Total Quality Management
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Transcript of Total Quality Management
Total Quality Management
Einstein & Athalia
Structure
I. Introduction
II. Reasons to learn about TQM
III. Cost of quality
IV. Total quality management principles
V. Tools of TQM
VI. Quality process component
Structure (Cont’d)
VII. Barriers to TQM
VIII.Benefits of TQM
IX. Summary
Introduction:
Total Quality Management (TQM) is a management approach that aims for long-term success by focusing on customer satisfaction. TQM is based on the participation of all members of an organization in improving processes, products, services, and the culture in which they work.
II. Reasons To Learn About TQM (Cont’d)
A. Managers need to use their technical expertise and the quality process to improve product quality and their firm’s productivity
B. Managers need to use their interpersonal skills as a change agent and contest for power in an organization
C. Managers need to understand that Quality is a part of production - it is not apart from production
II. Reasons To Learn About TQM (Cont’d)
D. Engineers/Mangers need to be creative in improving the engineering process, and recognize that “quality” is not features; that is, a Ford-built Lincoln has more features than a Ford-built Taurus, but it does not necessarily have higher quality
E. Engineers/Managers need to think beyond issues of technology, and learn the means whereby people, processes and technology come together
III. Cost of Quality
A. Contractors pay a significant price for poor quality resulting from accidents, waste, rework, inefficiencies, poor subcontractor performance and poor communication - these costs are estimated to be between 5% and 30% of the construction cost of a facility
B. Cost of nonconformance - includes both direct and indirect costs of not doing things right the first time
III. Cost of Quality
1. Factorsa) Accidentsb) Omissionsc) Errorsd) Poor workmanshipe) Being late
2.Resultsa) Reworkb) Recallsc) Expediting
III. Cost of Quality (Cont’d)
d) Removal of punch list items
e) Time extensions
f) Litigation costs and damages
g) Penalties and liquidated
damages
h) Increased insurance costs
III. Cost of Quality (Cont’d)
C. Cost of Conformance - includes preventive measures
1. Inspection of direct hire work
2. Inspection of subcontractor work
3. Inspection at vendor source of supply
4. Inspection of shipments
5. Review of shop drawings
III. Cost of Quality (Cont’d)
6. All training costs, including safety7. Facilitator costs8. Salary of quality coordinator9. Meetings of the steering committee
and quality improvement teams10. Administration of the quality
management program11. Reward system
IV. Total Quality Management PrinciplesProvide understanding of and guidance on
the application of TQM
A.Customer-Driven Organization
1. Organizations depend on their customers and
therefore should understand current and future
customer needs, meet customer requirements,
and strive to exceed customer expectations
IV. Total Quality Management Principles (Cont’d)
2. It requires 10 times as much money to attract a new
customer than it requires to keep a customer you
already have......keep the present customer happy
B. Leadership
1. Leaders establish unity of purpose, direction, and the
internal environment of organization; they fully
involve people in achieving the organization’s
objectives
IV. Total Quality Management Principles (Cont’d)
2. The difference between an average and an
outstanding company is the leadership they have
C. Involvement of People
1. People are the essence of an organization and
their full involvement enables their knowledge
and experiences to be used for the organization’s
benefit
2. Employees are a company’s greatest asset
IV. Total Quality Management Principles (Cont’d)
3. An individual without information can not take
responsibility; an individual with information
can and will take responsibility
D. Process Approach
- A desired result is achieved more effectively when related resources and activities are managed as a process
IV. Total Quality Management Principles (Cont’d)
E. System Approach to Management
- Identifying, understanding, and managing a
system of interrelated processes for a given
objective will contribute to the effectiveness
and efficiency of the organization
IV. Total Quality Management Principles (Cont’d)
F. Continual Improvement
1. Continual improvement is a permanent
objective of the organization
2. In the race for quality, there is no finish line
3. Quality comes from within; it comes from the
hearts and the minds of the people
IV. Total Quality Management Principles (Cont’d)
G. Factual Approach to Decision Making - Effective
decisions and actions are based on the analysis of data
and information
H. Mutually Beneficial Supplier Relationships1. Mutually beneficial relationships are established to
enhance the ability of both organizations to create
value
2. Relates to Partnering - Lecture 33
V. Tools of TQM
A. Check Sheet -
1.Tabulates frequency of occurrence
2.Easy to use and understand
3.Data gathered here can be used in
other tools
V. Tools of TQM (Cont’d)
B. Graph
1.Visual display of data
2.Major types
a) Line graph
b) Bar chart
c) Circle diagram (pie chart)
V. Tools of TQM (Cont’d)
C. Histogram -
1.Portrays frequency of occurrence2.Shows various measures of central
tendency
D. Pareto Chart -
1.Visually portrays problems and causes in order of severity or frequency
V. Tools of TQM (Cont’d)
2.Helps determine which problems or cause
to tackle first
E. Cause-and-effect diagram
1.Portrays possible causes of a process
problem
2.Helps determine root cause
V. Tools of TQM (Cont’d)
F. Scatter diagram
1.Indicates the relationship between two
variables
2.Displays the strength of that relationship
G. Control Chart -
1.Monitors a process to determine magnitude
of variation
V. Tools of TQM (Cont’d)
2.Estimates the parameters of a process
3.Reduces the variability of a process
H. Flowchart
1. Portrays all the steps in a process
2. Helps understand the process
VI. Quality Process Component
A. Motivation
- based on recognition, commendation, recommendation, repeat business, reward
B. Communication
- must be team-wide, involving all partners, as well as thorough, honest, and complete
C. Commitment
- to the project, to the process, to all the partners, and to the promised result
VI. Quality Process Component (Cont’d)
D. Expectations
- realistic, reasonable, communicated, understood, and accepted
E. Ability - adequate, understood, and consistent
F. Involvement - total, all-party, and consistent
G. Feedback
- thorough, understandable, and complete Follow-up - complete and consistent, as well as
long term
VII. Barriers to TQM
A. Lack of trained workers/poorly installed
equipment/poor workmanship
B. Competitive markets
C. Poor plans and scheduling
specifications/poorly defined work scope
D. Bad attitudes
E. Lack of competent field managers
VIII. Benefits of TQM
A. Better defined project scope and
objectives
B. Greater communication of objectives
C. Teamwork
D. Effective planning and scheduling
E. Appropriate Training
VIII. Benefits of TQM (Cont’d)
F. Improved quality of materials,
equipment, and workmanship
Case Studies – Refer to Douglas Electrical
Case
IX. Summary
TQM principles
Tools of TQM
Barriers to TQM
Benefits of TQM