A power point presentation on TQM

7/27/2019 A power point presentation on TQM

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Total Quality Management


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Background

What is TQM

It is an integrated organisational effort

designed to improve quality at every level

of any organisation.

It is about meeting quality expectations


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Defining Quality

1. Conforming to specifications how well

a product or service meets targets and

tolerances determined by its designers

2. Fitness for use

Evaluates how well the product performs

for its intended use


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Quality defined

3. Value for price paid: quality defined in

terms of product or service usefulness for

price paid

4. Support services: quality defined in terms

of support provided after the product

/service is purchased.


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TQM defined contd.

Making quality a priority means meeting

and exceeding customer expectations by

involving everyone in the organisation

through an integrated effort designed toimprove quality at every level.

TQM is meeting quality expectations as

defined by the customer; this is calledcustomer-defined quality.


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Differences Between

Manufacturing & Service Organ.

Manufacturing org. produce tangible

product can be seen, touched and

directly measure e.g. clothes, cars,

computers

Thus quality definitions focus on tangible

features performance, durability,

reliability, serviceability


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Service Organisations

Produce a product that is intangible

usually cannot be seen or touched e.g.

delivery of health care, experience of

staying in a hotel, learning at a university,being admitted in a hospital

Defining quality of intangible nature

difficult; quality of services often definedby perceptual factors


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Quality in Service Organ.

Include responsiveness to customer

needs, courtesy and friendliness of staff,

promptness in resolving complaints, and

atmosphere

Other definitions include time (how long

customer has to wait for service),

consistency (degree to which service issame each time).


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Cost of Quality

Poor quality related to high costs; hasdramatic implications

Creates dissatisfied customers and

eventually leads to loss of businessOther costs of quality:

1. Quality control costs which include

prevention and appraisal costs2. Quality failure costs include external

failure and internal failure costs.


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Costs cont.

Employee training in quality measurement

included as part of this cost, and

Costs of maintaining records of

information and data related to quality


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Appraisal costs

Incurred in process of uncovering defects.

Include cost of quality inspections, product

testing, performing audits to ensure that

quality standards are being met.

Internal failure costs associated with

discovering poor product quality before

product reaches customer.


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External failure costs

Associated with quality problems that occur at

the customer site. Includes customer complaints,

product returns, repairs, warranty claims, recalls.

Lost sales and lost customers. Companies that consider quality important invest

heavily in prevention and appraisal costs to

prevent internal and external failure costs e.g.

detecting and correcting defects during productdesign and production less expensive than when

defects found at customer site.


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*Philosophy of TQM

Characteristics: TQM focuses on (i) identifyingroot causes of quality problems and correctingthem at the source, as opposed to inspecting theproduct after it has been made.

(ii) Stresses that quality is customer driven andattempts to embed quality in every aspect of theorganisation.

(iii) Concerned with technical aspects of qualityand involvement of people in quality such ascustomers, company employees, and suppliers.


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1. Customer focus

First feature of TQM is companys focus on itscustomers

Quality is defined as meeting or exceedingcustomer expectations. Goal is to identify and

then meet customer needs. A perfectly producedproduct has little value if it is not what customerwants because tastes and preferences change.

Quality is customer driven

Companies need to continually gatherinformation thru focus groups, market surveys,customer interviews to stay in tune with whatcustomers want.


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2. Continuous improvement

(kaizen)

A philosophy of never-ending

improvement. Requires that company

continually strives to be better through

learning and problem solving

Because we can never achieve perfection,

we must always evaluate our performance

and take measures to improve it.


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*Approaches that can help

companies with cont. improvementa. Plan-Do- Study-Act Cycle (PDSA) describes

activities a company needs to perform in order toincorporate continuous improvement in itsoperation.

i. Plan first step is to plan. Managers mustevaluate current process and make plans basedon problem found

Need to document all current procedures, collect

data, and identify problems This information should then be studied andused to develop a plan for improvement as wellas specific measures to evaluate performance.


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PDSA Cycle

ii. Do implement plan. During

implementation process, managers should

document all changes made and collect

data for evaluation

iii. Study data collected in previous phase;

data evaluated to see whether plan is

achieving goals established in theplanphase.


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PDSA Cycle contd.

iv. Act on the basis of the results of first

three phases.

Best way is to communicate results to

other members in company and implement

new procedure if it has been successful.

Afterwards, need to continue evaluating

process, planning and repeating cycle

again.


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b. Benchmarking

Another way of implementing continuous

improvement by studying business

practices of other companies considered

best in class for purposes of comparison.

Benchmark company does not have to be

in same business, as long as it excels at

something that company doing the studywishes to emulate (copy).


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c. Employee Empowerment

TQM empowers employees to seek out quality

problems and correct them. TQM provides

incentives for employees to identify quality

problems and are rewarded for uncoveringquality problems, not punished.

Employees given continual and extensive

training in quality measurement tools to assist in

making decisions relative to quality in theproduction process.


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Employee empowerment cont.

Role of employees in TQM very different fromwhat it was in traditional systems

Workers empowered to make decisions relative

to quality in the production process. They areconsidered a vital element of the effort toachieve high quality. Their contributions arehighly valued, and suggestions areimplemented.

Employees given continual and extensivetraining in quality measurement tools to performthis function


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To further stress role of employees

in quality

TQM differentiates between external and

internal customers

Externalthose that purchase companys

goods and services e.g. patients in hospital Internal customers employees of the

organisation who receive goods and services

from others in the company.

A defective item would not be passed to external

customer, nor to an internal customer.


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Employee Empowerment cont.

TQM stresses team work in solving qualityproblems. Teams work regularly to correctproblems through e.g. quality circle,brainstorming, discussion, quality control tools

What is a Quality circle a team of volunteerproduction employees and their supervisors (8-10) that volunteer and meet regularly to solvequality problems.

Team meets weekly; analyses and solveproblems, decisions made through groupconcensus.


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Quality circle

Open discussion promoted; criticism not allowed

QCs friendly and casual but is serious business.

Very successful in many firms

Employees viewed as most importantorganisational resource and great care is taken

in employee hiring and training.

Employees extensively trained in customerservice, communication, and quality awareness


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Use of Quality tools

Continual monitoring of quality important, andemployees meet regularly in teams to evaluatetheir effectiveness. All employees shown howquality of their individual jobs contributes tosuccess of business.

If employees are to identify and correct qualityproblems, they need proper training

Need to understand how to assess quality byusing a variety ofquality control tools, how tointerpret findings, and how to correct problems.


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7 Tools of Quality Control

Include cause and effect diagrams, flow charts,checklist, control charts, scatter diagrams,Pareto analysis, histogram.

1. Cause and effect diagrams charts thatidentify potential causes for particular qualityproblems. Sometimes called the fishbonediagram. Head of fish (quality problem), spinethat connects to head is cause of the problem.Causes could be related to machines, workers,measurements, suppliers, materials and otheraspects of production.


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Quality control tools

2. Flowcharts a schematic diagram of the

sequence of steps involved in an operation or

process. By seeing the steps involved in an

operation process, everyone develops a clearpicture of how the operation works and where

the problem could arise.

3. Checklist a list of common defects and the

number of observed occurrences of thesedefects. Allows worker to collect specific

information regarding defects observed.


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4. Control charts used to evaluate whether

a process is operating within set

expectations relative to some measured

value such as weight, width, or volume.For example, we can measure the weight

of food items when delivered, volume of

bottle of soft drink. When productionprocess is operating within expectations,

we say that it is in control


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5. Scatter diagrams are graphs that show

how two variables are related to one

another; particularly useful in detecting the

amount of correlation, or degree of linearrelationship between two variables. For

example, increased production speed and

number of defects could be correlated+vely; as production speed increases, so

does the number of defects.


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Quality control tools contd.

The greater the degree of correlation, the morelinear are the observations in the scatterdiagram. On the other hand, the more scatteredthe observations in the diagram, the less

correlation exists between the variables.

Other types of relationships can also beobserved e.g. an inverted U. May be the casewhen one is observing the relationship between2 variables such as oven temperature andnumber of defects, since temperature below andabove the ideal could lead to defects.


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Quality tools

6. Pareto analysis a technique used toidentify quality problems based on theirdegree of importance. Logic behind this

analysis is that only a few quality problemsare important. Also called the 80-20 ruleand trick is to identify the causes.

One way is to develop a chart that rankscauses of poor quality in decreasing orderbased on % of defects each has caused.


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Quality control tools contd.

For example, a tally can be made of the number

of defects that result from different causes, such

as cook error, wrong recipes, or inaccurate

measurements of portions in serving specialdiets. Percentages of defects can be computed

from the tally and placed in a histogram chart

7. A histogram chart that shows the

frequency distribution of observed values of avariable.


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Quality tools

In the foodservice industry, use of quality control

tools important in identifying quality problems.

Quality tools can be used to evaluate the

acceptability of product quality and to monitorproduct quality from individual suppliers.

Can also be used to evaluate quality problems

e.g. long transit time or poor refrigeration, or

evaluate and monitor quality of delivered goods

(meat, vegetables, groceries, dry stores etc).


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Product Design

A critical aspect of building quality into a product

is to ensure that product design meets customer

expectations

A useful tool for translating the preferences ofcustomer into specific technical requirements is

quality function deployment (QFD).

QFD also useful in enhancing communication

between different functions such asmarketing,

food contractors, hospital administration.


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Process Management

According to TQM, a quality product

comes from a quality process. This means

that quality should be built into the

process.

Quality at the source belief that it is

better to uncover source of quality

problems and correct it than to discarddefective items after production.


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Managing Supplier Quality

Traditionally, companies engaged suppliers in

competitive price bidding. When materials arrive,

an inspection is performed to check their quality.

TQM views this practice as contributing to poorquality and waste time and cost.

Today, company representatives reside at their

suppliers location, and are involved in every

stage from product design to final production.


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Why TQM Efforts Fail

Most important factor in success/failure ofTQM efforts is the genuineness of theorganisations commitment. Companies

have to embrace TQM with true belief, notmere lip service.

Common causes of TQM failure:

lack of genuine quality culture; lack of top management support andcommitment;


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TQM oriented companies

Companies that have attained benefits ofTQM have created a quality culture.

Have developed processes for identifying

customer-defined quality and Have a systematic methods for listening to

their customers, collecting and analyzing

data pertaining to customer problems, andmaking changes based on customerfeedback.


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Operations Management

Implementing TQM requires broad andsweeping changes throughout the foodservice.

Also affects other decisions within operationsmanagement.

It sets direction for the firm and level ofcommitment

Decision to implement TQM affects productdesign, which needs to incorporate customer-defined quality. Processes are then redesignedin order to produce products with higher qualitystandards


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Operations management

Job design is affected as workers need to be

trained in quality tools and become responsible

for eliminating quality problems

Supply chain management also affected ascommitment to quality translates into partnering

with suppliers

Every aspect of the operations function must

change to support the commitment toward TQM.

Q C S


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TQM has IMPACTS on every

aspect of organisation

Goal of TQM is to satisfy customer needs by

producing the exact product that customers

want.

Requires solid identification of target marketsand an understanding of whom product is

intended for.

Marketing needs to accurately pass customer

info along to operations & operations to includemarketing in any planned changes.


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Summary

Decision to implement TQM affectsproduct design which needs to incorporatecustomer-defined quality. Processes

redesigned in order to produce productswith higher quality standards

Job designed affected workers need tobe trained in quality tools and becomeresponsible in identifying/solving qualityproblems

A power point presentation on TQM

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