Transcript
Total Quality Management
Agenda
Quality, Evolution of quality management & gurus TQM
What, Why Concepts – Cost of quality, QFD, Benchmarking, Concurrent
Engineering Tools – 7 quality tools, 7 management tools Team issues Case: Punjab Tractors Benefits of TQM, Sins of TQM Other quality initiatives Future of TQM
What is Quality?
Is a product’s or service’s ability to satisfy the needs and expectations of the customer
Quality is “fitness for use” - Joseph Juran
Quality is “conformance to requirements” - Philip Crosby
Edward Deming Deming’s 14 points Constantly improve people, processes and products and services Focus on long term needs than short term profits Abolish MBO and Performance Appraisal
Philip Crosby Conformance and non-conformance rather than low or high
quality Zero defect program - do it right, first time, every time. Cost of quality < 2.5% of sales, reduce through prevention Quality policy statement
Joseph Juran Quality planning, quality control, quality improvement – Juran
Trilogy
Quality Gurus
• William Conway3 categories of waste – time, material, capital
• Kaoru Ishikawa
Quality Circles (QC), Ishikawa Diagram (Fishbone Diagram)
• Walter A. ShewartConcepts of SQC
Germ Theory of Management- elimination of the virus of variability.
• Genichi TaguchiDesign of Experiments
Quality Gurus…
TQM
Quality Assurance
Quality Control
Inspection Salvage, sorting, grading, blending, corrective actions,
identify sources of non-conformance
Develop quality manual, process performance data, self-inspection, product testing, basic quality planning, use of basic statistics, paperwork control.
Quality systems development, advanced quality planning, comprehensive quality manuals, use of quality costs, involvement of non-production operations, failure mode and effects analysis, SPC.
Policy deployment, involve supplier & customers, involve all operations, process management, performance measurement,
teamwork, employee involvement.
Evolution of Quality Management
Management by fact
Results Focus
Passion to deliver customer
value
Concern for employee
involvement and development
Organisation response ability
Actions not just words
(implementation)
Partnership perspective
(internal/external)
What is TQM?
Constant drive for continuous
improvement and learning.
Process Management
Why TQM?
So that the whole organisation works towards world-class standards.
Addresses issues ranging from management of quality at the suppliers' end to the way the finished products are delivered to the customers.
Does not focus on the measurement of results; it focuses on the management of the processes and the measures used.
In recent times, even the process of business strategy is included in TQM.
Institutionalization of TQM
Top management is vital to the success of TQM implementation.
Personal leadership and example is very important; managers need to apply TQM in their daily work and get the people to think about and use the concepts and tools.
TQM must be built into systems processes that involve planning and rewards. become an invisible part of the ongoing belief system of the
organization. be preceded by a cultural change
Cost of Quality
Cost of Cost of Cost of lost
Conformance Non-Conformance Opportunities Cancellation of Orders
Cost of Cost of Cost of Cost of Cost of
Prevention Appraisal Internal External Exceeding
Training, Inspection, Failure Failure RequirementsQC, QA Checking, Scrap, Warranty, Redundant
Audits Rework Installation, Documenting
Service Costs
Cost of Quality
Total Cost of Quality
Cost of Lost Opportunities
Cost of Exceeding Requirements
Prevention Cost
Appraisal Cost
Prevention Costs
Time
Cost
TQM Concepts
Links customer needs with design, development, engineering, manufacturing and services.
Major TQM tool which is system and process oriented.
Achieve and display the results in the common matrix diagram presenting one set of ideas against those of another, thereby evaluating their relationships.
QFD
Understanding & satisfying Customer requirements
Maximizing positive Quality that adds value
Quality systems thinking + Knowledge
Quality Function Deployment
Competitive Assessment
Action Ranking Technical Importance
Competitive Benchmark
Absolute Relative
Objective Target Values
What
How much
Relationship Matrix
How
CorrelationMatrix
Design RequirementsCustomer
Requirements
Customer Rating
COMPETITIVE
ASSESSMENTS
Relative Importance
Benchmarking
Comparison process to continuously identify the best business practices anywhere and adopt them to the organization.
Valuable TQM tool which accomplishes objectives of customer satisfaction and continuous improvement.
Motivates an organization & fosters a new in-depth understanding about the functioning of the organization.
Reduces cycle time as small or big tasks get done faster. Constantly redefines standards which must be achieved to
remain competitive. Increases productivity.
PLAN
INTEGRATE
IMPLEMENT
ANALYZE
•Management commitment•Resource commitment
•Develop plan
•Develop process measure
•Measure
•Data identification
•Target Companies
•Site visits
•Gather Data
•Convert gap to targets and operational goals
• Convert goals to action plans
• Implement improvement
Deming Wheel applied to benchmarking
Concurrent Engineering
Process in which appropriate disciplines are committed to work interactively to conceive, approve, develop and implement product programs that meet pre-determined objectives .
Re-unites technical and non technical disciplines such as engineering, marketing and accounting, focusing on satisfying the customer, the representatives work together in defining the product to be manufactured.
CE team must be backed by fundamental training on TQM. One of the prime motivations for a concurrent engineering
approach to product development is a desire to shorten the total time that it takes to bring a product to the marketplace.
Concurrent Engineering…
Some Quality Tools of TQM
Flow ChartsRun ChartsHistogramsControl Charts (Statistical Process Control)
Brainstorming and related toolsFishbone DiagramPareto Chart
Flow Charts
13
12
11
10
9
8
0 2 4 6 8 10 12 14
Run Charts
Upper Control Limit (UCL)
TIME
M
E
A
S
U
R
E
M
E
N
T
Lower Control Limit (LCL)
Control Charts
Cause & Effect Diagrams…
100
80
60
40
20
0
56
1018
781
Cumulative %
% offaults
Causes
Pareto Charts
Team Roles and Responsibilities
Mission of TQM process improvement teams
Defining the process in detailEliminating unnecessary activitiesDeveloping measures of performanceEstablishing performance baselinesSetting improvement goals and changing the
processes to meet them
TQM Teams
Composition of team Core members should represent key process activities Sometimes include process supplier and process customer
Team Training Just in Time Training - learning is immediately reinforced through
application 7 QC tools, 7 Management tools, Benchmarking, Quality Function
Deployment, Concurrent Engineering Central productivity or TQM departments for communications,
facilitation and training; key middle managers trained.
TQM and Six Sigma…
Both work best with strong internal sponsorship from senior management.
Cultural change in the adopting organisation is a positive by-product of both methodologies.
Both use statistical methods for measurement and control. They rely on data - not opinion - to justify change.
Both value the people working within systems, who ultimately drive quality. Both establish the customer (whether internal or external) as the final arbiter of quality.
Problem prevention, not mere detection, is the aim for both TQM and Six Sigma.
References
T.J. Cartin, Principles & Practices of TQM
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