total quality manageme nt (tqm). total quality management tqm is a philosophy which applies equally...
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TOTAL QUALITY MANAGEMENT (TQM)
Total Quality Management
TQM is a philosophy which applies equally to all parts of the organization.
TQM can be viewed as an extension of the traditional approach to quality.
TQM places the customer at the forefront of quality decision making.
Greater emphasis on the roles and responsibilities of every member of staff within an organization to influence quality.
All staff are empowered.
Elements of TQM Leadership
Top management vision, planning and support.
Employee involvement All employees assume responsibility for the
quality of their work. Product/Process Excellence
Involves the process for continuous improvement.
Elements of TQM 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.
A fundamental concept of TQM
“A set of inter-related resources and activities which transform inputs into outputs.”
“Any activity that accepts inputs, adds values to these inputs for customers, and produces outputs for these customers. The customers may be either internal or external to the organization.”
DIMENSIONS OF QUALITY OR QUALITY CHARACTERISTICSwhat the customer looks in a product.
DIMENSIONS OF QUALITY FOR PRODUCTS & SERVICES
PerformanceFeatures
ReliabilityConformance
DurabilityServiceability
THE COST OF QUALITYPREVENTION COSTSQuality planning costsProduct design costsProcess costsTraining costsInformation costs
INTERNAL FAILURE COSTSScrap costsRework costsProcess failure costsProcess downtime costsPrice reduction
THE COST OF QUALITY (CONT.)
EXTERNAL FAILURE COSTSCustomer complaint costsProduct return costsWarranty claim costsProduct liability costsLost sales costs
THE COST OF QUALITY (CONT.)
TQM PRINCIPLESCustomer-defined qualityManagement leadership toward qualityStrategic quality planningEmployee responsibilityContinuous quality improvementCooperation between the employees and the managementUse of statistical quality controlTraining
TQM & organizational Cultural ChangeTraditional Approach
Lack of communication
Control of staff
Inspection & fire fighting
Internal focus on rule
Stability seeking
Adversarial relations
Allocating blame
TQM
Open communications
Empowerment
Prevention
External focus on customer
Continuous improvement
Co-operative relations
Solving problems at their roots
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Perceived quality is poor
Perceived quality is good
Expectations > perceptions
Expectations = perceptions
Expectations < perceptions
Perceived quality is governed by the gap between customers’ expectations and their perceptions of the product or service
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Gap
Source: Slack et al. 2004
Customer’s expectations concerning a
product or service
Customer’s perceptions
concerning the product or service
PreviousExperience
Word of mouth communications
Image of product or service
Customer’s own specification of
quality
Management’s concept of the
product or service
organization’s specification of
quality
The actual product or serviceGap 1
Gap 2
Gap 3
Gap 4
A “Gap” model of Quality
Source: Parasuraman, Zeithman and Berry. 1985
10080604020
No. of Occurrence
s per Month
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ABC Classification of Defects
Group A: Critical DefectsGroup B: Moderate DefectsGroup C: Minor Defects
1.Pareto Chart A method for identifying causes of poor quality
2. A Process Chart A diagram showing job operations or a process
Brush BodyFibers
Fill
Trim
InspectMake
Box
Insert
CloseWrap
Inspect
Reserve
Master Pack
Stack
Master Box
Fold Up
Plastic Sheet
Pallet
Deliver
Obstacles to Implementing TQM
Lack of a company-wide definition of quality. Lack of a formalized strategic plan for change. Lack of a customer focus. Poor inter-organizational communication. Lack of real employee empowerment. Lack of employee trust in senior management. View of the quality program as a quick fix. Drive for short-term financial results. Politics and turf issues.
PDCA Cycle repeated to create continuous improvement
Time
Performance
“Continuous”improvement
Plan
Do
Check
Act
Product
Continual improvement of the quality management systemContinual improvement of the quality management system
Customers(and otherinterested parties)
Requirements
Managementresponsibility
Resourcemanagement
Measurement, analysis and improvement
Productrealisation
Output
Satisfaction
Input
Source: BS EN ISO 9001:2000
Key: Value adding activity information flow
Customers(and otherinterested parties)
3. A Check Sheet A list of causes of quality problems with the number of defects resulting from each cause
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Defects 1 2 3 4 5 6 7 8
Cracks
Dents
Hairlines
/
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Hour
4. A Histogram A bar chart showing the frequency of occurrence of causes of defects
DispersionDispersion
LengthLength
No.
of
Occu
rren
ces
No.
of
Occu
rren
ces
5. A Scatter Diagram A graph showing how two process variables relate to each other
AbsenteesAbsentees
ProductivityProductivity
6. A Control Chart and Statistical Process Control (SPC)Monitoring of a production process using the statistical quality control technique
0
0.05
0.1
0.15
0.2
0.25
1 2 3 4 5 6 7 8 9 1011121314151617181920
UCL
LCL
CausesCausesMaterialsMaterialsMethodMethod
ManpowerManpowerMachineMachine
EffectEffectQuality Problem
s
7. A Fishbone Diagram
A chart showing the different categories of problem causes.