total quality management: tqm origins, evolution & key elements
TRANSCRIPT
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TOTAL QUALITY MANAGEMENT:TQM
Origins, Evolution & key elements
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What is Quality?
Quality is “fitness for use”
(Joseph Juran)
Quality is “conformance to requirements”
(Philip B. Crosby)
Quality of a product or services is its ability to satisfy the needs and expectations of the customer
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Evolution of Quality Management
Inspection
Quality Control
Quality Assurance
TQM
Salvage, sorting, grading, blending, corrective actions, identify sources of non-conformance
Develop quality manual, process performance data, self-inspection, product testing, basic quality planning, use of basic statistics, paperwork control.
Quality systems development, advanced quality planning, comprehensive quality manuals, use of quality costs, involvement of non-production operations, failure mode and effects analysis, SPC.
Policy deployment, involve supplier & customers, involve all operations, process management, performance measurement, teamwork, employee involvement.
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W. E. Deming and the 6 Era’s of Quality
1920’s : New statistical thinking and methods in manufacturing1930/40’s : Use of statistical thinking outside
manufacturing 1950/60’s : Systems of improvement1970/80’s : The fourteen pointsLate 80’s : The “New Climate”1990’s : System of Profound Knowledge
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Deming’s view of a production as a system
Consumer Research
Design & redesign
Receipt & test of materials
Suppliers, materials & equipment
Production, assembly, inspection
Distribution Consumers
Test of processes, machines, methods, cost
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Improve Quality
Productivity improves
Provide jobs and more jobs
Deming’s Chain Reaction
Cost decreases because of less rework, fewer mistakes, fewer delays, snags, better use of machine time and materials
Stay in business
Capture the market with better quality and lower price
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PLAN
CHECK
DOACT
The Deming Cycle or PDCA Cycle
Plan a change to the process. Predict the effect this change will have and plan how the effects will be measured
Implement the change on a small scale and measure the effects
Adopt the change as a permanent modification to the process, or abandon it.
Study the results to learn what effect the change had, if any.
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W. Edwards Deming’s 14 Points
Create constancy of purpose towards improvement of product and services.
Adopt the new philosophy. We can no longer live with commonly accepted levels of delays, mistakes, defective workmanship.
Cease dependence on mass inspection. Require, instead, statistical evidence that quality is built in.
End the practice of awarding business on the basis of price tag.
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W. Edwards Deming’s 14 Points
Find problems. It is management’s job to work continually on the system.
Institute modern methods of training on the job.
Institute modern methods of supervision of production workers. The responsibility of foremen must be changed from numbers to quality.
Drive out fear that everyone may work effectively for the company.
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Break down barriers between departments.
Eliminate numerical goals, posters and slogans for the workforce asking for new levels of productivity without providing methods.
Eliminate work standards that prescribe numerical quotas.
Remove barriers that stand between the hourly worker and his right to pride of workmanship.
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W. Edwards Deming’s 14 Points
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Institute a vigorous programme of education and retraining.
Create a structure in top management that will push everyday on the above 13 points.
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W. Edwards Deming’s 14 Points
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Deming’s System of Profound Knowledge
Appreciation for system
Knowledge about variation
Theory about knowledge
Knowledge of psychology
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Philip Crosby’s Four Absolutes
Definition : Conformance to requirements
System of quality is prevention
Performance Standard : Zero Defects
Measurement : Price of non-conformance (PON)
What is Quality?
What system is needed to cause quality?
What performance standard should be used?
What measurement system is required?
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Crosby’s Successful Company
Characteristics of the Eternally Successful Organisation
People do things right routinely
Growth is profitable and steady
Customer needs are anticipated
Change is planned and managed
People are proud to work there
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Philip B. Crosby’s 14 Points
Make it clear that management is committed to quality.
Form quality improvement teams with representatives from each department.
Determine where current and potential quality problems lie.
Evaluate the cost of quality and explain its use as a management tool.
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Raise the quality awareness and personal concern of all employees.
Take actions to correct problems identified through previous steps.
Establish a committee for the zero defects programme.
Train supervisors to actively carry out their part of the quality improvement programme.
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Philip B. Crosby’s 14 Points
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Hold a ‘zero defects day’ to let all employees realise that there has been a change.
Encourage all individuals to establish improvement goals for themselves and their groups.
Encourage employees to communicate to management the obstacles they face in attaining their improvement goals.
Recognise and appreciate those who participate.
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Philip B. Crosby’s 14 Points
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Establish quality councils to communicate on a regular basis.
Do it all over again to emphasise that the quality improvement programme never ends.
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Philip B. Crosby’s 14 Points
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Joseph M. Juran’s Quality Trilogy
Quality Planning
Establish quality goals
Identify customer needs
Translate needs into our language
Develop a product for these needs
Optimise product features for these needs
Quality Control
Prove the process can produce under operating conditions
Transfer process to operation
Quality Improvement
Seek to optimise the process via tools of diagnosis
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Juran’s Trilogy Diagram
Quality Planning Quality control (during operations)
Original zone of quality control
Quality improve -ment
New zone of quality control
Cost of Poor Quality
TIME
20
40
0 0
Lessons learned
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1) Identify who are the customers2) Determine the customer’s needs3) Translate the needs into our language4) Develop a product to meet those needs5) Optimise a product so as to meets our needs as well as the customer’s.6) Develop a process which is able to produce the product7) Optimise the process8) Prove the process can make the product under operating conditions
Juran’s Quality Planning Road Map
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Joseph M.Juran and the Cost Of Quality
2 types of costs:
Unavoidable Costs: preventing defects (inspection, sampling, sorting, QC)
Avoidable Costs: defects and product failures (scrapped materials, labour for re-work, complaint processing, losses from unhappy customers
“Gold in the Mine”
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Joseph M.Juran and the Cost Of Quality
100% defective Point of “Enough quality”
Total Costs
Unavoidable costs
Avoidable costs
Costs
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Joseph M. Juran’s 10 Points
Build awareness of the need and opportunity for improvement.
Set goals for improvement.
Organise to reach the goals (establish a quality council, identify problems, select projects, appoint teams, designate facilitators)
Provide training.
Carry out projects to solve problems
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Report progress.
Give recognition.
Communicate results.
Keep score.
Maintain momentum by making annual improvement part of the regular systems and process of the company.
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Joseph M. Juran’s 10 Points
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What is TQM?
Constant drive for continuous
improvement and learning.
Concern for employee
involvement and development
Management by Fact
Result FocusPassion to deliver customer value /
excellence
Organisation response ability
Actions not just words
(implementation)Process
Management
Partnership perspective (internal / external)
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Learning
LEARNING AND TQM
Process Improvement
Quality Improvement
Customer Satisfaction
Shareholder Satisfaction
Employee Satisfaction
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BASIC PRINCIPLES OF TQM
Approach Management Led
Scope Company Wide
Scale Everyone is responsible for Quality
Philosophy Prevention not Detection
Standard Right First Time
Control Cost of Quality
Theme On going Improvement
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FOUR KEY PRINCIPLESFOUR KEY PRINCIPLES
•Measure quality so you can affect it
•Focus on a moving customer
•Involve every employee
•Think long term - Act short term
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THE CASE FOR QUALITY
1 Success of competitors who take quality seriously
2 Rising expectations of customers
3 Quality differentiates companies from the competition
4 Narrowing of supplier bases by quality conscious companies
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5 Growing evidence that growth in market share comes from sustained quality.
6 Cost advantages
7 High cost of catastrophic failure
8 Inspection poor substitute for right first time
THE CASE FOR QUALITY
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SEVEN DEADLY SINS OF TQMSEVEN DEADLY SINS OF TQM
•Flight to nowhereFlight to nowhere
•One size fits allOne size fits all
•Substituting TQM for leadershipSubstituting TQM for leadership
•Inside - Out indicatorsInside - Out indicators
•Mandatory religionMandatory religion
•Quality kept as a separate activityQuality kept as a separate activity
•Teaching to the testTeaching to the test
Booz-Allen & HamiltonBooz-Allen & Hamilton
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IS QUALITY A SOUND INVESTMENT?Year Company Stock Growth (Oct 94)1988 Motorola 373.0%1988 Westinghouse (CNFD) - 49.6%1989 Xerox (BPS) 75.9%1990 General Motors 1.6%1990 Federal Express 10.6%1990 IBM (IBM Rochester) - 34.9%1991 Selectron 526.9%1992 AT&T (UCS) 32.2%1992 AT&T (TSBU) 32.2%1992 Texas Instruments (DS&E) 106.8%1993 Zyta 8.4%1994 Eastman Chemical 18.5%
Total Stock Value £23016 (91.8% growth)Standard & Poor 500 Stock value £15911 (32.6% growth)Source: US Dept. of Commerce Study 1995
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THE NEW ISO 9000 2000QUALITY STANDARD
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REASONS FOR CHANGEREASONS FOR CHANGE
• ISO Technical Committee (TC) argue that:The main reason for the year 2000 revision is to give users the opportunity to add value to activities and to improve their performance continually by focusing on the major processes within the organisation
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ISO 9000 2000 CHANGESISO 9000 2000 CHANGES
• CUSTOMER FOCUSED ORGANISATION
• LEADERSHIP
• INVOLVEMENT OF PEOPLE
• PROCESS APPROACH
• SYSTEM APPROACH TO MANAGEMENT
• CONTINUAL IMPROVEMENT
• FACTUAL APPROACH TO DECISION MAKING
• MUTUALLY BENEFICIAL SUPPLIER RELATIONSHIPS
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IMPLEMENTATION PRINCIPLESIMPLEMENTATION PRINCIPLES
• MANAGEMENT RESPONSIBILITY
• RESOURCE MANAGEMENT
• PRODUCT REALIZATION
• MEASUREMENT, ANALYSIS AND IMPROVEMENT
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More clearly defined requirementsMore clearly defined requirements
• Continual improvement• increased emphasis on the role of top
management• establishment of measurable objectives
at relevant functions and levels• Monitoring of information of customer
satisfaction and/or dissatisfaction as a measurement of the system performance
• Increased attention to resource availability; determination of training effectiveness
• Measurement extending to the system, process, and product
• Analysis of collected data on the performance of the quality management system
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Quality is a Journey, not a Destination