Total Quality Management

K.RAMESHASSISTANT PROFESSORMechanical Engineering

SNS College of Engineering

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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.

Introduction• Total – Made up of the whole(or) Complete.

• Quality – Degree of Excellence a product or service provides to the customer in present and future.

• Management – Act , art, or manner of handling , controlling, directing, etc.

TQM is the art of managing the whole to achieve excellence.

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Definition

Total Quality Management (TQM) is a management strategy aimed at creating awareness of quality in all organizational processes.

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"TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society."

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ExplanationTQM requires that the company maintain this quality standard in all aspects of its business.

This requires ensuring that things are done right the first time and that defects and waste are eliminated from operations.

Quality

Quality – When a product or service meets or exceeds expectation considering the intended use and the selling price.

• What is Quality ?– Grade of service / product– Reliability– Safety– Consistency– Consumer's perception

Quality = Performance / Expectation

Definition by ISO 9000:2000 It if defined as the degree to which a set of inherent characteristics fulfils requirement.

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Quality perspectives

Everyone defines Quality based on their own perspective of it. Typical responses about the definition of quality would include:

1. Perfection2. Consistency3. Eliminating waste4. Speed of delivery5. Compliance with policies and procedures6. Doing it right the first time7. Delighting or pleasing customers8. Total customer satisfaction and service

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Need for quality

• Increase productivity

• Expand market share

• Raise customer loyalty

• Enhance competitiveness of the firm

• At a minimum, serve as a price of entry

Contd.,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.

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Evolution of quality Era

111900 1920 1940 1960 1980 1990 2000

Craftsman

Foreman

Inspection

SQC

TQC

TQM

TQC &CWQC

Evolution

Years

Evolution of quality

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1975 1980 1985 1990 1995 2000

Operation Customers Innovations

Quality ofWork life

QualityCircle

Productivity

EmployeeInvolvement

Quality

EmployeesEmpowerment

Total Quality

Self Directed Teams

TQC/TQM

Self Directed/Managed

Teams

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Performance: Primary product characteristics, such as the brightness of the pictureFeatures: Secondary characteristics, added features, such as remote controlConformance : Meeting specifications or industry standards, workmanshipReliability: Consistency of performance over time, average time of the unit to failDurability: Useful life, includes repairService: Resolution of problems and complaints, ease of repairResponse: Human – to – human interface, such as the courtesy of the dealerAesthetics: Sensory characteristics, such as exterior finishReputation: Past performance and other intangibles, such as being ranked first-------------------------------------------------------------------------------------------------

DIMENSIONS OF QUALITY

Concepts

• 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. (This is related to free from defects.)

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Basic Concepts of TQM• Customer Focus

• Continuous Process Improvement - Kaizen

• Employee Empowerment – Everyone is responsible for quality

• Quality is free - focus on defect prevention rather than defect detection for it is always cheaper to do it right the first time

• Benchmarking – Legally stealing other people’s ideas

• Customer-Supplier Partnerships

• Management by fact..by numbers..by data – Balanced scoreboard (financial, customer, process, learning)

Strength of USA vs. Japan

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Concept

Time

Strength of USA Mfg Strength of Japanese Mfg

KAIZEN

Good Innovative Ideas Good Implementation

Good Ideas, Good Implementation are the goals of everyone in the automotive industry

Historical Philosophies of Quality

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The Quality Gurus• Quality Gurus

– Individuals who have been identified as making a significant contribution to improving the quality of goods and services.

• Walter A. Shewhart

• W. Edwards Deming

• Joseph M. Juran• Armand Feigenbaum

• Philip Crosby• Genichi Taguchi

• Kaoru Ishikawa

Quality Gurus (cont.)• Walter Shewart

– In 1920s, developed control charts– Introduced the term “quality assurance”

• W. Edwards Deming – Developed courses during World War II to teach

statistical quality-control techniques to engineers and executives of companies that were military suppliers

– After the war, began teaching statistical quality control to Japanese companies

• Joseph M. Juran– Followed Deming to Japan in 1954– Focused on strategic quality planning

Quality Gurus (cont.) Armand V. Feigenbaum

In 1951, introduced concepts of total quality control and continuous quality improvement

Philip Crosby In 1979, emphasized that costs of poor quality far outweigh

the cost of preventing poor quality In 1984, defined absolutes of quality management—

conformance to requirements, prevention, and “zero defects”

Kaoru Ishikawa Promoted use of quality circles Developed “fishbone” diagram Emphasized importance of internal customer

Three of the Quality Gurus Compared

Source: Modified from John S. Oakland, Total Quality Management (London: Heinemann Professional Publishing Ltd., 1989), pp. 291–92.

Three of the Quality Gurus Compared (cont’d)

Source: Modified from John S. Oakland, Total Quality Management (London: Heinemann Professional Publishing Ltd., 1989), pp. 291–92.

Three of the Quality Gurus Compared (cont’d)

Source: Modified from John S. Oakland, Total Quality Management (London: Heinemann Professional Publishing Ltd., 1989), pp. 291–92.

W. Edwards Deming’s contribution

–Advocated Statistical Process Control (SPC)• Methods which signal shifts in a process that will likely lead to products

and/or services not meeting customer requirements.• Emphasized an overall organizational approach to managing quality.• Demonstrated that quality products are less costly than poor quality

products.• Identified 14 points critical for improving quality.

–The Deming Prize• Highest award for industrial excellence in Japan.

The Deming Prize

• Deming Prize

– Initiated by Japan in 1951 to recognize the importance of high quality products.

–Name after W. Edwards Deming

–Categories of the Deming Prize:

• The Deming Prize for Individuals

• The Deming Application Prize

• The Quality Control Award for Operations/ Business Units

Deming’s 14-Point Program for Improving Quality

1. Create and publish to all employees a statement of the aims and purposes of the company. The management must demonstrate their commitment to this statement.

2. Learn and adopt the new philosophy.

3. Understand the purpose of inspection – to reduce the cost and improve the processes.

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

5. Improve constantly and forever the system of production and service and training.

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Contd.,6. Institute training

7. Teach and institute leadership.

8. Drive out fear. Create an environment of innovation.

9. Optimize the team efforts towards the aims and purposes of the company.

10. Eliminate slogans, exhortations, and targets for the workforce.

11. Eliminate numerical quotas for production.

12. Remove the barriers that rob pride of workmanship.

13. Encourage learning and self-improvement.

14. Take action to accomplish the transformation.27

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.

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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!

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Joseph M. Juran’s contribution–Emphasized the importance of producing quality products through an

approach focused on quality planning, control, and improvement.–Defined product quality as “fitness for use” as viewed by the customer

in:• Quality of design • Quality of conformance• Availability • Safety • Field use

–Categorized the cost of quality as:• Cost of prevention• Cost of detection/appraisal• Cost of failure

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.

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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.

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Philip Crosby’s contribution

• Philip Crosby–Preached that “quality is free.”–Believed that an organization can reduce overall costs by

improving the overall quality of its processes.

The Crosby philosophyAbsolute’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)

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Cost of Quality

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The Cost of Quality• Cost of Quality

–Framework for identifying quality components that are related to producing both high quality products and low quality components, with the goal of minimizing the total cost of quality.

–Costs of poor quality:

• Detection/appraisal costs

• Internal failure costs

• External failure costs

“Costs” of Quality

Category Definition Example

Prevention Costs associated with preventing defects.

Training, early reviews, quality planning, tools, process improvement initiatives.

Appraisal

Costs associated with analyzing and testing the product to ensure it conforms to specifications.

Inspections, testing, audits, quality control.

Internal Failure

Costs associated with fixing defects found prior to release.

Repair, retesting, updating documentation.

External Failure

Costs associated with fixing defects found after release.

Technical support, defect reporting and tracking, field updates, loss of future sales.

“Costs” of Quality

Quality Cost Management shows how increased Prevention Costs reduce the Total Quality Costs.

The equation “Cost of Quality“ (COQ) allows to quantify the impact of POOR quality. It is used as a monitoring tool to track costs for inspection, internal errors, external errors, and prevention. As the prevention efforts are increased, the costs for inspection, internal failures and external failures drop.

“Costs” of Quality

E: External Failure Costs

I: Internal Failure Costs

A: Appraisal Costs

P: Prevention Costs

S: Sales

Elements of TQM & Implementation

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Elements of TQM• Leadership

–Top management vision, planning and support • Employee involvement

–All employees assume responsibility for inspecting the quality of their work.

• Product/Process Excellence– Involves product design quality and monitoring the process for

continuous improvement.• Poka-yokes are devices that prevent defects from being produced.

Elements of TQM (cont’d)• Continuous Improvement

–A concept that recognizes that quality improvement is a journey with no end and that there is a need for continually looking for new approaches for improving quality.

• Customer Focus (on “Fitness for Use”)–Design quality

• Specific characteristics of a product that determine its value in the marketplace.

–Conformance quality• The degree to which a product meets its design specifications.

Implementing TQM

• Successful Implementation of TQM–Requires total integration of TQM into day-to-day

operations.• Causes of TQM Implementation Failures

–Lack of focus on strategic planning and core competencies.–Obsolete, outdated organizational cultures.

Communication

For TQM to be successful, the organization must concentrate on the following key elements:

Ethics

Integrity

Trust

Training

Teamwork

Leadership

Recognition

Implementation of TQM

Roof: Recognition (Motivation)

The key elements of TQM can be divided into four groups according to their function:

Foundation: Integrity, Ethics, Trust

Building Bricks: Leadership, Teamwork,Training

Binding Mortar: Communication

Implementation of TQM

European Quality Award (EQA)

• European Foundation for Quality Management (EFQM)

–Stimulate and assist European organizations in quality improvement activities.

–Support managers in the adoption of TQM.

• EFQM Excellence Model

–A non-prescriptive frame work based on nine criteria that recognizes that there are many approaches to achieving sustainable excellence.

Recent Winners of the European Quality Award