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Total Quality Management
BY-
ABHISHEK K.
AJISHA D.
ANJALI
ANAND MOHAN
AMAL
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Approaches to define Quality
User Based Approach
Defined as Fitness for use
Viewed from users perspective and is dependent onhow well does the product meet needs of the consumer.
Also known as Customer Oriented Approach
Production Based Approach
An outcome of engineering or operational excellenceand is measured in terms of quality of conformance
The producer has specifications and produces theproduct as per the specifications
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Approaches to define Quality
Value Based Approach
Quality is viewed in context of price
Quality is satisfactory, if it provides desired
performance at an acceptable price
Customer looks at the total value proposition
and not the price alone
ice
BenefitsValue
r!
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Attributes of Quality
Performance
Products primary operating characteristics
Features
Augmented product The bells & whistles of theproduct
Reliability
Ability of the product to function at the specified levelof performance
Conformance
Degree to which characteristics of the product meet pre-established standards
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Attributes of Quality
Durability
Length of time a product can be used before itdeteriorates or becomes non functional
Serviceability
Speed, competence & courtesy of providing ASS
Aesthetics
Look, feel sound, taste, smell
Perceived Quality Resulting from advertisement, image, brand name,
earlier use, hearsay
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EVOLUTION of TQM
CRAFTSMEN & ARTISANS(eg. Artists,
Sculptors, working with metals & other materialswho were very Quality-conscious.
TRADESMEN (eg.Masons,Carpenters etc.)
ENGINEERING TRADES & PRACTICES
(eg.Foundry,Smithy, Die-making,Mould-
making,Stamping,Forging,Turning,Milling,
Drilling etc. )
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TQM Evolution
Custom-built Articles/Products having considerable controlover Quality.
Mass- Produced Products with less control over Quality
Quality control Department in Factories.
TQM-based Production facility enhancing theOrganization through Quality techniques to better achieveorganizations goals-eg. Productivity and Profitability withmin.wastage.
ISO Quality Management Systems.
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Evolution of quality Era
91900 1920 1940 1960 1980 1990 2000
Craftsman
Foreman
Inspection
SQC
TQC
TQM
TQC &CWQC
Evolution
Years
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Evolution of quality Means & Focus
10
19751980 1985 1990 1995 2000
Operation Customers Innovations
Quality of
Work life
Quality
Circle
Productivity
Employee
Involvement
Quality
Employees
Empowerment
Total
Quality
Self DirectedTeams
TQC/TQM
Self
Directed/Managed
Teams
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In TQM,
Total Involvement of all levels in the
organization
Quality Conformance to agreed upon
requirements
Management Best use of available resources to
achieve Total Quality
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12
DefinitionTotal Quality Management (TQM) is
a management strategy aimed at
embedding awareness ofquality in all
organizational processes.
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ExplanationTQM requires that the company
maintain this quality standard in all
aspects of its business.This requires ensuring that things
are done right the first time and that
defects and waste are eliminated
from operations.
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Whats the goal of TQM?
Do the right
thingsrightthe first
time,everytime.
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TQM is a comprehensive management
system which
Focuses on meeting owners/customers needs, by
providing quality services at a reasonable cost.
Focuses on continuous improvement.
Recognizes role of everyone in the organization.
Views organization as an internal system with a
common aim. Focuses on the way tasks are accomplished.
Emphasizes teamwork
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TQM focuses on:-
CUSTOMERSATISFACTION
ORGANISATION
STRUCTURE
EMPLOYEEINVOLVEMENT
QUALITYCIRCLES
TRANING
LEADERSHIPQUALITYPOLICY
QUALITY COST
REWARD
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TQM beliefs
Following are the universal Total Quality Managementbeliefs: Owner/customer satisfaction is the measure of quality
Everyone is an owner/customer. Quality improvement must be continuous.
Analysis of the processes is the key to quality improvement.
Measurement, a skilled use of analytical tools, and employeeinvolvement are critical sources of quality improvement ideas andinnovations
Sustained total quality management is not possible without active,visible, consistent, and enabling leadership by managers at alllevels
It is essential to continuously improve the quality of products andservices that we provide to our owners/customers
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Gurus of TQM
Dr. W E Deming Dr. J M Juran Dr. Philip Crosby
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Gurus of TQM
Dr. Kaoru IshikawaDr. Genichi Taguchi Dr. Masaaki Imai
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Gurus of TQM
Dr. Shigeo Shingo Dr. Yoshio Kondo Dr .Armand V. Feigenbaum
Dr. James Harrington
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The Deming philosophy
14 points for management:
1. Create and publish to all employees astatement of the
aims and purposes of the company. The managementmust demonstrate their commitment to this statement.
2. Learn the new philosophy.
3. Understand thepurpose of inspection to reduce the costand improve the processes.
4. End the practice of awarding business on the basis ofprice tagalone.
5. Improve constantly and forever the system of productionand service.
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The Deming philosophy
6. Institute training
7. Teach and institute leadership.
8. Drive out fear. Create an environment of innovation.
9. Optimize the team efforts towards the aims andpurposes of the company.
10. Eliminate exhortations for the workforce.
11. Eliminate numerical quotas for production.
12. Remove the barriers that robpride of workmanship.13. Encourage learning and self-improvement.
14. Take action to accomplish the transformation
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W E Deming PDCA Cycle
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Seven Deadly Sins
Lack of vision and mission as regards quality &process improvement
Emphasis on short term profit
Personal performance appraisal systems
Mobility of management
Running a company on visible figures alone
Customer satisfaction level
Employee morale Relationship with your vendors
Confidence the market has in your company
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Seven Deadly Sins
Excess non-productive expenditure
Excessive cost of warranty
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J M Juran
Developed the idea of trilogy
Quality Planning
Quality Improvement
Quality Control
Conformance to specifications is necessary but not
sufficient requirement of a product. Fitness for use by the consumer of the targeted
market segment is an essential requirement in
addition to conformance
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Jurans 10 Points
Build awareness of need and opportunities forimprovement
Set goals for improvement
Organise the overall improvement programme Provide the training
solve problems through project methodology
Report progress
Give recognition
Communicate results
Keep score
Institutionalise the improvement process
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Philip Crosby
Do it right the first time
Zero Defects
Absolutes of QM Quality is defined as conformance to requirements, not as
'goodness' or 'elegance'
The system for causing quality is prevention, not appraisal Quality is Free
The performance standard must be Zero Defects, not "that's closeenough"
The measurement of quality is the Price of Non-conformance, notindices.
Cost of quality is only the measure of operational performance
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Philip B. Crosbys 14 Points
Make it clear that management is committed to quality.
Form quality improvement teams with representativesfrom each department.
Determine where current and potential quality problems
lie.
Evaluate the cost of quality and explain its use as amanagement tool.
1)
2)
3)
4)
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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 thequality improvement programme.
5)
6)
7)
8)
Philip B. Crosbys 14 Points
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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. Crosbys 14 Points
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Establish quality councils to communicate on a regular
basis.Do it all over again to emphasise that the quality
improvement programme never ends.
13)
14)
Philip B. Crosbys 14 Points
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Quality TQM principles
People will produce quality goods and services when themeaning of quality is expressed daily in their relations.
Inspection of the process is as important as inspection of
the product. Probability of variation, can be understood by scientific
methods.
Workers work in the system to improve thesystem; managers work on the system to improve the
system. Total quality management must be consistentlytranslated into guidelines provided to the wholeorganization.
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Envision what you desire , but start working fromwhere you actually are.
Cleaner site and safer place to work is alsoimportant.
Accept the responsibility for quality.
Use the principle of get it right, the first time,
every time. Understand that quality is a journey, not a
destination
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How to begin Continuous improvement
Start setting goals, and start meeting the goals you haveset.
Management indicate complete commitment to Continuous
Improvement (CI). Identify stages
Establish responsibility
Set the datum
Pre-Plan
Regard each project as part of a cycle Each worker regard himself or herself as a quality
inspector of his or her task
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Reasons to Begin Now
The reasons to begin establishing quality improvementprocesses are several.
For Management
Provides an invaluable problem-solving tool. Dispels negative attitudes.
Management becomes more aware of individuals workenvironment.
Employees gain a sense of participation.
Increases efficiency and productivity.
Reduces turnover rate, tardiness, costs, errors, and scrap &rework.
Improves communications within and among all departments.
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Develops management skills that were nevertaught.
Develops overall company awareness andcompany unity.
Rearranges priorities which once seemed locked inplace.
Builds loyalty to the company. Reveals training requirements in all departments.
Lessens the number of defects
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For employee:
Provides opportunity for personal growth and development.
Increases innovation.
Employees use their knowledge and skills for well-informed
decision- making.
Encourages decision-making at the most appropriate level.
Increases motivation and acceptance of new ideas
Increases job satisfaction.
Recognizes employees for their talents. Develops mutual respect among employees, management and
customers.
Promotes teamwork
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Steps in implementing TQM
Obtain CEO Commitment
Educate Upper-Level Management
Create Steering Committee
Outline the Vision Statement, Mission
Statement & Guiding Principles
Prepare a Flow Diagram of Company Processes
Focus on the Owner/Customer (External) &
Surveys
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Consider the Employee as an Internal
Owner/customer
Provide a Quality Training Program Establish Quality Improvement Teams
Implement Process Improvements
Use the Tools of TQM
Know the Benefits of TQM
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Obtain CEO Commitment.
Educate upper level management.
To educate the upper level management we have toconduct the following: Undergo quality training
Commit to TQM and provide the necessary resources.
Assist in the development.
Serve as a model of expected behaviour.
Actively lead the way.
Drive fear out of the organization
Provide suitable recognition.
Drive decision making and problem resolution
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Create a steering committee.
Upon completion of upper managements
commitment and training, a steering committee
must be created to guide the company through theprocess of implementing TQM.
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Steering committee roles are.
Review and evaluate customer surveys.
Determine processes to be improved.
Appoint task process improvement teams.
Monitor process improvement.
Oversee employee recognition for quality
improvement. Communicate successes and progress
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Outline the Vision Statement, Mission Statement, & Guiding
Principles
Establishing guiding principles:
Important principles to consider including in thecompanys vision statement, mission statement, andguiding principles are as follows:
Owner/customer Satisfaction. Improved Safety.
Elimination of errors and defects.
Doing things right, the first time.
Reputation as the best in the field. Continuous Improvement.
Employee Empowerment
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Prepare a Flow Diagram of Company
Processes:
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Focus on the Owner/Customer (External) &
Surveys Focusing on a customers concerns Several areas to survey, and
to take care to provide or honour, are listed here:
Safe operating procedures
Accident experience Attitude
Professional competence
Technical competence of the work force
Overall responsiveness to owner/customer requests
Planning Condition of equipment
Timeliness
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Successful TQM companies have asked their
owner/customers the following
questions:
How well do we deliver what we promise?
How often do we do things right the first time?
How often do we do things right on time?
How quickly do we respond to your request? How accessible are we when you need to contact us?
How helpful and polite are we?
How well do we speak your language?
How well do we listen to you?
How hard do you think we work at keeping you a satisfied owner/customer?
How much confidence do you have in our products or services ?Etc
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Consider the Employee as an Internal
Owner/Customer
In order to conduct an analysis of the internal processesfollowing steps should be applied:
List several of your internal owners/customers withinyour company
Choose one of these owners/customers to focus on forthe application of this technique
Determine the Output s (products, services, information)that must be provided to this internal owner/customer
Determine the work Processes your company uses to
produce these Outputs Learn how your customers expectations are met and
how satisfaction is measures
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Provide a Quality Training Program
The successful TQM company provides training toemployees in the order illustrated in the list below:
Upper Management
Remaining Management
In-House Trainers & Facilitators
Front-Line Supervisors
Non-Supervisory Employees Team Training
Training of Subcontractors & Suppliers
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Establish quality improvement teams
A quality improvement teams focuses onfollowing areas for improvement:
Increased Employee Value
Informed Employees
Technical Training
Quality Training
Employee Suggestions
Employee Participation
Higher Quality of Artistry
Personal Development
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The quality improvement team tasks are:
Identify the customers of the process
Determine customer expectations
Flowchart the process
Identify all of the inputs and interfaces
Identify the output(s)
Systematically review the procedures currentlybeing used in the process
Collect and analyze available quantitative data
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Determine the need for additional data
Identify the problem(s)
Determine the root cause of the problem Determine potential solutions
Select a trial solution
Present recommendations to the steering committee
Implement the solution on a pilot-project basis Analyze the data to discern if there has been
improvement
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Implement Process Improvements:
The structure approach to process improvement is as follows:
Problem is brought to the attention of the steering committee
Steering committee forms a team to examine the process andmake necessary recommendations for improvement
Team meets, reviews its mission, and determines how oftenit will meet
Training is initiated for team members
Team meets weekly for an hour or two to analyze the
problem and develop a solution Solution is initiated on a pilot basis
Results of pilot study are examined
Solution is implemented company-wide
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Use of Tools:
Seven classical tools of quality and processimprovement, plus one, are presented below.
Flow chart: Portrays all the steps in a process.Helps understand the process.
Cause and Effect Diagram: Portrays possiblecauses of a process problem. Helps determineroot cause
Control Chart: Shows if a process has too muchvariation
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Seven Classical Tools (Contd)
Histogram : Portrays the frequency of occurrence.Check Sheet : Tabulates frequency of occurrence.
Pareto Diagram : Visually portrays problems andcauses in order of severity or frequency. Helpsdetermine which problem or cause to tackle first.
Scatter Diagram : Helps determine if two variablesare related.
Run Chart : Shows variation and trends with time.Provides baseline data, and helps to determine if a
process is improving or not
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Benefits of Quality
Higher customer satisfaction
Reliable products/services
Better efficiency of operations
More productivity & profit
Better morale of work force Less wastage costs
Less Inspection costs
Improved process
More market share
Spread of happiness & prosperity Better quality of life for all.
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The cost of quality:
Why do we implement the information related to
TQM into our companies? To make more money
and/or to stay in business. If you dont implementTQM/CI, it will cost your firm money.
Cost of Quality=Cost of Non-conformance +Cost Prevention
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What are the benefits of TQM? (contd.)
The Cost of non-conformance
Omissions
Errors
Poor Product Quality
Being Late
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The Cost of nonconformance lead us to
Rework
Recalls
Expediting
Removal of punch list items
Time extensions
Litigation costs and damages Penalties and liquidated damages
Increased insurance costs
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Whats it going to cost us to do TQM? you ask.
Well, what is it costing you now NOT to do it? . . .
What is your cost of quality? IF you dont havethe real facts, the truth is you really dont know,
. . . but you probably sense what your cost of
quality is costing you. You can feel it, and its not
a comfortable feeling
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The four types of quality cost are:
Prevention Cost
Cost associated with time spend in planning the
quality system Consists of the following
Process control costs
Information systems costs Training Costs
General Management cost
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Appraisal Costs
Cost incurred on measurement & analysis of data in order todetect & correct problems
Consist of
Cost of maintaining, testing & inspection
Process control costs Internal Failure Cost
Incurred due to non-conformance
Include
Scrap and rework costs
Cost of corrective action
Downgrading costs
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External Failure Cost
Occur when poor products reach customer
Include
Costs of customer complaints and returns
Product recall costs
Warranty claims costs Product liability costs
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Economics of Quality of Conformance
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Internal & External Failure Cost
Prevention & Appraisal Cost
Optimum Total Cost
Total Cost
Obstacles
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Obstacles
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Top management commitment
Changing Organization Culture
Improper planning
Continuous Training & Education
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Obstacles
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Organization Structure & Departments
Datas & Facts For Effective Decisions
Internal & External Customers-Dissatisfaction
Empowerment & Teamwork
Continuous Improvement
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EXAMPLE
Itisthe aim ofABB Kent MetersLtd tosupplyproducts and
services whichcompletelysatisfyourcustomers.Kent MetersMission Statement
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THANK YOU
Quality is a Journey,
not a Destination