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Transcript of Total Quality Management
J.M.Pant, Faculty
Total Quality Management
Faculty: J.M.PantManagement Consultant, Trainer and Visiting Professor
For any query, contact Mob: 9811030273;
e-mail: [email protected]; [email protected]
Total Quality Management
1. Main concerns of Manufacturers and Customers• Manufacturer Customer• Quality Quality• Cost Price• Productivity Availability• Concerns of manufacturer and customer are
generally not the same. Customer usually• has no concern for company productivity and cost.• Quality is the only common concern
J.M.Pant, Faculty
Total Quality Management
2. What is Total Quality Management (TQM) The elements of TQM as the name suggests are :
TotalQuality
Management Total implies -
Complete - 100%All areas and functionsAll activitiesAll employees - everyoneAll time - always
J.M.Pant, Faculty
Total Quality Management
3. Quality target is 100%, not even 99.9% because even 99.9% might mean many dissatisfied customers every year, defective components entering assembly, accidents etc.
Quality definitionOld view : Quality relates to products manufactured exactly to specifications.
New view : Total Quality relates to products that totally satisfy our customer needs and expectations in every respect on a continuous basis. Quality then is to satisfy customer needs....it is in fact to delight customers.
J.M.Pant, Faculty
Total Quality Management
4. Who is our customerThe next person(individual or functional group) in the workplace; the receiver of output and the next to act on it. A customer may be either external or internal.
Example : Next in process customer Marketing Design
Design ManufacturingManufacturing SalesMachine Shop AssemblyAssembly TestingTesting Despatch
Sales Product user
J.M.Pant, Faculty
Total Quality Management
5. Management implies : Quality does not happen on its own. It
requires to be planned and managed. It is a management function, though it involves everyone. Therefore it needs a systematic approach.
TQM = Sum of TOTAL + QUALITY + MANAGEMENT
J.M.Pant, Faculty
Total Quality Management
6. TOTAL QUALITY MANAGEMENT is a thought revolution in management where the entire business is operated with customer orientation in all activities all the time by every one in the organization.
TQM is an integrated system and methodology throughout the organization that help to design, produce and service quality products or services which are most economical for their value, most useful and always satisfactory to the customer.
J.M.Pant, Faculty
Total Quality Management• 7. Elements of TQM• 7.1 Top management commitment– Management responsibility– Support all TQM activities– Appointment of management representative– Customer feedback and complaints– Quality reviews– Shareholder delight
• 7.2 Delight the customer– Customer satisfaction, customer delight– Internal customers– Customer focus, customer orientation
J.M.Pant, Faculty
Total Quality Management• 7. Elements of TQM• 7.3 People based management– Total Employee Involvement– Employee delight– Team work– People make quality– Education and Training– Effective communication– Internal audits– Review of non conformities
J.M.Pant, Faculty
Total Quality Management
• 7. Elements of TQM• 7.4 Management by fact– Process orientation– Measurement, Observation, Experimentation
• 7.5 Continuous improvement– Continuous improvement cycle (PDCA)– Kaizen– 5S– Prevention of repetitive occurrence
J.M.Pant, Faculty
PDCA Cycle
J.M.Pant, Faculty
1. PlanIdentify problem and develop plan for improvement.
2. DoImplement plan on a test basis.
3. Study/CheckAssess plan; is it working?
4. ActInstitutionalize improvement; continue cycle.
What to do?How to do?
Do as plannedThings as per plan?
How to improve next time?
Problem Solving Cycle• PDCA for problem solving
J.M.Pant, Faculty
Plan
Do
Check
Action
What
Why
How
Definition of problem
Analysis of Problem
IdentificationOf causes
Planning Countermeasures
Implementation
ConfirmationOf result
Standardization
Total Quality Management
• 7. Elements of TQM• 7.6 Appropriate technology– JIT– Automation– Fool proofing– TPM
• 7.7 Statistical process control• 7.8 Problem solving tools/techniques including
Seven QC tools• 7.9 Benchmarking
J.M.Pant, Faculty
Total Quality Management
• 7. Elements of TQM• 7.10 Quality Function deployment– Identify customer expectations–Derive measurable parameters– Set standards for these
• 7.11 Monitor variability in parameters• 7.12 Move towards zero variability
J.M.Pant, Faculty
Total Quality Management
• 7. Elements of TQM• 7.13 Institute all pervasive system– ISO 9001:2000– TS 16949– ISO 14000 series, ISO 14001
• 7.14 Supplier Control– Approval of supplier for purchase– Technical support and vendor development– Supplier delight– Qualify suppliers and certify for direct line feed
J.M.Pant, Faculty
Total Quality Management
• 7. Elements of TQM• 7.15 Reduce cost of quality– Internal failure– External failure– Appraisal– Prevention
• 7.16 Developing a quality culture– Change in mind set– Being proactive
J.M.Pant, Faculty
J.M.Pant, Faculty
Financial Data
Factory Data
Defect Reports
Labor Hours
Recode/Redesign
Customer Complaints
Sales
Operation Costs
Material Costs
Overhead Costs
Gen. & Admin. Costs
Cost of uality Measurement of a Company’s Health
50
40
30
20
10
5
%
Percentage of Sales Dollar
Iceberg
J.M.Pant, Faculty
Bugs
RecodeDefects
WarrantyCosts
Quotation Errors
Product Liability
Missed DeadlinesConfiguration Errors
Complaint Handling
Bad Market Reviews
Process SlowdownField Service
Lost Market Share
Software Patches
Returned Goods
InterfaceErrors
Help Desk
Poor Documentation
Training
Cost of uality
J.M.Pant, Faculty
Element Decision Flow
Is Cost related toPrevention of Non-Conformance ?
Is Cost related toEvaluating theConformance ?
Is Cost related toNon-conformance ?
Is Non-Conformancefound prior toShipment ?YES
NO
PREVENTION
APPRAISAL
INTERNAL FAILURE
EXTERNAL FAILURE
Not a Quality Cost
YES
YES
NO
NO
YES
NO
Cost of uality
J.M.Pant, Faculty
Examples of Elements
PREVENTIONDesign Quality Progress ReviewsRequirements DocumentationQA TrainingProcess Engineering
INTERNAL FAILURERecode/Repair LaborDefect Tracking & ReportsRequirement ChangesDown Equipments
APPRAISAL Unit Testing Regression Testing Automated Test Tools User Interface Reviews
EXTERNAL FAILURE Returned Goods Liability Costs Help Desk Lost Sales/Market Share
Cost of uality
J.M.Pant, Faculty
The Strategy is based on the premise that:
For each failure there is a root cause.
Causes are preventable.
Prevention is always cheaper.
Strategy PremiseCost of uality
J.M.Pant, Faculty
Cost ofQuality%
Total Sales
TOTAL SALES
Appraisal
Prevention
InternalFailures
ExternalFailures
C O Q (Rs.Rs.Rs.)
Cost of uality
COST OF QUALITYOPTIMUM QUALITY COST MODEL
J.M.Pant, Faculty
CO
ST
/ GO
OD
UN
IT
0 100
FAILURECOSTS
PREVENTION & APPRAISAL COSTS
TOTALCOST
% GOOD
OPTIMALOPTIMALPOINTPOINT
Target Specification Example
J.M.Pant, Faculty
Freq.
XTarget USLLSL
A study found U.S. consumers preferred Sony TV’s made in Japan to those made in the U.S. Both factories used the same designs & specifications. The difference in quality goals made the difference in consumer preferences.
Japanese factory (Target-oriented)
U.S. factory (Conformance-oriented)
Benchmarking• How do today's business leaders sustain their
competitive edge? • By staying abreast of the latest, best practices and
learning to apply them to every aspect of their organization.
• Whether you work in accounts payable, travel & entertainment, planning & budgeting, inventory management or payroll, learning about, customizing and implementing the best practices is the surest way to enhance the efficiency and effectiveness of your work.
J.M.Pant, Faculty
Benchmarking• Benchmarking concept
J.M.Pant, Faculty
What is ourPerformance level?How do we do it?
What are others’Performance levels?
How did they get there?
BreakthroughPerformance
Creative Adaptation
Benchmarking• Implicit in benchmarking are two key elements:• Measuring performance in numerical terms
(metrics). Requires some sort of units of measure.– The numbers achieved by the best in class
benchmark are the target.– Organization seeking improvement plots its
own performance against the target.– Think of measures of performance in your
manufacturing unit? service unit? For HR processes?
J.M.Pant, Faculty
Benchmarking
• Benchmarking requires that managers understand why their performance differs.– Bench markers must develop a thorough and in-
depth knowledge of both their own processes and the processes of the best-in-class organization.
– An understanding of the differences allows the managers to organize their improvement efforts to meet the goal.
• Benchmarking is about setting goals and about meeting them by improving processes.
J.M.Pant, Faculty
Benchmarking Process
• Decide what to benchmark• Understand current performance• Plan• Study others• Learn from the data• Use the findings
J.M.Pant, Faculty
Benchmarking Process
• Decide what to benchmark• Think about the critical success factors and the
mission.– Which processes are causing the most trouble?– Which processes contribute most to customer
satisfaction and which are not performing up to expectations?
– What are the competitive pressures impacting the organization the most?
– What processes have the most potential for differentiating our organization from the competition?
J.M.Pant, Faculty
STANDING IN THE MARKETPLACE• <Example>Rating for each attribute and weighted rating to be
entered in the cells for company X and the competitors
J.M.Pant, Faculty
Attribute Weight Company X Competitor A Competitor B
Safety
Performance
Quality
Service
Ease of
Use
Reliability
STANDING IN THE MARKETPLACE
• <Example>For a service unit
J.M.Pant, Faculty
Satisfaction with ..
Weightage Company X Competitor A
Competitor B
Greeting with a smile
Processing transactions without error
Easy to read and understand bank statements
Prompt response
STANDING IN THE MARKETPLACE• <Example>automobile manufacturer experiencing a drop in market share
J.M.Pant, Faculty
Attribute Weightage Comparison to competition %
Superior Competitive Inferior
Quality of equipment
Quality and availability of spare parts
Quality of field repair service
Types Of Benchmarking
1. Internal– Comparison within the organization of similar
activities.– Data easy to obtain
2. Competitive– Organization’s survival depends on its performance
relative to competition– Through surveys, reports, customers, suppliers,
buying customers product to take apart and test.
J.M.Pant, Faculty
Types Of Benchmarking
3. Process.– Many processes are common across industry
boundaries, and innovations from other types of organizations can be applied across industries.
– It is relatively easy to find organizations with world class operations through published information, suppliers and consultants.
– For example, processes of payroll and accounts receivable, order processing, design, logistics etc..
J.M.Pant, Faculty
Types Of Benchmarking
3. Process.– <Examples>– Southwest Airlines benchmarked turnaround
time with auto racing pit crews.– Motorola looked to Domino’s Pizza and
Federal Express for the best ways to speed up delivery systems.
J.M.Pant, Faculty
Benchmarking Process• Identifying the best firms to benchmark– There is no existing magic list of best-in-class
companies.– Hierarchy of best practices
J.M.Pant, Faculty
World Class
Any organization, India
Industry-wide, Sector-wide
Competitor
Internally
Benchmarking Process• Studying Others• Information available internally• Public information• Questionnaires• Site visits• Focus groups– Panels of benchmarking partners brought together to
discuss areas of mutual interest.(customers, suppliers, members of professional organizations, people with previous benchmarking activity experience, consultants).
J.M.Pant, Faculty
Benchmarking Process
• Learning from the data• Is there a gap between the organization’s
performance and the performance of the best-in-class organizations?
• What is the gap? How much is it?• Why is there a gap? What does the best-in-class
do differently that is better?• If best-in-class practices were adopted, what
would be the resulting improvement?
J.M.Pant, Faculty
Benchmarking Process
• Using the findings• Two groups must agree on the change– The process owners-people who will run the process– Top management-who will enable the process and
provide the necessary resources
• If best-in-class practices were adopted, what would be the resulting improvement?
• Current practices can’t change the best-in-class results but changing the process can.
J.M.Pant, Faculty
Benchmarking Process• Using the findings• When acceptance is gained, new goals based on the
benchmark findings are set.• The generic steps for the development and execution of
action plans are:– Specify tasks– Sequence tasks– Determine resource needs– Establish task schedule– Assign responsibility for each task– Describe expected results– Specify methods for monitoring results
J.M.Pant, Faculty
Quality Function Deployment
• Dr Mizuno of Tokyo Institute of Technology is credited with initiating the QFD system.
• First application of QFD was at Mitsubishi Heavy Industries in Kobe shipyard in 1972.
• After 4 years implemented by Toyota in production of mini-vans.
• QFD introduced in U.S in 1984 by Dr Clausing of Xerox.
J.M.Pant, Faculty
Quality Function Deployment
• Benefits of QFD:• Improves customer satisfaction– Defines requirements in a set of basic needs and
compares it to all competitive information.– Management can then place resources where they will
be the most beneficial in improving quality.
• Reduces implementation time– Fewer engineering changes needed– Critical to quality issues are identified and monitored
from product inception to production.
J.M.Pant, Faculty
Quality Function Deployment
• Benefits of QFD:• Promotes team work– Horizontal deployment of communication channels– Avoids misinterpretation, opinions and miscues.
• Provides documentation– Database for future design or process improvements is
created.
– Serves as a training tool for new engineers.
J.M.Pant, Faculty
Quality Function Deployment
• QFD is a planning tool used to fulfill customer expectations.
• Focuses on Voice of the customer.• Market research attempts to capture the
voice of customer but they sometimes conflict, and lack clarity.
• This is where voice of the customer gets lost and voice of the organization enters.
J.M.Pant, Faculty
Quality Function Deployment• Voice of Customer
J.M.Pant, Faculty
Solicited
Quantitative
Structured Random
Qualitative
Unsolicited
Focus groups
Trade visitsCustomer visits
Consultants
Sales force; training programs; conventions; trade journals; suppliers; academic; employees
Customer Complaint reports; lawsuits
Customer surveys; market surveys; trade trials;
customer audits; product purchase (buy back) survey
Quality Function Deployment
• Voice of customer:• What does the customer really want?• What are the customer’s expectations?• Are the customer’s expectations used to
drive the design process?• What can the design team do to achieve
customer satisfaction?
J.M.Pant, Faculty
Quality Function Deployment
• Voice of customer:• Once the customer expectations and needs
have been identified and researched, QFD team processes the information.
• The Affinity diagram is ideally suited for most QFD applications.
• QFD team:– Designing a new product– Improving an existing product
J.M.Pant, Faculty
Quality Function Deployment
• QFD team• Team members from Marketing, Design,
Quality, Finance and Production.• For existing product, team may have fewer
members.• Time commitment and inter team
communication is a must.• Regular team meetings.• Team focus on quality management goal.
J.M.Pant, Faculty
Quality Function Deployment
• Affinity Diagram• Gathers large amount of data and organizes data into
groupings based on their natural interrelationships.– Used when thoughts are too widely dispersed or
numerous to organize– New solutions are needed
• Steps– Phrase the objective– Record all responses– Group the responses– Organize groups in an affinity diagram
J.M.Pant, Faculty
Mapping the Voice of Customer• Affinity diagram – Scrambled ideas
J.M.Pant, Faculty
What are the issues involved in missing shipping dates?
Not enough fork trucks
Shipping turnover
Engineering changesInsufficient training
Overcrowded dock
Teams not usedComputer crashes
Error on bill of lading
Inexperienced supervisors
No place for returns
Mapping the Voice of Customer• Affinity diagram – Ordered ideas
J.M.Pant, Faculty
What are the issues involved in missing shipping dates?
Not enough fork trucksShipping turnover
Engineering
changes
Insufficient trainingOvercrowded dock
Teams not used
Computer crashes
Error on bill
of ladingInexperienced supervisors
No place for returns
Facilities People System
Quality Function Deployment
• Prepare an affinity diagram for:• Improvement of the cafetaria• Reducing equipment downtime• Reducing congestion on roads• Making Delhi more safe• Increasing literacy in India• Improving quality of PG management
/engineering/ medical education
J.M.Pant, Faculty
House of Quality
• The primary planning tool used in QFD is the house of quality.
• The house of quality translates the voice of the customer into design requirements that meet specific target values and matches those against how an organization will meet those requirements.
J.M.Pant, Faculty
J.M.Pant, Faculty
Relationship between
requirements and descriptors
Cus
tom
er r
equi
rem
ents
(Voi
ce o
f th
e cu
stom
er)
Prioritized technical descriptors
Technical descriptors(voice of the organization)
Pri
orit
ized
cus
tom
er r
equi
rem
ents
Interrelationship between technical descriptors
Quality Function Deployment
• QFD (Fig A)
J.M.Pant, Faculty
Custom
ers
Customers’needs
Product features
Custom
ersneeds
Processfeatures
Productfeatures
ProcessControlfeatures
Process
features
Quality Function Deployment
• Fig B is a matrix of customer needs (“customer requirements”) and product features (“technical requirements”) for paper being supplied to a commercial printer. Note the additional requirements on importance weighting, correlations between requirements, units of target values (e.g millimeters for width and thickness) and competitive evaluations.
• Fig B is also called as the House of Quality.
J.M.Pant, Faculty
Quality Function Deployment• House of Quality (Fig B)
J.M.Pant, Faculty
Technical requirements
Paper width
Paper thickness
Coating thickness
Tensile strength
Paper color
Competitive evaluation
Importance to customer
X = UsA = Competitor A
B = Competitor B
( 5 is best)
1 2 3 4 5
Customer
requirements
Paper will not tear
3 X A B
Consistent finish
1 A X B
No ink bleed 2 B A X
Prints clearly 3 X A B
RelationshipsStrong=9
Medium = 3 Small=1
Correlations enteredIn squares like:
Strong positive, positive,Negative,
Strong negative
Quality Function Deployment• House of Quality (Fig B)
J.M.Pant, Faculty
Technical requirements
Peper width
Paper thickness
Coating thickness
Tensile strength
Paper color
Competitive evaluation
Importance to customer
X = UsA = Competitor A
B = Competitor B
( 5 is best)
1 2 3 4 5
Customer
requirements
Importance weighting 3 27 36 27 9 X A B
Target Values W:mm T: mm microns Kg per sq cm
Approved panel
A X B
Technical 5 evaluation 4
3
2
1
B
X A B A X
A X A X B
B X B A
B A X
X A B
RelationshipsStrong=9
Medium = 3 Small=1
Correlations enteredIn squares like:
Strong positive, positive,Negative,
Strong negative
Total Quality Management• Change in mind set for variability reduction
J.M.Pant, Faculty
Conventional TQM way
Meet specifications Move to target value
High tech machines needed Even with old machines through better setting, maintenance and employee training
Managers think and plan Managers guide and lead
Workers think, plan and do
MBO Kaizen (continuous improvement)
Profit by driving task completion
Quality is the path of profit