TOTAL QUALITY MANAGEMENT Prof. (Dr.) Satish Ailawadi. FUNDAMENTAL CONCEPTS OF TQM. Total quality management is both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization.
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FUNDAMENTAL CONCEPTS OF TQM • Total quality management is both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization. • Encompasses mobilizing the entire organization to satisfy the demands of the customers. • TQM is focused on routine involvement and participation of everyone in the organization in the systematic improvement of quality. • It involves each individual and group within all parts of the organization.
TQM provides a way of life to constantly improve performance at every level and at in every activity, by creating a positive environment for continuous improvement based on • Team work • Trust and Respect • Examining the processes in a systematic manner • Application of quantitative methods and analytic techniques
Deming’s Chain Reaction Decrease costs due to less rework, fewer mistakes, fewer delays and snags, and better use of time and materials Improve quality Improve productivity Capture the market with better quality and lower prices Stay in business Provide steady jobs and more jobs.
A shift from traditional approaches to quality • TOTAL QUALITY MANAGEMENT • Involvement of all employees, customers and suppliers - Empowered employees • Teamwork - Quality strategy based upon a common mission and vision • Process oriented QUALITY ASSURANCE -Quality systems (ISO 9000) -Quality planning - Quality policy - Quality costing - Problem solving • QUALITY CONTROL • Quality standards -Statistical quality techniques • Process performance -Treating quality problems INSPECTION -Error detection - Rectification
TQM can be perceived as being concerned with the following • Meeting the needs and expectations of customers. • Covering all parts of the organization • Examining all costs which are related to quality • Doing things right the first time i.e. quality designing rather than inspecting. • Developing the systems and procedures which support quality and improvements • Developing a continuous process of improvement
Kaizen Philosophy • TQM concerns incremental and ongoing improvement of yourself, your work, and your organization. • The Kaizen philosophy is imbedded in the TQM concept and encompasses the continuous and gradual improvement of all employees in the organization. • Leads to improvement in employees’ personal output on a daily basis
Important Kaizen Rules • Work with and according to guidelines • Problems are opportunities for improvements • Retrieve information where it happens • Consider the facts • Work according to the plan • Avoid waste • Order and neatness • Keep appointments
Deming Wheel- focal point in Kaizen Approach • In the Kaizen approach “Deming Wheel” is central, consisting of a cycle of activities necessary for effective quality improvement. • The cycle consists of Plan, Do, Check, and Act. • Plan • Define the problem, analyze the causes and draft an action plan for solving the problem. • Determine the quality objectives, and critical success factors. • Define performance indicators, collect and analyze the process data, generate the possible solutions. • Select the most feasible solution and work it out.
2. Do • Implement the plan on a limited scale or conduct an experiment to test the proposed improvement. • Train all involved employees in the use of quality improvement methods and techniques. • Describe the process which is considered for improvement and form project teams to lead the process. 3. Check • Evaluate the trial project with performance indicators. • Verify whether the improvement has been successful. • What have we learnt?
4. Act • Implement proven improvements. • The improvements are documented in standard procedures so all employees involved are well informed on how to handle in future. • Usually the cycle gets repeated under different circumstance and conditions to test how consistent the results are. ACT PLAN CHECK DO
Quality Principles • Customer focus and customer involvement • Employees regularly visit their customers. • Customers are known and understood • Customers’ needs are integrated in the activities. • More is being done than the customer expects • Satisfied customers are priority number one. • Changing customer needs are systematically collected and lead to improvement.
B. Involvement of all employees • Voluntary total involvement of everyone. • Teamwork that leverage the knowledge and provides synergy based on open communication, respect and trust. • Skills are developed on the basis of “Learning by doing”. • Decisions on the basis of consensus. • The present situation is open for discussion. • Investing in knowledge. • Empowered employees • Entrepreneurial approach and leadership skills at all business levels.
C. Consistency of purpose • An inspiring mission and vision is developed and communicated to all organizational levels. • SMART- goals are formulated and preserved.(Specific, Measurable, Achievable, Realistic, and Time specific). • Managers are consistent in their behaviour regarding these goals. • Guidance is given to quality improvement process. • There is commitment at top management.
D. Act according to facts • Work according to facts and not based on rumours or feelings. • The causes and consequences of problems are analyzed according to “measuring is knowing”. • Goal oriented data is gathered and interpreted accordingly. • Measurements are based on figures; verify everything with data. • Quality costs are analyzed.
E. Process oriented • Internal customers are also satisfied. • The process is more important than the results; address the means of work accomplishment and not the outcomes. • The effectiveness of process is measured. • The output is standardized. • The processes are documented in schemes and standard working procedures. • Suppliers are regarded as partners and long term relationships are established. • The TQM culture is expanded to suppliers. • Reduction of process variations occurs continuously.
F. Focus on continuous improvement. • Employees improve themselves and their work and help others improve themselves and their organization. • Problems are regarded as a means for improvement and a chance to improve processes. • Emphasis on problem prevention instead of correction. • Improvements are based on cross-functional, structured, and holistic approach, and are continuously documented.
Multidisciplinary improvement teams are established. • There is a working climate in which continuous improvement is a way of life. • Improvement of whole and not just the parts.
Total quality management is a common method to improve the whole organization stepwise, structured and systematically according to hard work, discipline, intensive training, and consistent implementation of techniques and resources. • The quality principles form the foundation of TQM and are expressed in the four pillars of the TQM-house, namely • Problem solving Discipline • Interpersonal skills • Teamwork • Quality improvement process.
Total Quality Management Problem solving discipline Interpersonal Skills. Teamwork Quality improvement process Employee involvement, Structured, Stepwise, Discipline, Consistency.
The success of TQM improves proportionately in conjunction with the percentage of employees within the organization who master this quality attitude, mentality, and skills, • TQM covers all parts of the organization. • For an organization to be truly effective, every single part of it, each department, each activity, each person and each level must work properly together, because every person and every activity affects and in turn is affected by others.
What is Quality? • Degree to which a set of inherent characteristics fulfills requirements. • Many of us tend to equate quality with lluxury and expense. • If asked to rank, for quality • A Rolls Royce • A Formula One racing car or • A compact family saloon • Most people would choose the Rolls Royce as possessing the highest quality of the three.
To use the definition of quality given earlier and to arrive at a ranking decision we need to examine another definition of quality “Grade”. • Grade is defined as “category or rank given to given to different quality requirements for objects having the same functional use”. • For example, classes of airline ticket or categories of hotels. • When planning the quality requirement for an object, the grade for quality requirement must be known.
The examples of Rolls Royce, Formula One racing car and a compact family car have very different functional uses and it becomes necessary to compare each one of them with vehicles having the same functional use. • This promotes an alternative definition of Quality as “Fitness for Purpose”. • The problems this raises are ‘Who is to judge the fitness for purpose”? • Should it be the customer? • Should it be the manufacturer or provider of service? • Should it be an independent auditor? • Fitness for Purpose provides an element of subjectivity.
Working effectively to achieve quality • A common agreement is required on what quality means. • It does not mean that all products need to be “gold plated’. • It does not mean when buying a family saloon car that all luxuries of a Rolls Royce need to be built into achieve quality. • The basic quality objective is to provide products and services that meets the needs of the customers.
Individuals, based on their experience with the products, form an opinion about quality. • From varying ideas and suggestions for defining quality one idea becomes clear in all cases-the need for customer satisfaction. • The multitude of suggestions make it appear that quality is a moving target and is difficult to achieve. • In fact, it is not so.
Quality is “Conformance to Specifications” • Conformity is ‘Fulfillment of a requirement” • The Rolls Royce that meets all its specified requirements is a quality product. • The family saloon that meets all its specified requirements is equally a quality product. • Dr. Deming defines quality as the need to “provide customers with what they need, when they need it and at a higher perceived value and lower cost than anyone else.
Prevention rather than detection to achieve quality • Traditional methods include inspection, tests, audits to detect errors and eliminating them by scrapping or reworking products to conform to specification. • This system of appraisal is commonly categorized as “Quality Control”. • Inspection is the king. • During late 1950s and early 1960s the principle of achieving quality by inspecting-out reject products was challenged.
It was realized that quality is inherent within the product and cannot be introduced once the product is made. • The philosophy of “prevention rather than detection” provides the opportunity for eliminating the potential for error. • It involves identifying opportunities for error and taking actions to eliminate those opportunities before a problem arises. • It results in the contemporary quality expression of “Quality Assurance- Right First Time”
Prerequisites of TQM and Possible Actions 1. Know your customers, both external and internal: • Who they are, their current needs, and their future requirements. • Respond to their changing needs. • Do not forget the users. 1.1 Possible Actions • Customer surveys • Functional analysis • Quality cost analysis • Quality function deployment
Know your competitors 2.1 Possible Actions • Customer surveys • Competitor analysis • Bench marking 3. Know the cost of non-conformance (CONC) 3.1 Possible Actions • Quality cost analysis • Functional analysis 4. Measure performance against key customer driven parameters 4.1 Possible Actions • Customer surveys • Competitor analysis • Bench marking
5. Make sure that each employee understands and commits themselves to the quality objectives of the business. 5.1 Possible Actions • Functional analysis • Education and training • Communication 6. Management commitment to the continual improvement of quality within the business.
6.1 Possible Actions • Quality cost analysis • Functional analysis • Education and training • Communication. 7. Define the purpose of each department and activity in terms of satisfying external and internal customer requirements. 7.1 Possible Actions - Functional analysis
8. Enable the employees to fulfill their commitment to quality by influencing the programme of continuous improvement. 8.1 Possible Actions • Education and training • Communication • Corrective action task force, corrective actions group. • Error cause removal schemes. • Quality circles • Problem solving
Statistical process control • Recognition of performance • Suggestion programmes • Self inspection programmes. 9. Wherever possible replace the inspection and correction techniques of quality control with effective preventive actions. 9.1 Possible Actions • Quality cost analysis • Functional analysis
Quality Management Systems • Error Cause removal schemes • Quality Circles • Problem solving • Suggestion programmes. • Never accept a non-conforming output in the form of a product for external or internal customer. 10.1 Possible Actions • Quality Cost Analysis
Functional Analysis • Education and Training • Communication. 11. Plan effectively before undertaking any actions. 11.1 Possible Actions • Quality Improvement Team → Apparently, there is no end to improvement. • The recognition of the necessity to continuously revise the quality thinking is essential to the ultimate success of business venture.
5 S of Housekeeping • Housekeeping is given a lot of importance in the total quality management system. • It reduces the wastage of time and improves the efficiency and effectiveness of work. • Improper housekeeping may lead to accidents, dull working environment and other work related problems.
Seiri- Orderliness • The orderliness of manufacturing aids, proper arrangement of raw materials near the machines and keeping the files and drawings in order to make working fast, effective and efficient without wastage of the effort or time and material. 2. Seiso- Clarity • The clarity of work process, flow process charts, arrangement of raw materials, finished goods and intermediary services make the work place more efficient and effective.
3. Seiton-Tidiness • Tidiness ensures adequate space for machines and movement of manpower is made easy. • Tidiness avoids mixing of different materials and it makes product identification easy. • The chances of rejection and rework gets minimized. 4. Seiketsu • The cleanliness of the shop floor and the office are mandatory for good working environment, good product quality and elimination of accidents.
This also helps an organization to put up a decent appearance of the organization before the visitors. 5. Shitsuke-Discipline • Recommends discipline in all the four housekeeping practices together to enhance the effectiveness of housekeeping. • It ultimately leads to the self discipline of the organization.
Total Quality Management Pioneers 1.Walter Shewart • Founder of P-D-C-A Cycle • Originator of statistical process control at AT&T Bell Labs in 1930. 2. W.Edward Deming • Led quality revolution in Japan during the post-world war II period. • Quality is a key competitive advantage. • Deming quality award by Japan is the most prestigious quality award.
Deming’s fourteen points for excellence. • Deming’s seven diseases. 3. Joseph M.Juran • Led quality revolution in Japan during the post-world War II period. • He defined quality as fitness for use by customer. • Juran’s triology of quality, quality control, and quality improvement. • Started Juran’s Institute in USA. • Introduced cost of poor quality.
4. Philip B. Crosby • Started Crosby quality college. • Created the concept of ‘zero defect’. • Defined quality as conformance to requirement. • Crosby’s 14 steps of quality improvement. 5. A.V. Feigenbaum • Originator of QM concept • His theory of three steps to quality • Quality leadership, modern quality technology and organizational commitment.
6. Taiichi Ohno • Formulated the flexible manufacturing systems (FMS) • Father of the just-in-time and kanban manufacturing. • Father of TPS or Toyota Production System. 7. Sheigo Shingo • Originator of ‘Single minute exchange of dies” • Introducing the concept of modular manufacturing.
8. Kaoru Ishikawa • Originator of fish bone or the cause and effect diagramme. • Originator of Company Wide Quality Control (CWQC). • Responsible for initial deployment of quality circles. • Remove the root cause and not the systems. 9. Masaaki Imai • Popularized the Kaizen concept of continuous improvement. 10. E.Goldrat • Theory of constraints
Deming’s 14 points to reach World Class Performance Standards • Achieve constancy of purpose • Top management must define the organization’s vision, mission and objective with the constancy of purpose . • The goal integration between the organization and individuals working there is extremely important for individuals to give their best for the achievement of the organizational objectives.
2. Learn a new philosophy • Challenge the status-quo. • Today’s management is learning, unlearning and relearning that is relevant to the organization. • The speed and frequency with which the organization and its employees learn new philosophy decide its growth rate and market leadership. 3. Do not depend on mass inspection (Use statistical sampling technique). • Emphasizes heavy deployment of statistical techniques in the area of inspection.