Total Quality Management-a continuous improvement process

Presented by AMARCHAND . L09MBA02.

Quality“Quality is defined as the totality of characteristics &

features of a product or process which facilitates realization of given requirements.”

Quality --A Few Definitions 1. Conformance to requirements --Crosby 2. Fitness for use --Japan 3. I know it when I see it --Guaspari4. Value to someone --Weinberg

"Quality has no meaning except as defined by the desires and needs of the customers." Deming

.TQM is a approach to improve the effectiveness & flexibility of business as a whole.TQM is way of organizing by involving everyone. A comprehensive, organization-wide effort to improve the quality of products and services, applicable to all organizations.

What is Total Quality Management

TQM is a comprehensive management system which:

Focuses on meeting owners’/customers’ needs, by providing quality services at

a reasonable cost.

Focuses on continuous improvement.

Recognizes role of everyone in the organization.

Views organization as an internal system with a common aim.

Focuses on the way tasks are accomplished.

Emphasizes teamwork.

Evolution of TQM

• How is customer satisfaction achieved? Two dimensions: Product features and Freedom from

deficiencies.

• Product features – Refers to quality of design. Examples in manufacturing industry: Performance,

Reliability, Durability, Ease of use etc. Examples in service industry: Accuracy, Timeliness,

Friendliness and courtesy, Knowledge of server etc.

• Freedom from deficiencies – Refers to quality of conformance.

Higher conformance means fewer complaints and increased customer satisfaction.

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Quality perspectives Everyone defines Quality based on their own

perspective of it. Typical responses about the definition of quality would include:

1. Perfection2. Consistency3. Eliminating waste4. Speed of delivery5. Compliance with policies and procedures6. Doing it right the first time7. Delighting or pleasing customers8. Total customer satisfaction and service

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Quality levels

At organizational level, we need to ask following questions:

• Which products and services meet your expectations?• Which products and services you need that you are not

currently receiving?

At process level, we need to ask:• What products and services are most important to the

external customer?• What processes produce those products and services?• What are the key inputs to those processes?• Which processes have most significant effects on the

organization’s performance standards?

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Quality levels

At the individual job level, we should ask:• What is required by the customer?• How can the requirements be measured?• What is the specific standard for each

measure?

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QUALITY MANAGEMENT

• Quality Planning

• Quality control

• Quality improvement

QUALITY PLANNING

• Determine who the customers are• Determine the needs of the customer• Develop product features that responds to

customer’s needs• Develop processes that are able to produce

those product features• Fail-safing/Foolproofing : Pokayoke• Transfer the resulting plan to the operating

forces

QUALITY CONTROL

• Evaluate actual quality performance

• Compare actual performance to quality goals

• Take remedial actions

QUALITY IMPROVEMENT

• Establish the infrastructure to achieve annual quality improvement

• Identify the improvement projects• Project teams• Provide the resources ,motivation, training - Diagnose the causes - Stimulate establishment of remedy - Establish controls to retain the benefits

QUALITY MANAGEMENTQUALITY IMPROVEMENT

COST OF POOR QUALITY

CHRONIC WASTE

TIME

LESSONS LEARNT

QUALITY PLANNING QUALITY CONTROL

Process improvement tools

Seven QC Tools

1. Flow charts2. Check sheets3. Histograms4. Pareto diagrams5. Cause-and-effect diagrams6. Scatter diagrams7. Control charts

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TQM beliefs

Following are the universal Total Quality Management beliefs:

• Owner/customer satisfaction is the measure of quality

• Everyone is an owner/customer.

• Quality improvement must be continuous.

• Analysis of the processes is the key to quality improvement.

• Measurement, a skilled use of analytical tools, and employee involvement are critical sources of quality improvement ideas and innovations

• Sustained total quality management is not possible without active, visible, consistent, and enabling leadership by managers at all levels

• It is essential to continuously improve the quality of products and services

that we provide to our owners/customers.

TQM principles

• People will produce quality goods and services when the meaning of quality is expressed daily in their relations.

• Inspection of the process is as important as inspection of the product.

• Probability of variation, can be understood by scientific methods.

• Workers work in the system to improve the system; managers work on the system to improve the system.

• Total quality management must be consistently translated into guidelines provided to the whole organization.

• Envision what you desire , but start working from where you actually are.

• Cleaner site and safer place to work is also important.

• Accept the responsibility for quality.

• Use the principle of get it right, the first time, every time.

• Understand that quality is a journey, not a destination.

Pitfalls to be avoided in TQM

Many companies have started on the road to quality but failed to achieve success

due to several factors, these are listed as follows:

• Lack of top management support.

• Lack of middle management support.

• Commitment in only one department.

• Short-term commitment .

• Haphazard approach .

• Failure to acquire the services of a competent statistician.

• Measure success and guide program.

• Failure to solicit worker input.

Pitfalls to be avoided in TQM (contd…)

• Over dependence on computerized quality control.

• Funding failure .

• No market research.

• No testing of incoming materials.

• Overselling hourly workers.

• Adversarial management.

Cause-and-Effect Diagram Used to identify potential causes for

particular quality problem.

Steps in implementing TQM1 Obtain CEO Commitment

2 Educate Upper-Level Management

3 Create Steering Committee

4 Outline the Vision Statement, Mission Statement, & Guiding Principles

5 Prepare a Flow Diagram of Company Processes

6 Focus on the Owner/Customer (External) & Surveys

7 Consider the Employee as an Internal Owner/customer

8 Provide a Quality Training Program

9 Establish Quality Improvement Teams

10 Implement Process Improvements

11 Use the Tools of TQM

12 Know the Benefits of TQM

ADVANTAGES OF TQM

• Helps to face competition• Reduction in Customer

complaints• Highly Motivated Personnel• Expansion and Diversification

DISADVANTAGES OF TQM

• Conservative Attitude of Indian Management

• Master and Servant Relationship• Attitudes of Indian Society

Quality Management Awards and Framework

ISO 9000: 2000Malcolm Baldrige National Quality AwardDeming PrizeSix Sigma

Conclusion :

Meeting Customer Requirements.

Reducing Development Cycle Time

Demand Flow Manufacturing

Reducing Product and Service Cost

Improving Administrative System Training

Quality is a Journey, not a Destination

THANK - YOU