TOTAL QUALITY MANAGEMENT:TQM

Origins, Evolution & key elements

What is Quality?

Quality is “fitness for use”

(Joseph Juran)

Quality is “conformance to requirements”

(Philip B. Crosby)

Quality of a product or services is its ability to satisfy the needs and expectations of the customer

Evolution of Quality Management

Inspection

Quality Control

Quality Assurance

TQM

Salvage, sorting, grading, blending, corrective actions, identify sources of non-conformance

Develop quality manual, process performance data, self-inspection, product testing, basic quality planning, use of basic statistics, paperwork control.

Quality systems development, advanced quality planning, comprehensive quality manuals, use of quality costs, involvement of non-production operations, failure mode and effects analysis, SPC.

Policy deployment, involve supplier & customers, involve all operations, process management, performance measurement, teamwork, employee involvement.

W. E. Deming and the 6 Era’s of Quality

1920’s : New statistical thinking and methods in manufacturing1930/40’s : Use of statistical thinking outside

manufacturing 1950/60’s : Systems of improvement1970/80’s : The fourteen pointsLate 80’s : The “New Climate”1990’s : System of Profound Knowledge

Deming’s view of a production as a system

Consumer Research

Design & redesign

Receipt & test of materials

Suppliers, materials & equipment

Production, assembly, inspection

Distribution Consumers

Test of processes, machines, methods, cost

Improve Quality

Productivity improves

Provide jobs and more jobs

Deming’s Chain Reaction

Cost decreases because of less rework, fewer mistakes, fewer delays, snags, better use of machine time and materials

Stay in business

Capture the market with better quality and lower price

PLAN

CHECK

DOACT

The Deming Cycle or PDCA Cycle

Plan a change to the process. Predict the effect this change will have and plan how the effects will be measured

Implement the change on a small scale and measure the effects

Adopt the change as a permanent modification to the process, or abandon it.

Study the results to learn what effect the change had, if any.

W. Edwards Deming’s 14 Points

Create constancy of purpose towards improvement of product and services.

Adopt the new philosophy. We can no longer live with commonly accepted levels of delays, mistakes, defective workmanship.

Cease dependence on mass inspection. Require, instead, statistical evidence that quality is built in.

End the practice of awarding business on the basis of price tag.

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W. Edwards Deming’s 14 Points

Find problems. It is management’s job to work continually on the system.

Institute modern methods of training on the job.

Institute modern methods of supervision of production workers. The responsibility of foremen must be changed from numbers to quality.

Drive out fear that everyone may work effectively for the company.

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Break down barriers between departments.

Eliminate numerical goals, posters and slogans for the workforce asking for new levels of productivity without providing methods.

Eliminate work standards that prescribe numerical quotas.

Remove barriers that stand between the hourly worker and his right to pride of workmanship.

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W. Edwards Deming’s 14 Points

Institute a vigorous programme of education and retraining.

Create a structure in top management that will push everyday on the above 13 points.

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W. Edwards Deming’s 14 Points

Deming’s System of Profound Knowledge

Appreciation for system

Knowledge about variation

Theory about knowledge

Knowledge of psychology

Philip Crosby’s Four Absolutes

Definition : Conformance to requirements

System of quality is prevention

Performance Standard : Zero Defects

Measurement : Price of non-conformance (PON)

What is Quality?

What system is needed to cause quality?

What performance standard should be used?

What measurement system is required?

Crosby’s Successful Company

Characteristics of the Eternally Successful Organisation

People do things right routinely

Growth is profitable and steady

Customer needs are anticipated

Change is planned and managed

People are proud to work there

Philip B. Crosby’s 14 Points

Make it clear that management is committed to quality.

Form quality improvement teams with representatives from each department.

Determine where current and potential quality problems lie.

Evaluate the cost of quality and explain its use as a management tool.

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Raise the quality awareness and personal concern of all employees.

Take actions to correct problems identified through previous steps.

Establish a committee for the zero defects programme.

Train supervisors to actively carry out their part of the quality improvement programme.

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Philip B. Crosby’s 14 Points

Hold a ‘zero defects day’ to let all employees realise that there has been a change.

Encourage all individuals to establish improvement goals for themselves and their groups.

Encourage employees to communicate to management the obstacles they face in attaining their improvement goals.

Recognise and appreciate those who participate.

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Philip B. Crosby’s 14 Points

Establish quality councils to communicate on a regular basis.

Do it all over again to emphasise that the quality improvement programme never ends.

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Philip B. Crosby’s 14 Points

Joseph M. Juran’s Quality Trilogy

Quality Planning

Establish quality goals

Identify customer needs

Translate needs into our language

Develop a product for these needs

Optimise product features for these needs

Quality Control

Prove the process can produce under operating conditions

Transfer process to operation

Quality Improvement

Seek to optimise the process via tools of diagnosis

Juran’s Trilogy Diagram

Quality Planning Quality control (during operations)

Original zone of quality control

Quality improve -ment

New zone of quality control

Cost of Poor Quality

TIME

20

40

0 0

Lessons learned

1) Identify who are the customers2) Determine the customer’s needs3) Translate the needs into our language4) Develop a product to meet those needs5) Optimise a product so as to meets our needs as well as the customer’s.6) Develop a process which is able to produce the product7) Optimise the process8) Prove the process can make the product under operating conditions

Juran’s Quality Planning Road Map

Joseph M.Juran and the Cost Of Quality

2 types of costs:

Unavoidable Costs: preventing defects (inspection, sampling, sorting, QC)

Avoidable Costs: defects and product failures (scrapped materials, labour for re-work, complaint processing, losses from unhappy customers

“Gold in the Mine”

Joseph M.Juran and the Cost Of Quality

100% defective Point of “Enough quality”

Total Costs

Unavoidable costs

Avoidable costs

Costs

Joseph M. Juran’s 10 Points

Build awareness of the need and opportunity for improvement.

Set goals for improvement.

Organise to reach the goals (establish a quality council, identify problems, select projects, appoint teams, designate facilitators)

Provide training.

Carry out projects to solve problems

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Report progress.

Give recognition.

Communicate results.

Keep score.

Maintain momentum by making annual improvement part of the regular systems and process of the company.

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Joseph M. Juran’s 10 Points

What is TQM?

Constant drive for continuous

improvement and learning.

Concern for employee

involvement and development

Management by Fact

Result FocusPassion to deliver customer value /

excellence

Organisation response ability

Actions not just words

(implementation)Process

Management

Partnership perspective (internal / external)

Learning

LEARNING AND TQM

Process Improvement

Quality Improvement

Customer Satisfaction

Shareholder Satisfaction

Employee Satisfaction

BASIC PRINCIPLES OF TQM

Approach Management Led

Scope Company Wide

Scale Everyone is responsible for Quality

Philosophy Prevention not Detection

Standard Right First Time

Control Cost of Quality

Theme On going Improvement

FOUR KEY PRINCIPLESFOUR KEY PRINCIPLES

•Measure quality so you can affect it

•Focus on a moving customer

•Involve every employee

•Think long term - Act short term

THE CASE FOR QUALITY

1 Success of competitors who take quality seriously

2 Rising expectations of customers

3 Quality differentiates companies from the competition

4 Narrowing of supplier bases by quality conscious companies

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5 Growing evidence that growth in market share comes from sustained quality.

6 Cost advantages

7 High cost of catastrophic failure

8 Inspection poor substitute for right first time

THE CASE FOR QUALITY

SEVEN DEADLY SINS OF TQMSEVEN DEADLY SINS OF TQM

•Flight to nowhereFlight to nowhere

•One size fits allOne size fits all

•Substituting TQM for leadershipSubstituting TQM for leadership

•Inside - Out indicatorsInside - Out indicators

•Mandatory religionMandatory religion

•Quality kept as a separate activityQuality kept as a separate activity

•Teaching to the testTeaching to the test

Booz-Allen & HamiltonBooz-Allen & Hamilton

IS QUALITY A SOUND INVESTMENT?Year Company Stock Growth (Oct 94)1988 Motorola 373.0%1988 Westinghouse (CNFD) - 49.6%1989 Xerox (BPS) 75.9%1990 General Motors 1.6%1990 Federal Express 10.6%1990 IBM (IBM Rochester) - 34.9%1991 Selectron 526.9%1992 AT&T (UCS) 32.2%1992 AT&T (TSBU) 32.2%1992 Texas Instruments (DS&E) 106.8%1993 Zyta 8.4%1994 Eastman Chemical 18.5%

Total Stock Value £23016 (91.8% growth)Standard & Poor 500 Stock value £15911 (32.6% growth)Source: US Dept. of Commerce Study 1995

THE NEW ISO 9000 2000QUALITY STANDARD

REASONS FOR CHANGEREASONS FOR CHANGE

• ISO Technical Committee (TC) argue that:The main reason for the year 2000 revision is to give users the opportunity to add value to activities and to improve their performance continually by focusing on the major processes within the organisation

ISO 9000 2000 CHANGESISO 9000 2000 CHANGES

• CUSTOMER FOCUSED ORGANISATION

• LEADERSHIP

• INVOLVEMENT OF PEOPLE

• PROCESS APPROACH

• SYSTEM APPROACH TO MANAGEMENT

• CONTINUAL IMPROVEMENT

• FACTUAL APPROACH TO DECISION MAKING

• MUTUALLY BENEFICIAL SUPPLIER RELATIONSHIPS

IMPLEMENTATION PRINCIPLESIMPLEMENTATION PRINCIPLES

• MANAGEMENT RESPONSIBILITY

• RESOURCE MANAGEMENT

• PRODUCT REALIZATION

• MEASUREMENT, ANALYSIS AND IMPROVEMENT

More clearly defined requirementsMore clearly defined requirements

• Continual improvement• increased emphasis on the role of top

management• establishment of measurable objectives

at relevant functions and levels• Monitoring of information of customer

satisfaction and/or dissatisfaction as a measurement of the system performance

• Increased attention to resource availability; determination of training effectiveness

• Measurement extending to the system, process, and product

• Analysis of collected data on the performance of the quality management system

Quality is a Journey, not a Destination