TOTAL QUALITY MANAGEMENT: TOWARD THE EMERGING PARADIGM

University of Santo Tomas

Faculty of Engineering

Industrial Engineering Department

IE 412 – Industrial Quality Control

Reported by:

Group # 9 Group # 10 Kurata, Yoshiki Chua, Mark

Genesis Agpasa, Eunice Bianca Narito, Adrian Noel

4IE-B

“Quality is everyone’s responsibility”

-Edward Deming

Introduction

Principles

Advantages

Comparison

Framework and

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Companies that use

TQM

What is TQM?o Refers to an integrated approach that seeks to

improve quality and performance which will meet or exceed customer expectations and to develop continuous improvement.

o Focuses on encouraging a continuous flow of incremental improvements from the bottom of the organization’s hierarchy.

o 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.

Introduction

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TQM

TQM 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 co’s performance.

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TQM

Continuous Process Improvement Cycle

Plan

Do

Act

Check

1. Identify the opportunity

2. Analyze the process

3. Develop the optimal Solution

4. Implement5. Study the results

6. Standardize the solution

7. Plan for the future

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TQM

In Japanese, TQM comprises four process steps, namely:

Kaizen Atarimae 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.

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TQM

TQM Six Basic Concepts1. A committed and involved management to provide

long-term-top-to-bottom organizational support.

2. An unwavering focus on the customer, both internally and externally.

3. Effective involvement of the business and production process.

4. Continuous improvement of the business

and production process.

5. Treating suppliers as partners.

6. Establish performance measures for the process.

Introduction

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Companies that use

TQM

7 Important Principles of Total Quality Management

1. Quality can and must be managed.2. Processes, not people, are the problem.3. Don’t 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.

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TQM

Principles of TQMCriteria:

1. Leadership

2. System Approach to Management

3. Customer Driven Organization

4. Factual Approach in Decision Making

5. Involvement of People

6. Process Approach

7. Continual Improvement

8. Mutually Beneficial Customer-Supplier Relationships

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TQM

5 Main Advantages of TQM1. Encourages a strategic approach to management at the

operational level through involving multiple departments in cross-functional improvements and systemic innovation processes;

2. Provides high return on investment through improving efficiency;

3. Works equally well for service and manufacturing sectors;

4. Allows organizations to take advantage of developments that enable managing operations as cross-functional processes; and

5. Fits an orientation toward inter – organizational collaboration and strategic alliances through establishing a culture of collaboration among different departments within organization.

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TQM and Continuous Improvement Firm

Two different perspectives of the same phenomenon

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

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

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TQM

TQM and JIT

TQM – ensures that the improvements are fundamental and not superficial

JIT – seeks improvement through reduction of waste.

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Comparison of OLD and TQM CulturesElement Old TQM

By Definition Product oriented Customer oriented

Priority After cost On par to cost

Time frame Short Term Long Term

Emphasis Detection Prevention

Errors Operations Systems

Responsibility Quality Control Everyone

Problem solving Managers Teams

Procurement Price Life-cycle costs

Manager’s Role Plan, assign Control Delegate, coach, facilitate

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TQM Framework

Gurus Tools and Techniques

Principles and Practices

Product or Service Realization CUSTOMERS

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Five Steps in TQM

Determine what customers want Develop products and services Develop production system Monitor the system Include customers and suppliers

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TQM

TQM Activitieso ISO, OHSAS, SA systemso Quality Circleso Professional Circleso 5So Employee Suggestion Schemeo Business improvement through Benchmarking,

Six –Sigma conceptso Balanced Score Cardo Kaizen

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TQM

Barriers in Successful TQM

Lack of management commitment Inability to change org. culture Improper planning Lack of continuous training and Education Lack of data & results or access to data or

ineffective measurement Inadequate attention to customer (I&E) Inadequate use of empowerment & teamwork Incompatible org structure , individualistic

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Company that practices TQM

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TQM

FORD Motor Companyo is an American multinational automaker based

in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903.

o 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 2010 Fortune 500 list, based on global revenues in 2009 of $118.3 billion.

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TQM techniques that Ford used:

 Six Sigma Quality Operating System or (QOS) developed their own quality process or

5S. The DMAIC process, or define,

measure, analyze, improve, and control has built an overall strategy for consistency in their teams,

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Federal 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 world’s 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.

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Leading the Transition

Commit to quality Know you Company’s Systems and

Values Participate in your Company’s Quality

Processes Integrate Quality in the Company’s

Management model

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TQM

XEROX

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

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TQM

XEROX Xerox has established a program called

Leadership Through Quality (LTQ) and a Quality Training Task Force for its company’s 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).

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The XEROX Corporation focuses on:

o Benchmarkingo a reduced supplier baseo and leadership teams

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TQM

Toyota Corporation

a multinational automaker headquartered in Toyota, Aichi, Japan. In 2010, Toyota Motor Corporation employed 317,734 people worldwide . TMC is the world's largest automobile manufacturer by sales and production.

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Toyota Corporation uses:

5S Lean manufacturing JIT Kaizen Six Sigma

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TQM

Referenceso Besterfield, D., et.al. Total Quality Management, Third

Edition. Prentice Hall. 2003o Cortada, J. & Woods, J. The Quality Yearbook, 1996 Edition.

McGraw Hill. 1996o Bounds, G., et.al. Beyond Total Quality Management.

McGraw Hill. 1994o George, S. & Weimerskirch, A. Total Quality Management,

Second Edition. John Wiley & Sons Inc. 1998o Lawler, E., Morhman, S., and Ledford, G. Jr. Employeee

Involvement and Total Quality Management. Jossey-Bass Publishers. 1992

o Gitlow, H. & Gitlow, S. Total Quality Management in Action. Prentice Hall. 1994

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Referenceso http://

www.brighthub.com/office/project-management/articles/72279.aspx

o http://en.wikipedia.org/wiki/Fordo http://en.wikipedia.org/wiki/Toyotao http://www.stfrancis.edu/content/ba/ghkickul/stuwebs/btopics

/works/tqmxerox.htm

Introduction

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Companies that use

TQM