airline

TOTAL QUALITY

MANAGEMENT

Instructor:

Umer Mukhtar

Mphil (TQM)

[email protected]

Room: F8 Extension: 165

DEFINING QUALITY

CONFORMANCE TO

SPECIFICATIONS

FITNESS FOR USE

VALUE FOR PRICE PAID

SUPPORT SERVICES

PSYCOLOGICAL

(EXPECTATIONS – ACTUAL

PERCEPTION)

Quality = Performance/Expectations

Quality perspectives

Everyone defines Quality based on their own perspective of it. Typical responses about the definition of quality would include:

1. Perfection2. Consistency3. Eliminating waste4. Speed of delivery5. Compliance with policies and procedures6. Doing it right the first time7. Delighting or pleasing customers8. Total customer satisfaction and service

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Quality perspectives

Judgmental perspective “Goodness of a product.” Shewhart’s transcendental definition of quality –

“absolute and universally recognizable, a mark of uncompromising standards and high achievement.”

Examples of products attributing to this image: Rolex watches, Lexus cars.

Product-based perspective “function of a specific, measurable variable and

that differences in quality reflect differences in quantity of some product attributes.”

Example: Quality and price perceived relationship.

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Quality perspectives

User-based perspective

“fitness for intended use.”

Individuals have different needs and wants, and hence different quality standards.

Example – Nissan offering ‘dud’ models in US markets under the brand name Datson which the US customer didn’t prefer.

Value-based perspective

“quality product is the one that is as useful as competing products and is sold at a lesser price.”

US auto market – Incentives offered by the Big Three are perceived to be compensation for lower quality.

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Quality perspectives

Manufacturing-based perspective

“the desirable outcome of a engineering

and manufacturing practice, or

conformance to specification.”

Engineering specifications are the key!

Example: Coca-cola – “quality is about

manufacturing a product that people can

depend on every time they reach for it.”

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Why QUALITY is Important

COST OF GOOD QUALITY

COST OF POOR QUALITY

PREVENTION & CURE

PROACTIVE & REACTIVE COST OF GOOD QUALITY - PREVENTION COST – COSTS

INCURRED IN THE PREVENTING POOR QUALITY FROM

OCCURING.

COST OF POOR QUALITY – QUALITY FAILURE COST –

APPRAISAL COST - COSTS INCURRED IN THE PROCESS OF

UNCOVERING DEFECTS

- INTERNAL FAILURE COST – EXTERNAL FAILURE COST

COST OF QUALITY

PREVENTION COSTS – COSTS OF PREPARING AND

IMPLIMENTING THE QUALITY PLAN

APPRAISAL COST – COSTS OF TESTING,

EVALUATING AND INSPECTION QUALITY

INTERNAL FAILURE COST – COST OF SCRAP,

REWORK, AND MATERIAL LOSSES

EXTERNAL FAILURE COST – COSTS OF FAILURE

AT CUSTOMER SITE INCLUDING RETURNS,

REPAIRS

Cost of Defects

What is TQM?

A comprehensive, organization-wide

effort to improve the quality of products

and services, applicable to all

PROCESSESS

MANAGEMENT of QUALITY in

TOTAL processes, functions, products,

services, departments of any Organization.

TOTAL QUALITY

MANAGEMENT TOTAL – MADE UP OF A WHOLE

QUALITY – DEGREE OF

EXCELLENCE A PRODUT OR

SERVICE PROVIDES

MANAGEMENT - ACT, HANDLING,

CONTROLLING.

Obstacles in TQM

Implementation Lack of Management Commitment

Inability to change Org. Culture

Improper Planning

Lack of continuous Training & Education

Incomplete Org. Structure & Isolated Individuals and Dept.

Lack of Measurement, Data, and access

Less attention to Internal & External Customers

Inadequate Use of empowerment and Teamwork

Failure to Continual Improve

TQM REQUIRE SIX BASIC

CONCEPTS

A COMMITTED & INVOLVED MANAGEMENT

FOCUS ON INTERNAL & EXTERNAL CUSTOMERS

EFFECTIVE INVOLVEMENT AND UTILIZATION OF RESOURCES

CONTINIOUS IMPROVEMENT

TREATING SUPPLIERS AS PARTNERS

ESTABLISH PERFORMANCE MEASURES

Evolution of TQM philosophies

The Deming Philosophy

Definition of quality, “A product or a

service possesses quality if it helps

somebody and enjoys a good and

sustainable market.”

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Improve quality Decrease cost because

of less rework, fewer

mistakes.

Productivity improves

Capture the market

with better quality

and reduced cost.

Stay in

business

Long-term

competitive

strength

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The Deming philosophy

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William Edwards Deming (October

14, 1900–December 20, 1993) was an

American statistician, college

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.

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14 points for management:

1. Create and publish to all employees a statement of the

aims and purposes of the company. The management

must demonstrate their commitment to this statement.

2. Learn the new philosophy.

3. Understand the purpose of inspection – to reduce the

cost and improve the processes.

4. End the practice of awarding business on the basis of

price tag alone.

5. Improve constantly and forever the system of

production and service.

THE DEMING PHILOSOPHY

The Deming philosophy

6. Institute training

7. Teach and institute leadership.

8. Drive out fear. Create an environment of innovation.

9. Optimize the team efforts towards the aims and purposes of the company.

10. Eliminate exhortations for the workforce.

11. Eliminate numerical quotas for production.

12. Remove the barriers that rob pride of workmanship.

13. Encourage learning and self-improvement.

14. Take action to accomplish the transformation.

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The Juran philosophy

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Joseph Moses Juran (December 24,

1904 – February 28, 2008) was a 20th

century management consultant who

is principally remembered as an

evangelist for quality and quality

management, writing several

influential books on these subjects.

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Pursue quality on two levels:1. The mission of the firm as a whole is to

achieve high product quality.2. The mission of each individual department

is to achieve high production quality.

Quality should be talked about in a language senior management understands: money (cost of poor quality).

At operational level, focus should be on conformance to specifications through elimination of defects- use of statistical methods.

The Juran philosophy

The Juran philosophy

Quality Trilogy –

1. Quality planning: Process of preparing to meet quality goals. Involves understanding customer needs and developing product features.

2. Quality control: Process of meeting quality goals during operations. Control parameters. Measuring the deviation and taking action.

3. Quality improvement: Process for breaking through to unprecedented levels of performance. Identify areas of improvement and get the right people to bring about the change.

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The Crosby philosophy

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Philip Bayard "Phil" Crosby, (June 18, 1926–August 18, 2001) was a businessman and author who contributed to management theory and quality management practices.

Crosby initiated the Zero Defectsprogram at the Martin CompanyOrlando, Florida plant. As the quality control manager of the Pershing missileprogram, Crosby was credited with a 25 percent reduction in the overall rejection rate and a 30 percent reduction in scrap costs.

Walter A. Shewhart

Walter A. Shewhart was a statistician at Bell Labs

during the1920s and 1930s. Shewhart studied

randomness and recognized that variability existed in

all manufacturing processes.

He developed quality control charts that are used to

identify whether the variability in the process is

random or due to an assignable cause, such as poor

workers or miscalibrated machinery.

He stressed that eliminating variability improves

quality. His work created the foundation for today’s

statistical process control, and he is often referred to

as the “grandfather of quality control.”

Quality Gurus’ Contributions

Customer Focus

The first, and overriding, feature of TQM is the company’s focus on its customers.

Quality is defined as meeting or exceeding customer expectations.

The goal is to first identify and then meet customer needs.

TQM recognizes that a perfectly produced product has little value if it is not what the customer wants. Therefore, we can say that quality is customer driven.

Continuous Improvement

Another concept of the TQM philosophy is the focus on continuous improvement.

Traditional systems operated on the assumption that once a company achieved a certain level of quality, it was successful and needed no further improvements.

We tend to think of improvement in terms of plateaus that are to be achieved, such as passing a certification test or reducing the number of defects to a certain level.

Continuous Improvement Traditionally, change for American managers involves

large magnitudes, such as major organizational restructuring.

The Japanese, on the other hand, believe that the best and most lasting changes come from gradual improvements. To use an analogy, they believe that it is better to take frequent small doses of medicine than to take one large dose.

Continuous improvement, called kaizen by the Japanese, requires that the company continually strive to be better through learning and problem solving.

Because we can never achieve perfection, we must always evaluate our performance and take measures to improve it.

Two approaches that can help companies with continuous improvement: the plan –do– study – act

Employee Empowerment

Part of the TQM philosophy is to empower all employees to seek out quality problems and correct them.

Elimination of Fear among employees

Full involvement in identification and resolving problem.

TQM, provides incentives for employees to identify quality problems. Employees are rewarded for uncovering quality problems, not punished.

Internal and External Customer concept.

Team Approach -- TQM stresses that quality is an organizational effort - Quality Circle

Quality Tools

Quality Tools

Product Design Quality Function Deployment : A critical aspect of

building quality into a product is to ensure that the product design meets customer expectations. This typically is not as easy as it seems. Customers often speak in everyday language. For example, a product can be described as “attractive,” “strong,” or “safe.”

Customer Requirements

Competitive Evaluation

Product Characteristics

The Relationship Matrix: The strength of the relationship between customer requirements and product characteristics is shown in the relationship matrix.

The Trade-off Matrix: You can see how the relationship matrix is beginning to look like a house.

Setting Targets: The last step in constructing the house of quality is to evaluate competitors’ products relative to the specific product characteristics and to set targets for our own product.

Process Management

According to TQM a quality product comes from a quality process. This means that quality should be built into the process.

Quality at the source is the belief that it is far better to uncover the source of quality problems and correct it than to discard defective items after production. If the source of the problem is not corrected, the problem will continue.

Example: If you are baking cookies you might find that some of the cookies are burned. Simply throwing away the burned cookies will not correct the problem.

the temperature setting may be too high; the pan may be curved, placing some

cookies closer to the heating element; or the oven may not be distributing heat evenly

Managing Supplier Quality

TQM views this practice as contributing to poor

quality and wasted time and cost. The

philosophy of TQM extends the concept of

quality to suppliers and ensures that they

engage in the same quality practices. If

suppliers meet preset quality standards,

materials do not have to be inspected upon

arrival.

Awards & Prizes

The Malcolm Baldrige National Quality Award was

established in 1987, when Congress passed the Malcolm

Baldrige National Quality Improvement Act.

The award is named after the former Secretary of Commerce,

Malcolm Baldrige, and is intended to reward and stimulate

quality initiatives.

The Deming Prize

The Deming Prize is a Japanese award given to companies to recognize their efforts in quality improvement. The award is named after W. Edwards Deming, who visited

Japan after World War II upon the request of Japanese industrial leaders and engineers.

While there, he gave a series of lectures on quality. The Japanese considered him such an important quality guru that they named the quality award after him.

Standards and Certifications Increases in international trade during

the 1980s created a need for the

development of universal standards of

quality.

Universal standards were seen as

necessary in order for companies to be

able to objectively document their

quality practices around the world.

Then in 1987 the International

Organization for Standardization (ISO)

published its first set of standards for

quality management called ISO 9000.

ISO 9000 Standards

ISO 9000:2000–Quality Management Systems–Fundamentals and Standards:

Provides the terminology and definitions used in the standards. It is the starting point for understanding the system of standards.

ISO 9001:2000–Quality Management Systems–Requirements: This is the standard used for the certification of a firm’s quality management system. It is used to demonstrate the conformity of quality management systems to meet customer requirements.

ISO 9004:2000–Quality Management Systems–Guidelines for Performance: Provides guidelines for establishing a quality management system. It focuses not only on meeting customer requirements but also on improving performance.

ISO 14000 Standards

The need for standardization of quality created an impetus for the development of other standards. In 1996 the International Standards Organization introduced standards for evaluating a company’s environmental responsibility. These standards, termed ISO 14000, focus on three major areas:

Management systems standards measure systems development and integration of environmental responsibility into the overall business.

Operations standards include the measurement of consumption of natural resources and energy.

Environmental systems standards measure emissions, effluents, and other waste systems.