TQM and Continuous Improvement

1. TQM and Continuous Improvement Dr. HusamArman Husam Arman

2. What is a SYSTEM A system is a group of related parts that works together to achieve a goal. The goal is whatever the system is supposed to do. Husam Arman

3. Classification of SYSTEMS Husam Arman

4. Subsystems A system can have many parts. Subsystems are smaller systems that are combined to produce larger systems. Example: System.... Computer Subsystems... Keyboard, disk drive, monitor, printer, etc Husam Arman

5. The Universal Systems Model The universal system model can be applied to all technological systems and to many natural systems. The first thing a system needs is a goal that describes the purpose of the system. All systems also have an input, process, and output. INPUT PROCESS OUTPUT Resources put into the system Combines resources What comes from the system Husam Arman

6. Input • Input includes anything that is put into system. The input comes from the resources. • A resource is anything that provides supplies or support for the system. • All technological systems requires input from 7 categories of resources. Husam Arman

7. Process • Process is a series of actions leading to an outcome. • Process transforms resources into product or service. • This is where resources are combined. INPUT PROCESS OUTPUT Husam Arman

8. Major Subsystems of Process INPUT PROCESS OUTPUT Managing Producing Planning Preprocessing Processing Organizing Controlling Postprocessing Husam Arman

9. Output Output is the result of a system. Example: Tv, computer, table, car, vegetables, meals.. Education, maintenance, catering.. All these outputs are planned and desirable. Waste materials are another kind of output produced by most systems. Therefore, companies want to reduce or eliminate waste. Undesirable outputs from production systems include air and water pollution, chemicals that are difficult to dispose of , and noise. Husam Arman

10. Feedback • Feedback occurs when information about the output of a system is sent back to the system. • Feedback can improve the performance of a system. INPUT PROCESS OUTPUT FEEDBACK FEEDBACK Husam Arman

11. Production Systems • The goal of a production system is to manufacture or construct products. • Clothes, appliances, books...Manufacturing • Building, road, bridge... Construction Two kinds of outputs could be produced: Good or Service Husam Arman

12. Total Quality Managementand Continuous Improvement • TQM is the management process used to make continuous improvements to all functions. • TQM represents an ongoing, continuous commitment to improvement. • The foundation of total quality is a management philosophy that supports meeting customer requirements through continuous improvement. Husam Arman

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

14. Quality Throughout • “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.” Husam Arman

15. The TQM System Objective Continuous improvement Principles Customer Focus Process Improvement Total Involvement Leadership Education and Training Supportive structure Communications Reward and recognition Measurement Elements Husam Arman

16. What’s the goal of TQM? “Do the right things right the first time, every time.” Husam Arman

17. Basic Tenets of TQM • 1. The customer makes the ultimate determination of quality. • 2. Top Management must provide leadership and support for all quality initiatives. • 3. Preventing variability is the key to producing high quality. • 4. Quality goals are a moving target, thereby requiring a commitment toward continuous improvement. • 5. Improving quality requires the establishment of effective metrics. We must speak with data and facts not just opinions. Husam Arman

18. Applications and Benefits of TQM • The paradigm of TQM applies to all enterprises: be in Manufacturing, Service, Information industries, Institutions, Government Organizations or Associations. • Wherever there is a customer at the end of the line, TQM is applicable and has been successfully applied globally. Husam Arman

19. Visible direct benefits • Greater customer loyalty and retention. • Improved market share and market standing. • Greater productivity and lower quality cost. • Higher profitability. • Reduced warranty cost. • Better business results and stock price. Husam Arman

20. Indirect benefits • A positive work culture throughout the organization. • Revitalized people and high employee morale • Transparent and flexible organization • Social respect Husam Arman

21. Characteristics of Goods • Tangible product • Consistent product definition • Production usually separate from consumption • Can be inventoried • Low customer interaction Husam Arman

22. Characteristics of Service • Intangible product • Produced & consumed at same time • Often unique • High customer interaction • Inconsistent product definition • Often knowledge-based Husam Arman

23. Quality attributes (manufacturing vs. service) • Manufacturing • Performance • Reliability & Consistency • Conformance to specifications • Durability • Serviceability • Features • Aesthetics • Perceived Quality • Service • Time to serve • Timeliness of the service • Competence of the service • Consistency • Courtesy • Responsiveness • Accuracy (first time right) • Convenience (easy to obtain) Husam Arman

24. Performance excellence Service quality Improved product designs Manufacturing quality Growth of Modern Quality Management Husam Arman

25. The Key Elements to develop TQM in organization Organizing • There is no ideal way of assuring the quality of an organization’s products or services. What matters is that improvement does occur, that it is cost-effective, and that it is never-ending. • There is no one best way of starting a process of continuous improvement which suits all organizations and cultures. • Senior management’s commitment is vital in order to gain credibility, assure continuity and establish longevity of the process. Husam Arman

26. The Key Elements to develop TQM in organization • Planning should have a 10-year horizon in order to ensure that the principles of TQM are firmly rooted in the culture of the organization. Patience and tenacity are key virtues. • Quality objectives and strategies must be developed and deployed down through the organizational hierarchy, along with agreeing goals for improvement. • The improvement process needs to be integrated with other organizational improvement initiatives and business strategies. Husam Arman

27. The Key Elements to develop TQM in organization • A multi-disciplinary TQM steering committee chaired by the chief executive must be established and appropriate infrastructure established to support the improvement process. It is important that this infrastructure is integrated into the existing structure. • At the outset the main quality problems must be identified and tackled by the senior management team – ‘lead by example’. Husam Arman

28. The Key Elements to develop TQM in organization Systems and techniques • The quality management system must be well documented, provide direction and feedback and be audited internally on a regular and effective basis. • The day-to-day control and assurance activity must be separated from the improvement process. • There must be a dedication to removing basic causes of errors and wastage. • At the design stage all potential non-conformances must be identified and eliminated. • A system by which all staff can raise those problems which prevent them turning in an error-free performance should be in place. Husam Arman

29. The Key Elements to develop TQM in organization Systems and techniques • It should be recognized that tools, techniques, systems, and packages are used at different stages in different organizations in their development of TQM. • The timing of the introduction of a particular tool, technique, system or package is crucial to its success. • Mistake-proofing of operations should be investigated. • Statistical methods should be used Husam Arman

30. The Key Elements to develop TQM in organization Measurement and feedback • It should be recognized that customer satisfaction is a business issue and that all processes should work towards satisfying the customer. • All available means must be used to determine customer requirements and develop systems and procedures to assess conformance. • It should be easy for the internal and external customer to complain and there is appropriate feedback. • The attitude that ‘the next process/person is the customer’ must be encouraged. • Measures of customer satisfaction and quality indicators for all internal departments must be developed. Husam Arman

31. The Key Elements to develop TQM in organization Changing the culture • All aspects of customer and supplier relationships should be developed, improved and assessed on a regular basis. • Teamwork must be practiced at all levels. • People must be involved at all stages of the improvement process, and not simply in those aspects which directly affect their role. • Education and training should be continuous and widespread, in order to foster changes in attitudes and behavior and to improve the skills base of the organization. • Recognize that change is continuous and must be embedded in the culture of the organization. Husam Arman