Tqm ch 01

1 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

Chapter 1Chapter 1

Introduction to Quality


Definitions of QualityDefinitions of Quality

• Total quality management (TQM) is the integration of all functions and processes within an organization in order to achieve continuous improvement of quality of goods and services.

• A process is a sequence of activities that is intended to achieve some result


Total Quality

• People-focused management system• Focus on increasing customer satisfaction

and reducing costs• A systems approach that integrates

organizational functions and the entire supply chain

• Stresses learning and adaptation to change• Based on the scientific method


Principles of Total Quality

• Customer and stakeholder focus• Participation and teamwork• Process focus and continuous

improvement

...supported by an integrated organizational infrastructure, a set of management practices,and a set of tools and techniques


Continuous Improvement

• Enhancing value through new products and services

• Reducing errors, defects, waste, and costs

• Increasing productivity and effectiveness

• Improving responsiveness and cycle time performance


THE CONCEPT OF TQMTHE CONCEPT OF TQMThe subsystem include all the organizational

functions in the life cycle of a productDesign, Planning, Production, Distribution,

Field serviceThe management subsystems also require

integration, including 1. strategy with a customer focus 2. The tools of quality3. Employee involvement

The subsystem include all the organizational functions in the life cycle of a product

Design, Planning, Production, Distribution, Field service

The management subsystems also require integration, including

1. strategy with a customer focus 2. The tools of quality3. Employee involvement


Strategy With Customer FocusStrategy With Customer Focus

• “Meeting or exceeding customer expectations”

• Customers can be...– Consumers

– External customers

– Internal customers


Employee involvement

• Employees know their jobs best and therefore, how to improve them

• Management must develop the systems and procedures that foster participation and teamwork

• Empowerment better serves customers, and creates trust and motivation

• Teamwork and partnerships must exist both horizontally and vertically


Key Issues & terminology related To TQM

• The cost of quality

• A cultural change

• Enabling mechanisms of change

• Implementing TQM

• Management behavior


Infrastructure, Practices, and Tools

Leadership Strategic HRM Process Data and information Leadership Strategic HRM Process Data and information Planning mgt. managementPlanning mgt. management

Performance TrainingPerformance Training appraisalappraisal

Trend chartTrend chartToolsTools

PracticesPractices

InfrastructureInfrastructure


TQ Infrastructure

• Customer relationship management• Leadership and strategic planning• Human resources management• Process management• Data and information management


ANTECEDENTS OF MODERN QUALITY MANAGEMENT

ANTECEDENTS OF MODERN QUALITY MANAGEMENT

• Is driven by customer wants and needs• Makes significant contribution to business

success• Matches organization’s unique resources with

opportunities• Is durable and lasting• Provides basis for further improvement• Provides direction and motivation

Quality supports each of these characteristics


Organizational benefits

• Great customer loyalty

• Marker share improvements

• Higher stock price

• Reduced service calls

• Higher prices

• Greater productivity


Quality and Business Performance

Quality and Business Performance

Customer-Driven Quality

Specification quality

Customer values

productivity

Market Share

Lower costs

Higher profitability

Price Advantage

Customer attributesAnd design space profitability and

growth


Leaders in the Quality Revolution

• W. Edwards Deming (early 1950)

• Joseph M. Juran (1954)

• Philip B. Crosby

• Armand V. Feigenbaum

• Kaoru Ishikawa

• Genichi Taguchi


Deming Chain ReactionImprove quality

Costs decrease

Productivity improves

Increase market share with better quality and lower prices

Stay in business

Provide jobs and more jobs


Deming’s System of Profound Knowledge

• Appreciation for a system

• Understanding variation

• Theory of knowledge

• Psychology


Deming’s 14 Points (Abridged) (1 of 2)

1. Create consistency of purpose with a plan2. Adopt the new philosophy of quality.3. Cease dependence on mass inspection.4. End practice of choosing suppliers based solely on price.5. Identify problem and work Constantly improve system.6. Adopt modern method of training on the job.7. Change the focus from production numbers to quality.8. Drive out fear.9. Break down barriers between departments.


Deming’s 14 Points (2 of 2)

10. Stop requesting improved productivity with out providing method to achieve it.11. Eliminate work standard that prescribe numerical quotas. 12. Remove barriers to pride of workmanship.13. Institute vigorous education and retraining.14. Create a structure in top management that will emphasize the preceding thirteen points every day.

www.deming.org


Juran’s 10 step to quality improvement Quality planning

Quality organizingQuality improvement

• Build awareness of opportunities to improve

• Set goals for improvement

• Organize to reach goals

• Provide training

• Carry out projects to solve problems

• Report progress

• Give recognition• Communicate results• Keep score• Maintain momentum by

making annual improvement part of the regular system and process of the company

www.juran.com


Phillip B. Crosby

Quality is free . . . :“Quality is free. It’s not a gift, but it is free. What costs money are the unquality things -- all the actions that involve not doing jobs right the first time.”


Absolutes of Quality Management:• Management commitment

• Quality improvement team

• Quality measurement

• Cost of quality

• Quality awareness

• Corrective action

• Zero defect planning

• Supervisor training

Crosby 14 Points (Abridged) (1 of 2)


• Zero defects day

• Goal setting

• Error cause removal

• Recognition

• Quality councils

• Do it all aver again

www.philipcrosby.com


A.V. Feigenbaum

• Three Steps to Quality– Quality Leadership, with a strong focus

on planning

– Modern Quality Technology, involving the entire work force

– Organizational Commitment, supported by continuous training and motivation


Three Levels of Quality

• Organizational level: meeting external customer requirements

• Process level: linking external and internal customer requirements

• Performer/job level: meeting internal customer requirements


Quality and Personal ValuesQuality and Personal Values

• Personal initiative has a positive impact on business success

• Quality begins with personal attitudes

• Quality-focused individuals often exceed customer expectations

• Attitudes can be changed through awareness and effort (e.g., personal quality checklists)



Malcolm Baldrige National Quality Award

• Help improve quality in U.S. companies

• Recognize achievements of excellent firms and provide examples to others

• Establish criteria for evaluating quality efforts

• Provide guidance for other U.S. companies


Criteria for Performance Excellence

• Leadership

• Information and analysis

• Strategic quality planning

• Human Resource development and management

• Management of process quality

• Quality and operational results

• Customer focus and satisfaction


The Baldrige Framework –A Systems Perspective

6Quality and Operational Result

4Human

Resource Focus

3Strategic quality

planning

7Customer focus and

satisfaction

7Customer focus and

satisfaction

2Information

and analysis

1Leadership

5Process

Management

Organizational Profile:

Environment, Relationships, and Challenges


Receive Applications

Judges Select for Consensus Review?

Judges Select forSite Visit Review?

Stage 1Independent Review

Stage 2Consensus Review

Stage 3Site Visit Review

Stage 4Judges Recommend Award

Recipients to NIST Director/DOC

Feedback report to applicant



No

No

Baldrige Award Evaluation Process


The Baldrige Award Scoring System

• Three evaluation dimensions - Approach, Deployment, and Results

• Scoring is linked to the importance to the applicant’s business

• Scoring guidelines


Feedback Report

• Strengths - approaches or results that demonstrate effective response to the Criteria

• Opportunities for improvement - how the applicant can better address the purposes of the Criteria, or issues that require clarification


Self Assessment and the Baldrige National Quality Program

A primary goal of the Program is to encourage many organizations to improve on their own by equipping them with a standard template for measuring their performance and their progress toward performance excellence.

Tqm ch 01

Documents

control of quality

information management

qualitythe management

cost of quality

quality revolution

set of management practices

new philosophy of quality

customer focus meeting