Total Quality ManagementBackgrounds &Concepts

Anont WonggasemDepartment of Industrial Engineering

Faculty of Engineering

Kasetsart University

AgendaQuality DefinitionThe Quality EvolutionManaging QualityTQM PioneersTQM in PerspectiveTQM ModelsTQM for Education

Quality DefinitionConventional DefinitionsContemporary DefinitionsQuality StagesQuality Ladder

Quality Definitions : ConventionalQuality is degree of excellent. Quality means fitness for use.Quality means conformance to standard.Quality means conformance to specification.Quality is inversely proportional to variability.

Quality Definitions : ContemporaryAbility to satisfy needs.Conformance to customer requirements.Customer satisfaction.Customer delights.

Quality car?

Quality stages- quality of design- quality of conformance- quality of performance

Dimensions of Quality –Transmission Example

QUALITY LADDERQUALITYQ. DIMENSIONSQ. CHARACTRISTICSQ. SPECIFICATIONS

Quality DimensionProduct

PerformanceFeaturesConformityReliabilityDurabilityServiceabilityAestheticsPerceived Quality

ServiceResponsivenessEmpathyCourtesyAccuracySystematicTangible

Quality CharacteristicsPhysical - length, weight, voltage, viscositySensory - taste, appearance, colorTime Orientation - reliability, durability, serviceability

Quality Characteristics Data

Attributes Data - discrete data, often in the form of counts.

Variables Data - continuous measurements such as length, weight.

SpecificationsQuality characteristics being measured are often compared to standards or specifications.Nominal or target valueUpper Specification Limit (USL)Lower Specification Limit (LSL)

Quality Engineering TerminologyWhen a component or product does not meet specifications, they are considered to be nonconforming.A nonconforming product is considered defective if it has one or more defects.Defects are nonconformities that may seriously affect the safe or effective use of the product.

NC

DEFECT NONCONFORMITYDEFECTIVE NONCONFORMING

NONCONFORMANCE

NC Classification

CriticalMajorMinor

THE QUALITY EVOLUTION

INSPECTION

QUALITY CONTROL (QC)

QUALITY ASSURANCE (QA)

TOTAL QUALITY MANAGEMENT (TQM)

Inspection EraPost industrial revolution quality control method.Main focus on product, specification and/or standard.Resulted in mass inspection, fleet of inspectors and inspection department.High quality at high cost.A verification activity which may create quality policing culture.

Verification and other activities for qualityVerification

InspectionAudit AssessmentSurveillance

Other types activitiesMonitorReviewValidation

Quality Control EraApplication of PDCA cycle (Deming cycle or Shewhart cycle)Application of statistical methods

Control chartsSampling planQI toolsDesign of Experiments (DOE)

First focused on product characteristics and then process parameters. (SQC to SPC)

Quality Assurance EraQuality means conformance to customer requirements and/or customer satisfaction.Other business processes were integrated in; marketing, design, engineering, procurement, production, services, HRM, administration etc.Focus on business processes and systems.Empowering of line departments. QA become supporting staff and coordinators.

Total Quality ManagementFocus on management; Planning – Organizing - Directing - ControllingEncourage participation in the organization and supply chain.The wholeness approach on quality.National quality award as a model

Managing QualityPlanningOrganizingDirectingControlling

Managing Quality: PlanningMissionVisionStrategiesGoalsObjectives

ProcessTacticOperationBudget

Managing Quality: OrganizingWork designOrganization structureOrganization culture

Chain of commandAuthority –responsibility –accountabilityLine – staffTeam work

Managing Quality: DirectingHuman resource management (HRM)

Recruitment & SelectionOrientation & trainingCompensation & benefitsPerformance AppraisalCareer advancement

LeadingMotivatingEmpowermentDelegation

Managing Quality: ControllingMonitorMeasurement & AnalysisVerificationsReviewReport & feedbackData & information

Corrective actionPreventive actionImprovementInnovation

TQM PioneersW. Edwards DemingJoseph M. JuranPhilip B. CrosbyArmand V. FeigenbaumKaoru IshikawaShigeo ShingoGenichi Taguchi

W. Edwards DemingTaught engineering, physics in the 1920s, finished PhD in 1928Met Walter Shewhart at Western ElectricLong career in government statistics, USDA, Bureau of the CensusDuring WWII, he worked with US defense contractors, deploying statistical methodsSent to Japan after WWII to work on the census

History of Dr. W. Edwards Deming

Born in 19001928 – Received PhD in Physics1946 – Led formation of American Society for Quality

Controlmid-1940s – TQM developedlate 1940s – Introduced statistical quality control to

Japan1951 – Japan created Deming Award1970s-1980s – Ford, IBM, Xerox adopt TQM1980 – Deming “Discovered” in America

The New EconomicsDr W. Edwards Deming

In his last book, Dr. Deming explained the "System of Profound Knowledge" that he developed to enable business to make the necessary transformation for success in today's world.

Deming also shared his thoughts on Leadership, Management, Variation, Shewhart's Charts, and other topics.

This book was completed shortly before his death in 1993 and is a valuable reference for all quality professionals.

Deming’s achievementsPlanted statistical quality control in Japanese industries.Cultivated PDCA cycle (usually known as Deming cycle) every level of organizational hierarchy.Inspired Japanese national quality with Deming Prize Award.Conceptualized management principles guiding the Total quality management (TQM)

Deming’s 14 Points

1. Create constancy of purpose toward improvement 2. Adopt a new philosophy, recognize that we are in a time of

change, a new economic age3. Cease reliance on mass inspection to improve quality4. End the practice of awarding business on the basis of price

alone5. Improve constantly and forever the system of production and

service6. Institute training7. Improve leadership, recognize that the aim of supervision is

help people and equipment to do a better job8. Drive out fear9. Break down barriers between departments

14 Points cont’d10. Eliminate slogans and targets for the workforce such as

zero defects11. Eliminate work standards12. Remove barriers that rob workers of the right to pride in

the quality of their work13. Institute a vigorous program of education and self-

improvement14. Put everyone to work to accomplish the transformation

Note that the 14 points are about change

Deming’s 7 Deadly Diseases1. Lack of constancy of purpose2. Emphasis on short-term profits3. Performance evaluation, merit rating, annual

reviews4. Mobility of management5. Running a company on visible figures alone6. Excessive medical costs for employee health

care7. Excessive costs of warrantees

The Deming Cycle (PDCA Cycle)

Identify problemDevelop plan for improvement

1. Plan

Institutionalizeimprovement

Continue cycle

4. Act

Implement plan on test basis

2. Do

Is the plan working3. Study / Check

© 2000 by Prentice-Hall IncRussell/Taylor Oper Mgt 3/e Ch 3 - 13

Dr. Joseph M. JuranBorn in Romania (1904), immigrated to the USWorked at Western Electric, influenced by Walter ShewhartEmphasizes a more strategic and planning oriented approach to quality than does DemingJuran Institute is still an active organization promoting the Juranphilosophy and quality improvement practices

The Juran Trilogy

Quality PlanningQuality ControlQuality Improvement

Phillip B. CrosbyQuality is free . . . :“Quality is free. It’s not a gift, but it is free. What costs money are the unquality things -- all the actions that involve not doing jobs right the first time.”

Philip B. CrosbyAbsolutes of Quality Management:

Quality means conformance to requirementsProblems are functional in natureThere is no optimum level of defectsCost of quality is the only useful measurementZero defects is the only performance standard

www.philipcrosby.com

A.V. FeigenbaumThree Steps to Quality

Quality Leadership, with a strong focus on planningModern Quality Technology, involving the entire work forceOrganizational Commitment, supported by continuous training and motivation

Dr. Armand Feigenbaum

Kaoru IshikawaAdvocated the use of simple visual tools and statistical techniquesInfluenced participative approaches involving all workersFather of Quality CircleInstrumental in developing Japanese quality strategy

Shigeo ShingoPoka-YokeSMEDJIT ProductionZero Defects

Genichi TaguchiPioneered a new perspective on quality based on the economic value of being on target and reducing variation and dispelling the traditional view of conformance to specifications:

No Loss LossLoss

Tolerance

0.500 0.5200.480

TQM in PerspectiveTotal Product/Service Quality Total Customers & StakeholdersTotal Business Process Total OrganizationTotal Participation and TeamworkTotal Knowledge

Total Product

Core Product

Formal Product

Augmented Product

Total Quality DimensionsManufacturing Dimensions

PerformanceFeaturesReliabilityConformanceDurabilityServiceabilityAestheticsPerceived quality

Service DimensionsReliabilityResponsivenessAssuranceEmpathyTangibles

Quality of Design

Quality of Conformance

Quality of Performance

Total Customers & StakeholdersStakeholders = Shareholders + Employees +

Suppliers + Customers + Communities + .. +parties in common interests.

Customer is principal judge of quality.Organizations shall first understand customers’ needs and expectations in order to meet and exceed them.Organizations shall build relationships with customers.Organization shall work as team with suppliers.Organization shall contribute to society at large.

Total Business ProcessMarketingDesigningProcess EngineeringPurchasingManufacturingQuality AssuranceDelivery and After Sale ServiceDisposal after use

Total Organization

MiddleMiddleManagementManagement

SupervisorySupervisoryManagementManagement

TopTopManagementManagement PowerPower

EmployeesEmployees

Total Participation and TeamworkEmployees know their jobs best and therefore, how to improve themManagement must develop the systems and procedures that foster participation and teamworkEmpowerment better serves customers, and creates trust and motivationTeamwork and partnerships must exist both horizontally and vertically

TQM Knowledge

SPC FMECADOE

QFD QI Tools

MSA Six Sigma

Reliability

BPR

Standards

Benchmarking

Poka Yoke

ISO 9000

TQM

TQM ModelsValue ModelDeming Prize ModelMBNQA ModelEuropean ModelTQA Model

Six basic concepts of TQMcompare to 8 management principles of ISO9000:2000

customer focustotal employee involvementprocess centeredintegration systemstrategic and systematic approachcontinual improvementfact-based decision makingcommunications

Value ModelEmployee involvement and development

Management by fact

Improvement focus Customer value

driven Good Citizenship

Quick responseProcess

Management

Partnership in supply chain

Quality leadership

Process Management

1. Visionary Leadership2. Learning-centered education3. Organizational and Personal Learning4. Valuing faculty, staff, and partners5. Agility6. Focus on the Future7. Managing for Innovation8. Management by Fact9. Social Responsibility10. Focus on Results and Creating Value11. System Perspective

TQM Core Value

Deming Prize: Criteria Basis PolicyOrg. and developmentInformationAnalysisPlanning for the futureEducation and trainingQuality assuranceQuality effectsStandardizationControl

MBNQA Model

European Model

European Business Excellence Model Nine Criteria

TQM & TQA

Customer Satisfaction

Goals / Strategies

Conc

epts

Vehi

cles

Tech

niqu

es

Motivation Approach

Intrinsic Technology

General Education/Political Stability

3. Customer Focus

5. Human Focus

4. Information & KM

2. Strategic Plan

1. Leadership

6. Process Management

7. Results

Model TQA มี 7 หมวด 11 C๐re Value

เกณฑคุณภาพการบริหารจัดการภาครัฐ พศ. 2548

PMQA : Public Management Quality Award

เกณฑคุณภาพการบริหารจัดการภาครัฐ พศ. 2548

PMQA : Public Management Quality Award

6. การจดัการกระบวนการ

5. การมุงเนนทรัพยากรบคุคล

3. การใหความสาํคัญกับผูรบับรกิารและผูมสีวนไดสวนเสยี

1. การนําองคกร

2. การวางแผนเชิงยทุธศาสตรและกลยทุธ

P : ลกัษณะสําคญัขององคกร สภาพแวดลอม ความสัมพันธ และความทาทาย

7. ผลลพัธการดําเนินการ

4. การวัด การวเิคราะห และการจัดการความรู

รูปแบบจําลองกระบวนการของระบบการจัดการคุณภาพ

ลูกคาความ

พึงพอ

ใจ

ความรับผิดชอบดานการบริหาร

ลูกคา

ความ

ตองก

าร

ปจจัยเขา การผลิต(และ/หรือการบริการ)

สินคา /บริการ

ผลผลิต

การจัดการทรัพยากร

การวัด,การวิเคราะห,การปรับปรุง

การพัฒนาและปรับปรุงระบบบริหารงานคุณภาพอยางตอเนื่อง

Legend: มูลคาเพิ่ม ขอมูล

ISO 9000 Model

TQA 11 Core Values

การนําองคการอยางมีวิสัยทัศน

ความเปนเลิศที่มุงเนนที่ลูกคา

การมุงเนนอนาคต

การจัดการโดยใชขอมูลจริง

มุมมองเชิงระบบ

ความรับผิดชอบตอสังคม

การมุงเนนที่ผลลัพธ

และการสรางคุณคา

การจัดการเพื่อนวัตกรรม

ความคลองตัว

การใหความสําคัญกับ

พนักงานและคูคา

การเรียนรูขององคการ

และแตละบุคคล

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TQM in EducationDeming philosophy and modelBaldrige frameworkMy model

"Management by results is confusing special causes with common causes."

"We should work on the process, not the outcome of the processes."

W. Edwards Deming

“Monetary rewards are not a substitute for

intrinsic motivation.”

“A goal without a method is nonsense.”

W. Edwards Deming

Education: Baldrige Framework

1. Leadership2. Strategic Planning3. Student, Stakeholder, and Market Focus4. Measurement, Analysis, and Knowledge Management5. Faculty and Staff Focus6. Process Management7. Organizational Performance Results

TQM in Education: My model

Audit and verifications

Management leadership

Strategy, policy and plan

Physical resources

HRM

Quality system

Result

Operation

Measurement and analysis

ReviewImprovement

WEBSITESwww.deming.org W. Edwards Deming Institutewww.asq.org American Society for Qualitywww.juran.com Juran Institutewww.tqa.or.th Thailand Quality Awards

The End