session 1(iqcm)
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TRANSCRIPT
Introduction to Quality
Dr. Hima Gupta
Session 1
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TQMTQM
• Total - Made up of the whole
• Quality - degree of excellence a product or service provides
• Management - Act, art or manner of planning, controlling, directing,….
Therefore, TQM is the art of managing the Therefore, TQM is the art of managing the whole to achieve excellencewhole to achieve excellence.
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WHAT IS QUALITY ?
EVERYTHING WHICH MATTERS TO THE CUSTOMER
WHAT IS POTENTIAL OF AN ORGANISATION ? ( INCLUDING THE EFFECT OF SYNERGY )
WHAT IS PRESENT LEVEL OF PERFORMANCE ?
QUALITY MANAGEMENT ATTEMPTS TO FILL THIS GAP
REVENUE-EARNING PER STAFF PER ANNUM FOR IR
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What is Quality?• There are so many definitions for
Quality.• Quality is…..
– Based on judgments by an individual or organisation
– Fitness for purpose– Corresponds to a rating– Based on acceptable performance– Meeting goals– Meeting requirements
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Traditionally Quality has 3 main dimensions
• Performance• Price• PromptnessIn present context , following more dimensions should be added to Concern for Quality –
• Global competitiveness• Concern for environment• Concern for safety ( for Transport Orgn. ) 5
New & Old CultureQuality Element Previous State New State-----------------------------------------------------------------------
Definition Pdt oriented Cust. Oriented
Priorities Second to service & cost First among equals of service & cost
Decisions Short – term Long term
Emphasis Detection Prevention
Errors Operations System
Responsibility QC Everyone
Pblm solving Managers Teams
Procurement Price Life – cycle costs, partnership
Manager’s Role Plan, assign, control Delegate, coach, facilitate and enforce and mentor
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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.
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• What is Quality?Quality is the ability of your product to be able to satisfy your users
• What is Quality Assurance?Quality Assurance is the process that demonstrates your product is able to satisfy your users
What is Quality Assurance?
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What is Quality Control?• Quality Control (QC) is the
implementation of regular testing procedures against your definitions of quality and more specifically the refinement of these procedures – Formal use of testing– Acting on the results of your tests– Requires planning, structured tests, good
documentation– Relates to output - Quality Circle– Standards - ISO 9000 & BS5750
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The Quality Cycle
RefineProduct
QualityControl
QualityAssurance
Qualityoutput
input
Test results
CreateProduct
TestProduct
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Dimensions of Quality
Product- TVPerformance - Primary Characteristics, such as brightness
Features –Secondary Characteristics, Remote Control
Conformance-Meeting Specifications or Standards
Reliability –Consistency of Performance over time-fail
Durability- Useful life ,include Repair Service
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Defining Quality
Perfection
ConsistencyEliminating waste
Fast delivery
Compliance with policies and procedures
Providing a good, usable product
Doing it right the first time
Delighting or pleasing customers
Total customer service and satisfaction
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Formal Definitions of QualityFormal Definitions of Quality
• Transcendent definition: excellence
• Product-based definition: quantities of product attributes
• User-based definition: fitness for intended use
• Value-based definition: quality vs. price
• Manufacturing-based definition: conformance to specifications
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Quality PerspectivesQuality Perspectives
CustomerCustomer
DistributionDistribution
productsproducts and and servicesservices
needsneeds
transcendent &transcendent &product-basedproduct-based user-baseduser-based
manufacturing-manufacturing- basedbased
value-basedvalue-based
MarketingMarketing
DesignDesign
ManufacturingManufacturing
Information flowInformation flowProduct flowProduct flow 14
Customer-Driven QualityCustomer-Driven Quality
• “Meeting or exceeding customer expectations”
• Customers can be...– Consumers– External customers– Internal customers
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Total Quality
• People-focused management system• Focus on increasing customer satisfaction
and reducing costs• A systems approach that integrates
organizational functions and the entire supply chain
• Stresses learning and adaptation to change• Based on the scientific method
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Learning
LEARNING AND TQM
Process Improvement
Quality Improvement
Customer Satisfaction
Shareholder Satisfaction
Employee Satisfaction
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BASIC PRINCIPLES OF TQM
Approach Management Led
Scope Company Wide
Scale Everyone is responsible for Quality
Philosophy Prevention not Detection
Standard Right First Time
Control Cost of Quality
Theme On going Improvement
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Principles of Total Quality
• Customer and stakeholder focus• Participation and teamwork• Process focus supported by continuous
improvement and learning
…all supported by an integrated organizational infrastructure, a set of management practices,and a set of tools and techniques
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FOUR KEY PRINCIPLESFOUR KEY PRINCIPLES
•Measure quality so you can affect it
•Focus on a moving customer
•Involve every employee
•Think long term - Act short term
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SEVEN DEADLY SINS OF TQMSEVEN DEADLY SINS OF TQM
•Flight to nowhereFlight to nowhere
•One size fits allOne size fits all
•Substituting TQM for leadershipSubstituting TQM for leadership
•Inside - Out indicatorsInside - Out indicators
•Mandatory religionMandatory religion
•Quality kept as a separate activityQuality kept as a separate activity
•Teaching to the testTeaching to the test
Booz-Allen & HamiltonBooz-Allen & Hamilton 21
Essentials of the Quality System 1. Say what you do
By studying the Quality Manual, teams working on a particular process know what the job requires. If in doubt, they can ask team leaders. This process enables everyone involved to understand and state the process and their role within it.
2. Do what you say
Once they understand the process, team members are able to implement it e.g. by constructing a new building for a specific client.
3. Record what you have done
Construction teams record all actions taken, so that all those involved know the current position, what has gone on before and what still needs to be done.
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Essentials of the Quality System 4. Review what you have done
Records are regularly reviewed both to ensure delivery targets can be met and to identify any problem areas.
5. Take remedial action where necessary
If problems or potential problem areas are identified, steps are taken to eliminate or reduce these.
6. Then start the process again
This procedure is followed for each stage in each process to ensure that everyone benefits from solutions to problems, which have already been devised.
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Deming’s View of aProduction System
Suppliers ofmaterials and equipment
Receipt and test of materials
Design and Redesign
Consumer research
ABCD
Production, assembly inspection
Tests of processes, machines, methods
Distribution
Consumers
INPUTS PROCESSES OUTPUTS
Feedback
Receipt and test of materials
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Infrastructure, Practices, and Tools
Leadership Strategic HRM Process Information and knowledgeLeadership Strategic HRM Process Information and knowledge Planning mgt. managementPlanning mgt. management
Performance TrainingPerformance Training appraisalappraisal
Trend chartTrend chartToolsTools
PracticesPractices
InfrastructureInfrastructure
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TQ Infrastructure
• Customer relationship management• Leadership and strategic planning• Human resources management• Process management• Information and knowledge management
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Quality and ProfitabilityQuality and Profitability
Improved quality of design
Higher perceived value
Increased market share
Higher prices
Increased revenues
Improved quality of conformance
Lower manufacturing and
service costs
Higher profitability 27
Three Levels of Quality
• Organizational level: meeting external customer requirements
• Process level: linking external and internal customer requirements
• Performer/job level: meeting internal customer requirements
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Quality and Personal ValuesQuality and Personal Values
• Personal initiative has a positive impact on business success
• Quality begins with personal attitudes
• Quality-focused individuals often exceed customer expectations
• Attitudes can be changed through awareness and effort (e.g., personal quality checklists)
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Key Idea
In the daily attempt to bring about change in the individual parts of the organizational universe, managers, employees, professors, and students can find that personal quality is the key to unlock the door to a wider understanding of what the concept really is all about. Unless quality is internalized at the personal level, it will never become rooted in the culture of an organization. Thus, quality must begin at a personal level (and that means you!).
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Quality is a Journey, not a Destination
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