Total Quality Management

• Key concepts• The Cost of Quality• Tools and Techniques • Benefits• Implementation

Whole operation Involved

Quality strategy

Teamwork

Staff Empowerment

Customer Involvement

Supplier Involvement

Total Quality Management

Quality System

Quality Costing

Problem Solving

Quality Planning

Quality Assurance

Quality Control

Statistical Methods

Process Performance

Quality Standards

Error Detection

Rectification

Inspection

Company Wide Quality Control

Quality measured in all areas of the firm

The Cost of Quality

• Elements (prevention, detection, appraisal, internal and external failure, customer loyalty)

• Kaizen TQM always involving everyone, always going forward, a ‘Way of Life’.

• Cost is related to not doing something• Not just a manufacturing initiative

Cost of Quality

The earlier in the process that quality is fixed the lower the overall cost.

(obvious really isn’t it!)

Prevention

Appraisal

External failure

Internal failure

Prevention

Internal failure

Appraisal

External failure

Quality Management Tools

• Pareto principle 80/20• Visual presentation – histograms, scatter diagrams,

control charts• Check sheets• SPC – Statistical Process Control• Cause and effect diagrams – Fishbone / Ishikawa

diagram• Stratification

Beyond Tools to TQM

• Taguichi Quality Loss Function (QLF)• Quality circles• BPR Kaizen

Company Wide Quality Control

• Customer service• Quality of management• Quality of company• Quality of labour• Quality of Materials, techniques, equipment

TQM Implementation

• Top level strategy with management support• Steering Group• Group based improvement (quality circles)• Continuous improvement (Kaizen)• Success recognized• Training, lots of it & continuously• Examples of formats MBNQA, ISO 9001 / BS 5750

Benefits

• Shareholder wealth• Increased job satisfaction (by improved

communication and involvement, better training, pride in work workmanship

• Customer needs are better met• Improved supplier relationship• Corporate image improved• Longer term relationships – customer value

Without TQM

• Uninterested operators• Increased defects in products• Drop in labor efficiency• No quality consciousness (why bother?)• Increased absenteeism• Increased labor turnover

TQM Requires

• Top management commitment• Continuous improvement• All aspects of the business• Long-term commitment

Eight attributes of quality

• Performance• Features• Reliability• Serviceability• Durability• Conformance• Aesthetics

• Perceived Quality

The difference between TQM and non TQM Companies

• IBM in Ontario ordered a batch of components specifying an SQL of 3 defective parts per 1000. When the parts arrived from the Japanese manufacturer they were accompanied by a letter which expressed their bewilderment at being asked to supply defective parts as well as good ones. The letter explained that they had found it difficult to manufacture the defective parts , but indeed had. These 3 defective parts per 1000 had been included and were wrapped separately for the convenience of the customer.

Extra Slides

Ishikawa 4 M’s

Effect

Machines

Methods

Materials

Manpower

Lack of maintenance

Quality Circles

• 5-10 People usually drawn from the same operational area• Meet regularly during work time• Chaired by a deputy, or foreman• Use of SQC methods and problem solving techniques -

Brainstorming and goal orientation• Future problems - failure mode effects analysis• Opportunity for development both formal and through creativity• Management must act on recommendations from the group

Kaizen

• KAIZEN is a Japanese word meaning gradual and orderly, continuous improvement.

• It is a business strategy involves everyone in an organisation working together to make improvements 'without large capital investments'.

• KAIZEN is a culture of sustained continuous improvement focusing on eliminating waste in all systems and processes of an organisation.

• KAIZEN strategy begins and ends with people. Involved leadership guides people to continuously improve their ability to meet expectations of high quality, low cost, and on-time delivery.

Source: www.kaizen-institute.com

Kaizen –The Wet Blanket Approach

• I am too busy to study it • It's a good idea, but the timing is premature • It is not in the budget • Theory is different from practice • Isn't there something else for you to do ? • I think it doesn't match corporate policy • It isn't our business; let someone else think about it • Are you dissatisfied with your work ? • It's not improvement, it's common sense • I know the result, even if we don't do it • I will not be held accountable for it • Can't you think of a better idea ?

Source: www.kaizen-institute.com

Basic tips for Kaizen Activities

• Discard conventional fixed ideas. • Think of how to do it, not why it cannot be done. • Do not make excuses. Start by questioning current practices. • Do not seek perfection. Do it right away even if for only 50% of

target. • Correct it right away, if you make a mistake. • Do not spend money for KAIZEN, use your wisdom. • Wisdom is brought out when faced with hardship. • Ask 'WHY?" five times and seek root causes. • Seek the wisdom of ten people rather than the knowledge of

one. • KAIZEN ideas are infinite.

Source: www.kaizen-institute.com

Pareto Diagrams

Class A Class B Class C Class 'n'

Causes of failure

TotalNumber

of Problems

Class A factors are the 20% of recurring causes resulting in 80% ofall quality symptoms - these are critical and must be reduced.

Total Productive Maintenance

‘Prevention rather than cure’• Seri - Sorting• Seiton - Orderliness• Seiso - Cleaning• Seiketsu - Cleanliness

Taguchi Methods

• Approach pulls quality back to the design stage.• Recognizes quality as societal issue as well as an

organizational one. • Strong on process control