Tqm final

TQMTotal quality management

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Defining Quality

• Definition of quality is dependent on the people defining it• There is a lack of a single, universal definition of quality• 5 common definitions include

– Conformance to specifications– Fitness for use– Value for price paid– Support services– Psychological criteria

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Defining Quality – 5 Ways

• Conformance to specifications– Does product/service meet targets and tolerances defined by designers?

• Fitness for use – Evaluates performance for intended use

• Value for price paid– Evaluation of usefulness vs. price paid

• Support services– Quality of support after sale

• Psychological– e.g. Ambiance, prestige, friendly staff

Introduction

What is quality? Many people have different point of view about quality.definition of quality is change person to person .“Essential characteristic,” “Superior,” and lack of manufacturing defeats.etc. this definition is accept in various organizations: “Quality is customer satisfaction,”

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The reasons quality has gained such prominance 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 obvious consequences of poor quality is customer dissatisfaction which leads to loss of business.

Cost of Quality:

Quality control costPrevention costAppraisal cost

Quality failure costExternal failure costInternal failure cost

Categories of cost:

Cost of Quality:

Quantified definition of Quality:

Q = P / E

where, Q = qualityP = performanceE = expectations

If Q is greater than 1, then the customer has a good feeling about the quality of product or service.

Dimensions of quality Dimensions of quality are the different features of product or service.

Functionality: Functionality refers to the core features and characteristics of a product

that satisfy the customer.

Reliability: Reliability is measured by mean time between failures (MTBF) and mean

time to first failure. Reliability is an indicator of durability of products.

Usability: A product should be user friendly. The customer should be able to use the

product easily without the help of expert.

Maintainability: It refers to the ease with which a product can be maintained in the original

condition. Maintainability is measured as mean time to repair (MTTR).

Efficiency: Efficiency is how much out put is taken by different products on giving same

input.

Aesthetics: A product or service should not only perform well but also appear

attractive. It also includes color, finish and overall look of product or service.

Serviceability: It includes: How well the customers are treated? How complaints are handled and resolved? How much time you take to resolve problem? This feature plays a vital role in service organizations.

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TQM Philosophy

TQM Focuses on identifying quality problem root causes

Encompasses the entire organization Involves the technical as well as people Relies on seven basic concepts of

Customer focus Employee empowerment Continuous improvement Managing supplier quality Use of quality tools Product design Process management Team Approach

Principles and philosophy of TQM

Customer focus:

– Identify and meet customer needs– Stay tuned to changing needs, e.g. fashion styles

Organization depend on their and should understand current and future customer need should meet customer requirement and customer expectation.1. Increase revenue and gain market share2. Increase effectiveness in use of organization resource to enhance customer satisfaction.3.gather the information

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TQM Philosophy - concepts

• Employee Empowerment–Empower all employees; external and internal customers

ORGANIZATION

INTERNAL CUSTOMERS

EXTERNAL CUSTOMER

MINDS MINDS

Objectives:Long Medium & Short-term

These minds must be:Well satisfiedWell trainedWell communicatedWell aware etc.

If the external minds are satisfied then :Revenue IncreasesCompetitive EdgeExpansion of business etc

Satisfaction will transfer to…

Employees Potential buyers

Recruitment

Selection

Work Design

Training And Development

Performance Appraisal

Reward

Promotion

Incentives

Involvement

Flexible work Arrangements

Effectiveness

Efficiency

Development

Innovation

Quality

HRM Practices

Employee Promise

Fulfillment

Organizational Performance

Work Hard

Show Loyalty To The Organization

Work Extra Hours When It Required

Uphold Company Reputation

Maintain High Level Of Attendance

Courteous With Clients

And Peers

Develop New Skills And Update Old One

Come Up With New Idea

Employee

Attitude

Satisfaction

Motivation

Commitment

Encourage creativity and innovationIncrease productivity

Align goals of employees with those of the organization

Help in employee retention

Importance of Empowerment

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Process Management• Quality products come from quality sources• Quality must be built into the process• Quality at the source is belief that it is better to uncover

source of quality problems and correct it• TQM extends to quality of product from company’s

suppliers

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Process improvement: Kaizen

• Improvement in all areas of business serves to enhance quality of the firm.• Three things required for successful kaizen program: operating practices, total involvement,

and training.• Operating practices expose opportunities for improvement. JIT reveals waste and

inefficiency as well as poor quality. • Every employee strives for improvement. Top management views improvement as part of

strategy and supports it. Middle management can implement top management’s improvement goals by establishing, maintaining, and upgrading operating standards. Workers can engage through suggestions, small group activity.

• Middle management can help create conducive environment for improvement by improving cooperation amongst departments, and by making employees conscious of their responsibilities for improvement.

• Supervisors can direct their attention more on improvement than supervision, which will facilitate communication.

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Product Design - Quality Function Deployment • Critical to ensure product design meets customer expectations• Useful tool for translating customer specifications into technical requirements

is Quality Function Deployment (QFD)• QFD encompasses

– Customer requirements– Competitive evaluation– Product characteristics– Relationship matrix– Trade-off matrix– Setting Targets


Supplier RelationshipAn organization and its supplies are interdependent and mutually beneficial relationship enhance the ability of both create value.1. Increased ability to create value for both parties.2. Optimization of cost


Team approach• Teams formed around processes – 8 to 10 people

• Meet weekly to analyze and solve problemsTQM stresses the quality is an organization effort , to facilitate the solving of quality problem it places great emphasis on teamwork . With the use of team business will receive quicker and better solution to problems. Team also provide more permanent improvement in processes and operation.1.Quality improvement team2.Problem solving team3.Natural work team

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TQM Philosophy– Concepts (continued)

• Understanding Quality Tools– Ongoing training on analysis, assessment, and

correction, & implementation tools– Studying practices at “best in class” companies

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Ways of Improving Quality

• Plan-Do-Study-Act Cycle (PDSA)– Also called the Deming Wheel after originator– Circular, never ending problem solving process

• Seven Tools of Quality Control– Tools typically taught to problem solving teams

• Quality Function Deployment– Used to translate customer preferences to design

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PDSA Details

• Plan– Evaluate current process– Collect procedures, data, identify problems– Develop an improvement plan, performance

objectives• Do

– Implement the plan – trial basis• Study

– Collect data and evaluate against objectives• Act

– Communicate the results from trial– If successful, implement new process

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Seven Tools of Quality Control

• Cause-and-Effect Diagrams• Flowcharts• Checklists• Control Charts• Scatter Diagrams• Pareto Analysis• Histograms

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Quality Function Deployment(QFD) Details

• Process used to ensure that the product meets customer specifications

Voice of theengineer

Voice of the

customer

Customer-basedbenchmarks


Continuous ImprovementContinuous learning and problem solving, e.g. Kaizen, 6 sigmaBenchmarking

Continuous improvement of organization overall performance advantage through improved organization capabilities.

Alignment of improvement activities at all level of organization. Make continues improvement of product , process , and system an objective for

every individual in org.

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SIX SIGMA

"Delivering Tomorrow's Performance Today"

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WHAT IS SIGMA ?

• A term (Greek) used in statistics to representstandard deviation from mean value, an indicator of the degree of variation in a set of a process.

• Sigma measures how far a given process deviates from perfection. Higher sigma capability, better performance

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WHAT IS SIX SIGMA?

• A statistical concept that measures a process in terms of defects – at the six sigma level defects per million opportunities.

Contd…But, it is much more!

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Six Sigma is not:•A standard•A certification•Another metric like percentageRather!

•It is a Quality Philosophy and the way of improving performance by knowing where you are and where you could be.

• Methodology to measure and improve company’s performance, practices and systems

WHAT IS SIX SIGMA

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WHY SIX SIGMA ?

• Six Sigma emerged as a natural evolution in business to increase profit by eliminating defects

• The Current business environment now demands and rewards innovation more than ever before due to:

Customer Expectations Technological Change Global Competition Market Fragmentation

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COMPANIES USING Six Sigma is in use in virtually all

industries around the world. Some of companies can be listed as:

• Motorola• Ericsson• General Electric• Sony• Ford Motor Co.• CITI bank

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BENEFITS OF SIX SIGMA

• Generates sustained success• Sets performance goal for everyone• Enhances value for customers• Accelerates rate of improvement• Promotes learning across boundaries• Executes strategic change

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Why TQM Efforts Fail

• Lack of a genuine quality culture

• Lack of top management support and commitment

• Over- and under-reliance on SPC methods

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