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Chapter Two Total Quality Management

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Chapter Two Total Quality Management. What is Quality?. A quality (from a latin word qualitas ) is an attribute or a property Attributes are ascribable by a subject, whereas properties are possessible . - PowerPoint PPT Presentation

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Page 1: Chapter Two Total Quality Management

Chapter TwoTotal Quality

Management

Page 2: Chapter Two Total Quality Management

What is Quality?

A quality (from a latin word qualitas) is an

attribute or a property

Attributes are ascribable by a subject, whereas

properties are possessible.

In contemporary philosophy, the idea of qualities

and especially how to distinguish certain kinds of

qualities from one another remains controversial.

Page 3: Chapter Two Total Quality Management

In popular use, the word quality suggests a

degree of excellence-a Cartier watch, a Rolls-

Royce car, and a Christian Dior dress:

something expensive and conforming to a high,

perhaps luxurious, specification.

However, this is too imprecise and limited idea

of quality to be of any use in determining

company policy.

Page 4: Chapter Two Total Quality Management

Different scholars give different interpretations to the

term quality:

For engineers it is conformance to specifications,

For users it is fitness for use,

For marketing it is the degree of excellence at an

acceptable price that will influence the market

share.

For customer service a quality product is that with

less customer complaint

Page 5: Chapter Two Total Quality Management

Quality is fitness for use - Juran

Quality is conformance for requirements - Crosby

Quality means best for certain customer conditions.

These conditions are: the actual use and the selling

price of the product - Feigenbaum

Quality is defined only in terms of the agent -

Deming

Quality is providing our customers with products

and services that consistently meet their needs and

expectations - Boeing Company

Quality is doing the right thing right the first time,

always striving for improvement, and always

satisfying the customers -U.S.A. Department of

Defense

Page 6: Chapter Two Total Quality Management

A comprehensive definition of quality is:

Exceeding Customers Expectation

Thus the closer this conformation indicates the higher the degree of

quality.

Page 7: Chapter Two Total Quality Management

What is Management?

Page 8: Chapter Two Total Quality Management

Definition of management

Management is the art of getting things done

through people

Management is the process of getting activities

completed efficiently and effectively with and

through other people and resources

Page 9: Chapter Two Total Quality Management

•What is this little boy doing?

•Can you see where he is going?

•Do you know what could happen if

he falls in the water?

•Can you really see what the

consequences are going to be?

•Have you got the big picture in

mind?

•With anything that one does in life

you start with the end in mind.

You decide what you want to

achieve and then you decide how

you will work towards achieving it.

•This is what management is.

Page 10: Chapter Two Total Quality Management

Chart the Path

Put Stepping Stones in Place

So That You and Your Followers Can Reach

Your Vision

Page 11: Chapter Two Total Quality Management

In general "management" identifies a special

group of people whose job is to direct the effort

and activities of other people toward common

objectives.

Simply, management gets things done through

other people by planning, coordinating and

directing the activities of an organization

The decisions and judgments made are normally

oriented to the needs of the organization

Page 12: Chapter Two Total Quality Management

The art and science of making things

happen by people who do not have

interest and make them enjoy it.

Page 13: Chapter Two Total Quality Management

TQM is the application of quality principles to all

facets of an organization.

TQM is composed of the following three words to

have a combined effect.

Total -made up of the whole

Quality –Customer satisfaction

Management -science and art or manner of planning,

controlling, directing

Total Quality Management (TQM)

Page 14: Chapter Two Total Quality Management

A more comprehensive definition of TQM is given

by another of the authors on classical quality

control, A.V. Feigenbaum, in his material ‘Total

Quality Control’.

Here, quality is described as “an effective

system for integrating quality improvement

efforts of the various groups of the organization,

so as to provide products and service at levels

which allow customer satisfaction.”

TQM (cont’d)

Page 15: Chapter Two Total Quality Management

The key ideas in the definition of TQM are:

Customer Focus

Internal alignment

External alignment

Total Involvement

Continuous Improvement

Leadership Commitment

Key concepts of TQM

Page 16: Chapter Two Total Quality Management

If a defective product enters in the market, it will

cause:

customer dissatisfaction,

unnecessary expenditure for warranty, and

poor product salability.

Having a quality product increases market share,

resulting in better profits.

The Need for Quality Control

Page 17: Chapter Two Total Quality Management

Total Quality Management (TQM)

Gurus

Page 18: Chapter Two Total Quality Management

W.A.Shewhart (1891-1967)

Shewhart's most important

contribution to both statistics and

industry was the development of the

statistical control of quality

The limitation was it did not find the

magnitude of change in the process,

and it was unable to quickly find large

changes within small samples

Page 19: Chapter Two Total Quality Management

LCL

CL

UCL

Time

Page 20: Chapter Two Total Quality Management

W. E. Deming, who was a statistician during 1940s,

is regarded as the father of the TQM revolution.

When he was once asked to summarize his

philosophy he replied “If I have to reduce my

message to management to just few words, I would

say, it all had to do with reducing variation”.

W. Edwards

Deming (1900–

1993)

Page 21: Chapter Two Total Quality Management

W.Edwards Deming (1900–1993)

Deming argued that higher quality leads

to higher productivity, which, in turn,

leads to long-term competitive strength

Deming noted that workers are

responsible for 10 to 20 percent of the

quality problems in a factory, and that

the remaining 80 to 90 percent is under

management's control.

Page 22: Chapter Two Total Quality Management

Deming's System of Profound Knowledge

Theory of Optimization

Theory of Variation

Theory of Knowledge

Theory of Psychology.

Page 23: Chapter Two Total Quality Management

The Deming Cycle

Page 24: Chapter Two Total Quality Management

Deming emphasized that random or common

causes of variations are inherent in the

process which managers themselves have

designed and established them in the system

unknowingly

He estimates 94% of the problems arise due

to system deficiencies rather than the fault

of operators of the system or process.

Deming (cont’d)

Page 25: Chapter Two Total Quality Management

1. Create consistency of purpose toward

improvement of product and service, with the

aim to become competitive and stay in business

and provide jobs.

2. Adopt the new philosophy of the need for higher

quality.

3. Cease dependence on mass inspection to

achieve quality.

Deming’s fourteen points are:

Deming (cont’d)

Page 26: Chapter Two Total Quality Management

4. End the practice of awarding business on the basis

of price tag alone.

5. Improve constantly and forever

6. Institute modern methods of training and

education on the job, including management.

7. Adopt and institute leadership.

8. Drive out fear, so that every one may work

effectively for the economy.

Page 27: Chapter Two Total Quality Management

9. Break down barriers between staff areas.

10. Eliminate slogans and exhortations asking the work

force for unrealistic targets.

11. Eliminate numerical quotas for the work force and

numerical goals for management.

12. Remove barriers that rob people of pride of

workmanship.

13. Institute a vigorous program of education and self-

improvement for everyone.

14. Put everyone in the company to work to accomplish

the transformation.

Page 28: Chapter Two Total Quality Management

Deming suggests that western

management suffers from the following deadly

diseases.

Lack of constancy of purpose

Emphasis on short-term profits

Evaluation of performance on annual review

Mobility of Top management

Running a company on figure alone with no

consideration for unknown figures

Excessive medical costs, and

Excessive warranty cost fuelled by lawyers.

Page 29: Chapter Two Total Quality Management

Some of the obstacles for effective quality

management, according to him, are

Our problems are different – management

thinks

Reliance on quality control departments

Quality by inspection

Blaming the workforce

Inadequate testing of prototypes

Page 30: Chapter Two Total Quality Management

Joseph Juran

Quality management according to

Juran consisted of three basic

processes (Juran Trilogy):

1. Quality Planning,

2. Quality Control, and

3. Quality Improvement

Page 31: Chapter Two Total Quality Management

Juran and the Cost of Quality

There are two types of costs: these are:

1. Unavoidable Costs: preventing defects

(inspection, sampling, sorting, QC) and

2. Avoidable Costs: defects and product failures

(scrapped materials, labour for re-work,

complaint processing, losses from unhappy

customers so on)

Page 32: Chapter Two Total Quality Management
Page 33: Chapter Two Total Quality Management

Juran has two definitions for quality:

“Freedom from deficiencies” and “Fitness for use”

which is a utility value concept, which varies from one customer to another

Joseph Juran

Page 34: Chapter Two Total Quality Management

His concept of “fitness for use” reflects meeting

customer needs and is based on the following

five quality characteristics, as outlined by him:

1. Technological (strength)

2. Psychological (beauty)

3. Time-oriented (reliability)

4. Contractual (guarantee)

5. Ethical (sales staff courtesy)

Joseph Juran

Page 35: Chapter Two Total Quality Management

Juran puts his thinking about managing

quality in a trilogy of management processes:

Quality planning,

Quality control, and

Quality improvement

Joseph Juran

Page 36: Chapter Two Total Quality Management

Quality planning has the customer at the

core to develop a product or service

feature, which responds to the customer

needs, by developing processes that are

capable of producing these features

Joseph Juran

Page 37: Chapter Two Total Quality Management

The Quality control in the managerial process is

an essential process for assisting the operating

forces to achieve product or process goals

Like any control activity, quality control process

evaluates actual operating performance,

compares it to goals and act on difference.

Joseph Juran

Page 38: Chapter Two Total Quality Management

The most significant contribution of Juran to

the TQM movement is the Quality

Improvement Process.

The search for never-ending improvement is

what it is all about, not just only in the quality

of product or service provided but also in the

process employed.

Joseph Juran

Page 39: Chapter Two Total Quality Management

Juran emphasized that the improvement of

product or services and processes applies

to all customers, internal and external.

He was the first to recognize that

customers are both internal and external

Joseph Juran

Page 40: Chapter Two Total Quality Management

The delimitation he gave for these customers is

outlined as follows.

a) Internal Customer: Are those departments or

persons who supply products to each other.

b) External Customer: These are impacted by the

product but are not members of the company

(or other institution) which produce the

product.

Joseph Juran

Page 41: Chapter Two Total Quality Management

In order to set about improving quality,

Juran formulated ten steps which companies

can follow:

1) Build awareness of the need and

opportunity for improvement

2) Set goals for improvement

Joseph Juran

Page 42: Chapter Two Total Quality Management

3) Organize to reach goals

4) Provide training

5) Carry out projects to solve problems

6) Report progress

7) Give recognition

8) Communicate results

9) Keep scores achieved on quality improvement

10) Maintain momentum by making annual

Improvement

Joseph Juran

Page 43: Chapter Two Total Quality Management

Juran was also the first to point out that

the Pareto Principle could be used to

quality improvements

The basis is to distinguish the important

vital few from the trivial many

Joseph Juran

Page 44: Chapter Two Total Quality Management

Philip Crosby

“Conformance to requirements”

Before the implementation of the program,

Crosby outlines some quality basics that

should be emphasized to management

Page 45: Chapter Two Total Quality Management

Crosby wrote more than thirteen books in the

field of quality management and is currently

a leader in the area of quality management.

He is the founder of Philip Crosby Associates

II Inc., which engages itself in consultancy

and training service

Philip Crosby

Page 46: Chapter Two Total Quality Management

“The four absolutes of quality”

1. Quality is defined as conformance to requirements,

not as 'goodness' or 'elegance'.

2. The system for causing quality is prevention, not

appraisal.

3. The performance standard must be Zero Defects,

not "that's close enough".

4. The measurement of quality is the Price of

Nonconformance, not indices.

Philip Crosby

Page 47: Chapter Two Total Quality Management

Crosby has forwarded a fourteen-point plan for

quality improvements implementation issues

1. Management commitment

2. The quality improvement team

3. Quality measurement

4. Cost of quality

5. Quality awareness

Philip Crosby

Page 48: Chapter Two Total Quality Management

6. Corrective action

7. Zero defects planning

8. Supervisor training

9. Zero Defects day

10. Goal Setting

11. Error cause removal

12. Recognition

13. Quality councils

14. Do the quality improvements process over again

Philip Crosby

Page 49: Chapter Two Total Quality Management

Crosby attributes 80% quality problems to

management and hence the cure for these

problems lies with management leadership

He stresses that the essential ingredient is

management integrity and formal education and

training so as to build an implementation process

for quality improvement

Philip Crosby

Page 50: Chapter Two Total Quality Management

Crosby’s other views if change in organizations is to

occur are:

1. People will take quality as seriously as management

takes it, no more.

2. Integrity is unrelenting

3. The tools of quality, like SPC, are not designed to

cause prevention throughout the organization.

4. Think about quality improvements in terms of

quality per share.

5. Every individual in the company needs

continual education.

Philip Crosby

Page 51: Chapter Two Total Quality Management

His major contribution to the subject was the cost

of quality. It was his recommendation (in 1956)

that quality costs should be categorized and

separately managed, as exemplified in his PAF

model.

He identified three major categories; prevention

costs, appraisal costs, and failure costs.

A. V. Feigenbaum

Page 53: Chapter Two Total Quality Management

Feigenbaum defined total quality control as:

“An effective system for integrating the quality

development, quality maintenance and

quality improvement efforts of the various

groups in an organization so as to enable

production and service at the most economic

levels which allow customer satisfaction”

A. V. Feigenbaum

Page 54: Chapter Two Total Quality Management

Feigenbaum originated the industrial cycle.

The cycle includes marketing, design,

production, installation and service elements

which are now considered essential elements

in the management of quality in an

organization as well as in managing a quality

management system such as ISO 9000

A. V. Feigenbaum

Page 55: Chapter Two Total Quality Management

Feigenbaum also introduced the concept of

hidden plant from the point of view that

waste lowered the real potential capacity of

a plant because of rework.

The hidden plant will be utilized when

actually doing things right first time

A. V. Feigenbaum

Page 56: Chapter Two Total Quality Management

David A.Garvain

• Garvin contributed greatly in influencing

quality management theories.

• Garvin has categorized his approaches into

five:

1. Transcendental approach

2. Product - based approach

3. User - based approach

4. Manufacturing- based approach

5. Value - based Approach

Page 57: Chapter Two Total Quality Management

The other major contribution of Garvin is the ’Eight Dimensions of Quality’

1. Performance

2. Features

3. Reliability

4. Conformance

5. Durability

6. Serviceability

7. Aesthetics, And

8. Perceived Quality

David A.Garvain

These are factors how a customer

perceivesquality

Page 58: Chapter Two Total Quality Management

His contribution includes company-wide

quality control and quality circle.

The Japanese type of TQC is that quality

control should be every employee’s

responsibility , meaning every one in the

company, in all divisions must study, practice

and participate in quality control.

Kaoru Ishikawa

Page 59: Chapter Two Total Quality Management

Kaoru Ishikawa

7 Basic Tools:

Developed Histograms, Pareto

Charts, Cause and Effect

Diagrams, Run Charts, Scatter

Diagrams, Flow Charts, Control

Charts

Developed quality circle

Page 60: Chapter Two Total Quality Management

• Ishikawa’s view is that TQC is a thought

revolution in Management.

• Many companies have transformed

themselves after applying QC.

Kaoru Ishikawa

Page 61: Chapter Two Total Quality Management

The manner in which companies were

transformed may be classified in the following six

categories, which they commonly share:

1. Quality first: not short-term profit first.

2. Consumer orientation: Not producer

orientation;

3. The next process is your customer (internal

customer).

Kaoru Ishikawa

Page 62: Chapter Two Total Quality Management

4. Using facts and data to make presentations,

utilization of statistical methods.

5. Respect for humanity as a management

philosophy full participatory management.

6. Cross function management.

Kaoru Ishikawa

Page 63: Chapter Two Total Quality Management

Ishikawa summarizes his views of quality as follows:

a) QC is the responsibility of all workers and all

divisions

b) Management should set out long-term profits and

put quality first and destroy sectionalism.

c) TQC is management with facts with a group

activity and can’t be done by individuals i.e. it

calls for teamwork.

Kaoru Ishikawa

Page 64: Chapter Two Total Quality Management

d) TQC will not fail if all members cooperate,

from the CEO down to line workers.

e) If TQC is implemented company-wide, it

can contribute to the improvement of a

company’s corporate health and

character. TQC is management based on

respect for humanity.

Kaoru Ishikawa

Page 65: Chapter Two Total Quality Management

f) Middle management will be frequently

involved in TQC and criticized and should

be prepared to.

g) Don’t confuse objective with the means,

such as statistical quality control, to attain

them.

h) QC circle activities are part of TQC.

Kaoru Ishikawa

Page 66: Chapter Two Total Quality Management

What do you feel?

Page 67: Chapter Two Total Quality Management

Taguchi is a prize-winning Japanese

statistician;

His major contribution is effective

quality of design.

His method focuses on determining

the cost of not meeting the specified

target value.

Genichi Taguchi

Page 68: Chapter Two Total Quality Management

Genichi Taguchi

The basic elements of his ideas can

be considered under four main

headings:

1. Taguchi Loss Function

2. Robust Design of products, services

and processes (Offline quality

control)

3. Reduction in variation

4. Statistically planned experiments

Page 69: Chapter Two Total Quality Management

Consequently, he developed the “loss function” given

by the quadratic equation.

Where:

L = Loss in terms of money

K = Cost coefficient

x = Measured Value (Value of quality

characteristics

t = Target value

“A business that misuses what it has will continue to misuse

what it can get. The point is--cure the misuse.” - Ford and Crowther

2txkL

Genichi Taguchi

Page 70: Chapter Two Total Quality Management
Page 71: Chapter Two Total Quality Management

Taguchi favors a more proactive quality

practice of quality assurance through effective

design and development.

Taguchi suggests that the time and effort spent

in designing and planning will save much more

effort, time and money later during on-line

quality control.

Genichi Taguchi

Page 72: Chapter Two Total Quality Management

Taguchi’s Robust Design • To achieve economical product quality design, Taguchi

proposed three design phases:

• System design: design engineers use their

practical experience, along with scientific and

engineering principles, to create a viably functional

design.

• Parameter design: The parameter design phase

determines the optimal settings for the product or

process parameters.

• Tolerance design: establish tolerances wide

enough to reduce manufacturing costs, while at the

same time assuring that the product or process

characteristics are within certain bounds

Page 73: Chapter Two Total Quality Management

• Masaaki Imai (born 1930, in Tokyo) is a

consultant in the field of quality management.

• Known as the “Lean Guru” and the father of

Continuous Improvement (CI) Masaaki Imai has

been a pioneer and leader in spreading the

Kaizen philosophy all over the world.

Masaaki Imai

Page 74: Chapter Two Total Quality Management

Masaaki Imai

Imai has brought together the

management philosophies, theories

and tools that have been popular in

Japan over the years as a single

concept - kaizen

Kaizen means continuous process

improvement involving everybody,

signifying the constant and gradual

improvement, no matter how small,

which should be taking place all the

time, in every process.

Page 75: Chapter Two Total Quality Management

TQM

Quality, competitiveness and customers

– The reputation of an organization is built by quality,

reliability, delivery and price: Quality is the most

important

– Quality is meeting the customer requirements.

– Reliability is the ability of the product or service to

continue to meet the customer requirements over time

without failure.

– Organizations delights the customer by consistently

meeting their requirements, and then achieve a reputation

of ‘excellence’ and customer loyalty.

– Reputations for poor quality last for a long time, and

good or bad reputations can become national or

international.

Page 76: Chapter Two Total Quality Management

TQMUnderstanding and building the quality chains

– Throughout all organizations there are a series of

internal suppliers and customers. These form the so-

called ‘quality chains’, the core of ‘company-wide

quality improvement’.

– Measurement of capability is vital.

– There are two distinct but interrelated aspects of

quality, design and conformance to design.

• Quality of design is a measure of how well the product or

service is designed to achieve the agreed requirements.

• Quality of conformance to design is the extent to which the

product or service achieves the design.

Page 77: Chapter Two Total Quality Management

TQMManaging quality

– ‘Have we done the job correctly?’ should be replaced by

‘Are we capable of doing the job correctly?’ and ‘Do we

continue to do the job correctly?’.

– Everything we do is a process, which is the

transformation of a set of inputs into the desired outputs.

– Inspection is not quality control. The latter is the

employment of activities and techniques to achieve and

maintain the quality of a product, process or service.

– Quality assurance is the prevention of quality problems

through planned and systematic activities.

Page 78: Chapter Two Total Quality Management

TQMQuality starts with understanding the needs

– Marketing processes establish the true requirements which

must be communicated properly throughout the organization

– Excellent communications between customers and suppliers:

organization must establish feedback systems

– Appropriate research techniques should be used to

understand the ‘market’ and keep close to customers

Quality in all functions

– All members of an organization need to work together on

organization-wide quality improvement.

– Top management must really be committed.

Page 79: Chapter Two Total Quality Management

New TQM Model

The four Ps and three Cs of TQM –TQM model

• Planning, People, Processes and Performance are key

to delivering quality products and services to

customers and generally improving overall

Performance

• The three Cs of Culture, Communication, and

Commitment provide the glue or ‘soft outcomes’ of

the model which will take organizations successfully

into the twenty-first century

Page 80: Chapter Two Total Quality Management

New TQM Model

Page 81: Chapter Two Total Quality Management

Quality Function Deployment (House of Quality)

• It originated in Japan in 1972 at Mitsubishi but it

has been developed in numerous ways by Toyota

and its suppliers

• The ‘house of quality’ is the framework of the

approach to design management known as

Quality Function Deployment (QFD).

• Quality function deployment (QFD) is a ‘system’

for designing a product or service, based on

customer requirements, with the participation of

members of all functions of the organization

Page 82: Chapter Two Total Quality Management

What is Quality Function Deployment?

• Quality Function Deployment (QFD) is a way

for accurately translating customer quality

requirements into goods or services, which meet

the stated needs.• The technique uses a series of interconnected

schematics, often referred to as the “House(s) of

Quality”.• A House of Quality can be used to systematically

codify customer requirements for quality at the

highest level in the system, into the technical and

operational provisioning requirements of the supplier

at the lower level in the system.

Page 83: Chapter Two Total Quality Management

QFD

• Quality Function Deployment (QFD): is a useful tool for translating the voice of the customer into specific technical requirements

• Quality function deployment is also useful in enhancing communication between different functions, such as marketing, operations, and engineering.

• QFD enables us to view the relationships among the variables involved in the design of a product, such as technical versus customer requirements.

Page 84: Chapter Two Total Quality Management
Page 85: Chapter Two Total Quality Management

Quality Function Deployment

The activities included in QFD are:

1. Market research

2. Basic research

3. Innovation

4. Concept design

5. Prototype testing

6. Final-product or service testing

7. After-sales service and troubleshooting

Page 86: Chapter Two Total Quality Management

Basic Outline for House of Quality

Page 87: Chapter Two Total Quality Management

Sequence of Constructing a House of Quality

1. Identify customer attributes and their importance

2. Identify counterpart characteristics

3. Map the customer attributes to the counterpart characteristics

4. Undertake an evaluation of customer attributes requirements

5. Evaluate the counterpart characteristics of competitive products and create targets

6. Determine those counterpart characteristics for transfer

Page 88: Chapter Two Total Quality Management

Question: Build a House of Quality for production of a kettle

Sub Section

Stage Input Output

1 Product Planning

Customer Requirements

Design Requirements

2 Parts Design Design Requirements

Part Characteristics

3 Process Planning

Part Characteristics

Manufacturing Operations

4 Production Planning

Manufacturing Operation

Production Requirements

Kettle boils quickly < 1min

Volume/ power ratio

< 1 min

Volume/ power ratio

Pressing

Pressing Pressing machine, logistics, etc

Page 89: Chapter Two Total Quality Management

House of Quality for production of a kettle

Page 90: Chapter Two Total Quality Management

Downstream Transfer of Counterpart Characteristics

Page 91: Chapter Two Total Quality Management

QFD for Students Backpack

Page 92: Chapter Two Total Quality Management

What are the benefits of using QFD?

• It focuses design of new products and services based on customer requirements (Customer focused).

• It analyses the performance of the company’s products against those of its principal competitors for key customer requirements (Benchmarking).

• It reduces the number of post-release design changes, by ensuring focused effort is put into the planning phase.

• It promotes teamwork, and break down barriers between departments by involving marketing, engineering and manufacturing from the outset of each project.

Page 93: Chapter Two Total Quality Management

Continuous Improvement • Numbers and information will form the basis

for understanding, decisions, and actions in

never-ending improvement – record, use/analyze

data and act

• A set of simple tools are needed to interpret

fully and derive use from the data. More

sophisticated techniques may need to be

employed occasionally.

• The effective use of the tools requires the

commitment of the people who work on the

processes. This in turn needs management

support