total quality management

TQM by Ram, Saurabh, Rishikesh and Chinmaya 1

Total Quality Management

------presented by------

Rishikesh Palekar 08-042Ram Pimplapure 08-209Saurabh Pandey 08-217Chinmaya Jangid 08-235

Introduction What is quality? The American National

Standards Institute (ANSI) and the American Society for Quality (ASQ) define quality as:

“The totality of features and characteristics of a product or service that bears on its ability to satisfy given needs.”

2TQM by Ram, Saurabh, Rishikesh and Chinmaya

TQM by Ram, Saurabh, Rishikesh and Chinmaya

Introduction What is TQM? A comprehensive, organization-wide effort

to improve the quality of products and services, applicable to all organizations.

Management Approach of an Organization centered on Quality based on participation of all its members and aiming at long term success through customer satisfaction, and benefits to all members of the organization and to society.

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Introduction What is a customer? Anyone who is impacted by the product or

process delivered by an organization. External customer: The end user as well as

intermediate processors. Other external customers may not be purchasers but may have some connection with the product.

Internal customer: Other divisions of the company that receive the processed product.

What is a product? The output of the process carried out by the

organization. 4


Why Quality? Reasons for quality becoming a cardinal priority for

most organizations:

Competition – Today’s market demand high quality products at low cost. Having `high quality’ reputation is not enough! Internal cost of maintaining the reputation should be less.

Changing customer – The new customer is not only commanding priority based on volume but is more demanding about the “quality system.”

Changing product mix – The shift from low volume, high price to high volume, low price have resulted in a need to reduce the internal cost of poor quality.

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Why Quality? Product complexity – As systems

have become more complex, the reliability requirements for suppliers of components have become more stringent.

Higher levels of customer satisfaction – Higher customers expectations are getting spawned by increasing competition.

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Quality perspectives Everyone defines Quality based on

their own perspective of it. Typical responses about the definition of quality would include:

1. Perfection2. Consistency3. Eliminating waste4. Speed of delivery5. Compliance with policies and

procedures6. Doing it right the first time7. Delighting or pleasing customers8. Total customer satisfaction and service

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Quality perspectives

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TOTAL QUALITY MANAGEMENT


CONTD…..

The core of TQM is the customer-supplier interfaces, both externally and internally, and at each interface

lie a number of processes.

This core must be surrounded by commitment to quality, communication of the quality message, and recognition of the need to change the culture of the organisation to create total quality.

These are the foundations of TQM, and they are supported by the key management functions of people, processes and systems in the organisation.


ELEMENTS OF TQM


W. Edwards Deming and his philosophy

W. Edwards Deming is best known for his management philosophy establishing quality, productivity, and competitive position.

The most important Deming works are: Deming cycle, The Fourteen Points ETC

Demings cycle

Deming’s 14 Points to Reach World Class Performance Standard :-

1. Achieve constancy of purpose.2. Learn a new philosophy.3. Do not depend on mass inspection.4. Reduce the number of vendors for better control

and consistency.5. Recognize two sources of faults: (a). Management & production systems (b). Production workers.6. Improve on the job training.7. Improve supervision.

Deming’s 14 Points (Contd….)

8. Drive out fear.9. Improve communication.10. Eliminate fear.11. Consider work standards carefully.12. Teach statistical methods. 13. Encourage new skills.14. Use statistical knowledge.

Deming’s contribution to the Japanese industrywas so much that the Japanese Government

namedthe highest quality award for the industry afterhis name as the ‘Deming Award’.


Kaoru Ishikawa and his philosophy

Kaoru Ishikawa made many contributions to quality, the most noteworthy being his

total quality viewpoint, company wide quality control, his emphasis on the human side

of quality the Ishikawa diagram and the

assemblyuse of the “seven basic tools of

quality”.

Ishikawa diagram

Process improvement tools

Seven QC Tools

1. Flow charts2. Check sheets3. Histograms4. Pareto diagrams5. Cause-and-effect diagrams6. Scatter diagrams7. Control charts

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Flow charts

Process map identifies the sequence of activities or the flow in a process.

Objectively provides a picture of the steps needed to accomplish a task.

Helps all employees understand how they fit into the process and who are their suppliers and customers.

Can also pinpoint places where quality-related measurements should be taken.

Also called process mapping and analysis.

Very successfully implemented in various organizations. e.g. Motorola reduced manufacturing time for pagers using flow charts.

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A TYPICAL FLOWCHART

Check sheets

Special types of data collection forms in which the results may be interpreted on the form directly without additional processing.

Data sheets use simple columnar or tabular forms to record data.

Additionally, including information such as specification limits makes the number of nonconforming items easily observable and provides an immediate indication of the quality of the process.

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Histograms

Process Variability Continuous Data Factors important when investigating

Histograms: Variations Location Shape Unusual features


Pareto Charts

Named after Wilfredo Pareto. Prioritize problems Categorical Data

Pareto diagrams

Based on the 85-15 Pareto distribution.

Helpful in identifying the quality focus areas.

Popularized by Juran.

It is a histogram of the data from the largest frequency to the smallest.

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Cause-effect diagrams

Also called fishbone diagrams (because of their shape) or Ishikawa diagrams.

Helps in identifying root causes of the quality failure. (Helps in the diagnostic journey.)

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Scatter diagrams

Graphical components of the regression analysis.

Often used to point out relationship between variables. Statistical correlation analysis used to interpret scatter diagrams.

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Run charts and Control charts

Run chart: Measurement against progression of time. Control chart: Add Upper Control Limit and Lower

Control Limit to the run chart.

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Run Charts

Variation (Trends) over time. Data Could be Means, counts or

proportions collected over time.

Quality Planning :- Steps to be followed:-1. Set up a long –term goal or mission.2. Define a vision statement ,i.e. value system

of the organization guiding everyone in the organization.3. Break up the mission statement into annual short-term goals or objectives which should

be ‘SMART’.4.Identify customers who will help the

organization to achieve the goals.5. Discover their needs.6. Develop product features responding to customer needs.

Quality Planning (Contd….) :-7. Establish product goals.8. Develop systems and processes to produce

these product features.9. Prove process capability and hand over to production,i.e. develop the plan at operating level.

Quality planning is the starting point of the Journey to be a world-class organization.

Quality Control :-

Quality control as defined by Juran is control over process.

Quality control consists of two major processes:-

1. Statistical process control. 2. Training on statistical tools. For quality control concept of self-control has to be developed by:- 1. Means for knowing quality goals. 2. Means for knowing his performance

on the quality goals. 3. Means for regulating/correcting his

performance.

Quality Improvement :-

The quality improvement activity under the Juran – methodology is popularly known as:- Juran Quality Improvement Project, (JQIP).

Juran clearly states that it is the number of JQI projects undertaken by an organizationthat decides the rate of growth of an Organization.


Advantages of TQM

Eliminating errors and doing things right the first time saves time and resources. The savings may then be used for expansion of services or made available to employees in their efforts to increase service quality.

creates an organizational atmosphere of excitement and sense of accomplishment through the rewarding of creativity

employees feel free to use their creative energies to develop new ideas.


Contd…..

Employees begin to develop a commitment to the organization rather than looking at it as just their employer. When employees feel they are an integral part of the organization, they feel needed and enjoy work more, which may further increase service quality.

TQM gives an organization greater problem-solving flexibility and increases the quality of work life for all employees.

Total Quality Management may be a "profit generator," even for public organizations. It does not actually create profit for the organizations, but if implemented properly, it may identify costly processes and cost-saving measures. Once fully implemented, the only expense of TQM is the cost of routine operations. In public organizations, saved resources may be viewed as "profits."


Disadvantages of TQM

To produce continuously high quality services, an organization must react quickly to changes in the community and not be restricted by its management style.

TQM calls for organizational change, it does not demand radical organizational reform. Real quality improvement requires radical structural change, such as flattening organizational structures.

TQM claims that quality is a complicated entity that is beyond the average employee to comprehend without specialized training in statistical techniques. It takes what is common sense to the ordinary worker and makes it sound complicated by changing the name and dressing it up with technical language.

TQM calls for the elimination of performance assessments. Critics fear that without performance assessment managers would have too much power over employees and may be use it capriciously.


WHY TQM HAS FAILED IN MOST OF THE ORGANIZATIONS???

THE MIDDLE MANAGEMENT THREAT

THE RIDICULOUS QUALITY SLOGAN

THE CULTURE-REPLACES-TECHNOLOGY MISCONCEPTION

THE QUALITY-MEANS-CORRECTNESS MISCONCEPTION

THE PAPER PRODUCTION MACHINE

SPENDING ALL THE MONEY ON MINOR QUALITY IMPROVEMENTS.

DON'T KNOW ABOUT QUALITY COSTS

MEASURING THE WRONG QUALITY INDICATORS

QM MEASURES ARE NOT APPROPRIATE FOR THE CULTURAL BACKGROUND

THE COMPETING-TEAM-PITFALL


IMPLEMENTATION OF TQM TQM can be implemented by practicing the

following processes in the organization: KAIZEN POKA-YOKE 6σ ISO:9000 LEAN MANUFACTURING SYSTEM QUALITY CIRCLES STATISTICAL PROCESS CONTROL JUST IN TIME


Thank You !!!

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