OM-460: Total Quality Management

Introduction to TQMResource Person

Haris Aslam

History of Quality Management

• Skilled craftsmanship during Middle Ages

• Industrial Revolution: rise of inspection and

separate quality departments

• Statistical methods at Bell System

• Quality control during World War II

• Quality management in Japan

History of Quality Assurance

• Quality awareness in U.S. manufacturing industry during 1980s: “Total Quality Management”

• Malcolm Baldrige National Quality Award (1987) • Development of Quality Standards in Europe• Quality in service industries, government, health

care, and education• Current and future challenge: keep progress in

quality management alive

Definitions of Quality

• Product-based definition: quantities of product

attributes

• User-based definition: fitness for intended use

• Value-based definition: quality vs. price

• Manufacturing-based definition: conformance to

specifications

Total Quality Management

• People-focused management system

• Focus on increasing customer satisfaction and reducing

costs

• A systems approach that integrates organizational

functions and the entire supply chain

• Stresses learning and adaptation to change

• Based on the scientific method

Principles of Total Quality

• Customer and stakeholder focus

• Participation and teamwork

• Process focus and continuous improvement

Continuous Improvement

• Enhancing value through new products and

services

• Reducing errors, defects, waste, and costs

• Increasing productivity and effectiveness

• Improving responsiveness and cycle time

performance

Deming’s View of a Production System

Suppliers ofmaterials and equipment

Receipt and test of materials

Design and Redesign

Consumer research

ABCD

Production, assembly inspection

Tests of processes, machines, methods

Distribution

Consumers

INPUTS PROCESSES OUTPUTS

Learning

• The foundation for improvement … Understanding

why changes are successful through feedback

between practices and results, which leads to new

goals and approaches

• Learning cycle:

– Planning

– Execution of plans

– Assessment of progress

– Revision of plans based on assessment findings

Quality and Profitability

Improved quality of design

Higher perceived value

Increased market share

Higher prices

Increased revenues

Improved quality of conformance

Lower manufacturing and

service costs

Higher profitability

Three Levels of Quality

• Organizational level: meeting external customer

requirements

• Process level: linking external and internal

customer requirements

• Performer/job level: meeting internal customer

requirements

Quality and Personal Values

• Personal initiative has a positive impact on business success

• Quality begins with personal attitudes

• Quality-focused individuals often exceed customer expectations

• Attitudes can be changed through awareness and effort (e.g., personal quality checklists)

Quality Guru’s

• Dr. Shewhart

• W. Edwards Deming

• Joseph M. Juran

• Philip B. Crosby

• Kaoru Ishikawa

• Genichi Taguchi

Dr. Shewhart

• Dr. Shewhart was the first person to encourage the use of easy-to-use statistics to remove variation – ‘Dr. Walter Shewhart suggested two types of variation:

– Common (Chance) Causes

• Controlled variation that is present in a process due to the very nature of the process.

– Special (Assignable) Causes

• Uncontrolled variation caused by something that is not normally part of the process.

Dr. Shewhart

• Inventor of Control Charts

• Regular plotting of data on an SPC chart will tell if the process is

out-of-control (subject to special causes)

• Dr. Shewhart originated the PLAN, DO, STUDY,

ACT cycle for analysis of problems

Juran’s Quality Trilogy

• Managing for Quality – Quality Planning: The process of understanding what

the customer needs and designing all aspects of a system to meet those needs reliably.

– Quality Control: Used to constantly monitor performance for compliance with the original design standards.

• If performance falls short of the standard, plans are put into action to deal quickly with the problem.

– Quality Improvement: Occurs when new, previously un-obtained, levels of performance ~ Breakthrough Performance ~ are achieved!

Phillip B. Crosby

• Quality is free . . . :

• “Quality is free. It’s not a gift, but it is free. What costs money are the unquality things -- all the actions that involve not doing jobs right the first time.”

Philip B. Crosby

Absolutes of Quality Management:• Quality means conformance to requirements

• Problems are functional in nature

• There is no optimum level of defects

• Cost of quality is the only useful measurement

• Zero defects is the only performance standard

Kaoru Ishikawa

– Two biggest contributions: Quality circles & Cause

& Effect Diagrams

– Focused on four areas to influence quality:

• Market-in Quality

• Worker Involvement

• Quality Begins and Ends with Education

• Selfless Personal Commitment

Dr. Ishikawa’s Cause and Effect Diagram

Genichi Taguchi

• Pioneered a new perspective on quality based on the economic value of being on target and reducing variation and dispelling the traditional view of conformance to specifications:

No Loss LossLoss

Tolerance

0.500 0.5200.480

Dr. W. Edwards Deming (1900-1993)

– The Father of Quality Management

– Strongly humanistic philosophy

– “Problems in a production process are due to flaws in the design of the system, as opposed to being rooted in the motivation or professional commitment of the workforce”.

– Quality is maintained and improved when leaders, managers, and the workforce understand and commit to constant customer satisfaction through continuous quality improvement.

Deming Chain Reaction

Improve quality

Costs decrease

Productivity improves

Increase market share with better quality and lower prices

Stay in business

Provide jobs and more jobs

Deming’s System of Profound Knowledge

• Appreciation for a system

• Understanding variation

• Theory of knowledge

• Psychology

Appreciation for a system

• Most organizational processes are cross-functional

• Parts of a system must work together

• Every system must have a purpose

• Management must optimize the system as a whole

Variation

• Many sources of uncontrollable variation exist in any

process

• Excessive variation results in product failures,

unhappy customers, and unnecessary costs

• Statistical methods can be used to identify and

quantify variation to help understand it and lead to

improvements

Theory of Knowledge

• Knowledge is not possible without theory

• Experience alone does not establish a theory, it

only describes

• Theory shows cause-and-effect relationships that

can be used for prediction

Psychology

• People are motivated intrinsically and extrinsically

• Fear is demotivating

• Managers should develop pride and joy in work

Criteria for Performance Excellence

• Leadership

• Strategic Planning

• Customer and Market Focus

• Information and Analysis

• Human Resource Focus

• Process Management

• Business Results

READING MATERIAL

Chapter 1: IntroductionArticle: What does product quality really mean