Introduction to TQM 1

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Unit 1

Introduction to TQM: Fundamentals of quality thinking and TQM. Understanding variation.

Control charts and statistical analysis.

TQM is an enhancement to the traditional way of doing business. It is the art of managing the

whole to achieve excellence. It is defined both a philosophy and a set of guiding principles that

represent the foundation of a continuously improving organization. It is the application of

quantitative methods and human resources to improve all the processes within an organization

and exceed customer needs now and in the future. It integrates fundamental management

techniques, existing improvement efforts, and technical tools under a disciplined approach.

Definitions of Quality

Conformance to specifications: How well a product or service meets the targets and tolerances

determined by its designers.

Fitness for use: A definition of quality that evaluates how well the product performs for its

intended use.

Value for price paid: Quality defined in terms of product or service usefulness for the price paid.

Support services: Quality defined in terms of the support provided after the product or service is

purchased.

Total Quality Management (TQM) is an enhancement to the traditional way of doing business.

It is a proven technique to guarantee survival in world-class competition. Only by changing the

actions of management will the culture and actions of an entire organization be transformed.

TQM is for the most part common sense. Analyzing the three words, we have

TotalMade up of the whole.

QualityDegree of excellence a product or service provides.

ManagementArt or manner of handling, controlling, or directing people etc.)

Therefore, TQM is the art of managing the whole to achieve excellence: The Golden Rule is a

simple but effective way to explain it: Do unto others as you would have them do unto you.


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Strategic and systematic approach. A critical part of the management of quality is thestrategic and systematic approach to achieving an organizations vision, mission, and

goals. This process, called strategic planning or strategic management, includes the

formulation of a strategic plan that integrates quality as a core component.

Continual improvement. A major thrust of TQM is continual process improvement.Continual improvement drives an organization to be both analytical and creative in

finding ways to become more competitive and more effective at meeting stakeholder

expectations.

Fact-based decision making. In order to know how well an organization is performing,data on performance measures are necessary. TQM requires that an organization

continually collect and analyze data in order to improve decision making accuracy,

achieve consensus, and allow prediction based on past history.

Communications. During times of organizational change, as well as part of day-to-dayoperation, effective communications plays a large part in maintaining morale and in

motivating employees at all levels. Communications involve strategies, method, and

timeliness.

These elements are considered so essential to TQM that many organizations define them, in

some format, as a set of core values and principles on which the organization is to operate.

The characteristics that are common to companies that successfully implement TQM in their

daily operations are listed here.

a) Strive for owner/customer satisfaction and employee satisfactionb) Strive for accident-free jobsitesc) Recognize that the owner/customer provides the revenue while the employees are

responsible for the profit

d) Recognize the need for measurement and fact-based decision makinge) Arrange for employees to become involved in helping the company improvef) Train extensivelyg) Work hard at improving communication inside and outside the companyh) Use teams of employees to improve processesi) Place a strong emphasis on the right kind of leadership, and provide supervisors with a

significant amount of leadership training

j) Involve subcontractors and suppliers, requiring them to adopt TQMk) Strive for continuous improvement


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Quality principles that successful TQM companies recognize

The quality principles that successful TQM companies recognize and attempt to continually

incorporate into their actions are the following:

People will produce quality goods and services when the meaning of quality is expresseddaily in their relations with their work, colleagues, and organization.

Inspection of the process is as important as inspection of the product. Qualityimprovement can be achieved by the workers closest to the process.

Each system with a certain degree of complexity has a probability of variation, which canbe understood by scientific methods.

Workers work in the system to improve the system; managers work on the system toimprove the system.

Total quality management is a strategic choice made by top management, and must beconsistently translated into guidelines provided to the whole organization.

Envision what you desire to be as an organization, but start working from where youactually are.

Studies have indicated that people like working on a quality-managed jobsite especiallydue to the cleaner site and safer place to work.

Accept the responsibility for quality. Establish datums for measurement. Use the principle of get it right, the first time, every time. Understand that quality is a journey, not a destination. It consists of steps that form a

process that is continuous.

Quality Tools

1. Cause-and-effect diagrams are charts that identify potential causes for particular qualityproblems. They are often called fishbone diagrams.


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2. A flowchart is a schematic diagram of the sequence of steps involved in an operation orprocess. It provides a visual tool that is easy to use and understand.

3.

A checklist is a list of common defects and the number of observed occurrences of thesedefects. It is a simple yet effective fact-finding tool that allows the worker to collect

specific information regarding the defects observed.

4. Control charts are used to evaluate whether a process is operating within expectationsrelative to some measured value such as weight, width, or volume. To evaluate whether

or not a process is in control, we regularly measure the variable of interest and plot it on a

control chart.


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5. Scatter diagrams are graphs that show how two variables are related to one another.They are particularly useful in detecting the amount of correlation, or the degree of linear

relationship, between two variables.

6. Pareto analysis is a technique used to identify quality problems based on their degree ofimportance. The logic behind Pareto analysis is that only a few quality problems are

important, whereas many others are not critical.

7. A histogram is a chart that shows the frequency distribution of observed values of avariable.


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Cost of quality

The reason quality has gained such prominence is that organizations have gained an

understanding of the high cost of poor quality. Quality affects all aspects of the organization and

has dramatic cost implications. The most obvious consequence occurs when poor quality creates


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dissatisfied customers and eventually leads to loss of business. However, quality has many other

costs, which can be divided into two categories. The first category consists of costs necessary for

achieving high quality, which are called quality control costs. These are of two types: prevention

costs and appraisal costs. The second category consists of the cost consequences of poor quality,

which are called quality failure costs. These include external failure costs and internal failure

costs.

These costs of quality are shown in Figure

The first two costs are incurred in the hope of preventing the second two. Prevention costs are all

costs incurred in the process of preventing poor quality from occurring. They include quality

planning costs, such as the costs of developing and implementing a quality plan. Also included

are the costs of product and process design, from collecting customer information to designing

processes that achieve conformance to specifications. Employee training in quality measurementis included as part of this cost, as well as the costs of maintaining records of information and data

related to quality.

Appraisal costs are incurred in the process of uncovering defects. They include the cost of

quality inspections, product testing, and performing audits to make sure that quality standards are

being met. Also included in this category are the costs of worker time spent measuring quality

and the cost of equipment used for quality appraisal.

Internal failure costs are associated with discovering poor product quality before the product

reaches the customer site. One type of internal failure cost is rework, which is the cost ofcorrecting the defective item. Sometimes the item is so defective that it cannot be corrected and

must be thrown away. This is called scrap, and its costs include all the material, labor, and

machine cost spent in producing the defective product.

Other types of internal failure costs include the cost of machine downtime due to failures in the

process and the costs of discounting defective items for salvage value.


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Why should teams use Control Charts?

Monitor process variation over time. Differentiate between special cause and common cause variation. Assess the effectiveness of changes to improve a process. Communicate how a process performed during a specific period.

What Is a Control Chart?

A statistical tool used to distinguish between process variation resulting from common causes

and variation resulting from special causes.

What are the types of Control Charts?

There are two main categories of Control Charts, those that display attribute data, and those that

display variables data.

Attribute Data: This category of Control Chart displays data that result from counting thenumber of occurrences or items in a single category of similar items or occurrences.

These count data may be expressed as pass/fail, yes/no, or presence/absence of a

defect.

Variables Data: This category of Control Chart displays values resulting from themeasurement of a continuous variable. Examples of variables data are elapsed time,

temperature, and radiation dose.

Data analysis done is represented in following types of charts:

a) X-Bar and R Chartb) Individual X and Moving Range Chart for Variables Datac) Individual X and Moving Range Chart for Attribute Datad) X-Bar and S Charte) Median X and R Chartf) c Chartg) u Charth) p Charti) np Chart


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What are the elements of a Control Chart?

Each Control Chart actually consists of two graphs, an upper and a lower, which

are described below under plotting areas. A Control Chart is made up of eight

elements.

1. Title. The title briefly describes the information which is displayed.

2. Legend. This is information on how and when the data were collected.

3. Data Collection Section. The counts or measurements are recorded in the data collection

section of the Control Chart prior to being graphed.

4. Plotting Areas. A Control Chart has two areasan upper graph and a lower graphwhere the

data is plotted.


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a. The upper graph plots either the individual values, in the case of an Individual X and Moving

Range chart, or the average (mean value) of the sample or subgroup in the case of an X-Bar and

R chart.

b. The lower graph plots the moving range for Individual X and Moving Range charts, or the

range of values found in the subgroups for X-Bar and R charts.

5. Vertical or Y-Axis. This axis reflects the magnitude of the data collected. The Y-axis shows

the scale of the measurement for variables data, or the count (frequency) or percentage of

occurrence of an event for attribute data.

6. Horizontal or X-Axis. This axis displays the chronological order in which the data were

collected.

7. Control Limits. Control limits are set at a distance of 3 sigma above and 3 sigma below the

centerline [Ref. 6, pp. 60-61]. They indicate variation from the centerline and are calculated by

using the actual values plotted on the Control Chart graphs.

8. Centerline. This line is drawn at the average or mean value of all the plotted data. The upper

and lower graphs each have a separate centerline


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What are the Benefits of TQM?

For Management For Employee

Provides an invaluable problem-solving tool formanagers and supervisors to use

Dispels negative attitudes Management becomes more aware of problems

that affect the individuals work environment

Employees gain a sense of participation Increases efficiency and productivity Reduces turnover rate, tardiness, costs, errors,

and scrap & rework

Improves communications within and among alldepartments

Develops management skills that were nevertaught, or are long forgotten due to lack of

application

Develops overall company awareness andcompany unity

Rearranges priorities which once seemed lockedin place

Builds loyalty to the company Reveals training requirements in all departments Lessens the number of defects received from

suppliers when they are encouraged to train in

quality management

Provides opportunity for personal growthand development (as a result of team

training activities) and the opportunity to

develop and present recommendations

Increases innovation (through a greatervariety of approaches and perspectives) forsolving problems, removing fear of failure

Employees use their knowledge and skillsto generate data-driven recommendations

that will lead to well-informed decision-

making

Encourages decision-making at the mostappropriate level

Increases motivation and acceptance ofnew ideas

Increases job satisfaction (as a result of theopportunity to participate in and have

influence over work)

Recognizes employees for theirknowledge, skills, and contribution toward

improvement

Develops mutual respect amongemployees, management and customers

Promotes teamwork


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Obstacles associated with TQM Implementation

Lack of management commitment Inability to change organizational culture Improper planning Lack of continuous training and education Incompatible organizational structure and isolated individuals and departments Ineffective measurement techniques and lack of access to data and results. Paying inadequate attention to internal and external customers. Inadequate use of empowerment and teamwork.

Introduction to TQM 1

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