TOTAL QUALITY

MANAGEMENT

Management

“The attainment of organizational goals in

an effective and efficient manner through…

Planning,

Organizing,

Leading, and

Controlling…of the organizational resources”.

MANAGEMENT“The attainment of organizational goals in an effective

and efficient manner through… Planning, Organizing, Leading, and Controlling…of the organizational resources”.

Goals attainedGoals attained EfficientlyEfficiently EffectivelyEffectively

CONTROLLINGCONTROLLING

LEADINGLEADING

ORGANIZINGORGANIZINGInputs from the Inputs from the environmentenvironment

Human resourcesHuman resources Financial resourcesFinancial resources Physical resourcesPhysical resources

Information Information resourcesresources

PLANNINGPLANNING

What is Quality?

Why focus on Quality?Why focus on Quality?

Quality Management

An ongoing effort to provide services that meet or exceed customer expectations through a structured, systematic process

for creating organizational participation in planning and implementing quality improvements.

Marketing

Total QualityManagement

System

Design

Purchasing

Production

Warehousing

Distribution / Service

Learning & Knowledge Mngt.

Delighted Customer

TOTAL QUALITY MANAGEMENT (TQM)&

TOTAL ORGANIZATIONAL EXCELLENCE (TOE)

System Thinking• A system is the functions or activities within an

organization that work together for the aim of the organization.

• Subsystems of an organization are linked together as internal customers and suppliers.

• A systems perspective acknowledges the importance of the interactions of subsystems, not the actions of them individually.

Systems Thinking

Input OutputProcess

•People

•Technology

•Capital

•Equipment

•Materials

•Information

•Goods

•Services

The Evolution of Quality

• The evolution can be broadly classified into five phases:– Inspection– Quality Control– Quality Assurance– Total Quality Management– Total Quality Assurance

INSPECTION• It is the sorting of Non

conforming items from the conforming items

• Means separation of Defective items from the right items + Rework (IF NEEDED)

Process

Inspection

Acceptance

Next Process

Reject,Scrap,Rework

No

Yes

INSPECTION (Acceptance Sampling)

Pass the Inspection

The Quality Control Phase

“It involves analytical and diagnostic techniques and activities aimed at monitoring a process and eliminating causes of unsatisfactory performance for the prevention of defects”.

What is Quality Control?

The operational techniques and activities that are used to fulfill the requirements for quality. (ISO–9000)

This general area may be divided into two main sub areas:

– Statistical Process Control – Acceptance Sampling Plans

INSPECTION + Corrective action

Comparison withRequirements

ProcessProcess Settings,

Specifications, etc.

THE QUALITY CONTROL MODEL

Next Process

Corrective And

PreventiveActions

Process inControl

Yes

No

Corrective Actions: Action taken to eliminate the cause of a detected nonconformity or other undesirable situation.

(ISO 9000:2000)

Preventive Actions: Action taken to eliminate the cause of a potential nonconformity or other potentially undesirable situation.

(ISO 9000:2000)

Benefits of Quality Control

The advantages of a quality control system, however, become obvious in the long run.

1. the improvement in the quality of products and services.

2. the system is continually evaluated and modified to meet the changing needs of the customer.

3. a quality control system improves productivity, which is one of the goals of all organizations.

4. Such a system reduces costs in the long run.5. with improved productivity, the lead time on the

production of parts and subassemblies is reduced, which may result in an improvement in meeting customer due dates

What is Quality Assurance?

The objective of the quality assurance function is to have a formal system that will continually survey the effectiveness of the quality philosophy of the company.

Quality assurance: All those planned and systematic activities implemented to provide adequate confidence that an entity will fulfill requirements for quality. (ISO – 9000)

The Quality Assurance Model

• The emphasis is towards improvement of the process capability ,detection and prevention of non-conformance.

• Quality Assurance addresses the entire life cycle of a product, starting from the initial product identification to final inspection, reliability in use and customer satisfaction.

Comparison withRequirements

ProcessProcess Settings,

Specifications, etc.

THE QUALITY ASSURANCE MODEL

Corrective &Preventive

ActionsProcess in

Control

Yes

No

Process inControl

No

Continuous Process Improvement

Perform Design Of Experiment,Reliability Engineering

Yes

Improved ProcessSettings, Alternative

Material

QC Vs QA

Quality Control• Product• Reactive• Line function• Find Defects

Quality Quality AssuranceAssurance

ProcessProcess ProactiveProactive Staff functionStaff function Prevent defectsPrevent defects

What is Quality ?

• Fitness for purpose or use– Juran

• Quality is conformance to the requirements.– Crosby

• Quality should be aimed at the needs of the consumer, present and future– Dr. Deming

• Q=P/E– Q= Quality– P=performance– E=Expectations

Quality MeasurementQuality Measurement??

Quality Related Characteristics

Reliability

Assurance

Tangible

Empathy

Responsiveness

RATERRATER

Dimensions of Quality in Manufacturing Sector

DIMENSIONDIMENSION MEANINGMEANING

PerformancePerformance Primary product characteristics, such as the brightness of the Primary product characteristics, such as the brightness of the picturepicture

FeaturesFeatures Secondary characteristics, added features, such as remote controlSecondary characteristics, added features, such as remote control

ConformanceConformance Meeting specifications or industry standardsMeeting specifications or industry standards

ReliabilityReliability Consistency of performance over timeConsistency of performance over time

DurabilityDurability Useful life, includes repairUseful life, includes repair

Serviceability Serviceability Resolution of problems and complaints, ease of repair, speed & Resolution of problems and complaints, ease of repair, speed & competence of repaircompetence of repair

ResponsiveneResponsivenessss

Human-to-human interface, such as Meet the dealer with good Human-to-human interface, such as Meet the dealer with good mannersmanners

AestheticsAesthetics Sensory characteristics (which means it appeals you) , such as Sensory characteristics (which means it appeals you) , such as exterior finishexterior finish

Reputation Reputation Past performance and other intangibles, such as being ranked firstPast performance and other intangibles, such as being ranked first

Dimensions of Quality in Service Sector

Time

Timelines

Completeness

Consistency

Accessibility

Accuracy

Responsiveness

Who determines quality?

THE CUSTOMERIf the customer does not perceive you as

offering quality service you are not.

CUSTOMER PERCEPTION OF QUALITY

ASQ SURVEY SHOWS THAT IMPORTANT FACTORS THAT INFLUENCE PURCHASING ARE

1. PERFORMANCE2. FEATURES3. SERVICE4. WARRANTY5. PRICE6. REPUTATION

FEEDBACK

• Comment Card.• Customer Questionnaire.• Focus Groups.• Toll Free Telephone No.• Customer Visits.• Report Card.• Internet & Computer.• Employee Feedback.• Customer complaints

+

+-

-

Satisfaction

Dissatisfaction

Service Dysfunctions

Service Fully

Functions

EXCITERS

Must Be

MORE IS BETTER

Less satisfied when the product or service is less

functional, but cannot increase satisfaction

substantially if operational - "up-time"

If the requirement is absent it does not cause

dissatisfaction, but it will delight clients if present -

"camera options"

The more requirements are met the more one is

satisfied

KANO MODEL

A company must achieve all four to be competitive

Cost

Quality

DeliveryFlexibility

For example, if we improve customer service problem solving by cross-training personnel to deal

with a wider-range of problems, they may

become less efficient at dealing with commonly occurring problems.

For example, if we improve customer service problem solving by cross-training personnel to deal

with a wider-range of problems, they may

become less efficient at dealing with commonly occurring problems.

For example, if we reduce costs by reducing product quality inspections, we might reduce product quality.

For example, if we reduce costs by reducing product quality inspections, we might reduce product quality.

Definitions of Quality

• Product Based: – “Product Attributes”

• User Based: – “Fitness for intended use”

• Value Based: – “Quality Vs Price”

• Transcendent: – “Level of excellence”

• Manufacturing Based:– “Conformance to specifications”

Quality Improvement for Customer Value

CUSTOMER

PRODUCTDESIGN

Quality of Performance /

Use

Quality of Conforman

ce

Quality of

Design / Redesign

Purpose: “Customer Value”

Quality Parameters• Quality is a composite of three parameters:

– Quality of Design / Redesign – Quality of Conformance– Quality of Use / Performance

• Quality of Design: (Product and User Based Quality) is the extent to which the design reflects a product or service that satisfies the customer needs or expectations.

• Quality of Conformance: (Manufacturing Based Quality) is the extent to which the product or service conforms to the design standard expectations.

• Quality of Use: (User Based Quality) is the extent to which a product is easy to use, reliable and maintainable.

QUALITY MANAGEMENT

An ongoing effort to provide Products / services that meet or exceed customer expectations through a structured, systematic process for creating organizational participation in planning and implementing quality improvements.

Total Quality

• People-focused management system• Focus on increasing customer satisfaction and

reducing costs• A systems approach that integrates

organizational functions and the entire supply chain

• Stresses learning and adaptation to change based on the scientific methods

Principles of Total Quality

• Customer and stakeholder focus• Participation and teamwork• Process focus and continuous

improvement

What is TQM ?• TQM is the concept of:

– reducing costs, – improving overall efficiency and – having a policy of customer satisfaction, – right first time operations and – continuous quality improvement throughout the

company and – utilizing the whole workforce.

TQM Philosophy TQM Philosophy “Do the right things, right the first time, every time”

Definitions

• TQM is an integrated system for creating an organization-wide participation in planning and implementing a continuous improvement process to meet and exceed customer needs.

• TQM is much broader than conventional quality management, which refers only to the finished products and/or services.

• Total Quality Management (TQM) is an integrated system of principles, methods, and best practices that provide a framework for organizations to strive for excellence in everything they do.

Continuous Improvement (through measurement and analysis)

Customer Focus

ProcessManagement

Employee Training & Empowerment

T. Q. M.

• Reduce rework activities (Cost reduction) • Shorter development cycle (Cost reduction)

• Increased customer satisfaction (Quality

improvement)

PILLARS OF TQM

1- Customer Focus Studying customer needs, gathering customer requirements, and measuring and

managing customer satisfaction.

Customer satisfaction is seen as the company's highest priority. The company believes it will only be successful

if customers are satisfied.

2- Process Management Develop a production process that reduce the product variations. Applying the

same process; the same product should be produces with the same level of quality every time.

Teams are process-oriented, and interact with their internal customers to deliver the required results. Management's focus is on controlling the overall

process, and rewarding teamwork.

Pillars of TQM

3- Human side of Quality TQM environment requires a committed and well-trained work force

that participates fully in quality improvement activities.

On-going education and training of all employees supports the drive for quality.

4- Continuous Improvement TQM recognizes that product quality is the result of process quality. As a

result, there is a focus on continuous improvement of the company's processes.

This will lead to an improvement in process quality. In turn this will lead to an improvement in product

quality. Measurement and analysis id the tool that has been used for that.

Pillars of TQM

TQM model for organization

Operational Model of TQM

Quality Management System (QMS)

Qualitative / Quantitative Problem Solving tools

Management Support & Commitment

• Total Participation

• Self Empowered team

BASIC PRINCIPLES OF TQM

Approach Management Lead

Company wide

Everyone is responsible for Quality

Prevention not detection

Right first time

Cost of Quality

On going improvement

Scope

Scale

Philosophy

Standard

Control

Theme

TQM: A “CULTURAL” CHANGE. • Responsibility is pushed down to “empower” the people who

know the most about the job, process or service. • TQM focus is on the process; • TQM separates the improvement process from people

personalities and egos. “Top-down” management styles disappear.

• Reporting levels are reduced/streamlined.• Management’s role shifts to more emphasis on coaching.• Jobs are not eliminated, but job content may change

QUALITY IS A JOURNEY, NOT A DESTINATION

QUESTIONS