TQM Symbiosis PPT

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Total Quality Management

By Colonel R.M. Bedi (Retd) – Lead Auditor Quality, Environment, Safety and Automotive Engg.

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Total Quality Management - Introduction

Total – Made up of the whole(or) Complete.

Quality – Degree of Excellence a product or service provides to the customer in present and future.

Management – Act , art, or manner of handling , controlling, directing, etc.

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

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Total Quality Management (TQM)is a management strategy aimed at embedding awareness of quality in all organizational processes.

Total Quality Management

Definition

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TQM requires that the company maintain this quality standard in all aspects of its business. This requires ensuring that things are done right the first time and that defects and waste are eliminated from operations.

Total Quality Management Explanation

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Evolution of quality Era

1900 1920 1940 1960 1980 1990 2000

Craftsman

Foreman

Inspection

SQC

TQC

TQM

TQC &CWQC

Evolution

Years

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Umbrella Model of TQM

SPC

JITTEI

Kaizen

QualityAssurance

Problem-Solving tools

CustomerSatisfaction

Taguchi Methods

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TQM - ObstaclesTop management commitment

Changing Organization Culture

Improper planning

Continuous Training & Education

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Organization Structure & Departments

Data’s & Facts For Effective Decisions

Internal & External Customers-Dissatisfaction

Empowerment & Teamwork

Continuous Improvement

TQM - Obstacles

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TQM - BenefitsImproved Quality

Employee Participation

Team Work

Internal & External Customer Satisfaction

Productivity ,Communication

Profitability & Market Share

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Guru’s of TQM Walter.A.Shewhart (worked in Bell

Telephone) - TQC & PDSA (Plan, Do, Study & Act)

W.Edwards Deming- 14 Points & PDCA Joseph.M.Juran (born in Romania, wrote

Quality Control Handbook) - Juran’s Trilogy – Quality Plan, Quality Control, Quality Improvement – cross functional management tool.

A.Feiganbaum-Customer requirement, CWQC, Employee

Involvement, TQC.

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Guru’s of TQM

A.Feiganbaum (Employee n General Electric)-Customer requirement, Cost of Quality, Employee Involvement, TQC.

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Guru’s of TQM Kaoru Ishikawa (born in Japan, disciple of

Juran & Feigenbaum) - TQC in Japan, SPC, Cause &Effect Diagram,QC.

Philips.B.Crosby. Prevention of Non Conformance, Zero Defects, Quality Measurement and Goal Setting.

Taguchi (born in Japan in 1924) – Pioneer in Quality engineering, product process and system design, parameter design, tolerance design and online Quality Control.

Total Quality Management

Quality Culture &Leadership

Deming’s 14 Point Guidelines

1. Create and Publish the Aims and Purposes of the organization

2. Learn the New Philosophy

3. Understand the Purpose of inspection

4. Stop awarding business based on price alone

5. Improve Constantly and Forever

6. Institute Training

7. Teach and Institute Leadership

Total Quality Management –Deming’s Guidelines

8. Drive out Fear ,Create trust and create a climate for Innovation

9. Optimize the Effects of Teams ,Groups and Staff

10. Eliminate Exhortations For The Work Force

11. Eliminate Numerical Quotas For The Work Force

12. Eliminate Management By MBO

13. Remove Barriers That rob People of Pride Workmanship

14. Educate & Self Improvement For Everyone

Total Quality Management –Deming’s Guidelines

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TQM Elements -Dimensions of Quality

Durability- Useful life ,include repair.

Service-Resolution of problems,ease of repair.

Response- Human relations with Customers.

Aesthetics-Sensory Features.

Reputation- Past performance, Company Image.

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TQM - Quality Cost

Prevention Cost –Planning, Document, Control, Training

Appraisal Cost –Inspection & Tests, Installation, Calibration, M/c Depreciation, Reports & Rejects.

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TQM - Quality Cost

Internal Failure Cost – Scraps, Repair Rework, Design Changes, Defect Failure Analysis, Retests & ReInspection, Downgrading, Down Time.

External Failure Cost – Complaints, Goodwill, Failures, Services & Replacement, Guarantee & Warranty, Compensation, Recall, Loss of Sales, Seconds Sales.

Statistical Tools –Total Quality Management

TQM - Seven QC Tools1. Checklist, Checksheet2. Flow Chart3. Pareto Analysis4. Cause and Effect Diagram5. Histograms6. Graphs – Run Charts7. Scatter Diagram

Checksheet 1. When there are frequent failures at work,

checksheets are used to find the frequency and location of area of failure.

2. Checksheet is an easy to understand method to learn how often certain events occur.

TQM - Seven QC Tools

Flowchart. 1. This is a systematic technique for

describing the process to which the problem belongs.

2. The main purpose of producing a flowchart is to establish a common understanding of all the stages of the process under review.

3. It represents an excellent vehicle for communication of the problem.

TQM - Seven QC Tools

Pareto Analysis. 1. Pareto was an Italian economist who

discovered a universal relationship between value and quantity. He used this technique for assessing uneven distribution of wealth amongst large populations.

2. The use of Pareto charts has given rise to the famous 80-20 rule which suggests that 80% of the problems come from 20% of the tasks.

TQM - Seven QC Tools

Cause And Effect Diagram.1. This is called Ishikawa Diagram based on

invention by Dr Ishikawa.2. There is a systematic arrangement for all

possible causes which gives rise to the effect in the diagram.

3. Before taking up the problem for a detailed study, it is necessary to list down all possible causes so that no important cause is missed out.

TQM - Seven QC Tools

Histogram.1. This displays the distribution of data by

Bar Graphing the number of units of anything in separate categories.

2. Normally, random samples of data under statistical control follows the pattern of a bell-shaped curve.

3. Histogram displays in bar-graph form, showing the frequency with which events occur.

TQM - Seven QC Tools

Graphs – Run Charts.1. The activities in any organisation have to

be carried out within the specified limits of time, quality and productivity.

2. Run Chart provides the simplest possible display of trends within an organisation over specified period of time.

3. Run Charts are used to monitor and determine if the long range average is changing.

TQM - Seven QC Tools

Scatter Diagram.1. This is a simple device for determination

whether two variables are related to each other.

2. Scatter diagram is a Dot Chart.3. Scatter Diagram is used to test the possible

Cause and Effect relationship.

TQM - Seven QC Tools

1. Sigma is a Greek alphabet used to designate the distribution about the mean of any product, process or procedure.

2. Six Sigma is a metric which indicates how the process is behaving.

3. Higher the Sigma value, better the capability of the process to produce defect-free products and services.

TQM – Six Sigma

TQM - Levels of Six Sigma & Cost of Quality

Sigma Defect Rate(PPM)

Cost of Quality

Competitive Level

6 3.4 <10% World Class

5 233 10-15% World Class

4 6210 15-20% Industry average

3 66807 20-30%` Industry average

2 308537 30-40% Non competitive

1 690000 >40% Non competitive

1. Six Sigma is a high performance data driven approach focussed on analysing the root causes of business problems and solving them.

2. It ties the outputs of a business directly to the market place.

TQM – Six SigmaHow Six Sigma Works

1. At the strategic level, the goal of Six Sigma is to align an organisation to its market place and deliver real time improvements in terms of Rs/$ to the bottom line.

2. At the operational level, Six Sigma goal is to move the business products or service attributes within the zone of customer specifications and to shrink process variations.

TQM – Six SigmaObjectives of Six Sigma

TQM – Six SigmaFundamental Steps &Six Sigma Road Map –Breakthrough Strategy

Stage Phase Objective

Identification Define Identify key business issues

Characterisation MeasureAnalyse

Understand current performance levels

Optimisation ImproveControl

Achieve breakthrough improvement

Institutionalisation Standardise Integrate Six Sigma in day to day functioning

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BENCHMARKING

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Bench Marking

Benchmarking is a systematic method by which organization can measure themselves against the best industry practices.

Essence of BM is the process of borrowing ideas and adapting them to gain competitive advantage.

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Definition of Benchmarking By ROBERT CAMP

“It is the search for the industry best practices that lead to superior performance.

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Reasons For Bench Mark

Defining Customer Requirements Establish Goals and Objectives Measures of Productivity Becoming Competitive Industry best practices to be achieved

QUALITY FUNCTION DEPLOYMENT

What is QFD?

Quality Function Deployment (QFD) is a systematic process for motivating a business to focus on its customers.

It is used by cross-functional teams to identify and resolve issues involve in providing products,

processes, services and strategies which will more than satisfy their

customers.

What is QFD?

Understanding Customer Requirements Quality Systems Thinking + Psychology + Knowledge Maximizing Positive Quality That Adds Value Comprehensive Quality System for Customer Satisfaction Strategy to Stay Ahead of The Game

VOICE OF CUSTOMERPrioritizing Requirements

What should we use to prioritize Requirements?

Importance to the Customer Our Current Product Competitor One Competitor Two Our Future Product Improvement Factor Overall Importance Percent Importance

Business Excellence Models

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Malcolm Baldridge National Quality Award1. The award us named after Malcolm Baldridge – Secretary

Of Commerce, USA.2. Objectives of the award are :-

a) To improve productivity, lower costs and increase profitability of American manufacturing units and service industry.

b) Applicable for small, medium and large industries.c) Helping American companies to stimulate quality for the

pride of recognition.d) Establishing guidelines and criteria that can be used by

business, industrial, governmental and other organisations in evaluating their quality improvement ability.

Business Excellence Models

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Malcolm Baldridge National Quality AwardCriteria for Performance Excellence 2009-2010

Point Value1.Leadership - 1202.Strategic Planning - 853.Customer Focus 854.Measurement, Analysis &

Knowledge Management 905.Work force Focus 856.Process Management 85

Sub Total550

Business Excellence Models

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Malcolm Baldridge National Quality AwardCriteria for Performance Excellence 2009-2010

Point Value7. Business Results

a) Product Outcomes 100b) Customer Focused Outcomes 70c) Financial and Market Outcomes 70d) Workforce Focused Outcomes 70e) Process Effectiveness Outcomes 70f) Leadership Outcomes 70Total Points 1000

Business Excellence Models

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European Foundation On Quality Management1.Leadership2.Policy and Strategy3.People4. Partnership and Resources5.Processes6.People Results7.Customer Results8.Society Results9.Key Performance Results

European Foundation Quality ManagementModel

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Business Excellence Models

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International Quality Rating System – Det Norske Veritas

This system evaluates a company’s quality performance through a company structured audit system that provides a road map towards business excellence.IQRS protocol and methodology evaluates quality management performance in a quantitative way, producing a numerical score for 48 business areas free from subjective and personal interpretation.

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Business Excellence Models

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International Quality Rating System – Det Norske Veritas

Based on ISO 9001, QS 9000, TS 16949, EFQM and MB&QA.Business areas covered :-1.Leadership and strategy.2.Employee involvement and communication.3.Quality system documentation and document control.4.Human resources.5.Financial controls and business results.6.Marketing and sales.7.Design and development.8.Purchasing and sub-contracting.9.Operations control.10.Inspection and testing.11.Corrective and preventive action.12.Continual improvement projects.13.Quality audits.14.Stake holder satisfaction and relationship management.

Business Excellence Models

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International Quality Rating System – Det Norske Veritas

Business areas covered (contd.) :-7.Design and development.8.Purchasing and sub-contracting.9.Operations control.10.Inspection and testing.11.Corrective and preventive action.12.Continual improvement projects.13.Quality audits.14.Stake holder satisfaction and relationship management.

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A structured path to Total Quality ManagementInternational Quality Rating System

Mapping out the road beyond ISO 9000

TQM&

Enterprise Risk Management

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Enterprise Risk Management Challenges and motivation Why risk management? What is company-wide risk management? Risk management in practice – what does it

take? Company-wide risk management concept–

details

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Efficient evaluation and control of risks contribute to taking better advantage of business opportunities, strengthening the competitive edge and reducing the time spent by management on “fire fighting”.

The expected reduction in risk and the increased ability to achieve goals will strengthen the owners’ confidence in the business results, management and processes.

Over time this will lead to a reduced risk premium and increased market value of the business. Good risk management is good economics.

Handling of uncertainties and risks should be an integral part of business management – not just a duty to satisfy laws and regulations.

Enterprise Risk Management

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Why risk management?

Companies are experiencing constantly lower tolerance for errors from customers, owners and media. One single event can inflict significant loss or negative media coverage upon the business

The objective of risk management is to increase the value of the business by reducing vulnerability and negative surprises

Risk management is all about understanding risks and using them as opportunities and competitive edge in relation to business objectives

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What is company-wide risk management?

MARKETSNATURE

FRAME CONDITIONS

Operational risk

Strategic risk

Vision, values, objectives

EXTERNAL

HUMANS

Risk management clarifies and ties the strategic goals to the operational goals, thereby strengthening the management’s ability to manage and control

Company-wide risk management covers all major objectives comprises all types of risk

processes- technology/ facilities – people – leadership/ management

INTERN

AL

INTERN

AL

INTERN

AL

Risk management is hindsight in advance and common sense put into system

TQM - Conclusion

In today’s world due to insufficient quality or indifference to quality

lead to disputes, which imposes serious drain on the financial

resources of a company and limits profit potential.

To be competitive in today’s market, it is essential for

manufacturing and service organisations to provide more consistent

quality and value to their owners/customers.

It is high time to develop better and more direct relationships with

our owners/customers, to initiate more teamwork at the jobsite, and

to produce better quality work.

TQM - Beliefs

Following are the universal Total Quality Management beliefs: Owner/customer satisfaction is the measure of quality Everyone is an owner/customer. Quality improvement must be continuous. Analysis of the processes is the key to quality improvement. Measurement, a skilled use of analytical tools, and employee

involvement are critical sources of quality improvement ideas and innovations

Sustained total quality management is not possible without active, visible, consistent, and enabling leadership by managers at all levels

It is essential to continuously improve the quality of products and

services that we provide to our owners/customers.

TQM - Principles People will produce quality goods and services when the meaning of

quality is expressed daily in their relations. Inspection of the process is as important as inspection of the product. Probability of variation, can be understood by scientific methods. Workers work in the system to improve the system; managers work on the

system to improve the system. Total quality management must be consistently translated into guidelines

provided to the whole organization. Envision what you desire , but start working from where you actually are. Cleaner site and safer place to work is also important. Accept the responsibility for quality. Use the principle of get it right, the first time, every time. Understand that quality is a journey, not a destination.

TQM – Sound Thoughts to Begin Now The reasons to begin establishing quality improvement processes are several. For Management:

Provides an invaluable problem-solving tool. Dispels negative attitudes. Management becomes more aware of individual’s work environment. Employees gain a sense of participation. Increases efficiency and productivity. Reduces turnover rate, tardiness, costs, errors, and scrap & rework. Improves communications within and among all departments. Develops management skills that were never taught. Develops overall company awareness and company unity. Rearranges priorities which once seemed locked in place. Builds loyalty to the company. Reveals training requirements in all departments. Lessens the number of defects.

For employee: Provides opportunity for personal growth and

development. Increases innovation. Employees use their knowledge and skills for well-

informed decision-making. Encourages decision-making at the most appropriate

level. Increases motivation and acceptance of new ideas Increases job satisfaction. Recognizes employees for their talents. Develops mutual respect among employees,

management and customers. Promotes teamwork.

TQM – Sound Thoughts to Begin Now

TQM – Steps for Implementation

1 Obtain CEO Commitment

2 Educate Upper-Level Management

3 Create Steering Committee

4 Outline the Vision Statement, Mission Statement, & Guiding Principles

5 Prepare a Flow Diagram of Company Processes

6 Focus on the Owner/Customer (External) & Surveys

7 Consider the Employee as an Internal Owner/customer

8 Provide a Quality Training Program

9 Establish Quality Improvement Teams

10 Implement Process Improvements

11 Use the Tools of TQM

12 Know the Benefits of TQM

1. Obtain CEO Commitment.

2. Educate upper level management.

To educate the upper level management we have to conduct the following: Undergo quality training Commit to TQM and provide the necessary resources. Assist in the development. Serve as a model of expected behavior. Actively lead the way. Drive fear out of the organization Provide suitable recognition. Drive decision making and problem resolution.

TQM – Steps for Implementation

3. Create a steering committee.

Upon completion of upper management’s commitment and training, a steering committee must be created to guide the company through the process of implementing TQM.

Steering committee roles are……. Review and evaluate customer surveys. Determine processes to be improved. Appoint task process improvement teams. Monitor process improvement. Oversee employee recognition for quality

improvement.

Communicate successes and progress.

TQM – Steps for Implementation

4. Outline the Vision Statement, Mission Statement, & Guiding

Principles

Establishing guiding principles:

Important principles to consider including in the company’s

vision statement, mission statement, and guiding principles are

as follows:

Owner/customer Satisfaction.

Improved Safety.

Elimination of errors and defects.

Doing things right, the first time.

Reputation as the best in the field.

Continuous Improvement.

Employee Empowerment.

TQM – Steps for Implementation

6. Focus on the Owner/Customer (External) & Surveys Focusing on a customer’s concerns Several areas to survey, and to take care to provide or honor, are listed

here: Safe operating procedures Accident experience Attitude Professional competence Technical competence of the work force Overall responsiveness to owner/customer requests Planning Condition of equipment Timeliness

TQM – Steps for Implementation

Successful TQM companies have asked their owner/customers the following questions:

How well do we deliver what we promise? How often do we do things right the first time? How often do we do things right on time? How quickly do we respond to your request? How accessible are we when you need to contact us? How helpful and polite are we? How well do we speak your language? How well do we listen to you? How hard do you think we work at keeping you a satisfied

owner/customer? How much confidence do you have in our products or services? Etc…

TQM – Steps for Implementation

7. Consider the Employee as an Internal Owner/Customer

In order to conduct an analysis of the internal processes following steps

should be applied:

List several of your internal owners/customers within your company

Choose one of these owners/customers to focus on for the application of

this technique

Determine the Outputs (products, services, information) that must be

provided to this internal owner/customer

Determine the work Processes your company uses to produce these

Outputs

Learn how your customer’s expectations are met and how satisfaction is

measured

TQM – Steps for Implementation

8. Provide a Quality Training Program

Which employees are trained first?

The successful TQM company provides training to employees in the order illustrated in the list below:

Upper Management Remaining Management In-House Trainers & Facilitators Front-Line Supervisors Non-Supervisory Employees Team Training Training of Subcontractors & Suppliers

TQM – Steps for Implementation

9. Establish quality improvement teams

A quality improvement teams focuses on following areas for

improvement:

Increased Employee Value

Informed Employees

Technical Training

Quality Training

Employee Suggestions

Employee Participation

Higher Quality of Artistry

Personal Development

TQM – Steps for Implementation