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Total quality management: Toward the emerging paradigm

University of Santo TomasFaculty of EngineeringIndustrial Engineering DepartmentIE 412 Industrial Quality ControlReported by:

Group # 9Group # 10 Kurata, Yoshiki Chua, Mark Genesis Agpasa, Eunice Bianca Narito, Adrian Noel

4IE-BQuality is everyones responsibility

-Edward Deming

Mark Chua2What is TQM?Refers to an integrated approach that seeks to improve quality and performance which will meet or exceed customer expectations and to develop continuous improvement.Focuses on encouraging a continuous flow of incremental improvements from the bottom of the organizations hierarchy.It is not a complete solution formula as viewed by many formulas cannot solve managerial problems, but a lasting commitment to the process of continuous improvement.

Mark Chua3TQM is an operating philosophy and management tool that focuses on continuous process improvement. Everything is a scientific method. A use of process. Do it right the first time thru universal participation. Teams as well as individuals that results in customer satisfaction. Internal and External customers ultimately cos performance.

Yoshiki Kurata4Continuous Process Improvement CyclePlanDoActCheck1. Identify the opportunity2. Analyze the process3. Develop the optimal Solution4. Implement5. Study the results6. Standardize the solution7. Plan for the future

Yoshiki Kurata5In Japanese, TQM comprises four process steps, namely:KaizenAtarimae Hinshitsu Kansei Miryokuteki Hinshitsu

-TQM requires that the company maintain this quality standard in all aspects of its business. This requires ensuring that things are done right the first time and that defects and waste are eliminated from operations.

Yoshiki Kurata6TQM Six Basic ConceptsA committed and involved management to provide long-term-top-to-bottom organizational support.An unwavering focus on the customer, both internally and externally.Effective involvement of the business and production process.Continuous improvement of the businessand production process.Treating suppliers as partners.Establish performance measures for the process.

Eunice Agpasa77 Important Principles of Total Quality Management1. Quality can and must be managed.2. Processes, not people, are the problem.3. Dont treat symptoms, look for the cure.4. Every employee is responsible for quality.5. Quality must be measurable.6. Quality improvements must be continuous.7. Quality is a long-term investment.

Eunice Agpasa8Principles of TQMCriteria:

LeadershipSystem Approach to ManagementCustomer Driven OrganizationFactual Approach in Decision MakingInvolvement of PeopleProcess ApproachContinual ImprovementMutually Beneficial Customer-Supplier Relationships

Eunice Agpasa95 Main Advantages of TQMEncourages a strategic approach to management at the operational level through involving multiple departments in cross-functional improvements and systemic innovation processes;Provides high return on investment through improving efficiency;Works equally well for service and manufacturing sectors;Allows organizations to take advantage of developments that enable managing operations as cross-functional processes; andFits an orientation toward inter organizational collaboration and strategic alliances through establishing a culture of collaboration among different departments within organization.

Adrian Narito10TQM and Continuous Improvement FirmTwo different perspectives of the same phenomenon

The TQM Perspective the beliefs and practices required of management to bring about and perpetuate a continuous improvement firm (CIF).

The CIF Perspective the organization itself in all its integrity, full-blown, operating and practicing the Total Quality Management (TQM) approaches.

Adrian Narito11TQM and JITTQM ensures that the improvements are fundamental and not superficial

JIT seeks improvement through reduction of waste.

Yoshiki Kurata12Comparison of OLD and TQM CulturesElementOld TQMBy DefinitionProduct orientedCustomer orientedPriorityAfter costOn par to costTime frameShort TermLong TermEmphasisDetectionPreventionErrorsOperationsSystemsResponsibility Quality ControlEveryoneProblem solvingManagersTeamsProcurementPriceLife-cycle costsManagers RolePlan, assign ControlDelegate, coach, facilitate

Yoshiki Kurata13TQM FrameworkGurusTools and TechniquesPrinciples and PracticesProduct or Service RealizationCUSTOMERS

Yoshiki Kurata14Five Steps in TQMDetermine what customers wantDevelop products and servicesDevelop production systemMonitor the systemInclude customers and suppliers

Eunice Agpasa15TQM ActivitiesISO, OHSAS, SA systemsQuality CirclesProfessional Circles5SEmployee Suggestion SchemeBusiness improvement through Benchmarking, Six Sigma conceptsBalanced Score CardKaizen

Eunice Agpasa16Barriers in Successful TQMLack of management commitmentInability to change org. cultureImproper planningLack of continuous training and EducationLack of data & results or access to data or ineffective measurementInadequate attention to customer (I&E)Inadequate use of empowerment & teamworkIncompatible org structure , individualistic

Yoshiki Kurata17Company that practices TQM

FORD Motor Companyis an Americanmultinationalautomaker based inDearborn, Michigan, a suburb ofDetroit. The automaker was founded byHenry Fordand incorporated on June 16, 1903.Ford is the second largest automaker in the U.S. and the fifth-largest in the world based on annual vehicle sales in 2010.At the end of 2010, Ford was the fifth largest automaker in Europe.Ford is the eighth-ranked overall American-based company in the 2010Fortune 500list, based on global revenues in 2009 of $118.3billion.

Mark Chua19TQM techniques that Ford used:Six SigmaQuality Operating System or (QOS)developed their own quality process or 5S.TheDMAIC process, or define, measure, analyze, improve, and control has built an overall strategy for consistency in their teams,

Mark Chua20Federal Express (FedEx)FedEx created the overnight air express business in 1973. Ten years later, it was the first U.S. company to top $1 billion in revenues in its first decade. The company is the worlds largest express transportation company: more than 110,000 employees moved more than 2million items to over 200 countries each business day. In 1990, FedEx became the first service company to win the Baldrige Award.

Adrian Narito21Leading the TransitionCommit to qualityKnow you Companys Systems and ValuesParticipate in your Companys Quality ProcessesIntegrate Quality in the Companys Management model

Adrian Narito22XEROXThe Xerox Corporation started its thrive towards TQM in the 1970s with the invention of PARC, Palo Alto Research Center.

Mark Chua23XEROXXerox has established a program called Leadership Through Quality (LTQ) and a Quality Training Task Force for its companys leadership teams. "Today, more than 100,000 Xerox employees worldwide have been trained in this process, which stresses continuous improvement and defines quality precisely as meeting customer requirements" (Evans-Correia, 1997, 135).

Mark Chua24The XEROX Corporation focuses on:Benchmarkinga reduced supplier baseand leadership teams

Mark Chua25Toyota Corporationamultinationalautomakerheadquartered in Toyota, Aichi, Japan. In 2010, Toyota Motor Corporation employed 317,734 people worldwide .TMC is the world's largestautomobile manufacturerby salesand production.

Adrian Narito26Toyota Corporation uses:5SLean manufacturingJITKaizenSix Sigma

Adrian Narito27ReferencesBesterfield, D., Total Quality Management, Third Edition. Prentice Hall. 2003Cortada, J. & Woods, J. The Quality Yearbook, 1996 Edition. McGraw Hill. 1996Bounds, G., Beyond Total Quality Management. McGraw Hill. 1994George, S. & Weimerskirch, A. Total Quality Management, Second Edition. John Wiley & Sons Inc. 1998Lawler, E., Morhman, S., and Ledford, G. Jr. Employeee Involvement and Total Quality Management. Jossey-Bass Publishers. 1992Gitlow, H. & Gitlow, S. Total Quality Management in Action. Prentice Hall. 1994