Chapter 11

TQM & Quality Tools

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Total Quality Management

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

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TQM Approach• Find out what the customer wants

• Design a product or service that will meet (or exceed) what customers want

• Design a set of processes that facilitates doing the job right the first time

• Keep track of results, and use those to guide improvement

• Extend these concepts to suppliers and to the distribution system

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Elements of TQM• Continual improvement• Competitive benchmarking• Employee empowerment• Team approach• Decisions based on facts• Knowledge of tools• Supplier quality• Champion

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Continuous Improvement

• Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs.

• Kaizen: Japanese word for continuous improvement.

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Quality at the Source• The philosophy of making each worker

responsible for the quality of his or her work– places direct responsibility for quality on

the person(s) who directly affect it– removes adversarial relationship that

often exits between QC inspectors and production workers

– motivates workers by giving them control over their and as well as pride in it

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Obstacles toImplementing TQM (1 of 2)

• Lack of– Company-wide definition of quality– Strategic plan for change– Customer focus– Real employee empowerment– Strong motivation– Time to devote to quality initiatives– Leadership

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Obstacles toImplementing TQM (2 of 2)

• Poor interorganizational communication

• View of quality as a “quick fix”

• Emphasis on short-term financial results

• Internal political and “turf” wars

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Criticisms of theTQM Approach

• Blind pursuit of TQM programs• Programs may not be linked to the

strategy in a meaningful way• Quality-related decisions may not

be tied to market performance• Failure to carefully plan a program

can lead to false starts, employee confusion, and meaningless results

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Basic Steps in Problem Solving• Define the problem and establish

an improvement goal• Collect data• Analyze the problem• Generate potential solutions• Choose a solution• Implement the solution• Monitor the solution to see if it

accomplishes the goal

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Process Improvement

• A systematic approach to improving a process

• Overview of the approach– process mapping

– analyze the process

– redesign the process

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Plan

Do

Study

Act

Figure 11-1

The PDSA Cycle

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The Process Improvement Cycle

Implement theImproved process

Select aprocess

Study/document

Seek ways toImprove it

Design anImproved process

Evaluate

Document

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Process Improvement Tools

• There are a number of tools that can be used for problem solving and process improvement

• Tools aid in data collection and interpretation, and provide the basis for decision making

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Seven Basic Quality Tools

• Check sheets• Flowcharts• Scatter diagrams• Histograms• Pareto analysis• Control charts• Cause-and-effect diagrams

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Billing Errors

Wrong Account

Wrong Amount

A/R Errors

Wrong Account

Wrong Amount

Monday

Check Sheet

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Flowchart

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Scatter Diagram

Variable A

Variable B

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Histogram

frequency

A B C D E

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80% of the problems may be attributed to 20% of thecauses.

80% of the problems may be attributed to 20% of thecauses.

Smearedprint

Nu

mb

er o

f d

efec

ts

Offcenter

Missinglabel

Loose Other

Pareto Analysis

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970

980

990

1000

1010

1020

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

UCL

LCL

Figure11-10

Control Chart

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Cause-and-Effect Diagram

Figure11-11

Effect

MaterialsMethods

EquipmentPeople

Environment

Cause

Cause

Cause

Cause

Cause

CauseCause

Cause

CauseCause

Cause

Cause

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Tracking Improvements

UCL

LCL

LCLLCL

UCLUCL

Process not centeredand not stable

Process centeredand stable

Additional improvementsmade to the process

Figure11-16

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Methods for Generating Ideas

• Brainstorming

• Quality circles

• Interviewing

• Benchmarking

• 5W2H

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Quality Circles

• Team approach– List reduction

– Balance sheet

– Paired comparisons

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Benchmarking Process

• Identify a critical process that needs improving

• Identify an organization that excels in this process

• Contact that organization

• Analyze the data

• Improve the critical process