Quality is so difficult to do?
 Quality can only be defined in terms of an agent (a judge of
quality).
 One has to translate future needs of the user into measurable
characteristics
Service Industries are particularly
Difficult
Reasons:
 High volume of transaction
 Immediate consumption
 Difficult to measure and control
 More labor intensive
 High degree of customization required
 Image is a quality characteristic
 Behavior is a quality characteristic
Quality Gurus
 Deming: The father of the quality movement. Scientific
approach to quality
 Juran: Quality by design
 Crosby: Quality is free
Deming’s “Seven
Deadly Diseases”
 Lack of Constancy of purpose
 Emphasis on short term profits
 Evaluation of performance, merit rating or annual review of
performance
 Mobility of management
 Running the company on visible figures alone
 Excessive medical costs
 Excessive costs of warranty fueled by lawyers that work on
contingency fees
Interview with Deming
What is TQM??
The essence of Total Quality Management is a common sense
dedication to understanding what the customer wants and then
using people and science to set up systems to deliver products
and services that delight the customer.
Greg Hughes
President
AT&T Transmission Systems
Basic Concepts of TQM
 Customer Focus
 Continuous Process Improvement - Kaizen
 Employee Empowerment – Everyone is responsible for quality
 Quality is free - focus on defect prevention rather than defect
detection for it is always cheaper to do it right the first time
 Benchmarking – Legally stealing other people’s ideas
 Customer-Supplier Partnerships
 Management by fact..by numbers..by data – Balanced scoreboard
(financial, customer, process, learning)
Quality in U.S. vs. the Japanese
 U.S. conforming to the requirements at the least
cost
 Japanese joint responsibility to make the end
customer happy
12
“ I met the requirements”
OEM
Supplier
OEM
Combative non collaborative relationship
13
“Creating the Best Vehicle/Systems with All the People
All the Suppliers All the Time”
YOU meet the
requirements!
Let’s create
the best
Vehicle and
Systems
together.
Partnership - Collaborative relationship
14
Strength of USA vs. Japan
Concept
Good Innovative Ideas
Good Implementation
Strength of USA Mfg
Strength of Japanese Mfg
KAIZEN
Time
Good Ideas, Good Implementation are the goals of
everyone in the automotive industry
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Seven Basic Quality Tools To improve
Process Quality
 Scatter Diagrams: Plot data on a chart – no attempt is made to






classify the data or massage it
Pareto Charts: Organize data on a histogram based on
frequency from most prevalent to least. Help identify major
causes or occurrences (80:20 rule)
Check Sheets: Easy way to count frequency of occurrence by
front line workers
Histograms: Categorize data is cells and plot (see if any patterns
emerge)
Run Charts: Plot data as a function of time
Cause and effects Charts: fishbone diagrams are used to identify
the root causes of a problem
Control Charts: are statistical tools used to determine if the
variation in results is caused by common or special events
Failures in O-rings
Graph Fit of O-ring failures
Full O-ring data including no failures
T
R
A
N
S
A
C
T
I
O
N
T
I
M
E
RUN CHART
Time of Day
Data Collected
From Check Sheet
 Time Range (in secs)
 Frequency
44-50
51-57
58-64
65-71
72-78
79-85
86-92
93-99
100-106
107-113
1
4
17
12
14
19
18
11
3
1
A Histogram
89
96
103
110
20
18
11
3
1
47
18
54
16
61
14
68
12
75
10
82
8
89
6
96
4
2
103
0
110
47
54
61
68
75
82
89
96 103 110
Be careful of Cell Size
35
30
25
20
15
10
5
0
47
54
61
68
75
82
89
96
50103 64
110
78
1
4
17
12
14
19
18
11
923 106
1
50
64
78
5092
106
64
78
92
106
Pareto Chart (80-20 Rule)
47
54
61
68
75
82
89
96
103
110
90
80
70
60
50
40
30
20
10
0
1
2
3
4
1
4
17
12
14
19
18
11
3
1
5
6
120%
100%
80%
60%
Series2
40%
Series1
20%
0%
7
85
Further info on Pareto Charts
Pareto Diagrams

Purpose:
◦ helps organize data to show major factors
◦ displays data in the order of importance
◦ organize based on fact rather than perception

To construct:
◦ use data from a check sheet or similar instrument
◦ analyze data to determine frequency
◦ identify the vital few
◦ calculate percentages
◦ add percentages to find vital few (80%)
◦ draw cumulative curve

Typical Application:
◦ display relative importance of different factors
 choose starting point for problem solving
 monitor success
 identify basic cause of a problem
◦ use a selling tool to gain support
Teller
Processes
Sequence
of activities
Fatigue
Training
Too
many
steps
Control
functions
Attitude
Processing
Delays
Too much
downtime
Not user
friendly
Slow
response
time
Computers
Fishbone Diagram aka
Cause & Effect Diagram
Cause and Effect Diagram
“Fishbone Diagram”
 Purpose:
◦ visual display of information to identify root causes rather than symptoms.
 To construct:
◦ determine the issue and write problem statement in a box to the right of diagram
◦ find the main causes and write them on branches flowing to the main branch (method,
equipment, people, material, environment, customer expectations, money,
management, govt. regulations)
◦ identify all possible causes and write them on the diagram as sub-causes in each
category
 Typical Application:
◦ determine the real cause of the problem
◦ check the potential effects of a solution
Fishbone Diagrams Explained
5 Why’s problem solving technique
Mizenboushi and GD3 Concepts
Robust Design
Good
Design
Prevent Problems
- keep Good Designs
- minimize change
Find Problems
GD3
Good
Discussion
DRBFM
Good
Dissection
DRBTR
Address any potential issues up stream at Design
Phase
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Quality Focus At the Design Stage
Quality from the start –

Directs attention to “Change”
 Change = potential to have problems

Directs attention to “Interfaces”
 Most defects occur at the “interface”
Focus on
Change Points & Interface Points
29
No change – No Problem
Examples:
• Design change
• Packaging environment
change
• Usage environment
change
• New manufacturing
process
• New supplier
Change Points have the highest potential
to introduce defects
30
DRBFM – Example
 Tire Pressure Monitoring System –
 Changing the sensor from Aluminum Valve to Rubber Valve.
• Purely for cost reduction purposes... System Performance is the same.
Simple change – What could go wrong?
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Interfaces
Interfaces – (Interfaces where issues can brew and surface
later)
 Customer to Supplier
 Department to Department
 System Interfaces
 The Crash sensor failure on Honda Minivans
Interface Points have the highest potential
to introduce defects
32
Design Review By Failure Modes (DRBFM)
Basic Concepts
 Before and After – Description of the Change Point
 Describe the Potential failure modes
 Describe the Design Countermeasures
 Target Testing of the change points and Countermeasures Only
Design techniques to uncover defects at
the design stage – Up stream
Design
DRBFM
Verify/Validate
DRBTR
Design
Changes
Test Result (Change in product
due to test: Cracks,Leaks, etc.)
Focus on Implementation
34
Where do failures occur
 Design Phase (Suppliers are Up Stream)
 Production
 In the field
 Where is it cheapest to detect failures?
 Example:
Replacing a four crash sensors by a single one ..
When Failures Occur!
 Why did the failure happen?
 Symptoms vs. Root Causes
 Root Causes (Investigate the whole chain):
 Suppliers/Component failure
 Design
 Manufacturing
 Change management
 Why were not able to detect it?
Rootcause Analysis:
•Why Occurred?
•Why Not Detected?
36
Failure Detection 5Ws-2Hs
 Who
 Where
 When
 What
 Why
 How was the problem found?
 How can we isolate it? Turn On / Turn Off
Rootcause Analysis Methodology
Failure Isolation – KT Analysis: Is - Is Not
 Why is this design and not the other similar design
 Why this plant and not another plant
 Why this operator and not the other operator
 Why in winter and not in the summer
 Why this computer and not the other computer
 Why in this model and not in other models
Rootcause Analysis Methodology
Finding the root causes of a problem is not Fault
Finding/Criticism.
 To find problems is not fault finding/criticism.
 To find problems is a creative act, same as innovation.
 We should never stop at only finding problems, but also develop a
systemic corrective action plan... FIX THE PROCESS that created the
problem & identify detection algorithms
 We never forget that every job should relate directly to improving a
product. Other jobs are nothing but waste, e.g., only to check, to
inspect, etc.
 Everyone should readily accept help from review participants.
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Summary - Concepts
 Quality all the time by everyone from an end user prospective
 Address issues up stream. Address product and process defects
at the design stage
 Fixing problems usually involves fixing the systemic process
issues that caused the problem – Reoccurrence Prevention
 Focus on Implementation
 Focus on Change Points and Interfaces