Lecture 1. TQM Basics

(Philosophies and Principles)

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What is TQM?

Meeting quality expectations as defined by the customer

Integrated organizational effort designed to improve quality of processes at every business level

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Defining Quality – 5 Ways

Conformance to specifications Does product/service meet targets and tolerances

defined by designers? Fitness for use

Evaluates performance for intended use Value for price paid

Evaluation of usefulness vs. price paid Support services

Quality of support after sale Psychological

e.g. Ambiance, prestige, friendly staff

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Manufacturing Quality vs. Service Quality Manufacturing quality focuses on tangible

product features Conformance, performance, reliability, features,

durability, serviceability Service organizations produce intangible

products that must be experienced Quality often defined by perceptional factors like

courtesy, friendliness of staff, promptness in resolving complaints, atmosphere, waiting time, consistency

Evolution of Quality Principles

MiddleAges

Artisan

IndustrialRevolution

Inspection

1940's

QualityControl

1950's

StatisticalQualityControl

1980's

StatisticalProcessControl

1990's

Total QualityManagement

ERA

QualityPrinciples

FUTURE

2000's

ISO

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The Evolution of TQM

Early 20th century – Quality meant inspection. Reactive in nature

1980s – Quality began to have strategic meaning. Proactive in nature

Successful companies understand that quality provides a competitive advantage

Put customer first, and define quality as meeting or exceeding customers expectation

Quality excellence has become a standard for doing business

Artisan

Up until the advent of mass production, artisans completed individual products and inspected the quality of their own work or that of an apprentice before providing the product to the customer.

If the customers experienced any dissatisfaction with the product, he or she dealt directly with the artisan.

Inspection

As the variety of items being mass-produced grew, so did the need for monitoring the quality of the parts produced by these processes. Industries saw a need to ensure that the customer received a quality product.

Refers to those activities designed to detect or find nonconformances existing in already completed products and services.

Inspection, the detection of defects, is a regulatory process.

It involves the measuring, examining, testing, or gauging of one or more characteristics of a product or service.

This result is compared with established standards to determine whether or not the product or service conforms

Quality Control (QC)

QC refers to the use of specifications and inspection of completed parts, subassemblies, and products to design, produce, review, sustain, and improve the quality of a product or service.

Quality control goes beyond inspection by

1. Establishing standards for the product or service, based on the customer needs, requirement, and expectations.

2. Ensuring conformance to these standards. Poor quality is evaluated to determine the reasons why the parts or services provided are incorrect.

3. Taking action if there is a lack of conformance to the standards. These actions may include sorting the product to find the defectives. In service industries, actions may include contacting the customer and correcting the situation.

4. Implementing plans to prevent future nonconformance. These plans may include design or manufacturing changes; in a service industry they may include procedural changes

Statistical Quality Control (SQC)

Building on the four tenets of QC, statistics were added to map the results of part inspection.

The use of statistical methods of production monitoring and part inspection became known as statistical quality control (SQC), wherein statistical data are collected, analyzed, and interpreted to solve quality problems.

The primary concern of individuals involved in quality is monitoring and control of variation in the product being produced or service being provided.

Statistical Process Control (SPC)

The prevention of defects by applying statistical methods to control the process is known as statistical process control (SPC).

Statistical process control emphasizes the prevention of defects.

Prevention refers to those activities designed to prevent defects, defectives, and nonconformance in products and services.

Statistical Process Control (SPC)

The most significant difference between prevention and inspection is that with prevention, the process – rather than solely the product- is monitored, controlled, and adjusted to ensure correct performance.

By using key indicators of product performance and statistical methods, those monitoring the process are able to identify changes that affect the quality of the product and adjust the process accordingly.

Statistical Process Control (SPC)

Statistical process control also seeks to limit the variation present in the item being produced or the service being provided.

While it once was considered acceptable to produce parts that fell somewhere between the specification limits,

statistical process control seeks to produce parts as close to the nominal dimension as possible and to provide services of consistent quality from customer to customer.

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TQM Philosophy – What’s Different?

TQM attempts to embed quality in every aspect of the organization

Focus on Customer Identify and meet customer needs Stay tuned to changing needs, e.g. fashion styles

Continuous Improvement Continuous learning and problem solving, e.g. Kaizen, 6 sigma

Quality at the Source Inspection vs. prevention & problem solving

Employee Empowerment Empower all employees; external and internal customers Team approach, quality circle

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TQM Philosophy– What’s Different? (continued)

Understanding Quality Tools Ongoing training on analysis, assessment, and

correction, & implementation of quality tools Team Approach

Teams formed around processes – 8 to 10 people Meet weekly to analyze and solve problems

Benchmarking Studying practices at “best in class” companies

Managing Supplier Quality Certifying suppliers vs. receiving inspection

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Four Dimensions of Quality

Quality of design Determining which features to include in the final

design Quality of conformance to design

Production processes are set up to meet design specifications

Ease of use Instructions, operation, maintenance, safety

Post-sale service Responsiveness, rapid repair, p.m., spare parts

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Ways of Improving Quality

Plan-Do-Study-Act Cycle (PDSA) Also called the Deming Wheel after its originator Circular, never ending problem solving process

Quality Function Deployment (QFD) Used to translate customer preferences to design

Seven Tools of Quality Control Tools typically taught to problem solving teams

The Quality Gurus or Philosophers

The Quality Gurus can be divided into four main periods:

1. The pioneer (Walter Shewhart)2. The early Americans who took messages of quality

to the Japanese in the early 1950s (W Edwards Deming, Joseph M Juran and Armand V Feigenbaum).

3. The Japanese response from the late 1950s onwards (Dr Kaoru Ishikawa, Dr Genichi Taguchi and Shigeo Shingo).

4. The new Western wave concentrating on Quality Awareness from the 1970s onwards (Philip Crosby, Tom Peters and Claus Moller).

Walter Shewhart (1891-1967)

Western Electric & Bell Telephone Engineer

Grandfather of quality control

Father of Statistical Quality Control (SQC)

Founder of the Control Chart (e.g. X-bar R chart)

Originator of PDCA cycle

ASQC (American Society for Quality) 1st Honorary Member 1947

William Edwards Deming (1900-1993)

Awarded a Ph. d in Mathematical Physics in 1928

Western Electric Statistician Father of quality control Stressed management’s

responsibility for quality Developed “14 points” to guide

companies in quality improvement Japanese established “Deming Prize”

in his name 15% of quality problems are actually

due to worker error 85% of quality problems are caused

by systems and errors Founder, Third Wave of Industrial

Revolution Popularized Shewhart PDCA cycle

Joseph Moses Juran (1904-2008)

Joined Western Electric as an Industrial Engineer

Developed the western Electric Statistical Quality Control Handbook

Also well-known for helping improve Japanese quality

Developed the Juran Trilogy for managing quality

Quality planning Quality control Quality improvement

Enlightened the world on the concept of the vital few, trivial many which is the foundation of Pareto charts

Philip B. Crosby (1926-2001)

Vice president, Quality at International Telephone & Telegraph (ITT)

Introduced the four absolutes of quality

Written the book

“ Quality is Free” (1979) Introduced concept of zero

defects Developed the phrase “Do it

right the first time” (DIRFT)

Armand Vallin Feigenbaum

President/CEO, General Systems Company

Founder, International Academy for Quality

ASQC President (1961-63) US Army Material Command

Advisor of Quality Assurance Stressed a systems approach to

quality Introduced the concept of total

quality control Cost of quality may be separated

into costs for prevention, appraisal, and failures (e.g., scrap, warranty)

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Cost of Quality

Quality effects all aspects of the organization and have dramatic cost implications

Most obvious consequence of poor quality is dissatisfied customers and eventual loss of business

Prevention costs – cost of preparing and implementing a quality plan

Appraisal costs – cost of testing, evaluating and inspecting quality

Internal failure costs – cost of scrap, rework, and material losses

External failure costs – cost of failure at customer site, including returns, repairs and recalls External failures can sometimes put a company out of business

almost overnight External failure costs tend to be particularly high for service

organizations

Kaoru Ishikawa (1915-1989) Developed cause-and-effect

diagrams Identified concept of “internal

customer” Advocate the use of the 7 tools

(e.g., cause-and effect diagram, pareto chart, etc.,)

Advanced the use of QCC (Quality Control Circle)

Developed concept of Japanese Total Quality Control/Company-wide quality control (CWQC)

Genichi Taguchi (1924-?)

Director of the Japanese Academy of Quality

Advisor at the Japanese Standard Association

Focused on product design quality Developed Taguchi loss function

Costs of quality increase as a quadratic function as conformance values move away from target

Promoted the use of parameter design

Shigeo Shingo (1909 -1990)

President of the Institute of Management Improvement

Advocated the replacement of (SQC) with source inspection (controlling at the source rather than through sampling inspections)

Developed Poka-Yoke devices/system (mistake proofing devices) such as sensors and monitors to identify defects at the point they occur

“Zero defect” approach because zero defects is the ultimate goal

Tom Peters

Educated in engineering & business Worked as a principal at Mckinsey &

Co when he wrote his book “In search of Excellence” (1982) – excellent performance within 43 large American Companies

Identified leadership as being central to quality improvement process

Best known for his customer orientation

Describe 12 attribute or traits of quality revolution

Claus Moller

European – a Danish business economist

Founded Time Manager International (TMI) in 1975

TMI provide management training in the Soviet Union & EEC

TMI also involved with quality management training

His 1st book “Personal quality” was published in 1988

Quality planning begins with

(1) identifying customers, both external and internal, (2) determining their needs and (3) developing product features that respond to those

needs at a minimum combined cost. (4) the process that can produce the product to

satisfy customers' needs and meet quality goals under operating conditions must be designed.

(5) compares results with previous plans, and meshes the plans with other corporate strategic objectives.

Quality control involves

(1) determining what to control, (2) establishing units of measurement to

evaluate data objectively, (3) establishing standards of performance, (4) measuring actual performance, (5) interpreting the difference between actual

performance and the standard and (6)taking action on the difference.

The twelve traits of a quality revolution are:

1. Management obsession with quality

2. Passionate systems

3. Measurement of quality

4. Quality is rewarded

5. Everyone is trained for quality

6. Multi-function teams

The twelve traits of a quality revolution are:

7. Small is beautiful

8. Create endless 'Hawthorne' effects

9. Parallel organizational structure devoted to quality improvement

10. Everyone is involved

11. When quality goes up, costs go down

12. Quality improvement is a never-ending journey

The Objective and Principles of TQM

CONTINUOUSIMPROVEMENT

CustomerFocus

ProcessImprovement

TotalInvolvementPRINCIPLES

OBJECTIVE

Objective of TQM: Continual ImprovementObjective of TQM: Continual Improvement the notion that the performance

standard to reach is perfection or “zero defect” to coin Phillip

Crosby or “picking the last grain of rice” in

Japanese involves incremental improvement &

breakthroughs

Principles of TQM: Customer FocusPrinciples of TQM: Customer Focus

the notion that all work is performed for a “customer” and

it is the customer who determines its value

Principles of TQM: Process Improvement The concept of continuous improvement is

built on the premise that work is a result of a series of interrelated steps and activities that result in an output.

Continuous attention to each of these steps in the work process is necessary to reduce the variability of the output and improve the reliability of the process

Principles of TQM: Process Improvement The 1st goal of continuous improvement is

processes that are reliable – reliable in the sense that they produce the desired output each time with no variation.

If variability has been minimized and the results are still unacceptable, the second goal of process improvement is to redesign the process to produce an output that is better able to meet the customer’s requirement.

Principles of TQM: Total Participation (TP)Principles of TQM: Total Participation (TP) the idea that work has an additional dimension In traditional organization, the worker expects to

be told what to do and how satisfactory performance will be measured

TP implies that the person closest to the task is most qualified to suggest improved ways of doing the job

He/she suggests ways to make improvements aimed at enhancing productivity & value to the customer