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Chapter Two Total Quality Management. What is Quality?. A quality (from a latin word qualitas ) is an attribute or a property Attributes are ascribable by a subject, whereas properties are possessible . - PowerPoint PPT Presentation
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Chapter TwoTotal Quality
Management
What is Quality?
A quality (from a latin word qualitas) is an
attribute or a property
Attributes are ascribable by a subject, whereas
properties are possessible.
In contemporary philosophy, the idea of qualities
and especially how to distinguish certain kinds of
qualities from one another remains controversial.
In popular use, the word quality suggests a
degree of excellence-a Cartier watch, a Rolls-
Royce car, and a Christian Dior dress:
something expensive and conforming to a high,
perhaps luxurious, specification.
However, this is too imprecise and limited idea
of quality to be of any use in determining
company policy.
Different scholars give different interpretations to the
term quality:
For engineers it is conformance to specifications,
For users it is fitness for use,
For marketing it is the degree of excellence at an
acceptable price that will influence the market
share.
For customer service a quality product is that with
less customer complaint
Quality is fitness for use - Juran
Quality is conformance for requirements - Crosby
Quality means best for certain customer conditions.
These conditions are: the actual use and the selling
price of the product - Feigenbaum
Quality is defined only in terms of the agent -
Deming
Quality is providing our customers with products
and services that consistently meet their needs and
expectations - Boeing Company
Quality is doing the right thing right the first time,
always striving for improvement, and always
satisfying the customers -U.S.A. Department of
Defense
A comprehensive definition of quality is:
Exceeding Customers Expectation
Thus the closer this conformation indicates the higher the degree of
quality.
What is Management?
Definition of management
Management is the art of getting things done
through people
Management is the process of getting activities
completed efficiently and effectively with and
through other people and resources
•What is this little boy doing?
•Can you see where he is going?
•Do you know what could happen if
he falls in the water?
•Can you really see what the
consequences are going to be?
•Have you got the big picture in
mind?
•With anything that one does in life
you start with the end in mind.
You decide what you want to
achieve and then you decide how
you will work towards achieving it.
•This is what management is.
Chart the Path
Put Stepping Stones in Place
So That You and Your Followers Can Reach
Your Vision
In general "management" identifies a special
group of people whose job is to direct the effort
and activities of other people toward common
objectives.
Simply, management gets things done through
other people by planning, coordinating and
directing the activities of an organization
The decisions and judgments made are normally
oriented to the needs of the organization
The art and science of making things
happen by people who do not have
interest and make them enjoy it.
TQM is the application of quality principles to all
facets of an organization.
TQM is composed of the following three words to
have a combined effect.
Total -made up of the whole
Quality –Customer satisfaction
Management -science and art or manner of planning,
controlling, directing
Total Quality Management (TQM)
A more comprehensive definition of TQM is given
by another of the authors on classical quality
control, A.V. Feigenbaum, in his material ‘Total
Quality Control’.
Here, quality is described as “an effective
system for integrating quality improvement
efforts of the various groups of the organization,
so as to provide products and service at levels
which allow customer satisfaction.”
TQM (cont’d)
The key ideas in the definition of TQM are:
Customer Focus
Internal alignment
External alignment
Total Involvement
Continuous Improvement
Leadership Commitment
Key concepts of TQM
If a defective product enters in the market, it will
cause:
customer dissatisfaction,
unnecessary expenditure for warranty, and
poor product salability.
Having a quality product increases market share,
resulting in better profits.
The Need for Quality Control
Total Quality Management (TQM)
Gurus
W.A.Shewhart (1891-1967)
Shewhart's most important
contribution to both statistics and
industry was the development of the
statistical control of quality
The limitation was it did not find the
magnitude of change in the process,
and it was unable to quickly find large
changes within small samples
LCL
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Time
W. E. Deming, who was a statistician during 1940s,
is regarded as the father of the TQM revolution.
When he was once asked to summarize his
philosophy he replied “If I have to reduce my
message to management to just few words, I would
say, it all had to do with reducing variation”.
W. Edwards
Deming (1900–
1993)
W.Edwards Deming (1900–1993)
Deming argued that higher quality leads
to higher productivity, which, in turn,
leads to long-term competitive strength
Deming noted that workers are
responsible for 10 to 20 percent of the
quality problems in a factory, and that
the remaining 80 to 90 percent is under
management's control.
Deming's System of Profound Knowledge
Theory of Optimization
Theory of Variation
Theory of Knowledge
Theory of Psychology.
The Deming Cycle
Deming emphasized that random or common
causes of variations are inherent in the
process which managers themselves have
designed and established them in the system
unknowingly
He estimates 94% of the problems arise due
to system deficiencies rather than the fault
of operators of the system or process.
Deming (cont’d)
1. Create consistency of purpose toward
improvement of product and service, with the
aim to become competitive and stay in business
and provide jobs.
2. Adopt the new philosophy of the need for higher
quality.
3. Cease dependence on mass inspection to
achieve quality.
Deming’s fourteen points are:
Deming (cont’d)
4. End the practice of awarding business on the basis
of price tag alone.
5. Improve constantly and forever
6. Institute modern methods of training and
education on the job, including management.
7. Adopt and institute leadership.
8. Drive out fear, so that every one may work
effectively for the economy.
9. Break down barriers between staff areas.
10. Eliminate slogans and exhortations asking the work
force for unrealistic targets.
11. Eliminate numerical quotas for the work force and
numerical goals for management.
12. Remove barriers that rob people of pride of
workmanship.
13. Institute a vigorous program of education and self-
improvement for everyone.
14. Put everyone in the company to work to accomplish
the transformation.
Deming suggests that western
management suffers from the following deadly
diseases.
Lack of constancy of purpose
Emphasis on short-term profits
Evaluation of performance on annual review
Mobility of Top management
Running a company on figure alone with no
consideration for unknown figures
Excessive medical costs, and
Excessive warranty cost fuelled by lawyers.
Some of the obstacles for effective quality
management, according to him, are
Our problems are different – management
thinks
Reliance on quality control departments
Quality by inspection
Blaming the workforce
Inadequate testing of prototypes
Joseph Juran
Quality management according to
Juran consisted of three basic
processes (Juran Trilogy):
1. Quality Planning,
2. Quality Control, and
3. Quality Improvement
Juran and the Cost of Quality
There are two types of costs: these are:
1. Unavoidable Costs: preventing defects
(inspection, sampling, sorting, QC) and
2. Avoidable Costs: defects and product failures
(scrapped materials, labour for re-work,
complaint processing, losses from unhappy
customers so on)
Juran has two definitions for quality:
“Freedom from deficiencies” and “Fitness for use”
which is a utility value concept, which varies from one customer to another
Joseph Juran
His concept of “fitness for use” reflects meeting
customer needs and is based on the following
five quality characteristics, as outlined by him:
1. Technological (strength)
2. Psychological (beauty)
3. Time-oriented (reliability)
4. Contractual (guarantee)
5. Ethical (sales staff courtesy)
Joseph Juran
Juran puts his thinking about managing
quality in a trilogy of management processes:
Quality planning,
Quality control, and
Quality improvement
Joseph Juran
Quality planning has the customer at the
core to develop a product or service
feature, which responds to the customer
needs, by developing processes that are
capable of producing these features
Joseph Juran
The Quality control in the managerial process is
an essential process for assisting the operating
forces to achieve product or process goals
Like any control activity, quality control process
evaluates actual operating performance,
compares it to goals and act on difference.
Joseph Juran
The most significant contribution of Juran to
the TQM movement is the Quality
Improvement Process.
The search for never-ending improvement is
what it is all about, not just only in the quality
of product or service provided but also in the
process employed.
Joseph Juran
Juran emphasized that the improvement of
product or services and processes applies
to all customers, internal and external.
He was the first to recognize that
customers are both internal and external
Joseph Juran
The delimitation he gave for these customers is
outlined as follows.
a) Internal Customer: Are those departments or
persons who supply products to each other.
b) External Customer: These are impacted by the
product but are not members of the company
(or other institution) which produce the
product.
Joseph Juran
In order to set about improving quality,
Juran formulated ten steps which companies
can follow:
1) Build awareness of the need and
opportunity for improvement
2) Set goals for improvement
Joseph Juran
3) Organize to reach goals
4) Provide training
5) Carry out projects to solve problems
6) Report progress
7) Give recognition
8) Communicate results
9) Keep scores achieved on quality improvement
10) Maintain momentum by making annual
Improvement
Joseph Juran
Juran was also the first to point out that
the Pareto Principle could be used to
quality improvements
The basis is to distinguish the important
vital few from the trivial many
Joseph Juran
Philip Crosby
“Conformance to requirements”
Before the implementation of the program,
Crosby outlines some quality basics that
should be emphasized to management
Crosby wrote more than thirteen books in the
field of quality management and is currently
a leader in the area of quality management.
He is the founder of Philip Crosby Associates
II Inc., which engages itself in consultancy
and training service
Philip Crosby
“The four absolutes of quality”
1. Quality is defined as conformance to requirements,
not as 'goodness' or 'elegance'.
2. The system for causing quality is prevention, not
appraisal.
3. The performance standard must be Zero Defects,
not "that's close enough".
4. The measurement of quality is the Price of
Nonconformance, not indices.
Philip Crosby
Crosby has forwarded a fourteen-point plan for
quality improvements implementation issues
1. Management commitment
2. The quality improvement team
3. Quality measurement
4. Cost of quality
5. Quality awareness
Philip Crosby
6. Corrective action
7. Zero defects planning
8. Supervisor training
9. Zero Defects day
10. Goal Setting
11. Error cause removal
12. Recognition
13. Quality councils
14. Do the quality improvements process over again
Philip Crosby
Crosby attributes 80% quality problems to
management and hence the cure for these
problems lies with management leadership
He stresses that the essential ingredient is
management integrity and formal education and
training so as to build an implementation process
for quality improvement
Philip Crosby
Crosby’s other views if change in organizations is to
occur are:
1. People will take quality as seriously as management
takes it, no more.
2. Integrity is unrelenting
3. The tools of quality, like SPC, are not designed to
cause prevention throughout the organization.
4. Think about quality improvements in terms of
quality per share.
5. Every individual in the company needs
continual education.
Philip Crosby
His major contribution to the subject was the cost
of quality. It was his recommendation (in 1956)
that quality costs should be categorized and
separately managed, as exemplified in his PAF
model.
He identified three major categories; prevention
costs, appraisal costs, and failure costs.
A. V. Feigenbaum
Feigenbaum defined total quality control as:
“An effective system for integrating the quality
development, quality maintenance and
quality improvement efforts of the various
groups in an organization so as to enable
production and service at the most economic
levels which allow customer satisfaction”
A. V. Feigenbaum
Feigenbaum originated the industrial cycle.
The cycle includes marketing, design,
production, installation and service elements
which are now considered essential elements
in the management of quality in an
organization as well as in managing a quality
management system such as ISO 9000
A. V. Feigenbaum
Feigenbaum also introduced the concept of
hidden plant from the point of view that
waste lowered the real potential capacity of
a plant because of rework.
The hidden plant will be utilized when
actually doing things right first time
A. V. Feigenbaum
David A.Garvain
• Garvin contributed greatly in influencing
quality management theories.
• Garvin has categorized his approaches into
five:
1. Transcendental approach
2. Product - based approach
3. User - based approach
4. Manufacturing- based approach
5. Value - based Approach
The other major contribution of Garvin is the ’Eight Dimensions of Quality’
1. Performance
2. Features
3. Reliability
4. Conformance
5. Durability
6. Serviceability
7. Aesthetics, And
8. Perceived Quality
David A.Garvain
These are factors how a customer
perceivesquality
His contribution includes company-wide
quality control and quality circle.
The Japanese type of TQC is that quality
control should be every employee’s
responsibility , meaning every one in the
company, in all divisions must study, practice
and participate in quality control.
Kaoru Ishikawa
Kaoru Ishikawa
7 Basic Tools:
Developed Histograms, Pareto
Charts, Cause and Effect
Diagrams, Run Charts, Scatter
Diagrams, Flow Charts, Control
Charts
Developed quality circle
• Ishikawa’s view is that TQC is a thought
revolution in Management.
• Many companies have transformed
themselves after applying QC.
Kaoru Ishikawa
The manner in which companies were
transformed may be classified in the following six
categories, which they commonly share:
1. Quality first: not short-term profit first.
2. Consumer orientation: Not producer
orientation;
3. The next process is your customer (internal
customer).
Kaoru Ishikawa
4. Using facts and data to make presentations,
utilization of statistical methods.
5. Respect for humanity as a management
philosophy full participatory management.
6. Cross function management.
Kaoru Ishikawa
Ishikawa summarizes his views of quality as follows:
a) QC is the responsibility of all workers and all
divisions
b) Management should set out long-term profits and
put quality first and destroy sectionalism.
c) TQC is management with facts with a group
activity and can’t be done by individuals i.e. it
calls for teamwork.
Kaoru Ishikawa
d) TQC will not fail if all members cooperate,
from the CEO down to line workers.
e) If TQC is implemented company-wide, it
can contribute to the improvement of a
company’s corporate health and
character. TQC is management based on
respect for humanity.
Kaoru Ishikawa
f) Middle management will be frequently
involved in TQC and criticized and should
be prepared to.
g) Don’t confuse objective with the means,
such as statistical quality control, to attain
them.
h) QC circle activities are part of TQC.
Kaoru Ishikawa
What do you feel?
Taguchi is a prize-winning Japanese
statistician;
His major contribution is effective
quality of design.
His method focuses on determining
the cost of not meeting the specified
target value.
Genichi Taguchi
Genichi Taguchi
The basic elements of his ideas can
be considered under four main
headings:
1. Taguchi Loss Function
2. Robust Design of products, services
and processes (Offline quality
control)
3. Reduction in variation
4. Statistically planned experiments
Consequently, he developed the “loss function” given
by the quadratic equation.
Where:
L = Loss in terms of money
K = Cost coefficient
x = Measured Value (Value of quality
characteristics
t = Target value
“A business that misuses what it has will continue to misuse
what it can get. The point is--cure the misuse.” - Ford and Crowther
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Genichi Taguchi
Taguchi favors a more proactive quality
practice of quality assurance through effective
design and development.
Taguchi suggests that the time and effort spent
in designing and planning will save much more
effort, time and money later during on-line
quality control.
Genichi Taguchi
Taguchi’s Robust Design • To achieve economical product quality design, Taguchi
proposed three design phases:
• System design: design engineers use their
practical experience, along with scientific and
engineering principles, to create a viably functional
design.
• Parameter design: The parameter design phase
determines the optimal settings for the product or
process parameters.
• Tolerance design: establish tolerances wide
enough to reduce manufacturing costs, while at the
same time assuring that the product or process
characteristics are within certain bounds
• Masaaki Imai (born 1930, in Tokyo) is a
consultant in the field of quality management.
• Known as the “Lean Guru” and the father of
Continuous Improvement (CI) Masaaki Imai has
been a pioneer and leader in spreading the
Kaizen philosophy all over the world.
Masaaki Imai
Masaaki Imai
Imai has brought together the
management philosophies, theories
and tools that have been popular in
Japan over the years as a single
concept - kaizen
Kaizen means continuous process
improvement involving everybody,
signifying the constant and gradual
improvement, no matter how small,
which should be taking place all the
time, in every process.
TQM
Quality, competitiveness and customers
– The reputation of an organization is built by quality,
reliability, delivery and price: Quality is the most
important
– Quality is meeting the customer requirements.
– Reliability is the ability of the product or service to
continue to meet the customer requirements over time
without failure.
– Organizations delights the customer by consistently
meeting their requirements, and then achieve a reputation
of ‘excellence’ and customer loyalty.
– Reputations for poor quality last for a long time, and
good or bad reputations can become national or
international.
TQMUnderstanding and building the quality chains
– Throughout all organizations there are a series of
internal suppliers and customers. These form the so-
called ‘quality chains’, the core of ‘company-wide
quality improvement’.
– Measurement of capability is vital.
– There are two distinct but interrelated aspects of
quality, design and conformance to design.
• Quality of design is a measure of how well the product or
service is designed to achieve the agreed requirements.
• Quality of conformance to design is the extent to which the
product or service achieves the design.
TQMManaging quality
– ‘Have we done the job correctly?’ should be replaced by
‘Are we capable of doing the job correctly?’ and ‘Do we
continue to do the job correctly?’.
– Everything we do is a process, which is the
transformation of a set of inputs into the desired outputs.
– Inspection is not quality control. The latter is the
employment of activities and techniques to achieve and
maintain the quality of a product, process or service.
– Quality assurance is the prevention of quality problems
through planned and systematic activities.
TQMQuality starts with understanding the needs
– Marketing processes establish the true requirements which
must be communicated properly throughout the organization
– Excellent communications between customers and suppliers:
organization must establish feedback systems
– Appropriate research techniques should be used to
understand the ‘market’ and keep close to customers
Quality in all functions
– All members of an organization need to work together on
organization-wide quality improvement.
– Top management must really be committed.
New TQM Model
The four Ps and three Cs of TQM –TQM model
• Planning, People, Processes and Performance are key
to delivering quality products and services to
customers and generally improving overall
Performance
• The three Cs of Culture, Communication, and
Commitment provide the glue or ‘soft outcomes’ of
the model which will take organizations successfully
into the twenty-first century
New TQM Model
Quality Function Deployment (House of Quality)
• It originated in Japan in 1972 at Mitsubishi but it
has been developed in numerous ways by Toyota
and its suppliers
• The ‘house of quality’ is the framework of the
approach to design management known as
Quality Function Deployment (QFD).
• Quality function deployment (QFD) is a ‘system’
for designing a product or service, based on
customer requirements, with the participation of
members of all functions of the organization
What is Quality Function Deployment?
• Quality Function Deployment (QFD) is a way
for accurately translating customer quality
requirements into goods or services, which meet
the stated needs.• The technique uses a series of interconnected
schematics, often referred to as the “House(s) of
Quality”.• A House of Quality can be used to systematically
codify customer requirements for quality at the
highest level in the system, into the technical and
operational provisioning requirements of the supplier
at the lower level in the system.
QFD
• Quality Function Deployment (QFD): is a useful tool for translating the voice of the customer into specific technical requirements
• Quality function deployment is also useful in enhancing communication between different functions, such as marketing, operations, and engineering.
• QFD enables us to view the relationships among the variables involved in the design of a product, such as technical versus customer requirements.
Quality Function Deployment
The activities included in QFD are:
1. Market research
2. Basic research
3. Innovation
4. Concept design
5. Prototype testing
6. Final-product or service testing
7. After-sales service and troubleshooting
Basic Outline for House of Quality
Sequence of Constructing a House of Quality
1. Identify customer attributes and their importance
2. Identify counterpart characteristics
3. Map the customer attributes to the counterpart characteristics
4. Undertake an evaluation of customer attributes requirements
5. Evaluate the counterpart characteristics of competitive products and create targets
6. Determine those counterpart characteristics for transfer
Question: Build a House of Quality for production of a kettle
Sub Section
Stage Input Output
1 Product Planning
Customer Requirements
Design Requirements
2 Parts Design Design Requirements
Part Characteristics
3 Process Planning
Part Characteristics
Manufacturing Operations
4 Production Planning
Manufacturing Operation
Production Requirements
Kettle boils quickly < 1min
Volume/ power ratio
< 1 min
Volume/ power ratio
Pressing
Pressing Pressing machine, logistics, etc
House of Quality for production of a kettle
Downstream Transfer of Counterpart Characteristics
QFD for Students Backpack
What are the benefits of using QFD?
• It focuses design of new products and services based on customer requirements (Customer focused).
• It analyses the performance of the company’s products against those of its principal competitors for key customer requirements (Benchmarking).
• It reduces the number of post-release design changes, by ensuring focused effort is put into the planning phase.
• It promotes teamwork, and break down barriers between departments by involving marketing, engineering and manufacturing from the outset of each project.
Continuous Improvement • Numbers and information will form the basis
for understanding, decisions, and actions in
never-ending improvement – record, use/analyze
data and act
• A set of simple tools are needed to interpret
fully and derive use from the data. More
sophisticated techniques may need to be
employed occasionally.
• The effective use of the tools requires the
commitment of the people who work on the
processes. This in turn needs management
support
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