Introduction To “Total Quality Management” - TQM. Course Instructor: Memoona Masood Afridi Lecture 1. T otal Q uality M anagement. A Simplistic View of Total Quality Management.
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Introduction To “Total Quality Management” - TQM Course Instructor: Memoona Masood Afridi Lecture 1
Total Quality Management A Simplistic View of Total Quality Management Total= Everyone in the organization is responsible for quality.Quality= “Those product features which meet the needs of customers and thereby provide product satisfaction." or "freedom from deficiencies.“Management= Management is a cycle of planning, doing, studying, and acting. All processes undergo the same cycle of management.TQM=Total Quality Management (TQM) is a business management strategy aimed at embedding awareness of quality in all organizational processes.
TQM – Advantages Total Quality Management (TQM) is a system of principles, methods, and best practices that provide a framework for organizations to strive for excellence in everything they do. Today business, government, and other fields are implementing Total Quality Management (TQM) as their management philosophy. TQM techniques result in every member of the team working together to attain the department's objectives. Total Quality Management (TQM) is a leadership practice that has a positive impact on the entire work environment. Effective leaders build a solid foundation that allows them to develop truly committed employees with high morale and improved performance. Because Total Quality Management provides employees with opportunities for participation, problem solving, and teamwork, it creates a level of motivation within each employee. Benefits of Implementing Total Quality Management “best practices” To the customer – improved quality To the employee – increased satisfaction To the organization – better performance
TQM – Advantages • By the end of this course, you will be able to: • Discuss the primary concepts of Total Quality Management • Define the major benefits to the organization of Total Quality Management • Describe TQM techniques for measuring and improving quality • Gain the information and skills needed to implement total quality practices • Describe how TQM can be introduced into their work place • Integrate the fundamentals of TQM into the organization's business model • Implement the best practices of world-class TQM organizations • Identify useful quality improvement techniques
TQM - History The history of TQM starts with Elton Mayo’s Hawthorne experiments from 1927 through 1932. These experiments showed that workers participation in decision making improves productivity. 1940s TQM History - In the 1940’s US was in World War II. WWII pushed standardization, statistical control, and best manufacturing practices. 1950s History of Total Quality Management - In the 1950s Edward Deming taught statistical methods and Dr Juran taught quality management techniques to the Japanese. In 1954 Abraham Maslow created a pyramid of self actualization needs. In terms of work productivity, the lower levels of needs must be met prior to employees for performing at higher levels. 1960s TQM History - In the 1960s Douglas McGregor formed the Theory X and Theory Y leadership models.
TQM - History 1970s History of TQM - In 1968 the Japanese shaped the phrase Total Quality Control. TQC is a company wide quality control philosophy. This philosophy drove Japan to the world quality leader in the 1970s. 1980s History of TQM – Many companies adopted TQM during the 80s. TQM spread like wild fire. Many companies saw significant gains in productivity. However several companies started the program and failed miserably because they weren't willing to change. 1990s History of Total Quality Management – In the 1990s' TQM evolved. Experts introduce new methods that supported TQM. These include Lean Manufacturing and Six Sigma. Organizations could now become certified to ISO 9001 2000s History of Total Quality Management – In the 2000s, ISO revised ISO 9001 to focus more on business planning, quality management and continuous improvement. Other certification standards were created including AS9100 for aerospace, TS16949 for automotive, ISO 14001 for environmental, TL9000 for electronics, and ISO 17025 for laboratories. These standards all include the ISO 9001 elements.
TQM – Models – Edwards Deming William Edwards Deming was an American statistician, professor, author, lecturer, and consultant. Deming is widely credited with improving production in the United States during World War II, although he is perhaps best known for his work in Japan. There, from 1950 onward he taught top management how to improve design (and thus service), product quality, testing and sales through various methods, including the application of statistical methods Deming Chain Reaction Approach Improve Quality Costs decrease Productivity improves Capture the market Stay in the business Provide Jobs & more jobs
TQM – Models – Edwards Deming • One of TQM models is Deming total quality management philosophy " famous 14 Points " • Dr. Deming is credited with providing the foundation of the Japanese quality miracle. He • developed the following 14 points for managing the improvement of quality, productivity, and • competitive position: • Create constancy of purpose for improving products and services. • 2. Adopt the new philosophy. • 3. Cease dependence on inspection to achieve quality. • 4. End the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier. • 5. Improve constantly and forever every process for planning, production, and service. • 6. Institute training on the job. • 7. Adopt and institute leadership.
TQM – Models – Edwards Deming 8. Drive out fear. 9. Break down barriers between staff areas. 10. Eliminate slogans and targets for the workforce. 11. Eliminate numerical quotas for the workforce and numerical goals for management. 12. Remove barriers that rob people of pride in their work. 13. Institute a dynamic program of education and self-improvement for everyone. 14. Put everybody in the company to work to accomplish the transformation.
TQM – Models – Joseph Juran Joseph Juran is an internationally acclaimed quality guru, strongly influencing Japanese manufacturing practices. Joseph Juran’s belief that “quality does not happen by accident” gave rise to the quality trilogy:
TQM – Models – Joseph Juran The key steps in implementing company-wide strategic goals are: Identify customers and their needs – both internal and external – and work to meet those needs Create measures of quality, establish optimal quality goals and organize to meet them. Create processes capable of meeting quality goals in “real” operating conditions. In the 1980’s Joseph Juran recognized that the common approach to total quality management - quality awareness campaigns and slogans - was not effective as they did not have substance, and there is no short cut to quality. He believes quality must start at the top, irritating senior managers who believe training is for junior workers.
TQM – Models – Philip Crosby • Philip Crosby's name is best known in relations to the concepts of Do It Right First time • andZero Defects. He considers traditional quality control, acceptable quality limits and • waivers of sub-standard products to represent failure rather than assurance of success. • Crosby therefore defines quality as conformance to the requirements which the company • itself has established for its products based directly on its customers' needs. • In the Crosby approach the Quality Improvement message is spread by creating a core of • quality specialists within the company. There is strong emphasis on the top-down approach, • since he believes that senior management is entirely responsible for quality. • Crosby's Quality Improvement Process is based upon the Four Absolutes of Quality • Management: • Quality is defined as conformance to requirements, not as 'goodness' or 'elegance'. • The system for causing quality is prevention, not appraisal. • The performance standard must be Zero Defects, not "that's close enough". • The measurement of quality is the Price of Nonconformance, not indices.
TQM – Models – Philip Crosby • Philip Crosby's program has 14 points: • Management Commitment – Top management must become convinced of the need of quality • Quality improvement team – Form a team composed of departmental heads to oversee improvement in their dept. and in the company as a whole • Quality Measure – Establish measurements appropriate to every activity in order to identify areas of improvement • Cost of Quality evaluation – Estimate the costs of quality in order to identify areas where improvements would be profitable • Corrective action – Take corrective actions a s a result of step 3 & 4 • Quality awareness – Raise quality awareness among employees. They must understand the importance of product conformance and the costs of no- conformance • Establish an ad hoc committee for Zero defect program
TQM – Models – Philip Crosby • Supervisor training – All levels of management be trained in how to implement their part of the quality improvement program • Zero defect day in a year / month / week – Schedule a day to signal to employees that the company has a new standard • Goal setting – Individuals must establish improvement goals for themselves and heir groups • Error cause removal – Employees should encourage to inform management of any problem that prevents them from performing error free work • Recognition – Give appreciation to those employees who meet their quality goals • Quality councils - Composed of quality professionals. Quality councils should meet regularly to share experiences, problems and ideas • Do it over again – Repeat steps from 1 to 13 in order to emphasis the never-ending process of quality improvement
TQM – Models – McKinsey Business Process Reengineering – BRP is "the fundamental rethinking and radical redesign of business processes" that results in "dramatic improvements" especially in meeting customer needs and other external strategic demands. Using McKinsey's organizational model it was shown that a full BPR program impacts 6 of 7 of the organizational dimensions, and that it is driven by the 7th element, Strategy. Because McKinsey places Shared Values at the heart of an organization one can also infer, in particular, that a full BPR program will involve significant organizational culture change.