TOTAL QUALITY MANAGEMENT Module-01 Introduction to TQM

By,
GROUP-4

Learning Objectives:
To know about the Concepts of quality & total quality. To know about the costs of quality. To know about the Statistical Quality Control. To understand the concepts of quality assurance. To know about total quality control & management. To study the benefits of TQM.

What does Quality stands for?

Q- Quest for Excellence. U- Understanding Customers needs. A- Action to achieve customers appreciation. L- Leadership: Determination to be a leader. I- Involving all people. T- Team spirit to work for a common goal. Y- Yardstick to measure the progress.

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

The Evolution of Quality

Q Concept 1: Fitness to Standard Q Concept 2: Fitness to Use Q Concept 3: Fitness to Cost Q Concept 4: Fitness to Latent Requirements

Future of Fitness or Quality

Q Concept 1: Fitness to Standard Q Concept 2: Fitness to Use Q Concept 3: Fitness to Cost Q Concept 4: Fitness to Latent Requirements Q Concept 5: Fitness to Corporate Governance Q Concept 6: Fitness to Societal or Global Environment

Evolution of Quality Concepts and Methods

1950 1960 Fitness to standard
standardization statistical process control inspection market research cross-functional involement

QC circle 7 QC steps, 7 QC tools = Improvement methods

Fitness to use

1970
1980 1990 2000

Fitness of cost

QFD 7 management tool

Fitness to latent requirement Fitness of corporate culture Fitness for societal and global environment Customer Focus

Company Focus

Philip Crosbys Four Absolutes

What is Quality? What system is needed to cause quality? What performance standard should be used? What measurement system is required? Definition : Conformance to requirements System of quality is prevention Performance Standard : Zero Defects

Measurement : Price of nonconformance (PON)

Crosbys 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

What is quality ?
TQM Total Quality Management
QA Quality assurance QC
Inspection QC

TQM: Total Quality Management QA: Quality Assurance

TQM
QA

QC: Quality Control Inspection

What is you measure is what you manage.

There is a very little agreement on what constitutes quality. Masaaki Imai.

Evolution of Quality Management

Inspection Quality Control
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.

Quality Assurance
TQM

Four Revolutions of Management Thinking in TQM

Focus on customers

TQM activities
Continuous improvement Total participation

Societal networking

W. E. Deming and the 6 Eras of Quality

1920s : New statistical thinking and methods in manufacturing 1930/40s : Use of statistical thinking outside manufacturing 1950/60s : Systems of improvement 1970/80s : The fourteen points Late 80s : The New Climate 1990s : System of Profound Knowledge

Demings Chain Reaction

Improve Quality

Provide jobs and more jobs Stay in business

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

Productivity improves
Capture the market with better quality and lower price

W. Edwards Demings 14 Points 1) Create constancy of purpose towards improvement

of product and services.

2) Adopt the new philosophy. We can no longer live

with commonly accepted levels of delays, mistakes, defective workmanship.

3) Cease dependence on mass inspection. Require,

instead, statistical evidence that quality is built in.

4) End the practice of awarding business on the basis of

price tag.

W. Edwards Demings 14 Points

5) Find problems. It is managements job to work
continually on the system.

6) Institute modern methods of training on the job.

7) Institute modern methods of supervision of

production workers. The responsibility of foremen must be changed from numbers to quality.

8) Drive out fear that everyone may work effectively for

the company.

W. Edwards Demings 14 Points

9) Break down barriers between departments. 10) Eliminate numerical goals, posters and slogans for
the workforce asking for new levels of productivity without providing methods.

11) Eliminate work standards that prescribe numerical

quotas.

12) Remove barriers that stand between the hourly

worker and his right to pride of workmanship.

W. Edwards Demings 14 Points

13) Institute a vigorous programme of education and
retraining.

14) Create a structure in top management that will push

everyday on the above 13 points.

The Deming Cycle or PDCA Cycle

PLAN

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

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

DO
Implement the change on a small scale and measure the effects

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

TQM
Total = Quality involves everyone and all activities in the company. Quality = Conformance to Requirements (Meeting Customer Requirements). Management = Quality can and must be managed. TQM = A process for managing quality; it must be a continuous way of life; a philosophy of perpetual improvement in everything we do.

What is TQM?
Constant drive for continuous improvement and learning.

Management by Fact

Concern for employee involvement and development

Result Focus

Passion to deliver customer value / excellence

Organisation response ability

Partnership perspective (internal / external)

Actions not just words (implementation)

Process Management

Contrast of the characteristics of traditional management with that of a Total Quality Management organization.

Traditional Management
Supplier Customer

TQM Management
Supplier Customer Supplier Customer Supplier Customer

S ER OM ST CU

PP L

IER

CEO

SU

Supplier Customer

Supplier Customer

Manager

PP LI E RS

Supplier Customer

Supervisor

Supervisor

SU

Worker

Worker

Worker

Worker

Supplier Customer

LOY A

LC

UST O

ME RS

ia Rel

O ST CU R ME S

p Sup ble lier

BASIC PRINCIPLES OF TQM

Approach Scope Scale Philosophy Standard Control Theme Management Led Company Wide Everyone is responsible for Quality Prevention not Detection Right First Time Cost of Quality On going Improvement

Joseph M. Jurans Quality Trilogy

Quality Planning
Establish quality goals
Identify customer needs Translate needs into our language Develop a product for these needs

Quality Control

Quality Prove the process can Improvement

produce under operating conditions Transfer process to operation Seek to optimise the process via tools of diagnosis

Optimise product features for these needs

Jurans Quality Planning Road Map

1) Identify who are the customers 2) Determine the customers needs 3) Translate the needs into our language 4) Develop a product to meet those needs 5) Optimise a product so as to meets our needs as well as the customers. 6) Develop a process which is able to produce the product 7) Optimise the process 8) Prove the process can make the product under operating conditions

FOUR 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
.

THE CASE FOR QUALITY

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

6 Cost advantages
7 Inspection poor substitute for right first time

Concept of Quality:
Perfection Consistency Eliminating Waste Speed of delivery Compliance with policies & procedures. Providing a good, usable product. Doing it right the first time. Delighting or pleasing the customers. Total customer service & satisfaction.

Quality is a Journey, not a Destination

Costs of Quality
Quality costs are defined as those costs associated with the nonachievement of product or service quality as defined by the requirements established by the organization and its contracts with customers and society .

 Costs associated with the defective product include cost of making, finding, repairing and avoiding defects.

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

Costs

Total Costs

Unavoidable costs

Avoidable costs 100% defective Point of Enough quality

Cost of quality categorizes in to 4 costs

PREVENTION COST

EXTERNAL FAILURE COST

APPRAISAL COST

INTERNAL FAILURE COST

PREVENTION COST

The costs of all activities specifically designed to prevent poor quality in products or services Prevention is achieved by examining the total of such experience and developing specific activities for incorporation into the basic management system that will make it difficult or impossible for the same errors or failures to occur again.

Examples are the costs of: New product review Quality planning Supplier capability surveys Process capability evaluations Quality improvement team meetings Quality improvement projects Quality education and training

APPRAISAL COST

The costs associated with measuring, evaluating or auditing products or services to assure conformance to quality standards and performance requirements This category has the responsibility for evaluating a product or service at sequential stages, from design to first delivery and throughout the production process, to determine its acceptability for continuation in the production or life cycle.
The costs include : Incoming and source inspection/test of purchased material In-process and final inspection/test Product, process or service audits Calibration of measuring and test equipment Associated supplies and materials

INTERNAL FAILURE COST

Whenever quality appraisals are performed, the possibility exists for discovery of a failure to meet requirements The costs includes: Scrap Rework Re-inspection Re-testing Material review Downgrading This cost is again divided into two types: Yield loss are those which are incurred due to defective item Rework cost are incurred due to rerouting to correct the defects.

EXTERNAL FAILURE COST

This category includes all costs incurred due to actual or suspected nonconforming product or service after delivery to the customer These costs consist primarily of costs associated with the product or service not meeting customer or user requirement.

The costs include: Processing customer complaints Customer returns Warranty claims Product recalls

Total quality control and management

Total Quality Control:

When the quality problem in an organization is severe and pervasive enough, major quality improvement are necessary from shop floors to board rooms. It has an organization wide view of product quality It enables the organization to achieve position to compete with their competitors. To offer superior quality products to the consumers. Such efforts are often referred to as total quality control(TQC).

TOTAL QUALITY MANAGEMENT:

MEANING:

Intense focus on the customer- both internally and externally

Concern for continuous improvement Accurate measurement of every critical performance variable in the companys operation

DEFINITION:

TQM is a philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction

BASIC CONCEPT OF TQM:

A committed and involved management to provide long term top to bottom organizational support. An unwavering focus on the customer, both internally and externally Effective involvement and utilization of the entire workforce Treating suppliers as partners Continuous improvement of the business and production process

SEVEN UNDER LYING PRINCIPLES OF TQM:

Strive for quality in all things The customer is the criterion of quality Improve the process or system by which product are produced Quality improvement is continuous, never ending activity Worker involvement is essential Ground decision and actions is knowledge Encourage team work and cooperation

NECESSITY FOR TQM:

TQM adds value to the services offered to the customers

All personnel are involved, which improves motivation and commitment

TQM provides assurance that performance and processes are well understood TQM is economic in the long term to both the company and its customers

LEARNING AND TQM

Learning Process Improvement Quality Improvement

Customer Satisfaction

Shareholder Satisfaction

Employee Satisfaction

Beyond TQM
Increase effectiveness

Stage 4: Quality is key to customer value management (Market leader)

Stage 3: Market-perceived quality Customer value learning and innovative organization. and value VS Be customer/market-driven competitors (Market focus)

Get close to market Stage 2: Use customer value Customer satisfaction analysis Be market-driven (External focus)

Stage 1: customer Conformance quality Understand needs & expectations (Internal operation)
Be customer-driven Conformance to requirement Do it right at the first time Reduce reject & rework

Get close to

Customer value management

TQM

STATISTICAL QUALITY CONTROL

This is the application of statistical techniques to accept or reject products already produced or to control the process. Therefore, the product quality while the part is being made. (i) Control process, (ii) Acceptance sampling.

 Process control It is used for controlling quality during production in mass production industries which produce standard products. It is based on the probability theory. The process control manifests through control charts.
Acceptance Sampling It is based on the premise, that a sample represents the whole lot from which the former is drawn. In this method samples are taken out & are carefully inspected to detect defects.

Advantages of SQC
It helps prevent defects from being made. Assignable causes signifying deviations in quality are detected & rectified. Costly rework, rejection & scrap are avoided. It also helps avoidance of the risk of accepting a bad lot. Emphasizing on inspection of only samples, SQC avoids inspection of the entire lot. It ensures the maintenance of high standards of quality & enables the users to build up their goodwill. Supply an audit of quality regarding the producers products. A universally understood measurement is supplied.

Sampling It is the process of selecting & measuring (or inspecting) representative units of output, termed sample units. A set of sample units is termed sample. The sample units are drawn from the (universe or population) at random. A random sample is one in which each unit in the lot has an equal chance of being included in the sample & the sample is likely to be representative of the lot.

Central limit theorem. This is stated as sampling distribution can be assumed to be normally distributed even through the population distributions are not normal.

5 Views of Quality
Product Based ViewAmount of Non-Priced Attributes contained in each unit of the priced attributes. User Based ViewCapacity to satisfy wants or fitness for use

 Transcendental view: A condition of excellence implying fine quality as distinct from poor quality. Quality is achieving or reaching the highest standard as against being satisfied with the sloppy or fraudulent. Manufacturing Based view: Conformance to requirements. Value-based view: the degree of excellence at an acceptable price and the control of variability at an acceptable cost.

Customer -Driven Definitions:

Perceived Quality: An assessment of Quality based on the reputation of the firm. Customer Driven Quality: Quality is meeting or * exceeding customer expectations. * Delighted

Difference. B/w little q and BIG Q.

Little q (Old quality) a) About product b) Technical c) For inspectors d) Led by experts e) High grade f) About control g) Symbol of product h) Focus on quality.

BIG Q (New quality) a) About organization b) Strategic c) For everyone d) Led by management. e) Appropriate grade f) About improvement. g) Symbol of product h) Process and customer focus

QUALITY ASSURANCE
Definition:

ISO 8402-1986 defines QA as related to a product or service as: All those planned or systematic actions necessary to provide adequate confidence that a product or service will satisfy given requirement for quality.

Quality Assurance
Quality system deployment Advanced quality planning Comprehensive quality manuals Use of quality cost Involvement of non-production operation Failure Mode and Effect Analysis Statistical process control

Customer Quality Assurance

Customer Feedback System

Strategic Plan
Strategic Market Analysis

Business Plan

Product design & Planning

Competitive analysis
Us Competitor

Time frame
Current

Product Price Delivery Quality Dissatisfy

Ongoing

AP CD

Process Owner

Three forms of Organizational wide QA are:

Quality Audit, Quality Surveys and Product Audit

QUALITY AUDITING Quality Auditing is the process of examining the effectiveness of management control programs, the purpose of which is to prevent problems. Quality audits are undertaken to identify problems. Quality audit which forms an important part of quality management system, is an independent review conducted to compare the given aspects of quality performance with a standard for that performance. It is an action or activity of gathering information for the improvement or corrective action. Audit may be internal and external is used or carried out to verify that the individual elements within quality system are effective in achieving the quality objectives

Types of quality audit:

Suitability quality audit Conformity quality audit System audit/ corporate audit Process Audit Product Audit

Approaches for conducting quality audit

Location oriented quality audit

Function oriented quality audit

Benefits of the QA
A quality audit is useful only when remedial actions in deficient areas exposed by the quality audit, are undertaken by company management. It identifies the areas that do not conform to the prescribed standards and needs attention.
Some of the tools like cause and effect diagram, flow charts, pareto charts etc. help in identifying the problems and propose the solutions to the problems.

Quality Surveys
In quality audit, the word audit implies the existence of established criteria against which plans and their execution can be checked. Whereas the word survey implies the inclusions of the matters not covered by agreed criteria i.e. going further to discover opportunities and unexpected threats.

Such surveys can be done in several ways:

Using an overall framework which includes an assessment of both quality results and the quality system. Example Company wide assessment of quality

Assessing the quality system using published criteria which emphasizes quality results.
Assessing the quality system using published criteria which emphasizes defined elements of the quality system.

 Assessing the quality system using criteria developed within a company for use in evaluating its own operations.

Assessing the quality system using criteria developed within a company for use in evaluating its suppliers. Assessing the quality system for specific assessment purpose.

Product Audit
Is an assessment of a final product or service on its ability to meet or exceed customer expectations. This audit involves conducting periodic tests on the product or obtaining information from customers on a particular service.

The objective of a product audit is to determine the effectiveness of the management control system.

The Benefits of Total Quality Management (TQM)

Introduction. TQM as a slogan has been around since 1985. TQM provides a management system, using various combinations of tools that have been in existence for much longer. Each tool has its own use, with benefits that follow. TQM leads to a synergy of benefits. Through the application of TQM, senior management will empower all levels of management, including self management at worker level, to manage quality systems.

Elements of the ISO 9000 Standards

Objectives Policy
Management Responsibilities

Responsibilities Management review

Interface with customer

Records Control Audit

System Structure

Resources

Personnel Material

Benefits of TQM

A focused, systematic and structured approach to enhancing customer's satisfaction Process improvement methods that reduce or eliminate problems i.e. non conformance costs Tools and techniques for improvement - quality operating system Delivering what the customer wants in terms of service, product and the whole experience Intrinsic motivation and improved attitudes throughout the workforce

Workforce is proactive - prevention orientated Enhanced communication Reduction in waste and rework Increase in process ownership- employee involvement and empowerment Everyone from top to bottom educated Improved customer/supplier relationships (internally & externally) Market competitiveness Quality based management system for ISO 9001:2000 certification