TQM introduction

TOTAL QUALITY MANAGEMENT Module-01 Introduction to TQM

By, GROUP-4

Learning Objectives:

• To know about the Concepts of quality & total quality.

• To know about the costs of quality.• To know about the Statistical Quality Control.• To understand the concepts of quality

assurance.• To know about total quality control &

management.• To study the benefits of TQM.

What does Quality stands for?

• Q- Quest for Excellence.

• U- Understanding Customer’s needs.

• A- Action to achieve customer’s appreciation.

• L- Leadership: Determination to be a leader.

• I- Involving all people.

• T- Team spirit to work for a common goal.

• Y- Yardstick to measure the progress.

What is Quality?

Quality is “fitness for use”

(Joseph Juran)

Quality is “conformance to requirements”

(Philip B. Crosby)

Quality of a product or services is its ability to satisfy the needs and expectations of the customer

The Evolution of Quality

Q Concept 1: Fitness to Standard

Q Concept 2: Fitness to Use

Q Concept 3: Fitness to Cost

Q Concept 4: Fitness to Latent Requirements

Future of Fitness or Quality

Q Concept 1: Fitness to Standard

Q Concept 2: Fitness to Use

Q Concept 3: Fitness to Cost

Q Concept 4: Fitness to Latent Requirements

Q Concept 5: Fitness to Corporate Governance

Q Concept 6: Fitness to Societal or Global Environment

Evolution of Quality Concepts and Methods

Fitness to standard

Fitness to use

Fitness of cost

Fitness to latentrequirement

standardizationstatistical process control inspection

market research cross-functional involement

QFD 7 management tool

QC circle 7 QC steps, 7 QC tools= Improvement methods

1950

1960

1970

1980

mass

production

consumer

revolution

competition

Company Focus Customer Focus

Fitness ofcorporate culture

Fitness for societal andglobal environment

1990

2000

Philip Crosby’s Four Absolutes

Definition : Conformance to requirements

System of quality is prevention

Performance Standard : Zero Defects

Measurement : Price of non-conformance (PON)

What is Quality?

What system is needed to cause quality?

What performance standard should be used?What measurement system is required?

Crosby’s Successful Company

Characteristics of the Eternally Successful Organisation

People do things right routinely

Growth is profitable and steady

Customer needs are anticipated

Change is planned and managed

People are proud to work there

What is “quality” ?

Inspection

QC

QC

QAQuality assurance

QA

TQMTotal Quality Management

TQM

“There is a very little agreement on what constitutes quality.”Masaaki Imai.

What is you measure is what you manage.

TQM:Total Quality Management

QA:Quality Assurance

QC:Quality Control

Inspection

Evolution of Quality Management

Inspection

Quality Control

Quality Assurance

TQM

Salvage, sorting, grading, blending, corrective actions, identify sources of non-conformance

Develop quality manual, process performance data, self-inspection, product testing, basic quality planning, use of basic statistics, paperwork control.

Quality systems development, advanced quality planning, comprehensive quality manuals, use of quality costs, involvement of non-production operations, failure mode and effects analysis, SPC.

Policy deployment, involve supplier & customers, involve all operations, process management, performance measurement, teamwork, employee involvement.

Four Revolutions of Management Thinking in TQM

Societal networkingSocietal networking

Focus oncustomers

Totalparticipation

Continuousimprovement

TQMTQMactivitiesactivities

W. E. Deming and the 6 Era’s of Quality

1920’s : New statistical thinking and methods in manufacturing1930/40’s : Use of statistical thinking outside

manufacturing 1950/60’s : Systems of improvement1970/80’s : The fourteen pointsLate 80’s : The “New Climate”1990’s : System of Profound Knowledge

Improve Quality

Productivity improves

Provide jobs and more jobs

Deming’s Chain Reaction

Cost decreases because of less rework, fewer mistakes, fewer delays, snags, better use of machine time and materials

Stay in business

Capture the market with better quality and lower price

W. Edwards Deming’s 14 Points

Create constancy of purpose towards improvement of product and services.

Adopt the new philosophy. We can no longer live with commonly accepted levels of delays, mistakes, defective workmanship.

Cease dependence on mass inspection. Require, instead, statistical evidence that quality is built in.

End the practice of awarding business on the basis of price tag.

1)

2)

3)

4)


Find problems. It is management’s job to work continually on the system.

Institute modern methods of training on the job.

Institute modern methods of supervision of production workers. The responsibility of foremen must be changed from numbers to quality.

Drive out fear that everyone may work effectively for the company.

5)

6)

7)

8)

Break down barriers between departments.

Eliminate numerical goals, posters and slogans for the workforce asking for new levels of productivity without providing methods.

Eliminate work standards that prescribe numerical quotas.

Remove barriers that stand between the hourly worker and his right to pride of workmanship.

9)

10)

11)

12)


Institute a vigorous programme of education and retraining.

Create a structure in top management that will push everyday on the above 13 points.

13)

14)


PLAN

CHECK

DOACT

The Deming Cycle or PDCA Cycle

Plan a change to the process. Predict the effect this change will have and plan how the effects will be measured

Implement the change on a small scale and measure the effects

Adopt the change as a permanent modification to the process, or abandon it.

Study the results to learn what effect the change had, if any.

TQM

• Total = Quality involves everyone and all activities in the company.

• Quality = Conformance to Requirements (Meeting Customer Requirements).

• Management = Quality can and must be managed.

• TQM = A process for managing quality; it must be a continuous way of life; a philosophy of perpetual improvement in everything we do.

What is TQM?

Constant drive for continuous

improvement and learning.

Concern for employee

involvement and development

Management by Fact

Result FocusPassion to deliver customer value /

excellence

Organisation response ability

Actions not just words

(implementation)Process

Management

Partnership perspective (internal / external)

Contrast of the characteristics of traditional management with that of a Total Quality Management organization.

CEO

Manager

Supervisor

Worker Worker Worker Worker

Supervisor

SupplierCustomer

SupplierCustomer

SupplierCustomer

SupplierCustomer

SupplierCustomer

SupplierCustomer

SupplierCustomer

SupplierCustomer

Traditional Management TQM Management

BASIC PRINCIPLES OF TQM

Approach Management Led

Scope Company Wide

Scale Everyone is responsible for Quality

Philosophy Prevention not Detection

Standard Right First Time

Control Cost of Quality

Theme On going Improvement

Joseph M. Juran’s Quality Trilogy

Quality Planning

Establish quality goals

Identify customer needs

Translate needs into our language

Develop a product for these needs

Optimise product features for these needs

Quality Control

Prove the process can produce under operating conditions

Transfer process to operation

Quality Improvement

Seek to optimise the process via tools of diagnosis

1) Identify who are the customers2) Determine the customer’s needs3) Translate the needs into our language4) Develop a product to meet those needs5) Optimise a product so as to meets our needs as well as the customer’s.6) Develop a process which is able to produce the product7) Optimise the process8) Prove the process can make the product under operating conditions

Juran’s Quality Planning Road Map

FOUR KEY PRINCIPLESFOUR KEY PRINCIPLES

•Measure quality so you can affect it

•Focus on a moving customer

•Involve every employee

•Think long term - Act short term

THE CASE FOR QUALITY

1 Success of competitors who take quality seriously

2 Rising expectations of customers

3 Quality differentiates companies from the competition

4 Narrowing of supplier bases by quality conscious companies

.

5 Growing evidence that growth in market share comes from sustained quality.

6 Cost advantages

7 Inspection poor substitute for right first time

THE CASE FOR QUALITY

Concept of Quality:

• Perfection• Consistency• Eliminating Waste• Speed of delivery• Compliance with policies & procedures.• Providing a good, usable product.• Doing it right the first time.• Delighting or pleasing the customers.• Total customer service & satisfaction.

Quality is a Journey, not a Destination

Costs of Quality

• Quality costs are defined “as those costs associated with the nonachievement of product or service quality as defined by the requirements established by the organization and its contracts with customers and society” .

• Costs associated with the defective product include cost of making, finding, repairing and avoiding defects.

Joseph M.Juran and the Cost Of Quality

2 types of costs:

Unavoidable Costs: preventing defects (inspection, sampling, sorting, QC)

Avoidable Costs: defects and product failures (scrapped materials, labour for re-work, complaint processing, losses from unhappy customers

“Gold in the Mine”

Joseph M.Juran and the Cost Of Quality

100% defective Point of “Enough quality”

Total Costs

Unavoidable costs

Avoidable costs

Costs

Cost of quality categorizes in to 4 costs

INTERNALFAILURE

COST

EXTERNALFAILURE

COST

APPRAISALCOST

PREVENTION COST

PREVENTION COST

• The costs of all activities specifically designed to prevent poor quality in products or services

• Prevention is achieved by examining the total of such experience and developing specific activities for incorporation into the basic management system that will make it difficult or impossible for the same errors or failures to occur again.

Examples are the costs of: • New product review • Quality planning • Supplier capability surveys • Process capability evaluations • Quality improvement team meetings • Quality improvement projects • Quality education and training

APPRAISAL COST

• The costs associated with measuring, evaluating or auditing products or services to assure conformance to quality standards and performance requirements

• This category has the responsibility for evaluating a product or service at sequential stages, from design to first delivery and throughout the production process, to determine its acceptability for continuation in the production or life cycle.

The costs include : • Incoming and source inspection/test of purchased material • In-process and final inspection/test • Product, process or service audits • Calibration of measuring and test equipment • Associated supplies and materials

INTERNAL FAILURE COST

• Whenever quality appraisals are performed, the possibility exists for discovery of a failure to meet requirements

The costs includes:

• Scrap

• Rework

• Re-inspection

• Re-testing

• Material review

• Downgrading

This cost is again divided into two types:

Yield loss are those which are incurred due to defective item

Rework cost are incurred due to rerouting to correct the defects.

EXTERNAL FAILURE COST

• This category includes all costs incurred due to actual or suspected nonconforming product or service after delivery to the customer

• These costs consist primarily of costs associated with the product or service not meeting customer or user requirement.

The costs include:

• Processing customer complaints

• Customer returns

• Warranty claims

• Product recalls

Total quality control and management

Total Quality Control:

When the quality problem in an organization is severe and pervasive enough, major quality improvement are necessary from shop floors to board rooms.

It has an organization wide view of product quality

It enables the organization to achieve position to compete with their competitors.

To offer superior quality products to the consumers. Such efforts are often referred to as “total quality

control(TQC)”.

TOTAL QUALITY MANAGEMENT:

MEANING:

Intense focus on the customer- both internally and externally

Concern for continuous improvement

Accurate measurement of every critical performance variable in the company’s operation

DEFINITION:

“TQM is a philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction”

BASIC CONCEPT OF TQM:

A committed and involved management to provide long term top to bottom organizational support.

An unwavering focus on the customer, both internally and externally

Effective involvement and utilization of the entire workforce

Treating suppliers as partners

Continuous improvement of the business and production process

SEVEN UNDER LYING PRINCIPLES OF TQM:

• Strive for quality in all things• The customer is the criterion of quality• Improve the process or system by which product are produced• Quality improvement is continuous, never ending activity• Worker involvement is essential• Ground decision and actions is knowledge• Encourage team work and cooperation

NECESSITY FOR TQM:

TQM adds value to the services offered to the customers

All personnel are involved, which improves motivation and commitment

TQM provides assurance that performance and processes are well understood

TQM is economic in the long term to both the company and its customers

Learning

LEARNING AND TQM

Process Improvement

Quality Improvement

Customer Satisfaction

Shareholder Satisfaction

Employee Satisfaction

Beyond TQM

Customer value management

•Conformance to requirement•Do it right at the first time•Reduce reject & rework

•Get close to customer•Understand needs & expectations•Be customer-driven

•Get close to market•Use customer value analysis•Be market-driven

Stage 1:Conformance quality(Internal operation)

Stage 2:Customer satisfaction(External focus)

Stage 3:Market-perceived quality and value VS competitors(Market focus)

Stage 4:Quality is key to customer value management(Market leader)

•Customer value learning and innovative organization.•Be customer/market-driven

Increaseeffectiveness

TQM

STATISTICAL QUALITY CONTROL

• This is the application of statistical techniques to accept or reject products already produced or to control the process.

• Therefore, the product quality while the part is being made.

• (i) Control process,

• (ii) Acceptance sampling.

• Process control It is used for controlling quality during

production in mass production industries which produce standard products. It is based on the probability theory. The process control manifests through control charts.

• Acceptance Sampling It is based on the premise, that a sample

represents the whole lot from which the former is drawn. In this method samples are taken out & are carefully inspected to detect defects.

Advantages of SQC

• It helps prevent defects from being made. Assignable causes signifying deviations in quality are detected & rectified. Costly rework, rejection & scrap are avoided.

• It also helps avoidance of the risk of accepting a bad lot.• Emphasizing on inspection of only samples, SQC avoids

inspection of the entire lot.• It ensures the maintenance of high standards of quality &

enables the users to build up their goodwill.• Supply an audit of quality regarding the producer’s products.

A universally understood measurement is supplied.

Sampling• It is the process of selecting & measuring (or

inspecting) representative units of output, termed sample units.

• A set of sample units is termed sample. The sample units are drawn from the (universe or population) at random.

• A random sample is one in which each unit in the lot has an equal chance of being included in the sample & the sample is likely to be representative of the lot.

Central limit theorem.

• This is stated as ‘sampling distribution can be assumed to be normally distributed even through the population distributions are not normal.

5 Views of Quality

• Product Based View-

Amount of Non-Priced Attributes contained in each unit of the priced attributes.

• User Based View-

Capacity to satisfy wants or

fitness for use

• Transcendental view: A condition of excellence implying fine quality as distinct from poor quality. Quality is achieving or reaching the highest standard as against being satisfied with the sloppy or fraudulent.

• Manufacturing Based view: Conformance to requirements.

• Value-based view: the degree of excellence at an acceptable price and the control of variability at an acceptable cost.

Customer -Driven Definitions:

• Perceived Quality:

An assessment of Quality based on the reputation of the firm.

• Customer Driven Quality:

Quality is meeting or * exceeding customer expectations.

* Delighted

Little q (Old quality) BIG Q (New quality)a) About product a) About organizationb) Technical b) Strategicc) For inspectors c) For everyoned) Led by experts d) Led by management.e) High grade e) Appropriate gradef) About control f) About improvement.g) Symbol of product g) Symbol of product

h) Focus on quality. h) Process and customer focus

Difference. B/w little q and BIG Q.

QUALITY ASSURANCE

Definition:

ISO 8402-1986 defines QA as related to a product or service as: “All those planned or systematic actions necessary to provide adequate confidence that a product or service will satisfy given requirement for quality.”

Quality Assurance

Quality system deploymentAdvanced quality planningComprehensive quality manualsUse of quality costInvolvement of non-production operationFailure Mode and Effect AnalysisStatistical process control

CustomerQuality

Assurance

CustomerFeedbackSystem

Product design& Planning

•Product•Price•Delivery•Quality•Dissatisfy

Us Competitor

A PC D

ProcessOwner

BusinessPlan

StrategicPlan

StrategicMarket

Analysis

Current

Ongoing

Competitiveanalysis

Timeframe

Three forms of Organizational wide QA are:

• Quality Audit,

• Quality Surveys and

• Product Audit

• Quality Auditing is the process of examining the effectiveness of management control programs, the purpose of which is to prevent problems. Quality audits are undertaken to identify problems.

• Quality audit which forms an important part of quality management system, is an independent review conducted to compare the given aspects of quality performance with a standard for that performance.

• It is an action or activity of gathering information for the improvement or corrective action. Audit may be internal and external is used or carried out to verify that the individual elements within quality system are effective in achieving the quality objectives

QUALITY AUDITING

Types of quality audit:

• Suitability quality audit

• Conformity quality audit

• System audit/ corporate audit

• Process Audit

• Product Audit

Approaches for conducting quality audit

• Location oriented quality audit

• Function oriented quality audit

Benefits of the QA

• A quality audit is useful only when remedial actions in deficient areas exposed by the quality audit, are undertaken by company management.

• It identifies the areas that do not conform to the prescribed standards and needs attention.

• Some of the tools like cause and effect diagram, flow charts, pareto charts etc. help in identifying the problems and propose the solutions to the problems.

Quality Surveys

• In quality audit, the word audit implies the existence of established criteria against which plans and their execution can be checked. Whereas the word survey implies the inclusions of the matters not covered by agreed criteria i.e. going further to discover opportunities and unexpected threats.

• Using an overall framework which includes an assessment of both quality results and the quality system. Example – “Company wide assessment of quality”

• Assessing the quality system using published criteria which emphasizes quality results.

• Assessing the quality system using published criteria which emphasizes defined elements of the quality system.

Such surveys can be done in several ways:

• Assessing the quality system using criteria developed within a company for use in evaluating its own operations.

• Assessing the quality system using criteria developed within a company for use in evaluating its suppliers.

• Assessing the quality system for specific assessment purpose.

Product Audit

• Is an assessment of a final product or service on its ability to meet or exceed customer expectations.

• This audit involves conducting periodic tests on the product or obtaining information from customers on a particular service.

• The objective of a product audit is to determine the effectiveness of the management control system.

The Benefits of Total Quality Management (TQM)

Introduction. • TQM as a slogan has been around since 1985. TQM

provides a management system, using various combinations of tools that have been in existence for much longer.

• Each tool has its own use, with benefits that follow. TQM leads to a synergy of benefits.

• Through the application of TQM, senior management will empower all levels of management, including self management at worker level, to manage quality systems.

Records Records ControlControlAuditAudit

ManagementResponsibilities

System Structure

Resources PersonnelPersonnelMaterialMaterial

ResponsibilitiesResponsibilities Management reviewManagement review

ObjectivesObjectivesPolicyPolicy

Interface withcustomer

Elements of the ISO 9000 StandardsElements of the ISO 9000 Standards

Benefits of TQM

• A focused, systematic and structured approach to enhancing customer's satisfaction

• Process improvement methods that reduce or eliminate problems i.e. non conformance costs

• Tools and techniques for improvement - quality operating system

• Delivering what the customer wants in terms of service, product and the whole experience

• Intrinsic motivation and improved attitudes throughout the workforce

• Workforce is proactive - prevention orientated• Enhanced communication • Reduction in waste and rework• Increase in process ownership- employee

involvement and empowerment• Everyone from top to bottom educated• Improved customer/supplier relationships

(internally & externally)• Market competitiveness • Quality based management system for ISO

9001:2000 certification

TQM introduction

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