The Total Quality Approach to Quality Management

Chapter 1:Chapter 1:

The Total Quality Approach The Total Quality Approach to Quality Managementto Quality Management

Objectives:Objectives:

1.1.Learn what is Quality and Total Learn what is Quality and Total Quality Approach.Quality Approach.

2.2.Know the historic development of Know the historic development of Total QualityTotal Quality

3.3.Examine the Key Elements of Total Examine the Key Elements of Total QualityQuality

4.4.To know the Total Quality PioneersTo know the Total Quality Pioneers

““There are only three types of people: There are only three types of people: those who makes things happen, those who makes things happen, those who watch things happen, and those who watch things happen, and those who say, ‘What happened?’”those who say, ‘What happened?’”

-- Ann Landers Ann Landers

The Total Quality Approach to The Total Quality Approach to Quality ManagementQuality Management

Definition of Quality of different people and Definition of Quality of different people and different organization:different organization:

• Fred Smith (CEO of FedEx): - performance Fred Smith (CEO of FedEx): - performance to standard expected by the customerto standard expected by the customer

• GSA: - meeting the customer’s needs the GSA: - meeting the customer’s needs the first time every time. first time every time.

• Boeing: - providing our customers with Boeing: - providing our customers with products and services that consistently meet products and services that consistently meet their needs and expectations.their needs and expectations.

• U.S. Department of Defense (DOD): - doing U.S. Department of Defense (DOD): - doing the right thing right the first time.the right thing right the first time.

What is QUALITY?What is QUALITY?

Although no universally accepted definition of Although no universally accepted definition of quality exist, common elements can be quality exist, common elements can be extracted:extracted:

• Quality involves meeting or exceeding Quality involves meeting or exceeding

customer expectationscustomer expectations

• Quality applies to products, services, people, Quality applies to products, services, people,

processes and environmentprocesses and environment

• Quality is an ever-change stateQuality is an ever-change state

What is TOTAL QUALITY What is TOTAL QUALITY APPROACH?APPROACH?

Total quality is an approach to doing Total quality is an approach to doing

business that attempts to maximize the business that attempts to maximize the

competitiveness of an organization through competitiveness of an organization through

the continual improvement of the quality of the continual improvement of the quality of

its product, services, people, process, and its product, services, people, process, and

environment.environment.

Total Quality Approach: How it is achieved?Total Quality Approach: How it is achieved?

The total quality approach has the following The total quality approach has the following characteristics:characteristics:

1.1. Strategically basedStrategically based

2.2. Customer focused (internal/external)Customer focused (internal/external)

3.3. Obsession with qualityObsession with quality

4.4. Scientific approach to decision making and problem Scientific approach to decision making and problem

solvingsolving

5.5. Long-term commitmentLong-term commitment

6.6. Team WorkTeam Work

7.7. Continual process involvementContinual process involvement

8.8. Education and trainingEducation and training

9.9. Freedom through controlFreedom through control

10.10.Unity of purposeUnity of purpose

11.11. Employee empowermentEmployee empowerment

Historic Development of Total Historic Development of Total QualityQuality

Total Quality PioneersTotal Quality PioneersPeople who contributed in meaningful ways to People who contributed in meaningful ways to the development of the various concepts of the development of the various concepts of

total qualitytotal quality

W. Edward DemingW. Edward Deming

Joseph M. JuranJoseph M. Juran

Philip B. CrosbyPhilip B. Crosby

Total Quality Total Quality PioneersPioneers

1. W. Edwards DemingW. Edwards Deming

William Edwards Deming (October 14, 1900 - December 20, 1993) was an American statistician, college professor, author, lecturer, and consultant. Deming is widely credited with improving production in the United States during World War II, although he is perhaps best known for his work in Japan. There, from 1950 onward he taught top management how to improve design (and thus service), product quality, testing and sales (the latter through global markets).Deming made a significant contribution to Japan's becoming renowned for producing innovative high-quality products. Deming is regarded as having had more impact upon Japanese manufacturing and business than any other individual not of Japanese heritage

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Deming Major Contribution to QualityDeming Major Contribution to Quality

1. The Deming Cycle1. The Deming Cycle

The plan–do–check–act cycle is a four-

step model for carrying out change. Just

as a circle has no end, the PDCA cycle

should be repeated again and again for

continuous improvement.

http://www.roi-ally.com/images/pdca.png

1. The Deming Cycle

When to Use the PDCA

• As a model for continuous improvement. • When starting a new improvement project. • When developing a new or improved design of a process, product or service. • When defining a repetitive work process. • When planning data collection and analysis in order to verify and prioritize problems or root causes. • When implementing any change.

1. The Deming Cycle

Procedure

Plan. Recognize an opportunity and plan a change.

Do. Test the change. Carry out a small-scale study.

Check. Review the test, analyze the results and identify what you’ve learned.

Act. Take action based on what you learned in the

study step: If the change did not work, go through the cycle again with a different plan. If you were successful, incorporate what you learned from the test into wider changes. Use what you learned to plan new improvements, beginning the cycle again.


Deming offered fourteen key principles for management for transforming business

effectiveness. In summary:

1. Create constancy of purpose for the improvement of product and service, with

the aim to become competitive, stay in business, and provide jobs.

2. Adopt a new philosophy of cooperation (win-win) in which everybody wins and

put it into practice by teaching it to employees, customers and suppliers.

3. Cease dependence on mass inspection to achieve quality. Instead, improve the

process and build quality into the product in the first place.

4. End the practice of awarding business on the basis of price tag alone. Instead,

minimize total cost in the long run. Move toward a single supplier for any one

item, based on a long-term relationship of loyalty and trust.

5. Improve constantly, and forever, the system of production, service, planning, of

any activity. This will improve quality and productivity and thus constantly

decrease costs.

6. Institute training for skills.

7. Adopt and institute leadership for the management of people, recognizing their

different abilities, capabilities, and aspiration. The aim of leadership should be

to help people, machines, and gadgets do a better job. Leadership of

management is in need of overhaul, as well as leadership of production workers.

2. Deming’s 14 Points2. Deming’s 14 Points

http://en.wikipedia.org/wiki/Management


8. Drive out fear and build trust so that everyone can work more

effectively.

9. Break down barriers between departments. Abolish competition and

build a win-win system of cooperation within the organization. People

in research, design, sales, and production must work as a team to

foresee problems of production and use that might be encountered

with the product or service.

10.Eliminate slogans, exhortations, and targets asking for zero defects or

new levels of productivity. Such exhortations only create adversarial

relationships, as the bulk of the causes of low quality and low

productivity belong to the system and thus lie beyond the power of

the work force.

11.Eliminate numerical goals, numerical quotas and management by

objectives. Substitute leadership.

12.Remove barriers that rob people of joy in their work. This will mean

abolishing the annual rating or merit system that ranks people and

creates competition and conflict.

13.Institute a vigorous program of education and self-improvement.

14.Put everybody in the company to work to accomplish the

transformation. The transformation is everybody's job.


1. Lack of constancy of purpose.

2. Emphasis on short-term profits.

3. Evaluation by performance, merit rating, or annual review of

performance.

4. Mobility of management.

5. Running a company on visible figures alone.

6. Excessive medical costs.

7. Excessive costs of warranty, fueled by lawyers who work for

contingency fees.

3. Seven Deadly Diseases3. Seven Deadly Diseases

Deming philosophy synopsis

The philosophy of W. Edwards Deming has been summarized as follows:"Dr. W. Edwards Deming taught that by adopting appropriate principles of management, organizations can increase quality and simultaneously reduce costs (by reducing waste, rework, staff attrition and litigation while increasing customer loyalty). The key is to practice continual improvement and think of manufacturing as a system, not as bits and pieces.“

In the 1970s, Dr. Deming's philosophy was summarized by some of his Japanese proponents with the following 'a'-versus-'b' comparison:

(a) When people and organizations focus primarily on quality, quality defined by the following ratio:

, then quality tends to increase and costs fall over time.

(b) However, when people and organizations focus primarily on cost, then costs tend to rise and quality declines over time.


2. Joseph M. JuranJoseph M. Juran

Joseph Moses Juran (b. December 24, 1904) is an American industrial engineer and philanthropist.Juran is known as a business and industrial quality "guru," while making significant contributions to management theory, human resource management and consulting as well. He wrote several books, and is known worldwide as one of the most important 20th century thinkers in quality management.

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http://en.wikipedia.org/wiki/Philanthropist

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http://en.wikipedia.org/wiki/Human_resource_management


Juran’s Major Contributions to QualityJuran’s Major Contributions to Quality

1. Juran Basic Steps to Progress1. Juran Basic Steps to Progress

1. Achieve structured improvements on a continual basis

combined with dedication and a sense of urgency

2. Establish an extensive training program

3. Establish commitment and leadership on the part of higher

management


Juran’s Major Contributions to QualityJuran’s Major Contributions to Quality

2. Juran Ten Steps to Quality Improvement2. Juran Ten Steps to Quality Improvement

1. Build awareness of the need and opportunity to

improve

2. Set goals for that improvement

3. Create plans to reach the goals

4. Provide training

5. Conduct projects to solve problems

6. Report on progress

7. Give recognition for success

8. Communicate results

9. Keep score

10. Maintain momentum


Juran’s Major Contribution to QualityJuran’s Major Contribution to Quality

3. The Pareto Principle3. The Pareto Principle

According to this principle, organization should

concentrate their energy on eliminating the vital

few sources that cause the majority of problems.

This principle is sometimes called the 80/20 rule. 80%

of the trouble comes from 20% of the problems.

Named from the economist Vilfredo pareto.



4. The Juran Trilogy4. The Juran Trilogy

Quality Planning involves developing the products,

systems, and processes needed to meet or exceed

customer expectations.

1. Determine who the customers are

2. Identify customer needs

3. Develop products with features that respond to

customer needs.

4. Develop systems and processes that allow the

organization to produce these features.

5. Deploy the plans to operational levels

Quality Planning involves developing the products,

systems, and processes needed to meet or exceed

customer expectations.

1. Determine who the customers are

2. Identify customer needs

3. Develop products with features that respond to

customer needs.

4. Develop systems and processes that allow the

organization to produce these features.

5. Deploy the plans to operational levels




Quality Control . The control of quality involves the

following processes:

1. Assess actual quality performance

2. Compare performance with goals

3. Act on differences between performance and goals.

Quality Control . The control of quality involves the

following processes:

1. Assess actual quality performance

2. Compare performance with goals

3. Act on differences between performance and goals.




Quality Improvement. The improvement of quality

should be ongoing and continual.

1. Develop the infrastructure necessary to make annual

quality improvements.

2. Identify specific areas in need of improvement, and

implement improvement projects.

3. Establish a project team with responsibility for

completing each improvement project

4. Provide teams with what they need to be able to

diagnose problems to determine root causes, develop

solutions, and establish controls that will maintain gains

made.

Quality Improvement. The improvement of quality

should be ongoing and continual.

1. Develop the infrastructure necessary to make annual

quality improvements.

2. Identify specific areas in need of improvement, and

implement improvement projects.

3. Establish a project team with responsibility for

completing each improvement project

4. Provide teams with what they need to be able to

diagnose problems to determine root causes, develop

solutions, and establish controls that will maintain gains

made.

Total Quality Total Quality PioneersPioneers3. Philip B. Cosby Philip B. Cosby (June 18, 1926–August 18, 2001)

Philip b. Cosby is the youngster among the big three quality experts.

His corporate background includes 14 years as director of ITT. He left ITT in 1979 to form Philip Cosby Associates, an international consulting firm on quality improvement, which he ran until 1992.

Crosby, who defines quality simply as conformance, is best known for his advocacy of ZERO Defects management and prevention as opposed to statistically acceptable levels of quality.


Crosby's response to the quality crisis was the principle of "doing it right the first time" (DRIFT).

He would also include four major principles. First, quality is "conformance to requirements, second,

management system is prevention, third, the performance standard is zero defects , and the measurement system is the cost of quality.“

Crosby's prescription for quality improvement was a 14 step program. His belief was that a company that

established a quality program will see savings that pays off the quality program and even more than

expected. ("quality is free").


Crosby's response to the quality crisis was the principle of "doing it right the first time" (DRIFT).

He would also include four major principles. First, quality is "conformance to requirements, second,

management system is prevention, third, the performance standard is zero defects , and the measurement system is the cost of quality.“

Crosby's prescription for quality improvement was a 14 step program. His belief was that a company that

established a quality program will see savings that pays off the quality program and even more than

expected. ("quality is free").


Cosby’s Major Contribution to QualityCosby’s Major Contribution to Quality

1. Crosby’s Quality Vaccine:1. Crosby’s Quality Vaccine:

1. Determination

2. Education

3. Implementation

1. Determination

2. Education

3. Implementation



2. Crosby’s 14 Steps to Quality Improvement:2. Crosby’s 14 Steps to Quality Improvement:

1. Make it clear that management is committed to quality for

the long term

2. Form cross-departmental quality teams

3. Identify where current and potential problem exist

4. Assess the cost of quality and explain how it is used as a

management tool

5. Increase the quality awareness and personal commitment of

all employees

6. Take immediate action to correct problems identified

7. Establish a zero defect program

1. Make it clear that management is committed to quality for

the long term

2. Form cross-departmental quality teams

3. Identify where current and potential problem exist

4. Assess the cost of quality and explain how it is used as a

management tool

5. Increase the quality awareness and personal commitment of

all employees

6. Take immediate action to correct problems identified

7. Establish a zero defect program



2. Crosby’s 14 Steps to Quality Improvement:2. Crosby’s 14 Steps to Quality Improvement:

8. Train supervisors to carry out their responsibilities in the

quality program

9. Hold a Zero Defects Day to ensure all employees are aware

there is a new direction

10.Encourage individuals and teams to establish both personal

and team improvement goals

11.Encourage employees to tell management about obstacles

they face in trying to meet quality goals

12.Recognize employees who participate

13. Implement quality councils to promote continual

communication

14.Repeat everything to illustrate that quality improvement is a

never-ending process.

8. Train supervisors to carry out their responsibilities in the

quality program

9. Hold a Zero Defects Day to ensure all employees are aware

there is a new direction

10.Encourage individuals and teams to establish both personal

and team improvement goals

11.Encourage employees to tell management about obstacles

they face in trying to meet quality goals

12.Recognize employees who participate

13. Implement quality councils to promote continual

communication

14.Repeat everything to illustrate that quality improvement is a

never-ending process.

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The Total Quality Approach to Quality Management