Total Quality Management - CC

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Total Quality Management

Definition: Quality

Degree of excellence of a thing

Totality of features and characteristics that satisfy needs

Consumer’s Perspective

Fitness for use: how well product or service does what it is supposed to.

Quality of design: designing quality characteristics into a product or service.

Producer’s Perspective

Quality of Conformance

Making sure a product or service is produced according to design

if new tires do not conform to specifications, they wobble

if a hotel room is not clean when a guest checks in, the hotel is not functioning

according to specifications of its design

Value Based Approach

Quality is viewed in context of price

Quality is satisfactory, if it provides desired performance at an acceptable price

Customer looks at the total value proposition and not the price alone

Value =

Meaning of Quality: The degree of excellence of a thing.

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“Quality is conformance to specifications“

"Quality is conformance to requirements“

"Quality is fitness for purpose“

"Quality is synonymous with customer needs and expectations“

o Conformance quality - conforming to specifications; having a product or service

that meets predetermined standards.

o Requirements quality - meeting total customer requirements; having perceived

attributes of a service or product that meet or exceed customer requirements.

o Quality of kind - quality so extraordinary that it delights the customer; having

perceived attributes of a product or service that significantly exceed customer

expectations, thereby delighting the customer with its value.

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Dimensions of Quality: Manufactured Products

Performance : Basic operating characteristics of a product; how well a car is

handled or its gas mileage.

Features : “Extra” items added to basic features, such as a stereo CD or a

leather interior in a car.

Reliability : Probability that a product will operate properly within an expected

time frame; that is, a TV will work without repair for about seven

years.

Conformance : Degree to which a product meets pre–established standards.

Durability : How long product lasts before replacement.

Serviceability : Ease of getting repairs, speed of repairs, courtesy and competence of

repair person.

Aesthetics : How a product looks, feels, sounds, smells, or tastes.

Safety : Assurance that customer will not suffer injury or harm from a

product; an especially important consideration for automobiles.

Perceptions : Subjective perceptions based on brand name, advertising, and the

like.

Dimensions of Quality: Service

Time and

Timeliness

: How long must a customer wait for service, and is it completed

on time?

Is an overnight package delivered overnight?

Completeness : Is everything customer asked for provided?

Is a mail order from a catalogue company complete when

delivered?

Courtesy : How are customers treated by employees?

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Are catalogue phone operators nice and are their voices pleasant?

Consistency : Is the same level of service provided to each customer each time?

Is your newspaper delivered on time every morning?

Accessibility and

convenience

: How easy is it to obtain service?

Does a service representative answer you calls quickly?

Accuracy : Is the service performed right every time?

Is your bank or credit card statement correct every month?

Responsiveness : How well does the company react to unusual situations?

How well is a telephone operator able to respond to a customer’s

questions?

Differences between Manufacturing and Service Organizations

Defining quality in manufacturing organizations is often different from that of services.

Manufacturing organizations produce a tangible product that can be seen, touched, and

directly measured. Examples include cars, CD players, clothes, computers, and food

items. Therefore, quality definitions in manufacturing usually focus on tangible product

features.

The most common quality definition in manufacturing is conformance, which is the

degree to which a product characteristic meets preset standards. Other common

definitions of quality in manufacturing include performance—such as acceleration of a

vehicle; reliability—that the product will function as expected without failure;

features—the extras that are included beyond the basic characteristics; durability—

expected operational life of the product; and serviceability—how readily a product can

be repaired. The relative importance of these definitions is based on the preferences of

each individual customer. It is easy to see how different customers can have different

definitions in mind when they speak of high product quality. In contrast to

manufacturing, service organizations produce a product that is intangible. Usually, the

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complete product cannot be seen or touched. Rather, it is experienced. Examples

include delivery of health care, experience of staying at a vacation resort, and learning

at a university. The intangible nature of the product makes defining quality difficult.

Also, since a service is experienced, perceptions can be highly subjective. In addition to

tangible factors, quality of services is often defined by perceptual factors. These include

responsiveness to customer needs, courtesy and friendliness of staff, promptness in

resolving complaints, and atmosphere. Other definitions of quality in services include

time—the amount of time a customer has to wait for the service; and consistency—the

degree to which the service is the same each time. For these reasons, defining quality in

services can be especially challenging

Evolution of Quality Management

Mass Inspection Inspecting, Salvaging, Sorting, Grading, Rectifying, Rejecting

Quality Control

(Acceptance

Sampling)

Quality Manuals , Product Testing using SQC, Basic Quality

Planning

Quality

Assurance

Emphasis on Prevention, Proactive approach using SPC,

Advance Quality Planning

Total Quality

Control

All aspects of Quality of inputs, testing equipment’s, Control on

Process.

Company Wide

Quality Control

Measured in all functions connected with production such as –

R&D, Design, Engineering, Purchasing, Operations, etc.,

Total Quality

Management

Measured in all aspects of Business – Top management

Commitment, Continuous Improvement, Involvement &

Participation of Employees

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Mass Inspection:

An inspection is, most generally, an organized examination or formal evaluation

exercise. It involves the measurements, tests, and gauges applied to certain

characteristics in regard to an object or activity. The results are usually compared to

specified requirements and standards for determining whether the item or activity is in

line with these targets. Inspections are usually nondestructive.

Objective of Inspection:

The major objective of inspection is the prevention of defects.

Detect defects as they occur in processing.

Detect trends in the process which might lead to defects.

Remove defective parts from production to stop further handling and processing

costs.

Remove defective parts to prevent poor performance of finished product.

Inform all levels of management on the performance of manufacturing

departments or units.

Provide records for evaluation of individual machine or worker performance,

Quality Control:

Quality control is a process by which entities review the quality of all factors involved

in production. This approach places an emphasis on three aspects.

Elements such as controls, job management, defined and well managed

processes, performance and integrity criteria, and identification of records.

Competence, such as knowledge, skills, experience, and qualifications

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Soft elements, such as personnel integrity, confidence, organizational culture,

motivation, team spirit, and quality relationships.

Quality Assurance:

Quality assurance, or QA for short, is the systematic monitoring and evaluation of the

various aspects of a project, service or facility to maximize the probability that

minimum standards of quality are being attained by the production process. QA cannot

absolutely guarantee the production of quality products.

Two principles included in QA are: "Fit for purpose" - the product should be suitable

for the intended purpose; and "Right first time" - mistakes should be eliminated. QA

includes regulation of the quality of raw materials, assemblies, products and

components, services related to production, and management, production and

inspection processes.

There are many forms of QA processes, of varying scope and depth. The application of

a particular process is often customized to the production process.

A typical process may include:

test of previous articles

plan to improve

design to include improvements and requirements

manufacture with improvements

review new item and improvements

test of the new item

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Total Quality Control

"Total quality control" is a measure used in cases where, despite statistical quality

control techniques or quality improvements implemented, sales decrease. If the original

specification does not reflect the correct quality requirements, quality cannot be

inspected or manufactured into the product. For instance, the parameters for a pressure

vessel should include not only the material and dimensions, but also operating,

environmental, safety, reliability and maintainability requirements.

Company Wide Quality Control

Elements such as controls, job management, defined and well managed processes,

performance and integrity criteria, and identification of records,. Competence, such as

knowledge, skills, experience, and qualifications, . Soft elements, such as personnel

integrity, confidence, organizational culture, motivation, team spirit, and quality

relationships. The quality of the outputs is at risk if any of these three aspects is

deficient in any way.

Total Quality Management

Total - Made up of the Whole

Quality - Degree of Excellence a Product or Service Provides

Management - Act, Art or Manner of Planning, Controlling, Directing,

Therefore, TQM is the art of managing the whole to achieve excellence.

Total Quality Management means that the organization's culture is defined by and

supports the constant attainment of customer satisfaction through an integrated system

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of tools, techniques, and training. This involves the continuous improvement of

organizational processes, resulting in high quality products and services.

Definition - “TQM is a process and philosophy of achieving best possible outcomes

from the inputs, by using them effectively and efficiently in order to deliver best value

for the customer, while achieving long term objectives of the organization”

The core of TQM is the customer-supplier interfaces, both externally and internally, and

at each interface lie a number of processes. This core must be surrounded by

commitment to quality, communication ofthe quality message, and recognition of the

need to change the culture of the organisation to create totalquality. These are the

foundations of TQM, and they are supported by the key management functions

ofpeople, processes and systems in the organisation.

Goal of TQM: “Do the right things right the first time, every time.”

Total client satisfaction through quality products and services; and

Continuous improvements to processes, systems, people, suppliers, partners,

products, and services.

Productivity and TQM

Traditional view:

Quality cannot be improved without significant losses in productivity.

TQM view:

Improved quality leads to improved productivity

Factors

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The organisation needs a long-term commitment to continuous improvement.

Adopt the philosophy of zero errors/defects to change the culture to right first

time.

Train people to understand the customer/supplier relationships.

Do not buy products or services on price alone – look at the total cost.

Recognize that improvement of the systems must be managed.

Adopt modern methods of supervising and training – eliminate fear.

Eliminate barriers between departments by managing the process – improve

communications and teamwork.

Eliminate goals without methods, standards based only on numbers, barriers to

pride of workmanship and fiction – get facts by studying processes.

Constantly educate and retrain – develop experts in the organisation.

Develop a systematic approach to manage the implementation of TQM.

Evolution of Quality Approaches

Quality management is a recent phenomenon. Advanced civilizations that supported

the arts and crafts allowed clients to choose goods meeting higher quality standards

than normal goods. In societies where art responsibilities of a master craftsman (and

similarly for artists) was to lead their studio, train and supervise the on, the importance

of craftsmen was diminished as mass production and repetitive work practices were

instituted. The aim was to produce large numbers of the same goods. The first

proponent in the US for this approach was Eli Whitney who proposed (interchangeable)

parts manufacture for muskets, hence producing the identical components and creating

a musket assembly line. The next step forward was promoted by several people

including Frederick Winslow Taylor a mechanical engineer who sought to improve

industrial efficiency. He is sometimes called "the father of scientific management." He

was one of the intellectual leaders of the Efficiency Movement and part of his approach

laid a further foundation for quality management, including aspects like

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standardization and adopting improved practices. Henry Ford also was important in

bringing process and quality management practices into operation in his assembly lines.

In Germany, Karl Friedrich Benz, often called the inventor of the motor car, was

pursuing similar assembly and production practices, although real mass production

was properly initiated in Volkswagen after World War II. From this period onwards,

North American companies focused predominantly upon production against lower cost

with increased efficiency.

Walter A. Shewhart made a major step in the evolution towards quality management by

creating a method for quality control for production, using statistical methods, first

proposed in 1924. This became the foundation for his ongoing work on statistical

quality control. W. Edwards Deming later applied statistical process control methods in

the United States during World War II, thereby successfully improving quality in the

manufacture of munitions and other strategically important products.

Quality leadership from a national perspective has changed over the past five to six

decades. After the Second World War, Japan decided to make quality improvement a

national imperative as part of rebuilding their economy, and sought the help of

Shewhart, Deming and Juran, amongst others. W. Edwards Deming championed

Shewhart's ideas in Japan from 1950 onwards. He is probably best known for his

management philosophy establishing quality, productivity, and competitive position.

He has formulated 14 points of attention for managers, which are a high level

abstraction of many of his deep insights. They should be interpreted by learning and

understanding the deeper insights and include:

Break down barriers between departments

Management should learn their responsibilities, and take on leadership

Improve constantly

Institute a programme of education and self-improvement

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In the 1950s and 1960s, Japanese goods were synonymous with cheapness and low

quality, but over time their quality initiatives began to be successful, with Japan

achieving very high levels of quality in products from the 1970s onward. For example,

Japanese cars regularly top the J.D. Power customer satisfaction ratings. In the 1980s

Deming was asked by Ford Motor Company to start a quality initiative after they

realized that they were falling behind Japanese manufacturers. A number of highly

successful quality initiatives have been invented by the Japanese (see for example on

this page: Taguchi, QFD, Toyota Production System. Many of the methods not only

provide techniques but also have associated quality culture (i.e. people factors). These

methods are now adopted by the same western countries that decades earlier derided

Japanese methods.

Customers recognize that quality is an important attribute in products and services.

Suppliers recognize that quality can be an important differentiator between their own

offerings and those of competitors (quality differentiation is also called the quality gap).

In the past two decades this quality gap has been greatly reduced between competitive

products and services. This is partly due to the contracting (also called outsourcing) of

manufacture to countries like India and China, as well internationalization of trade and

competition. These countries amongst many others have raised their own standards of

quality in order to meet International standards and customer demands. The ISO 9000

series of standards are probably the best known International standards for quality

management.

There are a huge number of books available on quality management. In recent times

some themes have become more significant including quality culture, the importance of

knowledge management, and the role of leadership in promoting and achieving high

quality. Disciplines like systems thinking are bringing more holistic approaches to

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quality so that people, process and products are considered together rather than

independent factors in quality management.

The influence of quality thinking has spread to non-traditional applications outside of

walls of manufacturing, extending into service sectors and into areas such as sales,

marketing and customer service.

Strategic Thinking and Planning:

Many organizations are finding that strategic quality plans and business plans

areinseparable.

The time horizon for strategic planning is three to ten years and short-

termplanning is one year (annual) or less. Both types of planning require goals

andobjectives.

Goals and Objectives

o Goals and objectives have basically the same meaning.

o We will differentiate between the two by using goals for long-term and

objectivesfor short-term planning.

o The goal is to win the war; the objective is to capture the bridge.

Seven Steps to Strategic Planning

1. Customer Needs.

2. Customer Positioning.

3. Predict the Future.

4. Gap Analysis.

5. Closing the Gap.

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6. Alignment.

7. Implementation.

Quality System

A quality management system (QMS) can be expressed as the organizational structure,

procedures, processes and resources needed to implement quality management.

Elements of a Quality Management System

1. Organizational Structure

2. Responsibilities

3. Methods

4. Data Management

5. Processes

6. Resources

7. Customer Satisfaction

8. Continuous Improvement

9. Product Quality

Basic Elements of Quality Systems:

1. Quality Systempersonnel training and qualification;

2. Controlling the product design;

3. Controlling documentation;

4. Controlling purchasing;

5. Product identification and traceability at all stages of production;

6. Controlling and defining production and process;

7. Defining and controlling inspection, measuring and test equipment;

8. Validating processes;

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9. Product acceptance;

10. Controlling nonconforming product;

11. Instituting corrective and preventive action when errors occur;

12. Labeling and packaging controls;

13. Handling, storage, distribution and installation;

14. Records;

15. Servicing;

16. Statistical techniques;

Quality Planning

Systematic process that translates quality policy into measurable objectives and

requirements, and lays down a sequence of steps for realizing them within a

specified timeframe.

Quality planning is responsible for several important functions such as

Examining drawing received from design section.

Preparing inspection and test schedules.

Planning process control.

Determining Quality control and inspection staff requirements.

Scheduling calibration and maintenance of gauges, measuring instruments.

ISO – International Organization for Standardization

ISO 9000 Is an International Organized Quality Management System Developed By

International Standard Organization (ISO)

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Standard or series of standards Sector

ISO 9001:2008 Quality Management

ISO 14001:2004 Environmental Management

ISO 26000 Social Responsibility

ISO 31000:2009

ISO/TS 16949:2009 Automotive

ISO 10002:2004, ISO/TS 10004:2010 Customer Satisfaction

IAW 2:2007 Education

ISO 50001, TC 242 Energy

ISO 22000:2005 Food Safety

ISO/IEC 27001:2005 Information Security

IWA 1:2005 Health Care

IWA 4:2009 Local Government

ISO 13485:2003 Medical Devices

ISO/TS29001:2007 Petroleum and Gas

ISO 31000:2009 Risk Management

ISO 30000:2009 Ship Recycling

ISO 28000:2007 Supply Chain Security

ISO 9000

The ISO 9000 family of standards relate to quality management systems and are

designed to help organizations ensure they meet the needs of customers and other

stakeholders.

ISO 9000 deals with the fundamentals of quality management systems, including the

eight management principleson which the family of standards is based. ISO 9001 deals

with the requirements that organizations wishing to meet the standard have to meet.

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It is a set of rules.

It provides guidance to quality management.

It is an excellence tool for developing a strong foundation of good processes and

systems.

A standard of Quality System in which to conduct business.

Need of ISO 9000

Credible suppliers

Major customers

Government agencies

Retailers

ISO 9000 implementation

The way to implement the ISO9000 in quality system by:

Defining all processes.

Quality management training for employees.

Design all procedures.

Produce and Reset quality management documentation.

Scope and measure all determinants of processes.

Benefits of ISO 9000

o Improved Control, Procedures, Documentation, Communication, Dissemination

AndCustomer Satisfaction, Quicker Identification and Resolution of Problems.

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o Reduced Errors, Customer Complaints AndNon-Conforming Products, Services,

Costs and the Retention of Customers.

o Responsibility For Quality Issues Is Placed Firmly Where It Belongs.

o A Better Working Environment

ISO9000 and Quality Management

o ISO9000 Guides Quality Management

o ISO9000 realize quality management processes to its policy.

o Achieves Customer Satisfy by registration to ISO9000.

o Easy to prove the minimum of quality control.

o The preparation of systems, procedures, working instructions, etc., to meet the

requirement of ISO9000 will have a beneficial effect on a company’s performance

in term of improve process yields.

o Help quality management to achieve customer satisfaction.

o ISO 9000 support the improvement quality management processes.

o Tuning all quality processes and procedures to meet the minimum requirement

of ISO9000 series.

o ISO 9000 series helped in the process of understanding and agreement between

the source and the consumer even from long distances around the world.

Certification Structure

International

Accreditation

Forum (IAF)

The IAF is an association of Accreditation Bodies and other interest

parties from around the world, who work together to promote

confidence and consistency in the ISO 9001 accreditation and

certification process.

Accreditation

Body

The Accreditation process provides additional confidence that the

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certification body is competent and has the necessary integrity to

issue an ISO 9001 certificate. Accreditation is usually carried out

by national or regional accreditation bodies, and their accreditation

mark will appear on the certificate.

Certification

body/ registrar

A common way for a supplier to demonstrate conformity to ISO

9001 is via an independent (“third party”) certification process. A

certification body (sometimes known as a registrar) conducts an

audit of the supplier and if all is ok, they will issue a certificate of

conformity.

The Organization

(your supplier)

If you know your supplier well and have confidence in them, it

may be sufficient for you to accept a “supplier declaration of

conformity to ISO 9001” issued by them. Alternatively, you may

choose to audit your supplier yourself or rely on audits that have

been carried out by other reputable customers. These are known

as “Second-party audits”

The Customer

(You)

You are the one who is buying the goods or the services from your

supplier. You need to make sure you tell them clearly what you

want. Depending on how well you know your supplier, the

confidence you have in their products and the importance of their

products for your own business, you might not even need them to

demonstrate conformity to ISO 9001 at all.

Auditing

Quality Audit is the process of systematic examination of a quality system carried out

by an internal or external quality auditor or an audit team. It is an important part of

organization's quality management system and is a key element in the ISO quality

system standard, ISO 9001. Quality audits are typically performed at predefined time

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intervals and ensure that the institution has clearly-defined internal quality monitoring

procedures linked to effective action. This can help determine if the organization

complies with the defined quality system processes and can involve procedural or

results-based assessment criteria. With the upgrade of the ISO9000 series of standards

from the 1994 to 2000 series, the focus of the audits has shifted from purely procedural

adherence towards measurement of the actual effectiveness of the Quality Management

System (QMS) and the results that have been achieved through the implementation of a

QMS.

Two types of auditing are required to become registered to the standard: auditing by an

external certification body (external audit) and audits by internal staff trained for this

process (internal audits). The aim is a continual process of review and assessment, to

verify that the system is working as it's supposed to, find out where it can improve and

to correct or prevent problems identified. It is considered healthier for internal auditors

to audit outside their usual management line, so as to bring a degree of independence

to their judgments.

The processes and tasks that a quality audit involves can be managed using a wide

variety of software and self-assessment tools. Some of these relate specifically to quality

in terms of fitness for purpose and conformance to standards, while others relate to

Quality costs or, more accurately, to the Cost of poor quality. In analyzing quality costs,

a cost of quality audit can be applied across any organization rather than just too

conventional production or assembly processes.

Under the 1994 standard, the auditing process could be adequately addressed by

performing "compliance auditing":

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Tell me what you do (describe the business process)

Show me where it says that (reference the procedure manuals)

Prove that this is what happened (exhibit evidence in documented records)

The 2000 standard uses a different approach. Auditors are expected to go beyond mere

auditing for rote "compliance" by focusing on risk, status and importance. This means

they are expected to make more judgments on what is effective, rather than merely

adhering to what is formally prescribed. The difference from the previous standard can

be explained thus:

Under the 1994 version, the question was broadly "Are you doing what the manual says

you should be doing?” whereas under the 2000 version, the question is more "Will this

process help you achieve your stated objectives? Is it a good process or is there a way to

do it better?"

Advantages

It is widely acknowledged that proper quality management improves business, often

having a positive effect on investment, market share, sales growth, sales margins,

competitive advantage, and avoidance of litigation. The quality principles in ISO

9000:2000 are also sound, according to Wade and also to Barnes, who says that "ISO

9000 guidelines provide a comprehensive model for quality management systems that

can make any company competitive implementing ISO often gives the following

advantages:

1. Create a more efficient, effective operation

2. Increase customer satisfaction and retention

3. Reduce audits

4. Enhance marketing

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5. Improve employee motivation, awareness, and morale

6. Promote international trade

7. Increases profit

8. Reduce waste and increases productivity.