GE2022GE2022 Total Quality Management Total Quality Management

Lecture by:

S.P.SIVAGNANA SUBRAMANIANAssistant Professor-Dept. of ECE

Sri Venkateswara college of engineering,

Sriperumbudur.

UNIT - I

INTRODUCTION

UNIT I

INTRODUCTION

Introduction Need for quality Evolution of quality Definition of quality Dimensions of manufacturing and service quality Basic concepts of TQM Definition of TQM TQM Framework Contributions of Deming, Juran and Crosby Barriers to TQM.

What is Quality?

Degree of excellence, or general excellence (…has quality)

Attribute or faculty (…Has many good qualities)

Relative nature, character, or property

Definitions of Quality-

Quality is conformance to requirements or specifications (Crosby 1979)

Fitness for use (Juran 1988)

Degree to which a set of inherent characteristics fulfills requirements (As per ISO 9000:2000)

Definitions of Quality-Continued

• The American National Standards Institute (ANSI) and the American Society for Quality (ASQ) define quality as:

“The totality of features and characteristics of a product or service that bears on its ability to satisfy given needs.”

Quality• It is the degree to which a set of inherent characteristics

fulfills the requirements. – Degree means that quality can be used with adjectives

like poor, good, and excellent. – Inherent is defined as existing in something, especially as

a permanent characteristics. – Characteristics can be quantitative or qualitative – Requirement is a need or expectation that is stated;

generally implied by the organization, its customers, and other interested parties. Or obligatory.

Quality can be quantified as Q = P / E

where Q = Quality,

P = Performance and

E = Expectation - 7 -

Why Quality?

Reasons for quality becoming a cardinal priority for most organizations:

• Competition – Today’s market demand high quality products at low cost. Having `high quality’ reputation is not enough! Internal cost of maintaining the reputation should be less.

• Changing customer – The new customer is not only commanding priority based on volume but is more demanding about the “quality system.”

• Changing product mix – The shift from low volume, high price to high volume, low price have resulted in a need to reduce the internal cost of poor quality.

Why Quality?

• Product complexity – As systems have become more complex, the reliability requirements for suppliers of components have become more stringent.

• Higher levels of customer satisfaction – Higher customers expectations are getting spawned by increasing competition.

Relatively simpler approaches to quality viz. product inspection for quality control and incorporation of internal cost of poor quality into the selling price, might not work for today’s complex market environment.

Total Quality Management• TQM is an enhancement to the traditional way of doing business. It is a

proven technique to guarantee survival in world class competition. Only by changing the actions of management will the culture and actions of an entire organization be transformed.

– Total : Made up of the whole– Quality : Degree of excellence a product or service provides– Management : Act, art or manner of handling , controlling ,directing

etc.

So TQM is the art of managing the whole to achieve excellence. It is both a philosophy and a set of guiding principles that represent the foundation of continuously improving the organization. It is the application of quantitative methods and human resources to improve all the processes within the organization and exceed customer needs now and in the near future.

• TQM integrates fundamental management techniques, existing improvement efforts, and technical tools under a disciplined approach. - 10 -

Why TQM?Why TQM?

Ford Motor Company had operating losses of $3.3 billion between 1980 and 1982.

Xerox market share dropped from 93% in 1971 to 40% in 1981.

Attention to quality was seen as a way to combat the competition.

Why TQM?Why TQM?

Ford Motor Company had operating losses of $3.3 billion between 1980 and 1982.

Xerox market share dropped from 93% in 1971 to 40% in 1981.

Attention to quality was seen as a way to combat the competition.

• 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.

Quality?

TQM Evolution

• Custom-built Articles/Products having considerable control over Quality.

• Mass- Produced Products with less control over Quality

• Quality control Department in Factories.

• TQM-based Production facility – enhancing the Organization through Quality techniques to better achieve organization’s goals-eg. Productivity and Profitability with min.wastage.

• ISO Quality Management Systems.

QUALITY IS ….the QUALIFIER!

• Doing it right first time and all the time. This boosts Customer satisfaction immensely and increases efficiency of the Business operations.

• Clearing the bar (ie. Specification or Standard stipulated) Excellence that is better than a minimum standard.

What does TQM mean?What does TQM mean?

Total Quality Management means that the organization's culture is defined by and supports the constant attainment of customer satisfaction through an integrated system of tools, techniques, and training. This involves the continuous improvement of organizational processes, resulting in high quality products and services.

What’s the goal of TQM?What’s the goal of TQM?What’s the goal of TQM?What’s the goal of TQM?

“Do the right things right the first time, every time.”

Another way to put itAnother way to put itAnother way to put itAnother way to put it

• At it’s simplest, TQM is all managers leading and facilitating all contributors in everyone’s two main objectives:

(1) total client satisfaction through quality products and services; and

(2) continuous improvements to processes, systems, people, suppliers, processes, systems, people, suppliers, partners, products, and services.partners, products, and services.

Productivity and TQMProductivity and TQM

• Traditional view:– Quality cannot be improved without significant

losses in productivity.

• TQM view:– Improved quality leads to improved productivity.

Basic Tenets of TQMBasic Tenets of TQM• 1. The customer makes the ultimate

determination of quality.• 2. Top management must provide leadership

and support for all quality initiatives.• 3. Preventing variability is the key to

producing high quality.• 4. Quality goals are a moving target, thereby

requiring a commitment toward continuous improvement.

• 5. Improving quality requires the establishment of effective metrics. We must speak with data and facts not just opinions.

The three aspects of TQMThe three aspects of TQM

Counting

Customers

Culture

Counting

Customers

Culture

Tools, techniques, and training in their use for analyzing, understanding, and solving quality problems

Quality for the customer as a driving force and central concern.

Shared values and beliefs, expressed by leaders, that define and support quality.

Introduction

• What is a customer?Anyone who is impacted by the product or process delivered by

an organization. External customer: The end user as well as intermediate

processors. Other external customers may not be purchasers but may have some connection with the product.

Internal customer: Other divisions of the company that receive the processed product.

• What is a product?The output of the process carried out by the organization. It may

be goods (e.g. automobiles, missile), software (e.g. a computer code, a report) or service (e.g. banking, insurance)

Introduction to dimensions of quality

• How is customer satisfaction achieved?Two dimensions: Product features and Freedom from

deficiencies.• Product features – Refers to quality of design.Examples in manufacturing industry: Performance, Reliability,

Durability, Ease of use, Esthetics etc.Examples in service industry: Accuracy, Timeliness, Friendliness

and courtesy, Knowledge of server etc.• Freedom from deficiencies – Refers to quality of conformance.Higher conformance means fewer complaints and increased

customer satisfaction.

Dimensions of Quality-Continued

Transcendent definition: excellenceProduct-based definition: quantities of

product attributesUser-based definition: fitness for

intended useValue-based definition: quality vs. priceManufacturing-based definition:

conformance to specifications

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.

• Though quality is an abstract perception,it has a quantitative measure- Q= (P / E ) , where Q=quality, P= performance(as measured by the Mfgr.), and E = expectations( of the customer).

The 9 Dimensions of Quality

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

Customer• Aesthetics – of product• Reputation- of Mfgr./Dealer

Service Features

Performance

Cost

The Dimensions of QualityDIMENSIONDIMENSION MEANINGMEANING

Performance Primary product characteristics

Features Secondary characteristics

Conformance Meeting specifications or industry standards

Reliability Consistency of performance over time

Durability Useful life

Service Resolution of problems and complaints

Response Human-to-human interface

Aesthetics Sensory characteristics

Reputation Past performance and other intangibles

Value-based ApproachValue-based Approach• Manufacturing

Dimensions– Performance– Features– Reliability– Conformance– Durability– Serviceability– Aesthetics– Perceived quality

• Service Dimensions– Reliability– Responsiveness– Assurance– Empathy– Tangibles

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Total Quality Management is the application of quantitative methods and human resources to improve all the processes within an organization and exceed customer needs now and in the future.

TQM has 6 basic concepts: Leadership

Customer Satisfaction

Employee Involvement

Continuous Process Improvement

Supplier Partnership

Performance Measures

Total Quality ManagementTotal Quality Management

Basic concepts of TQM • A committed and involved management to provide long term top-to-

bottom organizational support : LEADERSHIP

• An unwavering focus on the customer, both internally and externally : CUSTOMER SATISFACTION

• Effective involvement and utilization of the entire work force : EMPLOYEE INVOLVEMENT

• Continuous improvement of the business and production process : CONTINUOUS PROCESS IMPROVEMENT

• Treating suppliers as partners : SUPPLIER PARTNERSHIP

• Establish performance measures for the processes : PERFORMANCE MEASURES

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Responsibility for Quality

CustomerCustomer

ServiceService

Packaging andPackaging andStorageStorage

InspectionInspectionand Testand Test

ProductionProductionProcessProcessDesignDesign

ProcurementProcurement

DesignDesignEngineeringEngineering

MarketingMarketing

QualityQualityProductProduct

OrOrServiceService

Responsibility for QualityMarketing Help to evaluate the level of product quality that

a customer wants, needs…

Design Engineering Translate the customer’s requirements into

operating characteristics, exact specifications, and appropriate tolerances

Procurement Responsible for procuring quality materials and

component

Responsibility for Quality

Process Design Develops processes and procedures that will

produce a quality product/service

Production Produce quality products and services

Inspection and Test Appraise the quality of purchased and

manufactured items and to report the results

Responsibility for QualityPackaging and Storage Preserve and protect the quality of the product

Inspection and Test Appraise the quality of purchased and manufactured

items and to report the results

Service Fully realizing the intended function of the product during

its expected life

TQM Framework • Gurus

– Principles and Practices

– Tools and techniques

– Product or Service realization

» Customer

- 35 -

Quality Gurus

• Deming: The father of the quality movement. Scientific approach to quality

• Juran: Quality by design

• Crosby: Quality is free

Gurus of TQM• Walter A. Shewart Ph.D. : Control Chart Theory, PDSA Cycle

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Gurus of TQM• W. Edwards Deming Ph.D.: 14 points of

theory of management to improve quality, productivity and competitive position

- 38 -

The Deming philosophy

• “A System of Profound Knowledge”

1. Appreciation for a system - A system is a set of functions or activities within an organization that work together to achieve organizational goals. Management’s job is to optimize the system. (not parts of system, but the whole!). System requires co-operation.

2. Psychology – The designers and implementers of decisions are people. Hence understanding their psychology is important.

The Deming philosophy

3. Understanding process variation – A production process contains many sources of variation. Reduction in variation improves quality. Two types of variations- common causes and special causes. Focus on the special causes. Common causes can be reduced only by change of technology.

4. Theory of knowledge – Management decisions should be driven by facts, data and justifiable theories. Don’t follow the managements fads!

The Deming Philosophy

• Create and publish the aims and purposes of the organization

• Learn the new philosophy• Understand the purpose of inspection• Stop awarding business based on price alone.• Improve constantly and forever the System• Institute training• Teach and institute leadership

The Deming Philosophy

• Drive out fear,create trust,and create a climate for innovation

• Optimize the efforts of teams,groups,and staff areas

• Eliminate exhortations for the work force• Eliminate numerical quotas for the work force• Eliminate management by objectives• Remove barriers to pride of workmanship• Encourage education and self-improvement for all• Take action to accomplish the transformation.

Gurus of TQM• Joseph M. Juran Ph.D. : Juran Trology

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The Juran philosophy

• Pursue quality on two levels:1. The mission of the firm as a whole is to achieve high

product quality.2. The mission of each individual department is to achieve

high production quality.

• Quality should be talked about in a language senior management understands: money (cost of poor quality).

• At operational level, focus should be on conformance to specifications through elimination of defects- use of statistical methods.

The Juran philosophy

Quality Trilogy –

1. Quality planning: Process of preparing to meet quality goals. Involves understanding customer needs and developing product features.

2. Quality control: Process of meeting quality goals during operations. Control parameters. Measuring the deviation and taking action.

3. Quality improvement: Process for breaking through to unprecedented levels of performance. Identify areas of improvement and get the right people to bring about the change.

The Crosby philosophy

Absolute’s of Management• Quality means conformance to requirements not elegance.• There is no such thing as quality problem.• There is no such thing as economics of quality: it is always

cheaper to do the job right the first time.• The only performance measurement is the cost of quality: the

cost of non-conformance.Basic Elements of Improvement • Determination (commitment by the top management)• Education (of the employees towards Zero Defects (ZD))• Implementation (of the organizational processes towards ZD)

Gurus of TQM• Armand V. Feigenbaum Ph.D. : Author of

Total Quality Control

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Gurus of TQM• Kaoru Ishikawa Ph.D. : Author of Quality is

Free and Quality Without Tears ; Fishbone / Ishikawa diagram for analysing cause and effect

- 48 -

Gurus of TQM• Genichi Taguchi Ph.D. : Taguchi philosophy

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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.

Conclusion

• Meeting Our Customer’s Requirements

• Doing Things Right the First Time; Freedom from Failure (Defects)

• Consistency (Reduction in Variation)

• Continuous Improvement

• Quality in Everything We Do

Total Quality Is…

A Quality Management System Is…

• A belief in the employee’s ability to solve problems

• A belief that people doing the work are best able to improve it

• A belief that everyone is responsible for quality

Elements for Success

• Management Support• Mission Statement• Proper Planning• Customer and Bottom Line Focus• Measurement• Empowerment• Teamwork/Effective Meetings• Continuous Process Improvement• Dedicated Resources

End of UNIT - 1