TQM: Continuous Improvement By; Engr, Attaullah Shah

2. TQM: • Continuous Improvement • By; Engr, Attaullah Shah • BSc Engg ( Gold Medalist), MSc Engg ( Strs), MBA, MA ( Eco) • MSc Envir Design, PGD Computer Sc, PhD Scholar UET Taxila • Project Director Allama Iqbal Open University-Islamabad. • pdaiou@yahoo.ocm

3. SOME QUOTATIONS • God doesn't Change the Nation unless they have the will to change themselves- Holy Quran • He who rejects change is the architect of decay. The only human institution which rejects progress is the cemetery. ~Harold Wilson. • Carl Rogers said: The curious paradox is that when I accept myself just as I am, then I can change. • Change is the law of life. And those who look only to the past or present are certain to miss the future. John F. Kennedy • We must all obey the great law of change. It is the most powerful law of nature. Edmund Burke. • It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change. Charles Darwin.

4. Nature gives to every time and season some beauties of its own; and from morning to night, as from the cradle to the grave, it is but a succession of changes so gentle and easy that we can scarcely mark their progress. Charles Dickens. • You must be the change you wish to see in the world. Mahatma Gandhi. • To improve is to change; to be perfect is to change often. Winston Churchill • People can cry much easier than they can change. James Baldwin • To exist is to change, to change is to mature, to mature is to go on creating oneself endlessly Henri Bergson • When you‘ve finished changing, you're finished. Benjamin Franklin

5. DO you Know? What is Quality? What is TQM ? What is PDCA? What is the difference between Quality Assurance and TQM? What are the advantages of TQM for an organization?

6. 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.

7. The Scope of Total Quality Management Practices Continuous improvement And learning Customer focus Principles Participation and Teamwork Infrastructure Tools & Techniques

8. 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

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

10. Leadership • “Inventories can be managed, but people must be led”. • Their task is to create clear quality values & high expectations, & then build these in to the company operations.

11. Continuous Improvement Check Do Act Plan Quality level Time

12. Process Improvement Methodology (sequenced) (1 of 3) • Develop process improvement plan • Determine process or area to examine • Form and train Process/Quality Improvement Team • Use coarse tools • Process flowchart • Check sheets and histograms • Fishbone chart <--- • Pareto analysis --->

13. Process Improvement Methodology (sequenced) (2 of 3) • Use fine tools • Process control charts • Run diagrams • Scatter diagrams • Failsafing • Determine process changes • Implement pilot process improvement

14. Process Improvement Methodology (sequenced) (3 of 3) • Measure and evaluate results. • Repeat if results unsatisfactory; deploy full implementation if results satisfactory

15. The Seven QC Tools Flowcharts Check sheets Histograms Cause-and-effect diagrams Pareto diagrams Scatter diagrams Control charts +Runcharts Mod. SJSU Bus. 142 DAB 09/19/02

16. Flowcharts • Shows unexpected complexity, problem areas, redundancy, unnecessary loops, and where simplification may be possible • Compares and contrasts actual versus ideal flow of a process • Allows a team to reach agreement on process steps and identify activities that may impact performance • Serves as a training tool

17. Flowchart

18. Check Sheet • Creates easy-to-understand data • Builds, with each observation, a clearer picture of the facts • Forces agreement o the definition of each condition or event of interest • Makes patterns in the data become • obvious quickly

19. Histogram • Displays large amounts of data that are difficult to interpret in tabular form • Shows centering, variation, and shape • Illustrates the underlying distribution of the data • Provides useful information for predicting future performance • Helps to answer the question “Is the process capable of meeting requirements?

21. Cause and Effect Diagram • Enables a team to focus on the content of a problem, not on the history of the problem or differing personal interests of team members • Creates a snapshot of collective knowledge and consensus of a team; builds support for solutions • Focuses the team on causes, not symptoms Effect Cause

23. Pareto Diagram • The Pareto principle suggests that most effects come from relatively few causes. • In quantitative terms: 80% of the problems come from 20% of the causes (machines, raw materials, operators etc.); 80% of the wealth is owned by 20% of the people etc. • Therefore effort aimed at the right 20% can solve 80% of the problems. Double (back to back) Pareto charts can be used to compare 'before and after' situations. General use, to decide where to apply initial effort for maximum effect. • Helps a team focus on causes that have the greatest impact • Displays the relative importance of problems in a simple visual format. • Helps prevent “shifting the problem” where the solution removes some causes but worsens others

25. Scatter Diagram • Supplies the data to confirm a hypothesis that two variables are related • Provides both a visual and statistical means to test the strength of a relationship • Provides a good follow-up to cause and effect diagrams * * * * * *

26. Control Chart • Focuses attention on detecting and monitoring process variation over time • Distinguishes special from common causes of variation • Serves as a tool for on-going control • Provides a common language for discussion process performance * * * * * * *

27. Run Chart • Monitors performance of one or more processes over time to detect trends, shifts, or cycles • Allows a team to compare performance before and after implementation of a solution to measure its impact • Focuses attention on truly vital changes in the process * * * * * * *

29. ISO Certification System and TQM

30. WHAT IS ISO • Because "International Organization for Standardization" would have different abbreviations in different languages ("IOS" in English, "OIN" in French for Organisation internationale de normalisation), it was decided at the outset to use a word derived from the Greek isos, meaning "equal". Therefore, whatever the country, whatever the language, the short form of the organization's name is always ISO.

31. ISO QUALITY SYSTEM • ISO 9001:2000 Quality Management Systems - Requirements contains the general requirements for a quality management system. The standard is applicable to all companies including manufacturing and service providers.

32. ISO QUALITY SYSTEM • ISO 9000 is concerned with "quality management". This means what the organization does to enhance satisfaction by meeting customer and customer applicable regulatory requirements and continually to improve its performance in this regard.

33. ISO QUALITY SYSTEM • In the most recent revision (2000) the text was reworded for easier adaptation to a wider range of organizations. • Transition from ISO 9000-1994 to ISO 9000-2000 is simply merging of ISO 9001-1994,ISO 9002-1994, ISO 9003-1994 and ISO 9004-1994 to simply ISO 9001-2000.

34. ISO QUALITY SYSTEM • "Subcontractor" has been changed to "supplier". • "Supplier" now refers to the main organization seeking certification. • "Customer" remains unchanged.

35. ISO QUALITY SYSTEM • The standard has a new process-oriented structure. It includes a process model based on the Plan-Do-Check-Act cycle, which outlines the product and/or service cycle and the management control cycle.

36. ISO QUALITY SYSTEM • The old 20-point format has been replaced. • The text of the standard is now organized into five major auditable processes or Modules. A brief description is as follows.

37. ISO 9000 2000: Quality Management Principles • FOCUS ON YOUR CUSTOMERS ORGANIZATIONS RELY ON CUSTOMERS. THEREFORE: • ORGANIZATIONS MUST UNDERSTAND CUSTOMER NEEDS. • ORGANIZATIONS MUST MEET CUSTOMER REQUIREMENTS. • ORGANIZATIONS MUST EXCEED CUSTOMER EXPECTATIONS. • PROVIDE LEADERSHIP ORGANIZATIONS RELY ON LEADERS. THEREFORE: • LEADERS MUST ESTABLISH A UNITY OF PURPOSE AND SET THE DIRECTION THE ORGANIZATION SHOULD TAKE. • LEADERS MUST CREATE AN ENVIRONMENT THAT ENCOURAGES PEOPLE TO ACHIEVE THE ORGANIZATION'S OBJECTIVES

38. ISO 9000 2000 Quality Management Principles • INVOLVE YOUR PEOPLE ORGANIZATIONS RELY ON PEOPLE. THEREFORE: • ORGANIZATIONS MUST ENCOURAGE THE INVOLVEMENT OF PEOPLE AT ALL LEVELS. • ORGANIZATIONS MUST HELP PEOPLE TO DEVELOP AND USE THEIR ABILITIES. • USE A PROCESS APPROACH ORGANIZATIONS ARE MORE EFFICIENT AND EFFECTIVE THEN THEY USE A PROCESS APPROACH. THEREFORE: • ORGANIZATIONS MUST USE A PROCESS APPROACH TO MANAGE ACTIVITIES AND RELATED RESOURCES.

39. ISO 9000 2000 Quality Management Principles • TAKE A SYSTEMS APPROACH ORGANIZATIONS ARE MORE EFFICIENT AND EFFECTIVE WHEN THEY USE A SYSTEMS APPROACH. THEREFORE: • ORGANIZATIONS MUST IDENTIFY INTERRELATED PROCESSES AND TREAT THEM AS A SYSTEM. • ORGANIZATIONS MUST USE A SYSTEMS APPROACH TO MANAGE THEIR INTERRELATED PROCESSES. • ENCOURAGE CONTINUAL IMPROVEMENTORGANIZATIONS ARE MORE EFFICIENT AND EFFECTIVE WHEN THEY CONTINUALLY TRY TO IMPROVE. THEREFORE: • ORGANIZATIONS MUST MAKE A PERMANENT COMMITMENT TO CONTINUALLY IMPROVE THEIR OVERALL PERFORMANCE.

40. ISO 9000 2000 Quality Management Principles • GET THE FACTS BEFORE YOU DECIDE ORGANIZATIONS PERFORM BETTER WHEN THEIR DECISIONS ARE BASED ON FACTS. THEREFORE: • ORGANIZATIONS MUST BASE DECISIONS ON THE ANALYSIS OF FACTUAL INFORMATION AND DATA. • WORK WITH YOUR SUPPLIERS ORGANIZATIONS DEPEND ON THEIR SUPPLIERS TO HELP THEM CREATE VALUE. THEREFORE: • ORGANIZATIONS MUST MAINTAIN A MUTUALLY BENEFICIAL RELATIONSHIP WITH THEIR SUPPLIERS.

41. ISO QUALITY SYSTEM • Section 4. Quality Management System and its Continues Improvement • Section 5. Management Responsibility • Section 6. Resource Management • Section 7. Product Realization • Section 8. Measurement, Analysis, and Improvement

42. EIGHT QUALITY MANAGEMENT PRINCIPLES • Principle 1 Customer focus • Organizations depend on their customers and therefore should understand current and future customer needs, should meet customer requirements and strive to exceed customer expectations.

43. EIGHT QUALITY MANAGEMENT PRINCIPLES • Principle 2 Leadership • Leaders establish unity of purpose and direction of the organization. They should create and maintain the internal environment in which people can become fully involved in achieving the organization's objectives.

44. EIGHT QUALITY MANAGEMENT PRINCIPLES • Principle 3 Involvement of people • People at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organization's benefit.

45. EIGHT QUALITY MANAGEMENT PRINCIPLES • Principle 4 Process approach • A desired result is achieved more efficiently when activities and related resources are managed as a process.

46. EIGHT QUALITY MANAGEMENT PRINCIPLES • Principle 5 System approach to management • Identifying, understanding and managing interrelated processes as a system contributes to the organization's effectiveness and efficiency in achieving its objectives.

47. EIGHT QUALITY MANAGEMENT PRINCIPLES • Principle 6 Continual improvement • Continual improvement of the organization's overall performance should be a permanent objective of the organization.

48. EIGHT QUALITY MANAGEMENT PRINCIPLES • Principle 7 Factual approach to decision making • Effective decisions are based on the analysis of data and information

49. EIGHT QUALITY MANAGEMENT PRINCIPLES • Principle 8 Mutually beneficial supplier relationships • An organization and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value