TQM and Continuous Improvement1. Signs of Un-quality2. Quality Defined3. TQM Defined4. Traditional vs. TQM Culture5. TQM: How It Is Achieved6. Tools for Generating Ideas7. Five-phase Approach to

Implementation8. The Malcom Baldrige Quality Award

Signs of Un-Quality

ProcessTime

Increases

ProcessTime

Increases

Number ofInspectionsIncreases

Number ofInspectionsIncreases

Number ofMeetingsIncreases

Number ofMeetingsIncreases

CustomerComplaints

Increase

CustomerComplaints

Increase

ExperiencedWorkersLeave

ExperiencedWorkersLeave

Micro-Management

Micro-Management

Quality. . .

. . . Is a dynamic state associated with products, services, people, processes, and environments that meet or exceed current expectations.

TQM: A Definition

TQM is a team-based cooperative form of doing business that relies on talents and capabilities to continually improve quality and productivity.

Two Key Philosophies:

۰Continuous Improvement

Traditional vs. TQM Culture

Aspect Traditional TQM

ObjectivesObjectives Short term,Inconsistent

Short term,Inconsistent

Long and short term,consistent

Long and short term,consistent

ManagementManagement Open, encouragesemployee input

Open, encouragesemployee input

Issue orders,enforce

Issue orders,enforce

Coach, remove barriers,build trust

Coach, remove barriers,build trust

CustomerRequirements

CustomerRequirements

Not highest priority,may be unclear

Not highest priority,may be unclear

Highest priority,identify and understand

Highest priority,identify and understand

MissionMission Maximize ROIMaximize ROI

Traditional vs. TQM (cont.)

ProblemsProblemsAssign blame,

punishAssign blame,

punishIdentify and

resolveIdentify and

resolve

Problem solvingProblem solvingNot systematic,

individualsNot systematic,

individualsSystematic,

teamsSystematic,

teams

ImprovementImprovement ErraticErratic

AdversarialAdversarial PartnersPartners

JobsJobsNarrow,

specializedNarrow,

specializedBroad, more

generalBroad, more

general

FocusFocus ProductProduct

Aspect Traditional TQM

Elements of TQM۰Continuous improvement

۰Competitive benchmarking

۰Employee empowerment

۰Team approach

۰Decisions based on facts, not emotions

۰Knowledge of tools

۰Supplier quality

Tools for Generating Ideas

۰Brainstorming

۰Quality Circles

۰Benchmarking

Benchmarking

۰What Organization Does It the Best?

۰How Do They Do It?

۰How Do We Do It Now?

۰How Can We Change to Match or Exceed the Best?

Tools for Generating Ideas

۰Brainstorming

۰Quality Circles

۰Benchmarking

۰The 5W2H approach

The 5W2H Approach۰What?

۰Why?

۰Where?

۰When?

۰Who?

۰How?

۰How Much?

Five-Phase Approach to Implementation

Phase 1:Preparation

Phase 1:Preparation

Phase 2: PlanningPhase 2: Planning

Phase 3:Phase 3:

Phase 4: ImplementationPhase 4: Implementation

Phase 5: DiversificationPhase 5: Diversification

Phase 1: Preparation

۰Develop A Vision Statement

۰Develop Goals

۰Outline Policy

۰Communication

۰Empowerment

Phase 2: Planning۰Forming A Team

۰Training

۰Identifying Expectations

۰Identifying Obstacles

۰Selecting & Training A Coordinator

۰Prioritizing

۰Identifying Support Services

Phase 3:

۰Customer Survey

۰Organizational Assessment

۰TQM Planning Inventory

۰Training Feedback

Phase 4: Implementation

۰Selecting & Training Support Personnel

۰Training Management & the Workforce

۰Executive Reinforcement

۰Controlling

Phase 5: Diversification

۰Supplier Involvement

۰Competitive Analysis

۰Select Strategic Suppliers

۰Certify Suppliers

۰Networking

Baldrige Award Criteria Framework

SeniorExecutive

Leadership

SeniorExecutive

Leadership

Quality andOperational

Results

Quality andOperational

Results

Informationand Analysis

Informationand Analysis

CustomerFocus and

Satisfaction

CustomerFocus and

Satisfaction

StrategicQuality

Planning

StrategicQuality

Planning

HumanResource

Developmentand

Management

HumanResource

Developmentand

Management

Managementof ProcessQuality

Managementof ProcessQuality

“Driver”“Driver”

SystemSystemGoalGoal

•Customer Satisfaction•Customer satisfaction relative to competitors•Market Share

Measures ofProgress

Measures ofProgress

•Product and service quality•Internal quality and productivity•Supplier quality

Baldrige Award WinnersMotorola’s quality control problems:

۰poorly designed assemblies

۰incorrect parts ordered or shipped by suppliers

۰defective or damaged parts from suppliers

۰machinery incapable of operating within control limits

۰insufficient training

Baldrige Award Winners

AT&T’s Three Priorities for Quality

۰First, to step up their efforts to have the best quality in the world.

۰Second, to keep striving for an operating style and behavior that focused more sharply on customer needs.

۰Third, to continue to develop into a truly global corporation.

Baldrige Award Winners

“We listen, we learn, and we act constantly so that the quality of our products and services will keep improving.”

Globe Metallurgical, Inc.

Baldrige Award Winners

Total Quality is “performance leadership in meeting customer requirements by doing the right things right the first time.

We’ve developed a culture where employees involved in quality are the norm. The Total Quality attitude is so pervasive that it’s those who don’t participate who are the exception.

Westinghouse Electric

Baldrige Award WinnersLeadership through quality was a long-term

process meant to change the way our people worked and managed so they could continuously improve the way they met the requirements of the customers.

The Baldrige process is valuable because it forces you to look at your company the way the customer sees it - not the way you think it is.

Xerox

Baldrige Award Winners

You can’t simply place people on teams and expect the outcome to be favorable. In order to achieve success, you need to create an atmosphere that is conducive to teamwork and establish some guidelines.

The Wallace Company

Baldrige Award Winners

A business can survive only through improvement. The Baldrige forces you to stay on your toes.

It’s a beautiful system. I think companies will take it seriously, use it primarily as a tool for improvement, and work hard to reap tremendous benefits in a short period of time.

Granite Rock

Baldrige Award WinnersEight great benefits Baldrige has brought:1. More aggressive, strategic goal setting.2. Enhanced quality awareness.3. Improved customer awareness.4. Better benchmarking.5. Development of new, quality-driven operations.6. Improved supplier management.7. Stronger employee participation and

recognition.8. Problem-solving through teambuilding.

Ten Commandments of Continuous Improvement

1. Put the customer first.2. 3. Design quality into products

and services.4. Improve everything, continually.5. Create and support a safe and

open work environment.

Ten Commandments of CI (cont.)

6. Do not shoot the messenger. 7. Stop imitating the Japanese. 8. 9. Do not sacrifice long-term

improvements for short-term profits.

10. Quality is not enough.