Part One The Foundations – A Model for TQM

1. Part OneThe Foundations – A Model for TQM Week # 1 & 2 Understanding quality Prepared by: Khalid Dahleez Faculty of Commerce – the Islamic University of Gaza This material was collected from different sources Total Quality Management - Spring 2010

2. Focus on the issues Be on time Participate positively Keep confidences

3. Chapter Outline 1.1 Quality and competitiveness 1.2 Understanding and building the quality chains 1.3 Managing processes 1.4 Quality starts with ‘Marketing’ 1.5 Quality in all functions Total Quality Management - Spring 2010

4. What is Quality? Total Quality Management - Spring 2010

5. 1.1 Quality and competitiveness • Reputation for quality, reliability, price, and delivery – all things we compete on • Lessons to be learned about reputation from this story: • Competitive elements of quality, reliability, delivery, and price. • It takes a long time to change the poor reputation for quality. • Reputations, good or bad, can quickly become national reputations • The management of the competitive weapons can be learned and used to turn round a poor reputation. Total Quality Management - Spring 2010

6. 1.1 Quality and competitiveness • What is quality? “meeting the customer requirements” • What is reliability? “It is the ability of product and service to continue to meet the customer requirements” • Quality is meeting the customer requirements, and this is not restricted to the functional characteristics of the product or services. Total Quality Management - Spring 2010

7. Definition of Quality • Quality is also defined as excellence in the product or service that fulfills or exceeds the expectations of the customer. • There are 9 dimensions of quality that may be found in products that produce customer-satisfaction. • Though quality is an abstract perception, it has a quantitative measure- Q= (P / E ) , where Q=quality, P= performance(as measured by the Mfgr.), and E = expectations( of the customer). Total Quality Management - Spring 2010

8. Quality is not fine-tuning your product at the final stage of manufacturing, before packaging and shipping . • Quality is in-built into the product at every stage from conceiving –specification & design stages to prototyping –testing and manufacturing stages. Total Quality Management - Spring 2010

9. What is Quality • FEIGENBAUM (1983) DEFINED QUALITY AS FOLLOWS • Quality is total composite product (goods and services) characteristics, through which the product in use will meet the needs and expectations of the customers. • Concept of quality must start with identification of customer quality requirements and must end only when the finished product is placed into the hands of the customer who remains satisfied through various stages of relationship with the seller • American Society of Quality Control (ASQC) and American National Standard Institute (ANSI) defined • Quality is totality of features and characteristics of product (goods and services) that bears on its ability to satisfy given needs” Total Quality Management - Spring 2010

10. Definitions • ISO 9000:2000 Quality is the degree to which a set of inherent characteristics fulfils requirements. • Quantified Q=P/E P-Performance, E-Expectations • Joseph M. Juran Quality is fitness for use or purpose Total Quality Management - Spring 2010

11. Definitions • Philips B Crosby Quality is Conformance to requirements • W. Edwards Deming A predictable degree of uniformity and dependability at low cost and suited to market • Bill Conway Development, manufacture, administration and distribution of consistently low cost and products and services that customers need and want. Total Quality Management - Spring 2010

12. Approaches to define Quality • Transcendent Approach • Quality is absolute and universally recognisable. • It is common notion used by laymen • There is no subjective judgement and is estimated by looking at the product • Product Based Approach • Attributes of a particular product in a specific category • These attributes are accepted as bench of quality by the industry • Others in the same industry try to produce close to this quality Total Quality Management - Spring 2010

13. Approaches to define Quality • User Based Approach • Defined as “Fitness for use” • Viewed from user’s perspective and is dependent on how well does the product meet needs of the consumer. • Also known as Customer Oriented Approach • Production Based Approach • An outcome of engineering or operational excellence and is measured in terms of quality of conformance • The producer has specifications and produces the product as per the specifications Total Quality Management - Spring 2010

14. Approaches to define Quality • Value Based Approach • Quality is viewed in context of price • Quality is satisfactory, if it provides desired performance at an acceptable price • Customer looks at the total value proposition and not the price alone Total Quality Management - Spring 2010

15. Value-based Approach • Manufacturing Dimensions • Performance • Features • Reliability • Conformance • Durability • Serviceability • Aesthetics • Perceived quality • Service Dimensions • Reliability • Responsiveness • Assurance • Empathy • Tangibles Total Quality Management - Spring 2010

16. Attributes / Dimensions of Quality • Performance - main characteristics of the product/service • Aesthetics - appearance, feel, smell, taste • Special Features - extra characteristics • Conformance - how well product/service conforms to customer’s expectations • Reliability - consistency of performance Total Quality Management - Spring 2010

17. Attributes / Dimensions of Quality(Cont’d) • Durability - useful life of the product/service • Perceived Quality - indirect evaluation of quality (e.g. reputation) • Serviceability - service after sale Total Quality Management - Spring 2010

18. Service Quality • Convenience • Reliability • Responsiveness • Time • Assurance • Courtesy • Tangibles Total Quality Management - Spring 2010

19. Examples of Service Quality

20. Challenges with Service Quality • Customer expectations often change • Different customers have different expectations • Each customer contact is a “moment of truth” • Customer participation can affect perception of quality • Fail-safing must be designed into the system Total Quality Management - Spring 2010

21. Examples of Quality Dimensions

22. Examples of Quality Dimensions (Cont’d)

23. Evolution of Quality Management Total Quality Management Total Quality Management - Spring 2010

24. Evolution of Quality Management • Mass Inspection • Inspecting • Salvaging • Sorting • Grading • Rectifying • Rejecting • Quality Control • Quality manuals • Product testing using SQC • Basic quality planning • Quality Assurance • Emphasis on prevention • Proactive approach using SPC • Advance quality planning • Total Quality Control • All aspects of quality of inputs • Testing equipments • Control on processes Total Quality Management - Spring 2010

25. Quality Management Evolution Incorporates QC/QA activities into a company-wide system aimed at satisfying the customer. (involves all organizational functions) Total Quality Management Proactive Approach Prevention Stop defects at source. Zero defects 4 Quality Assurance Planned and systematic actions to insure that products or services conform to company requirements 3 Reactive Approach Operational techniques to make inspection more efficient & to reduce the costs of quality. (example: SPC) Quality Control Detection Finding & Fixing mistakes 2 Inspection Inspect products Total Quality Management - Spring 2010 1

26. The Acceptance Inspection Model Process Acceptance Sampling Inspection Pass the Inspection? NO YES Reject, Scrap, Rework, Repair Acceptance Next Process Total Quality Management - Spring 2010

27. Quality Control • Quality Control(QC) - “the operational techniques and activities that are used to fulfil requirements for quality”. • The purpose of quality control is to uncover defects and have them corrected so that defect-free products will be produced. • Quality control is limited to looking at products . • Quality control is testing the final product against product quality standards. • Quality control is operational techniques that are used to fulfill requirements for product quality. Total Quality Management - Spring 2010

28. Quality Control It is that part of Quality Management focused on fulfilling requirements of the Customers for the quality products. A Simplest Form of Quality Control is:- Requirements Yes Conforms Plan Do Check Remedial Action No Product Or Service Corrective Action Total Quality Management - Spring 2010

29. Quality Assurance • Quality Assurance(QA) - “all planned and systemic activities necessary to provide adequate confidence that a product or service will satisfy given requirements for quality”. • Quality assurance is oriented toward preventing defects. • It is defined by those activities that modify the development processes to prevent the introduction of defects. • Quality assurance is more concerned with the processes that produce the final product, and making sure that quality is part of each phase. • QA is about maturing the process towards minimum defect. • It is about balancing methodology, leadership, and technology. • It is about taking into account human factors as well as technological ones. Total Quality Management - Spring 2010

30. Total Quality Assurance Total Quality Assurance Total Quality Management Total Quality Management Quality Assurance (Process improvement) Quality Assurance Quality Control Quality Control (Correction of Defects) Inspection Inspection (Sorting out good from bad products) Total Quality Management - Spring 2010 The Phases of Development of Quality Assurance Systems

31. Evolution of Quality Management • Company wide Quality Control • Measured in all functions connected with production such as • R&D • Design • Engineering • Purchasing, • Operations etc • Total Quality Management • Measured in all aspects of business, • Top management commitment • Continuous improvement • Involvement & participation of employees Total Quality Management - Spring 2010

32. Evolution of Quality Management Total Quality Management - Spring 2010

33. TQM Evolution Evolution TQM Quality Assurance Quality Control Foreman Operator 1900 1918 1920 1940 1980 Total Quality Management - Spring 2010

34. What is Total Quality Management (TQM)? Total Quality Management - Spring 2010

35. TQM Total Made up of the whole Degree of excellence a product or service provides Quality Art of Planning, Organizing, Controlling etc. Management Therefore, TQM is the art of managing the whole to achieve excellence. Total Quality Management - Spring 2010

36. Meaning of TQM All persons System Of all divisions TQM means At every stratum MBO, Kaizen, QC Circle, 5S, TPM Method SQC,SPC, FMEA, MSA, OEE Q(Quality):Quality improvement C(Cost):Cost reduction D(Delivery):Delivery execution Purpose S(Safety):Safety maintenance M(Morale):Morale boosting E(Environmental):Environmental protection Total Quality Management - Spring 2010

37. Definition of TQM Systematic activities of operating the whole units of a company effectively and efficiently to supplygoods and services of quality satisfactory to customers at right time and at right price, thus contributing to attaining Business Purposes. TQM is integrated organisational approach in delighting customers (both internal and external) by meeting their expectations on a continuous basis through everyone involved in the organisation, working on continuous improvement in all products, services, and processes along with proper problem solving methodology. Total Quality Management - Spring 2010

38. Definition of TQM "TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society.” Total Quality Management means that the organization's culture is defined by and supports the constant attainment of customer satisfaction through an integrated system of tools, techniques, and training. This involves the continuous improvement of organizational processes, resulting in high quality products and services. Total Quality Management (TQM) is a management strategy aimed at embedding awareness of quality in all organizational processes. Total Quality Management - Spring 2010

39. What’s the goal of TQM? “Do the right things right the first time, every time.” Total Quality Management - Spring 2010

40. Pillars of TQM 1- Customer Focus: Studying customer needs, gathering customer requirements, and measuring and managing customer satisfaction. Customer satisfaction is seen as the company's highest priority. The company believes that it will only be successful if its customers are satisfied. 2- Process Management: Develop a production process that reduce the product variations. Applying the same process; the same product should be produces with the same level of quality every time. Teams are process-oriented, and interact with their internal customers to deliver the required results. Management's focus is on controlling the overall process, and rewarding teamwork. Total Quality Management - Spring 2010

41. Pillars of TQM 3- Employee Empowerment (Human side of Quality):TQM environment requires a committed and well-trained work force that participates fully in quality improvement activities. On-going education and training of all employees supports the drive for quality. 4- Continuous Improvement:TQM recognizes that product quality is the result of process quality. As a result, there is a focus on continuous improvement of the company's processes. This will lead to an improvement in process quality. In turn this will lead to an improvement in product quality. Measurement and analysis id the tool that has been used for that. Total Quality Management - Spring 2010

42. T. Q. M. Customer Focus Process Management Employee Training & Empowerment Continuous Improvement (through measurement and analysis) Pillars of TQM • Reduce rework activities (Cost reduction) • Shorter development cycle (Cost reduction) • Increased customer satisfaction (Quality improvement) Total Quality Management - Spring 2010

43. TQM six basic Concepts • Management commitment to TQM principles and methods & long term Quality plans for the Organization • Focus on customers – internal & external • Quality at all levels of the work force. • Continuous improvement of the production/business process. • Treating suppliers as partners • Establish performance measures for the processes. Total Quality Management - Spring 2010

44. (1) total client satisfaction through quality products and services; and (2) continuous improvements to processes, systems, people, suppliers, partners, products, and services. Another way to put it • At it’s simplest, TQM is all managers leading and facilitating all contributors in everyone’s two main objectives: Total Quality Management - Spring 2010

45. Continuous Improvement versus Traditional Approach • Market-share focus • Individuals • Focus on ‘who” and “why” • Short-term focus • Status quo focus • Product focus • Innovation • Fire fighting • Customer focus • Cross-functional teams • Focus on “what” and “how” • Long-term focus • Continuous improvement • Process improvement focus • Incremental improvements • Problem solving Continuous Improvement Traditional Approach Total Quality Management - Spring 2010

46. 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 BASIC PRINCIPLES/APPROACHES OF TQM Total Quality Management - Spring 2010

47. Understanding and building the quality chains • “A Customer’s impression of quality begins with the initial contact with the company and continues through the life of the product.” • Customers look to the total package - sales, service during the sale, packaging, deliver, and service after the sale. • Quality extends to how the receptionist answers the phone, how managers treat subordinates, how courteous sales and repair people are, and how the product is serviced after the sale. • “All departments of the company must strive to improve the quality of their operations.” Total Quality Management - Spring 2010

48. Understanding and building the quality chains • Meeting the customer requirements within the organization. • Failure (QC manager and others) • Failure not doing it right the first time at every stage of the process. • Throughout and beyond all organizations -manufacturing & service- there is a series of quality chains of customer and supplier. • Quality chains may be broken at any point, customer not satisfied. Total Quality Management - Spring 2010

49. Understanding and building the quality chains • To achieve quality throughout an organization, each person in the quality chain must interrogate every interface as follows: Customers: who are my immediate customers? what are their true requirements? how can I measure my ability to meet the requirements? Suppliers: who are my immediate suppliers? what are my true requirements? Total Quality Management - Spring 2010

50. Understanding and building the quality chains • The concept of internal and external customers/suppliers forms the core of total quality. • Quality has to be managed – it will not just happen. • Failure to meet the requirements in any part of quality chain leads to yet more failure. • The price of quality is the continual examination of the requirements and our ability to meet them “continuing improvement” philosophy. Total Quality Management - Spring 2010