Handout Lesson Plan & Unit 1 Ge2022 Tqm

LESSON PLANGE 2022-Total Quality Management (TQM)

Presented by:-Gnanasekharan

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TOPICS – Total Quality Management

INTRODUCTIONTQM PRINCIPLESTQM TOOLS & TECHNIQUES ITQM TOOLS & TECHNIQUES IIQUALITY SYSTEMS

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TOPICS: Details

INTRODUCTION TQM PRINCIPLES TQM TOOLS &

SYSTEMS I TQM TOOLS &

SYSTEMS II QUALITY SYSTEMS

Need for quality Evolution of quality Definition of quality Dimensions of

manufacturing and service quality

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TOPICS: Details




Basic concepts of TQM

Definition of TQM TQM Framework Contributions of

Deming, Juran and Crosby

Barriers to TQM.4

TOPICS: Details




Leadership Strategic quality planning

Quality statements Customer focus Customer orientation Customer

satisfaction

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TOPICS: Details




Customer complaints

Customer retention Employee

involvement Motivation Empowerment

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TOPICS: Details




Team and Teamwork Recognition and

Reward Performance

appraisal Continuous process

improvement

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TOPICS: Details




PDSA cycle 5S Kaizen Supplier

partnership Partnering Supplier selection Supplier Rating

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TOPICS: Details




The seven traditional tools of quality

New management tools

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TOPICS: Details




Six-sigma: Concepts, methodology, applications to manufacturing, service sector including IT

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TOPICS: Details




Bench marking– Reason to bench mark, Bench marking process

FMEA – Stages, Types.

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TOPICS: Details




Quality circles Quality Function

Deployment (QFD) Taguchi quality

loss function TPM Concepts,

improvement needs

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TOPICS: Details




Cost of Quality – Performance measures

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TOPICS: Details




Need for ISO 9000 and other quality systems

ISO 9000:2000 Quality System- elements

Implementation of Quality System

Documentation14

TOPICS: Details




Quality auditing QS 9000 ISO 14000-

concepts, requirements and benefits

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TOPICS: Details




Case studies of TQM implementation in manufacturing and service sectors including IT.

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TQM

"Do you know what the largest room in the world is?... The room for improvement”

- Anonymous

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Need for quality awareness

The importance of quality can be stated as follows:

“ No quality, no sales. No sale, no profit. No profit no job.”

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The construction industry often expresses this concept as the “1-10-100 Rule.”

This widely used rule of thumb suggests that a quality problem costing Rs.100 to resolve in the field

would cost only Rs.10 to correct if discovered during in-house design review and

only Rs.1 to prevent in the first place. 19


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Need for quality awareness Pre Industrial Revolution, quality did not pose any

problem; emphasis was on individual craftsmanship, workmanship and skills.

Era of mass production initiated the industrial revolution and quality started getting attention

Quality has progressed from stages of playing a purely reactive role (inspection) to its present prominence in shaping the competitive strategy of business

Question of survival in an intense competitive environment.

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Need for quality awareness Due to globalization, barriers, which existed in many world

economies, have broken down and the whole world, economy-wise, has shrunk as one big market allowing almost free exchange of goods and services.

Suppliers now not only face competition from domestic suppliers but also from the international ones.

We are in the era of intense competition. Just conforming to specifications and satisfying the needs of the customer is no more enough. The emphasis now is on delighting and winning over customers

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Need for quality awareness Increasing customer consciousness. Customers want

value for money. Government laws and regulations for protection of

consumer's interests. The needs of the customers also keep on changing fast.

Unless the suppliers are fast enough and are capable of satisfying the changed needs, they just lose the customers, ultimately resulting in a reduction in their market share.

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Need for quality awareness Need for earning profit instead of making profit: Earlier a company’s selling price was decided by adding

margin to its cost thus ensuring a healthy profit. Now due to competition prices are determined by the

market forces and not by the supplier. At the same time the prices of materials, energy and

labour are ever increasing. The only way a company could hold its price and make

profits is by reducing quality cost, i.e. not making non-conforming products 24

Need for quality awareness Organizational issues forcing need of TQM: The quality of an organization is largely influenced by the

quality of its leader. Skilled Human resource is receiving increasing attention. The advent of IT has an impact on the total quality.

It intensifies the need for everyone in the organization to be computer literate.

The speed, directness and immediacy of information exchange, at all levels and between organizations and key external stakeholders (suppliers and customers), is redefining business relationship and responsibilities. 25

Evolution of Quality awareness

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Evolution of Quality awareness (cont..)

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BENEFITS OF QUALITY TO A FIRM:

It gives a positive company image It improves competitive ability both nationally and internationally It increases market share, which translates into improves profits Overall, it reduces costs which translate into improved profits. It reduces or eliminates product liability problems avoiding

unnecessary costs. It creates an atmosphere for high morale which improves

productivity.

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BENEFITS OF QUALITY TO A FIRM:

QUALITY now stands for Q- Quest for excellence; U- Understanding customer’s needs; A-Action to achieve customer’s appreciation; L – Leadership- determination to be a leader; I- Involving all people; T- Team spirit to work for a common goal;Y- Yardstick to measure progress

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Evolution of Quality Management

1900’s Frederick Winslow Taylor adopted scientific methods by observing the best way to do a job. He insisted on quality through product inspection.

1924 W Shewhart introduced statistical charts to monitor production.

1930 H F Dodge and H G Romig introduced sampling

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Evolution of Quality Management (cont.)

1950’s W Edward Deming introduced Statistical Quality Control (SQC) to Japanese manufacturers to help the Japanese rebuild their economy. Joseph Juran began his “cost of quality” approach.

Mid 1950’s the concept of “Total Quality Control” was introduced. The concept of quality was enlarged from manufacturing to include product design and incoming raw material

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1960’s Philip Crosby introduced the concept of “zero defects”

1970’s Quality Assurance methods were introduced in the services industries viz. Banking, Health care, etc.

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Late 1970’s the approach of finding and correcting defects was changed to a more pro-active approach of focusing on preventing defects from taking place.

This approach linked quality to productivity and profits. It is at this stage that the concept of quality took a “total” view.

It focused on customer satisfaction and involved all levels of the management including the workers.

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Between the 1970’s and 1980’s consumers noticed the difference in the quality of goods manufactured from Japan. The reason that Japan made big strides in the field of quality was primarily due to the guidance of W Edwards Deming.

From the 1980’s and through the 1990’s interest in quality grew rapidly.

Today quality management and control is recognized as the foundation of business competition. 34

What is “quality”? The word 'quality' is the most commonly used but is

one of the most difficult words to define properly. We usually think “quality” in terms of an excellent

product or service that fulfills or exceeds our expectations.

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What is “quality”? When a product surpasses a customer’s

expectations that is considered as quality. Though “quality” is based on perception, it can be

quantified as follows:

Q= P / Ewhere Q= quality

P= performanceE= expectations

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What is “quality”? Quality is a predictable degree of uniformity and

dependability, at low cost and suited to the market (Deming)

Quality is fitness for use (Juran) Quality is conformance to requirements (Crosby) Quality is the (minimum) loss imparted by a product

to society from the time the product is shipped (Taguchi)

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What is “quality”? Quality is, in its essence, a way of managing the

organisation (Feigenbaum) Quality is correcting and preventing loss, not living

with loss (Hoshin)Each of the above definitions (and several others by various authors) holds a strong but limited vision of quality.

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What is “quality”?The universally accepted definition of 'quality',

which is provided to us by ISO is as follows:"Quality is the totality of characteristics of an entity that bear on its ability to satisfy stated and implied needs”

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Seven faces of Quality

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Performance Features Reliability

Conformance

Durability

Serviceability

Aesthetics

Dimensions of Quality

David Garvin identified his “nine dimensions of quality” which he maintained covered the meaning of quality to managers, operators and customers.

By accepting that customers have a different perception of quality than that of a manager, quality effort can be focused.

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Dimensions of Quality – Product (slide projector)

Performance: Primary product characteristics viz. brightness of the picture

Features: Secondary characteristics, added features viz. remote control

Conformance: Meeting specifications or industry standards, workmanship

Reliability: Consistency of performance over time, average time for a unit to fail

Durability: Length of life, toughness in use, service frequency etc.

Service: Resolution of problems & complaints; ease and cost of service.

Response: Human-to-human interface, such as courtesy of the dealer.

Aesthetics: Sensory characteristics, exterior finish, appearance and impression.

Reputation: Past performance and other intangibles, such as being ranked first.

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Dimensions of Quality - Product Performance (will the product do the intended job?) Features (what does the product do?) Conformance to std. (whether the product meets

the specifications?) Reliability (how often the product fails?) Durability (how long does the product last?) Serviceability (how easy it is to repair the product?) Response (how quick is the response to

complaints?) Aesthetics (what does the product look like?) Reputation (what is the reputation of a company or

its products?)43

Evans and Lindsay list of 8 service dimensions

Time TimelinessCompletenessCourtesyConsistencyAccessibility & ConvenienceAccuracyResponsiveness

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The most important dimensions of service quality include the following; you may remember the most important ones by RATER:• Reliability: How much reliable is the service provider?

• Accessibility and convenience: Is the service easy to obtain?

• Timeliness: Will a service be performed when promised?• Completeness: Are all items in the order included?• Consistency: Are services delivered in the same fashion for

every customer, and every time for the same customer?• Tangibility: after the service is over, is there any thing to

take home to remind the service experience?• Empathy or Courtesy: Do frontline employees greet each

customer cheerfully?• Responsiveness: Can service personnel react quickly and

resolve unexpected problems? 45

Dimensions of Quality - Service

ReliabilityResponsivenessCompetenceCourtesyCommunicationCredibilitySecurity

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Definition of TQM International Organization for Standardization (ISO)

TQM is a "management approach of an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society".

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Definition of TQM

“An organizationwide commitment to infusing quality into every activity through continuous improvement”

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Definition of TQM

“TQM covers all parts of the organization. For an organization to be truly effective, every single part of it, each department, each activity, each person and each level must work properly together, because every person and every activity affects and in turn is affected by others.”

A Muhlemann and J Oakland49

Therefore, TQM is..

TQM is defined as both a philosophy and a set of guiding principles that represent the foundation of continuously improving organization.

It is the application of quantitative methods and human resources to improve all the processes within an organization and exceed customer needs now and in the future.

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Basic approach of TQM ..

1. A committed and involved management to provide long-term top-to-bottom organizational support.

2. An unwavering focus on the customer, both internally and externally

3. Effective involvement and utilization of the entire work force

4. Continuous improvement of the business and production process

5. Treating suppliers as partners6. Establish performance measures for the

processes51

New and old cultures ..

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Quality element Previous state TQM

Definition Product-oriented Customer-oriented

Priorities Second to service & cost First among equals of service & cost

Decisions Short-term Long-term

Emphasis Detection Prevention

Errors Operations System

Responsibility Quality Control Everyone

Problem Solving Managers Teams

Procurement Price Life-cycle costs, partnership

Manager’s role Plan, assign, control and enforce

Delegate, coach, facilitate and mentor

Gurus

Principles & practices

Tools & techniques

Customer

Approach: Continuous Process ImprovementMeasure: Performance measures

People & relationship:•Leadership•Customer Satisfaction•Employee Involvement•Supplier Partnership

•Shewhart,•Deming•Juran•Feigenbaum•Ishikawa•Crosby•Taguchi

•Benchmarking•Information Technology•Quality Management Systems•Environmental Mgt. Systems•Quality Function Deployment•Quality by Design•Failure Mode & Effect Analysis•Product & Service Liability•Total Productive Maintenance•Management Tools•Statistical Process Control•Experimental Design•Taguchi Quality Engineering

Product or service

realization

TQM Framework

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Contributions by Walter Edwards Deming Dr. W. Edwards Deming: (1900-1993)

is considered to be the Father of Modern Quality

His contributions can be grouped under the following four topics:

1. Deming’s 14 points on route to quality

2. Deming Cycle (PDCA Cycle)3. Seven deadly diseases of

Management4. System of profound knowledge

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Contributions by Deming Deming, an American, worked in the 1930s with Walter

A. Shewhart at Bell Telephone Company. Shewhart, a statistician who had the theory that

product control could best be managed by statistics. He developed a statistical chart for the control of product variables.

Deming developed a process, based on Shewhart's, using statistical control techniques that alerted managers of the need to intervene in the production process.

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Contributions by Deming Deming utilized the statistical control techniques

during World War II while working on government war production.

In 1947 Douglas MacArthur sent Deming to Japan to help the war-devastated Japanese manufacturing plants.

He introduced these "statistical process control" methods in a series of lectures on statistical methods to Japanese businessmen and engineers.

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Contributions by Deming Deming’s philosophy went beyond statistical quality

control and encouraged building quality into the product at all stages.

Japanese realized that: quality improves, costs go down and productivity goes up; this leads to more jobs, greater market share, and long-term survival.

Deming stressed worker pride and satisfaction and considered it management's job to improve the process, not the worker.

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Contributions by Deming Quality circles, introduced by Deming, whereby

employees meet regularly in groups to comprehensively discuss product quality.

The GDP in Japan rose steadily from 1960s by more than 10 percent per year.

By 1951 the Japanese had named their quality prize in his honor.

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Contributions by Deming Deming emphasized improving quality of the

product as more important than short-term financial goals.

He de-emphasized quantity, and emphasized quality

Deming believed that "statistical process control" was an invaluable instrument in the quest for quality

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Contributions by Demingcreate ACE, improve BID, eliminate ERIA (rhyming like area)

1. Create constancy of purpose2. Adopt the new philosophy3. Cease dependence on inspection to achieve quality:4. End the practice of awarding business on the basis of

price tag5. Improve constantly and forever the system of production

and service6. Break down barriers between departments7. Institute training on the job.8. Institute leadership.

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Contributions by Demingcreate ACE, improve BID, eliminate ERIA (rhyming like area)

9. Drive out fear, create trust & create climate for innovation10. Eliminate slogans, exhortations and targets for the

workforce11. Eliminate work standards (quotas) on the factory floor12. Remove barriers to pride of workmanship13. Institute a vigorous program of education and self-

improvement for everyone14. Take action to accomplish the transformation.

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Contributions by Deming1. Create constancy of purpose2. Adopt the new philosophy3. Cease dependence on

inspection to achieve quality:4. End the practice of awarding

business on the basis of price tag

5. Improve constantly and forever the system of production and service

6. Breakdown barriers between departments

7. Institute training on the job.

An organization must define its values, mission and vision of the future to provide long term direction for its management and employees.

Organizations should constantly improve the design of their products and services.

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inspection to achieve quality:4. End the practice of awarding





Old methods of management built on adversial relationship will not work in today’s global environment.

Companies must take a customer-driven approach based on mutual co-operation between labour and management and a never-ending cycle of improvement.

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inspection to achieve quality4. End the practice of awarding





Quality must be designed and built into the processes.

Prevent defects rather than attempt to fix after occurence.

Workers must take responsibility for their work rather than leave the problems for the inspectors.

Managers must understand the concept of variance and seek to reduce the common cause of variation. 65







Cost minimization without regard to quality would lead to additional expenses by way of rework, replacement, scrap, etc.

Deming urged businesses to establish long term relationships with a few suppliers leading to loyalty and opportunities for mutual improvement.

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Improvements are necessary in both design and production.

Improved design comes from understanding customer needs through continual market surveys and other sources of feedback.

To build a system that can consistently produce a quality product, managers and employees must search continuously ways to improve quality and productivity.

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Interdisciplinary teams can enhance quality and effectiveness of efforts to design and build products as compared with a strictly functionally oriented process.

Team work helps to break down barriers between departments and individuals.

To overcome the barriers between individuals, managers must encourage team work by assigning people to teams and changing the performance measurement system to reward group performance rather than individual results.

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For continuous improvement, both management and workers require proper tools and knowledge.

Providing training not only brings about improvement in quality and productivity but also improves the workers’ morale.

Training at all levels is a necessity not optional.

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Contributions by Deming8. Institute leadership.9. Drive out fear9. Eliminate slogans, exhortations

and targets for the workforce10. Eliminate work standards (quotas)

on the factory floor11. Remove barriers to pride of

workmanship12. Institute a vigorous program of

education and self-improvement13. Accomplish the transformation.

The job of managers is leadership, not supervision.

Superiors and managers must see themselves as teachers, coaches and facilitators who support the activities in immediate contact with process problems.

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Contributions by Deming8. Institute leadership.9. Drive out fear10. Eliminate slogans, exhortations

and targets for the workforce11. Eliminate work standards

(quotas) on the factory floor12. Remove barriers to pride of



Deming identified fear as a major obstacle to improve efficiency and effectiveness and a major barrier to change and survival.

Workers are afraid to report quality problems because they might not meet their quotas or they might be blamed for the problems in the system.

Managers must create an environment that encourages people to ask questions, report problems and try new ideas.

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Contributions by Deming

8. Institute leadership9. Drive out fear10. Eliminate slogans, exhortations





Quality problems usually come from limits in the current system.

Rather than using promotional messages designed to urge workers to work harder, managers should give them the tools and training they need to work smarter.

Motivation can be better achieved from trust and leadership than from slogans and goals.

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Standards and quotas are born in short-term perspectives and create fear of punitive action for achieving them.

Workers may short-cut quality to reach the numerical quotas.

Unreasonable quotas cause fear and frustration and leave room for improvement.

TQM sets one ultimate task for any employee: i.e. to produce quality products. 73







Employees are often not recognized as valuable human resources of the organization.

Workers are given monotonous tasks, provide with inferior machines, tools or materials, asked to work at odd hours and on holidays to make up for the production delays and so on

Under these circumstances many individuals cannot take pride in their work.

Deming believed that one of the barriers to pride in workmanship is performance appraisal which destroys teamwork.74







Investment in training represents the firm’s ongoing commitment to its employees.

Continual training keeps the work force up-to-date with information about new developments.

Developing the worth of the individual employee is a powerful motivation method

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Top management’s action communicate the true importance of quality and TQM throughout the firm.

According to Deming 85% of quality problems could be traced to the management while the workers are responsible for the remaining 15%.

For TQM to succeed, a firm’s top managers must publicly demonstrate their vigorous commitments to ensure continuous quality improvement and innovation and they must openly practice what they preach. 76

Contributions by Deming- PDCA Cycle

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PLAN: Plan ahead for change. Analyze and predict the results.

DO IT: Execute the plan, taking small steps in controlled circumstances.

STUDY (CHECK): Study the results. ACT: Take action to standardize or improve the

process.


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PDCA Cycle repeated to create continuous improvement

Time

Per

form

ance

“Continuous”improvement

Plan

Do

Check

Act

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Contributions by Deming- PDCA cycle

PlanDoCheckAct

The team selects a process that needs improvement, documents the selected process, sets qualitative goals for improvements and discusses various ways to achieve the goals.

After assessing the benefits and costs of the alternatives, the team develops a plan with quantifiable measures for improvement. 84

Unit II – Contributions by Deming- PDCA cycle

PlanDoCheckAct

The team implements the plan and monitors progress.

Data are collected continuously to measure improvements in the process.

Changes if any, in the process are documented and further revisions are made as needed.

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PlanDoCheckAct

The team analyses the data collected during the “do” step to find out how closely the results correspond to the goals of the “plan” step.

If major shortcomings exist, the team may have to re-evaluate the plan or stop the project.

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PlanDoCheckAct

If the results are successful, the team documents the revised process so that it becomes the standard procedure for all who may use it.

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Unit II – Contributions by Deming- Seven deadly diseases (LER- SEE)

Lack of consistency of purpose (1)

Emphasis for short term profits (2)

Reliance on performance appraisal and merits (11)

Reliance on financial figures (4) & (11)

Staff mobility Excessive medical costs Excessive legal costs.

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Unit II – Contributions by Deming-System of Profound Knowledge

Appreciation for a system:

Knowledge of statistical theory

Theory of knowledge Knowledge of

Psychology

The need for managers to understand the relationships between functions and activities.

The long term aim is for everyone to win- employees, shareholders, customers, suppliers and the environment.

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Psychology

Knowledge and understanding of variation, process capability, control charts, interactions and loss functions

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Psychology

As all plans require prediction based on historical information, the theory must be understood before it can be successfully copied

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Psychology

The understanding of human interactions, how people are motivated and what disillusions them.

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Deming on Slogans: (useful and constructive announcement)

Better maintenance Better training Better purchased material More statistical aid Never ending improvement Long-term survival not short-term profits Work smarter, not harder

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Unit II – Contributions by Dr. Juran Dr. Joseph Juran was born in

Romania and emigrated to America. After Deming he has had the greatest impact on the theory and practice of quality management. Like Deming he had taught quality principles to the Japanese in the 1950s.Juran’s contributions can be studied under the following six topics

Internal Customer Cost of quality Quality trilogy Juran’s 10 steps for quality improvement The breakthrough concept 94

Juran’s contributions

Juran, like Deming, went to Japan in 1954 and assisted the Japanese to achieve quality.

Like Deming, Juran emphasized planning, organizing and controlling. However he emphasized customer satisfaction more than Deming did and focused on management and technical methods rather than worker satisfaction.

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Juran most influential book Quality Control Handbook (later called Juran's Quality Handbook)was published in 1951 and became a best seller.

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Juran tried to get organisations to move away from the traditional manufacturing-based view of quality ‘as conformance to specification’ to a more used based approach, for which he created the phrase ‘Fitness for Use’.

He pointed out that a dangerous product could conform to specification but would not be fit for use.

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Juran was concerned with management activities and the responsibility for quality, but was also concerned about the impact of individual workers and involved himself to some extent with the motivation and involvement of the work force in quality improvement activities.

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Juran’s contributions INTERNAL CUSTOMER

At the first level a user may be an internal customer, another unit or person in the organization who is dependent on you to do his or her job.

The more we understand the needs of our downstream internal customers, the better our process works.

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Juran’s contributions –COST OF QUALITY What is the Cost of Quality? The cost of ensuring that the job is done right and

the cost of not doing the job right. Quality costs are the sum of money spent on

ensuring that customer requirements are met and also the costs wasted through failing to achieve the desired level of quality.

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Juran’s contributions –COST OF QUALITY What is the Cost of Quality? Thus quality cost is the cost of not meeting the

customer’s requirement, i.e. the cost of doing things wrong. It’s a term that’s widely used – and widely misunderstood.

The “cost of quality” isn’t the price of creating a quality product or service. It’s the cost of NOT creating a quality product or service.

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Juran’s contributions –COST OF QUALITY Every time work is redone, the cost of quality

increases. Obvious examples include:

The reworking of a manufactured item. The retesting of an assembly The rebuilding of a tool The correction of a bank statement The reworking of a service; viz. the

reprocessing of a loan The replacement of a food order in a restaurant

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Juran’s contributions –COST OF QUALITY Research shows that the costs of poor quality can

range from 15%-40% of business costs (e.g., rework, returns or complaints, reduced service levels, lost revenue).

Most businesses do not know what their quality costs are because they do not keep reliable statistics. Finding and correcting mistakes consumes an inordinately large portion resources.

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Juran’s contributions –COST OF QUALITY Typically, the cost to eliminate a failure in the

customer phase is five times greater than it is at the development or manufacturing phase.

Effective quality management decreases production costs because the sooner an error is found and corrected, the less costly it will be.

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Juran’s contributions –COST OF QUALITY

Quality/Cost analysis is a classic tool in quality engineering. Costs are broken into

i. Cost of prevention,ii. Cost of appraisal iii. Cost of Internal failuresiv. Cost of External failures

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1) Cost of prevention

2) Cost of appraisal

3) Cost of Internal failures

4) Cost of External failures

Costs that are incurred on preventing a quality problem from arising. To prevent failures in the areas of:

Quality planning, Documentation (viz. manuals, procedures, policies) Process control cost Cost of training Costs associated with preventing recurring defects Costs of investigation, analysis and correction of

causes of defects by quality control and engineering departments.

Cost of quality awareness programme

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Costs that are incurred in assessing that the products / services conform to the requirements. It includes:

Cost of receiving test and inspection Cost of laboratory acceptance testing Cost of installation testing Cost of installation and commissioning Cost of maintenance and calibration of testing and

inspecting equipments Cost of test equipment depreciation Cost of analysis of reporting of tests and inspection

results. Cost of line quality engineering Cost of vendor rejects

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Costs linked to correcting mistakes before delivery of the product viz.

Cost associated with scrap and rejects Cost of repair and rework Cost of design changes Cost of trouble-shooting or defect failure

analysis Cost of re-inspection and retesting Cost of sales discounts for inferior products Cost of downgrading Cost of downtime

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Costs that arise from the rejection of the products/ services by the customers due to poor quality viz.

Cost of processing complaints from customers Cost of commissioning failures Cost of servicing or replacing defective items. Cost of guarantee and warranty claims Cost of lost goodwill of customer Cost of product reliability compensation (voluntary or

legal) Cost of loss of sales Cost of concessions offered to customers ( due to

substandard products being accepted by customers)

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Juran’s contributions –JURAN’S TRILOGY

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PRODUCT QUALITY

Improvement

Planning Control

Juran’s contributions –JURAN’S TRILOGY

Quality planning (determine customer needs, develop product in response to needs).

Quality control (assess performance, compare performance with goals, act on differences between performance and goals).

Quality improvement (develop infrastructure, identify areas of improvement and implement projects, establish project team, provide teams with what they need).

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JURAN’S TRILOGY DIAGRAM (cont..)

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QUALITY PLANNING:“Creating a process that will be able to meet established goals and do so under operating conditions." (Juran)Discovering customer needs and opportunities for reduction of waste and developing products and processes that would meet those needs and attain to those opportunities.Subject matter

An office process for producing documentsAn engineering process for designing productsA factory process for producing goodsA service process for responding to customers’ requests


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QUALITY CONTROL:“The managerial processes used to, ‘Evaluate actual performance, compare actual performance to goals, and take action on the differences.’” (Gibbons)

Some deficiencies plannedChronic wasteOriginal quality control zone

The job of the operating forces – performance should not get worse than planned

Sporadic spikes – sudden deviations from planned performanceRespective measures are taken


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QUALITY IMPROVEMENT“The organized creation of beneficial change; the attainment of unprecedented levels of performance.” (Gibbons)Purpose -- to reduce and eliminate chronic waste.Achieved through:Planned actions by upper managementChronic waste level goes downNew quality-control zone is establishedClosing the loop through “Lessons Learned”

JURAN’S TEN STEPS TO QUALITY IMPROVEMENT

1. Build awareness of opportunities to improve.2. Set goals.3. Organize to reach goals.4. Provide training.5. Carry out projects to solve problems.6. Report progress.7. Give recognition.8. Communicate results.9. Keep score.10. Maintain momentum by making annual improvement part of the

systems and processes of the company.116

JURAN’S Breakthrough Concept

Juran defines a breakthrough as `change, a dynamic, decisive movement to new, higher levels of performance'.

This he contrasts with control, which means `staying on course, adherence to standard, and prevention of change'.

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JURAN’S Breakthrough Concept

Juran highlighted the importance of managers' understanding of the attitudes, the organization and the methodology used to achieve breakthrough, and of how they differ from those used to achieve control. (knowledge worker)

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JURAN’S Breakthrough Concept Breakthroughs in:

Leadership OrganizationCurrent performanceCultureAdaptability

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Leadership OrganizationCurrent

performanceCultureAdaptability

Helps in achieving goals. Expresses clearly the

mission, values and norms expected in the behavior of employees.

Mobilizes an organization to achieve goals and to live by its values.

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Establishes an organization's system in such a way that it can deal multi-functional issues.

Builds an organization in such a way that every function within it is interrelated with proper authority levels and reporting lines 121




Establishes processes to know root causes of problems and methods to eliminate them.

Places processes in a state of self control to avoid recurrence of causes.

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Creation of set of behavior standards and social climate that best supports the goals of an organization.

Inculcates in all functions and levels the values and beliefs that guide behavior and decision making

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Creation of processes that sense changes.

Creation of processes to evaluate information and refer to proper levels.

Establishes organization structure in such a way so as to adapt to promising trends.

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JURAN’S TRILOGY DIAGRAM

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Lessons Learned

Source: Adopted from Juran, J. M. (May 1989). “Universal Approach to Managing for Quality, Executive Excellence, 6,5, ABI/Inform Global

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JURAN’S Breakthrough concept

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Juran’s contributions –Pareto’s principle Juran noted that when a list of defects was arranged in

the order of frequency, relatively few types of defects accounted for the bulk of those found.

The idea of `the vital few and the trivial many' was forming. In the 1930s Juran was introduced to the work of Vilfredo Pareto - Italian sociologist and economist who had produced a mathematical model to explain the unequal distribution of wealth

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Juran’s contributions –Pareto’s principle

Juran was, in reality, the first to identify and popularize the 80:20 rule

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Juran’s contributions –”Road map”

Juran's `road map' provides a more detailed approach to the steps within the quality planning element of the trilogy.

It is made up of a series of actions with corresponding outputs, and emphasizes the need for measurement throughout. In his book, Juran on Quality by Design,

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Juran describes six activities in the road map:

1. establish quality goals;2. identify the customer3. determine customer needs4. develop product features5. develop process features6. establish process controls; and transfer to

operations.132


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Contributions by Crosby Philip Bayard Crosby (1926 – 2001)

is the third major influence on the management tools of TQM. He is best known for the concepts of “Zero Defects” and “Do it right first time”.

Crosby contributed three major ideas to TQM

1. Four absolutes of quality2. Fourteen steps to quality

management3. Crosby’s Quality Vaccine

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Contributions by Crosby: Crosby is probably best known for his book Quality

is Free (1979) and concepts such as his Absolutes of Quality Management, Zero Defects, Quality Management Maturity Grid, 14 Quality Improvement Steps, Cost of Quality, and Cost of Nonconformance.

Other books he has written include Quality Without Tears (1984) and Completeness (1994).

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Contributions by Crosby: Crosby's method does not dwell on statistical

process control and problem solving techniques that the Deming method uses.

He stated that quality is free because prevention will always be lower than the costs of detection, correction and failure.

Like Deming, Crosby had fourteen points.

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Contributions by Crosby: Attention to customer requirements and preventing

defects is evident in Crosby's definitions of quality and "non-quality" as follows:

"Quality is conformance to requirements; non-quality is nonconformance."

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Contributions by Crosby: Crosby's response to the quality crisis was the

principle of "doing it right the first time" (DIRFT) He pushed for zero defects He claimed that poor quality costs about 20 percent

of the revenue; a cost that could be avoided by using good quality practices.

Crosby emphasized meeting customer requirements by focusing on prevention rather than correction. 138

Crosby’s Four absolutes of Quality: (1) Quality is defined as conformance to

requirements, not goodness; (2) The system for achieving quality is prevention,

not appraisal; (3) The performance standard is zero defects, not

that's close enough; and (4) The measure of quality is the price of non-

conformance, not indexes.139

Contributions by Crosby: Crosby's method does not dwell on statistical

process control and problem solving techniques that the Deming method uses.

Cosby stated that quality is free because prevention will always be lower than the costs of detection, correction and failure.

Like Deming, Crosby had fourteen points:

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Crosby's Fourteen Steps of Quality

Improvement as shown below : Step 1. Management Commitment Step 2. Quality Improvement Teams Step 3. Quality Measurement Step 4. Cost of Quality Evaluation Step 5. Quality Awareness Step 6. Corrective Action Step 7. Zero-Defects Planning

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Crosby's Fourteen Steps of Quality

Improvement (cont..) : Step 8. Supervisory Training Step 9. Zero Defects Step 10. Goal Setting Step 11. Error Cause Removal Step 12. Recognition Step 13. Quality Councils Step 14. Do It All Over Again

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Crosby’s 14 points:1. Top level management must be convinced and

committed and it should be communicated to the entire company.

2. Create Quality improvement teams composed of department heads to oversee improvements.

3. Measure processes to determine current & potential quality issues.

4. Calculate the cost of (poor) quality5. Raise quality awareness of all employees6. Take action to correct quality issues7. Monitor progress of quality improvement –

establish a zero defects committee. 143

Crosby’s 14 points (cont..):8. Train supervisors in quality improvement9. Hold “zero defects” days10.Encourage employees to create their own

quality improvement goals11.Encourage employee communication with

management about obstacles to quality12.Recognize participants’ effort13.Create quality councils14.Do it all over again (i.e., repeat steps one

through thirteen) 144

Crosby’s Quality Vaccine:"Vaccine" is explained as medicine for management to prevent poor quality

There are three main segments in the vaccine and each of them has components:

1. DETERMINATION2. EDUCATION3. IMPLEMENTATION

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Crosby’s Quality Vaccine (cont..):

1. DETERMINATION: The recognition that quality improvement is vital to the growth, prosperity and even the survival of the company. Everyone is for quality but most managers don’t do much about it until they realize what it costs in money, reputation and frustration to not have it.

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Crosby’s Quality Vaccine (cont..):

1. EDUCATION: Each and every employee of the company has to understand their role in the quality improvement process

2. IMPLEMENTATION: Installing the process is a matter of a logical communication and action flow that requires no additional people or equipment

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Crosby’s Management Grid: Philip Crosby in his book ‘Quality is Free’ advocates the

use of a simple tool to show where you are in the quality management spectrum; he calls it the Quality Management Maturity Grid.

The grid is a simple 6 x 6 matrix that shows different stages of maturity of the company’s quality management against six different quality management categories (management understanding of quality, problem handling, cost of quality, etc).

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Crosby’s Management Grid: The lowest stage of maturity is called ‘Uncertainty’

– the organization is inexperienced, quality management is a low priority and reactive, etc –

Then as quality management matures it goes through the stages of ‘Awakening’, ‘Enlightenment’, ‘Wisdom’, then the highest level, ‘Certainty’.

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Crosby’s Management Grid: Each point – maturity versus category – on the grid

has a brief description of how that combination appears in the company;

For instance, in the ‘Uncertainty’ stage, Problem Handling looks like “Problems are fought as they occur; no resolution; inadequate definition; lots of yelling and accusations.”

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Crosby’s Management Grid:

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Recognizing and rewarding QualityPromotion of high quality goods and servicesMalcolm Baldrige National Quality Award (MBNQA) (United States)

Deming Prize (Japan)

European Quality Award (European Union)

ISO9000 certification

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The integrated framework of the Baldrige Award criteria

Source: 2004 Criteria for Performance Excellence, U.S. Dept. of Commerce, Baldrige National Quality Program, National Institute of Standards and Technology, Gaithersburg, MD 20899. (www.quality.nist.gov)

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Product

Continual improvement of the quality management systemContinual improvement of the quality management system

Customers(and otherinterested parties)

Requirements

Managementresponsibility

Resourcemanagement

Measurement, analysis and improvement

Productrealisation

Output

Satisfaction

Input

Source: BS EN ISO 9001:2000

Key: Value adding activity information flow

Customers(and otherinterested parties)

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Overview of the EFQM Excellence Model

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Obstacles to Implementing TQM

Lack of a company-wide definition of quality. Lack of a formalized strategic plan for change. Lack of a customer focus. Poor inter-organizational communication. Lack of real employee empowerment. Lack of employee trust in senior management. View of the quality program as a quick fix. Drive for short-term financial results. Politics and turf issues.

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BENEFITS OF TQM

According to survey of manufacturing firms it was found that TQM had improved quality, employee participation, teamwork, working relationships, customer satisfaction, employee satisfaction, productivity, communication, profitability and market share.

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BENEFITS OF TQM

The study showed that small organizations outperform larger organizations. Recent studies have shown that only 30% of manufacturing organizations have successfully implemented TQM

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MISSION STATEMENT

The Mission statement is usually one paragraph, describes the function of the organization. It is designed to address the question, “What business are we in?”

The Mission statement answers the following questions: Who are we? Who are the customers? What we do? How we do it?

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MISSION STATEMENT (cont..)

According to ISO 9004, a mission statement explains why an organization exists. It defines its reason for being (its raison d'être).

“We exist to create, make and market useful products and services to satisfy the needs of our customers throughout the world” Texas Instruments

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VISION STATEMENT A vision statement is a short declaration of what an

organization aspires to be tomorrow. The vision statement should be coined in such a

way that the leaders and the employees working in the organization should work towards the achievements of the vision statement.

It is the ideal state that might never be reached; but on which one will work hard continuously to achieve. Successful visions provide a brief guideline for decision-making. 161

VISION STATEMENT (cont..)

The vision statement provides a clear picture of where it is headed and why it is

According to ISO 9004, an organization's vision describes what it wants to be and how it wants to be seen by interested parties.

“To be the leading consumer battery company in the world” Duracell International

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QUALITY POLICY

An organization’s quality policy defines top management’s commitment to quality. A quality policy statement should describe an organization’s general quality orientation and clarify its basic intentions.

Quality policies should be used to generate quality objectives and should serve as a general framework for action.

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QUALITY POLICY

Quality policies can be based on the ISO 9000 Quality ManagementPrinciples and should be consistent with the organization’s other policies.

“Xerox is a quality company. Quality is the basic business principle for Xerox. Quality means providing our external and internal customers with innovative products and services that fully satisfy their requirements. Quality is the job of every employee” Xerox Corporation 164

QUALITY POLICY

The Total Quality Philosophy at Procter & Gamble focuses on delivering superior customer satisfaction and has four principles:

Really know our customers and consumers Do right things right Concentrate on improving systems Empower people

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QUALITY POLICY at Procter & Gamble

Really know our customers and consumers

Do right things right

Concentrate on improving systems

Empower people

Know those who resell our products and those who finally use them and then meet and exceed their expectations.

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Empower people

Improve the capability of our basic business systems and sub-systems.

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Empower people

This means removing barriers and providing a climate in which everyone in the organization is encouraged and trained to make his or her maximum contribution to business objectives

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QUALITY OBJECTIVES

A quality objective is a quality oriented goal. A quality objective is something you aim for or try to achieve.

Quality objectives are generally based on or derived from the organization’s quality policy and must be consistent with it.

They are usually formulated at all relevant levels within the organization and for all relevant functions.

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QUALITY OBJECTIVESA P&G statement of purpose which captures

the “what”, “how” and expected results of their quality efforts is stated as:

“We will provide products of superior quality and value that best fill the needs of the world’s consumers”.

“We will achieve that purpose through an organization and a working environment which attracts the finest people”. 170

QUALITY OBJECTIVESP&G statement of purpose (cont..)

“Through the successful pursuit of our commitment, we expect our brands to achieve leadership share and profit position so that as a result, our business, our people, our shareholders and the community in which we live and work, will prosper”

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To my dear students: Please feel free to share it. If you are making some changes or have some

suggestions for improvements, please send me mail which will be greatly appreciated.

Gnanasekharan, Agni College of Technology, Thalambur [email protected]

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Documents

Handout Lesson Plan & Unit 1 Ge2022 Tqm