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TOTAL QUALITY MANAGEMENT:

TQM

Origins, Evolution & key elements

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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 satisfythe needs and expectations of the customer

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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.

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Demings 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

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Improve Quality

Productivity improves

Provide jobs and

more jobs

Demings Chain Reaction

Cost decreases because

of less rework, fewer

mistakes, fewer delays,

snags, better use of

machine time and

materialsStay in business

Capture the market with

better quality and lower price

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What is TQM?

Constant drive

for continuousimprovement and

learning.

Concern for

employee

involvement anddevelopment

Management

by Fact

Result Focus Passion to delivercustomer value /

excellence

Organisation

responseability

Actions not just

words(implementation)

Process

Management

Partnership

perspective(internal /

external)

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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

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W Edwards Demings 14 PointsCreate 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)

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W Edwards Demings 14 PointsFind problems. It is managements 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)

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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 Demings 14 Points

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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 Demings 14 Points

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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.

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Demings System of Profound Knowledge

Appreciation for

system

Knowledge

about variation

Theory aboutknowledge

Knowledge ofpsychology

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Learning

LEARNING AND TQM

Process Improvement

Quality Improvement

Customer

Satisfaction

Shareholder

Satisfaction

Employee

Satisfaction

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Philip Crosbys Four Absolutes

Definition : Conformance to

requirements

System of quality isprevention

Performance Standard :

Zero Defects

Measurement : Price of non-

conformance (PON)

What is Quality?

What system is neededto cause quality?

What performance

standard should be

used?

What measurement

system is required?

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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

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Joseph M. Jurans Quality Trilogy

Quality Planning

Establish quality goals

Identify customer needs

Translate needs into our

language

Develop a product forthese needs

Optimise product

features for these needs

Quality Control

Prove the process can

produce underoperating conditions

Transfer process to

operation

Quality

Improvement

Seek to optimise theprocess via tools of

diagnosis

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1) Identify who are the customers2) 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

Jurans Quality Planning Road Map

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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

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Joseph M.Juran and the Cost Of Quality

100% defective Point of Enough

quality

Total

CostsUnavoidable

costs

Avoidablecosts

Costs

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FOUR KEY PRINCIPLES

Measure quality so you can affect it

Focus on a moving customer

Involve every employee

Think long term - Act short term

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THE CASE FOR QUALITY

1 Success of competitors who take quality seriously

2 Rising expectations of customers

3 Quality differentiates companies from thecompetition

4 Narrowing of supplier bases by quality conscious

companies

.

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5 Growing evidence that growth in market

share comes from sustained quality.

6 Cost advantages

7 High cost of catastrophic failure

8 Inspection poor substitute for right first time

THE CASE FOR QUALITY

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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

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IS QUALITY A SOUND INVESTMENT?

Year Company Stock Growth (Oct 94)

1988 Motorola 373.0%

1988 Westinghouse (CNFD) - 49.6%1989 Xerox (BPS) 75.9%

1990 General Motors 1.6%

1990 Federal Express 10.6%

1990 IBM (IBM Rochester) - 34.9%

1991 Selectron 526.9%

1992 AT&T (UCS) 32.2%

1992 AT&T (TSBU) 32.2%

1992 Texas Instruments (DS&E) 106.8%

1993 Zyta 8.4%1994 Eastman Chemical 18.5%

Total Stock Value 23016 (91.8% growth)

Standard & Poor 500 Stock value 15911 (32.6% growth)Source: US Dept. of Commerce Study 1995

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Quality is a Journey,

not a Destination

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RecordsControl

Audit

Management

Responsibilities

SystemStructure

Resources PersonnelMaterial

Responsibilities

Management review

Objectives

Policy

Interface with

customer

Elements of the ISO 9000 Standards

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Contents of The DEP

The Role of Quality assurance.

Q/A in project management.

Contract & Procurement Q/A.Design Q/A.

Procurement Q/A.

Construction & Commissioning Q/A.

Typical contents of different type of PQP.

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Project Quality Plan

Definition

The project quality plan is a documented description

of the project management system and must be

approved by the AEM, in part to demonstrate hiscommitment to quality but primarily it is the means by

which technical and administrative authorities are

delegated through out the project.

All projects shall have quality plan.

Project engineer shall develop and update the PQP..

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Relationships between project quality plans

PQP

ADCO

PQPDesigner

PQP

construction

contractor

Suppliersquality plans

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CONTENTS OF TYPICAL PROJECT QUALITY PLAN

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CONTENTS OF TYPICAL PROJECT QUALITY PLAN

1. COVER SHEET + REVISION CONTROL

1.1 Document purpose

1.2 Policy statement

2.INTRODUCTION

2.1 Background

2.2 Project Scope

2.3 Project Objectives & Constraints

2.4 QA Standards (Consider putting in Document purpose)

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CONTENTS OF TYPICAL PROJECT QUALITY PLAN

3. EXECUTION STRATEGY

3.1 Project Management risks.

3.2 Critical Activities.

3.3 Control Strategy.

3.4 Cost & Schedule.

3.5 HSE Plan.

3.6 Commissioning & Hand-over.

CONTENTS OF TYPICAL PROJECT QUALITY PLAN

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CONTENTS OF TYPICAL PROJECT QUALITY PLAN

4.ORGANISATION, RESPONSIBILITES & INTERFACES4.1 Table with names

4.2 External interfaces

4.3 Definition of specific roles and responsibilities.

5. QUALITY REFERENCE SYSTEM

5.1 Controlling Documents

5.2 Applicable Procedures (Check list based)

6. INTEGRATION OF CONTRACTORS & SUPPLIERS

6.1 Define Contractor interfaces.

6.2 Contractor + Supplier Quality System.

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CONTENTS OF TYPICAL PROJECT QUALITY PLAN

7.AUDITS & REVIEWS

This section should include schedule for all audits and reviews

planned during the project execution period

8. QUALITY IMPROVEMENT

8.1 LESSONS LEARNT

8.2 CLOSE-OUT REPORT

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CONTENTS OF TYPICAL PROJECT QUALITY PLAN

PREPARATION & APPROVALS:

PREPARE: Student

APPROVE: Supervisor

Timing

The Student shall develop the PQP immediately after receiving the

Assignment and agree the project.