T OTAL Q UALITY M ANAGEMENT

1. TOTAL QUALITY MANAGEMENT Engineering 7943: Production and Operations Management Total Quality Management

2. OUTLINE • Definition • History • Customer Satisfaction • Continuous Improvement of Performance • Employee Involvement • Implementation • Barriers • Benefits Total Quality Management

3. DEFINITION • Quantitative methods and human resources • Three elements • Customer satisfaction • Continuous improvement of performance • Employee involvement • Includes customers and employees Total Quality Management

4. HISTORY • Emerged from the quality movement • 1920s - 1930s: Shewhart’s Statistical Quality/Process Control • 1940s - 1960s: Deming and Juran • 1961: Feigenbaum, Total Quality Control • 1970s: Crosby, zero defects, quality is free • 1983: Feigenbaum, re-released Total Quality Control Total Quality Management

5. CUSTOMER SATISFACTION • Customer obsession • Number one priority • Experiencing the process • Management acting as consumer / customer • Profiling • Questionnaires • Surveys • Personal visits • Focus groups Total Quality Management

6. CUSTOMER SATISFACTION • Quality and reliability • Follow-up consultation • Kansei • Importance of value • Psychological impression • Websites • Availability • Delivery Total Quality Management

7. CONTINUOUSIMPROVEMENT • Japanese word kaizen, meaning incremental change • Use, Statistical Process Control and Quality Teams • USA-PDCA method Total Quality Management

8. UNDERSTAND (USA-PDCA) • Know customers, both internal and external • Know customer needs • Who are the customers of a process? • What products or services does the process supply? • What are the customer needs? • To what extend does the product or service meet customer expectations for quality? Total Quality Management

9. SELECT (USA-PDCA) • Identify discrepancies • Discrepancy if a product fails or exceeds expectations • Prioritize • Select Total Quality Management

10. ANALYZE (USA-PDCA) • Current State Analysis and Cause Analysis with flow charts and statistical quality control (SQC, similar to SPC) • SQC: control charts, histograms, scatter diagrams, pareto charts, fishbone diagrams, and check sheets Total Quality Management

11. PLAN(USA-PDCA) • PDCA cycle, begins when the cause of a variation has been identified; eliminate or emulate • Plan: Brainstorm, choose and develop a plan Total Quality Management

12. DO (USA-PDCA) • Carry out the plan • Can be done on experimental basis Total Quality Management

13. CHECK (USA-PDCA) • Use SPC to analyse performance • If not solved, loop back to the plan or analyze stage • If solved, move to the adopt phase Total Quality Management

14. ADOPT (USA-PDCA) • Implement the solution across the entire organization Total Quality Management

15. REPEAT • PDCA cycle may be repeated many times for an individual process • The USA process should be updated or repeated after major changes or time increments Total Quality Management

16. EMPLOYEE INVOLVEMENT • Foster employee ownership • Management system supportive of collaboration • Relying on quality at the source, not inspection • Employees involved in improving processes Total Quality Management

17. QUALITY TEAMS • Several volunteer employees responsible for a specific process • Undertake continuous improvement tasks, utilizing statistical process control to verify improvements • Recognise employees for contributions • Do not work well without managerial support or statistical process control Total Quality Management

18. SELF-MANAGED TEAMS • Hard to implement • Employees must be willing to take on more responsibility • If completed successfully, can be highly efficient Total Quality Management

19. SUGGESTION SYSTEM • Support of management and supervisors • Clear submission and rejection procedures • Reasons for rejecting made clear • Recognition when a suggestion is implemented Total Quality Management

20. IMPLEMENTATION • Requires systematic, integrated, consistent, organization wide approach • Determine specific changes necessary to create and maintain TQM • Requires a change in three dimensions • Physical methods (process , technology) • Culture (norms, values, beliefs) • Political System (decision making systems, power base) • TQM should be • purpose oriented • evolve from an organization's strategic plan • based on the expectations held by the customers Total Quality Management

21. IMPLEMENTATION (CONT’D) • Differs from one organization to the next • Common Aspects for TQM implementation: • Assessment of Current State • Determination and application of Plan of Action • Training • Quality of leadership is fundamental in facilitating change Total Quality Management

22. ASSESSMENT OF CURRENT STATE • Helps predict likelihood of successful implementation • Essential information regarding • Organization’s history • Current needs • Existing employee quality of life • Precipitating events leading up to TQM • Organization should be “basically healthy” before attempting TQM • Significant problems endanger success • unstable funding base • weak administrative systems • lack of managerial skills • poor employee morale • Level of stress on organization may be desirable to initiate TQM Total Quality Management

23. ACTION PLANNING • Method to determine and implement desired TQM changes • Involves entire organization • General steps for Action Planning • Define objective • Determine specific goals to support objective • Develop strategy • Determine and apply tactics and operations necessary for success • Integrate action into organization’s culture • Continuously collect data regarding improvement to ensure success of plan Total Quality Management

24. TRAINING • Comprehensive training program necessary to create and maintain TQM • Institutionalized in entire organization • Focuses on specific behaviors and skills required for TQM environment • Training begins with management and moves down through organization as necessary • Candidate list for TQM training include • Action Planning • Leadership • Team Building • Tools and Techniques Total Quality Management

25. ROLEOF MANAGEMENT • Leadership is key element in successful implementation of large-scale change • Leaders • Show need and set vision • Take a long-term perspective • Motivate others to stick with the process • Are persistent, using constant reinforcement • Leadership style should be participative • Leaders expect a long term process, including a transition period Total Quality Management

26. SUGGESTIONS • Don’t “Do TQM” • TQM should not exist as a separate entity of organization • Employees should be involved in decisions whenever possible • TQM should not have an end Total Quality Management

27. BARRIERS • Lack of management commitment • Inability to change organizational culture • Improper planning • Lack of continuous training and education • Incompatible organizational structure • Insufficient resources • Use of prepackaged program • Ineffective measurement techniques • Inadequate attention to customers • Inappropriate conditions for implementation • Inadequate use of teamwork Total Quality Management

28. BENEFITS • Customer satisfaction • Intangible and tangible • Product quality • Less waste and rework • Higher profits • Employee involvement • Training • Quality of life Total Quality Management