TOTAL QUALITY MANAGEMENT

INTRODUCTION

• In today’s world due to insufficient quality or indifference to quality lead to disputes, which imposes serious drain on the financial resources of a company and limits profit potential.

• To be competitive in today’s market, it is essential for construction companies to provide more consistent quality and value to theirowners/customers.

• It is high time to develop better and more direct relationships with our owners/customers, to initiate more teamwork at the jobsite, and to produce better quality work.

WHAT IS TOTAL QUALITY MANAGEMENT

TQM is a management philosophy, a paradigm, a continuous improvement approach to doing business through a new management model.

WHAT IS TOTAL QUALITY MANAGEMENT

TQM is a comprehensive management system which:• Focuses on meeting owners’/customers’ needs,

by providing quality services at a reasonable cost.• Focuses on continuous improvement.• Recognizes role of everyone in the organization.• Views organization as an internal system with a

common aim.• Focuses on the way tasks are accomplished.• Emphasizes teamwork

QUALITY - DEFINITIONS

• Quality is excellence that is better than a minimum standard. It is conformance to standards and ‘fitness of purpose’

• ISO 9000:2000 definition of quality- It is the degree to which a set of inherent characteristics fulfills requirements.

• Quality is ‘ fitness for use ‘ of the product –Joseph Juran.

QUALITY AND CUSTOMER EXPECTATIONS

• Quality is also defined as excellence in the product or service that fulfills or exceeds the expectations of the customer.

• There are 9 dimensions of quality that may be found in products that produce customer-satisfaction.

• Quality is not fine-tuning your product at the final stage of manufacturing,before packaging and shipping .

• Quality is in-built into the product at every stage from conceiving –specification & design stages to prototyping –testing and manufacturing stages.

• TQM philosophy and guiding principles continuously improve the Organisation processes and result in customer satisfaction.

THE 9 DIMENSIONS OF QUALITY

• Performance• Features• Conformance• -----------------------------• Reliability• Durability• Service• -----------------------------• Response- of Dealer/

Mfgr. to Customer• Aesthetics – of product• Reputation- of

Mfgr./Dealer

Cost

Performance

FeaturesService

TQM SIX BASIC CONCEPTS

• Management commitment to TQM principles and methods & long term Quality plans for the Organisation

• Focus on customers – internal & external• Quality at all levels of the work force.• Continuous improvement of the

production/business process.• Treating suppliers as partners• Establish performance measures for the

processes.

EFFECTS OF POOR QUALITY

• Low customer satisfaction• Low productivity, sales & profit• Low morale of workforce• More re-work, material & labour costs• High inspection costs• Delay in shipping• High repair costs• Higher inventory costs• Greater waste of material

BENEFITS OF QUALITY

• Higher customer satisfaction• Reliable products/services• Better efficiency of operations• More productivity & profit• Better morale of work force• Less wastage costs• Less Inspection costs• Improved process• More market share• Spread of happiness & prosperity• Better quality of life for all.

DEMING’S FOURTEEN POINTS FOR TQM

• Create constancy of purpose.• Adopt the new philosophy.• Cease dependence on inspection to achieve

quality.• End the practice of awarding business on the

basis of price tag alone.• Improve constantly and forever every process.• Institute modern training (for everybody!).• Institute modern methods of supervision

• Encourage employees to speak up.• Break down barriers between departments.• Eliminate slogans, exhortations, and targets for the work

force.• Eliminate work standards that prescribe numerical

quotas.• Remove barriers to pride in workmanship.• Institute a vigorous program of education and self-

improvement for everyone.• Place everybody in the company to work to accomplish

thetransformation and create a structure in top management that will pushevery day on the above points.

DR. JOSEPH M. JURAN

Juran, like Deming, was invited to Japan in 1954 by the Union of Japanese Scientists and Engineers (JUSE). His lectures introduced the management dimensions of planning, organizing, and controlling and focused on the responsibility of management to achieve quality and the need for setting goals.

• Juran defines quality as fitness for use in terms of design, conformance, availability, safety, and field use. Thus, his concept more closely incorporates the viewpoint of customer. He is prepared to measure everything and relies on systems and problem-solving techniques. Unlike Deming, he focuses on top-down management and technical methods rather than worker pride and satisfaction.

• Juran’s 10 steps to quality improvement are:• Build awareness of opportunity to improve.• Set-goals for improvement.• Organize to reach goals.• Provide training• Carryout projects to solve problems.• Report progress.• Give recognition.• Communicate results.• Keep score.• Maintain momentum by making annual improvement part

of the regular systems and processes of the company.

PHILIP CROSBY

• Do it right the first time• Zero Defects• Absolutes of QM

• Quality is defined as conformance to requirements, not as 'goodness' or 'elegance'

• The system for causing quality is prevention, not appraisal – Quality is Free

• The performance standard must be Zero Defects, not "that's close enough"

• The measurement of quality is the Price of Non-conformance, not indices.

• Cost of quality is only the measure of operational performance

CROSBY 14 POINTS

• Management commitment• Quality improvement team• Quality measurement• Evaluation of cost of quality • Quality awareness• Corrective action• Establish committee for zero defect planning• Supervisor training• Zero Defect Day• Goal Setting• Error cause removal• Recognition

DR.GENICHI TAGUCHI

• The Loss Function - Taguchi devised an equation to quantify the decline of a customer's perceived value of a product as its quality declines. Essentially, it tells managers how much revenue they are losing because of variability in their production process. It is a powerful tool for projecting the benefits of a quality improvement program. Taguchi was the first person to equate quality with cost.

• Orthogonal Arrays and Linear Graphs - When evaluating a production process analysis will undoubtedly identify outside factors or noise which cause deviations from the mean. Isolating these factors to determine their individual effects can be a very costly and time consuming process. Taguchi devised a way to use orthogonal arrays to isolate these noise factors from all others in a cost effective manner.

• Robustness - Some noise factors can be identified, isolated and even eliminated but others cannot. For instance it is too difficult to predict and prepare for any possible weather condition. Taguchi therefore referred to the ability of a process or product to work as intended regardless of uncontrollable outside influences as robustness. He was pivotal in many companies' development of products and processes which perform uniformly regardless of uncontrollable forces; an obviously beneficial service.

KAORU ISHIKAWA

• Simplified statistical techniques for QC• Cause and Effect diagrams (Ishikawa

Diagrams or Fish Bone Diagrams)• Company wide quality control

• quality does not only mean the quality of product, but also of after sales service, quality of management, the company itself and the human life

ISHIKAWA DIAGRAM

ISHIKAWA DIAGRAM

• Diagrams which show the causes of a certain event

• Three sets of causes • 6 M’s

• Machine• Method• Maintenance• Man• Mother Nature

ISHIKAWA DIAGRAM

• 8 Ps• Price• Promotion• Process• Place/Plant• Policies• Procedures• Product (or Service)

• 4 Ss• Surroundings• Suppliers• Systems• Skills

• Thank you!