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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

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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

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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

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    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

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    TQM Framework

    Gurus Tools and Techniques

    Principles andPractices

    Product or ServiceRealization

    CUSTOMERS

    Introduction Principles Advantages ComparisonFrameworkand Steps

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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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    Introduction Principles Advantages ComparisonFrameworkand Steps

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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.

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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

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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

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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).

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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

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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