MGT 6650_Lecture 2_Total Quality Management_12022014v1

8/12/2019 MGT 6650_Lecture 2_Total Quality Management_12022014v1

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Introduction

TQM

ISO 9000

Benchmarking

Cusstomer Satisfaction

M G T 6 6 5 0 T Q M M i d Te r m


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LECTURE 2

TOTAL QUALITY MANAGEMENT:TQM


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F i v e t y p e s o f P r o b l e m s

Compliance

Unstructured

Efficiency

Process DesignProduct Design


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F i v e w a y s t o I m p r o v e a P r o c e s s

Reduce resources

Reduce errors

Meet or exceed expectations of internal/external customers

Make the process safer


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Quality Control

QC

the use techniques and activities to achieve, sustainand improve quality of products or service. It integratesthese related techniques and activities:

1. Specifications of what is needed

2. Design of the products/service to meet specs.3. Production or installation to meet full intent of specs.

4. Inspection to determine conformance to specifications

5. Review usage to provide information for revision of specs.

if neededThe aim should be towards quality improvement


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Quality Assurance

All thoseplanned or systematic actions necessary to

provide adequate confidence that a product or service

will satisfy given requirements for quality

Need systems and procedures to ensure consistency inmethods for producing products


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To t a l Q u a l i t y M a n a g e m e n tThe way of managing organization to

achieve excellence

TotaleverythingQualitydegree of excellence

Managementart, act or way of

organizing, controlling, planning, leading

to achieve certain goals


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E v o l u t i o n o f Q u a l i t y M a n a g e m e n t

Inspection

Quality

Control

Quality

Assurance

TQM

Salvage, sorting, grading, blending, corrective actions,

identify sources of non-conformance

Develop quality manual, process performance data, self-

inspection, product testing, basic quality planning, use of

basic statistics, paperwork control.

Quality systems development, advanced quality planning,

comprehensive quality manuals, use of quality costs,

involvement of non-production operations, failure mode and

effects analysis, SPC.

Policy deployment, involve supplier & customers, involve all

operations, process management, performance

measurement, teamwork, employee involvement.


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D e f i n i t i o n o f T Q M B S 4 7 7 8 : 1 9 9 1 )A management philosophy embracing all

activities through which the needs and

expectations of the CUSTOMER and

COMMUNITY, and the objectives of the

organization are satisfied in the most efficient

and cost effective manner by maximising the

potential of ALL employees in a continuing

drive for improvement.


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Total Quality Management optimisation and integration of all

the functions and processes of a

business in order to provide forexcited customers through a process

of continuous improvement.


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Total Quality Management (TQM)

philosophy and a set of guiding principles

foundation of continuously improving organization

philosophy to achieve excellence

process in set of interrelated activities using specific

inputs to produce/deliver specific outputs

process = business and production

customers refers to external and internal suppliers also both external and internal

customer-supplier chains


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Responsibility for Quality

Marketing

Design

Engineering

Procurement

(Purchasing)

Product Service

Packing &

Storage

Inspection &

Test

Production Process Design

Customer

Quality

Product /

Service


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R e s p o n s i b i l i t y f o r Q u a l i t y Quality not responsibility of any one person or

department everyones job (operator to CEO)

Start from marketingdetermine customerrequirements until product received by satisfiedcustomer

Delegated to areas with authority to make qualitydecisions


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D e f i n i t i o n :

To t a l Q u a l i t y M a n a g e m e n t

Total Quality Management (TQ, QM or TQM) are

sweeping culture change efforts to position a

company for greater customer satisfaction,

profitability and competitiveness.

defined as managing the entire organization so that it excels

on all dimensions of products and services that are

important to the customer.


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Gap exist in improvement processNo process without data collection

No data collection without analysis

No analysis without decisionsNo decisions without actions (which can

include doing nothing)


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Effects of Poor Quality

External1. Low customer satisfaction

2. Loyalty

3. Trust

Internal

1. Low productivity, sales & profit

2. Low morale of workforce

3. More re-work, material & labour costs

4. High inspection costs5. Delay in shipping

6. High repair costs

7. Higher inventory costs

8. Greater waste of material


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O b j e c t i v e s o f T Q M

1. Process improvement

2. Defect prevention

3. Priority of effort

4. Developing cause-effect relationships5. Measuring system capacity

6. Developing improvement checklist and check forms

7. Helping teams make better decisions8. Developing operational definitions

9. Separating trivial from significant needs

10. Observing behaviour changes over a period of time


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To t a l Q u a l i t y M a n a g e m e n t :

C o m p a r i s o n

Quality element Previous state TQM

Definition Product-oriented Customer-oriented

Priorities Second to service and

cost

First among equals of

service and 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

Managers role Plan, assign, control,

and enforce

Delegate, coach,

facilitate, and mentor


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T Q M P r i n c i p l e s a n d P r a c t i c e s1. Leadership

2. Customer Satisfaction

3. Employee Involvement4. Continuous Process Improvement

5. Supplier Partnership

6. Performance Measures

(All these present an excellent way to run a business)


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S c o p e o f t h e T Q M a c t i v i t yTQM

Principles & Practices

Leadership

Customer

satisfaction

Employee

improvement

Continuous

improvement

Supplier

partnership

Performance measures

Tools & Techniques

Quantitative Non-quantitative

SPC ISO 9000

ISO 14000Acceptance Sampling

Reliability Benchmarking

Experimental design

FMEA

QFD

Total productive

maintenance

Management tools

Concurrent engineering


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To be continued.

Documents

MGT 6650_Lecture 2_Total Quality Management_12022014v1