1. Total Quality Process (TQP) Operational Excellence Consulting. All rights reserved.

2. Objectives By the end of this program, you would be able to: Explain the Principles of Quality Define the Four Key Activities for managing quality Explain the need for a culture change, starting at the top Demonstrate a personal commitment to total quality Describe how to create quality awareness and educate employees on quality management and improvement Describe how to put the systems for TQP into motion, including measuring quality Identify ways to sustain TQP activities Understand a managers role in quality improvement Operational Excellence Consulting. All rights reserved.3 3. 1 Introduction to TQP Operational Excellence Consulting. All rights reserved. 4. Goals of Productivity High-quality products and services Bigger market share Higher standard of living Operational Excellence Consulting. All rights reserved.7 5. Understanding the Principles of Quality Vision Benefits of quality improvement Five Quality Principles Operational Excellence Consulting. All rights reserved.9 6. Eliminating Waste Eliminating what is not wanted or needed is profitable in itself. ~ Philip Crosby Operational Excellence Consulting. All rights reserved.11 7. Impact of Problem Solving Sporadic Departure from StandardPerformanceOriginal Zone of ControlProblem Solving (Process Improvement)Holding the Gain - ControlNew Zone of ControlTime Operational Excellence Consulting. All rights reserved.13 8. Activity: Benefits of Quality Improvement Time: 5 mins1.List any areas where your company currently has strengths in quality2.List any areas where your company has weaknesses in quality3.What benefits of quality improvement can you see for your company? Operational Excellence Consulting. All rights reserved.15 9. The success of a Quality transformation starts from process changes CultureAttitude The way we think BehaviorThe way we act Work Systems & Processes The changes we make Operational Excellence Consulting. All rights reserved.17 10. Five Quality Principles The five quality principles form the basis for managing and improving quality in a company: 1. All work is a process2. Quality means meeting requirements 3. We focus on processes by measuring 4. Our quality standard is 100% right5. The system for quality is prevention Source: Adapted from the Four Quality Absolutes by Philip Crosby Operational Excellence Consulting. All rights reserved.19 11. Definition of Quality Quality means meeting requirements The word quality means different things to different people For example, quality may mean expensive to one customer. To another, the word may mean durable. To improve quality, we need a simple, clear definition that means the same thing to everyone Operational Excellence Consulting. All rights reserved.21 12. Quality Standard Our quality standard is 100% right Zero defect 6 sigma quality (3.4 ppm) An attitude for continuous improvement Operational Excellence Consulting. All rights reserved.23 13. 2 4 Key Activities Operational Excellence Consulting. All rights reserved. 14. 4 Key Activities 1. Make a commitment 2. Plan for Quality management 3. Put Quality systems in motion Vision, Mission, Shared Values & Five Quality Principles4. Keep Quality goingQuality Management ActPlanCheckDoQuality Improvement Operational Excellence Consulting. All rights reserved.27 15. Make a Commitment1.1 Starting at the Top Establish a Quality vision Participate in the Quality management process Demonstrate a personal commitment Communication by senior leaders Operational Excellence Consulting. All rights reserved.29 16. Plan for Quality Management2. Plan for Quality Management 2.1 Form a Quality Management Team 2.2 Create awareness 2.3 Educate everyone2.4 Prepare for goal setting Operational Excellence Consulting. All rights reserved.31 17. Plan for Quality Management2.2 Create Quality Awareness Make everyone aware of the commitment to Quality Responsibilities: Provide employees with reading and viewing materials supporting Quality efforts Publicize through intranet, newsletters, emails, etc. Participate in awareness events, e.g. poster/slogan competition Communicate with customers and suppliers Operational Excellence Consulting. All rights reserved.33 18. Plan for Quality Management2.3 Quality Education Process Process control Plan-Do-Check-Act (PDCA) Quality improvement tools Process analysis tools Measurement toolsSenior Management Problem solving toolsQuality ManagementAct Check Team-building toolsPlan DoQuality Improvement Front Lines Focus Operational Excellence Consulting. All rights reserved.35 19. Plan for Quality ManagementActivity: Communication Discuss and list ideas for developing and communicating plans for the Quality initiative. Operational Excellence Consulting. All rights reserved.Time: 10 mins37 20. Put Systems in Motion3.1 Set Up Work Process Measurements To identify whether or not work processes are meeting requirements Help departments identify what to measure Input/Output criteria (SIPOC) Introduce a company-wide measurement chart Organization scorecard Review results and publicize success stories Operational Excellence Consulting. All rights reserved.39 21. Put Systems in Motion3.2 Measure Quality Measure defects, e.g. COPQ Explain to key staff how quality is measured Use these measurements to manage the quality improvement process Tips for measurements: Use the Pareto principle No need to be 100% accurate System should provide a good, overall picture Operational Excellence Consulting. All rights reserved.41 22. Put Systems in MotionWhy Measure COQ? Gain senior management commitment - $$$ A scorecard with a common unit of measurement ($, or as % of sales) An effective tool to measure and prioritize improvement efforts Allocate resources for quality improvement Help set and monitor departmental quality improvement targets Determine effectiveness of the quality plan Operational Excellence Consulting. All rights reserved.43 23. Put Systems in MotionWhat COQ Is Not Cost of quality is NOT the price of creating a quality product or service. It is the cost of NOT creating a quality product or service. Every time work is redone, the cost of quality increases. Examples include: The reworking of a manufactured item The retesting of an assembly The rebuilding of a tool The correction of a bank statement The reworking of a service, such as the reprocessing of a loan operation or the replacement of a food order in a restaurant Operational Excellence Consulting. All rights reserved.45 24. Put Systems in MotionCost of Conformance (COC) The costs incurred in ensuring that things are done right the first time Examples: Quality training Quality auditing Inspections and tests Process capability studies Vendor assurance Continuous improvement programs Customer satisfaction surveys Operational Excellence Consulting. All rights reserved.47 25. Put Systems in Motion3.3 Form Quality Action Teams for Solving Problems To systemize corrective and preventive actions Appoint a Quality Coordinator to: Receive quality improvement requests Determine the necessary skills and identify employees for ad hoc quality improvement Assign problems to specific QATs Monitor the status of team activities Follow up with teams to ensure problems are solved Operational Excellence Consulting. All rights reserved.49 26. Keep Quality Going4. Keep Quality Going Ensure activities are ongoing so as to sustain the Quality implementation process Review and recognize Quality Management Team success Operational Excellence Consulting. All rights reserved.51 27. Keep Quality Going4.2 Review Quality Management Team Success To renew and improve the Quality Management Team Recognize QMT success Identify and select new members for the QMT Train and educate new members Recognize outgoing members for their participation Operational Excellence Consulting. All rights reserved.53 28. 3 TQP Toolkit Operational Excellence Consulting. All rights reserved. 29. Hoshin Kanri (Policy Deployment) A planning tool that helps us identify the key focal points and strategies we will use to steer us towards our vision. Focus on vital few goals Enables everyone to see where were going and our plans to get there Build plan and strategies as a team Shared responsibility for getting results Operational Excellence Consulting. All rights reserved.57 30. Eight Steps of Problem Solving 1Select the Theme2Plan the Schedule3Grasp the Present Situation4Establish the Target5Analyze the Cause & Identify Corrective Action6Implement Corrective ActionDO7Evaluate the ResultCHECK8Standardize & Follow-upACT Operational Excellence Consulting. All rights reserved.PLAN59 31. Problem Solving Tools Not the intent of this presentation to go into the details of problem solving tools, as the main focus is on the overall Total Quality Process However, we will highlight two of the most important tools: Pareto Chart Case & Effect Diagram (Note: For details on the PDCA problem solving process and tools, please visit our website for the specific presentation deck.) Operational Excellence Consulting. All rights reserved.61 32. Example: Pareto Chart Pareto Chart Pizza Defects35120%30Occurences25 80% 20 60% 15 40% 10 20%5-Wrong Toppings ColdPizza Late Pizza Wrong Crust Tastes Forgot Breadsticks No Change in Box Bad Driver Had Smashed Wrong Price Driver Rude All otherQuantity29252213107432125%46%64%75%84%90%93%96%97%98%100%% of Total25%21%19%11%8%6%3%3%2%1%0%2Cum %Cumulative Percent100%2%Time Period:January-02 Operational Excellence Consulting. All rights reserved.63 33. Cause & Effect Diagram Causes (Xs)ManpowerMethodEffect (Y)MachinecauseProblem StatementEnvironmentMeasurementMaterial Operational Excellence Consulting. All rights reserved.65 34. 4 Strategies for Success Operational Excellence Consulting. All rights reserved. 35. 3 Cornerstones Problem solving We have covered this earlier, and so we will focus on the next two cornerstones Project Management Change management Operational Excellence Consulting. All rights reserved.69 36. Project Management Key elements: Project charter Project plan Project execution and monitoring Project close out Operational Excellence Consulting. All rights reserved.71 37. Understanding Responses to Change It is key to understand and leverage is the rate and pace at which people adapt to change Enrollment CurveSource: Atlanta Consulting Group Operational Excellence Consulting. All rights reserved.73 38. 10 Steps to Dealing with People Challenges 1. Develop a Team Charter 2. Select appropriate team members 3. Inform everyone who is either involved in the project or impacted by the project 4. Develop team ground rules at the first meeting 5. Make sure everyone understands their role Operational Excellence Consulting. All rights reserved.75 39. Moving Towards a Quality Culture CultureAttitude The way we thinkBehavior Work Processes & SystemsThe way we workThe changes we make through TQP Operational Excellence Consulting. All rights reserved.77 40. Keys To Success As a team be open minded and supportive Understand TQP concepts Effectively use Quality management and improvement and tools Keep it simple Becoming a truly quality-oriented organization is a journey and will not be made without some discomfort Operational Excellence Consulting. All rights reserved.79 41. The Attitude Whether you think you can, or you think you cant, youre right. - Henry Ford Operational Excellence Consulting. All rights reserved.81 42. END OF PRESENTATION For more information about our services, please visitwww.oeconsulting.co m.sg Operational Excellence Consulting. All rights reserved.