chapter 2 tqm

8/10/2019 Chapter 2 TQM

1/24

Chapter 2

TQM


2/24

Definition of TQM

Total Quality Management (TQM) is anenhancement to the traditional way of doingbusiness. It is a proven technique toguarantee survival in world-class competition.

Total-Made up of the whole.

Quality-Degree of excellence a product orservice provides

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

TQM is the art of managing the whole to

achieve excellence.


3/24

Definition of TQM

TQM is defined as both a philosophy and aset of guiding principles that represent thefoundation of a continuously improvingorganization.

It is the application of quantitative methodsand human resources to improve all theprocesses within an organization and exceed

customer needs now and in the future. TQM integrates fundamental management

techniques, existing improvement efforts, andtechnical tools under a disciplined approach.


4/24

Basic concepts

1. A committed and involved management toprovide long-term top-to-bottom organizationalsupport.

2. An unwavering focus on the customer, both

internally and externally. 3. Effective involvement and utilization of the

entire work force.

4. Continuous improvement of the business and

production processes. 5. Treating suppliers as partners.

6. Establishing performance measures for theprocesses.


5/24

Scope of TQM activity

Principle and practices

Tools and techniques


6/24

Leadership

To achieve never-ending qualityimprovement, the CEO must be directlyinvolved in the organization and

implementation of the quality improvementactivity.

Behaviors or characteristics that successfulleaders on page 28


7/24

Customer satisfaction Specified the target customers

who is our customers?

What do they need?

How do we satisfy their needs?

What corrective action is necessary?

Customer feedback. Feedback program shouldhave the objective to

Discover customer dissatisfaction.

Discover relative priorities of product quality with

other attributes like price and delivery.

Identify customer needs. Determine opportunities for improvement


8/24

Customer satisfaction

Customer complaints. Every companyshould have a procedure for usingcomplaints.

Accept complaints

Feedback complaint information to all people inorganization

Analyze complaints by doing the detective work

Eliminate the root of cause. More inspection may

not corrective action.

Report result of all investigation and solution toeveryone.


9/24

Customer satisfaction

Service after the sale

one characteristic of customer satisfaction occurs

after the sale. We can increate it by being thebest-beyond performance, delivery, and price.

Final comment

Know your customer, listen to them, and when

necessary, educate them. So they can determinetheir needs and ultimately judge your ability tosatisfy those needs.


10/24

Employee involvement Project teams

Department or operational areas have standing orad hoc teams. Standing team might have weeklymeeting to discuss control chart patterns,complaints, downtime, on-time delivery, etc. Thecomposition of as hoc teams will be a function of

the desired improvement. Education and training

Education and training is important for TQM.Different level of management, and differentfunction would need different knowledge.

Timing for training is also important for level ofsuccess.

Suggestion system and Final comments must beprovided to increase the potential for qualityimprovement.


11/24

CONTINUOUS PROCESS

IMPROVEMENT Process refers to business and production

activities of all organizations. Business

processes such as purchasing, engineering,accounting, and marketing are areas wherenonconformance can represent an opportunityfor substantial improvement.

Figure 2-3 shows input/output process model Inputs may be materials, money, information,

data, etc. Outputs may be information, data,

products, services, etc.


12/24

CONTINUOUS PROCESS

IMPROVEMENT Outputs usually require performance

measures. They are designed to achieve

certain outcomes such as customersatisfaction.

Feedback is necessary to improve the process

Process definition begins with defining theinternal and/or external customers.


13/24

CONTINUOUS PROCESS

IMPROVEMENT The process is the interaction of some

combination of people, materials, equipment,

method, measurement, and the environmentto produce an outcome such as a product,service, or an input to another process. Inaddition to having measurable input and

output, a process must have value-addedactivities and repeatability.


14/24

CONTINUOUS PROCESS

IMPROVEMENT There are five basic ways to define an

improvement :

reduce resources, reduce errors,

meet or exceed expectations of customers

make the process safer make the process more satisfying to the

person doing it.


15/24

CONTINUOUS PROCESS

IMPROVEMENT Problem-solving method applied to improve

process has seven phases:

Identify the opportunityAnalyze the current process

Develop the optimal solution(s)

Implement changes


16/24

CONTINUOUS PROCESS

IMPROVEMENT Study the results

Standardize the solution

Plan for the future


17/24

Supplier partnership

In most companies, suppliermanagement is very important.Especially in JIT environment, the

supplier quality must be excellent, andthe supplier must reduce the setuptime.

Supplier selection criteria Capability and capacity to provide quality product

Suppliers control of its suppliers

Suppliers accessibility


18/24

Performance measures

Performance measure are importance toidentify potential project, to justify

project resource allocation, and toassess the improvement results


19/24

Implementation

The TQM implementation process begins withsenior management's and, most important,the CEO's commitment. Leadership isessential during every phase of theimplementation process and particularly at

the start. If senior management has not been educated

in the TQM concepts, that should beaccomplished next.

Timing of the implementation process can bevery important. Is the organization ready toembark on the total quality journey? Theremay be some foreseeable problems


20/24

Implementation

The formation of the quality council has to beestablished.

The development of core values, a visionstatement, a mission statement, and a quality

policy statement, with input from allpersonnel, should be completed first.


21/24

Seven Steps to Strategic Planning

1. Customer Needs. The planning shoulddiscover the future needs of the customers.

2. Customer Positioning. The plannersdetermine where the organization wants to

be in relation to the customers. 3. Predict the Future. The planners must lookinto their crystal balls to predict futureconditions that will affect their product or

service. Demographics, economic forecasts,and technical assessments or projections aretools that help predict the future.


22/24


4. Gap Analysis. This step requires the planners toidentify the gaps between the current state andthe future state of the organization.

5. Closing the Gap. The plan can now bedeveloped to close the gap by establishing goalsand responsibilities.


23/24


6. Alignment. As the plan is developed, itmust be aligned with the mission, vision, and

core values of the organization. 7. Implementation. Resources must be

allocated to collecting data, designingchanges, and overcoming resistance to

change and also monitoring activity to ensurethat progress is being made.


24/24

TQM Compared to ISO 9001

ISO 9000 is a Quality System ManagementStandard. TQM is a philosophy of perpetualimprovement. The ISO Quality Standard sets inplace a system to deploy policy and verifiable

objectives. An ISO implementation is a basis for aTotal Quality Management implementation. Wherethere is an ISO system, about 75 percent of the stepsare in place for TQM. The requirements for TQM canbe considered ISO plus. Another aspect relating to

the ISO Standard is that the proposed changes forthe next revision (1999) will contain customersatisfaction and measurement requirements. Inshort, implementing TQM is being proactiveconcerning quality rather than reactive.

chapter 2 tqm

Documents