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TQM
QUALITY BASICS
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Chapter 1
LO1: Relate the principles of 'Total QualityManagement' to organizational competitive strategy.
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DEFINING QUALITY
Whats your definition?
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DEFINING QUALITY
In technical usage, quality can have two meanings:
the characteristics of a product or service that bear onits ability to satisfy stated or implied needs, and
a product or service free of deficiencies
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DEFINING QUALITY - GURUS
Deming - non-faulty systems
Out of the Crisis
Juran - fitness for use
Quality Control Handbook Crosby - conformance to requirements
Quality is Free
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DEFINING QUALITY- DIFFERENT VIEWS
Customers view (more subjective) the quality of the design (look, feel, function)
product does whats intended and lasts
Producers view conformance to requirements (Crosby)
costs of quality (prevention, scrap, warranty)
increasing conformance raises profits
Governments view products should be safe
not harmful to environment5
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Quality =
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Performance
Expectation
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WHATIS QUALITY?
Quality you know what it is, yet you dont know what it
is. But thats self-contradictory. But some things are
better than others, that is, they have more quality. Butwhen you try to say what the quality is, apart from thethings that have it, it all goes poof! Theres nothing totalk about. ...
Robert M. Pirsig, Zen and the Art of Motorcycle Maintenance, p. 163
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WHATIS QUALITY?
Obviously, some things are better than others but
whats the betterness? So round and round you go,
spinning mental wheels and nowhere finding anyplace toget traction. What the hell is Quality? What isit?
Robert M. Pirsig, Zen and the Art of Motorcycle Maintenance, p. 164
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SOME DEFINITIONSOF QUALITY
Quality is conformance to requirements
-- Philip Crosby, Quality is Free 1979
The totality of features and characteristics of aproduct or service that bear on its ability to satisfystated or implied needs. --ASQC
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WHATIS QUALITY?
User-based: In the eyes of the beholder
Manufacturing-based: Right the first time
Product-based: Precise measurement
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FURTHER DEFINITIONS
Conformance to valid customer requirements
Goalpost View: Acceptable as long as it is within
acceptable limits
a predictable degree of uniformity anddependability, at low cost and suited to the market.
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VALUE-BASED APPROACH
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Manufacturingdimensions Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics
Perceived quality
Servicedimensions Reliability
Responsiveness
Assurance
Empathy
Tangibles
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SHIFTTO QUALITY
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Pre-World War II 1945 1990s
Isolated
Economies
Focus onquantity
Period ofchange fromquantity toquality
Global
Economy
Focus onquality
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HISTORYOF QUALITY PARADIGMS Customer-craft quality paradigm:
design and build each product for a particular customer. producer knows the customer directly.
Mass production and inspection quality paradigm: focus on designing and building products for mass
consumption. larger volumes will reduce costs and increases profits. push products on the customer (limit choices). quality is maintained by inspecting and detecting bad
products.
TQM or Customer Driven Quality paradigm: potential customers determine what to design and build. higher quality will be obtained by preventing problems
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NEEDFORA NEW STRATEGY
Foreign markets have grown
Import barriers and protection are not the answer.
Consumers are offered more choices
They have become more discriminating.
Consumers are more sophisticated
They demand new and better products.
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WHY QUALITY IMPROVEMENT?
Global Competition
Economic and political boundaries are slowly vanishing
The 1950s slogan Built by Americans for Americans is
very far from reality in the 2000s.
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WHY QUALITY IMPROVEMENT?
It pays
Less rework, fewer mistakes,
fewer delays, and better use of
time and materials
In United States today, 15 to 20%
of the production costs are
incurred in finding and correctingmistakes.
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QUALITY GURUS
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W. EDWARDS DEMING
WWII taught Quality Control for war effort
Ignored after the war
Japan wanted to learn from the US
Deming went to help with census Started teaching them quality control
1951 Deming Prize for high level of achievement inquality practices
1980 NBC If Japan CanWhy Cant We? US
discovers
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QUALITY PHILOSOPHY
A product or service possesses quality if it helps
somebody and enjoys a good and sustainablemarket.
Variation is the cause of poor quality
The Process
Product/service design
Manufacture/service delivery
Test
Sales
Market surveys
Redesign and improvement
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PLAN
CHECK
DOACT
The Deming Cycle or PDCA Cycle
Plan a change to the process. Predict the effectthis change will have and plan how the effects
will be measured
Implement the change on asmall scale and measure the
effects
Adopt the change as apermanent modification tothe process, or abandon it.
Study the results to learnwhat effect the change had, if
any.
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SYSTEMOF PROFOUND KNOWLEDGE
1. Appreciation for a system
1. Most organizational processes are cross-functional
2. Parts of a system must work together
3. Every system must have a purpose
4. Management must optimize the system as a whole
2. Understanding variation
1. Many sources of uncontrollable exist in any process
2. Excessive variation results in product failures, unhappy
customers, and unnecessary costs3. Statistical methods can be used to identify and quantify
variation to understand it and lead to improvements
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3. Theory of Knowledge
1. Knowledge is not possible without theory
2. Experience alone does not establish a theory, it onlydescribes
3. Theory shows cause-and-effect relationships that can beused for prediction
4. Psychology
1. Fear is not motivating
2. Managers should develop pride and joy in work
SYSTEMOF PROFOUND KNOWLEDGE
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IFYOUDONTGETIT
Systems:
See symptoms, not causes
Dont see effects of one part on the others
Variability
See trends where there are none, miss others
Psychology
Create cynicism, demoralization, guilt, resentment,burnout, craziness, and turnover
Theory of Knowledge
Problems remain unsolved, despite best efforts
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DEMINGS 14 POINTS
1. Create a vision and demonstratecommitment
1. Long-term vision
2.Companies purpose is to serve their customers andemployees, not simply for profit
3. Invest in innovation, training, research
4. Improve competitive position
5. Top management is responsible for this
6. Effective leadership begins with commitment
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14 POINTS
2. Learn the New Philosophy
1. Quota-driven, adversarial management wont work
2. That ignores importance of quality improvement
3. Labor and management have to cooperate to improve
the customers satisfaction
4. Keep training people turnover does exist
3. Understand Inspection
1. Routine inspection let someone else fix it
2. Increases costs in the end (no rework in services)
3. Inspect your own work and fix it
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4. DONT BUYONTHE COSTPER PART BASIS
1. Dont buy from several for competition
2. Increases variability3. Work with suppliers in long-term relationships
4. Improve quality with your suppliers
5. Also get volume discounts, fewer setups
6.Supplier-customer bond
14 Points
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5. IMPROVE CONSTANTLYAND FOREVER
1. Reduce causes of variation
2. Engage all employees1. How to do jobs more efficiently
2. More effectively
3. Continuous Process Improvement now is mandatory
14 Points
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6. INSTITUTE TRAINING
1. People are a valuable resource and want to do a good
job2. They need training to know how to do a good job
3. Invest in their future
4. Training should include tools for
1. Diagnosing2. Analyzing
3. Solving quality problems
4. Identify improvement opportunities
14 Points
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7. INSTITUTE LEADERSHIP
1. The job of management is leadership, not supervision.
2. If supervisors dont know the job, they cant lead
1. Focus on getting product out the door
3. Good supervisors are coaches, not prison guards
14 Points
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8. DRIVE OUT FEAR
1. Managers and workers must have mutual respect2. Pointing out quality problems will miss quotas
3. Deming story about not fixing a machine
4. Auto plant: workers knew more than the experts
14 Points
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9. OPTIMIZETHE EFFORTSOF TEAMS
1. People have to understand what customers want2. Union vs. Management
1. Management trying to exploit workers
2. Unions keeping to piece-rate known systems
14 Points
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10. ELIMINATE EXHORTATIONS
1. Do you work better with a poster on the wall?
2. Slogans assume quality problems caused by people
3. Deming thinks the system is responsible for problems
4. Workers demoralized when they cannot fix defects, andyet are held accountable
5. Workers attempts to fix problems only cause more
variation
14 Points
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11. ELIMINATE NUMERIC QUOTAS
1. They do not encourage improvement
1. If you do improve it, theyll just raise the quota2. Risk of missing quotas
3. Once you meet the standard, why try harder?
4. Arbitrary goals are demoralizing without a plan of how
you can reach those goals
5. Variability in system year-to-year
14 Points
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12. REMOVE BARRIERSTO PRIDEIN WORKMANSHIP
1. People are treated like a commodity
2. Work nights to make up for cut positions
3. Dont make your people compete against each other
4. Behavior driven by what boss wants, not Quality
14 Points
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13 EDUCATION & SELF-IMPROVEMENT
1. Not job-specific2. Many benefits, some specific to job, others broader
14 Points
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14. TAKE ACTION
1. Accomplish the Transformation2. Start the cultural change with top management
3. People will be skeptical until they start to see change
14 Points
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DEMINGS 7 DEADLY SINS
1. Lack of constancy of purpose
2. Emphasis on short term profits
3. Evaluation of performance, merit rating, or annualreview of performance
4. Mobility of management
5. Running a company on visible figures alone
6. Excessive medical costs for employee health carethat increase the final costs of goods and services
7. Excessive costs of warranty, fueled by lawyers whowork on the basis of contingency fees.
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JOSEPH JURAN
1951 Quality control handbook
Taught quality principles to Japanese in 1950s
Quality directed by senior management Train whole management hierarchy in quality
Strive for evolutionary changes in Quality
Report progress to executive levels
Involve the workforce in quality Quality part of reward/recognition structure
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JURAN TRILOGY QUALITY PLANNING
Determine who the customers are
Identify the customers needs
Develop products with features to respond to thecustomers needs
Develop systems and processes that allow theorganization to produce these features.
Deploy the plans to operational levels
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JURAN TRILOGY QUALITY CONTROL
Assess actual quality performance
Compare performance with goals
Act on difference between performance and goals
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JURAN TRILOGY QUALITY IMPROVEMENT
Develop the infrastructure necessary to makequality improvements
Identify specific areas in need of improvement, andimplement improvement projects
Establish a project team with responsibility forcompleting each improvement project
Provide teams with what they need to be able todiagnose problems to determine root causes,
develop solutions, and establish controls that willmaintain gains made
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PHILIP CROSBY
Corporate VP for Quality at International Telephoneand Telegraph, ITT for 14 years.
Quality is Free 1 million copies sold
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Quality is free . . . :
Quality is free. Its not a gift, but it is free.
What costs money are the unquality things --
all the actions that involve not doing jobs
right the first time.
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Philip Crosby
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CROSBYS 14 STEPS
1. Make it clear that management is committed toquality in the long term
2. Form cross-departmental quality teams
3. Identify where current and potential problemsexists
4. Assess the cost of quality and explain how it isused as a management tool
5. Increase the quality awareness and personalcommitment of all employees
6. Take immediate action to correct problemsidentified
7. Establish a zero defects program45
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CROSBYS 14 STEPS
8. Train supervisors to carry out their responsibilities in thequality program
9. Hold a Zero Defects Day to ensure all employees areaware there is a new direction
10. Encourage individuals and teams to establish bothpersonal and team improvement goals
11. Encourage employees to tell management aboutobstacles they face in trying to meet quality goals
12. Recognize employees who participate13. Implement quality councils to promote continual
communication
14. Repeat everything to illustrate that quality improvement46