TOTAL QUALITY MANAGEMENT

Dr. K.V.Narrasimham

What is Quality?

The oxford dictionary defines Quality as

“degree of excellence, relative nature or kind or character. General excellence.”

A few other meanings associated with the word Quality are:  v     A good product v     Sturdyv     Durablev     Made of best materials v     Easy to operatev     Nice in appearance and touch v     Produced with care

The definition of quality must       Take into account customer requirement and needs.      Customer oriented     Be aware of customer specification

What is Quality?

E.g. when we buy a T.V., we look at the following parameters

When we go to a Restaurant we look at the following parameters.

Quality therefore can be described as “MEETING THE STATED AND IMPLIED NEEDS OF THE CUSTOMER”

A Few other definition of Quality is “ Products that are manufactured exactly to specifications”  “Products and services that totally satisfy our customers needs and expectation in every respect on a continuous basis”  

What is Quality?ISO-9000 definition – Quality the totality of features and characteristics of a product and service that bears on its ability to meet stated or implied needs.

 Juran - Quality is fitness for use.

Crosby - Conformance to requirements.

Japanese - Providing extraordinary customer satisfaction .

Quality is customer’s determination. It is based on the customer’s actual experience with the product or service, measured against his or her requirement.

 Quality consists of freedom from deficiencies

Quality is prevention constructing solutions to problems before they occur, and designing excellence into a product or service.

What is Quality?            Quality is customer satisfaction the delight of the ultimate judge of how well products and services measure up.                                                            Quality is productivity from employees who receive the training, tools, and instruction they need to execute their jobs.                                                            Quality is flexibility the willing ness to change to meet demands.

           Quality is efficiency doing things quickly and correctly.                                                            Quality is meeting a schedule being on time.                                                            Quality is a process of ongoing improvement.

What is Quality?           Quality is an investment reaping a payoff because, in the long run, doing it right the first time is less expensive than correcting it later. Quality (kwol’e-te’). A systematic approach to the search for excellence. (Synonyms: productivity, cost reduction, schedule performance, customer satisfaction, teamwork, the bottom line.) “Quality always represents a moving target in a competitive market”

Quality Is ‘An Attitude Of Mind’

…… “true (quality) is like ghosts, which everyone talks about and few have seen.”

What is Quality?Fundamental aspects of quality Measurable aspects of qualityConsumer (marketable) Operational aspects of quality  Conservational aspects of quality Environmental aspects of quality  Human aspects of quality 

Quality of design (specifications, standards, grades)Quality of conformanceFitness for use, performance, reliability, life, price, availability, deliveryQuality of management, operations, employees, system, maximum output, minimum waste and cost, optimum delivery Optimum use of resources (materials. Machines, money, land, energy, people)Ecology, clean air, unpolluted water, potable water, tolerable noise levels, safe waste, open space, landscape, recreation, beautyQuality of life, health, education, culture, society, freedom, ethical and moral values

What is Quality?TABLE 1.3 The Dimensions of Quality (Prof Garvin Of HBS)

Dimensions Meaning and Example

 Performance Primary product characteristics, such as the brightness of the picture Feature Secondary characteristics, added features, such as remote controlConformance Meeting specifications or industry standards, workmanshipReliability Consistency of performance over time, average time for the unit to fail Durability Useful life, includes repairService Resolution of problems and complaints, ease of repairResponse Human – to –human interface, such as the courtesy of the dealer Aesthetics Sensory characteristics, such as exterior finish

What is Quality?

           There are various factors which effect Quality. Man Material Machine Markets Money Motivation Modern methods of Information. 

What is Quality?

Product can be resold. Reselling a service is unusual.

Product can be inventoried.

Many services cannot be inventoried.

Some aspects of quality are measurable.

Many aspects of quality are difficult to measure.

Selling is distinct from production.

Selling is often a part of the service.

Product is transportable.

Provider, not product, is often transportable.

Site of facility is important for cost.

Site of facility is important for customer contact.

Often easy to automate.

Service is often difficult to automate.

Revenue is generated primarily fromThe tangible product.

Revenue is generated primarily from the intangible services.

Attributes of Goods(Tangible product)

Attributes of Services(Intangible product)

What is Quality?•Quality in Daily LifeQuality in Daily Life

•Quality has been an age-old concern•1700 BC King Hammurabi of Babylon introduced the concept of product quality and liability into the building industry of the time by declaring: …if a building falls into pieces and the owner is killed then the builder shall be put to death. If the owner’s children are killed then the builders’ children shall be put to death.

What is Quality?•Quality in the Middle AgesQuality in the Middle Ages• building quality into a product was the job of a building quality into a product was the job of a craftsmancraftsman, , - taking pride in their work & products•advent of mass production - -Feigenbaum referred to as “operator quality control.”

•Quality during the Industrial RevolutionQuality during the Industrial Revolution •Mass Production- workers, supervisors and foremen, and managers •Frederick Taylor’s scientific management brought in efficient operations to increase output through mass production by breaking down jobs into parts with each part carried out by individual specialized workers .

What is Quality?•Quality between the World WarsQuality between the World Wars•demanded yet more mass production + reliability •formation of associations and institutes, and to the publication of formalized ideas in quality •in Britain, the Technical Inspection Association was formed in 1919, becoming incorporated as the Institution of Engineering Inspection in 1922. •In 1931, W. A. Shewhart of the famous AT&T Bell Laboratories, published Economic Control of Quality of Manufactured Product –used Statistics.•In 1932 - British Standards Institute (BSI )•Matsushita = Mass Prod +using price reductions to generate more sales

What is Quality?•Matsushita ==mass production for creating peace and prosperity throughout the land.” role in society. ( Ford did not think so)•The broader view of Matsushita was as follows:

•Employees are important •Customers are of course important •Suppliers are also important •If there is an effective partnership, all sides win and society

benefits from the prosperity generated•After the war, the Japs were guided by two Americans-- W. Edwards Deming (1900-93) and Joseph Juran (1904 )

•Quality after the Second World WarQuality after the Second World War•meeting delivery dates at the expense of standards in the product•American Society for Quality Control (ASQC). Formed

What is Quality?•The American Approach to Quality.

•The innovation strategy favored by the United States in the post-war years was the only strategy in a period of low-cost resources, expanding markets and low international competition.

•Japan’s Approach to Quality •They successfully combined the strategy of innovation with that of continuous quality improvement. •This brought a reduction in costs, faster development times, prompt deliveries, customer satisfaction and enormous competitive advantage internationally.

What is Quality?• tradition of fine craftsmanship + miniaturization + strongly statistical flavor

•Quality was seen as a national “survival” strategy , a key objective.

•devised several strategies such as

•I) Senior managers should personally take charge of quality management implementation

•ii)Personnel from all levels and functions of an organization should undergo training in quality management

•iii) Quality improvement should be continuous

iv)The workforce should participate in quality improvement .

What is Quality?TOTAL QUALITY MANAGEMENT:-

• Total-- Make up of the whole• Quality-- Degree of excellence a product or service provides• Management-- Act, art, or manner of handling, controlling,

directing etc.

Principles of Total Quality ManagementPrinciples of Total Quality Management

1. Primary responsibility for product quality rests with top management.

2. Quality should be customer focused and evaluated using customer based standards

3. The production process and work methods should be designed consciously to achieve quality conformance

4. Every employee is responsible for achieving good product quality

What is Quality?•Quality cannot be inspected in a product, so make it right the first time.•Quality should be monitored to identify problems quickly and correct quality problems immediately.•The organization should strive for continuous improvement .•Companies should work with their suppliers and extend TQM programs to them to ensure quality inputs. Basic Approach:-

1. A committed and involved management +all employees participation + A quality council to develop a clear vision, set long-term goals and direct the program. Quality goals are included in the business plan + an annual quality improvement program TQM is a continual activity and should be entrenched in the culture. TQM should be

communicated to all people.

What is Quality?2. An unwavering focus on customers, both internally

and externally .3. Effective involvement and utilization of the entire work force .4. Continuous improvement of business and production process .5. Treating suppliers as partners .6. Establish performance measures for the processes

What is Quality?New and Old Cultures

Quality Element Previous State TQM Definition Product-orientated Customer-orientedPriorities Second to service and cost First among equals

of service and costDecisions Short-term Long-termEmphasis Detection PreventionErrors Operations SystemResponsibility Quality control EveryoneProblem Solving Managers TeamsProcurement Price Life-cycle costs, partnership Manager’s Role Plan, assign, control Delegate, coach facil

and enforce and mentor

 

What is Quality?

Gurus

Principles and Practices

Tools and Techniques

Products or Service

RealizationCustomer

ShewhartDemingJuranFeigenbaumIshikawaCrosbyTaguchi

BenchmarkingInformation TechnologyQuality Management SystemsEnvironmental Management SystemQuality function DeploymentQuality by DesignFailure Mode & Effect AnalysisProducts & Service LiabilityTotal Productive MaintenanceManagement ToolsStatistical Process ControlExperimental DesignTaguchi’s Quality Engineering

People and Relationships: Approach: LeadershipContinuous Process Improvement

Customer Satisfaction Employee Involvement Measure:Supplier Partnership Performance Measures

What is Quality?Obstacles:-

1. Lack of Management Commitment 2. Inability to Change Organizational Culture 3. Improper Planning4. Lack of Continuous Training and Education 5. Incompatible Organizational Structure and

Isolated Individuals and Departments6. Ineffective Measurement Techniques and Lack

of Access to Data and Results 7. Paying Inadequate Attention to Internal and

External Customers 8. Inadequate Use of Empowerment and

Teamwork 9. Failure to Improve Continually

What is Quality?Benefits of TQM

Improved quality Employees’ participationTeamwork Working relationships Customers’ satisfaction Employees’ satisfaction Productivity   Communication    Profitability Market share

What is Quality?

Quality is a journey,not a destination.

QUALITY GURUSDr. DEMING.

PLAN

CHECK

DOACT

The Deming Cycle or PDCA Cycle

Plan a change to the process. Predict the effect this change will have and plan how the effects will be measured

Implement the change on a small scale and measure the effects

Adopt the change as a permanent modification to the process, or abandon it.

Study the results to learn what effect the change had, if any.

W. Edwards Deming’s 14 Points

1) Create constancy of purpose towards improvement of product and services.

2) Learn and Adopt the New Philosophy

3) Cease/end dependence on mass inspection. Require, instead, statistical evidence that quality is built in.

4) End the practice of awarding business on the basis of price tag.

5) Find problems. It is management’s job to work continually on the system.

6) Institute modern methods of training on the job.7) Institute modern methods of supervision of production

workers. The responsibility of foremen must be changed from numbers to quality.

8) Drive out fear that everyone may work effectively for the company.

9) Break down barriers between departments.10) Eliminate numerical goals, posters and slogans for the

workforce asking for new levels of productivity without providing methods.

11) Eliminate work standards that prescribe numerical quotas.

12) Remove barriers that stand between the hourly worker and his right to pride of workmanship.

13) Encourage Education and Self-Improvement for Everyone

14) Create a structure in top management that will push everyday on the above 13 points.

QUALITY GURUSDeming’s philosophy is given in 14 points:-1. Create Constancy of Purpose for Continual

Improvement of Product and Service.2. Learn and Adopt the New Philosophy3. Stop Awarding Business based on Price Alone.4. Understand the Purpose of Inspection .5. Improve Constantly and Forever the System

of Production and Service.6. Institute Training on the Job .

1. Knowledge of (or Appreciation of) the System and the Theory of Optimization .

a.      2. Some Knowledge of Statistical Theory (or the Theory of Variation).

3.   Some Theory of Knowledge. 4. Some Knowledge of Psychology.

QUALITY GURUS7. Adopt and Institute Modern Methods of

Leadership.        Lead and motivate by example rather than fear

        Teach and counsel rather than judge and supervise         Use mistakes to learn from rather than to blame         Understand the difference between random and

special variation (so that people in need of special help are recognized)

        Promote teamwork and mutual trust Provide innovative methods to accomplish the

improvement8. Drive Out Fear and Create Trust and a

Climate for Innovation 9. Break Down Barriers between Departments

and Individuals.10.Eliminate the Use of Slogans, Posters and

Exhortations for the Work Force.

11.Eliminate Numerical Quotas for the Work Force.

12.Remove Barriers that Rob People of Pride of Workmanship.Loss of pride in workmanship exists throughout organizations because of the following reasons:

      Workers do not know how to relate to the organization’s mission.

b.      They are being blamed for system problems.c.       Poor designs lead to the production of “junk.”d.      Inadequate training is provided.e.       Punitive supervision exists.

Inadequate or ineffective equipment is provided for performing the required work.

13.Encourage Education and Self-Improvement for Everyone.

14.Take Action to Ensure Top Management’s Permanent Commitment to Accomplish the Transformation

QUALITY GURUS

Deming’s 7 Deadly Sins

• Lack of constancy of purpose

• Emphasis on short term results

• Evaluation-- merit rating, annual review

• Mobility of management

• Relying on visible figures alone

• Excessive medical cost

• Excessive legal costs

QUALITY GURUS

Learning

LEARNING AND TQM

Process Improvement

Quality Improvement

Customer Satisfaction

Shareholder Satisfaction

Employee Satisfaction

QUALITY GURUSJuran’s Trilogy Diagram

Quality Planning Quality control (during operations)

Original zone of quality control

Quality improve -ment

New zone of quality control

Cost of Poor Quality

TIME

20

40

00

Lessons learned

QUALITY GURUSJoseph M. Juran’s Quality Trilogy

Quality Planning

•Establish quality goals

•Identify customers’ needs

•Translate needs into your language

•Develop a product for these needs

•Optimize product features for these needs

Quality Control

•Prove that the process can produce under operating conditions

•Transfer process to operation

Quality Improvement

•Seek to optimize the process via tools of diagnosis

QUALITY GURUS

1) Identify who are the customers2) Determine the customers’ needs3) Translate the needs into your language4) Develop a product to meet those needs5) Optimizea product so as to meets yours as well as the customers’ needs6) Develop a process which is able to produce the

product7) Optimizethe process8) Prove that the process can make the product

under operating conditions

Juran’sQuality Planning Road Map

QUALITY GURUS

Philip Crosby’s Four Absolutes

Definition: Conformance to requirements.

System of quality isprevention.

Performance Standard: Zero Defects

Measurement : Price of non-conformance (PON)

What is Quality?

What system is needed to cause quality?

What performance standard should be used?

What measurementsystem is required?

QUALITY GURUS

Philip B. Crosby’s 14 Points

Make it clear that management is committed to quality.

Form quality improvement teams with representatives from each department.

Determine where current and potential quality problems lie.

Evaluate the cost of quality and explain its use as a management tool.

1)

2)

3)

4)

Raise the quality awareness and personal concern of all employees.

Take actions to correct problems identified through previous steps.

Establish a committee for the zero defects programme.

Train supervisors to actively carry out their part of the quality improvement programme.

5)

6)

7)

8)

Philip B. Crosby’s 14 Points

Hold a “zero defects day” to let all employees realise that there has been a change.

Encourage all individuals to establish improvement goals for themselves and their groups.

Encourage employees to communicate to management the obstacles they face in attaining their improvement goals.

Recognise and appreciate those who participate.

9)

10)

11)

12)

Philip B. Crosby’s 14 Points

Establish quality councils to communicate on a regular basis.

Do it all over again to emphasise that the quality improvement program never ends.

13)

14)

Philip B. Crosby’s 14 Points

Zero Defects ProgramZero Defects Program

The philosophy behind Zero Defects is to negate the commonly The philosophy behind Zero Defects is to negate the commonly held view that “to err is human.” Instead, Zero Defects philosopheld view that “to err is human.” Instead, Zero Defects philosophy hy believes in total perfection or “to do the job right the first tbelieves in total perfection or “to do the job right the first time.” ime.”

Modern Worker vs. Traditional WorkerModern Worker vs. Traditional Worker:: The main theme behind The main theme behind Zero Defects is that the worker should be positively motivated tZero Defects is that the worker should be positively motivated to o achieve as much perfection in his job as possible. achieve as much perfection in his job as possible.

Means for MotivationMeans for Motivation:: Motivation is achieved through various Motivation is achieved through various meansmeans---- posters, publicity, voluntary pledges by workers, visits of posters, publicity, voluntary pledges by workers, visits of customers to the plant etc. customers to the plant etc.

Organization of the ZD ProgramOrganization of the ZD Program: The Zero Defects Program : The Zero Defects Program should be a separate activity coordinated probably by an should be a separate activity coordinated probably by an administrator with the help of a number of Zero Defects administrator with the help of a number of Zero Defects representatives working in various functional areas and representatives working in various functional areas and manufacturing departments of the company. manufacturing departments of the company.