AEC-851

TOTALQUALITY

MANAGEMENT

TOTAL QUALITY MANAGEMENT(TQM)

It is a philosophy that is designed to make anorganization faster, flexible, focused andfriendly. It leads to a structured system thatfocuses each employee on the customer. Itcreates an environment that allowsorganization-wide participation in planing andimplementing a continuous improvementprocess to meet customer needs.

SOURCE: G. Hoffherr, et. al., 1994

PPPP Total Quality Management (TQM) concept:< "TQM means that the organization's culture is defined by

and supports the constant attainment of customersatisfaction through an integrated system of tools,techniques and training." Sashkin and Kiserr

PPPP Early US pioneers where Drs. W. Edwards Deming andJoseph M. Juran< – Slow acceptance in the US

PPPP First wide scale utilization was in Japan following WW II

PPPP Points to remember about TQM< TQM can work in all types and sizes of businesses and

organizations< TQM is not a short-term project, simple slogans, or an

inspection program

TOTAL QUALITY MANAGEMENT

1. Build awareness of the need and opportunity forimprovement

2. Set goals for improvement

3. Organize to reach the goals (identify problems,select projects, assign responsibilities)

4. Provide training

5. Carry out projects to solve problems

6. Report progress

7. Give recognition

8. Communicate results

9. Keep score on the various team efforts

10. Maintain momentum by making annual improvementpart of the organization

JOSEPH M. JURAN 10STEPS TO QUALITY

Deming's Cycle (PDCA)

Plan Do

CheckAct

PPPP Performance

PPPP Features

PPPP Reliability

PPPP Conformance

PPPP Durability

PPPP Serviceability

PPPP Aesthetics

PPPP Perceived Quality

PPPP Price Competitiveness

DIMENSIONS OF QUALITY

PPPP Data collection methods< Direct observation

< Interviews

< Questionnaires

< Focus groups

< Direct checking

< Sampling

TQM TOOLS

(TQM Tools Continued)PPPP Non-quantitative analysis methods< Flowcharts

EXAMPLE: Cashier notes a large amount of brokencookies

Cashier ShelfCustomer Store

BackRoom

Stocker

Warehouse

Truck

Bakery

Rail

(TQM Tools Continued)#### (Non-quantitative analysis methods continued)

<<<< Cause and Effect Diagrams (Fishbone Chart)

EXAMPLE: Customers are unsatisfied with the GreenValley’s parts department

CustomersareUnsatisfied

Parts notin Stock

Too Small Inventory

Cost

Low Turnover

PoorComputer System Poor Bin System

Poor Phone Response

Rude

EmployeeTraining

(TQM Tools Continued)#### Quantitative analysis methods

<<<< HistogramsEXAMPLE: Livestock farm comparing hay quality fromdifferent sources

1st Cutting 2nd Cutting 3rd Cutting

0

5

10

15

20

25

Home Grown Ace Farms Bee Acres

HAY QUALITY BY SOURCE

(TQM Tools Continued)#### Quantitative analysis methods continued

<<<< Scatter DiagramsEXAMPLE: Effectiveness of newly introduced herbicidevaries from research trails – is it temperature related?

Application Temperature (F)45 50 55 60 65 70 75 80

0

20

40

60

80

100

West Region Central Region East Region

HERBICIDE EFFECTIVENESS

(TQM Tools Continued)#### Quantitative analysis methods continued

<<<< Pareto Diagrams (80 - 20 Rule)EXAMPLE: Horticulture firm suppling plants to a mega-market chain is concerned with high rejects and returns

WrongTiming Wrong

Size PoorVigor Color

100

50

0

REASONS FOR REJECTS AND RETURNS

(TQM Tools Continued)#### Quantitative analysis methods continued

<<<< Control Charts (e.g. Run Chart)EXAMPLE: Pickle processor filling a 16 ounce jar ofpickle relish

16.1

16.0

16.2Upper Limit

Lower Limit

Goal

Time

RELISH RUN CHART

(TQM Tools Continued)PPPP The run chart is the basis of a management area called

“Statistical Process Control”< Controlled variation< Uncontrolled variation

PPPP Other techniques used< Benchmarking< Critical Path Analysis (CPA)< Many others

PPPP Failure to embrace the concept at all levels

PPPP Not an add-on program (not something you drop intoplace or add a new department to address)

PPPP Need strong leaders to make it work (if leader leaves theprocess often fails)

PPPP Often it is assumed it is a "quick-fix" process

PPPP Attempting to use traditional "proven” methods to solveproblems

PPPP Middle managers have a hard time changing

PPPP Attempting to apply in only a small area< Cross-functional teams are often needed

REASONS WHY TQM SOMETIMESDOES NOT WORK

Grapevine and secrecy

Control of staff

Inspection & Firefighting

Internal focus on rules

Cost and schedule

Stability seeking

Adversarial relations

Allocating blame

Open communications

Empowerment

Prevention

External focus on customer

Quality of conformance

Cont. change & improvement

Co-operative relations

Solving problems at their roots

From To

CULTURAL CHANGE

SOURCE: J. Pike & R. Barnes, 1994