1.introduction to quality & total quality management

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TOTAL QUALITY MANAGEMENT By: - Hakeem–Ur–Rehman Certified Six Sigma Black Belt (SQII – Singapore) IRCA (UK) Lead Auditor ISO 9001 MS–Total Quality Management (P.U.) MSc (Information & Operations Management) (P.U.) IBIT–PU T M Q UNDERSTANDING QUALITY & TQM CONCEPTS 1

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Page 1: 1.introduction to quality & total quality management

TOTAL QUALITY

MANAGEMENT

By: -Hakeem–Ur–Rehman

Certified Six Sigma Black Belt (SQII – Singapore)IRCA (UK) Lead Auditor ISO 9001

MS–Total Quality Management (P.U.)MSc (Information & Operations Management) (P.U.)

IBIT–PU

T MQUNDERSTANDING QUALITY & TQM CONCEPTS

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Page 2: 1.introduction to quality & total quality management

WHAT IS TQM? TOTAL: Everyone associated with the company is involved

in CONTINUOUS IMPROVEMENT (including its customers &suppliers if feasible)

QUALITY: Customer’s expressed and implied needs andrequirements are met fully

MANAGEMENT: Executives are fully committed.

TQM is a system approach for the continuous improvement ofall organizational processes through total participation of allemployees, resulting in high quality products and services toattain customer satisfaction.

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TQM: PHILOSOPHY “DO THE RIGHT THINGS, RIGHT THE FIRST TIME, EVERY TIME”

Page 3: 1.introduction to quality & total quality management

Marketing

Total Quality

Management

System

Design

Purchasing

Production

Warehousing

Distribution / Service

Learning & Knowledge Mngt.

DELIGHTED CUSTOMER

TOTAL QUALITY MANAGEMENT (TQM)

&

TOTAL ORGANIZATIONAL EXCELLENCE (TOE)

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Page 4: 1.introduction to quality & total quality management

WHO DETERMINES QUALITY?

THE CUSTOMER“Any one who receive or is affected by the

product, service, or process.”

CUSTOMER IS GOD(CHINESE SAYING)

CUSTOMER IS KING(JAPNESSIES SAYING)

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Page 5: 1.introduction to quality & total quality management

CUSTOMERS’ NEEDS

• EXPECTED NEEDS– Are typically what one gets by just asking customers

what they want.

• STATED NEEDS– Are the obvious / compulsory requirements. For example,

if meal is served hot, customers hardly notice it. If it'scold or too hot, dissatisfaction occurs. Expectedrequirements must be fulfilled.

• LATENT NEEDS– Beyond the customer's expectations.

– If provided , customer would be excited

– If not ,they would hardly complain

Page 6: 1.introduction to quality & total quality management

TQM: A “CULTURAL” CHANGE Responsibility is pushed down to “empower” the

people who know the most about the job,process or service.

TQM focus is on the process;

TQM separates the improvement process frompeople personalities and egos. “Top-down”management styles disappear.

Reporting levels are reduced/streamlined.

Management’s role shifts to more emphasis oncoaching.

Jobs are not eliminated, but job content maychange

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Page 7: 1.introduction to quality & total quality management

PROCESS IMPROVEMENT CYCLE

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PDCA CYCLE

PLAN

DO

CHECK

ACT

DEVELP AN IMPROVEMENT PLAN Define the problem Formulate critical success factors

related to the vision Formulate objectivesDefine performance measures &

targets

IMPLEMENTANT THEIMPROVEMENT PLANON THE LIMITEDSCALE Collect data Train those involved Describes the business

processes Formulate project teamCHECK IF IT WORKS

Evaluate the trail project Provide Feedback What have we learned?

IMPLEMENT THEVERIFIEDIMPROVEMENTS Document them in

standard procedures Train those involved Repeat the cycle

PDCA CYCLE

Page 8: 1.introduction to quality & total quality management

THE DEMING CHAIN

REACTION

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Improve Quality

Costs decrease because of less rework, fewer mistakes, fewer delays, snags, better use of machine-time and materials Productivity Improves

Productivity Improves

Capture the market with better quality and lower price

Stay in business

Provide jobs and more jobs

Page 9: 1.introduction to quality & total quality management

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TQM EVOLUTION

Page 10: 1.introduction to quality & total quality management

QUALITY CONTROL VS. INSPECTION

PRODUCTIONTESTING

LABS

ADMIN,

QAPROCESSMAINT.

FINANCEPROCESS

MIXED

PRODUCT

C/A

Process and/or

Systems

Fixing

Cycle B

PRODUCT/

SERVICE

FIXING

Cycle ANotOK

Measu-

rementOK

Standard

CORRECTIVE ACTIONS: Action taken to

eliminate the cause of a detected nonconformity or

other undesirable situation. (ISO 9000:2000)

The operational techniques and activities that are used to fulfill the requirements forquality. (ISO–9000)

This general area may be divided into two main sub areas:

– Statistical Process Control

– Acceptance Sampling Plans

INSPECTION + Corrective action

Page 11: 1.introduction to quality & total quality management

Product

Fixing

OK

Not

OK

PRODUCTPerformance

PROCESSES

Product, Process or

Systems Fixing &

Improvement

Customers

QUALITY CONTROL & QUALITY ASSURANCE

data

PROCESSPerformance

dataActions

Actions

DE

SIG

N

Market

Customer

Legal

Benchmarks

Process

Financial

PREVENTIVE ACTIONS: Action

taken to eliminate the cause of a

potential nonconformity or other

potentially undesirable situation.

(ISO 9000:2000)

Quality Assurance addresses the entire life cycle of a product, starting from the initialproduct identification to final inspection, reliability in use and customer satisfaction.

QUALITY ASSURANCE: All those planned and systematic activities implemented to provideadequate confidence that an entity will fulfill requirements for quality.

Page 12: 1.introduction to quality & total quality management

QUALITY CONTROL VS

QUALITY ASSURANCE

Quality Control

• Product

• Reactive

• Line function

• Find Defects

Quality Assurance

Process

Proactive

Staff function

Prevent defects

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Page 13: 1.introduction to quality & total quality management

Product

Fixing

OK

Not

OK

PRODUCTPerformance

PROCESSES

Product, Process or

Systems Fixing &

Improvement

Customers

INSPECTION,QC , QA & QM

data

FIELDPerformance

Product , Process or

Systems Fixing

& Improvement

data

Actions

PROCESSPerformance

dataActions

Actions

DE

SIG

N

Market

Customer

Legal

Benchmarks

Process

Financial

An ongoing effort to provide Products / services that meet or exceed customerexpectations through a structured, systematic process for creating organizationalparticipation in planning and implementing quality improvements.

Page 14: 1.introduction to quality & total quality management

EIGHT QUALITY MANAGEMENT PRICINIPLES

8 QUALITY

MANAGEMENT

PRINCIPLES

Mutually beneficial

supplier relationship

Customer-focus

Factual Approach

to Management

Leadership

Involvement of

People

Process Approach

System approach to

management

Continual

Improvement

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Page 15: 1.introduction to quality & total quality management

WHAT IS QUALITY ? Fitness for Use or purpose

Juran

Quality is conformance to the requirements.

Crosby

Q=P/E

– Q= Quality

– P= Performance

– E= Expectations

Q<1 Performance does not meet expectations

Q=1 Performance equals expectations

Q>1 performance is better than expectations

Page 16: 1.introduction to quality & total quality management

WHAT IS GRADE?

Category or rank given to differentquality requirements for products,processes, or systems having thesame functional use.

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Page 17: 1.introduction to quality & total quality management

WHAT IS QUALITY? David Garvin found that most definitions of quality were

either TRANSCENDENT, PRODUCT–BASED, USER–BASED, MANUFACTURING–BASED, or VALUE–BASED.

TRANSCENDENT: “Level of Excellence”

PRODUCT BASED: “Product Attributes”

USER BASED: “Fitness for intended use”

VALUE BASED: “Quality Vs Price”

MANUFACTURING BASED: “Conformance to specifications”

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Page 18: 1.introduction to quality & total quality management

QUALITY PERSPECTIVES

Distribution

Customer

products

and

services

needs Marketing

Design

Manufacturing

TRANSCENDENT &PRODUCT-BASED USER-BASED

MANUFACTURING-BASED

VALUE-BASED

Information flowProduct flow

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Page 19: 1.introduction to quality & total quality management

EIGHT DIMENSIONS OF PRODUCT QUALITY

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Garvin (1987) provides eight components or dimensions ofquality

1 Performance Will the product do the intended job?

2 Reliability How often does the product fail?

3 Durability How long does the product last?

4 Serviceability How easy is it to repair the product?

5 Aesthetics What does the product look like?

6 Features What does the product do?

7 Perceived Quality What is the reputation of the company orits product?

8 Conformance to Standards

Is the product made exactly as thedesigner intended?

Page 20: 1.introduction to quality & total quality management

SERVICE QUALITY DIMENSIONSParasuraman, Zeithamel, & Berry: Three marketing professors from Texas A& M University, published a widely recognized set of service qualitydimensions.

Tangibles

Service Reliability

Responsiveness

Assurance

Empathy

Availability

Professionalism

Timeliness

Completeness

Pleasantness20

TIME

Page 21: 1.introduction to quality & total quality management

WHAT IS QUALITY?Differing Functional Perspectives on Quality

Functional Perspectives include: Supply Chain Engineering Operations Strategic Management Marketing Financial Human resource

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Page 22: 1.introduction to quality & total quality management

ORGANIZATION’S OUTPUT Vs OUTCOME

CO

MP

AN

Y

Quality of Sales

Quantum of Sales

OUTCOME

OUTPUT

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EXAMPLE

POST OFFICE Number of Letters Number of Post Offices Number of Transactions

Delivery Rate Damage Rate Transactions/day/person

UNIVERSITY Number of Students Number of Teachers Number of Programs Number of Branches

Graduate Competency Rate Job Placement Rate Difference in Market Salary % of Satisfied Graduates % of Satisfied Employers

PRODUCTION DEPT.

Number of items Produced Types of Product Produced

% Defectives / Rejected Cost of Production/item Number of items/unit time

TESTINGDEPT.

Number of tests Types of Tests

Measurement Error % Delays of tests Cost of unit test

HRD Number of persons hired Number of Trainings

Core Competence Duration of vacant posts % of Poor Hiring

OUTPUT OUTCOME

Quality Objectives

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QUESTIONS

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