TOTAL QUALITY MANAGEMENT:TQM

Origins, Evolution & key elements

The Evolution. . . The ISO comprises standards that specify

requirements for the documentation, implementation and maintenance of a quality system.

21st Century, TQM has developed in many countries into holistic frameworks, aimed to achieve excellent performance particularly in customer and business results.

The Evolution of Quality

Early days of manufacturing : inspection and decision making – accept or reject

Separate inspection department with a “chief inspector”

Evolution of quality control department with “quality control manager”

1920’s the birth of statistical quality control 1924 Modern control chart by Shewhart; later

developed by Deming

The Evolution . . . Shewhart, Deming, Dodge and Romig

introduced the theory of statistical process control (SPC) and it was used until late 1940s.

1940s – Japan’s industrial system was virtually destroyed and had a reputation for cheap imitation products and illiterate workforce.

Japan solved these problems with the help of Juran, Deming and Feigenbaum.

The Evolution . . . 1950s Quality management practices

developed rapidly in Japan and became their management philosophy.

1960s-1970s Japan’s imports into the USA and Europe increased significantly due to its cheaper, higher quality products, compared to the Western counterparts.

The Evolution . . . 1969 First International conference on quality

control, sponsored by Japan, America and Europe.

On Feigenbaum paper, the term “total quality” was used for the first time. This constitutes wider issues such as planning, organization, and management responsibility.

The Evolution . . . Ishikawa introduced new meaning for “total

quality control” which means “company wide quality control”. He described how all employees, from top management to the workers must participate in quality control.

Late 1970s Company wide quality management became common in Japanese companies.

The Evolution . . . Quality revolution in the West was slow

and did not begin until early 1980s. Total quality management (TQM)

became the centre in most cases. 1979 - The British Standard (BS) 5750

for quality systems was published.

The Evolution . . . 1983 - The National Quality Campaign was

launched using BS5750 main theme. The aim was to popularize to the industry the importance of quality for competitiveness and survival in the world market. Since then the International Standardisation Organization (ISO) 9000 became the internationally recognised standard for quality management systems.

TOTAL QUALITY MANAGEMENT (TQM)

What TQM means? TQM is an approach to improving the

competitiveness, effectiveness and flexibility of an organization for the benefit of all stakeholders.

It is a way of planning, organizing and undertaking each activity and of removing all the wasted effort and energy that is routinely spent in organizations.

It ensures the leaders to adopt a strategic overview of quality and focus on prevention not detection of problems.

The core of TQM is the customer-supplier interfaces, both externally and internally, and at each interface lie a number of processes. This core must be surrounded by commitment to quality, communication of the quality message, and recognition of the need to change the culture of the organisation to create total quality. These are the foundations of TQM, and they are supported by the key management functions of people, processes and systems in the organisation.

What is quality? Quality is “Delighting the customer by fully

meeting their needs and expectations”. These may include performance, appearance, availability, delivery, reliability, maintainability, cost effectiveness and price.

Quality starts with market research – to establish the true requirements for the product or service and the true needs of the customers.

Every person in the “quality chain” must be trained to ask the ff. questions:

Who are my customers? What are their true needs and expectations? How do, or can, I find out what these are? How I can measure my ability to meet their needs and

expectations? Do I have their capability to meet their needs and

expectations? (if not, hat must I do to improve this capability?)

Do I continually meet their needs and expectations? How do I monitor changes in their needs and expectations?

Customers (internal and external)

Suppliers (internal and external)Who are my internal suppliers?What are my true needs and expectations?How do I communicate my needs and

expectations to my suppliers?Do my suppliers have the capability to measure

and meet these needs and expectations?How do I inform them of changes in my needs

and expectations?

Being fully aware of customers’ needs and expectations, each person must respect the needs and expectations of their suppliers. The ideal situation is an open partnership style relationship, where both parties share and benefit.

Poor practices Leaders not giving clear direction Not understanding, or ignoring

competitive positioning Each department working only for itself Trying to control people through systems Confusing quality with grade Accepting that a level of defects or errors

is inevitable Firefighting, reactive behavior The “It’s not my problem” attitude

The Essential Components of TQM Commitment Leadership

The Essential Components of TQM All senior managers must demonstrate

their seriousness and commitment to quality, and middle managers must demonstrate their commitment; ensure they communicate the principles, strategies and benefits to the people for whom they have responsibility. Only then the right attitudes spread throughout the organization.

The Essential . . . Sound quality policy, supported by

plans and facilities to implement it. Leaders must take responsibility for

preparing, reviewing and monitoring the policy and lead in regular improvements of it and ensure it is understood at all levels of the organization.

The Essential . . .

Effective leaders starts with the development of a mission statement followed by a strategy which is translated into action plans down through the organization.

Five Requirements for Effective Leadership1. Developing and publishing corporate

beliefs, values and objectives, often as a mission statement.

2. Personal involvement and acting as role models for a culture of total quality.

3. Developing clear and effective strategies and supporting plans for achieving the mission and objectives

Five Requirements . . .

4. Reviewing and improving the management system

5. Communicating, motivating and supporting people and encouraging effective employee participation.

The Building Blocks of TQM

Processes the transformation of a set of inputs, which can include action, methods and operations, into the desired outputs, which satisfy the customers’ needs and expectations.

People who actually do the job or carry out the process, each of which has one or several suppliers and customers. An efficient and effective way to tackle process or quality improvement is through teamwork.

The Building Blocks . . . Management systems involves proper

adoption and documentation of appropriate management systems

Performance Measurement Once the strategic direction for the organization’s quality journey has been set, it needs Performance Measures to monitor and control the journey, and to ensure the desired level of performance is being achieved and sustained.

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

Dimensions of Quality for Goods Operation Reliability & durability Conformance Serviceability Appearance Perceived quality

Quality

Importance of Quality

Company’s reputation

Product liability

International implications

Market GainsReputationVolumePrice

Lower CostsProductivityRework/ScrapWarranty

ImprovedQuality

IncreasedProfits

Market GainsReputationVolumePrice

Lower CostsProductivityRework/ScrapWarranty

ImprovedQuality

IncreasedProfits

Costs & market share

Traditional Quality Process (Mfg.)

InterpretsNeed

SpecifiesNeed

DesignsProduct

DefinesQuality

ProducesProduct

PlansQuality

MonitorsQuality

Customer Marketing Engineering Operations

Quality is customer driven!

Evolution of Quality Management

Inspection

Quality Control

Quality Assurance

TQM

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.

Deming’s view of a production as a system

Consumer Research

Design & redesign

Receipt & test of materials

Suppliers, materials & equipment

Production, assembly, inspection

Distribution Consumers

Test of processes, machines, methods, cost

Improve Quality

Productivity improves

Provide jobs and more jobs

Deming’s Chain Reaction

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

Stay in business

Capture the market with better quality and lower price

Definition:Total Quality Management

Total Quality Management (TQ, QM or TQM) and Six Sigma (6) are sweeping “culture change” efforts to position a company for greater customer satisfaction, profitability and competitiveness.

TQ may be defined as managing the entire organization so that it excels on all dimensions of products and services that are important to the customer.

We often think of features when we think of the quality of a product or service; TQ is about conformance quality, not features.

Total Quality Is… Meeting Our Customer’s Requirements

Doing Things Right the First Time; Freedom from Failure (Defects)

Consistency (Reduction in Variation)

Continuous Improvement

Quality in Everything We Do

What is TQM?

Constant drive for continuous

improvement and learning.

Concern for employee

involvement and development

Management by Fact

Result FocusPassion to deliver customer value /

excellence

Organisation response ability

Actions not just words

(implementation) Process Management

Partnership perspective (internal / external)

BASIC PRINCIPLES OF TQM

Approach Management Led

Scope Company Wide

Scale Everyone is responsible for Quality

Philosophy Prevention not Detection

Standard Right First Time

Control Cost of Quality

Theme On going Improvement

Total Quality Is… Meeting Our Customer’s Requirements

Doing Things Right the First Time; Freedom from Failure (Defects)

Consistency (Reduction in Variation)

Continuous Improvement

Quality in Everything We Do

A Quality Management System Is… A belief in the employee’s ability to solve

problems

A belief that people doing the work are best able to improve it

A belief that everyone is responsible for quality

Elements for Success Management Support Mission Statement Proper Planning Customer and Bottom Line Focus Measurement Empowerment Teamwork/Effective Meetings Continuous Process Improvement Dedicated Resources

Measurement

Mea

sure

men

tM

easuremen

t

Measurement

Empowerment/ Shared Leadership

Process Improvement/

Problem Solving

Team Management

Customer Satisfaction

Business Results

The Continuous Improvement Process

. . .

Modern History of Quality Management Frederick W. Taylor wrote Principles of Scientific Management in 1911.

Walter A. Shewhart used statistics in quality control and inspection, and showed that productivity improves when variation is reduced (1924); wrote Economic Control of Manufactured Product in 1931.

W. Edwards Deming and Joseph M. Juran, students of Shewhart, went to Japan in 1950; began transformation from “shoddy” to “world class” goods.

In 1960, Dr. K. Ishikawa formalized “quality circles” - the use of small groups to eliminate variation and improve processes.

In the late ‘70’s and early ‘80’s: Deming returned from Japan to write Out of the Crisis,

and began his famous 4-day seminars in the United States Phil Crosby wrote Quality is Free NBC ran “If Japan can do it, why can’t we?” Motorola began 6 Sigma

THE QUALITY GURUS

What is a guru? By definition, a guru is a good person,

a wise person and a teacher. A quality guru should be all of these, and must have a concept and approach to quality within business that has made a major and lasting impact.

W. Edwards Deming’s 14 Points

Create constancy of purpose towards improvement of product and services.

Adopt the new philosophy. We can no longer live with commonly accepted levels of delays, mistakes, defective workmanship.

Cease dependence on mass inspection. Require, instead, statistical evidence that quality is built in.

End the practice of awarding business on the basis of price tag.

1)

2)

3)

4)

W. Edwards Deming’s 14 Points

Find problems. It is management’s job to work continually on the system.

Institute modern methods of training on the job.

Institute modern methods of supervision of production workers. The responsibility of foremen must be changed from numbers to quality.

Drive out fear that everyone may work effectively for the company.

5)

6)7)

8)

Break down barriers between departments.

Eliminate numerical goals, posters and slogans for the workforce asking for new levels of productivity without providing methods.

Eliminate work standards that prescribe numerical quotas.

Remove barriers that stand between the hourly worker and his right to pride of workmanship.

9)10)

11)

12)

W. Edwards Deming’s 14 Points

Institute a vigorous programme of education and retraining.

Create a structure in top management that will push everyday on the above 13 points.

13)

14)

W. Edwards Deming’s 14 Points

PLAN

CHECK

DOACT

The Deming Cycle or PDCA Cycle

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

Implement the change on a small scale and measure the effects

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

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

Deming’s System of Profound Knowledge

Appreciation for system

Knowledge about variation

Theory about knowledge

Knowledge of psychology

Learning

LEARNING AND TQM

Process Improvement

Quality Improvement

Customer Satisfaction

Shareholder Satisfaction

Employee Satisfaction

Philip Crosby’s Four Absolutes

Definition : Conformance to requirements

System of quality is prevention

Performance Standard : Zero Defects

Measurement : Price of non-conformance (PON)

What is Quality?

What system is needed to cause quality?

What performance standard should be used?What measurement system is required?

Crosby’s 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

Dr Joseph M Juran

The Quality Trilogy

The process achieves control at one level of quality performance, then plans are made to improve the performance on a project by project basis, using tools and techniques such as Pareto analysis.

Joseph M. Juran’s Quality Trilogy

Quality PlanningEstablish quality goals

Identify customer needs

Translate needs into our language

Develop a product for these needs

Optimise product features for these needs

Quality ControlProve the process can produce under operating conditions

Transfer process to operation

Quality ImprovementSeek to optimise the process via tools of diagnosis

Juran . . . Juran believed quality is associated with

customer satisfaction and dissatisfaction with the product, and emphasised the necessity for ongoing quality improvement through a succession of small improvement projects carried out throughout the organisation.

1) Identify who are the customers2) Determine the customer’s needs3) Translate the needs into our language4) Develop a product to meet those needs5) Optimise a product so as to meets our needs as well as the customer’s.6) Develop a process which is able to produce the product7) Optimise the process8) Prove the process can make the product under operating conditions

Juran’s Quality Planning Road Map

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”

Armand V Feigenbaum

Feigenbaum is the originator of “total quality control”. He defined total quality control as:

“An effective system for integrating quality development, quality maintenance and quality

improvement efforts of the various groups within an organisation, so as to enable production and

service at the most economical levels that allow full customer satisfaction”.

Feigenbaum . . .3 Steps to Quality

Quality leadership Modern quality technology Organisational commitment

Dr Kaoru Ishikawa

Seven Basic Tools of Quality• which are the big problems?

• what causes the problems?

• how is the data made up?

• how often it occurs or is done?

• what do overall variations look like?

• what are the relationships between factors?

• which variations to control and how?

• Pareto analysis • Cause and effect diagrams• Stratification • Check sheets • Histograms • Scatter charts• Process control charts

Ishikawa. . .Fishbone or Cause and Effect Diagram

The diagram systematically represents and analyses the real causes behind a problem or effect. It organises the major and minor contributing causes leading to one effect (or problem), defines the problem, identifies possible and probable causes by narrowing down the possible ones.

Dr Genichi Taguchi “Taguchi

methodology” is fundamentally a prototyping method that enables the designer to identify the optimal settings to produce a robust product that can survive manufacturing time after time, piece afterpiece, and provide what the customer wants.

Shigeo Shingo

Just-in-Time manufacturing Single minute exchange of die

(SMED) system Poka-Yoke (mistake proofing)

system

Tom Peters Discarding the word “Management” for

“Leadership” “Managing by walking about” (MBWA),

enabling the leader to keep in touch with customers, innovation and people, the three main areas in the pursuit of excellence.

Tom Peters . . .

Tom Peters . . .

He believes that, as the effective leader walks, at least 3 major activities are happening:

Listening Suggests caring

Teaching Values are transmitted

Facilitating Able to give on-the-spot help

McKinsey 7-S ModelPlacing Shared Values in the middle of the model emphasizes that these values are central to the development of all the other critical elements.

SEVEN DEADLY SINS OF TQM

• Flight to nowhere• One size fits all

• Substituting TQM for leadership• Inside - Out indicators

• Mandatory religion• Quality kept as a separate activity

• Teaching to the test

Quality is a Journey, not a Destination