TQM Stus Test 1 09

TQMTotal Quality Management

Mobilisation of the whole organization to achieve quality continuously, economically and in entirety.

Study Material for students prepared byProf. U.S. Mohapatra

MBA Dept.Siddaganga Institute of Technology,TumkurSources are : 1. Total Quality Management, by Sridhar Bhat, 2. Total Quality Management, by D D Sharma 3. Other Internet sources

Defining QualityDefining Quality

Perfection

ConsistencyEliminating waste

Fast delivery

Compliance with policies and procedures

Providing a good, usable product

Doing it right the first time

Delighting or pleasing customers

Total customer service and satisfaction

As defined by the International Organization for Standards (ISO):

"TQM is a management approach for an organisation, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society."

Five Views of Quality1. Transcendental View: Neither mind nor matter, but a third entity independent of the two2. Product Based View: Differences in quality amount to differences in the quality of some desired ingredient or attribute. 3. User Based View: Capacity to satisfy wants. 4.Manufacturing-Based-View:Conformance to requirements/specifications. 5. Value Based View:

Seven faces of quality

1. Performance 2. Features 3. Flexibility 4. Conformance5. Durability 6. Serviceability 7. Aesthetics

Dimensions of product quality1. Performance How well the product or service performs the customer’s intended use. For example, the speed of a laser printer.2. Features The special characteristics that appeal to customers. example, power steering and central locking system of an automobile.3. Reliability: The likelihood of breakdown, malfunction or the need for repairs.4. Serviceability: The speed, cost and convenience of repairs and maintenance.5. Durability: The length of time or amount of use before needing to be repaired or replaced.6. Appearances: The effect on human senses – the look, feel, taste, smell or sound.7. Customer service: The treatment received by customers before, during and after the sale.8. Safety: How well the product protects users before, during and after use.

Performance

FeaturesReliability

Conformance

Durability

Benefits of Quality to a Firm1. Positive company image 2. Improves competitive ability 3. increases market share/ profits , reduces costs4. It reduces or eliminates product liability problems,

avoiding unnecessary costs5. high employee morale, improves productivity.

TYPES OF QUALITY (By Kano)a) Indifferent quality: customer does not notice or appreciate. b) Expected quality: customer expects and demandsc) One-dimensional quality. Ex: restaurant’s slow service (not insect).d) Exciting quality: exceeds the customer’s expectations

DETERMINANTS OF QUALITYactivities or accomplishments necessary to achieve qualitya) Quality of design: b) Quality capability of production processes: c) Quality of conformance: d) Quality of customer service: e) Organization quality culture:

Determinants of Service Quality1. Reliability: consistency of performance and

dependability2. Responsibilities: 3. Competence: possession of the required skills and

knowledge 4. Access: involves approachability and ease of contact.5. Courtesy: involves politeness, respect, 6. Communication: 7. Credibility: involves trustworthiness, believability and

honesty. 8. Security: is the freedom from danger, risk or doubt.9. Understanding/knowing the customer 10. Tangibles: include the physical evidence of the

service

Three levels of qualitya) Organisational level:

meet external customer requirements Customer driven performance standards as basis for goal

setting Top management focuses attention at this level

b) Process level: What products and processes Key inputs Internal customers and their needs Middle managers/supervisors

c) Performer level: Job level/Task-design level Accuracy,completeness,innovation,timelyness and cost

All employees

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Principles of Total QualityPrinciples of Total Quality

Customer and stakeholder focusCustomer and stakeholder focus Process orientationProcess orientation Continuous improvement and learningContinuous improvement and learning Empowerment and teamworkEmpowerment and teamwork Management by factManagement by fact Visionary leadership that views TQ as a Visionary leadership that views TQ as a

strategic organizational assetstrategic organizational asset

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Customer and Stakeholder Customer and Stakeholder FocusFocus

Customer is principal judge of Customer is principal judge of qualityquality

Organizations must first understand Organizations must first understand customerscustomers’’ needs and expectations needs and expectations in order to meet and exceed themin order to meet and exceed them

Organizations must build Organizations must build relationships with customersrelationships with customers

Customers are internal and externalCustomers are internal and external

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Process OrientationProcess Orientation

A A processprocess is a sequence of activities is a sequence of activities that is intended to achieve some resultthat is intended to achieve some result

CrossCross--functional Perspective functional Perspective

Continuous Improvement and Continuous Improvement and LearningLearning

Incremental and breakthrough Incremental and breakthrough improvementimprovement–– Products and servicesProducts and services–– Work processesWork processes–– Flexibility, responsiveness, and cycle timeFlexibility, responsiveness, and cycle time

LearningLearning –– why changes are successful why changes are successful through feedback between practices through feedback between practices and resultsand results

Learning CycleLearning Cycle

1.1. PlanningPlanning

2.2. Execution of plansExecution of plans

3.3. Assessment of progressAssessment of progress

4.4. Revision of plans based upon Revision of plans based upon assessment findingsassessment findings

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Empowerment and TeamworkEmpowerment and Teamwork

EmpowermentEmpowerment –– giving people authority to giving people authority to make decisions and promote changemake decisions and promote change

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

Empowerment better serves customers, and Empowerment better serves customers, and creates trust and motivationcreates trust and motivation

Teamwork must exist vertically, horizontally, Teamwork must exist vertically, horizontally, and and interorganizationallyinterorganizationally

Management by FactManagement by Fact

Organizations need good performance Organizations need good performance measures to drive strategies and change, measures to drive strategies and change, manage resources, and continuously manage resources, and continuously improveimprove

Data and information support analysis at all Data and information support analysis at all levelslevels

Typical measures: customer, product and Typical measures: customer, product and service, market, competitive comparisons, service, market, competitive comparisons, supplier, employee, cost and financialsupplier, employee, cost and financial

Visionary Leadership and Visionary Leadership and Strategic OrientationStrategic Orientation

Leadership is the responsibility of top Leadership is the responsibility of top managementmanagement

Senior leaders should be role models Senior leaders should be role models for the entire organizationfor the entire organization

Leaders must make longLeaders must make long--term term commitments to key stakeholderscommitments to key stakeholders

Quality should drive strategic plansQuality should drive strategic plans

PDCA

The Deming Wheel

The process of continuous improvement, called PDSA or, alternatively, PDCA (Plan/Do/Study or Check/Act), is often referred to as the Deming Wheel, although Deming called it the Shewhart Cycle (after its inventor, Dr. Walter Shewhart, a statistician and author of Statistical Methods from the Viewpoint of Quality Control), illustrated below:

Step 1: Identify a problem area or the opportunity for improvement, the reason for working on it, and an indicator- with an emphasis on the customer-for measuring improvement.Step 2: Break down the problem area to determine its subparts, identify the components with the most impact on the customer, clarify the problem statement, and set a target for improvement.Step 3: Evaluate the information gathered, and identify and verify the root causes of the problem. Utilize cause and effect analysis and the questions, "What causes this?" and "Why does this condition exist?" to eliminate the problem's symptoms and identify the underlying or root cause.Step 4: Identify and select the proposed solutions or countermeasures to correct the root cause of the problem identified and verified in step 3. Evaluate potential countermeasures for effectiveness and feasibility, and support the one chosen for implementation with appropriate data such as cost-benefit analysis, barrier/aid identification, and an action plan to assure any barriers are

overcome.Step 5: Confirm that the problem and its root causes have been identified, countermeasures implemented, and the problem decreased and the target for improvement met.Step 6: Assure that once a problem and its root causes have been identified and countermeasures implemented, the problem doesn't recur. Once the data obtained in step 5 confirm that the countermeasures have been successful, the improvement can be standardized, using control charts and/or standards or procedures. Replication should be utilized where the results are successful and can be shared with other areas doing similar work.Step 7: Decide what will be done with any future problems, evaluate the team's effectiveness and lessons learned, and develop an action plan for remaining problems. This step identifies the Deming Wheel as a tool, which should continue to be used to evaluate the problem and any changes in circumstances. By continually turning the wheel, adjustments can be made as circumstances change.

Traditional management /TQM practices: DifferenceCriteria Traditional TQM

Org.struc. Views enterprise as separate, individual performers

Views an enterprise as a system of interdependent processes

Role of people

Views people as a commodity,

as the organization’s true competitive edge.

Definition of quality

is the adherence to internal specifications and standards

go beyond the present needs and expectations

Goals and co-operate only to serve serve one’s customers.

objectives their own interests. Knowledge Limited to manufacturing

and engineering.applicable to all the disciplines

Management systems

Managers oversee departments.Quality problems when individuals do not do their best.

Managers oversee through participative management. Quality results from the organization’s systems

Management’s role

reluctant to change continual improvement and innovation

Union/Mg Rel issues such as wages, health Union becomes a partner Framework Hierarchical

organization Formal and informal

Supplier lowest price. . Suppliers are partners

Control by rules and procedures.

shared values and beliefs

Customers always outsiders Internal/external custo

Responsibility . Manager is a director.

Manager is a facilitator

Motivation by aversive control. provide leadership Competition Competition is

inevitable and inherent in human nature.

improve the methods of pleasing the customer, eliminating waste

Quality Control

Objectives of Quality Control:1. To take the necessary corrective steps to keep the quality

of the product from dropping below the desired level during manufacture

2. To analyze the trend and extent of quality deviation in a part or product during manufacture, and to determine of course, of such deviation by statistical techniques when it cannot reasonably be attributed to chance

3. To avoid, as far as is reasonably possible, having products reach the customer which are of lower quality than that which is considered acceptable

4. To establish standards of quality that are readily acceptable to the customer and economical to maintain

Benefits of Quality Control:1. Improvement in the quality level and uniformity of

incoming materials2. Reduction in inspection costs3. Improvement in the quality level and uniformity of the

finished products with either higher market values for a given sales volume, or greater volume at the same price

4. Improvement in quality-consciousness on the part of those in direct contact with quality control

5. Reduction in rejections, scrap and rework6. Improvement in producer-customer relations7. Improvement in the designs of products and processes to

enable production of a given product standard at lower costs

8. Improvement in technical knowledge and engineering data for use in product and process development and manufacturing design

Steps in Quality Control:

Step I:

Step II:

Step III:

Step IV:

Statistical quality controlIn the field of quality control the areas which require statistical analysis are standardization, specification, and inspection, thus it includes problems both of quality of design and quality of conformance.The objectives of the statistical quality controlFor problems of quality of design:

To assist of determining the essential characteristics of vital raw materials and finished product

To determine to what extent variations in essential characteristics affect the value of a finished product

To problems of conformance: To compare different methods of measuring the essential

characteristics of finished product To establish a continuous, vigilant observation of finished

product which will show any significant change in essential characteristic

Determination of quality standards – specification of desired quality level in terms of weight, specific dimension etc

The design of the production system which would be compatible to the achievement of the specified quality

Control action to ensure that established quality standards are met

Inspection of produced goods to see if the overall quality of lots satisfies the specifications

To determine whether significant variations in essential characteristics of finished product are due to variations in raw materials, or in manufacturing processes, or can be assigned to pure chance, within statistically determined limits of globality

To give warning of any hitherto unrecognized source of variations in the essential characteristics of a finished product, by nothing that the allowable limits of pure chance have been exceeded

To judge between proposed methods for lessening or eliminating the variations in essential characteristics of finished products

Benefits / Advantages Statistical Quality Control : 1. Provides a means of detecting error at inspection2. More uniform quality of production3. Improves the relationship with the customer4. Reduces the number of rejects and saves the cost of

material5. Provides a basis for attainable specifications6. Points out the bottlenecks and trouble spots7. Provides a means of determining the capability of the

manufacturing process8. Promotes the understanding and appreciation of quality

control

Principles of Statistical Quality Control in manufacturing1. Control of quality increases output of saleable goods,

decreases costs of production and distribution, and makes economic mass production possible

2. The quality of manufactured goods is variable with an upward trend under conditions of competitive manufacture

3. The conformance of finished product to its design specifications and standards should be accomplished by avoiding the making of non-conforming material rather than by storing the good from the bad after manufacture is completed

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Statistical Process Control Statistical Process Control (SPC)(SPC)

A methodology for monitoring a A methodology for monitoring a process to identify special causes of process to identify special causes of variation and signal the need to take variation and signal the need to take corrective action when appropriatecorrective action when appropriate

SPC relies on SPC relies on control chartscontrol charts

Control Chart ExampleControl Chart Example

Quality AssuaranceA planned and systematic pattern of all means and actions designed to provide adequate confidence that items and services meet contractual and jurisdictional requirements and will perform satisfactorily in service and includes design.Advantages:

Lower unit cost * Better quality * Better moral of employees * Higher productivity

Forms of Quality Assuarance1) Hardware Quality Assuarance:

Machines, equipments, plants, tools and measuring instruments

2) Software Quality assuarance:Quality insertions, Brouchers, Charts,Polite manner of servicing, Generous claim handling

3) Humanware Quality Assuarance:Task performer workerTop executive, Middle manager, Supervisor

Quality Assuarance Department Quality Planning Quality Control Quality Improvement Quality Audit and Reliability

Examples of Departmental Quality Assuarance : 1) Marketing: Test market, Special surveys2) Product development: Design review, safety analysis3) Supplier relations: Evaluation of initial samples4) Production: Design review, Preproduction trials5) Inspection and test: Inter laboratory tests6) Customer service: Evaluation of maintenance services.

Cost of QualityThe sum of the cost of everything that would not have been necessary if everything else was done right the first time.a) Cost of Quality classified into three major categories:

1. Cost of conformance: Training of employees2. cost of non-conformance: Failure costs

3. Basic operational costs: Laboratory inspection

b) Cost of Quality classified into three major categories:1) Prevention : Field trials, MR

2) Appraisal: Laboratory inspection 3) Failure costs: Internal Failure: Rework, Repair External Failure: Return of goods

Types of Quality Control Problem1) Zero problem: Missed appointments/deliveries 2) Decrease problems: Reduction of production costs 3) Increase problem: Increase productivity/yield