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TOTAL QUALITY MANAGEMENTTOTAL QUALITY MANAGEMENT

1. INTRODUCTION1. INTRODUCTION2. DEFINITIONS2. DEFINITIONS

a) QUALITYa) QUALITY

b) TQMb) TQM

3. FUNDAMENTAL CONCEPTS3. FUNDAMENTAL CONCEPTS4. PROCESS APPROACH4. PROCESS APPROACH

5. COST OF QUALITY5. COST OF QUALITY

6. 7 QC TOOLS6. 7 QC TOOLS

7. WASTE ELIMINATION7. WASTE ELIMINATION8. TQM MODELS8. TQM MODELS

9. CONCLUSION9. CONCLUSION

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TOTAL QUALITYMANAGEMENTMANAGEMENT

C1S1

Cn

C2S2

Sn

SUPPLIERS BUSINESS PROCESS CUSTOMERS

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QUALITYQUALITY

1. Conformance to requirements1. Conformance to requirements(specifications)(specifications)

2. Freedom from deficiencies2. Freedom from deficiencies

3. Prevention of non conformities3. Prevention of non conformities4. Customer satisfaction4. Customer satisfaction

5. Fitness for use5. Fitness for use

6. Value for Money6. Value for Money

7. Avoiding loss to society7. Avoiding loss to society

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TOTAL QUALITY MANAGEMENTTOTAL QUALITY MANAGEMENT

[TQM][TQM]

DEFINITIONDEFINITION

1. Total Quality Management is an approach for1. Total Quality Management is an approach foreffective management of a business enterpriseeffective management of a business enterprisethrough focus on its people and processes bythrough focus on its people and processes bycompany wide customer driven leadership.company wide customer driven leadership.

KEY WORDSKEY WORDS

1. Waste elimination1. Waste elimination

2.Customer focus2.Customer focus

Internal customerInternal customer External CustomerExternal Customer

3. Continual Improvements3. Continual Improvements

4. Data and facts based management4. Data and facts based management

Q

C D

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FUNDAMENTALFUNDAMENTALCONCEPTSCONCEPTS

1. Commitment.1. Commitment.

2. Customer Satisfaction.2. Customer Satisfaction.3. Quality Losses.3. Quality Losses.

4. Process Measurement.4. Process Measurement.

5. Continuous improvement.5. Continuous improvement.6. Participation by all.6. Participation by all.

7. Problem identification.7. Problem identification.

8. Corporate objectives and individual8. Corporate objectives and individual

attitudes.attitudes.9. Personal accountability.9. Personal accountability.

10. Personal Development.10. Personal Development.

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QUALITY MANAGEMENT PRINCIPLESQUALITY MANAGEMENT PRINCIPLES

[As they Appear in ISO 9000:2000][As they Appear in ISO 9000:2000]

PRINCIPLE 1:PRINCIPLE 1:CUSTOMER FOCUSCUSTOMER FOCUS

PRINCIPLE 2:PRINCIPLE 2:

LEADERSHIPLEADERSHIP

PRINCIPLE 3:PRINCIPLE 3:

INVOLVEMENT OF PEOPLEINVOLVEMENT OF PEOPLE

PRINCIPLE 4:PRINCIPLE 4:

PROCESS APPROACHPROCESS APPROACH

PRINCIPLE 5:PRINCIPLE 5:

SYSTEM APPROACH TO MGTSYSTEM APPROACH TO MGT

PRINCIPLE 6:PRINCIPLE 6:

CONTINUAL IMPROVEMENTCONTINUAL IMPROVEMENTPRINCIPLE 7:PRINCIPLE 7:

FACTUAL APPROACH TO DECISION MAKINGFACTUAL APPROACH TO DECISION MAKING

PRINCIPLE 8:PRINCIPLE 8:

MUTUALLY BENIFICIAL SUPPLIER RELATIONSMUTUALLY BENIFICIAL SUPPLIER RELATIONS

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PROCESSPROCESS

PROCESS

CONTROLS

OUTPUTSINPUTS

RESOURCES

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UNIT OF SUPPLY CHAINUNIT OF SUPPLY CHAIN

SUPPLIER

PROCESSADDINGVALUE

TO CUSTOMER

CUSTOMER

INPUTS

FEEDBACK

OUTPUTS

FEEDBACK

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CHANGING ROLE OF PROCESSCHANGING ROLE OF PROCESS

OWNEROWNER

AS CUSTOMER

PROCESS OWNER

AS SUPPLIER

AS CUSTOMER

PROCESS OWNER

AS SUPPLIER

OUTPUT

TO

OUTPUI

INPUT

INPUT FROM

SUPPLIER

CUSTOMER

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PREVENTIVE APPROACHPREVENTIVE APPROACH

1 10 100 RULE1 10 100 RULE

1 2 3

1 10 100

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COST OF QUALITYCOST OF QUALITY

ALL EXPENSES INCURRED TOALL EXPENSES INCURRED TO

ENSURE QUALITY AS WELL ASENSURE QUALITY AS WELL AS

EXPENSES A COMPANY IS FORCEDEXPENSES A COMPANY IS FORCED

TO SPEND AS A RESULT OF FAILURETO SPEND AS A RESULT OF FAILURETO MEET QUALITY REQUIREMENTSTO MEET QUALITY REQUIREMENTS

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QUALITY COSTSQUALITY COSTS

COST OF CONTROL COST OF FAILUREOF CONTROL

COST OF FAILURE OFCONTROL

COST OF CONTROL

EXTERNAL FAILURE COSTS

INTERNAL FAILURE COSTS

APPRAISAL COSTS

PREVENTION COSTS

QUALITY COSTSSEGMENTS

QUALITY COSTS

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7 QC TOOLS7 QC TOOLS

1. Check sheet1. Check sheet

2. Flow chart2. Flow chart

3. Histogram3. Histogram

4. Controls charts4. Controls charts

5. Pareto diagram5. Pareto diagram

6. Cause and effect diagram6. Cause and effect diagram

7. Scatter diagram7. Scatter diagram

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CHECK SHEETCHECK SHEET

SL.NO

TYPE OF

DEFECT

DATE TOTAL

DEFECT1 2 3 4 5 6 - - - - - 30 31

1 Dents 1,1,1 1,1 1 - - - - - - - - - - - 18

2 Parts

Missing

1 - - 1 - - - - - - - - - - 10

3 Parts

Broken

- - 1 - - - - - - - - - - - 8

4 Paint

Defects

1,1 1 1 - - - - - - - - - - - 30

5 Scratches

- 1 - - - - - - - - - - - - 05

6 Misc

Defects

- - 1 - - - - - - - - - - - 03

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var ia tion in sh af t D ia

0

50

100

150

200

250

-6 -4 -2 0 2 4 6 8 10

D e v i a t io n i n M i c r o n fr o m N o m i n a l

Numbarofshafts(Fre

quency)

108

182

225

210

160

90

60

20

46

Total Number of Analysed : 1103

HISTOGRAM

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Sl.No Type of Defects

Total

Defects

1 Dents 18

2 Parts Missing 10

3 Parts Broken 8

4 Paint Defects 30

5 Scratches 05

6 Misc Defects 03

PARETO ANALYSIS

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Sl.No Type of

Defect

Total

Defect

1 Paint Defects 30

2 Dents 18

3 Parts missing 10

4 Parts broken 8

5 Scratches 5

6 Misc defects 3

PARETO ANALYSIS

PARETO ANALYSISPARETO ANALYSIS

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PARETO ANALYSISPARETO ANALYSIS

Sl.No

Type ofDefect

No ofDefects

CauseNo of

Defects

% ofTotal

defects

Cum %of total

defects

1 PaintDefect

30 30 40.54 40.56

2 Dents 18 48 24.32 64.86

3 Partsmissing

10 58 13.51 78.37

4 Partsbroken

08 66 10.81 89.18

5 Scratches 05 71 6.75 95.95

6 Misc

defects

03 74 4.05 100

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A s s e m b ly D e fe c t s - F in a l In s p

0

1 0

2 0

3 0

4 0

5 0

6 0

7 0

8 0

P a i nt D e fe c t s D e n t s P a rt s M i s s in gP arts B rok en S c re tc he s M is c . D efec tsT y p e s o f D e

NumberOfTimersTh

eDefectsOccurs

Three Defects account for 80% of Problem30

20

10 9

87

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N o n - S t a rtin g o f T w o

0

2 0

4 0

6 0

8 0

1 00

1 20

F u e l Ig n it io n S p a rk p lu gC a rb u ra to r C h o k e M a g n et o E x h a u s t O t he rs

T y p e s o f P r o b

NumberofTimesP

roblemsOccurs

Three Causes account for over 82% Problems

30

25

8

40

4 32 3

C Eff Di D il E l U l TV Pi

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Receiver

TV pictureNot clear

TransmissionPower

Tuning

Interference

Defective Stabilizer

Voltage

fluctuation

Poor transmission

Poor weather

Poor Satellite link

Not tuned

Booster defective

Defective tuner

Picture tube defective

Poor Scanning

Loose contact

Cause Effect Diagram Daily Example Unclear TV Picture

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SCATTER DIAGRAMSCATTER DIAGRAM

Material: ABS

0.1

1

10

120C 130C 180 200C 225C

Temperture

%RejShortMould

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FIVE WHYSFIVE WHYS

Problem: Malfunction of digital controller for NC machineProblem: Malfunction of digital controller for NC machine

Why Defective printed circuit boardWhy Defective printed circuit board

Why Lack of coolingWhy Lack of cooling

Why Lack of airWhy Lack of air

Why Lack of pressureWhy Lack of pressure

Why Dust on filterWhy Dust on filter

Solution: Clean filter every monthSolution: Clean filter every month

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A simplified Critical Activity chart of a typical pickling section is shown in the example. In fact, toA simplified Critical Activity chart of a typical pickling section is shown in the example. In fact, to

make it simple only one or two entries are made in each box.make it simple only one or two entries are made in each box.

INPUTS WORK ACTIVITY OUTPUTS

Material Chemicals

To Pickle Components ..

Pickled components Production Reports

..

SUPPLIERS TASK DETAILS CUSTOMERS

External Chemical Suppliers

Arrange Material In BinsCheck Temperature

..

External None directly

Internal

Press Shop

Stores

.

Internal

Paint Shop

..

PROBLEMS WITH INPUTS PROBLEMS WITH PROCESS PROBLEMS WITH OUTPUTS

Material too rusty

Late Receipt of material

Crane not Reliable

Cages and Bins insufficient

..

Paint shop not satisfied with rustremoval

Progress Section Does not get

reports on time .

TQM MODELTQM MODEL

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TQM MODELTQM MODEL

MGT DRIVEN

TOP DOWN

EXTERNAL

CUSTOMERFOCUS

[BM]

KEY PROCESS

INCREMENTAL

IMPROVEMENT

INTERCUSTOMER

FOCUS

BOTTOM UP

PEOPLE

DRIVEN

MICRO

MACRO

CUSTOMER FOCUS PROCESSES

INNOV

ATIO

N

ENABL E

RS

TECHN

O

LOGY

VISION PURPOSE VALUES

E

MPOW

ERMEN

TPE

OPLE

ENRICHME

N

T

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FULLY INTEGRATED QUALITYFULLY INTEGRATED QUALITY

STRATEROYSTRATEROY1.1. LEADERSHIP ANDLEADERSHIP AND

STRATEGIC DIRECTIONSTRATEGIC DIRECTION

DECISION MAKINGDECISION MAKING

MANAGEMENT LEVELSMANAGEMENT LEVELS

COMMUNICATIONCOMMUNICATION

TOP TEAMTOP TEAM

MARKETING STRATEGYMARKETING STRATEGY

2. PEOPLE MANAGEMENT

EMPLOYEE INVOLVEMENT COMMUNICATION

PERSONNEL ISSUES

ORGANISATIONAL DESIGN

MANAGEMENT STYLE

TRAINING

RECRUITMENT

STAFF SURVEYS

REMUNERATION

PERFORMANCE

MANAGEMENT

3. PROCESS MANAGEMENT

PROCESS OWNERSHIP

PROCESSIMPROVEMENT

RE-ENGINEERING

INTERNAL CUSTOMER-SUPPLIE RELATIONSHIP

4. RESOURCE MANAGEMENT

SYSTEMS AND INFORMATION

TECHNOLOGYBREAKTHROUGH

FINANCIAL ESOURCES

SUPPLIERS, EQUIPMENT ETC.

5. CUSTOMER FOCUS

RELIABILITY

TEGIBILITY RESPONSIVENESS

FLEXIBILITY

ACCESSIBILITY

TRUST

EMPATHY

PEOPLE ARE KEY TO QUALITY

TECHNOLOGY IS THE FACILITATOR

PROCESSES SHOULD ADD VALUE

INNOVATIONS KEEPS YOU AHEADOF THE GAME.

SUMMARY

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BUSINESS

EFFECTIVENESS

PEOPLE

FOCUS

PROCE

SS

FOCU

SCUS

TOMER

DRIV

EN

LEADERSHIP

EFQM MODEL FOR

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LEADERSHIP PROCESSESBUSINESSRESULTS

PEOPLEMANAGEMENT

POLICYSTRATEGY

RESOURCES

PEOPLESATISFACTION

CUSTOMERSATISFACTION

IMPACT ONSOCIETY

ENABLERSRESULTS

EFQM MODEL FORBUSINESS EXCELLENECE

TQM MODEL OF

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MANAGINGFOR QUALITY

CUSTOMER

EMPLOYEEINVOLVEMENT

CONTINUOUSIMPROVEMENT

ALCOA

TQM MODEL OFALCOA

TQM MODEL OF AT&T

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Supplier Process Customer

TQM MODEL OF AT&T

SupplierPartnership

Process ManagementAnd improvement

CustomerFocus

People,Leadership and involvement

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TQMACTIVITIES

FOCUS ONCUSTOMER

CONTINUOUSIMPROVEMENT

TOTAL

PARTICIPATION

SOCIETALNETWORKING