total quality management - bogazici university of quality ... 10.eliminate slogans. 11.eliminate...
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CHE 460
TOTAL QUALITY MANAGEMENT
Introduction
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WHAT IS QUALITY?
Experts Says:
“Fitness for use” (Juran)
“Conformance to purpose” (Crosby)
Degree to which a set of inherent characteristic fulfills requirements(ISO)
“The characteristics of a product or service that bear on its ability to satisfy stated or implied needs” or “ a product or service free of deficiencies “ASQ)
......
CUSTOMER DEFINITION?
....
aesthetics
speed? No defect?
Easy to use? ?
Realibility?
Durability? performance?
QUALITY?
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DIMENSION OF QUALITY
Design Quality • Characteristics of product or service?
• Target customer segment?
• Material and method will be used?
• ........
Example: “economy” and “business class” in
flight; “cotton” or “silk” shirt.
Conformance quality
• Conformance to design or intended product
characteristics
Example: everything being normal in an
economy class flight, or defect free cotton
shirt.
Design quality may differ for various products
but conformance quality has to be high for all.
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DIMENSION OF QUALITY
Fulfillment High
Customer satisfaction Low
Customer satisfaction High
Fulfillment Low
Excitement factors
Basic factors
Kano Model
Performance factor
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WHY IS IT IMPORTANT?
Global Competition • High supply/demand
• Free international trade
• Development in communication
and transportation
How to compete? • Low price
• High quality
• Short delivery time How to achieve together?
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QUALITY MANAGEMENT
Quality control (Inspection and testing) • Controlling the product • Finding the defected product and remove • Result oriented
Quality assurance • Controlling the process/system • Preventing the nonconformance to quality • Process oriented
TQM • Targeting quality in all activities
• Managing all aspects (planning, executing and controlling) of quality efforts
• Involving all people, processes and systems
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HISTORY OF QUALITY MANAGEMENT
Before 1900 • Production in small shops
• Masters are responsible for quality and everything
• Others help masters
Early 1900s • Mass production
• Division of labor, functional organizations
• “Quality control” department
1930s • Introduction of human side of management
• Introduction of statistical process control, sampling and other techniques into business
• Amount of production is key for success
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HISTORY OF QUALITY MANAGEMENT
Deming lectures in Japan(1950s) • Focus on quality
• Deming cycle
• “Quality of process”: SPC
Japanese Era (up to 1980’s) • “Company wide quality control”
• New techniques and applications
• Deming Award
Global Acceptance (after 1980’s) • As a new management philosophy
• New techniques and application
• Quality Awards • Malcolm Baldrige
• EFQM Business Excellence Model
• TUSİAD-KALDER Quality Award
• Contribution around the worlds
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PIONEERS
Walter A. Shewhart • Control charts
W. Edwards Deming • Control charts, 14 points, profound knowledge..
Joseph M. Juran • “Qualty planning-control-improvement”, • quality handbook
Armand V. Feigenbaum • TQC, SPC
Phillip Crosby • “Zero defects”
Kaoru Ishikawa • One of the Japonese pioneer’s of quality
Genichi Taguchi • experimental design
......
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TQM IN ACTION
TOOLS AND PROCESSES Teamwork, SPC, problem solving, Taguchi, QFD...
PRINCIPLES Customer focus, continuous improvement, long term thinking...
IMPLEMENTATION MODEL EFQM, corporate models, expert suggestions...
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TQM PRINCIPLES
.....
Fact based decision making
Preventive approach
Continuous improvement
Process-system focus
Long term focus
Systematic approach
Teamwork
People first
Customer focus
PRINCIPLES
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CUSTOMER FOCUS
Who is the customer?
• People or other organizations that use the product or service of the organization
Customer is the reason to exist.
Success depends on customer behavior toward organization
Customers should be satisfied:
• Determine and meet the need and expectation
• Handle the complaints effectively
• Increase the “perceived quality” by the customer
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CUSTOMER FOCUS
Internal customer • Each step is the customer of previous
step
• The firm is a chain of internal customers from supplier to final customer
• The strength of the chain is equal to strength of the weakest ring.
Satisfaction of all stake holders • Share holder
• Employees
• Customer
• Suppliers
• Society
• .....
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PEOPLE FIRST: PARTICIPATION
The contribution of everybody is valuable.
The person who does the job also know how to improve.
People tend to do their best if they can (Theory Y).
Hence, achieve the participation of everyone in all activities (decision making, problem solving, improvement...) should be achieved
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PEOPLE FIRST : TRAINING
Continuous change New needs and problems Need for new knowledge and skills
Managing competencies
• Competency needs
• Measuring the competencies
• Developing competencies
Quality training
• Increase awareness and commitment
• Train in quality tools and process
“Quality starts and ends with training” Ishikawa
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PEOPLE FIRST : EMPOWERMENT
The knowledge and skills of employee should be developed to handle responsibility and authority
Responsibility and authority should be given
Employee should be supported to succeed to use responsibility and authority
Traditional organizational structure Structure based on empowerment (symbolic representation)
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TEAMWORK
“Team is a collection of “limited number of members”
to “achieve a common goal” by “working together”.
Example: Football teams, basketball teams,
Orchestras
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CHARACTERISTICS OF AN EFFICIENT TEAM
Well defined goals and borders
Acceptance of the team goals by all members and
willingness to achieve
Well balanced and complementary roles and
responsibilities
Complementary expertise
Good communication and collaboration
Use of efficient tools and processes
Efficient leadership
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WHY TEAMWORK?
Participation and commitment of more people.
Creating synergy, and contributing successes
More people feel ownership for the decisions.
More people are satisfied by the results
Help to improve communication and trust in
workplace.
Help to meet the socialization needs (motivation)
....
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TYPE OF TEAMWORK
Type of teams in terms of functions
• Departmental work teams/quality circles
• Cross-functional teams
• Special task teams
Type of teams in terms of management
• Traditional teams
• Empowered teams
• Self directed teams
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SUCCESS IN TEAMWORK
COLD TEAM
High performance
Low relation
FUNCTIONAL TEAM
High performance
High relations
DYSFUNCTIONAL TEAM
Low performance
Low relation
LOOSE TEAM
Low performance
High relation
WO
RK
DIM
EN
SIO
N
RELATION DIMENSION
Low
High
High
Low
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SYSTEMATIC APPROACH
Deming cycle=
Quality cycle= PDCA
cycle
In many area
• Planning
• Problem solving
• Improvement
• .......
PLAN
CHECK
ACT
DO
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LONG TERM FOCUS
Long and short term benefits may be
conflicted, and there is a tendency
“to save the day!”
Success comes in long term focus
and efforts.
Strategic attitude
Strategic planning, strategic
management, Hoshin Kanri, Policy
deployment, MBO....
TARGET
IMPLEMENTATION
EVALUATION
ACTIVITY PLAN
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PROCESS-SYSTEM FOCUS
Activities Inputs Output
Information, energy, material, effort....
Properties of a process
• Has a purpose, all activities should be to achieve this purpose
• Its elements interact with each other and contribute the result.
• The total output is more valuable than total input.
Process in a company: purchasing, production, hiring, training...
Improving the process improve the results (product, service...)
Applications: process management, process improvement....
“80% of problems come from the system” Deming
Information, energy, material, effort....
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CONTINUOUS IMPROVEMENT
Types of development • Revolutionary (radical)
• Evolutionary (small/continuous)
Radical Change • System, technology...
change
• Top management is responsible
Small/continuous • All process and activities,
all the times
• Everybody is responsible
evolutionary
Time
Impro
vem
ent
revolutionary
R+E together
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PREVENTIVE APPROACH
Preventing the problems is usually better than fixing after occurrence.
• Examples: Vaccine to babies, preventive maintenance of cars
The same is usually true for product and services although it is not obvious.
• To prevent the defected product reaching the customer
• To reduce the cost
It is related to process-system approach (well operating process prevent the problems in the product and service)
This is the principle behind ISO 9000
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FACT BASED DECISION-MAKING
For an effective decision
• Collect data about the processes
• Analyze
• Decide/act
Applications
• Quality tools
• Statistics, statistical process
control
• Problem solving process
• Continuous improvement process
• ....
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DEMING’S 14 POINTS
1.Create constancy of purpose towards improvement.
2.Adopt the new philosophy.
3.Cease dependence on inspection.
4.Move towards a single supplier for any one item.
5.Improve constantly and forever.
6.Institute training on the job.
7.Institute leadership.
8.Drive out fear.
9.Break down barriers between departments.
10.Eliminate slogans.
11.Eliminate management by objectives.
12.Remove barriers to pride of workmanship.
13.Institute education and self-improvement.
14.The transformation is everyone's job.
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TOOLS AND PROCESSES
Policy Deployment/Strategic Management
Quality Circles/team work
Suggestion systems
Problem solving process
Process Improvement techniques
7 quality/management tools
Design techniques (QFD, Taguchi)
Production tech. (SPC,JIT, TPM)
Benchmarking
(ISO 9000, ISO 14000)
Cost of quality
.............
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IMPLEMENTATION
TQM MODELS (implementation framework )
By experts or companies
Quality awards
• Deming, M. Baldwrige, EFQM
Six Sigma
(certification systems)
IMPLEMENTATION
Acceptance of philosophy
Training in principle and techniques
Implementation
Evaluating and correcting
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EFQM/TUSİAD-KALDER MODEL
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EFQM/TUSİAD-KALDER MODEL
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EFQM/TUSİAD-KALDER MODEL: ENABLERS
What an organisation does and how it does it
There are five Enablers, these are the things an organisation needs to do to
develop and implement its strategy.
Leadership
Excellent organisations have leaders who shape the future and make it
happen, acting as role models for its values and ethics and inspiring trust
at all times. They are flexible, enabling the organisation to anticipate and
reach in a timely manner to ensure the on-going success of the
organisation.
Strategy
Excellent organisations implement their Mission and Vision by developing a
stakeholder focused strategy. Policies, plans, objectives and processes
are developed and deployed to deliver the strategy.
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EFQM/TUSİAD-KALDER MODEL: ENABLERS
People
Excellent organisations value their people. and create a culture that allows the mutually beneficial achievement of organisational and personal goals. They develop the capabilities of their people and promote fairness and equality. They care for, communicate, reward and recognise, motivates people, builds commitment and enables them to use their skills for the benefit of the organisation.
Partnerships & Resources
Excellent organisations plan and manage external partnerships, suppliers and internal resources in order to support their strategy, policies and the effective operation of processes. They ensure that they effectively manage their environmental and societal impact.
Processes, Products & Services
Excellent organisations design, manage and improve processes, products and services to generate increasing value for customers and other stakeholders.
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EFQM/TUSİAD-KALDER MODEL: RESULTS
Customer Results
Excellent organisations achieve and sustain outstanding results that
meet or exceed the need and expectations of their customers.
People Results
Excellent organisations achieve and sustain outstanding results that
meet or exceed the need and expectations of their people.
Society Results
Excellent organisations achieve and sustain outstanding results that
meet or exceed the need and expectations of relevant stakeholders
within society.
Business Results
Excellent organisations achieve and sustain outstanding results that
meet or exceed the need and expectations of their business
stakeholders.
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EFQM/TUSİAD-KALDER MODEL: RADAR
The RADAR is an assessment framework:
Determine the Results it is aimed to achieve
Plan & develop sound Approaches to deliver results
Deploy the approaches in a systematic way
Assess and Refine the deployed approaches based on monitoring and analysis of the results achieved and ongoing learning activities.
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EFQM/TUSİAD-KALDER MODEL: RADAR
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EFQM/TUSİAD-KALDER MODEL: RADAR
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SIX SIGMA
SIGMA (σ):
Degree of variation (standard deviation); statistical
measure of process capabilities in terms of defects;
SIX SIGMA (6-σ)
Business Definition: A process to improve customer
satisfaction and shareholder value by reducing
variability in every aspect of business.
Technical Definition: A statistical term indicating that
the process has the capability to produce only 0.002
defects per million
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SIX SIGMA
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SIX SIGMA
99% Good (3.8 Sigma) 99.99966% Good (6 Sigma)
20,000 lost articles of mail per hour
(based on 2,000,000/hr)
7 articles lost per hour
Unsafe drinking water for almost 15
minutes each day
1 unsafe minute every 7 months
5,000 incorrect surgical operations per
week
1.7 incorrect operations per week
2 short or long landings daily at an
airport with 200 flights/day
1 short or long landing every 5 years
2,000,000 wrong drug prescriptions
each year
680 wrong prescriptions per year
No electricity for almost 7 hours each
month
1 hour without electricity every 34
years
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SIX SIGMA-PROCESS (DMAIC)
Define – describe the problem and the underlying process
Measure – use measures or metrics to understand performance and the improvement opportunity.
Analyze – identify the true root cause(s) of the underlying problem.
Improve – identify and test the best solution addressing the problem
Control – control the results and maintains the improved state.
Defıne Measure Analyze Improve Control
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SIX SIGMA-DEFINE
Define problem/project
Determine objectives and scope
Define stake holders
Define cost, benefits and risks
Tools:
Surveys, focus groups, process maps, QFD,
benchmarking.....
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SIX SIGMA-MEASURE
Describe the current status (steps, methods,
process flow diagram..)
Decide the key process steps and variables to
measure
Collect data about the process
Refine objectives accordingly
Tools:
Process maps, Data collection, data mining tools,
run charts, …
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SIX SIGMA-ANALYZE
Identify potential causes of problem (X’s)
Analyze cause and effect relationship
Identify significant few causes
Tools:
Cause-effects, tree diagram, brainstorming,
process charts, FMEA, statistics....................
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SIX SIGMA-IMPROVE
Generate potential solutions
Select best solution
Test solution
Implement solution
Tools:
Project management, 7M tools, pilot studies...............
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SIX SIGMA-CONTROL
Create control & monitoring plan
Evaluate improvements
Make adjustment
Revise/develop processes
Standardize solution
Tools:
Work instructions, procedures, training, systems
standards…
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SIX SIGMA-PROCESS