A philosophy that involves everyone in an organization

in a continual effort to improve quality

and achieve customer satisfaction.

Customer satisfaction = Perception - Expectation

Total Quality Management (TQM)

1. Find out what customers want; survey, interview, focused group

2. Design a product that will meet or exceed what customers want. Make it easy to use and easy to produce.

3. Design a production process that make it possible to do the job right at the first time. Determine where mistakes are likely to occur and try to prevent them. When mistakes do occur, find out why, and try to resolve them in a way that they never occur again. Create a mistake-proof process.

4.Keep track of results, use them to improve other parts of the system. Never stop trying to improve.

5.Extend these concept to the whole supply chain; suppliers and distributors.

TQM Approach

• Continual improvement

• Competitive benchmarking

• Employee empowerment

• Team approach

• Decisions based on facts

• Knowledge of tools

• Suppliers quality

Elements of TQM

• Continual improvement; – Improve all factors related to input-process-output. – It covers equipment, material, people, and methods. – Just because there is no problem doesn’t mean it can’t be

improved.

• Competitive benchmarking; – Identify companies that are best in something.– study what they do, learn how to improve your operations. – Need not to be in the same field, Xerox used a mail order

company, to benchmark its order processing.– We could also have internal benchmarking

Elements of TQM

• Employee involvement and empowerment; – Responsibility for improvement and authority to make changes

provides high motivation in workers.– Personal communication in all levels

• Team approach; – Use teams for problem solving.– Take advantage of group synergy. – Promote spirit of cooperation.

• Decisions based on facts – rather than opinions– Statistical thinking

Elements of TQM

• Knowledge of tools; – Pictorial representation– Tabular representation– Simplification

• Supplier quality; – Suppliers are an integral part of the TOM. – Make them small in number with full responsibility. – Develop long term relationships. – Eliminate the need to inspect deliveries from suppliers.

Elements of TQM

• Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs.

• Kaizen: Japanese wordfor continuous improvement.

Kaizen : Continuous Improvement

Plan

Do

Study

Act

The PDSA Cycle : The essence of Kaizen

Conceptual basis for process improvement.

Study a current processThen develop a plan for improvement

Implement the plan in small scale ( on a portion of the system)Document any change made during this phase

Evaluate the results.Check how the resultsmatch the original goals of the plan

If successful communicate the new methods to all related employees. Implement training for new method.

Representing the process with a cycle is to show its continuing nature.

If not successful, develop a new plan

Plan

Do

Study

Act

The PDSA Cycle

Process Improvement Problem Solving

Process improvement is a basic tool in CI, It is composed of process mapping, process analysis, and process re-design.

Process mapping; develop a flow chart for the process; show basic steps, inputs and outputs, people involved, decision made, information required, time, cost, space, waste, turnover, quality, morale.

Process analysis; Is the flow logical? is there any missing step? is there any unnecessary and extra step? could it be eliminated? does it add value? is there any waste? can we reduce the time and cost, combine some steps? 5W2H

Process re-design; document the improvements, measure reductions in time, cost, space, waste, …and improvement in quality, morale.

Process Improvement

Systematic problem solving is a basic tool in Continuous Improvement. Its steps are as follows

• Define the problem and establish an improvement goal

• Collect data

• Analyze the problem

• Generate potential solutions

• Choose the preferred solution

• Implement the solution

• Monitor the solution to see if it accomplishes the goal

Problem Solving

The philosophy of

making each worker

responsible

for the quality of his/her work.

Quality at Source

• Check sheets

• Flowcharts

• Scatter diagrams

• Histograms

• Pareto analysis

• Control charts

• Cause-and-effect diagrams

• 5W2H

Basic Tools for Process Improvement

Billing Errors

Wrong Account

Wrong Amount

A/R Errors

Wrong Account

Wrong Amount

Monday

Check Sheet

A simple formatted page or a table for record and organize data to identify and analyze a problem.Check sheets are designed based on the purpose of the user.The following format is to identify the number, type, and timing of error. After recording, then we should study why they happen.

Check Sheet

The following format is to identify the location of defects on a product ( gloves). After collecting data, then we should analyze the reason for these defects.

flowchart

A pictorial representation of a process.Rectangle for processes or procedures, diamond for decisions or check points, arrows for flow of information or work flow,

Scatter Diagram

Shows the relationship between two or more variables

Humidity

# of

err

ors

/ hr

Fre

qu

ency

Repair time

Histogram

Histogram is useful in getting a sense of the distribution of the variable of interest.

80% of the problems may be attributed to 20% of thecauses.

80% of the problems may be attributed to 20% of thecauses.

Smearedprint

Nu

mb

er o

f d

efec

ts

Offcenter

Missinglabel

Loose Other

Pareto Analysis

970

980

990

1000

1010

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

UCL

LCL

A statistical chart to see whether a process is in control or not.It is similar to Tracking Signal.If the process is in control, then the value of the corresponding variable is around the mean value with random variations.If the variable is out of UCL or LCL, then it is out of control.Also if we could extract a pattern out of it, again it is out of control.In any of the above cases we should check why the process is out of control.

Control Chart (SPC)

• Variable Control Chart– X-bar Chart– R Chart

• Attribute Control Chart– P Chart– C Chart

Control Chart (SPC)

UCL

LCL

LCLLCL

UCLUCL

Process not centeredand not stable

Process centeredand stable

Additional improvementsmade to the process

Tracking Improvements

Effect

MaterialsMethods

EquipmentPeople

Environment

Cause

Cause

Cause

Cause

Cause

CauseCause

Cause

CauseCause

Cause

Cause

Cause and Effect Diagram

Equipment Personnel

Procedure

Material

Other

Aircraft late to gate

Late arrival

Gate occupied

Mechanical failures

late pushback tugWeather

Air traffic

Late food service

Late fuel

Late baggage to aircraft

Gate agents cannot process passengers quickly enough

Too few agents

Agents undertrained

Agents undermotivated

Agents arrive at gate late

Late cabin cleaners

late or unavailable cockpit crews

Late or unavailable cabin crews

poor announcement of departures

weight an balance sheet late

Delayed check-in procedure

Confused seat selection

Passengers bypass checkin counter

Checking oversize baggage

Issuance of boarding pass

Acceptance of late passengers

cutoff too close to departure time

Desire to protect late passengers

Desire to help company’s income

Poor gate locations

DelayedFlightDepartures

Cause and Effect Diagram : Flight Departure Delay

5W2H

•What What is being done?•Why Why it is necessary?•Where Where is it being done?

Why it is done there?Should we do it somewhere else?

•When When it is doneShould we do it at another time?

•Who Who is doing it?Could someone else do it better?

•How How is it being done?Is there a better method?

•How much How much time does it take?How much does it cost?What would the new cost be?