Total Quality Management

Introduction to TQM

What are the current concerns of the Top Management?

References
Total Quality Management by Dale H Besterfield and others, third edn, Pearson

Evaluation pattern
Attendance 5 marks Class Test-1- 20 marks Quizzes & Presentations -15 marks

10 Current Concerns of Top Management

Corporate Governance Shareholder interests Technology and Information Globalization Employee retention Ecology and environment Corporate strategy

Sustainable Growth & Profits

Customer retention

Total Quality Management

Why is Quality a concern?

Some Reasons
Demands continuous attention Customer satisfaction Competitive advantage Self correcting Cultural change Involvement of all and hence Total involvement
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Total Quality Management touches all Departments & activities of the Organization

The Road Map of TQM

1.Defining Quality 2. Evolution of Quality Movement The road map suggests the manner in which an organization becomes aware of the importance of adopting Total Quality Management .

3.The Gurus of Quality Management

5. Tools and Techniques

4. Principles and Practices

6.Product or Service Realization

7.Customer

The Road Map of the Study of TQM

1Intro to Quality 2Contribution of the Gurus 1.Shewhart 2.Demming 3. Juran 4.Figenbaum 5.Ishikawa 6.Crossby 7.Taguchi 3Principles and Practices 1. Leadership 2. Customer Satisfaction 3. Employee involvement 4. Supplier Partnerships 5. Costs of Quality 4Tools and Techniques 1. Benchmarking 2. I.T 3. Q M S and ISO 4. SQC 5. Sampling and Reliability 6. FMEA 7. JIT and Lean Mfg. 8. Stat. Proc. Control 9. CMM & PCMM 5Application and Implementation

Product / Service Quality 1. Motorola 2. Toyota 3. Others

TQM- MMS IV Sem

S-1 Introduction to TQM

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Contents Quality Definition

Quality Movements
History of Quality Paradigms

Quality Control & Assurance

Total Quality Management
- Pillars of TQM - Other components of TQM
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Quality- A saying
Quality is never an accident; it is always the result of high intention, sincere effort, intelligent direction and skillful execution; it represents the wise choice of many alternatives. Will A Foster

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Defining and Understanding Quality

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Quality Definition
Quality is the conformance requirements. (Crosby in 1979) Fitness for use.
(Juran 1970)

to

The degree to which a system, component, or process meets specified requirements. (IEEE)
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QUALITY IS THE QUALIFIER!!

Doing It Right First Time And All The Time. This

boosts Customer satisfaction immensely and

increases efficiency of the Business operations. Clearing The Bar i.e. Specification or Standard stipulated. Excellence that is better than a

minimum standard.
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Quality
Quality is not fine-tuning your product at the final stage of manufacturing, before packaging and shipping .

Quality is in-built into the product at every stage from conceiving specification & design stages to prototyping testing and manufacturing stages.
TQM philosophy and guiding principles continuously improve the Organization processes and result in customer satisfaction.
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Defining Quality
Quality is defined as the degree to which a set of inherent characteristics fulfill requirements.----ISO.

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Dimensions of Quality
Performance - Primary Characteristics, such as Clarity Features - Secondary Characteristics, Remote Control Conformance - Meeting Specifications or Standards

Reliability - Consistency of Performance over time - Fail

Durability - Useful life, include Repair. Service - Resolution of problem; Ease of problem Response Human Relations with Customers Aesthetics - Appearance; Sensory Features

Reputation Past Performance; (Company) Image

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The 9 Dimensions of Quality Contd.

Performance Features Conformance _________________________ Reliability Durability Service ________________________
Performance

Cost
Service Features

Response- of Dealer/ Mfgr. to Customer

Aesthetics Reputation - of Mfgr./Dealer
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Evolution
TQM TQC &CWQC TQC SQC Inspection Foreman Craftsman

Years
1900 1920 1940 1960 1980 1990 2000
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Evolution of Quality Means & Focus

1975 1980 1985 1990 1995 2000

Quality Circle Quality of Work life

Productivity

Quality

Total Quality

TQC/TQM

Employee Involvement
Employees Empowerment Self Directed Teams Self Managed Teams

Operation

Customers

Innovations
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TQM
Session 3 The Gurus of Quality TQM tenets overview

The Gurus of Quality Management

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Quality Gurus
Dr. Walter A. Shewhart Dr. Dodge Dr. Romig Dr. W. Edwards Deming Dr. Joseph M. Juran Dr. Philip Crosby Dr. Kaoru Ishikawa Dr. Genichi Taguchi
(Father of Quality, 1920-40s) (Acceptance Sampling, 1920-40s) (Acceptance Sampling, 1920-40s) (14-points, 1945-1980s) (TQM, post WWII 1980s) (Quality is Free, 1980s) (Fishbone Diagram, Post WWII - 1980s) (QFD, Quality Engineering)
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Quality Gurus: Walter Shewhart

In 1924, Walter A. Shewhart of Bell Telephone Labs. Developed a statistical chart for the control of product variables the beginning of SQC (Statistical Quality Control) and SPC (Statistical Process Control) .

Walter Shewhart

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Quality Gurus: Joseph Juran

In 1954,Joseph M. Juran taught Japanese managers their responsibility to achieve quality . In 1960, the first quality control circles were formed. SQC techniques were being applied by Japanese workers.
Joseph M. Juran

1970s US managers were learning from Japan The Quality Implementation Miracles.
In 1980s TQM principles and methods became popular.(also in auto industry) In 1990s, the ISO 9000 model became the world-wide standard for QMS.

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Quality Gurus: A. V. Feigenbaum

Developed concept of Total Quality Control (TQC)

Responsibility for quality must rest with the persons who do the work precursor to new concept quality at the source

Armand V. Feigenbaum

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Quality Gurus: Philip Crossby

Wrote Quality Is Free in 1979. Introduced the following concepts:
Company Should Have The Goal of Zero Defects Cost of Poor Quality is Greatly Underestimated Traditional Trade-off Between Costs of Improving Quality and Costs of Poor Quality is Erroneous
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Philip Crosby

Quality Gurus: Kauru Ishikawa

In 1972 wrote Guide to Quality Control Credited with the concept of Quality Circles
Kauru Ishikawa

Suggested the use of Fishbone Diagrams

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Quality Gurus: Genichi Taguchi

Contends That Constant Adjustment of Processes to Achieve Product Quality is Not Effective
Genichi Taguchi

Instead suggested, Products Should be Designed to be Robust Enough to Handle Process and Field Variation

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Quality Gurus: W. Edwards Deming

After World War II taught Japanese managers How To Improve Productivity and Quality In 1951. Japan established Deming Prize (Highest Honour in Japan) US was slow in recognizing his contributions Introduced Japanese companies the Plan-DoCheck-Act (PDCA) Cycle (developed initially by Shewhart and subsequently modified by Deming) ) Developed 14 Points for managers
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W. Edwards Deming

Class task-1- Knowing the Gurus

Objective: To acquaint each student with the career and contribution of the Gurus of Quality The Task: Each student will gather material regarding the Gurus, his career and his contribution to quality and prepare a report in word document. The assigned Gurus are provided below 1 to 10- Taguchi 11 to 20- Joseph Juran 21 to 30- Phil Crosby 31 to 40- Fiegenbaum 41 to 50- Deming 51 to 60- Ishikawa Besides the assigned Gurus, each student will select a second Guru of his choice whose work will also be similarly commented in the report. Format: The report will carry a title page containing a description of the class task, the name of the Gurus covered, the name and roll number of the student

Quality Movement and Evolution

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Quality Movements
Japanese were badly defeated in World War II. Their industrial and financial bases were in chaos. Japan had no natural resource and limited source of food for their people. The quality movement began in Japan in 1946 with the U.S. Occupation Force's mission to revive and restructure Japan's communications equipment industry. Dr. Deming was invited by the Union of Japanese Scientists and Engineers to Japan in 1947. In 1954, Dr. Joseph Juran of the United States raised the level of quality management from the factory to the total organization in Japan.
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Quality Movements
Results from Japans implementation from American quality experts led to an industrial revolution that eventually left the American industry lagging behind. It was during the late 1980s that American industry began to

finally look to their quality experts for methods to improve

quality. In the late 1980s, an NBC Documentary called If Japan Can, Why

Cant We brought national attention to the needs for quality

improvements for global competition.
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Quality Control - QC
QC is detection of defects and have them corrected so that defect-free products will be produced. QC is limited to products . QC is testing the final product against predefined product quality standards. QC is operational techniques that are used to fulfill requirements for product quality.

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Quality Control- A Saying

Quality control is the process of measuring actual quality, comparing this to some standard, and then acting on the discrepancy Juran

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Quality Assurance - QA
QA is oriented toward preventing defects. QA is more concerned with the processes that produce the final product, and making sure that quality is part of each stage. QA is about maturing the process towards minimum defect. QA about balancing methodology, leadership, and technology. QA about taking into account human factors as well as technological ones.
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About the tenets of Total Quality Management

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Total Quality Management - TQM

Total Made up of the whole(or) Complete.
i.e. whole organization

Quality Degree of Excellence a product or

service provides to the customer in present and future.

Management Act , art, or manner of

handling , controlling, directing, etc.
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TQM a definition
TQM is the art of managing the whole to achieve excellence.

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TQM
Total Quality Management (TQM) is a management strategy aimed at embedding awareness of quality in all organizational processes.
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TQM Philosophy
TQM revolves around customer driven management.

Its major emphasis is on determining customer need or expectation from the product.
Total Quality is the culture of the organization.

It is attitude of people how they perform their assigned work with aims to provide, customers with products and services that satisfy their needs.
The culture change means all members of the organization participate in the improvement of process, products, and services.

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Old vs. TQM Approach

Quality Element
Definition Priorities Decisions Emphasis Errors Responsibility

Previous Approach
Product-oriented 2nd to service and cost Short-term Detection Operations Quality control

TQM Approach
Customer-oriented Equals of service and cost Long-term Prevention System Everyone

Problem Solving
Procurement Managers Role

Managers
Price Plan, assign, control, and enforce

Teams
Life-cycle costs,partnership Delegate, coach, facilitate and mentor
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TQM Philosophy

Do the right things,

right,
the first time, and every time
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Pillars of TQM
1- Customer Focus: Studying customer needs, gathering customer requirements, and measuring and managing customer satisfaction.

Customer satisfaction is seen as the company's highest priority. The company believes that it will only be successful if its customers are satisfied.
2- Process Management: Develop a production process that reduce the product variations. Applying the same process; the same product should be produces with the same level of quality every time. Teams are process-oriented, and interact with their internal customers to deliver the required results. Management's focus is on controlling the overall process, and rewarding teamwork.

47 Total Quality Management

Pillars of TQM
3- Human side of Quality: TQM environment requires a committed and well-trained work force that participates fully in quality improvement activities. On-going education and training of all employees supports the drive for quality. 4- Continuous Improvement: TQM recognizes that product quality is the result of process quality. As a result, there is a focus on continuous improvement of the company's processes. This will lead to an improvement in process quality. In turn this will lead to an improvement in product quality. Measurement and analysis id the tool that has been used for that.

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Pillars of TQM

T. Q. M.

Customer Focus

Process Management

Employee Training & Empowerment

Continuous Improvement
(through measurement and analysis)

Reduce Rework Activities Shorter Development Cycle Increased Customer Satisfaction

(Cost Reduction) (Cost Reduction) (Quality Improvement)

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Customer Satisfaction Organizational Diagram

CUSTOMERS Front-line Staff Functional Department Staff

Sr. Mgrs CEO

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Other Elements of TQM

Leadership

Vision and Mission Statement

Employee Participation

Recognition and Reward

Education and Training

Supplier Quality Management

Performance Evaluation

Product Design

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TEN COMMANDMENTS Elements of TQM

1. Top Management Commitment & Involvement (Leadership) 2. Customer Involvement (Customer Satisfaction) 3. Design Products For Quality (Product Design) 4. Design Processes For Quality (Process Design) 5. Control Processes For Quality (Process Design)

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TEN COMMANDMENTS Elements of TQM 6. Developing Supplier Partnerships (Supplier Partnership)

7. Customer Service, Distribution, Installation, etc. (Customer Satisfaction) 8. Building Teams of Empowered Employees (Employee Involvement)

9. Benchmarking (Performance Evaluation)

10.Continuous Improvement (Kaizen)
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Six Basic Concepts of TQM

1. Management commitment to TQM principles and methods & long-term Quality plans for the Organization 2. Focus on Customers Internal & External 3. Quality at All Levels of the Work Force. 4. Continuous improvement of the business process. 5. Treating Suppliers As Partners 6. Establish Performance Measures For The Processes.
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Top Management Commitment & Involvement

Support MUST be GENUINE or TQM will be seen as just another passing fad FUNDAMENTAL CHANGES must occur in the CULTURE of ORGANIZATION Such fundamental changes are NOT EASY, BUT ARE IMPOSSIBLE without Top Managements Commitment & Involvement
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Benefits of Quality
Higher Internal & External Customer Satisfaction Reliable Products/Services Better Efficiency of Operations More Productivity & Profit Better Morale of Work Force Less Wastage Costs Less Inspection Costs Improved Process More Market Share Spread of Happiness & Prosperity Better Quality of Life For All. Improved Quality Employee Participation Team Work
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Obstacles In Implementing TQM Top Management Commitment Changing Organization Culture

Organization Structure & Departments

Continuous Training & Education

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Obstacles In Implementing TQM

Improper Planning

Internal & External CustomersDissatisfaction

Empowerment & Teamwork

Continuous Improvement
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PROJECT Task -2 Obstacles in TQM implementations

Groups and Tasks Roll Nos---Task No 1 to 101 11 to 202 21 to 303 31 to 404 41 to 505 51 to 606 Task Nos 1. A commercial Bank 2. A Municipal Hospital 3. A Local Tourism company 4. B-school 5. A Cooperative Store 6. A Trading organization

Activity: Students will undertake a study of some of the prevalent practices and beliefs that drive the operations and also create obstacles for TQM implementation in the allotted organizations . Identify the obstacles and provide reasons for considering them as obstacles. The students will make a report of their work class . The report will mention Task No, Task description, Roll No and Name on the cover page of the Report.