Total Quality Management(TQM) • The word “total” conveys the idea that all employees, throughout every function and level of organization, pursue quality. • The word “quality” suggests excellence in every aspect of the organization. • “Management” refers to the pursuit of quality results through a qualitymanagementprocess, including strategic, design, manufacturing, and finance processes.
Principles of TQM • The customer defines quality. • Top management must provide the leadership for quality • Quality is a strategic issue • All functions of the company must focus on continuous quality improvement • Quality problems are solved through cooperation among employees and management • Use statistical quality control methods in problem solving • Training and education of all employees are the basis for CQI.
Juran Trilogy Three aspects of quality managerial systems: • quality planning • quality control • quality improvement
Elements of Quality Systems • Policy, planning, organization, and administration • Product design assurance and specification development • Control of purchased materials and component parts • Production quality control and assurance • Customer contact • Corrective and preventive action • Employee selection, training, and motivation • Legal requirements - product liability and user safety • Sampling and other statistical techniques
Quality Policies • Mission statement outlines the specific need the firm’s product or service meets • Corporate policies (apply to everyone) • Departmental policies (not relevant to any other department worker) • Policies must be consistent with company’s strategy (buying from a low-cost bidder may be inconsistent with the strategy of high quality products)
Deming’s 14 Points for Management • Create and publish to all employees a statement of the aims and purposes • Adopt the new philosophy • Understand the purpose of inspection • End the practice of awarding business on the basis of price tag alone • Improve constantly the system of production and service • Institute training • Teach and institute leadership
Deming’s 14 Points (continued) • Drive out fear, create trust, create climate for innovation • Break down barriers between departments • Eliminate slogans , numerical quotas for production and other numerical goals • Remove barriers between employee and his/her supervisor • Encourage education and self-improvement • Take action to accomplish the transformation
Deming’s View of Production as a System Suppliers Test of Design and Consumer Materials materials redesign research Equipment distribution consumers A B Production, assembly, inspection C D Tests of processes, machines, methods, costs
Quality Cost Analysis • Prevention costs • Appraisal costs • Internal failure costs • External failure costs The major categories of cost as defined by the ASQ
Employee Selection, Training, Motivation Motivation programs: • zero defects • quality control circles • participative quality control • employee involvement
Legal Requirements • Product liability (examples: the Federal Meat Inspection Act of 1977, the Radiation Control for Health and Safety Act of 1968) • User safety (The Consumer Safety Commission - 1967)