Part One The Foundations – A Model for TQM

1. Part OneThe Foundations – A Model for TQM Week # 3 Quality Gurus, Models, & Awards 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. Guru’s of TQM • Walter. A. Shewhart - PDSA • W. Edwards Deming- 14 Points & PDCA • Joseph .M . Juran - Juran’s Trilogy • A. Feiganbaum-Customer requirement, CWQC, Employee Involvement, TQC. • Kaoru Ishikawa-Disciple of Juran & Feigenbaum. TQC in Japan, SPC, Cause &Effect Diagram,QC. • Philips.B.Crosby. Four Absolutes-Quality-Req, Prevention of NC,Zero Defects & Measure of NC. • Taguchi.G-Loss Function. Total Quality Management - Spring 2010

3. Walter A Shewhart • Pioneer of modern quality control • “founder of the control chart” (e.g. X-bar and R chart). • originator of the plan-do-check-act cycle. • perhaps the first to successfully integrate statistics, engineering, and economics. • defined quality in terms of objective and subjective quality • objective quality: quality of a thing independent of people. • subjective quality: quality is relative to how people perceive it. (value) Total Quality Management - Spring 2010

4. W Edwards Deming (1900-1993)the key to quality: reducing variation • regarded by the Japanese as the chief architect of their industrial success • quality is about people, not products • having a satisfied customer is not enough • profit in business comes from • repeat customers • customers that boast about your product and service • customers that bring friends with them • necessary to anticipate customer needs Total Quality Management - Spring 2010

5. Deming • Reduction in process variability by extensive use of statistics will lead to improvement in quality and increase in productivity • “all processes are vulnerable to loss of quality through variation: if levels of variation are managed, they can be decreased and quality raised” • Talked about New Climate (organisational culture) • Joy in work • Innovation • Co-operation • Win-Win approach • He proposed a 14 point TQM programme Total Quality Management - Spring 2010

6. Deming 14 Points Total Quality Management - Spring 2010

7. W E Deming – PDCA Cycle Total Quality Management - Spring 2010

8. The Deming Cycle or PDCA Cycle PLAN Plan a change to the process. Predict the effect this change will have and plan how the effects will be measured ACT DO Adopt the change as a permanent modification to the process, or abandon it. Implement the change on a small scale and measure the effects STUDY Study the results to learn what effect the change had, if any. Total Quality Management - Spring 2010

9. PDSA cycle- seven steps or phases • Identify the opportunity • Analyze the current process • Develop the optimal solution(s) • Implement changes • Study the results • Standardize the solution • Plan for the future. Total Quality Management - Spring 2010

10. Phase I Identify the Opportunity Phase 7 Plan for the future Phase 2 Analyze the process Plan Act Do Phase 6 Standardize the solution Study Phase 3 Develop the optimal solution(s) Phase 4 Implementation Phase 5 Study the results Continuous Process Improvement cycle Phase 4 Implementation Phae 5 Study the results Total Quality Management - Spring 2010

11. Deming - Seven Deadly Sins • Lack of vision and mission as regards quality & process improvement • Emphasis on short term profit • Personal performance appraisal systems • Mobility of management • Running a company on visible figures alone • Customer satisfaction level • Employee morale • Relationship with your vendors • Confidence the market has in your company • Excess non-productive expenditure • Excessive cost of warranty Total Quality Management - Spring 2010

12. Deming’s System of Profound Knowledge • Appreciation for a system • Most organizational processes are cross-functional • Parts of a system must work together • Every system must have a purpose • Management must optimize the system as a whole • Understanding variation • Many sources of uncontrollable variation exist in any process • Excessive variation results in product failures, unhappy customers, and unnecessary costs • Statistical methods can be used to identify and quantify variation to help understand it and lead to improvements Total Quality Management - Spring 2010

13. Deming’s System of Profound Knowledge • Theory of knowledge • Knowledge is not possible without theory • Experience alone does not establish a theory, it only describes • Theory shows cause-and-effect relationships that can be used for prediction • Psychology • People are motivated intrinsically and extrinsically • Fear is demotivating • Managers should develop pride and joy in work Total Quality Management - Spring 2010

14. Deming’s Chain Reaction Improve Quality Provide jobs and more jobs Cost decreases because of less rework, fewer mistakes, fewer delays, snags, better use of machine time and materials Stay in business Productivity improves Capture the market with better quality and lower price Total Quality Management - Spring 2010

15. Joseph Juran • structure CWQM concept: Company-Wide Quality Management • essential for senior managers to • involve themselves • define the goals • assign responsibilities • measure progress • Involvement of people within Quality • Placed emphasis on training process supervision and operators • Primary focus to reduce Cost of Quality Total Quality Management - Spring 2010

16. J M Juran • Quality does not just happen but has to be planned, Developed the idea of trilogy • Quality Planning • Quality Improvement • Quality Control • Conformance to specifications is necessary but not sufficient requirement of a product. • Fitness for use by the consumer of the targeted market segment is an essential requirement in addition to conformance Total Quality Management - Spring 2010

17. J M Juran • Quality PLANNING consists of: • Identifying customers and their needs • Establishing optimum quality goals • Creating measurements of quality • Plan to meet quality goals under operating conditions • Produce continuing results • Juran suggests a 10 point plan Total Quality Management - Spring 2010

18. Juran’s 10 Points • Build awareness of need and opportunities for improvement • Set goals for improvement • Organise the overall improvement programme • Provide the training • solve problems through project methodology • Report progress • Give recognition • Communicate results • Keep score • Institutionalise the improvement process Total Quality Management - Spring 2010

19. Philip Crosby • Do it right the first time • Zero Defects • First to popularize Quality for top management • Absolutes of QM • Quality is defined as conformance to requirements, not as 'goodness' or 'elegance' • The system for causing quality is prevention, not appraisal – Quality is Free • The performance standard must be Zero Defects, not "that's close enough" • The measurement of quality is the Price of Non-conformance. • Cost of quality is only the measure of operational performance Total Quality Management - Spring 2010

20. Philip Crosby • Management Commitment: Top Management must be convinced of the need for quality and must clearly communicate this to the entire company by written policy, stating that the person is expected to person is expected to perform according to the requirement or cause the requirement to be officially changed to what the company and the customers really need. • Quality Improvement Team: form a team composed of departmental heads to oversee improvements in their departments and in the company as a whole. • Quality Measurement: Establish measurement s appropriate to every activity in order to identify areas in need of improvement. • Cost of Quality: Estimate the costs of quality in order to identify areas where improvements would be profitable. Total Quality Management - Spring 2010

21. Philip Crosby • Quality awareness: raise quality awareness among employees. They must understand the importance of product conformance and the costs of non-conformance. • Corrective Action: Take corrective action as a result of steps 3 and 4. • Zero Defects Planning: Form a committee to plan a program appropriate to the company and its culture. • Supervisor’s Training: All levels of managements must be trained in how to implement their part of the quality improvement program. Total Quality Management - Spring 2010

22. Philip Crosby • Zero Defects Day: Schedule a day as a signal to employees that the company has a new standard. • Goal Setting: Individuals must establish improvement goals for themselves and their groups. • Errors Cause Removal: Employees should be encouraged to inform management of any problem that prevents them from performing error free network. • Recognition. Give public recognition, nonfinancial appreciation, to those who meet their quality goals or perform outstandingly. • Quality Councils. Composed of Quality professional and team chairpersons, quality council should meet regularly to share experiences, problems and ideas. • Do It All Over Again: Repeat steps 1 to 13 in order to emphasize the never-ending process of quality improvement. Total Quality Management - Spring 2010

23. Cost of Quality • Prevention Cost • Cost associated with time spend in planning the quality system • Consists of the following • Process control costs • Information systems costs • Training Costs • General Management cost Total Quality Management - Spring 2010

24. Cost of Quality • Appraisal Costs • Cost incurred on measurement & analysis of data in order to detect & correct problems • Consist of • Cost of maintaining, testing & inspection • Process control costs • Internal Failure Cost • Incurred due to non-conformance • Include • Scrap and rework costs • Cost of corrective action • Downgrading costs Total Quality Management - Spring 2010

25. Cost of Quality • External Failure Cost • Occur when poor products reach customer • Include • Costs of customer complaints and returns • Product recall costs • Warranty claims costs • Product liability costs Total Quality Management - Spring 2010

26. Feigenbaum • Build it in at an earlier stage of the process. • Armand Feigenbaum, like Deming and Juran, Achieved visibility through his work with the Japanese. • Unlike the latter two, he used a total quality control approach that may very well be the forerunner of today’s TQM. • He promoted a system for integrating efforts to develop, maintain, and improve quality by various groups in an organization. • To do otherwise, according to Feigebaum, would be to inspect for and control quality after the fact rather than Total Quality Management - Spring 2010

27. Ishikawa Ishikawa is considered as Japan’s leading figure in the area of Total Quality Management. His inspiration came from the work of Deming and Juran and, to a lesser extent, Feigenbaum. He is well respected for the following contributions: • Quality Control Circles-he was the first to introduce this concept and to have put it into practice successfully; • He is the originator of Fishbone Diagrams or Ishikawa Diagrams which are now used worldwide in continuous improvement to represent cause-effect analysis; • Ishikawa has commented that Feigenbaum approach to Total Quality Control includes many non-specialists and therefore the input on quality problem solving may be limited.

28. Ishikawa • Developed several tools and techniques for application • Ishikawa cause and effect diagram • Defined the seven basic tools of quality management • Simplified statistical techniques for QC • Company wide quality control • quality does not only mean the quality of product, but also of after sales service, quality of management, the company itself and the human life

29. QUALITY CIRCLES A quality circle is a group of employees from the same work area and doing similar type of work voluntarily meet for an hour periodically either every week or fortnightly to identify and analyze • Quality of work they perform • Working conditions The common number of employees for a quality circle group is about 8-10 individuals. Pre-Requisites for successful quality circles • Members of Quality circles must have prior training in problem solving • Top management support/attitude • Actual implementation to be pre-ceded by carefully developed plan for maximum returns. Total Quality Management - Spring 2010

30. Organization 8-10 members Same area Supervisor/moderator Training Group processes Data collection Problem analysis Presentation Implementation Monitoring Problem Identification List alternatives Consensus Brainstorming Solution Problem results Problem Analysis Cause and effect Data collection and analysis Quality Circles Total Quality Management - Spring 2010

31. Cause and effect Diagram • The cause and effect diagram is an investigative tool. This is also called Ishikawa Diagram. Because of its shape, the diagram is also termed as Fishbone Diagram. • There is a systematic arrangement of all possible causes which give rise to the effect in Ishikawa diagram. Before taking up problem for a detailed study, it is necessary to list down all possible causes through a brainstorming session so that no important cause is missed. The causes are then divided into major sources or variables. Total Quality Management - Spring 2010

32. Ishikawa Diagram Total Quality Management - Spring 2010

33. Cause-and-Effect Diagram Method People Wrong Jobs assigned Manual Work Lack Training Price setting not proper Products not as per customer’s requirements Fault in setting Price very high Ill maintained Faulty material Material Machines Total Quality Management - Spring 2010

34. Measurement Human Machines Faulty testing equipment Out of adjustment Poor supervision Tooling problems Incorrect specifications Lack of concentration Improper methods Old / worn Inadequate training Quality Problem Inaccurate temperature control Defective from vendor Poor process design Ineffective quality management Not to specifications Dust and Dirt Deficiencies in product design Material- handling problems Environment Materials Process Cause-and-Effect Diagram Total Quality Management - Spring 2010

35. Ishikawa Diagram • Diagrams which show the causes of a certain event • Three sets of causes • 6 M’s (Production) • Machine • Method • Maintenance • Manpower • Management • Materials • 8 Ps (Services) • Price • Promotion • People • Process • Place/Plant • Policies • Procedures • Product (or Service) • 4 Ss (Services) • Surroundings • Suppliers • Systems • Skills Total Quality Management - Spring 2010

36. Kaoru Ishikawa (points 1-7 of 15) • product quality is improved and becomes uniform. Defects are reduced • reliability of goods is improved • cost is reduced • quantity of production is increased,rational production schedules are possible • wasteful work and rework are reduced • technique is established and improved • inspection and testing costs are reduced Total Quality Management - Spring 2010

37. Kaoru Ishikawa (points 8-15 of 15) • rational contracts between vendor/vendee • sales market is enlarged • better relationships between departments • false data and reports are reduced • freer, more democratic discussions • smoother operation of meetings • more rational repairs and installation • improved human relations Total Quality Management - Spring 2010

38. Taguchi • Developed concept of the ‘Loss Function’ • A quality product is a product that causes a minimal loss (expressed in money!) to society during it's entire life. The relation between this loss and the technical characteristics is expressed by the loss function • Deviation from target value causes losses • Internal - increased cost of manufacture, increased cost of supply • External - Customer dissatisfaction, warranty costs, loss of reputation & ultimately loss of market • Taguchi implies that Design has a vital Quality function • His methodologies held ensure customer satisfaction Total Quality Management - Spring 2010

39. Imai • Known for the development of ‘Kaizen philosophy (1986) • Focus of improvement activities to the factory shop floor

40. Shigeo Shingo • “Fool-Proofing” or “Poke-Yoke” • Source Inspection systems • No statistical sampling is necessary • Zero defects through good engineering and process investigation rather than slogans and exhortations • Poka-Yoke: mistake-proofing • identify errors before they become defects • stop the process whenever a defect occurs, define the source and prevent recurrence • 1967: source inspection + improved PY • prevented the worker from making errorsso that defects could not occur • Zero Quality Control Total Quality Management - Spring 2010

41. Yoshio Kondo (b.1924)motivation of employees is important • Emphasised inter-relationship between quality and people • Creativity – joy of thinking • Physical activity – joy of working • Sociality – joy of sharing pleasure and pain with colleagues • leadership is central to implementation of TQM Total Quality Management - Spring 2010

42. Yoshio Kondo • Four points of action to support motivation • when giving work instruction, clarify the true aims of the work • see that people have a strong sense of responsibility towards their work • give time for the creation of ideas • nurture ideas and bring them to fruition Total Quality Management - Spring 2010

43. Yoshio Kondo • Leaders must have • a dream (vision and shared goals) • strength of will and tenacity of purpose • ability to win the support of followers • ability to do more than their followers, without interfering when they can do it alone • successes • ability to give the right advice Total Quality Management - Spring 2010

44. Review of Main Ideas of the Quality Guru • W. E. Deming - introduced concepts of variation to the Japanese and also a systematic approach to problem solving, which later became know as the Deming, PDCA or PDSA cycle. Also given 14 points and has summarized his 70 years experience in his System of Profound Knowledge. • Juran – Quality does not happen by accident, it must be planned, and quality planning is part of the trilogy of planning, control and improvement. There is no shortcuts to quality Total Quality Management - Spring 2010

45. Review of Main Ideas of the Quality Guru • Philip Crosby – ‘DO it right first time’ and ‘Zero defects’. He based his quality improvement approach on four absolutes of quality management, the cost of quality and quality improvement process. • Kaoru Ishikawa’s – 1) 7 tools of Quality Control, 2) Company Wide Quality Control (CWQC), 3) Quality Circle Movement. • Shiegeo Shingo – Poka-Yoke system to ensure ‘zero-defects’ in production by preventive measures. Total Quality Management - Spring 2010

46. Review of Main Ideas of the Quality Guru • Yoshio Kondo – identifies that quality is more compatible with human nature than cost and productivity. He developed a four point approach to motivation which makes it possible for work to be reborn as a creative activity. • Taiichi Ohno – JIT (Just-in-time), Lean Manufacturing, Seven form of WASTE (MUDA) Total Quality Management - Spring 2010

47. Key Contributors to Quality Management

48. Quality Awards Baldrige Award Deming Prize Total Quality Management - Spring 2010

49. Malcolm Baldrige National Quality Award • MBNQA is given by United States National Institute of Standards and Technology • Original stated purpose of the award were • promote quality awareness • recognise quality achievements of the US companies • publicise successful quality strategies • Current award criteria are stated • To help improve organizational performance practices, capabilities and results • To facilitate communication and sharing of the best practice information among US organizations of all types • To serve as a working tool for understanding and managing performance and for guiding planning and opportunities for learning Total Quality Management - Spring 2010

50. Malcolm Baldrige National Quality AwardMain Categories (Total 1000 points) 1.0 Leadership (125 points) 2.0 Strategic Planning (85 points) 3.0 Customer and Market Focus (85 points) 4.0 Information and Analysis (85 points) 5.0 Human Resource Focus (85 points) 6.0 Process Management (85 points) 7.0 Business Results (450 points) Total Quality Management - Spring 2010