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The Philosophy ofTotal QualityManagement
Prof.Vinesh Jain
IBS, Dehradun
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The Philosophy of TQM
W. Edwards Deming Father of TQM
What we need to do is learn to work
in the system by which I mean thatevery body, every team, everyplatform, every division, every
component is there not for individualcompetitive profit or recognition butfor contribution to the system as awhole on a win-win basis
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The Philosophy of TQM
Customer Quality MeasuresFeature Based Measures (have or havenot)
Determined by design
Eg.diamond (shape : Marquise or round)
Performance Measures (range of values)
Conformance to design or ideal value
Eg. diamond (4Cs Carat, Clarity, Color, Cut)
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The Philosophy of TQM
Different Views of QualityCustomers View (more subjective view)
Producers View (more objective view)
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The Philosophy of TQM
Different Views of Quality (contd.)Customers View (more subjective view)
Quality of the design (look, feel and function)
Consider both feature and performancemeasures to assess value
Value = Quality / Price (Determined by individualcustomer)
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The Philosophy of TQM
Different Views of Quality (contd.)Producers View (more objective view)
Conformance to requirements (term coined byPhilip Crosby)
e.g # of defects per million products is a measure ofconformance.
Cost of quality (prevention, appraisal, scrapand warranty costs)
Prevention costs: training, writing quality procedures
Appraisal costs: inspecting and measuring productcharacteristics
Scrap and rework costs: internal costs of defective
productsWarrant costs: external costs for roduct failures in
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The Philosophy of TQM
History of Quality ParadigmsCustomer craft quality paradigm
Mass production and inspection qualityparadigm
TQM or Customer-Driven Quality paradigm
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The Philosophy of TQM
History of Quality Paradigms (contd.)Customer craft quality paradigm
Design and build each product for aparticular customer
Producer knows the customer directly
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The Philosophy of TQM
History of Quality Paradigms (contd.)Mass production and inspection qualityparadigm
Focus on designing and building products for
mass consumption
Push products on the customer (limit customerchoices)
Quality is maintained by inspecting and detecting
bad productsMajor innovation to this paradigm : statisticalprocess control
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The Philosophy of TQM
History of Quality Paradigms (contd.)TQM or Customer-Driven Quality paradigm
Potential customers determine what to designand build
Higher quality obtained by focusing onpreventing problems and continuouslyreducing variability in all organizationalprocesses.
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The Philosophy of TQM
The Quality Hierarchy (Evolution)Prevention
Stop problems atsource;
greater design
emphasis(PROACTIVE)
DetectionFinding and Fixing
Mistakes(REACTIVE)
4. Total QualityManagement
3. QualityAssurance (QA)
2. Quality
Control(QC)
1. Inspection
Incorporates QC/QA activities intoa company wide system aimed atsatisfying the customer. (Involvesall organizational functions)
Planned and systematic actions toinsure that products or servicesconform to company requirements(eg reliability analysis)
Operational techniques to makeinspection more efficient and to
reduce the costs of quality .(eg. SPC)
Inspect products with theconformance of Quality Standards.
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The Philosophy of TQM
Definition of TQMTQM is a management philosophy which seeksto integrate all organizational functions(marketing, finance, design, engineering,
production, customer services etc.) to focuson meeting customer needs andorganizational objectives.
It views organizations as a collection of
processes. It maintains that organizationsmust strive to continuously improve theseprocesses by incorporating the knowledge andexperiences of workers.
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The Philosophy of TQM
The goal of TQM is to deliver thehighest value for the customer at thelowest cost, while achievingsustained profit and economicstability for the company.
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The Philosophy of TQM
Objective of TQM
Do the right
things, rightthe first time,every time.
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The Philosophy of TQM
Some Basic Tenets of TQMThe customerdetermines quality.
Improving quality requires the establishmentof effective quality metrics. We must speak
with data not just opinions.
People working within systems createquality.
Quality is a moving target. It requires acommitment toward sustained continuousimprovement.
Prevention not detection is the key toproducing high quality. We must design qualityinto products and reduce variability.
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The Philosophy of TQM
Tools and Techniques of TQMKaizen
Quality Circles
Quality Improvement TeamsTotal Productivity Management
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The Philosophy of TQM
Tools and Techniques of TQMKaizen
Continuous Improvement in process, skill sets,systems, and operations.
Quality Circles
Group oriented suggestion system for makingimprovements. QC is a small group thatvoluntarily performs quality control activitiesin the workplace.
Quality Improvement Teams
Improvement in Inter-Departmental
coordination.
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The Philosophy of TQM
Principles of TQMSystematic Improvement
Customer Focused (to increase customer loyalty)
Continuous Improvement (for maintaining competitive
position in the market)
Problem Prevention
Universal responsibility
Designing Quality for products
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The Elements of TQM
Recognition
Training
Team Work
LeadershipTrust, Integrity &
EthicsCommunication
CommunicationCommunication
COM
MUNICATION
COM
MUNICATION
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The Philosophy of TQM
Division of Elements of TQMFoundation
Ethics
IntegrityTrust
Building Bricks
Training
Teamwork
Leadership
Binding Mortar
Communication
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The Philosophy of TQM
EthicsDiscipline concerned with good and bad in anysituation.
Integrity
Implies honesty, morals, values, fairness andadherence to the facts and sincerity.
Trust
By-product of integrity and ethical conduct.
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The Philosophy of TQM
TrainingEmployees require training on: interpersonalskills, the ability to function within teams,problem solving, decision making, job
management performance analysis andimprovement, business economics andtechnical skills.
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The Philosophy of TQM
TeamworkQuality Improvement Teams
Problem Solving Teams
Natural Work Teams
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The Philosophy of TQM
CommunicationCommunication means a commonunderstanding of ideas between the senderand the receiver.
Ways of Communication in an Organization:
Downward Communication
Upward Communication
Sideways Communication
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The Philosophy of TQM
RecognitionIt should be provided for both suggestions andachievements for teams as well as individuals.
Employees strive to receive recognition for
themselves and their teams.
As a person is recognized, there can be hugechanges in:
Self-esteem
Productivity
Quality
Amount of effort put to a task at hand.
Ways of Recognition
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The Philosophy of TQM
Innovators of Modern QualityThinking
US Quality Innovators
Walter Shewhart (1920 1940s)
W.Edwards Deming (post WWII through 1980s)
Joseph M. Juran (consultant post WWII through1980s)
Philip Crosby(1980s)
Armand Feigenbaum (1970s 1980s)
Japanese Quality Innovators
Kaoru Ishikawa (post WWII through 1980s)
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The Philosophy of TQM
How BPR differs from TQMThe primary focus of both BPR and TQM is oncustomers. Adequate response to thechanging needs of customers in a competitive
business environment is the key element ofsuccess in both. Unlike TQM, BPR is notexplicit in highlighting the concept of internalcustomers. The success of a reengineeredprocess, however, depends on internal
customer satisfaction.
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The Philosophy of TQM
How BPR differs from TQM (contd.)Both BPR and TQM are process-oriented,cross-functional concepts. BPR attempts tobring about dramatic changes in existing
processes, the changes resulting from TQMare not always so. When a process does notperform satisfactorily, TQM applies differentsimple but useful techniques like Paretoanalysis, Ishikawa cause and effect diagram,
control charts, etc. BPR on the other hand,attempts to take drastic steps to improve theprocess which is phenomenally different fromthe earlier one.
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The Philosophy of TQM
How BPR differs from TQM (contd.)Both BPR and TQM are process-oriented,cross-functional concepts. BPR attempts tobring about dramatic changes in existing
processes, the changes resulting from TQMare not always so. When a process does notperform satisfactorily, TQM applies differentsimple but useful techniques like Paretoanalysis, Ishikawa cause and effect diagram,
control charts, etc. BPR on the other hand,attempts to take drastic steps to improve theprocess which is phenomenally different fromthe earlier one.
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