total quality management

J.M.Pant, Faculty

Total Quality Management

Faculty: J.M.PantManagement Consultant, Trainer and Visiting Professor

For any query, contact Mob: 9811030273;

e-mail: [email protected]; [email protected]

J.M.Pant, Faculty

Total Quality ManagementTotal Quality Management

1. Main concerns of Manufacturers and Customers Manufacturer Customer Quality Quality Cost Price Productivity

Availability Concerns of manufacturer and customer are

generally not the same. Customer usually has no concern for company productivity and cost. Quality is the only common concern

J.M.Pant, Faculty


2. What is Total Quality Management (TQM) The elements of TQM as the name suggests are :

TotalQuality

Management Total implies -

Complete - 100%All areas and functionsAll activitiesAll employees - everyoneAll time - always

J.M.Pant, Faculty


3. Quality target is 100%, not even 99.9% because even 99.9% might mean many dissatisfied customers every year, defective components entering assembly, accidents etc.

Quality definitionOld view : Quality relates to products manufactured exactly to specifications.

New view : Total Quality relates to products that totally satisfy our customer needs and expectations in every respect on a continuous basis. Quality then is to satisfy customer needs....it is in fact to delight customers.

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4. Who is our customerThe next person(individual or functional group) in the workplace; the receiver of output and the next to act on it. A customer may be either external or internal.

Example : Next in process customer Marketing Design

Design ManufacturingManufacturing SalesMachine Shop AssemblyAssembly TestingTesting Despatch

Sales Product user

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5. Management implies :

Quality does not happen on its own. It requires to be planned and managed. It is a management function, though it involves everyone. Therefore it needs a systematic approach.

TQM = Sum of TOTAL + QUALITY +

MANAGEMENT

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6. TOTAL QUALITY MANAGEMENT is a thought revolution in management where the entire business is operated with customer orientation in all activities all the time by every one in the organization.

TQM is an integrated system and methodology throughout the organization that help to design, produce and service quality products or services which are most economical for their value, most useful and always satisfactory to the customer.

J.M.Pant, Faculty

Total Quality ManagementTotal Quality Management 7. Elements of TQM 7.1 Top management commitment

– Management responsibility– Support all TQM activities– Appointment of management representative– Customer feedback and complaints– Quality reviews– Shareholder delight

7.2 Delight the customer– Customer satisfaction, customer delight– Internal customers– Customer focus, customer orientation

J.M.Pant, Faculty

Total Quality ManagementTotal Quality Management7. Elements of TQM7.3 People based management

– Total Employee Involvement– Employee delight– Team work– People make quality– Education and Training– Effective communication– Internal audits– Review of non conformities

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7. Elements of TQM7.4 Management by fact

– Process orientation– Measurement, Observation, Experimentation

7.5 Continuous improvement– Continuous improvement cycle (PDCA)– Kaizen– 5S– Prevention of repetitive occurrence

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PDCA CyclePDCA Cycle

1. PlanIdentify problem and develop plan for improvement.

2. DoImplement plan on a test basis.

3. Study/CheckAssess plan; is it working?

4. ActInstitutionalize improvement; continue cycle.

What to do?How to do?

Do as plannedThings as per plan?

How to improve next time?

J.M.Pant, Faculty

Problem Solving CycleProblem Solving Cycle PDCA for problem solving

Plan

Do

Check

Action

What

Why

How

Definition of problem

Analysis of Problem

IdentificationOf causes

Planning Countermeasures

Implementation

ConfirmationOf result

Standardization

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7. Elements of TQM 7.6 Appropriate technology

– JIT– Automation– Fool proofing– TPM

7.7 Statistical process control 7.8 Problem solving tools/techniques including

Seven QC tools 7.9 Benchmarking

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7. Elements of TQM7.10 Quality Function deployment

– Identify customer expectations– Derive measurable parameters– Set standards for these

7.11 Monitor variability in parameters7.12 Move towards zero variability

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7. Elements of TQM 7.13 Institute all pervasive system

– ISO 9001:2000– TS 16949– ISO 14000 series, ISO 14001

7.14 Supplier Control– Approval of supplier for purchase– Technical support and vendor development– Supplier delight– Qualify suppliers and certify for direct line feed

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7. Elements of TQM 7.15 Reduce cost of quality

– Internal failure– External failure– Appraisal– Prevention

7.16 Developing a quality culture– Change in mind set– Being proactive

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Financial Data

Factory Data

Defect Reports

Labor Hours

Recode/Redesign

Customer Complaints

Sales

Operation Costs

Material Costs

Overhead Costs

Gen. & Admin. Costs

Cost of uality Measurement of a Company’s Health

50

40

30

20

10

5

%

Percentage of Sales Dollar

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IcebergIceberg

Bugs

RecodeDefects

WarrantyCosts

Quotation Errors

Product Liability

Missed DeadlinesConfiguration Errors

Complaint Handling

Bad Market Reviews

Process SlowdownField Service

Lost Market Share

Software Patches

Returned Goods

InterfaceErrors

Help Desk

Poor Documentation

Training

Cost of uality

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Element Decision Flow

Is Cost related toPrevention of Non-Conformance ?

Is Cost related toEvaluating theConformance ?

Is Cost related toNon-conformance ?

Is Non-Conformancefound prior toShipment ?YES

NO

PREVENTION

APPRAISAL

INTERNAL FAILURE

EXTERNAL FAILURE

Not a Quality Cost

YES

YES

NO

NO

YES

NO

Cost of uality

J.M.Pant, Faculty

Examples of Elements

PREVENTIONDesign Quality Progress ReviewsRequirements DocumentationQA TrainingProcess Engineering

INTERNAL FAILURERecode/Repair LaborDefect Tracking & ReportsRequirement ChangesDown Equipments

APPRAISAL Unit Testing Regression Testing Automated Test Tools User Interface Reviews

EXTERNAL FAILURE Returned Goods Liability Costs Help Desk Lost Sales/Market Share

Cost of uality

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The Strategy is based on the premise that:

For each failure there is a root cause.

Causes are preventable.

Prevention is always cheaper.

Strategy PremiseCost of uality

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Cost ofQuality%

Total Sales

TOTAL SALES

Appraisal

Prevention

InternalFailures

ExternalFailures

C O Q (Rs.Rs.Rs.)

Cost of uality

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COST OF QUALITYCOST OF QUALITYOPTIMUM QUALITY COST MODELOPTIMUM QUALITY COST MODEL

CO

ST

/ GO

OD

UN

IT

0 100

FAILURECOSTS

PREVENTION & APPRAISAL COSTS

TOTALCOST

% GOOD

OPTIMALOPTIMALPOINTPOINT

J.M.Pant, Faculty

Freq.

XTarget USLLSL

A study found U.S. consumers preferred Sony TV’s made in Japan to those made in the U.S. Both factories used the same designs & specifications. The difference in quality goals made the difference in consumer preferences.

Japanese factory (Target-oriented)

U.S. factory (Conformance-oriented)

Target Specification ExampleTarget Specification Example

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BenchmarkingBenchmarking

How do today's business leaders sustain their competitive edge?

By staying abreast of the latest, best practices and learning to apply them to every aspect of their organization.

Whether you work in accounts payable, travel & entertainment, planning & budgeting, inventory management or payroll, learning about, customizing and implementing the best practices is the surest way to enhance the efficiency and effectiveness of your work.

J.M.Pant, Faculty


Benchmarking concept

What is ourPerformance level?How do we do it?

What are others’Performance levels?

How did they get there?

BreakthroughPerformance

Creative Adaptation

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BenchmarkingBenchmarking Implicit in benchmarking are two key elements: Measuring performance in numerical terms

(metrics). Requires some sort of units of measure.– The numbers achieved by the best in class

benchmark are the target.– Organization seeking improvement plots its

own performance against the target.– Think of measures of performance in your

manufacturing unit? service unit? For HR processes?

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Benchmarking requires that managers understand why their performance differs.– Bench markers must develop a thorough and in-

depth knowledge of both their own processes and the processes of the best-in-class organization.

– An understanding of the differences allows the managers to organize their improvement efforts to meet the goal.

Benchmarking is about setting goals and about meeting them by improving processes.

J.M.Pant, Faculty

Benchmarking ProcessBenchmarking Process

Decide what to benchmarkUnderstand current performancePlanStudy othersLearn from the dataUse the findings

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Decide what to benchmark Think about the critical success factors and the

mission.– Which processes are causing the most trouble?– Which processes contribute most to customer

satisfaction and which are not performing up to expectations?

– What are the competitive pressures impacting the organization the most?

– What processes have the most potential for differentiating our organization from the competition?

J.M.Pant, Faculty

STANDING IN THE STANDING IN THE MARKETPLACEMARKETPLACE

<Example>Rating for each attribute and weighted rating to be entered in the cells for company X and the competitors

Attribute Weight Company X Competitor A Competitor B

Safety

Performance

Quality

Service

Ease of

Use

Reliability

J.M.Pant, Faculty


<Example>For a service unit

Satisfaction with ..

Weightage Company X Competitor A

Competitor B

Greeting with a smile

Processing transactions without error

Easy to read and understand bank statements

Prompt response

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<Example>automobile manufacturer experiencing a drop in market share

Attribute Weightage Comparison to competition %

Superior Competitive Inferior

Quality of equipment

Quality and availability of spare parts

Quality of field repair service

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Types Of BenchmarkingTypes Of Benchmarking

1. Internal– Comparison within the organization of similar

activities.– Data easy to obtain

2. Competitive– Organization’s survival depends on its performance

relative to competition– Through surveys, reports, customers, suppliers,

buying customers product to take apart and test.

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3. Process.– Many processes are common across industry

boundaries, and innovations from other types of organizations can be applied across industries.

– It is relatively easy to find organizations with world class operations through published information, suppliers and consultants.

– For example, processes of payroll and accounts receivable, order processing, design, logistics etc..

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3. Process.– <Examples>– Southwest Airlines benchmarked turnaround

time with auto racing pit crews.– Motorola looked to Domino’s Pizza and

Federal Express for the best ways to speed up delivery systems.

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Identifying the best firms to benchmark– There is no existing magic list of best-in-class

companies.– Hierarchy of best practices

World Class

Any organization, India

Industry-wide, Sector-wide

Competitor

Internally

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Benchmarking ProcessBenchmarking Process Studying Others Information available internally Public information Questionnaires Site visits Focus groups

– Panels of benchmarking partners brought together to discuss areas of mutual interest.(customers, suppliers, members of professional organizations, people with previous benchmarking activity experience, consultants).

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Learning from the data Is there a gap between the organization’s

performance and the performance of the best-in-class organizations?

What is the gap? How much is it? Why is there a gap? What does the best-in-class

do differently that is better? If best-in-class practices were adopted, what

would be the resulting improvement?

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Using the findings Two groups must agree on the change

– The process owners-people who will run the process– Top management-who will enable the process and

provide the necessary resources

If best-in-class practices were adopted, what would be the resulting improvement?

Current practices can’t change the best-in-class results but changing the process can.

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Benchmarking ProcessBenchmarking Process Using the findings When acceptance is gained, new goals based on the

benchmark findings are set. The generic steps for the development and execution of

action plans are:– Specify tasks– Sequence tasks– Determine resource needs– Establish task schedule– Assign responsibility for each task– Describe expected results– Specify methods for monitoring results

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Quality Function DeploymentQuality Function Deployment

Dr Mizuno of Tokyo Institute of Technology is credited with initiating the QFD system.

First application of QFD was at Mitsubishi Heavy Industries in Kobe shipyard in 1972.

After 4 years implemented by Toyota in production of mini-vans.

QFD introduced in U.S in 1984 by Dr Clausing of Xerox.

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Benefits of QFD: Improves customer satisfaction

– Defines requirements in a set of basic needs and compares it to all competitive information.

– Management can then place resources where they will be the most beneficial in improving quality.

Reduces implementation time– Fewer engineering changes needed– Critical to quality issues are identified and monitored

from product inception to production.

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Benefits of QFD: Promotes team work

– Horizontal deployment of communication channels– Avoids misinterpretation, opinions and miscues.

Provides documentation– Database for future design or process improvements is

created.

– Serves as a training tool for new engineers.

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QFD is a planning tool used to fulfill customer expectations.

Focuses on Voice of the customer.Market research attempts to capture the

voice of customer but they sometimes conflict, and lack clarity.

This is where voice of the customer gets lost and voice of the organization enters.

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Quality Function DeploymentQuality Function Deployment Voice of Customer

Solicited

Quantitative

Structured Random

Qualitative

Unsolicited

Focus groups

Trade visitsCustomer visits

Consultants

Sales force; training programs; conventions; trade journals; suppliers; academic; employees

Customer Complaint reports; lawsuits

Customer surveys; market surveys; trade trials;

customer audits; product purchase (buy back) survey

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Voice of customer:What does the customer really want?What are the customer’s expectations?Are the customer’s expectations used to

drive the design process?What can the design team do to achieve

customer satisfaction?

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Voice of customer:Once the customer expectations and needs

have been identified and researched, QFD team processes the information.

The Affinity diagram is ideally suited for most QFD applications.

QFD team:– Designing a new product– Improving an existing product

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QFD teamTeam members from Marketing, Design,

Quality, Finance and Production.For existing product, team may have fewer

members.Time commitment and inter team

communication is a must.Regular team meetings.Team focus on quality management goal.

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Affinity Diagram Gathers large amount of data and organizes data into

groupings based on their natural interrelationships.– Used when thoughts are too widely dispersed or

numerous to organize– New solutions are needed

Steps– Phrase the objective– Record all responses– Group the responses– Organize groups in an affinity diagram

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Mapping the Voice of CustomerMapping the Voice of Customer Affinity diagram – Scrambled ideas

What are the issues involved in missing shipping dates?

Not enough fork trucks

Shipping turnover

Engineering changesInsufficient training

Overcrowded dock

Teams not usedComputer crashes

Error on bill of lading

Inexperienced supervisors

No place for returns

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Mapping the Voice of CustomerMapping the Voice of Customer Affinity diagram – Ordered ideas

What are the issues involved in missing shipping dates?

Not enough fork trucksShipping turnover

Engineering

changes

Insufficient trainingOvercrowded dock

Teams not used

Computer crashes

Error on bill

of ladingInexperienced supervisors

No place for returns

Facilities People System

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Prepare an affinity diagram for:Improvement of the cafetariaReducing equipment downtimeReducing congestion on roadsMaking Delhi more safeIncreasing literacy in IndiaImproving quality of PG management

/engineering/ medical education

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House of QualityHouse of Quality

The primary planning tool used in QFD is the house of quality.

The house of quality translates the voice of the customer into design requirements that meet specific target values and matches those against how an organization will meet those requirements.

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Relationship between

requirements and descriptors

Cus

tom

er r

equi

rem

ents

(Voi

ce o

f th

e cu

stom

er)

Prioritized technical descriptors

Technical descriptors(voice of the organization)

Pri

orit

ized

cus

tom

er r

equi

rem

ents

Interrelationship between technical descriptors

J.M.Pant, Faculty


QFD (Fig A)

Custom

ers

Customers’needs

Product features

Custom

ersneeds

Processfeatures

Productfeatures

ProcessControlfeatures

Process

features

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Fig B is a matrix of customer needs (“customer requirements”) and product features (“technical requirements”) for paper being supplied to a commercial printer. Note the additional requirements on importance weighting, correlations between requirements, units of target values (e.g millimeters for width and thickness) and competitive evaluations.

Fig B is also called as the House of Quality.

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Quality Function DeploymentQuality Function Deployment House of Quality (Fig B)

Technical requirements

Paper width

Paper thickness

Coating thickness

Tensile strength

Paper color

Competitive evaluation

Importance to customer

X = UsA = Competitor A

B = Competitor B

( 5 is best)

1 2 3 4 5

Customer

requirements

Paper will not tear

3 X A B

Consistent finish

1 A X B

No ink bleed 2 B A X

Prints clearly 3 X A B

RelationshipsStrong=9

Medium = 3 Small=1

Correlations enteredIn squares like:

Strong positive, positive,Negative,

Strong negative

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Quality Function DeploymentQuality Function Deployment House of Quality (Fig B)

Technical requirements

Peper width

Paper thickness

Coating thickness

Tensile strength

Paper color

Competitive evaluation

Importance to customer

X = UsA = Competitor A

B = Competitor B

( 5 is best)

1 2 3 4 5

Customer

requirements

Importance weighting 3 27 36 27 9 X A B

Target Values W:mm T: mm microns Kg per sq cm

Approved panel

A X B

Technical 5 evaluation 4

3

2

1

B

X A B A X

A X A X B

B X B A

B A X

X A B

RelationshipsStrong=9

Medium = 3 Small=1

Correlations enteredIn squares like:

Strong positive, positive,Negative,

Strong negative

J.M.Pant, Faculty

Total Quality ManagementTotal Quality Management Change in mind set for variability reduction

Conventional TQM way

Meet specifications Move to target value

High tech machines needed Even with old machines through better setting, maintenance and employee training

Managers think and plan Managers guide and lead

Workers think, plan and do

MBO Kaizen (continuous improvement)

Profit by driving task completion

Quality is the path of profit

total quality management

Documents

total quality management

total quality management

quality education

quality target

service quality products

quality function deployment

quality culture change

management j