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University of Santo Tomas
Faculty of Engineering
Industrial Engineering Department
IE 412Industrial Quality Control
Reported by:
Group # 9 Group # 10Kurata, Yoshiki Chua, Mark Genesis
Agpasa, Eunice Bianca Narito, Adrian Noel
4IE-B
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Quality is everyones responsibility
-Edward Deming
Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
that use
TQM
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What is TQM?o Refers to an integrated approach that seeks to
improve quality and performance which will meetor exceed customer expectations and to developcontinuous improvement.
o Focuses on encouraging a continuous flow ofincremental improvements from the bottom of theorganizationshierarchy.
o It is not a complete solution formula as viewed bymany formulas cannot solve managerial
problems, but a lasting commitment to the processof continuous improvement.
Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
that use
TQM
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TQM is an operating philosophy andmanagement tool that focuses oncontinuous process improvement.
Everything is a scientific method. A useof process. Do it right the first time thruuniversal participation. Teams as well
as individuals that results in customersatisfaction. Internal and External
customers ultimately cosperformance.
Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
that use
TQM
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Continuous Process Improvement Cycle
Plan
Do
Act
Check
1. Identify the
opportunity
2. Analyzethe process
3. Develop theoptimal Solution
4. Implement5. Studythe results
6. Standardizethe solution
7. Plan forthe future
Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
that use
TQM
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In Japanese, TQM comprises
four process steps, namely: Kaizen
Atarimae Hinshitsu
Kansei
Miryokuteki Hinshitsu
-TQM requires that the company maintain this quality standardin all aspects of its business. This requires ensuring that thingsare done right the first time and that defects and waste are
eliminated from operations.
Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
that use
TQM
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TQM Six Basic Concepts
1. A committed and involved management to providelong-term-top-to-bottom organizational support.
2. An unwavering focus on the customer, bothinternally and externally.
3. Effective involvement of the business andproduction process.4. Continuous improvement of the business
and production process.5. Treating suppliers as partners.
6. Establish performance measures for the process.
Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
that use
TQM
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7 Important Principles of Total
Quality Management
1. Quality can and must be managed.
2. Processes, not people, are the problem.
3. Donttreat symptoms, look for the cure.
4. Every employee is responsible for quality.
5. Quality must be measurable.
6. Quality improvements must be continuous.
7. Quality is a long-term investment.
Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
that useTQM
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Principles of TQM
Criteria:
1. Leadership2. System Approach to Management3. Customer Driven Organization
4. Factual Approach in Decision Making5. Involvement of People6. Process Approach7. Continual Improvement
8. Mutually Beneficial Customer-Supplier Relationships
Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
that useTQM
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5 Main Advantages of TQM
1. Encourages a strategic approach to management at theoperational level through involving multiple departments incross-functional improvements and systemic innovationprocesses;
2. Provides high return on investment through improvingefficiency;
3. Works equally well for service and manufacturing sectors;4. Allows organizations to take advantage of developments
that enable managing operations as cross-functionalprocesses; and
5. Fits an orientation toward inter organizationalcollaboration and strategic alliances through establishing aculture of collaboration among different departments withinorganization.
Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
that useTQM
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TQM and Continuous Improvement Firm
Two different perspectives of the same phenomenon
o The TQM Perspectivethe beliefs and practicesrequired of management to bring about and
perpetuate a continuous improvement firm (CIF).
o The CIF Perspective the organization itself inall its integrity, full-blown, operating andpracticing the Total Quality Management (TQM)approaches.
Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
that useTQM
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TQM and JIT
TQM ensures that the improvements arefundamental and not superficial
JIT seeks improvement through reductionof waste.
Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
that useTQM
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Comparison of OLD and TQM Cultures
Element Old TQM
By Definition Product oriented Customer oriented
Priority After cost On par to cost
Time frame Short Term Long Term
Emphasis Detection Prevention
Errors Operations Systems
Responsibility Quality Control Everyone
Problem solving Managers Teams
Procurement Price Life-cycle costs
Managers Role Plan, assign Control Delegate, coach, facilitate
Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
that useTQM
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TQM Framework
Gurus Tools and Techniques
Principles andPractices
Product or ServiceRealization
CUSTOMERS
Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
that useTQM
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Five Steps in TQM
Determine what customers want
Develop products and services
Develop production system
Monitor the system
Include customers and suppliers
Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
that useTQM
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TQM Activities
o ISO, OHSAS, SA systemso Quality Circleso Professional Circleso 5So Employee Suggestion Schemeo Business improvement through
Benchmarking, SixSigma conceptso Balanced Score Cardo Kaizen
Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
that useTQM
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Barriers in Successful TQM
Lack of management commitment Inability to change org. culture Improper planning Lack of continuous training and Education Lack of data & results or access to data or
ineffective measurement Inadequate attention to customer (I&E) Inadequate use of empowerment & teamwork
Incompatible org structure , individualistic
Introduction Principles Advantages ComparisonFrameworkand Steps
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that useTQM
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Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
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FORD Motor Company
o is an American multinational automaker basedin Dearborn, Michigan, a suburb of Detroit.The automaker was founded by HenryFord and incorporated on June 16, 1903.
o
Ford is the second largest automaker in theU.S. and the fifth-largest in the world based onannual vehicle sales in 2010. At the end of2010, Ford was the fifth largest automaker inEurope. Ford is the eighth-ranked overall
American-based company in the 2010 Fortune500 list, based on global revenues in 2009 of$118.3 billion.
Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
that useTQM
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TQM techniques that Ford used:
Six Sigma
Quality Operating System or (QOS)
developed their own quality process or
5S. The DMAIC process, or define,
measure, analyze, improve, and controlhas built an overall strategy forconsistency in their teams,
Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
that useTQM
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Federal Express (FedEx)
FedEx created the overnight air expressbusiness in 1973. Ten years later, it wasthe first U.S. company to top $1 billion inrevenues in its first decade. The company
is the worldslargest express transportationcompany: more than 110,000 employeesmoved more than 2million items to over200 countries each business day. In 1990,FedEx became the first service company to
win the Baldrige Award.
Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
that useTQM
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Leading the Transition
Commit to quality
Know you Companys Systems and
Values
Participate in your Companys Quality
Processes
Integrate Quality in the Companys
Management model
Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
that useTQM
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XEROX
The Xerox Corporation started its thrivetowards TQM in the 1970s with theinvention of PARC, Palo Alto Research
Center.
Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
that useTQM
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XEROX
Xerox has established a program calledLeadership Through Quality (LTQ) and aQuality Training Task Force for itscompanys leadership teams. "Today, morethan 100,000 Xerox employees worldwidehave been trained in this process, whichstresses continuous improvement anddefines quality precisely as meeting
customer requirements" (Evans-Correia,1997, 135).
Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
that useTQM
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The XEROX Corporationfocuses on:
o Benchmarkingo a reduced supplier baseo and leadership teams
Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
that useTQM
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Toyota Corporation
a multinational automaker headquarteredin Toyota, Aichi, Japan. In 2010, ToyotaMotor Corporation employed 317,734
people worldwide . TMC is the world'slargest automobile manufacturer bysales and production.
Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
that useTQM
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Toyota Corporation uses:
5S
Lean manufacturing
JIT
Kaizen
Six Sigma
Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
that useTQM
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References
o Besterfield, D., et.al. Total Quality Management, ThirdEdition. Prentice Hall. 2003
o Cortada, J. & Woods, J. The Quality Yearbook, 1996 Edition.McGraw Hill. 1996
o Bounds, G., et.al. Beyond Total Quality Management.
McGraw Hill. 1994o George, S. & Weimerskirch, A. Total Quality Management,
Second Edition. John Wiley & Sons Inc. 1998
o Lawler, E., Morhman, S., and Ledford, G. Jr. EmployeeeInvolvement and Total Quality Management. Jossey-Bass
Publishers. 1992o Gitlow, H. & Gitlow, S. Total Quality Management in Action.
Prentice Hall. 1994
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References
o http://www.brighthub.com/office/project-management/articles/72279.aspx
o http://en.wikipedia.org/wiki/Ford
o http://en.wikipedia.org/wiki/Toyota
o http://www.stfrancis.edu/content/ba/ghkickul/stuwebs/btopics/works/tqmxerox.htm
Introduction Principles Advantages ComparisonFrameworkand Steps
Activities BarriersCompanies
that useTQM
http://www.brighthub.com/office/project-management/articles/72279.aspxhttp://www.brighthub.com/office/project-management/articles/72279.aspxhttp://en.wikipedia.org/wiki/Fordhttp://en.wikipedia.org/wiki/Toyotahttp://www.stfrancis.edu/content/ba/ghkickul/stuwebs/btopics/works/tqmxerox.htmhttp://www.stfrancis.edu/content/ba/ghkickul/stuwebs/btopics/works/tqmxerox.htmhttp://www.stfrancis.edu/content/ba/ghkickul/stuwebs/btopics/works/tqmxerox.htmhttp://www.stfrancis.edu/content/ba/ghkickul/stuwebs/btopics/works/tqmxerox.htmhttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Fordhttp://www.brighthub.com/office/project-management/articles/72279.aspxhttp://www.brighthub.com/office/project-management/articles/72279.aspxhttp://www.brighthub.com/office/project-management/articles/72279.aspxhttp://www.brighthub.com/office/project-management/articles/72279.aspx