TQM

1

2

BAHRIA UNIVERSITY ISLAMABADDepartment of Management Sciences

Subject: Total Quality ManagementCredit Hours: 3 hours per week

Course Outlines MODULE – I

THE TQM PHILOSOPHIES AND CONCEPTS.

Introduction to Quality. Introduction, The Definitions of Quality, Historical

Evolution of Quality, The Emergence of TQM Philosophy, TQM as a Competitive

Business Quality Philosophy, TQM in Manufacturing and Services.

The TQM Concepts. The Definition of TQM, The TQM Concepts, Dr William

Edwards Deming’s Concepts of TQM, Joseph M. Juran’s Steps of TQM, Phillips

B. Crosby’s Concepts of TQM, A.V. Feigenbaum’s Philosophy of TQM, Dr Kaoru

Ishikawa’s Commitments of TQM, Dr. Genichi Taguchi’s Principles of TQM, John

S. Oakland’s Approaches of TQM, Dr Nawar Khan’s Contributions to TQM, The

Synthesis of Common Concepts and Principles of TQM Philosophy, The

Common Concepts (Factors and Elements) of TQM Philosophy.

3

MODULE –II

THE TQM TOOLS AND TECHNIQUES

The TQM Transformation Strategy. Introduction, Transformation Strategy of TQM

Philosophy, The Difficulties in Transformation, TQM Tools and Techniques.

The TQM Tools and Technique. Introduction, The Role of TQM Tools and Techniques in

Quality Management, The Power of Quality Tools and Techniques, Achievements

through Application of TQM Tools and Techniques, Selecting the Right Quality Tools

and Techniques for the Right Purpose, Classification and Functions of TQM Tools and

Techniques, Forms of TQM Tools and Techniques, Types of TQM Tools and

Techniques, The Impact of TQM Tools and Techniques on Processes, Affiliation of the

TQM Tools and Techniques, Discussion of a few TQM Tools and Techniques, Selection

and Implementation of TQM Tools and Techniques,

Six - Sigma Quality.

Introduction, Design Specification, Six - Sigma Quality, Six - Sigma (Metrics) in

Practices, Six - Sigma (Metrics) versus Six - Sigma (Technique), Implementation

Methodology of 6-Sigma Technique, Process Capability, Process Capability Indices,

Quality Improvement Mechanism, The Vital Role of Technology, The Status of Six -

Sigma Technique and Technology in the Country.

4

MODULE –III

QUALITY MANAGEMENT SYSTEMS

The Development of a Quality Management System. Introduction, The Quality

Evolution, The First Stage – Inspection, The Second Stage – Quality Control (QC), The

Third Stage – Quality Assurance System (QAS), The Fourth Stage – Quality System

Accreditation (QSA), National Quality Improvement Initiatives.

A Quality Management System Standard. Introduction, Principles of Quality

Management System Standard, Clauses of ISO 9001:2000 Quality Management

System Standard, Detail Descriptions of each Clause of the Quality Management

System Standard – Requirements, Correspondence Between ISO 9000:1994 and

Version 2000, ISO 9000 Quality Management System Standard Documentation, ISO

9000 Quality Management System Audits, ISO 9000 Quality Management System

Certification, Choosing an Accredited Certification Organization, ISO 9000

Continuous Quality Improvement Model, Others Quality Management system

Standards, ISO 9000 Quality Management System Standard and Pakistan National

Quality Award, Implementing the ISO 9000 Quality Management System Standard,

Benefits of ISO 9000 Quality Management System Standard Certification, Update on

ISO 9001:2008.

5

MODULE – IV

THE TQM AWARD MODELS

The Fundamentals of a TQM Assessment Award Model. Introduction, Major

Attributes of a TQM Assessment Award Model, Validation of a TQM Model,

The Validation Process, A Complete TQM Philosophy Model.

The TQM Award Models. Introduction, Types of TQM Models, Conceptual

Models, Implementation Models, Assessment Models, The Existing TQM

Assessment Models, Criteria Set of Different National Quality Awards, The

Best Known TQM Assessment Award Models.

The Best Known TQM Assessment Award Models. Introduction, The

Deming Prize, The Malcolm Baldrige National Quality Award, The European

Quality Award, The International Quality Award, The Pakistan National

Quality Award, TQM (IQA Factors and Elements) can Lead to CBP, The TQM

House Based on the IQA Model, TQM Philosophy Challenges and the

National Initiatives.

6

Recommended Books 1.Nawar Khan (1999). Total Quality Management – Concepts, Tools, Systems and Awards

2. A. C. Parkinson, First year Engineering Drawing

3. Inspection and Gauging, Clifford W Kennedy and Donald E Andrews, New Yark4. Vincent, K.O. and Ross, E. J. (1995). Principle of Total Quality, London Kogan Pages 5. Evans, James R. and Lindsay, William M. (1999). The Management and Control of Quality. 4th edition New York West Publishing Company. Besterfiled, D.H., Michna, C.B., Besterfield, G.H. and Sacre, B.M (1999). Total Quality Management, Pearson Education,Inc SingaporeGrading:

a. Quizzes / Homework 10%

b. Mid Term Exam 30%

c. Term Project 10%

d. Final Exam 50%

7

TOTAL QUALITY MANAGEMENT

T=TOTALITY:- This means participation, involvement and commitment of all personnel directly responsible for quality of a process at a primary level, or indirectly supporting that quality function at secondary or tertiary level. Every one, at all levels of hierarchy from top (Chief Executive Officer ‘CEO’ or General Manager ‘GM’ or President of an organization) to the bottom level (shop floor workers and supervisors) of an organization (an enterprise, a company, or an institution etc), in all functions of the business (like human resource management, marketing, financing, legal, sale, purchase and production etc), in all the production or provision processes and in all departments and divisions of an enterprise to contribute to the quality cause of products or services, its management and continuous improvements in all its forms and context.

8

• The second alphabet ‘Q’ stands for Quality. This big ‘Q’ quality concept differs from the small ‘q’ quality. The misconception of ‘q’ quality persists in the past in which quality was considered as the major responsibility of producers (operators), inspectors and of their respective department. Other functions (departments) were considered peripheral or secondary and mostly were not held responsible for the poor quality and high cost of the products produced or services provided. Now the big ‘Q’ quality concept holds every one responsible, at all levels, in all processes, in all departments and in all functions of a business. They must contribute to the quality of a product or service either in a direct or indirect role but if not, then their job descriptions need review and revision. If still their role is not justified, then they are not required in that department or division or even in the organization. No one is exempted from the responsibility to contribute towards quality at their respective level and scope.

9

• As such, the big ‘Q’ quality concepts also brought a new definition to quality as Total Quality instead of partial quality as existed in the past, like manufacturing based quality definition, user based quality, fitment based quality and customer’s satisfaction based quality definition etc (Evan & Lindsay, 2005). Quality can now be defined in a generic term of totality as ‘totality of characteristics of an entity that bear on its ability to satisfy the stated and implied needs of customers’. An entity can be an activity, a process, a product, or / an organization.

10

Quality Characteristics / Parameters / Variables of any Entity (Product / Service)

Followings are the generic characteristics / parameters

of any entity as applicable:

• Specification, Dimension, Strength, Functionality,

Survivability, Sustainability, Time, Precision, Cost,

Performance, Utility, Intended deliverable, Aesthetic

Appearance, Acceptability, Cultural, Impact,

Marketability, Stability, Usability, Social impact,

Influence, Knowledge Base Integration with existing

service, Color, Shape, Durability, Flexibility, Life cycle,

Weight, Size, Interactive, Easily accessible, Consistent,

11

Cannibalization, Long lasting, Cost effective,

Harmless, Easily manageable, Environmental

protocols, Meet ethical values, Address

religious issues, Address cultural issues, Local

standards, International standards, Reliability,

Material Taste, Smell, Fitness, Traceability,

Availability, Re-usability, Documentation

12

Customer Satisfaction User Friendly In-

time response Packing Consistency

Maintainability Specification Efficiency

Portability Soundless Conformance Width

Depth Length Height Security Safety

Speed Serviceability Strength Accuracy

Simplicity Operateability Power

consumption Measurability

Transformability Presentation Back up

supportability Light weight Economical

13

Water proof, Shelf life, Preciseability,

Breakability, Manageability,

Competitiveness, Under warranty,

Pressure, sustainability, Good heat ability,

Less carbon Dioxide, Non combustible,

Purity, Supportable, Motivational, Robust

/Toughness, Firmness, Comfortable, Long

lasting, Having resale value

14

DESIGN SPECIFICATIONS

• PARAMETERS / variables. Already discussed in the preceding slide.

• LIMITS. These are the two extreme permissible value limits for

parameters. The upper limit for a parameter is the largest value permitted

for that particular variable and the lower limit for a parameter is the

smallest value permitted for that parameter. The limits of value for a

parameter are derived from the combination of the design values with the

limits of tolerance.

• TOLERANCE. The tolerance on a parameter is the margin of error

allowed on it for reasonable inaccuracy in workmanship and applications.

It is the total permitted variation in the actual value of that parameter. The

difference between the two limits of value (Upper Tolerance Limit, UTL

and Lower Tolerance Limit, LTL) for a parameter gives the tolerance. The

greater the tolerances that can be allowed, the more cheaply can the work

be produced.

15

• ACCURACY. Accuracy is defined as the closeness of agreement

between an observed value and an accepted reference value. The lack of

accuracy reflects a systematic bias in the measurement such as a gauge

out of calibration, worn out, or used improperly by the operator. Accuracy

is measured as the amount of error in a measurement in proportion to the

total size of the measurement. One measurement is more accurate than

another if it has a smaller relative error.

• PRECISION. Precision, or repeatability, is defined as the closeness of

agreement between randomly selected individual measurements.

Precision, therefore, relates to the variance of repeated measurements.

16

• The third alphabet ‘M’ stands for Management; which represents all actions of the overall system that determine the quality mission, policy, objectives and responsibilities and implement them by incorporating quality planning, strategy, control, assurance and improvements within the quality system.

BASIC MANAGERIAL FUNCTIONS• PLANNING• ORGANIZING• STAFFING• LEADING• CONTROLLING

17

• Hence, the TQM Philosophy is considered as a management approach of an organization focused on quality, embedded in its business strategy, based on the participation, involvement and commitment of all its members at all levels of hierarchy and aimed at long term success through customer satisfaction and gives benefits to all members of the organization, stakeholders and to the society at large. In its simplest form, TQM is a Continuous Quality Improvement (CQI) in all its forms and manifestations.

18

• The TQM philosophy was considered by some quality experts and gurus as the business quality miracle of the 20th century because of its engulfing and long term effects on all functions of an organization with particular reference to the business position in a fiercer economic competitive era. They are also of the opinion that such a mega phenomenon of the 20th century can not truly be represented by this three alphabet acronym of TQM; however, they have not yet suggested or given hint for any substitute title.

A GENERIC MODEL OF PRODUCTION SYSTEM (Manufacturing /service)

TOTAL TRANSFORMATION PROCESS

TOTAL INPUTS1. MEN 2. MATERAIL3. MACHINES4. MONEY

TOTAL OUTPUTS

1. PRODUCTS

2. SERVICES

TOTAL TRANSFORMATION FROM INPUTS TO OUTPUTS

SOURCES OF VARIATION IN PRODUCTION PROCESSES

Inputs OutputsProcess

Operators Methods

Materials

Tools

Machines Environment

MeasurementInstruments

Human InspectionPerformance

VARIATIONS

• Production processes face variation in:– Strength, thickness or moisture content

of materials– Strength & composition of cutting tools– Measurement gauges used– Human inspection capabilities

• Variation occurs at random, but combined effect can be predicted statistically

• Common causes of variation – factors present as natural parts of process

• Result from design of system

Special causes of variation (assignable causes)

• Arise from external sources not inherent in the process– Bad material batch from supplier– Poorly trained operators– Excessive tool wear– Improper calibration of equipment

• Unnatural variation – easily detectable• Economical to correct

• System governed only by common causes is stable

• Understanding of differences between common & special causes

• Less variation benefits:– Producers (higher productivity due to

less inspection, scrap & rework)– Customers (products with similar

quality characteristics)

25

OTHER QUALITY DEFINITIONS

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

26

JUDGEMENTAL CRITERIA

• Quality = superiority or excellence

• “Goodness of a product”

• “You just know it when you see it”

• little practical value to managers

• No means through which quality can be measured for decision making

27

PRODUCT-BASED CRITERIA

• Quality is a function of a specific, measurable variable

• Higher amount of product characteristics = higher quality

• Quality is mistakenly related to price

• Higher the price, higher the quality (Not necessarily true)

28

USER-BASED CRITERIA

• Quality is determined by what customer wants

• Quality = Fitness for intended use

• How well the product:– Performs its intended purpose– Meets consumers’ needs

29

VALUE-BASED CRITERIA

• “Quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost.”

30

VALUE-BASED CRITERIA

• Purchase decision involves trading off the quality against the price

• Because many of the attributes of quality are subjective assessments, therefore most of these definitions are subjective

• Unlike manufacturing and product-based approaches

31

VALUE-BASED CRITERIA

• Offering greater satisfaction at comparable price

• Procter & Gamble brought in VALUE PRICING

• Consumer brand loyalty• More consistent sales• Improvement of product characteristics• Internal efficiencies

32

MANUFACTURING BASED CRITERIA

• Quality = Conformance to specifications• Quality is

“about manufacturing a product that people can depend on every time

they reach for it”• Achieved at Coca-Cola through rigorous

quality & packaging standards

33

PRINCIPAL QUALITY DIMENSIONS /

CHARACTERISTICS

1. Performance

2. Features

3. Reliability

4. Conformance

5. Durability

6. Serviceability

7. Aesthetics

8. Perceived quality

34

Performance

• a product’s primary operating characteristics. Example: A car’s acceleration, braking distance, steering and handling

35

Features

• the “bells and whistles” of a product. A car may have power options, a tape or CD deck, antilock brakes, and reclining seats

36

Reliability

• the probability of a product’s surviving over a specified period of time under stated conditions of use. A car’s ability to start on cold days and frequency of failures are reliability factors

37

Conformance

• the degree to which physical and performance characteristics of a product match pre-established standards.

• car’s fit/finish, freedom from noises can reflect this.

38

Durability

• the amount of use one gets from a product before it physically deteriorates or until replacement is preferable.

• For car - corrosion resistance & long wear of upholstery fabric

39

Serviceability

• speed, courtesy, competence of repair work.

• auto owner -access to spare parts.

40

Aesthetics

• how a product looks, feels, sounds, tastes, or smells.

• car’s color, instrument panel design and “feel of road” –

• make aesthetically pleasing

41

Perceived quality

• Subjective assessment of quality resulting from image, advertising, or brand names.

• car, - shaped by magazine reviews-manufacturers’ brochures

42

QUALITY IN SERVICES

Service is “ a social act which takes place in direct contact between the customer and representatives of the service company ”

Service quality includes quality of:

Core services

Facilitating services

Improvement in customer services

Cost of acquiring new customers is higher than cost of retaining customers

43

SERVICE AS A PRODUCTION SYSTEM

Application of Deming’s view of production systems

Determination of:

Customers & suppliers

Inputs & outputs

Key processes

Research requirements

Meeting or exceeding customer expectations

Develop performance standards & specifications

44

SERVICE AS A PRODUCTION SYSTEM

Higher Education as a Production System

SUPPLIERSfamilieshigh schoolscollegesbusinesses

CUSTOMERSgraduate schoolsbusinessesfamiliessocietystudents

customerresearch

design and redesign

INPUTSstudentsfacultysupport staff

OUTPUTSable studentsnew knowledgeresearch findings

Teaching, counseling,scientific research

PROCESSES

45

UNIQUE DIMENSIONS OF SERVICES

Time

Timeliness

Completeness

Courtesy

Consistency

Accessibility & convenience

Accuracy

Responsiveness

46

REQUIREMENTS OF SERVICES

Each customer has different requirements

Higher degree of customization needed

Intangible output

Services are produced & consumed simultaneously

Quality has to be trained & built into the service

Customers are involved in the service process

Labor intensive

Human interaction necessary

Large volumes of customers have to be handled

47

COMPONENTS OF SERVICE SYSTEM QUALITY

Challenge of managing quality

Determining standards for intangible quality characteristics

Set judgmentally & then tested

Determinants of perceived service quality:

Employee performance & behavior

Service transaction speed

48

ROLE OF EMPLOYEES

Quality of human interaction used as an evaluating tool by customers

Higher the employee job satisfaction, higher the customer satisfaction

“If we take care of our employees, they will take care of our customers”

Front-line employees have direct contact with customers

Should be given rewards, higher pays, training & authority

49

ROLE OF INFORMATION TECHNOLOGY

Processing large volumes of information

Meeting customer demand of quicker service

Used to better serve customers

Easier for customers to do business with a company

Lesser use of human force

Less personal interaction – quality ‘may’ decrease

Service providers must find the right balance

50

ROLE OF INSPECTION AND INSPECTORInspection is the critical examination of parametres of any entity

Basic inspection start from human senses like, seeing, feeling, touching, tasting and hearing.

Technology help in enhancing human capability like mechanical instruments and gauges, electrical and electronics gadgetry and even the hybrid arrangement

There are different types of inspections, mostly based on time and place, like IN inspection, Stage inspection and Final inspection etc

51

DEMING’S UNIVERSAL FOURTEEN POINTS FOR MANAGEMENT ARE SUMMARIZED AS FOLLOWS:

• CREATE CONSISTENCY OF PURPOSE WITH A PLAN.

• ADOPT THE NEW PHILOSOPHY OF QUALITY.

• CEASE DEPENDENCE ON MASS INSPECTION.

• END THE PRACTICE OF CHOOSING SUPPLIERS BASED

SOLELY ON PRICE.

• IDENTIFY PROBLEMS AND WORK CONTINUOUSLY TO

IMPROVE THE SYSTEM.

• ADOPT MODERN METHODS OF TRAINING ON THE JOB.

• CHANGE THE FOCUS FROM PRODUCTION NUMBERS

(QUANTITY) TO QUALITY.

52

•DRIVER OUT FEAR.

•BREAK DOWN BARRIERS BETWEEN DEPARTMENTS.

•STOP REQUESTING IMPROVED PRODUCTIVITY WITHOUT

PROVIDING METHODS TO ACHIEVE IT.

•ELIMINATE WORK STANDARDS THAT PRESCRIBE NUMERICAL

QUOTAS.

•REMOVE BARRIERS TO PRIDE OF WORKMANSHIP.

•INSTITUTE VIGOROUS EDUCATION AND RETRAINING.

•CREATE A STRUCTURE IN TOP MANAGEMENT THAT WILL

EMPHASIZE THE PRECEDING THIRTEEN POINTS EVERY DAY.

53

JURAN’S TEN STEPS TO QUALITY IMPROVEMENT ARE

• 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 SYSTEMS AND PROCESSES OF THE COMPANY.

54

CROSBY CONCEPTS

1. MANAGEMENT COMMITMENT. TOP MANAGEMENT MUST BECOME

CONVINCED OF THE NEED FOR QUALITY AND MUST CLEARLY

COMMUNICATE THIS TO THE ENTIRE COMPANY BY WRITTEN

POLICY, STATING THAT EACH PERSON IS EXPECTED TO PERFORM

ACCORDING TO THE REQUIREMENT OR CAUSE THE REQUIREMENT

TO BE OFFICIALLY CHANGED TO WHAT THE COMPANY AND THE

CUSTOMERS REALLY NEED.

2. QUALITY IMPROVEMENT TEAM. FORM A TEAM COMPOSED OF

DEPARTMENT HEADS TO OVERSEE IMPROVEMENTS IN THEIR

DEPARTMENTS AND IN THE COMPANY AS A WHOLE.

55

3. QUALITY MEASUREMENT. ESTABLISH MEASUREMENTS

APPROPRIATE TO EVERY ACTIVITY IN ORDER TO IDENTIFY

AREAS IN NEED OF IMPROVEMENT.

4. COST OF QUALITY. ESTIMATE THE COSTS OF QUALITY IN

ORDER TO IDENTIFY AREAS WHERE IMPROVEMENTS WOULD

BE PROFITABLE.

5. QUALITY AWARENESS. RAISE QUALITY AWARENESS AMONG

EMPLOYEES. THEY MUST UNDERSTAND THE IMPORTANCE OF

PRODUCT CONFORMANCE AND THE COSTS OF NON

CONFORMANCE.

6. CORRECTIVE ACTION. TAKE CORRECTIVE ACTION AS A

RESULT OF STEPS 3 AND 4.

56

7. ZERO DEFECTS PLANNING

ALL LEVELS OF MANAGEMENT MUST BE TRAINED IN HOW TO

IMPLEMENT THEIR PART OF THE QUALITY IMPROVEMENT PROGRAM.

8. SUPERVISOR TRAINING

FORM A COMMITTEE TO PLAN A PROGRAM APPROPRIATE TO THE

COMPANY AND ITS CULTURE.

9. ZERO DEFECTS DAY

SCHEDULE A DAY TO SIGNAL TO EMPLOYEES THAT THE COMPANY

HAS A NEW STANDARD.

10.GOAL SETTING

INDIVIDUALS MUST ESTABLISH IMPROVEMENT GOALS FOR

THEMSELVES AND THEIR GROUPS.

57

11. ERROR CAUSE REMOVAL

EMPLOYEES SHOULD BE ENCOURAGED TO INFORM MANAGEMENT

OF ANY PROBLEMS THAT PREVENT THEM FROM PERFORMING

ERROR-FREE WORK.

12. RECOGNITION.

GIVE PUBLIC, NON-FINANCIAL APPRECIATION TO THOSE WHO MEET

THEIR QUALITY GOALS OR PERFORM OUTSTANDINGLY.

13. QUALITY COUNCILS

COMPOSED OF QUALITY PROFESSIONALS AND TEAM

CHAIRPERSONS, QUALITY COUNCILS SHOULD MEET

REGULARLY TO SHARE EXPERIENCES PROBLEMS, AND

IDEAS.

14. DO IT ALL OVER AGAIN

REPEAT STEPS 1 TO 13 IN ORDER TO EMPHASIZE THE

NEVER ENDING PROCESS OF QUALITY IMPROVEMENT.

58

AV FEIGENBAUM PHILOSOPHY

• FEIGENBAUM IS BEST KNOWN FOR COINING THE PHRASE

TOTAL QUALITY CONTROL IN THE UNITED STATES

FEIGENBAUM’S PHILOSOPHY IS SUMMARIZED IN THIS THREE

STEPS TO QUALITY AS FOLLOWS.

1. QUALITY LEADERSHIP. A CONTINUOUS MANAGEMENT EMPHASIS

IS GROUNDED ON SOUND PLANNING RATHER REACTION TO

FAILURES MANAGEMENT MUST MAINTAIN A CONSTANT FOCUS

AND LEAD THE QUALITY EFFORT.

59

2. MODERN QUALITY TECHNOLOGY.

THE TRADITIONAL QUALITY DEPARTMENT CANNOT RESOLVE 80 TO

90 PERCENT OF QUALITY PROBLEMS. THIS TASK REQUIRES THE

INTEGRATION OF OFFICE STAFF AS WELL AS ENGINEERS AND

SHOP FLOOR WORKERS IN THE PROCESS WHO CONTINUALLY

EVALUATE AND IMPLEMENT NEW TECHNIQUES TO SATISFY

CUSTOMERS IN THE FUTURE.

3. ORG COMMITMENT.

CONTINUOUS TRAINING AND MOTIVATION OF THE ENTIRE

WORKFORCE AS WELL AS INTEGRATION OF QUALITY IN BUSINESS

PLANNING INDICATE THE IMPORTANCE OF QUALITY AND PROVIDE

THE MEANS FOR INCLUDING IT IN ALL ASPECTS OF THE FIRM’S

ACTIVITIES.

60

DR KAORU ISHIKAWA PHILOSOPHY• AN EARLY PIONEER IN THE QUALITY REVALUATION IN JAPAN, KAORU

ISHIKAWA WAS THE FOREMOST FIGURE IN JAPANESE QUALITY

KAORU ISHIKAWA WAS INSTRUMENTAL IN THE DEVELOPMENT OF

THE BROAD OUT LINES OF JAPANESE QUALITY STRATEGY, CONCEPT

OF CWQC, THE AUDIT PROCESS USED IN THE DETERMINING

WHETHER A COMPANY WILL BE SELECTED TO RECEIVE THE DEEMING

AWARD, TEAM-BASED PROBLEM SOLVING AND A VARIETY OF

PROBLEM-SOLVING TOOLS THAT HE THOUGHT ANY WORKER COULD

USE. DR. KAORU ISHIKAWA ALSO INFLUENCED THE DEVELOPMENT

OF A PARTICIPATIVE, BOTTOM-UP VIEW OF QUALITY, WHICH BECAME

THE TRADEMARK OF THE JAPANESE APPROACH TO QUALITY

MANAGEMENT.

61

SOME KEY ELEMENTS OF DR. KAORU ISHIKAWA PHILOSOPHY

• QUALITY BEGINS WITH EDUCATION AND ENDS WITH EDUCATION.

• THE FIRST STEP IN QUALITY IS TO KNOW THE REQUIREMENTS OF

CUSTOMERS.

• THE IDEAL STATE OF QUALITY CONTROL OCCURS WHEN

INSPECTION IS NO LONGER NECESSARY.

• REMOVE THE ROOT CAUSE, NOT THE SYMPTOMS.

• QUALITY CONTROL IS THE RESPONSIBILITY OF ALL WORKERS AND

ALL DIVISIONS.

62

• DO NOT CONFUSE THE MEANS WITH THE OBJECTIVES.

• PUT QUALITY FIRST AND SET YOUR SIGHTS ON LONGER-TERM

PROFITS.

• MARKETING IS THE ENTRANCE AND EXIT OF QUALITY.

• TOP MANAGEMENT MUST NOT SHOW ANGER WHEN FACTS ARE

PRESENTED BY SUBORDINATES.

• NINETY-FIVE PERCENT OF PROBLEMS IN A COMPANY CAN BE

SOLVED WITH SIMPLE TOOLS FOR ANALYSIS AND PROBLEM

SOLVING.

• DATA WITHOUT DISPERSION INFORMATION (VARIABILITY) IS

FALSE DATA.

63

COMMON FACTORS AND ELEMENTS

S. No TQM FACTORS TQM ELEMENTS

1 Top Management Role

1.1 Leadership

1.1.1 Vision

1.1.2 Style

1.1.3 Driving Force

1.2 Commitment

1.3 Involvement and Participation

1.4 Team Work

1.5 Communication

64

2 Customer and Market Focus

2.1 Customer Focus

2.2 Marketing

3 Policy

3.1 Quality Policy

3.2 Quality Mission and Objectives

4 Planning

4.1 Long Term Quality Planning

4.2 Short Term Quality Planning

65

5 Quality Assurance

5.1 Quality Management System

5.2 Information and Data Management

5.3 Quality Losses

5.4 Cross Functional Management

5.5 Processes

5.6 Standardization

5.7 Products and Services

5.8 Measurement and Control

66

5.8.1 Measurement

5.8.2 Control

5.9 Audit

5.10 Integrated System Approach

5.10.1 Suppliers

5.10.2 Company

5.10.3 Distributors

5.10.4 Customers

67

6 Resources Management

6.1 Human Resource

6.1.1 Human Resource Management

6.1.2 Education

6.1.3 Training

6.1.3.1 Quality Training

6.1.3.2 Job Training

6.1.4 Involvement

6.1.5 Participation

68

6.1.6 Team Work

6.1.7 Empowerment

6.1.8 Reward and Recognition

6.1.9 Motivation

6.2 Financial Resources

6.3 Material Resources

6.3.1 Technology and Equipment

6.3.2 Support and Maintenance

69

7 Quality Culture

7.1 Quality Awareness

7.2 Corporate Quality Culture

8 Protection

8.1 Health and Safety

8.2 Environment

70

9 Continuous Improvement

9.1 Review

9.2 Improvement Activities

9.3 Creativity, Innovation and Design

10 Satisfaction of the Stakeholders

10.1 Customers

10.2 Employees (Including Management)

10.3 Society

10.4 Shareholders

10.5 Government

71

TQM PHILOSOPHY

MANAGEMENT

THEORY

CONCEPTS

MINDSETS

APPROACHES

LAWS PRINCIPLES

MANAGEMENT PRACTICES

THEORIES

OPERATIONALIZATION

PLANNING

ROOT CAUSE ANALYSIS

DATA COLLECTION

STRATEGY

PROBLEM SOLVING

GRAPHICS

RULES

72

TQM PHILOSOPHY

THEORITICAL/

ABSTRACT KNOWLEDGE

(PSYCHOLOGY/PHYSIOLOGY/ SOCIALOGY/ SCIENTIFIC

MANAGEMENT)

GURUSPEERS

SCHOLARS PROPONENTS

PRACTICAL/

REAL KNOWLEDGE

TRANSFORMATION

TOOLS

TECHNIQUES

SYSTEMS

AWARDS

STANDARDS

73

Summarized Scored Criteria Set of DP Model (2005)

S. NoFactors Weighted Score

(%)

1. Management Policies and their Deployment 20

2. New Product Development, Work Process Innovation

20

3. Maintenance and Improvement 20

4. Management Systems 10

5. Information Analysis and Utilization of IT 15

6. Human Resource Development 15

Total Score 100

74

1. Management policies and their Development

(20)

2. New product development Work process Innovation (20)

5. Information analysis and

utilization of IT (15)

3. Maintenance and Improvement

(20)

6. Human Resource

Development (15)

Core Quality System (50)

4. Management System (10)

THE DP FRAMEWORK

75

MBNQA CRITERIA SET (2004) (Factors only) (1000 marks)

1. Leadership (12%)

2. Strategic Planning (8.5%)

3. Customer and Market Focus (8.5%)

4. Measurement, Analysis and Knowledge Management (9%)

5. Human Resource Focus (8.5%)

6. Process Management (8.5%)

7. Business Results (45%)

76

77

MBNQA FRAMEWORK

78

79

80

EQA CRITERIA SET (2004) (FACTORS ONLY) (1000 MARKS)

1. LEADERSHIP (10%)

2. POLICY AND STRATEGY (8%)

3. PEOPLE (9%)

4. PARTNERSHIP AND RESOURCES (9%)

5. PROCESSES (14%)

6. CUSTOMER RESULTS (20%)

7. PEOPLE RESULTS (9%)

8. SOCIETY RESULTS (6%)

9. EY PERFORMANCE RESULTS (15%)

81

82

SUMMARIZED SCORED CRITERIA SET OF PNQA MODEL

S No Main Factors Weightage (%)

Marks

1 Top Management Leadership and Management of Quality 17 170

2 Use of Quality Data and Information 10 100

3 Human Resource Management 15 150

4 Customer Focus and Satisfaction 10 100

5 Quality Assurance of External Suppliers 10 100

6 Process Management 10 100

7 Business Results 28 280

Total 100 1000

83

ProcessManagement

6.0

HumanResource

Management3.0

QualityAssurance of

ExternalSuppliers

5.0

Use of QualityData &

Information2.0 %

CustomerFocus andSatisfaction

4.0

BusinessResults

7.0

TopManagement

Leadership AndManagement of Quality

1.0

THE PNQA MODEL FRAMEWORK

84

UQA CRITERIA SET (2004) (Factors only) (1000 marks)

1. TOP MANAGEMENT ROLE (13.5%)

2. CUSTOMER AND MARKET FOCUS (4.3%)

3. POLICY (3.2%)

4. PLANNING (2.4%)

5. QUALITY ASSURANCE (21%)

6. RESOURCES MANAGEMENT (13.3%)

7. QUALITY CULTURE (5%)

8. PROTECTION (2.8%)

9. CONTINUOUS IMPROVEMENT (7.5%)

10. SATISFACTION OF THE STAKEHOLDERS (27%)

85

SEQUENCE TQM FACTORS SCORE % EQUIVALENT MARKS

1. Top Management Roles 13.5 135

2. Customer and Market Focus 4.3 43

3. Policy 3.2 32

4. Planning 2.4 24

5. Quality Assurance 21 210

6. Resources Management 13.3 133

7. Quality Culture 5 50

8. Protection 2.8 28

9. Continuous Improvement 7.5 75

10. Satisfaction of the Stakeholders

27 270

TOTAL SCORE 100 1000

86

CBP

TOP M

AN

AG

EMEN

T RO

LE

CUSTOMER AND MARKET FOCUS

POLICY

PLANNING

RESOURCES MANAGEMENT

QUALITYASSURANCE

QUALITYCULTURE

PROTECTION

CONTINUOUS IMPROVEMENT

SATISFA

CTIO

N O

F TH

E STAK

EHO

LDER

S

1234

FINAL FRAMEWORK OF THE TQM IQA MODELFRAMEWORK OF UQA

87

DETAILED SCORES OF THE TQM UQA MODEL CRITERIA SET (FACTORS AND ELEMENTS)

S. No TQM FACTORS TQM ELEMENTS SCORE %

EQUIVALENT MARKS

1 Top Management Role 13.5 135

1.1 Leadership 7.3 73

1.1.1 Vision 3.6 36

1.1.2 Style 1.2 12

1.1.3 Driving Force 2.5 25

1.2 Commitment 2 20

1.3 Involvement and Participation

1 10

1.4 Team Work 1.6 16

1.5 Communication 1.6 16

88

2 Customer and Market Focus

4.3 43

2.1 Customer Focus 2.5 25

2.2 Marketing 1.8 18

3 Policy 3.2 32

3.1 Quality Policy 1.8 18

3.2 Quality Mission and Objectives

1.4 14

4 Planning 2.4 24

4.1 Long Term Quality Planning

1.5 15

4.2 Short Term Quality Planning

0.9 9

89

5 Quality Assurance 21 210

5.1 Quality Management System

2.9 29

5.2 Information and Data Management

1.3 13

5.3 Quality Losses 2 20

5.4 Cross Functional Management

0.9 9

5.5 Processes 1.7 17

5.6 Standardization 1 10

5.7 Products and Services 2..2 22

5.8 Measurement and Control 4.5 45

90

5.8.1 Measurement 2.4 24

5.8.2 Control 2.1 21

5.9 Audit 1.5 15

5.10 Integrated System Approach

2.9 29

5.10.1 Suppliers 0.5 5

5.10.2 Company 1.4 14

5.10.3 Distributors 0.5 5

5.10.4 Customers 0.5 5

91

6 Resources Management 13.3 133

6.1 Human Resource 9. 3 93

6.1.1 Human Resource Management

2 20

6.1.2 Education 1 10

6.1.3 Training 1.5 15

6.1.3.1 Quality Training 0.9 9

6.1.3.2 Job Training 0.6 6

6.1.4 Involvement 0.5 5

6.1.5 Participation 0.5 5

92

6.1.6 Team Work 0.5 5

6.1.7 Empowerment 1.1 11

6.1.8 Reward and Recognition 1 10

6.1.9 Motivation 1.2 12

6.2 Financial Resources 2 20

6.3 Material Resources 2 20

6.3.1 Technology and Equipment 1.3 13

6.3.2 Support and Maintenance 0.7 7

93

7 Quality Culture 5 50

7.1 Quality Awareness 2.9 29

7.2 Corporate Quality Culture

2.1 21

8 Protection 2.8 28

8.1 Health and Safety 1.8 18

8.2 Environment 1 10

94

9 Continuous Improvement

7.5 75

9.1 Review 2 20

9.2 Improvement Activities 4.1 41

9.3 Creativity, Innovation and Design 1.4 14

10 Satisfaction of the Stakeholders

27 270

10.1 Customers 14.3 143

10.2 Employees (Including Management)

4.5 45

10.3 Society 1.9 19

10.4 Shareholders 3.7 37

10.5 Government 2.6 26

TOTAL SCORE 100 1000

95

OTHER NATIONAL QUALITY AWARD MODELS

• THE DEMING PRIZE (DP)

• MALCOLM BALDRIGE NATIONAL QUALITY AWARD (MBNQA)

• EUROPEAN QUALITY AWARD (EQA)

• UK QUALITY AWARD (UKQA)

• AUSTRALIAN QUALITY AWARD (AQA)

• IRISH QUALITY AWARD (IQA)

• SCOTLAND QUALITY AWARD

• SWEDISH QUALITY AWARD

• THE NORTHERN IRELAND QUALITY AWARD

• SINGAPORE QUALITY AWARD (SQA)

• CONDT…

96

OTHER NATIONAL QUALITY AWARD MODELS

• RAJIV GHANDI NATIONAL QUALITY AWARD (RGNQA)

• NEW ZEALAND NATIONAL QUALITY AWARD (NZQA)

• CANADIAN AWARD FOR EXCELLENCE (CAE)

• FRENCH QUALITY AWARD (FQA)

• CONFEDERATION OF INDIAN INDUSTRY (CII-EXIM) AWARD

• NETHERLANDS QUALITY AWARD (NQA)

• BRAZILIAN NATIONAL QUALITY AWARD.

97

SATISFACTION OF THE STAKEHOLDERS

TOP MANAGEMENT

ROLE

PROTECTION

CU

ST

OM

ER

&M

AR

KE

T F

OC

US

PO

LIC

Y

PL

AN

NIN

G

RE

SO

UR

CE

SM

AN

AG

EM

EN

T

QU

AL

ITY

A

SS

UR

AN

CE

QU

AL

ITY

C

UL

TU

RE

CO

NT

INU

OU

SIM

PR

OV

EM

EN

T

THE HOUSE OF TQM

98

QUALITY AWARD WEB SITES

1.http://www.juse.or.jp

2.http://www.efqm.org

3.http://www.quality.nist.gov