Quality Management

Presented by

ARLENE N. BARATANG, M.A.

The Evolution of Quality

Early days of manufacturing : inspection and decision making – accept or reject

Separate inspection department with a “chief inspector”

Evolution of quality control department with “quality control manager”

1920’s the birth of statistical quality control 1924 Modern control chart by Shewhart; later

developed by Deming

The Evolution . . .

Shewhart, Deming, Dodge and Romig introduced the theory of statistical process control (SPC) and it was used until late 1940s.

1940s – Japan’s industrial system was virtually destroyed and had a reputation for cheap imitation products and illiterate workforce.

Japan solved these problems with the help of Juran, Deming and Feigenbaum.

The Evolution . . .

1950s Quality management practices developed rapidly in Japan and became their management philosophy.

1960s-1970s Japan’s imports into the USA and Europe increased significantly due to its cheaper, higher quality products, compared to the Western counterparts.

The Evolution . . .

1969 First International conference on quality control, sponsored by Japan, America and Europe.

On Feigenbaum paper, the term “total quality” was used for the first time. This constitutes wider issues such as planning, organization, and management responsibility.

The Evolution . . .

Ishikawa introduced new meaning for “total quality control” which means “company wide quality control”. He described how all employees, from top management to the workers must participate in quality control.

Late 1970s Company wide quality management became common in Japanese companies.

The Evolution . . .

Quality revolution in the West was slow and did not begin until early 1980s.

Total quality management (TQM) became the centre in most cases.

1979 - The British Standard (BS) 5750 for quality systems was published.

The Evolution . . .

1983 - The National Quality Campaign was launched using BS5750 main theme. The aim was to popularize to the industry the importance of quality for competitiveness and survival in the world market. Since then the International Standardisation Organization (ISO) 9000 became the internationally recognised standard for quality management systems.

The Evolution. . .

The ISO comprises standards that specify requirements for the documentation, implementation and maintenance of a quality system.

21st Century, TQM has developed in many countries into holistic frameworks, aimed to achieve excellent performance particularly in customer and business results.

Total Quality Management (TQM)

What TQM means?

TQM is an approach to improving the competitiveness, effectiveness and flexibility of an organization for the benefit of all stakeholders.

It is a way of planning, organizing and undertaking each activity and of removing all the wasted effort and energy that is routinely spent in organizations.

It ensures the leaders to adopt a strategic overview of quality and focus on prevention not detection of problems.

The core of TQM is the customer-supplier interfaces, both externally and internally, and at each interface lie a number of processes. This core must be surrounded by commitment to quality, communication of the quality message, and recognition of the need to change the culture of the organisation to create totalquality. These are the foundations of TQM, and they are supported by the key management functions of people, processes and systems in the organisation.

What is quality?

Quality is “Delighting the customer by fully meeting their needs and expectations”. These may include performance, appearance, availability, delivery, reliability, maintainability, cost effectiveness and price.

Quality starts with market research – to establish the true requirements for the product or service and the true needs of the customers.

Every person in the “quality chain” must be trained to ask the ff. questions:

Who are my customers? What are their true needs and expectations? How do, or can, I find out what these are? How I can measure my ability to meet their needs and

expectations? Do I have their capability to meet their needs and

expectations? (if not, hat must I do to improve this capability?)

Do I continually meet their needs and expectations? How do I monitor changes in their needs and expectations?

Customers (internal and external)

Suppliers (internal and external) Who are my internal suppliers? What are my true needs and expectations? How do I communicate my needs and

expectations to my suppliers? Do my suppliers have the capability to measure

and meet these needs and expectations? How do I inform them of changes in my needs

and expectations?

Being fully aware of customers’ needs and expectations, each person must respect the needs and expectations of their suppliers. The ideal situation is an open partnership style relationship, where both parties share and benefit.

Poor practices Leaders not giving clear direction Not understanding, or ignoring competitive

positioning Each department working only for itself Trying to control people through systems Confusing quality with grade Accepting that a level of defects or errors is

inevitable Firefighting, reactive behavior The “It’s not my problem” attitude

The Essential Components of TQM

Commitment Leadership

The Essential Components of TQM

All senior managers must demonstrate their seriousness and commitment to quality, and middle managers must demonstrate their commitment; ensure they communicate the principles, strategies and benefits to the people for whom they have responsibility. Only then the right attitudes spread throughout the organization.

The Essential . . .

Sound quality policy, supported by plans and facilities to implement it.

Leaders must take responsibility for preparing, reviewing and monitoring the policy and lead in regular improvements of it and ensure it is understood at all levels of the organization.

The Essential . . .

Effective leaders starts with the development of a mission statement followed by a strategy which is translated into action plans down through the organization.

Five Requirements for Effective Leadership

1. Developing and publishing corporate beliefs, values and objectives, often as a mission statement.

2. Personal involvement and acting as role models for a culture of total quality.

3. Developing clear and effective strategies and supporting plans for achieving the mission and objectives

Five Requirements . . .

4. Reviewing and improving the management system

5. Communicating, motivating and supporting people and encouraging effective employee participation.

The Building Blocks of TQM

Processes the transformation of a set of inputs, which can include action, methods and operations, into the desired outputs, which satisfy the customers’ needs and expectations.

People who actually do the job or carry out the process, each of which has one or several suppliers and customers. An efficient and effective way to tackle process or quality improvement is through teamwork.

The Building Blocks . . .

Management systems involves proper adoption and documentation of appropriate management systems

Performance Measurement Once the strategic direction for the organization’s quality journey has been set, it needs Performance Measures to monitor and control the journey, and to ensure the desired level of performance is being achieved and sustained.

SOURCE: Using BPMN to Model a BPEL Processby Stephen A. White, IBM Corp., United States

Business Process Modeling Notation (BPMN)

The Quality Gurus

What is a guru?

By definition, a guru is a good person, a wise person and a teacher. A quality guru should be all of these, and must have a concept and approach to quality within business that has made a major and lasting impact.

W Edwards Deming

PDCA Cycle

The cycle is about learning and ongoing improvement, learning what works and what does not in a systematic way; and the cycle repeats; after one cycle is complete, another is started.

Dr Joseph M Juran

The Quality Trilogy

The process achieves control at one level of quality performance, then plans are made to improve the performance on a project by project basis, using tools and techniques such as Pareto analysis.

Juran . . .

Juran believed quality is associated with customer satisfaction and dissatisfaction with the product, and emphasised the necessity for ongoing quality improvement through a succession of small improvement projects carried out throughout the organisation.

Armand V Feigenbaum

Feigenbaum is the originator of “total quality control”. He defined total quality control as:

“An effective system for integrating quality development, quality maintenance and qualityimprovement efforts of the various groups within an organisation, so as to enable production andservice at the most economical levels that allow full customer satisfaction”.

Feigenbaum . . .3 Steps to Quality

Quality leadership Modern quality technology Organisational commitment

Dr Kaoru Ishikawa

Seven Basic Tools of Quality

• which are the big problems?• what causes the problems?• how is the data made up?• how often it occurs or is done?• what do overall variations look

like? what are the relationships

between factors?• which variations to control and

how?

• Pareto analysis • Cause and effect diagrams• Stratification • Check sheets • Histograms

• Scatter charts

• Process control charts

Ishikawa. . .

Fishbone or Cause and Effect Diagram

The diagram systematically represents and analyses the real causes behind a problem or effect. It organises the major and minor contributing causes leading to one effect (or problem), defines the problem, identifies possible and probable causes by narrowing down the possible ones.

Dr Genichi Taguchi

“Taguchi methodology” is fundamentally a prototyping method that enables the designer to identify the optimal settings to produce a robust product that can survive manufacturing time after time, piece afterpiece, and provide what the customer wants.

Shigeo Shingo

Just-in-Time manufacturing Single minute exchange of die

(SMED) system Poka-Yoke (mistake proofing)

system

Philip B Crosby

“Quality is Free” “Zero Defects” Four absolutes of quality:

Quality is conformance to requirements The system of quality is prevention The performance standard is zero defect The measurement of quality is the price of

non-conformance

Tom Peters

Discarding the word “Management” for “Leadership”

“Managing by walking about” (MBWA), enabling the leader to keep in touch with customers, innovation and people, the three main areas in the pursuit of excellence.

Tom Peters . . .

Tom Peters . . .

He believes that, as the effective leader walks, at least 3 major activities are happening:

Listening Suggests caring

Teaching Values are transmitted

Facilitating Able to give on-the-spot help

McKinsey 7-S Model

Placing Shared Values in the middle of the model emphasizes that these values are central to the development of all the other critical elements.

Thank you for listening.