FOUNDATION OF TQM

GROUP 1
Leader: Inoncillo, Christine Joy G. Members: Baclao, Rudy Mark M. Bucton, Hermae Montallana, Henry Jorge D.

Santiago, Ian Joel G.

Historical Background of TQM

INDUSTRIAL REVOLUTION -In 1924 W.A. Shewhart - developed a statistical chart for control of product variables and this chart was considered to be the beginning of statistical quality control. H.F. Dodge and H.D. Romig developed the area of acceptance sampling as a substitute for 100% inspection. -In 1946 American Society for Quality Control has promoted the use of quality control for all types of production and service. -In 1950 W. Edwards Deming who studied statistical quality control from Shewhart, gave a series of lectures on statistical methods of Japanese engineers and on quality responsibility to the CEOs of the largest organizations in Japan. Joseph M. Muran made his first trip to Japan in 1954 and further emphasized managements responsibility to successfully attain quality. -In 1960 First Quality Control Circles were organized for the purpose of quality improvement. -In 1970s and Early 1980s US Managers- who made frequent trips to Japan to learn about the Japanese miracle. Quality Renaissance began occur in US products and services, and by the middle of 1980 the concepts of TQM were being publicized. -In 1980s Automotive Industries began to emphasize Statistical Process Control ( SPC ). Malcolm Baldrige National Quality Award was organized and became the means to measure TQM. Genechi Taguchi introduced his concepts of parameter and tolerance design and brought about a resurgence of design of experiments (DOE) as a value quality improvement. -In 1990s Car Manufacturing Industries the importance of quality continued in this industry in the 1990s. ISO 9000 became the worldwide model for a quality system.

DEFINITION OF TQM
TQM improvement to the traditional way of doing business. It is a proven technique to guarantee survival amidst world- class competition. Art of managing the whole to achieve excellence.

Analyzing the three words: Total Made up of the whole. Quality Degree of excellence a product or service provides. Management Act, art, or manner of handling, controlling, directing etc. THE GOLDEN RULE :

Do unto others as you would have them do unto

you.
BASIC CONCEPTS OF TQM
1. A committed and involved management to provide long term top-to-bottom organizational support. 2. An unwavering focus on the customer, both internally and externally. 3. Effective involvement and utilization of the entire work force. 4. Continuous improvement of the business and production process. 5. Treating suppliers as partners. 6. Establish performance measures for the processes. Table 1.1 Old and New Cultures Quality Element Old Culture Definition Product oriented Priorities Second to service cost Decisions Emphasis Errors Responsibility Problem Solving Procurement Mangers Role Short Term Detection Operations Quality Control Managers Price Plan, assign, control and enforce

New Culture (TQM) Customer oriented First among equals of service and cost Long term Prevention System Everyone Teams Life-cycle cost Delegate, advise, facilitate and mentor

TRANSFORMATION TO TQM
A business organization can not start the transformation to TQM until it is aware that the quality of the product or service must be improved. Awareness comes in when a business organization loses market share or realizes that quality and productivity go hand-in-hand. It also happens if TQM is mandated by the customer or if management realizes that TQM is a better way to operate a business and compete in domestic and foreign markets. Automation and other productivity enhancement might not help a business organization if it is unable to market its product or service because of poor quality. Quality and productivity are not exclusive. Improvements in quality can directly lead to increase productivity and other benefits. Table 1.2 Gain in Productivity with Improved Quality Item Before Improvement 10% Nonconforming Relative total cost for 20 units 1 Conforming units 18 Relative cost for nonconforming unit 0.1 Productivity increase Capability increase Profit increase

After Improvement 5% Nonconforming 1 19 0.05 (100) (1/18) = 5.6% (100) (1/18) = 5.6% (100) (1/18) = 5.6%

MEANING OF QUALITY
When quality is used, we usually think of an excellent product or service that satisfies or exceeds our expectations. These expectations are based on the intended use and the selling price. Quality can be quantified as follows: Q = P/E Where :

Q= Quality P= Performance E= Expectations

If Q is greater than 1.0, then the customer has a good feeling about the product or service. Of course, the determination of P and E will most likely be based on the perception of the organization determining performance and the customer determining expectations.

According to ANSI/ASQC Standard A3-1987, quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy implied or stated needs. Stated Needs determined by the contract and are called constraints. Implied Needs function of the market and must be identified and defined and are called parameters

Table 1.3 reveals nine (9) dimensions of quality with their meanings and expectations in terms of a slide projector, according to Garvin. These dimensions are somewhat independent; therefore, a product can be excellent in one dimension and average or poor in another. Very few, if any, products excel in all nine dimensions. Table 1.3: The Dimensions of Quality Dimensions Performance Features Conformance Reliability Durability Service Response Aesthetics Reputation

Meaning And Example Primary product characteristics, such as the brightness of the picture Secondary characteristics, added features, such as, remote control Meeting specifications or industry standards workmanship Consistency of performance over time, average time for the unit to fail Useful life, includes repair Resolution of problems and complaints, ease of repair Human-to-human interface, such as the courtesy of the dealer Sensory characteristics, such as exterior finish Past performance and other intangibles, such as being ranked first

THE DEMING PHILOSOPHY

1. Create and Publish the Aims and Purposes of the Organization. / Create a constant purpose toward improvement.

Plan for quality in the long term. Resist reacting with short-term solutions. Don't just do the same things better find better things to do.

Predict and prepare for future challenges, and always have the goal of getting better.

2. Learn the New Philosophy. / Adopt the new philosophy.

Embrace quality throughout the organization. Put your customers' needs first, rather than react to competitive pressure and design products and services to meet those needs.

Be prepared for a major change in the way business is done. It's about leading, not simply managing.

Create your quality vision, and implement it.

3. Understand the Purpose of Inspection. / Stop depending on inspections.

Inspections are costly and unreliable and they don't improve quality, they merely find a lack of quality.

Build quality into the process from start to finish. Don't just find what you did wrong eliminate the "wrongs" altogether. Use statistical control methods not physical inspections alone to prove that the process is working.

4. Stop Awarding Business Based on the Price Alone. / Use a single supplier for any one item.

Quality relies on consistency the less variation you have in the input, the less variation you'll have in the output.

Look at suppliers as your partners in quality. Encourage them to spend time improving their own quality they shouldn't compete for your business based on price alone.

Analyze the total cost to you, not just the initial cost of the product. Use quality statistics to ensure that suppliers meet your quality standards.

5. Improve constantly and forever the System..

Continuously improve your systems and processes. Deming promoted the Plan-DoCheck-Act approach to process analysis and improvement.

Emphasize training and education so everyone can do their jobs better.

Use kaizen as a model to reduce waste and to improve productivity, effectiveness, and safety.

6. Institute Training. / Use training on the job.

Train for consistency to help reduce variation. Build a foundation of common knowledge. Allow workers to understand their roles in the "big picture." Encourage staff to learn from one another, and provide a culture and environment for effective teamwork.

7. Teach and Institute Leadership./ Implement leadership.

Expect your supervisors and managers to understand their workers and the processes they use.

Don't simply supervise provide support and resources so that each staff member can do his or her best. Be a coach instead of a policeman.

Figure out what each person actually needs to do his or her best. Emphasize the importance of participative management and transformational leadership.

Find ways to reach full potential, and don't just focus on meeting targets and quotas.

8. Drive out Fear, Create Trust, and Create a Climate for Innovation./ Eliminate fear.

Allow people to perform at their best by ensuring that they're not afraid to express ideas or concerns.

Let everyone know that the goal is to achieve high quality by doing more things right and that you're not interested in blaming people when mistakes happen.

Make workers feel valued, and encourage them to look for better ways to do things. Ensure that your leaders are approachable and that they work with teams to act in the company's best interests.

Use open and honest communication to remove fear from the organization.

9. Optimize the Efforts of Teams, Groups and Staff Areas./ Break down barriers between departments.

Build the "internal customer" concept recognize that each department or function serves other departments that use their output.

Build a shared vision. Use cross-functional teamwork to build understanding and reduce adversarial relationships.

Focus on collaboration and consensus instead of compromise.

10. Eliminate Exhortations for the Work Force./ Get rid of unclear slogans.

Let people know exactly what you want don't make them guess. "Excellence in service" is short and memorable, but what does it mean? How is it achieved? The message is clearer in a slogan like "You can do better if you try."

Don't let words and nice-sounding phrases replace effective leadership. Outline your expectations, and then praise people face-to-face for doing good work.

11. Eliminate Numerical Quotas for Work Force and Eliminate management by objectives.

Look at how the process is carried out, not just numerical targets. Deming said that production targets encourage high output and low quality.

Provide support and resources so that production levels and quality are high and achievable.

Measure the process rather than the people behind the process.

12. Remove barriers that Rob People of Pride of Workmanship./ Remove barriers to pride of workmanship.

Allow everyone to take pride in their work without being rated or compared. Treat workers the same, and don't make them compete with other workers for monetary or other rewards. Over time, the quality system will naturally raise the level of everyone's work to an equally high level.

13. Encourage Education and Self- Improvement for Everyone./ Implement education and self-improvement.

Improve the current skills of workers. Encourage people to learn new skills to prepare for future changes and challenges. Build skills to make your workforce more adaptable to change, and better able to find and achieve improvements.

14. Take Action to Accomplish the Transformation./ Make "transformation" everyone's job.

Improve your overall organization by having each person take a step toward quality. Analyze each small step, and understand how it fits into the larger picture. Use effective change management principles to introduce the new philosophy and ideas in Deming's 14 points.

IMPEDIMENTS OF TQM
Comfortable with their present condition. Satisfied with the amount being performed, profits are realized and the perception that the customers are satisfied. They begin to lose market share. It is also possible that they might unknowingly be practicing TQM. Once a business organization embarks on TQM, there will be a resistance to change. People become accustomed to doing things in a particular way and it becomes the preferred way. People become closed to innovations, and the TQM is viewed as another thing that is deemed to fail. Managers fear diminished authority and responsibility. Also, time spent on daily business hinders TQM implementation. It is hard for individuals to change their way of doing things; it is much more difficult for a business organization to make a cultural change. A considerable amount of training in the six stated concepts is needed to overcome these impediments to TQM. Also, the channels of communication will need to be improved and developed.