seven principles of tqm final

CONDUCTED BY

Jitendra Kumar Saha(Manager-HR)

WORKSHOP ON TOTAL QUALITY MANAGEMENT

15.07.2010

10.00 hrs.- 10.30 hrs. Introduction -principles of TQM – PDCA Cycle

10.30 hrs.- 12.00 hrs. Problem Solving Tools 12.00 hrs.- 12.30 hrs. Lunch Break 12.30 hrs- 13.00 hrs Game Session 13.00 hrs.- 14.30 hrs. Case Study

14.30 hrs.- 15.00 hrs. Question Answer

PROGRAMME SCHEDULE

INTRODUCTION

Total Quality Management is a comprehensive managerial philosophy and a collection of approaches and tools for its implementation.

The term Total Quality Management conveys the company-wide effort through full involvement of the entire workforce and focus on continuous improvement that companies use to achieve customer satisfaction.

DEFINE TQM

TQM is a process and philosophy of achieving best possible outcomes from the inputs, by using them effectively and efficiently in order to deliver best value for the customer, while achieving long term objectives of the organization

FEATURES

TQM is a customer focused approach Aims at satisfying the customer or delighting them Provides best quality product at lowest possible

price It is company wide strategy Involves everyone in the organization Prevention of defects is the way and the target is

zero defects Total quality management is methodical It makes moves based on information

FEW OTHERS

What is a customer? Anyone who is impacted by the product or process delivered by an

organization. External customer: The end user as well as intermediate processors. Other

external customers may not be purchasers but may have some connection with the product.

Internal customer: Other divisions of the company that receive the processed product.

What is a product?The output of the process carried out by the organization. It may be goods

(e.g. tiles, ), software (e.g. a computer code, a report) or service (e.g. banking, insurance)

Quality perspectives

Everyone defines Quality based on their own perspective of it. Typical responses about the definition of quality would include:

1. Perfection2. Consistency, steadiness, Stability3. Eliminating waste4. Speed of delivery5. Compliance with policies and procedures6.6. Doing it right the first timeDoing it right the first time7. Delighting or pleasing customers8. Total customer satisfaction and service

Principle of TQM

Generally the principle of TQM vary in mode of presentation from author to author; but the general views remains the same. There are 7 basic principle of TQM

Philosophy

Prevention not detection. This moves from chasing problems when they actually occur, to preventing them from happening in the first place. Investment in the prevention of failures in quality will protect the customer and reduce costs of waste, errors, rework and checking.

Managers recognize their (Subordinates/worker) contributions to motivating, leading and guiding the staff in pursuit of quality aims.

Approach – Management Led

Everyone responsible for quality. Everyone has a part to play in the process. All are able to contribute in improving the product and service quality. You cannot inspect quality.

Responsibility

MEASURE – Cost of quality.

Every time something is done wrongly it costs money. There are three elements to the cost of quality –

Prevention, Appraisal Failure. Prevention is the cost of getting it right first time. Appraisal is the cost of checking and inspecting

whether it was done right. Failure is the cost of not doing it right.

Rather than accepting errors the aim should be to get the product and service right first time. This will prevent frustration, rework and waste. Aim for zero defects; why settle for anything less?

Standard- Do right first time

SCOPE – Company wide.

Everyone has the opportunity for quality improvement. In every department quality is needed, not just the quality department, but those who supply products and services.

Theme Continual Improvement

Perfection will never be reached, therefore lasting improvement in quality needs effort to create a climate of continuous improvement.

Continual Improvement Cycle – PDCA

(The Deming Cycle)

Plan +

Define the problem. Decide priorities. Decide what data to collect. Assign tasks to group members. Decide possible time-scale.

Do

Collect data and information. Analyse data and information. Decide possible causes and possible

solutions. Implement experimental solution.

Check

Collect data from experimental solution. Analyze data from experimental solution. Review solutions and adopt if necessary.

Act

Consult with management where necessary.

Implement permanent fix. Continue to monitor process.

Problem solving Tools

• BRAINSTORMING

Brainstorming is an idea-generating technique. It is a purposeful group discussion, where people throw out their ideas as they think of them and progressively build on the collective wisdom in a non-threatening, non-criticizing atmosphere. It encourages individuals to contribute to the group develop trust for other members?

REASON FOR BRAINSTORMING :

To bring out the creative ability of persons / group. To help a group come up with as many ideas as

possible in a very short time and in a participative manner. (Stimulate Team Creativity).

For original and flexible approach to problem solving.

To provide opportunity people for problem solving. To clarify and then document the collective ideas of

people.

HOW TO BRAINSTORM :

Group should state the purpose of brainstorming clearly. It may be a problem or theme for which ideas are sought. Write down on a Flip Chart or black board.

Select or nominate the leader for the brainstorming session. The leader should be open minded and friendly and should motivate the members.

Have each member take a turn in sequence to offer an idea pertaining to the theme.

HOW TO BRAINSTORM

Members should offer only one idea or thought at a time. If somebody cannot think of anything, he or she can say ‘Pass’.

If an original idea does not come to mind, build on to ideas already expressed. It helps in clarifying. Opposite suggestions and associated thoughts are useful.

BRAINSTORM- DO/ DON’T’S

Leader should write down every idea preferably on a Flip Chart (otherwise black-board), so that all members can clearly understand.

Do not criticize or evaluate ideas and thoughts. It is a place where Quantity of ideas of a group is more important than Quality of ideas.

Encourage wild ideas. These can give some other idea.

Compete within fixed time limit of 30–45 minutes. Do not degenerate brainstorming to idle debate.

Group the Problem

Group A: Problem can be solve by us Group B: Problem need joint effort from other

department/ person Group C: Problem need Senior Interference

7 BASIC TOOLS

The cause-and-effect or Ishikawa diagram/ Fish bone

The Flow chart The Control chart The Histogram The Pareto chart The Scatter diagram The Run chart

Seven helpful charts

Flow ChartFlow Chart Cause-and-EffectCause-and-Effect

Run (Trend) ChartRun (Trend) ChartTimeTime

Mea

sure

Mea

sure

Control ChartControl ChartMeasurement TimeMeasurement Time

XX

UCLUCL

LCLLCL

XbarXbar

Scatter DiagramScatter DiagramVariable 1Variable 1

Var

iabl

e 2

Var

iabl

e 2

Pareto ChartPareto Chart

XX

TypeType

HistogramHistogram

MeasurementMeasurement

XX

WHAT IS CAUSE & EFFECT DIAGRAM :

Cause & Effect Diagram is a representation of the systematic relationship between the “event” under investigation and all the possible “causes” influencing it. Cause & Effect Diagram is also a documentation of group thinking process to investigate the root cause (s) of the “event”. It looks like a skeleton of a fish and hence, is also called Fish-Bone Diagram. It is also called an Ishikawa diagram as it was popularised by Prof. Ishikawa.

WHEN TO USE A CAUSE & EFFECT DIAGRAM

To organise ideas of brainstorming into basic categories. To investigate and list down the cause effect relationship of the

problem under investigation. To serve as a record of brainstorming. To analyse the causes to trace the real or root causes. To help stratification for collection of further data to confirm the

relationship. To summarise opinion and arrange causes for effects. To help evolve counter-measures. To identify areas that need checks & modifications.

HOW TO MAKE A CAUSE & EFFECT DIAGRAM :

Call together everyone involved with the problem. Define the problem or effect or event clearly. (e.g.

Inventory is high, more consumer call or power disruption by fuse failure, more ATC loss)

PROBLEM Write down the problem statement in the effect box

on the right side. Draw the spine of the fishbone by drawing an arrow to the box.

Identify the causes in major categories. Commonly used categories are Man, Machine, Method, Material and Measurement. Depending on problem statement, the major categories can be different.

HOW TO MAKE A CAUSE & EFFECT DIAGRAM :

Group the brainstorm ideas under main heading. Investigate the root cause by repeatedly asking

why for each cause to get to sub-causes and lead further to possible root cause (s). Fill gaps forgotten during the brainstorm session.

The leader may ask “When does this happen? Why does it take place?”

If an idea seems to fit under more than one heading, put it in under every heading that it can fit.

Identify likely root cause(s) and circle them. Collect data to verify the most likely root cause.

FISHBONE DIAGRAM

Tools of Continuous Improvement: Cause & Effect Diagram -2

EffectEffect

ManManMachineMachine

MaterialMaterialMethodMethod

EnvironmentEnvironment

....

DATA COLLECTION

DATA IS COLLECTED FOR THE FOLLOWING PURPOSE :

To Know Cause & Effect relationship. To verify the Cause & Effect relationship. To check whether or not process is under control

or to collect information for statistical analysis. For approving or rejecting i.e. for quality

evaluation. To compare performance or to measure

improvement in service.

DATA CAN BE OF TWO TYPES :

Measurement data or continuous data e.g. length, time, weight etc.

Countable or attribute data e.g. number of defectives, number rejected, number passed, number of accidents, number consumer complaints, etc. These data are in whole numbers.

GRAPHS – BAR CHART

WHAT IS BAR CHART : Bar Chart shows a competitive characteristic

(height, cost, temperature) by the length of the bar over the dimension of time or place in the other axis.

Error Category Frequency Percentage of

Total

A 20 44%

B 12 27%

C 7 16%

D 5 11%

E 1 2%

Total 45 100%

WHEN TO USE A BAR CHART :

When a general pattern of figures have to be highlighted rather then true absolute figures.

When relative comparison is more important to grasp than absolute difference.

When in shortest time maximum clarity of communication is to be achieved.

Almost any table can be converted to a graph which can highlight the relevant information .

HOW TO MAKE A BAR CHART :

Draw the vertical and horizontal axis. On the horizontal axis or abscissa (X-axis) show the

items being compared (dimension of time or place, attributes like complaints, material availability etc.) Mark the scale depending on number and type of item. This also determines the width of the bar.

On the vertical axis or ordinate (Y-axis) show the characteristic ( frequency, cost etc ). Mark the scale considering the range of values. Draw the length of the bar proportionate to the value as per scale.

Complete the graph with legends and titles for clear communication.

PARETO CHART

WHAT IS A PARETO CHART : A Pareto chart is a special form of a vertical bar

graph which helps identify the “Vital few” from the “Useful many”. Pareto Chart determines priorities. Italian economist Pareto (1848-1923) invented Pareto Chart for analysing national income. Dr. Juran observed similar logic in Quality Control also. He popularized the Chart and named it in honour of the originator.

WHEN TO USE A PARETO CHART :

To use as a presentation technique. To direct attention and effort to the truly important

problem. To identify the most important root causes contributing

substantially to the problems and find level of contribution of each factor numerically.

To set priorities for counter-measures while dealing with chronic problems.

To compare the extent of improvement prior and subsequent to implementing counter-measures.

HOW TO MAKE A PARETO CHART :

Select the problem, cause or event to be analysed. Determine categories of the above for analysis. Collect the required data of frequency, if it is not

already available (normally with a Check sheet). Rearrange data in descending order i.e. list the most

frequent category first, then the next most frequent, and so on.

Calculate % for each category. Compute cumulative total % for each category starting

with the largest frequency.

Draw the vertical axes. Mark the values on the left axis and the percentage on the right axis. While selecting the scale on the vertical axes, ensure that the total value mark on the axis, matches with the 100% mark on the right axis.

Draw the % for each category as bars in descending order from left to right. Less important item can be grouped under one category of “others” in the last column. Draw the cumulative % line from the top of the first (tallest) bar from left to right. The bars should touch each other.

Complete the chart with legend, scale (% on right and value on the left vertical axis) and title for clear communication.

HOW TO INTERPRET A PARETO CHART

By identifying those categories, which cumulatively add up to 80% of the total, the Vital few can be separated. Proceed towards solving these problems. After solving, collect data on the trivial many. Again work as before till all problems are eliminated. The impact of improvement is noticed by comparing the shift and the size of the bar of the category prior to and subsequent to the counter-measures.

Pareto Chart -Eg

Paint Nonconformities

Number Category Freq. Percent Cumulative %

2 Lt. Spray 582 30.9 30.9 7 Runs 434 23.1 54.0 3 Drips 227 12.1 66.1 1 Blister 212 11.3 77.4 5 Splatter 141 7.5 84.8 6 Bad Paint 126 6.7 91.5 4 Overspray 109 5.8 97.3 8 Other 50 2.7 100.0

Pareto Chart

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