Total Quality Management

Agenda

Quality, Evolution of quality management & gurus TQM

What, Why Concepts – Cost of quality, QFD, Benchmarking, Concurrent

Engineering Tools – 7 quality tools, 7 management tools Team issues Case: Punjab Tractors Benefits of TQM, Sins of TQM Other quality initiatives Future of TQM

What is Quality?

Is a product’s or service’s ability to satisfy the needs and expectations of the customer

Quality is “fitness for use” - Joseph Juran

Quality is “conformance to requirements” - Philip Crosby

Edward Deming Deming’s 14 points Constantly improve people, processes and products and services Focus on long term needs than short term profits Abolish MBO and Performance Appraisal

Philip Crosby Conformance and non-conformance rather than low or high

quality Zero defect program - do it right, first time, every time. Cost of quality < 2.5% of sales, reduce through prevention Quality policy statement

Joseph Juran Quality planning, quality control, quality improvement – Juran

Trilogy

Quality Gurus

• William Conway3 categories of waste – time, material, capital

• Kaoru Ishikawa

Quality Circles (QC), Ishikawa Diagram (Fishbone Diagram)

• Walter A. ShewartConcepts of SQC

Germ Theory of Management- elimination of the virus of variability.

• Genichi TaguchiDesign of Experiments

Quality Gurus…

TQM

Quality Assurance

Quality Control

Inspection 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.

Evolution of Quality Management

Management by fact

Results Focus

Passion to deliver customer

value

Concern for employee

involvement and development

Organisation response ability

Actions not just words

(implementation)

Partnership perspective

(internal/external)

What is TQM?

Constant drive for continuous

improvement and learning.

Process Management

Why TQM?

So that the whole organisation works towards world-class standards.

Addresses issues ranging from management of quality at the suppliers' end to the way the finished products are delivered to the customers.

Does not focus on the measurement of results; it focuses on the management of the processes and the measures used.

In recent times, even the process of business strategy is included in TQM.

Institutionalization of TQM

Top management is vital to the success of TQM implementation.

Personal leadership and example is very important; managers need to apply TQM in their daily work and get the people to think about and use the concepts and tools.

TQM must be built into systems processes that involve planning and rewards. become an invisible part of the ongoing belief system of the

organization. be preceded by a cultural change

Cost of Quality

Cost of Cost of Cost of lost

Conformance Non-Conformance Opportunities Cancellation of Orders

Cost of Cost of Cost of Cost of Cost of

Prevention Appraisal Internal External Exceeding

Training, Inspection, Failure Failure RequirementsQC, QA Checking, Scrap, Warranty, Redundant

Audits Rework Installation, Documenting

Service Costs

Cost of Quality

Total Cost of Quality

Cost of Lost Opportunities

Cost of Exceeding Requirements

Prevention Cost

Appraisal Cost

Prevention Costs

Time

Cost

TQM Concepts

Links customer needs with design, development, engineering, manufacturing and services.

Major TQM tool which is system and process oriented.

Achieve and display the results in the common matrix diagram presenting one set of ideas against those of another, thereby evaluating their relationships.

QFD

Understanding & satisfying Customer requirements

Maximizing positive Quality that adds value

Quality systems thinking + Knowledge

Quality Function Deployment

Competitive Assessment

Action Ranking Technical Importance

Competitive Benchmark

Absolute Relative

Objective Target Values

What

How much

Relationship Matrix

How

CorrelationMatrix

Design RequirementsCustomer

Requirements

Customer Rating

COMPETITIVE

ASSESSMENTS

Relative Importance

Benchmarking

Comparison process to continuously identify the best business practices anywhere and adopt them to the organization.

Valuable TQM tool which accomplishes objectives of customer satisfaction and continuous improvement.

Motivates an organization & fosters a new in-depth understanding about the functioning of the organization.

Reduces cycle time as small or big tasks get done faster. Constantly redefines standards which must be achieved to

remain competitive. Increases productivity.

PLAN

INTEGRATE

IMPLEMENT

ANALYZE

•Management commitment•Resource commitment

•Develop plan

•Develop process measure

•Measure

•Data identification

•Target Companies

•Site visits

•Gather Data

•Convert gap to targets and operational goals

• Convert goals to action plans

• Implement improvement

Deming Wheel applied to benchmarking

Concurrent Engineering

Process in which appropriate disciplines are committed to work interactively to conceive, approve, develop and implement product programs that meet pre-determined objectives .

Re-unites technical and non technical disciplines such as engineering, marketing and accounting, focusing on satisfying the customer, the representatives work together in defining the product to be manufactured.

CE team must be backed by fundamental training on TQM. One of the prime motivations for a concurrent engineering

approach to product development is a desire to shorten the total time that it takes to bring a product to the marketplace.

Concurrent Engineering…

Some Quality Tools of TQM

Flow ChartsRun ChartsHistogramsControl Charts (Statistical Process Control)

Brainstorming and related toolsFishbone DiagramPareto Chart

Flow Charts

13

12

11

10

9

8

0 2 4 6 8 10 12 14

Run Charts

Upper Control Limit (UCL)

TIME

M

E

A

S

U

R

E

M

E

N

T

Lower Control Limit (LCL)

Control Charts

Cause & Effect Diagrams…

100

80

60

40

20

0

56

1018

781

Cumulative %

% offaults

Causes

Pareto Charts

Team Roles and Responsibilities

Mission of TQM process improvement teams

Defining the process in detailEliminating unnecessary activitiesDeveloping measures of performanceEstablishing performance baselinesSetting improvement goals and changing the

processes to meet them

TQM Teams

Composition of team Core members should represent key process activities Sometimes include process supplier and process customer

Team Training Just in Time Training - learning is immediately reinforced through

application 7 QC tools, 7 Management tools, Benchmarking, Quality Function

Deployment, Concurrent Engineering Central productivity or TQM departments for communications,

facilitation and training; key middle managers trained.

TQM and Six Sigma…

Both work best with strong internal sponsorship from senior management.

Cultural change in the adopting organisation is a positive by-product of both methodologies.

Both use statistical methods for measurement and control. They rely on data - not opinion - to justify change.

Both value the people working within systems, who ultimately drive quality. Both establish the customer (whether internal or external) as the final arbiter of quality.

Problem prevention, not mere detection, is the aim for both TQM and Six Sigma.

References

T.J. Cartin, Principles & Practices of TQM