8/16/2019 PEC_ Lect_01_TQM http://slidepdf.com/reader/full/pec-lect01tqm 1/119 Total Quality Management Total Quality Management By By Ali Sajid, PhD Ali Sajid, PhD An Exclusive Presentation for PEC An Exclusive Presentation for PEC 29 29 th th Jan, 200Jan, 200
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!r Ali "a#i$, Ph!, T%,!r Ali "a#i$, Ph!, T%, is a graduate mechanical engris a graduate mechanical engrfrom UET, Lahore.from UET, Lahore.Masters and Ph.D. in Engg Mgment from the eorgeMasters and Ph.D. in Engg Mgment from the eorge!ashington Uni"ersity, !ashington D#, USA.!ashington Uni"ersity, !ashington D#, USA.
$S% & '((( #erti)ed Lead Auditor from BS$, U*.$S% & '((( #erti)ed Lead Auditor from BS$, U*. Taught in "arious US Uni"ersities + or-ed at the Taught in "arious US Uni"ersities + or-ed at the!orld Ban-, multi national and multi racial cor orate!orld Ban-, multi national and multi racial cor orateen"ironment of !ashington D.#.en"ironment of !ashington D.#.
Mem/er of American Society for 0ualityMem/er of American Society for 0ualityPa-istan Engineering #ouncil. Since last Si1teenPa-istan Engineering #ouncil. Since last Si1teenyears, he /een teaching at "arious Pa-istani + USyears, he /een teaching at "arious Pa-istani + USUni"ersities.Uni"ersities.Ad"isor to 2Planning #ommission, o"t of Pa-istan3Ad"isor to 2Planning #ommission, o"t of Pa-istan3
on T0M + Producti"ity.on T0M + Producti"ity.Areas of interest&Areas of interest&$ncreasing $ndustrial #om etiti"eness + Producti"ity$ncreasing $ndustrial #om etiti"eness + Producti"ityin !hite4Blue #ollar En"ironment, +in !hite4Blue #ollar En"ironment, +
A lication of 0uality Management in $ndustryA lication of 0uality Management in $ndustry
'ational level trainer(consultant&'ational level trainer(consultant&E1tensi"ely in"ol"ed in E1ecuti"e Training ofE1tensi"ely in"ol"ed in E1ecuti"e Training ofManagers at all le"el in the )led of Total 0ualityManagers at all le"el in the )led of Total 0uality
Management, Scienti)c Management, ProjectManagement, Scienti)c Management, ProjectManagement ,#om etiti"eness, Producti"ity,Management ,#om etiti"eness, Producti"ity,67D etc related to ics at all im ortant national67D etc related to ics at all im ortant nationalforum ith a "ie to enhance organi8ationalforum ith a "ie to enhance organi8ationale9ecti"eness of federal agencies and ri"atee9ecti"eness of federal agencies and ri"ateenter rises.enter rises.
o"t. of Pa-istan has recently conferred him itho"t. of Pa-istan has recently conferred him ithTamiga-a-Imtiaz.Tamiga-a-Imtiaz.
)oun$ing Chair*erson)oun$in
g Chair*erson De t of Engg Mgmt atDe t of Engg Mgmt at
#ASE and resently or-ing as Director Strategic#ASE and resently or-ing as Director StrategicA9airs, #ASE, $slama/ad.A9airs, #ASE, $slama/ad.:ounding Director of $slama/ad /ased $nstitute of:ounding Director of $slama/ad /ased $nstitute ofProfessional Trainers,Professional Trainers, +AM!A+AM!A ;Leadershi +;Leadershi +Management De"elo ment Associates<.Management De"elo ment Associates<.
The -ill to -in,The -ill to -in, the $esire to succee$,the $esire to succee$,the urge to reach yourthe urge to reach yourfull *otentials are thefull *otentials are the
#haracteristics of %rgani8ation#haracteristics of %rgani8ation
An organi8ation is a systematic arrangement ofAn organi8ation is a systematic arrangement ofeo le to accom lish some s eci)c ur ose.eo le to accom lish some s eci)c ur ose.
Each organi8ation has a distinct ur ose. ThisEach organi8ation has a distinct ur ose. Thisur ose is ty ically e1 ressed in terms of a goalur ose is ty ically e1 ressed in terms of a goal
4istory of Quality E3orts4isto ry of Quality E3ortsEgy tian Pharaohs ? Boo-s of Dead ? anEgy tian Pharaohs ? Boo-s of Dead ? an
e1tensi"ely documented ,0uality systeme1tensi"ely documented ,0uality systemrelated to the /urial of @o/ility, descri/esrelated to the /urial of @o/ility, descri/es
ho re uisite rituals should /e carriedho re uisite rituals should /e carriedout + funerary goods to /e /uried ithout + funerary goods to /e /uried ithdeceased.deceased.
4ummura i s Co$e4ummura i s Co$e ? C ( B# enalties? C ( B# enaltiesfor su/ standard stu9 for su/ standard stu9
'ecro*olis'ecro *olis ? Achie"ement of re uirement? Achie"ement of re uirementstandard as attested to /y thestandard as attested to /y thea lication /y su td mar-.a lication /y su td mar-.
7oman Em ire ?7oman Em ire ? External Au$it -as institute$External Au$it -as institute$+ S ecialists -no n as 2Argenterii3 sealers in+ S ecialists -no n as 2Argenterii3 sealers in
sil"ersil"er7e uired to -ee certain records.7e uired to -ee certain records.
>i le>i le & i"es /y or- of& i"es /y or- of Quality "ystem/Quality "ystem/ ..22An %unce of re"ention is orth a ound of cure3An %unce of re"ention is orth a ound of cure3
rocedures that had to /e follo ed.rocedures that had to /e follo ed.Enforcement is done /y an o cial ins ectorEnforcement is done /y an o cial ins ector
;Logothate< attached ith court to ins ect all;Logothate< attached ith court to ins ect allor-sho + % erations erformed.or-sho + % erations erformed.
Merchant <uil$Merchant <uil$ ? Their roducts ha"e to /e of? Their roducts ha"e to /e ofhi standards then others. #loth #olchesterhi standards then others. #loth #olchester
uild had mar- on its /ales and guaranteeuild had mar- on its /ales and guarantee
a certain le"el of uality.a certain le"el of uality.!efense an$ Quality L a close *artner!efense an$ Quality L a close *artner
<eo3rey Chaucer<eo3 rey Chaucer 88 ((s sur"eyor of((s sur"eyor ofsu lies for 7oyal !ardro/esu lies for 7oyal !ardro/e )ssessor of )rmors )ssessor of )rmors , Saddle. + other, Saddle. + other
e ui ment to esta/lishe ui ment to esta/lish "uita ility for"uita ilit y for;oyal Armory/;o yal Armory/ ..
=orl$ =ar ne=orl$ =ar ne & 20uality in Air3 ?& 20uality in Air3 ?7oyal Aircraft Esta/lishment7oyal Aircraft Esta/lishment
im ro"eim ro"e ;elia ility of >ritish Engines/;elia ilit y of >ritish Engines/ ..
:irst Standard Attem t in USA M$S&0&'FGF:irst Standard Attem t in USA M$S&0&'FGF;0 System S ecs<, M$L& HGI(F;0 System S ecs<, M$L& HGI(F;$ns ection Sys 7e uirements<;$ns ection Sys 7e uirements<Still Used in Defense #ontracts.Still Used in Defense #ontracts.
@AT% formed Allied 0uality Assurance@AT% formed Allied 0uality AssurancePu/lications ;A0AP< ,H,'Pu/lications ;A0AP< ,H,'
U* had its DE:. STA@ ;later A0AP alignedU* had its DE:. STA@ ;later A0AP alignedith DE:. STA@<.ith DE:. STA@<.
U* Min of Defense, /uy only from DE:.STA@U* Min of Defense, /uy only from DE:.STA@registered )rms ;Second Partyregistered )rms ;Second PartyAssessment<Assessment<
A0AP &militaristic in their content +A0AP &militaristic in their content + ordingording
79?98>" B?B079?98>" B?B0Jery Su/jecti"e, large e1 lanatory,Jery Su/jecti"e, large e1 lanatory,mandatory notes,mandatory notes,:irst "ersion used only:irst "ersion used onlyin a contractual sense /et een /uyer +in a contractual sense /et een /uyer +seller.seller.
rdrd Party certi)cation register.Party certi)cation register.British situation e1cited throughout orldBritish situation e1cited throughout orld$S% in ene"a set u a committee under$S% in ene"a set u a committee under#anada to roduce $ntl. 0&Standards.#anada to roduce $ntl. 0&Standards.
Any action directed to ardsAny action directed to ardsro"iding consumers ith roductsro"iding consumers ith roducts;goods + ser"ices< of a ro riate;goods + ser"ices< of a ro riate
All acti"ities of the o"erallAll acti"ities of the o"erallmanagement function thatmanagement function thatdetermine the uality olicy,determine the uality olicy,o/jecti"es and res onsi/ilitieso/jecti"es and res onsi/ilitiesand im lement lanning, ualityand im lement lanning, ualitycontrol, uality assurance andcontrol, uality assurance and
uality im ro"ement ithin theuality im ro"ement ithin theuality system3 ;$S% FH(<uality system3 ;$S% FH(<
Eliminating asteEliminating asteS eed of deli"eryS eed of deli"ery#om liance ith olicies + rocedures#om liance ith olicies + rocedures
Pro"iding good, usa/le roductsPro"iding good, usa/le roductsDoing it right the )rst timeDoing it right the )rst timeDelighting or leasing customersDelighting or leasing customers
Total customer ser"ice + satisfaction Total customer ser"ice + satisfaction
PerformanceFPerformanceF a roduct s rimary o eratinga roduct s rimary o eratingcharacteristics. E1am leN A car scharacteristics. E1am leN A car sacceleration, /ra-ing distance,acceleration, /ra-ing distance,steering and handlingsteering and handling
;elia ilityF;elia ilityF the ro/a/ility of a roduct sthe ro/a/ility of a roduct ssur"i"ing o"er a s eci)ed eriodsur"i"ing o"er a s eci)ed eriodof time under stated conditions ofof time under stated conditions ofuse. A car s a/ility to start on colduse. A car s a/ility to start on colddays and fre uency of failures aredays and fre uency of failures arerelia/ility factorsrelia/ility factors
!ura ilityF!ura ilityF the amount of use one gets fromthe amount of use one gets froma roduct /efore it hysicallya roduct /efore it hysicallydeteriorates or until re lacementdeteriorates or until re lacementis refera/le.is refera/le.:or car & corrosion resistance +:or car & corrosion resistance +long ear of u holstery fa/riclong ear of u holstery fa/ric
"ervicea ilityF"ervicea ilityFs eed, courtesy, com etence ofs eed, courtesy, com etence ofre air or-.re air or-.auto o ner &access to s areauto o ner &access to s are
AestheticsFAestheticsF ho a roduct loo-s, feels,ho a roduct loo-s, feels,sounds, tastes, or smells.sounds, tastes, or smells.car s color, instrument anelcar s color, instrument aneldesign and 2feel of road3 ?design and 2feel of road3 ?ma-e aesthetically leasingma-e aesthetically leasing
0uality #onformance to0uality #onformance tos eci)cationss eci)cations0uality is0uality is
a out manufacturing a *ro$ucta out manufacturing a *ro$uctthat *eo*le can $e*en$ on everythat *eo*le can $e*en$ on every
time they reach for it/time they reach for it/Achie"ed at #oca&#ola throughAchie"ed at #oca&#ola throughrigorous uality + ac-aging standardsrigorous uality + ac-aging standards
0uality su eriority or e1cellence0uality su eriority or e1cellence
<oo$ness of a *ro$uct/<oo$ness of a *ro$uct/ Kou #ust .no- it -hen you see Kou #ust .no- it -hen you seeit/it/
little ractical "alue to managerslittle ractical "alue to managers@o means through hich uality can@o means through hich uality can/e measured for decision ma-ing/e measured for decision ma-ing
0uality is a function of a s eci)c,0uality is a function of a s eci)c,measura/le "aria/lemeasura/le "aria/le6igher amount of roduct6igher amount of roductcharacteristics higher ualitycharacteristics higher uality0uality is mista-enly related to rice0uality is mista-enly related to rice6igher the rice, higher the uality6igher the rice, higher the uality;@ot necessarily true<;@ot necessarily true<
Denotes )rm s a/ility to achie"e mar-etDenotes )rm s a/ility to achie"e mar-etsu erioritysu eriority
Dri"en /y customer needs + antsDri"en /y customer needs + antsPro"idesPro"ides valuevalue to customers thatto customers thatcom etitors do not ha"ecom etitors do not ha"eMa-es signi)cant contri/ution toMa-es signi)cant contri/ution to/usiness success/usiness successAllo s a )rm to use its resourcesAllo s a )rm to use its resourcese9ecti"elye9ecti"ely
Dura/ility + de enda/ility ? di cultDura/ility + de enda/ility ? di cultfor others to co yfor others to co yPro"ides /asis for furtherPro"ides /asis for further
im ro"ementim ro"ementPro"ides direction +Pro"ides direction + motivationmotivation totothe organi8ationthe organi8ation
Total Quality $escri es the state of anTotal Quality $escri es the state of anorgani ation in -hich all the activities of allorgani ation in -hich all the activities of all
functions are $esigne$ an$ carrie$ out infunctions are $esigne$ an$ carrie$ out insuch a -ay thatsuch a -ay that
all external customer re uirements are metall external customer re uirements are met-hile re$ucing internal time an$ cost,-hile re$ucing internal time an$ cost,an$ enhancing the -or.*lace climate&an$ enhancing the -or.*lace climate&
Acti"ity in hichActi"ity in hichA com any is de"oted to customersA com any is de"oted to customersthrough its roducts and ser"ices.through its roducts and ser"ices.
;a< o/jecti"e, ractical, + uantitati"e as ects;a< o/jecti"e, ractical, + uantitati"e as ectsof management, e.g. :ocus on rocesses andof management, e.g. :ocus on rocesses andreliance on uantitati"e data and statisticalreliance on uantitati"e data and statisticalanalysis for decision&ma-ingN andanalysis for decision&ma-ingN and
;/< 2Soft3 as ects of management, ;Jisionary;/< 2Soft3 as ects of management, ;Jisionaryleadershi , romoting a s irit ofleadershi , romoting a s irit ofcoo eration4team or-, + racticingcoo eration4team or-, + racticing
artici ati"e mgt.artici ati"e mgt.A fully successful e9ort re uires /alancedA fully successful e9ort re uires /alanced
Means of im*lementing TQM&Means of im *lementing TQM&
#an /e used /y e"eryone to identifyN#an /e used /y e"eryone to identifyNPro lem Areas,Pro lem Areas ,"tructure !ata Collection"tructure !ata Collection e9orts,e9orts,Analy e $ata,Ana ly e $ata,)ocus Pro lem "olving)ocus Pro lem "olvin g e9orts one9orts onareas of s ecial concern.,areas of s ecial concern.,22!isseminate info/!isseminate info/ throughout thethroughout the
org.org.Used Primarily toNUsed Primarily toN Collect 1Collect 1Analy e 'umerical !ata/Ana ly e 'umerical !ata/ ..
Practices& $Practices& $ TQ $eman$s ne- styles of managing 1 anTQ $eman$s ne- styles of managing 1 anentirely ne- set of s.ills& These ne- stylesentirely ne- set of s.ills& These ne- stylesinclu$e the follo-ing characteristicsFinclu$e the follo-ing characteristicsF
Thin-ing in terms of systems Thin-ing in terms of systemsDe)ning customer re uirementsDe)ning customer re uirementsPlanning for uality im ro"ement ith eachPlanning for uality im ro"ement ith eachcustomercustomerDealing ith customer dissatisfactionDealing ith customer dissatisfactionEnsuring ongoing uality e9ortsEnsuring ongoing uality e9orts
De"elo ing a life long learning styleDe"elo ing a life long learning style Team /uilding Team /uildingEncouraging o ennessEncouraging o enness
organi ation from youorgani ation from youcustomers *oint ofcustomers *oint ofvie- an$ im*rovingvie- an$ im*roving*rocesses to ena le*rocesses to ena le
you to meet an$you to meet an$excee$ your customersexcee$ your customersex*ectations is the onlyex*ectations is the only-ay to achieve uality,-ay to achieve uality,
ecause uality isecause uality is$eGne$ the$eGne$ the
0uality is meeting0uality is meetingconformance standards.conformance standards.0uality is an intangi/le0uality is an intangi/legood.good.
0uality is meeting +0uality is meeting +e1ceeding customere1ceeding customere1 ectation.e1 ectation.0uality is de)ned /y the0uality is de)ned /y thecustomer.customer.
:inding and :i1ing ro/lems:inding and :i1ing ro/lems
results in im ro"ements,results in im ro"ements,hich may or may not /ehich may or may not /esustaina/le.sustaina/le.
Ma-ing changes to theMa-ing changes to the
system to re"ent ro/lemssystem to re"ent ro/lemsresults in sustaina/leresults in sustaina/leim ro"ements.im ro"ements.
E9ecti"eness + e ciencyE9ecti"eness + e ciencyare achie"ed /y meetingare achie"ed /y meeting
erformance.erformance. on )nancial erformance.on )nancial erformance.
Process im ro"ement isProcess im ro"ement ise1 ensi"e.e1 ensi"e.
Process im ro"ement leads toProcess im ro"ement leads tolo er costs.lo er costs.
%nly managers are ca a/le of%nly managers are ca a/le ofidentifying + ma-ingidentifying + ma-ing
!or-ers -no the rocess /est!or-ers -no the rocess /est+ ill suggest e1cellent ays to+ ill suggest e1cellent ays toim ro"e it hen gi"en aim ro"e it hen gi"en achance.chance.
Managers command functionsManagers command functions+ are concerned ith directing+ are concerned ith directing+ controlling.+ controlling.
Team leaders guide cross& Team leaders guide cross&functional im ro"ement teamsfunctional im ro"ement teams+ are concerned ith lanning+ are concerned ith lanning+ re"ention.+ re"ention.
Em loyees recei"e instruction +Em loyees recei"e instruction +information from a/o"e, asinformation from a/o"e, asdeemed a ro riate /ydeemed a ro riate /ymanagement.management.
Management sharesManagement sharesinformation ith em loyees oninformation ith em loyees ona routine /asis + on re uest.a routine /asis + on re uest.
Leadershi for an im ro"ementLeadershi for an im ro"emente9ort can /e delegated toe9ort can /e delegated tooutside e1 ert.outside e1 ert.
Leadershi for an im ro"ementLeadershi for an im ro"emente9ort is ro"ided /y e1ecuti"ese9ort is ro"ided /y e1ecuti"es
ithin the org, ho areithin the org, ho areaccounta/le for results.accounta/le for results.
7e"ie s are necessary only7e"ie s are necessary only 7egularly scheduled7egularly scheduled
Deming s DreadfulDeming s DreadfulDiseasesDiseases
.. Loo-ing else here forLoo-ing else here fore1am les, or concludinge1am les, or concludingthat 2our ro/lems arethat 2our ro/lems aredi9erent3.di9erent3.
D+ Q A**roachD+ Q A**roach$f a com any is so good in its /usiness and if it has$f a com any is so good in its /usiness and if it hasno crisis nor crisis consciousness, hat then couldno crisis nor crisis consciousness, hat then couldser"e as a dri"ing force for T0Mser"e as a dri"ing force for T0MA for ard loo-ing grand "ision ould mo/ili8eA for ard loo-ing grand "ision ould mo/ili8e
eo le to s eat hard for the sa-e of achie"ing thateo le to s eat hard for the sa-e of achie"ing that"ision."ision.
The "ision must /e the one hich could really The "ision must /e the one hich could reallymoti"ate eo le to s eat illingly. :or uality.moti"ate eo le to s eat illingly. :or uality.
@ the 4ision approach or T M promotion needs to conductan aggressi4e pu60ic re0ations acti4it3 so that the peop0e
Pro$uction N CPro$uction N C on"ertingon"ertingorgani8ation s resources into goodsorgani8ation s resources into goods+ ser"ices+ ser"icesPro$uction "ystemPro$uction "ystem The Thecollection of acti"ities in"ol"ed incollection of acti"ities in"ol"ed in
0uality is not only free, it is ro)t0uality is not only free, it is ro)tma-erma-er$ncrease of G & ( in ro)ta/ility$ncrease of G & ( in ro)ta/ility/y concentrating on uality/y concentrating on uality0uality ro"ides a lot of money for0uality ro"ides a lot of money forfreefree
PracticesPractices &those acti"ities occur ithin&those acti"ities occur ithina mgt system to achie"e hia mgt system to achie"e hi
erformance o/jecti"es.erformance o/jecti"es.
ToolsTools & ide "ariety of gra hical +& ide "ariety of gra hical +statistical methods to lan or-statistical methods to lan or-acti"ities, collect data analy8e results,acti"ities, collect data analy8e results,monitor rogress, + sol"e ro/lems.monitor rogress, + sol"e ro/lems.
ToolsTools ToolsTools $nfrastructure &/asic mgmt systems necessary$nfrastructure &/asic mgmt systems necessaryto function as a hi erforming org. $nfrato function as a hi erforming org. $nfrastructure that Su ort T0M Princi les areNstructure that Su ort T0M Princi les areN
The org must )rst address some fundamental The org must )rst address some fundamentalstrategic uestionsNstrategic uestionsN
!ho are our customers!ho are our customers!hat is our mission!hat is our mission!hat rinci les do e "alue!hat rinci les do e "alue!hat are our long range + short range goals!hat are our long range + short range goals6o do e accom lish these goals6o do e accom lish these goals
Strategic /usiness lanning should /e theStrategic /usiness lanning should /e thedri"er for uality im ro"ement throughout thedri"er for uality im ro"ement throughout theorg.org.
measurement + Analysis ofmeasurement + Analysis of
Performance to su ort a "ariety ofPerformance to su ort a "ariety ofur osesN Planning, re"ie ingur osesN Planning, re"ie ing#om any ro)le, $m ro"ing#om any ro)le, $m ro"ing
o erations, and com aring com any so erations, and com aring com any sstrategy ith com etitors.strategy ith com etitors.
Data + $nformationData + $nformationManagementManagement
Many Ty es of data + $nformation are neededMany Ty es of data + $nformation are neededfor uality assessment + uality im ro"ementNfor uality assessment + uality im ro"ementN
Customer nee$sCustomer nee$sPro$uct 1 service *erformancePro$uct 1 service *erformance
Many Ty es of data + $nformation are neededMany Ty es of data + $nformation are neededfor uality assessment + uality im ro"ementNfor uality assessment + uality im ro"ementN
Customer nee$sCustomer nee$sPro$uct 1 service *erformancePro$uct 1 service *erformance
Meeting re uirements of e1ternalMeeting re uirements of e1ternalcustomerscustomers%rgani8ation must see- regular customer%rgani8ation must see- regular customerin utin utUseUse customer8$riven *erformancecustomer8$riven *erformancestan$ar$sstan$ar$s forNforN
7&7& =hat is your ma#or *ro$uct(service=hat is your ma#or *ro$uct(service2&2& =ho are its ma#or users(customers=ho are its ma#or users(customersO&O& =hat are its uality re uirements=hat are its uality re uirements
-hich the ma#or users(customer-hich the ma#or users(customer$eman$$eman$
@&@& =hat is its most com*etitive=hat is its most com*etitive*ro$uct(service -hich is *rovi$e$ y*ro$uct(service -hich is *rovi$e$ yyour com*etitoryour com*etitor
B&B& =hat .in$ of com*arative stu$y $o=hat .in$ of com*arative stu$y $oyou have et-een youyou have et-een you*ro$uct(service an$ you*ro$uct(service an$ youcom*etitor s for the ualitycom*etitor s for the ualityre uirements from the ma#orre uirements from the ma#or
users(customersusers(customers
+a-s alone can not secure free$o+a-s alone can not secure free$om of ex*ressionSm of ex