total quality management-subroto ghosh

8/9/2019 Total Quality Management-Subroto Ghosh

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TOTAL TOTAL QUALITY MANAGEMENT QUALITY MANAGEMENT

Prepared by Subroto Ghosh



Management Learning Seriee Vol # 05 2

Three basic fundamentalrequirements

Quality

Cost,

Productivity




Let’s define Quality

§ Webster’s Dictionary§ degree of excellence of a thing

§§ American Society for Quality§ totality of features and characteristics that

satisfy needs




What is Quality

• “ ”Quality is fitness for use ( )Joseph M Juran

• “ ”Quality is conformance to requirements (Philip. )B Crosby

• Quality of a product or services is its ability to satisfy

the needs and expectations of the customer

• ‘ ’ WOW your customers

• ‘ ’Producing with Zero Defect

• The totality of features and characteristics of a product or

service that bear on its ability to satisfy stated or.implied need of customers ( : )ISO 8402 Quality Vocabulary




Defining Quality – 5Ways Conformance to specifications

Does product/service meet targets and tolerancesdefined 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




Evolution of Quality Management

Inspection

QualityControl

QualityAssurance

TQM

, , , ,Salvage sorting grading blending

,corrective actions identify sources of-non conformance ,Develop quality manual process

, - ,performance data self inspection product, ,testing basic quality planning use of

, .basic statistics paperwork control

,Quality systems development advanced,quality planning comprehensive quality

, ,manuals use of quality costs involvement

- ,of non production operations failure mode

, .and effects analysis SPC

, &Policy deployment involve supplier, ,customers involve all operations process, ,management performance measurement

, .teamwork employee involvement


http://slidepdf.com/reader/full/total-quality-management-subroto-ghosh 7/95Management Learning Seriee Vol # 05 7

Evolution of TQM – NewFocus



Dimensions of Quality:Manufactured Products

§ Fitness for use§ how well product or service does what it is supposed to

§ Quality of design

§ designing quality characteristics into a product or service

§ A Mercedes and a Ford are equally “fit for use,” but withdifferent design dimensions




§ Performance

§ basic operating characteristics of a product;how well a car is handled or its gas mileage

§ Features§ “extra” items added to basic features, such as

a stereo CD or a leather interior in a car

§ Reliability

§ probability that a product will operate properlywithin an expected time frame; that is, a TVwill work without repair for about seven years

Di i f Q lit




(cont.)§ Conformance

§ degree to which a product meets pre–establishedstandards

§ Durability

§ how long product lasts before replacement

§ Serviceability

§ ease of getting repairs, speed of repairs, courtesyand competence of repair person

Di i f Q lit




(cont.)§ Aesthetics

§ how a product looks, feels, sounds, smells, or tastes

§ Safety§ assurance that customer will not suffer injury or

harm from a product; an especially importantconsideration for automobiles

§ Perceptions§ subjective perceptions based on brand name,

advertising,



Dimensions of Quality:Service

§ Time and Timeliness

§ How long must a customer wait for service, and is itcompleted on time?

§ Is an overnight package delivered overnight?

§ Completeness:

§ Is everything customer asked for provided?

§ Is a mail order from a catalogue company completewhen delivered?



Dimensions of Quality:Service (cont.)

§ Courtesy:

§ How are customers treated by employees?

§ Are catalogue phone operators nice and are their

voices pleasant?

§ Consistency

§ Is the same level of service provided to each

customer each time?§ Is your newspaper delivered on time every

morning?



Dimensions of Quality:Service (cont.)§ Accessibility and convenience

§ How easy is it to obtain service?

§ Does a service representative answer you calls quickly?

§ Accuracy§ Is the service performed right every time?

§ Is your bank or credit card statement correct every month?

§ Responsiveness

§ How well does the company react to unusual situations?

§ How well is a telephone operator able to respond to acustomer’s questions?



Meaning of Quality:Producer’s Perspective

§ Quality of Conformance

§ Making sure a product or service is produced

according to design§ if new tires do not conform to specifications,

they wobble

§ if a hotel room is not clean when a guest

checks in, the hotel is not functioningaccording to specifications of its design



Meaning of Quality:A Final Perspective

§ Consumer’s and producer’s perspectivesdepend on each other

§ Consumer’s perspective

§ Producer’s perspective

§ Consumer’s view must dominate



What Is TQM ??



TQM

Total - Made up of the whole

Quality - degree of excellence a productor service provides

Management - Act, art or manner of planning, controlling, directing,….

Therefore, TQM is the art of managingthe whole to achieve excellence.



How Work Gets Done in anOrganization?

Inputs Delivered by suppliers

Processes Steps to transform inputs

Outputs Goods and Servicesvalued by customers

Quality of outputs depends on the correctexecution of FIRST two steps. A mistake anywherein the process affects everyone in one way toanother.




Concept of InternalCustomers

ExternalSuppliers InternalSuppliers InternalSuppliers ExternalCustomer

Improvements Improvements

RequirementsRequirements




What does TQM mean?

Total Quality Management means that theorganization's culture is defined by andsupports the constant attainment of customer

satisfaction through an integrated system of tools, techniques, and training.

This involves the continuous improvement of

organizational processes, resulting in highquality products and services.




Total QualityManagement “TQM is a management philosophy

embracing all activities through which theneeds and expectations of the customer and

the community and the objectives of theorganisation are satisfied in the most efficientand effective way by maximising the potentialof the employees in a continuous drive for

improvement”




Total QualityManagement TQM is integrated organisational approach

in delighting customers (both internal andexternal) by meeting their expectations on a

continuous basis through everyone involvedin the organisation, working on continuousimprovement in all products, services, andprocesses along with proper problem solving

methodology.




Another way to put it

At it’s simplest, TQM is all managers leadingand facilitating all contributors in everyone’stwo main objectives:

(1) total client satisfaction throughquality products and services; and

(2) continuous improvements to processes, systems, people, suppliers, partners, products, and services.




Total Quality Managementand Continuous Improvement

TQM is the management process used to makecontinuous improvements to all functions.

TQM represents an ongoing, continuous commitmentto improvement.

The foundation of total quality is a managementphilosophy that supports meeting customer

requirements through continuous improvement.




Continuous Improvement versus Traditional Approach

Market-share focus Individuals Focus on ‘who” and “why” Short-term focus Status quo focus Product focus

Fire fighting

Customer focus Cross-functional teams Focus on “what” and “how” Long-term focus Continuous improvement Process improvement focus Problem solving

Traditional ApproachContinuous ImprovementContinuous Impr ovementContinuous ImprovementContinuous Impr ovement




Quality Throughout

“A Customer’s impression of quality begins with theinitial contact with the company and continuesthrough the life of the product.”

Customers look to the total package - sales, service during

the sale, packaging, deliver, and service after the sale.Quality extends to how the receptionist answers the

phone, how managers treat subordinates, howcourteous sales and repair people are, and how theproduct is serviced after the sale.

“All departments of the company must strive toimprove the quality of their operations.”




The TQM System

CustomerFocus

ProcessImprovement

TotalInvolvement

Top Management Commitments

Customer Focus Employees Involvement and Empowerment

Process Focus and improvement Continuous improvement Measurement of performance

Education and Training Supportive structure Communications Reward and recognition

ContinuousImprovement Objective

Principles

Elements




Manufacturing Quality vs.Service Quality

Manufacturing quality focuses on tangibleproduct featuresConformance, performance, reliability, features

Service organizations produce intangibleproducts that must be experiencedQuality often defined by perceptional factors like

courtesy, friendliness, promptness, waiting time,

consistency




TQM Philosophy – What’sDifferent?

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 SourceInspection vs. prevention & problem solving

Employee EmpowermentEmpower all employees; external and internal

customers




TQM Philosophy– What’s Different?(continued)

Understanding Quality ToolsOngoing training on analysis, assessment, and

correction, & implementation tools

Team Approach

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

BenchmarkingStudying practices at “best in class” companies

Managing Supplier QualityCertifying suppliers vs. receiving inspection

Wh i TQM?




What is TQM?

Constant drive

for continuousimprovement and

learning.

Concern foremployee

involvement anddevelopment

Management

by Fact

Result Focus

Passion to deliver

customer value /excellence

Organisationresponseability

Actions not just

words(implementation) Process

Management

Partnershipperspective

(internal /external)




/ASIC PRINCIPLES APPROACHES OF TQM

Manageme

Comp

veryone is respons

revention no

ight Fir

ost of

n going Impr




Learning

LEARNING AND TQM

Process Improvement

Quality Improvement

stomer SatisfactionShareholder SatisfactionEmployee Satisfaction




Cost of Quality

Cost of Achieving Good QualityPrevention costs

○ costs incurred during product design

Appraisal costs

○ costs of measuring, testing, and analyzing Cost of Poor QualityInternal failure costs

○ include scrap, rework, process failure, downtime,and price reductions

External failure costs○ include complaints, returns, warranty claims,

liability, and lost sales




Prevention Costs

Quality planning costs costs of developing and

implementing qualitymanagement program

Product-design costs

costs of designingproducts with qualitycharacteristics

Process costs costs expended to make

sure productiveprocess conforms toquality specifications

Training costs costs of developing and

putting on qualitytraining programs for employees andmanagement

Information costs costs of acquiring and

maintaining datarelated to quality, anddevelopment of

reports on qualityperformance




Appraisal Costs

Inspection and testing costs of testing and inspecting materials, parts, and

product at various stages and at the end of aprocess

Test equipment costs costs of maintaining equipment used in testing

quality characteristics of products

Operator costs costs of time spent by operators to gather data for

testing product quality, to make equipmentadjustments to maintain quality, and to stop workto assess quality




Internal Failure Costs

Scrap costs costs of poor-quality

products that must bediscarded, includinglabor, material, andindirect costs

Rework costs costs of fixing defective

products to conform toquality specifications

Process failure costs costs of determining why

production process isproducing poor-qualityproducts

Process downtime costs costs of shutting down

productive process tofix problem

Price-downgrading costs costs of discounting

poor-quality products—that is, sellingproducts as “seconds”




External Failure Costs

Customer complaint costs costs of investigating and

satisfactorily responding toa customer complaintresulting from a poor-quality product

Product return costs costs of handling and

replacing poor-qualityproducts returned bycustomer

Warranty claims costs

costs of complying withproduct warranties

Product liability costs litigation costs

resulting fromproduct liability andcustomer injury

Lost sales costs costs incurred

becausecustomers aredissatisfied withpoor quality

products and donot makeadditionalpurchases




Quality Gurus

W Edwards Deming

Joseph Juran

Philip Crosby

Shigeo Shingo Kaoru Ishikawa

Yoshio Kondo

Taiichi Ohno




W Edwards Deming

regarded by the Japanese as the chief architect of their industrial success

“all processes are vulnerable to loss of quality

through variation: if levels of variation aremanaged, they can be decreased andquality raised”

quality is about people, not products




W Edwards Deming

Core element is the “management circle”planning

do/implementation

check/studyaction

PDCA (or PDSA) cycle

Continuous improvement (Kaizen)teamwork and competence in problem solving




PLAN

STUDY

DOACT

The Deming Cycle or PDCA Cycle

Plan a change to the process. Predict theeffect this change will have and plan howthe effects will be measured

Implement the change ona small scale and measurethe effects

Adopt the change as apermanent modificationto the process, orabandon it.

Study the results tolearn what effect the

change had, if any.




W Edwards Deming

Out of the Crisis (1984)having a satisfied customer is not enough

profit in business comes from

○ repeat customers○ customers that boast about your product

and service

○ customers that bring friends with them

necessary to anticipate customer needs




. ’Edwards Deming s 14 Points

reate constancy of purpose towards.mprovement of product and services

.dopt the new philosophy We can no

onger live with commonly accepted, ,evels of delays mistakes defective.orkmanship

.ease dependence on mass inspection

, ,equire instead statistical evidence.hat quality is built in

nd the practice of awarding business.n the basis of price tag

1)

2)

3)

4)





. ’ind problems It is management s job to.ork continually on the system

nstitute modern methods of training on

.he job nstitute modern methods of supervision

.f production workers The esponsibility of foremen must be

.hanged from numbers to quality rive out fear that everyone may work

.ffectively for the company

5)

6)

7)

8)




nstitute a vigorous programme of.ducation and retraining

reate a structure in top management

hat will push everyday on the above 13.oints

13)

14)





Improve Quality

Productivity improves

Provide jobs andmore jobs

Deming’s Chain Reaction

Cost decreases becauseof less rework, fewermistakes, fewer delays,

snags, better use of machine time andmaterialsStay in business

Capture the market withbetter quality and lower price




Joseph Juran

structure CWQM concept:Company-Wide Quality Management

essential for senior managers to

involve themselvesdefine the goals

assign responsibilities

measure progress




Joseph Juran

empowerment of the workforce quality linked to

human relations and teamwork

key elementsidentifying customers and their needs

creating measurements of quality

planning processes to meet quality goals

continuous improvements




Joseph JURAN

Quality just not just happen but has to beplanned

Trilogy of Quality:Quality Planning

Quality Control

Quality Improvement




Joseph JURAN

Quality PLANNING consists of: Identifying customers and their needs

Establishing optimum quality goals

Creating measurements of quality Plan to meet quality goals under operating

conditions

Produce continuing results




Joseph JURAN

Emphasises the importance of internal as well asexternal customers

Concept of ‘fitness for use’ to be applied to theinterim product for all internal customers

Actions should consist of 90% substance,

10% exhortation

(not the reverse)




Philip CROSBY

Quality is defined as conformance torequirements

Traditional quality control represent failure

Manufacturing companies spend 20%revenues doing things wrong so…‘Do it Right First Time’

‘Zero Defects’




Philip CROSBY

Without reservation senior management isentirely responsible for quality

Goal should be to give all staff training andtools of quality improvement to apply the

concepts of Prevention management Quality improvement has to be ongoing




Philip CROSBYCharacteristics of continuing success…

1. People do things right first time

2. Change is anticipated and used to advantage

3. Growth s consistent and profitable4. New products and services appear when needed

5. Everyone is happy to work there



Four Absolutes of Quality




Four Absolutes of QualityManagement

(Crosby, 1979)Cost of Quality classified as:

xPrevention costs

xAppraisal costs

xFailure costs

Cost of Quality: prevention




Cost of Quality: preventioncosts

design reviews

product qualification drawing checking

engineering quality orientation

supplier evaluations

supplier quality seminars

specification review

process capability studies

tool control

operation training

quality orientation acceptance planning

zero defects programme

Quality Audits

preventative maintenance

Cost of Quality: appraisal




Cost of Quality: appraisalcosts

prototype inspection and test production specification conformance

analysis supplier surveillance receiving inspection and test product acceptance process control acceptance

packaging inspection status measurement and reporting

Cost of Quality: failure




Cost of Quality: failurecosts

consumer affairs redesign

engineering change order

purchasing change order corrective action costs

rework

scrap

warranty

service after service

product liability




Shigeo Shingo

Poka-Yoke: mistake-proofingidentify errors before they become defects

stop the process whenever a defect occurs,

define the source and prevent recurrence

1967: source inspection + improved PYprevented the worker from making errors

so that defects could not occur Zero Quality Control




Kaoru Ishikawa

“quality does not only mean the quality of the product,

but also of after sales service,

quality of management, the company itself

and human life”

Kaoru Ishikawa (points 1 7




Kaoru Ishikawa (points 1-7

of 15)

product quality is improved and becomesuniform. Defects are reduced

reliability of goods is improved

cost is reduced

quantity of production is increased,rational production schedules are possible

wasteful work and rework are reduced

technique is established and improvedinspection and testing costs are reduced




Kaoru Ishikawa (points 8-15

of 15)rational contracts between vendor/vendee

sales market is enlarged

better relationships between departments

false data and reports are reduced

freer, more democratic discussions

smoother operation of meetings

more rational repairs and installationimproved human relations




Yoshio Kondo

Human work should include:creativity

○ the joy of thinking

physical activity

○ the joy of working with sweat on theforehead

sociality

○the joy of sharing pleasure and pain withcolleagues




Yoshio Kondo

Four points of action to support motivationwhen giving work instruction, clarify the true

aims of the work

see that people have a strong sense of responsibility towards their work

give time for the creation of ideas

nurture ideas and bring them to fruition




Yoshio Kondo

Leaders must havea dream (vision and shared goals)

strength of will and tenacity of purpose

ability to win the support of followersability to do more than their followers,withoutinterfering when they can do it alone

successes

ability to give the right advice

Ohno: seven forms of




Ohno: seven forms of waste

overproduction waiting

transportation

motion inventory

defects

overprocessing

Seven Problem Solving




Seven Problem Solving Tools

Pareto Analysis

Flowcharts

Checklists

Histograms

Scatter Diagrams

Control Charts

Cause-and-Effect Diagrams




PARETO CHART

DEFINITION

A Pareto Chart is avertical bar chart in whichthe bars are arranged in the

descending order of their height starting from the leftand prioritize the problemsor issues.

USES to prioritize problems

to analyze a process

to identify root causes

to verify that whatever improvement processyou implementcontinues to work



Pareto




Percen

tfrom

eachcause

Percen

tfrom

e

achcause

Causes of poor qualityCauses of poor quality M a c h i n e c

a l i b r

a t i o n s

M a c h i n e c

a l i b r a t i o

n s

D e f e

c t i v e

p a r t s

D e f e

c t i v e

p a r t s

W r o n g

d i m

e n s i o n s

W r o n g

d i m

e n s i o n s

P o o r

D e s i g n

P o o r

D e s i g n

O p e r a t o r

e r r o r s

O p e r a t o r

e r r o r s

D e f e

c t i v e

m a t e r i a l

s

D e f e

c t i v e

m a t e r i a

l s

S u r f a

c e a b r

a s i o n s

S u r f a

c e a b r a s i o n s00

1010

2020

30304040

5050

6060

7070(64)(64)

(13)(13)(10)(10)

(6)(6)(3)(3) (2)(2) (2)(2)

ParetoChart

Flow Charts




Flow Charts

Operation DecisionStart/Finish

Start/Finish

Operation

OperationOperation

Operation

Decision

Flow charts are nothing but graphical representation of steps involved in aprocess. Flow charts give in detail the sequence involved in the material, machine

and operation that are involved in the completion of the process. Thus, they arethe excellent means of documenting the steps that are carried out in a process.

Check Sheet




Check Sheet

COMPONENTS REPLACED BY LABTIME PERIOD: 22 Feb to 27 Feb 2002REPAIR TECHNICIAN: Bob

TV SET MODEL 1013

Integrated Circuits ||||

Capacitors |||| |||| |||| |||| |||| ||

Resistors ||

Transformers ||||CommandsCRT |

Check sheets are nothing but forms that can be used to systematically collect data.Check sheet give the user a place to start and provides the steps to be followed inCollecting the data

CHECK SHEET




CHECK SHEET

USES to gather data to test a theory to evaluate alternate

solutions

to verify that whatever improvementprocess youimplementcontinues to work

STEPS team agrees on what

to observe decide who collects

data

decide time period for collecting data design Check Sheet collect data compile data in the

Check Sheet review Check Sheet



Scatter Diagram




Scatter Diagram

Y Y

X X

It is a graph of points plotted; this graph is helpful in comparing two variables.

The distribution of the points helps in identifying the cause and effect relationshipBetween two variables.

Control Chart




1818

1212

66

33

99

1515

2121

2424

22 44 66 88 1010 1212 1414 1616

Sample number Sample number

Nu

mberofd

efe

ct s

Nu

mb

erofdefe

ct s UCL = 23.35

LCL = 1.99

c = 12.67

A control chart is nothing but a run chart with limits. This is helpful in finding theamount and nature of variation in a process.

Cause and Effect




Cause and EffectDiagram Developed by Dr Kaoru Ishikawa in 1943. It is also

known by the name of 1) Ishikawa diagram,2)Fishbone diagram.

This diagram is helpful in representing therelationship between an effect and the potentialor possible causes that influences it.

This is very much helpful when one want to find out

the solution to a particular problem that couldhave a number of causes for it and when we areinterested in finding out the root cause for it.

Cause-and-Effect




Diagram

QualityProblem

QualityProblem

Out of adjustmentOut of adjustment

Tooling problemsTooling problems

Old / wornOld / worn

MachinesMachines

FaultyFaultytesting equipmenttesting equipment

Incorrect specificationsIncorrect specifications

Improper methodsImproper methods

MeasurementMeasurement

Poor supervisionPoor supervision

Lack of concentrationLack of concentration

Inadequate trainingInadequate training

HumanHuman

DeficienciesDeficienciesin product designin product design

Ineffective qualityIneffective qualitymanagementmanagement

Poor process designPoor process design

ProcessProcess

InaccurateInaccuratetemperaturetemperaturecontrolcontrol

Dust and DirtDust and Dirt

EnvironmentEnvironment

Defective from vendor Defective from vendor

Not to specificationsNot to specifications

Material-Material-handling problemshandling problems

MaterialsMaterials

ua yCircles




PresentationImplementation

Monitoring

SolutionProblem results

ProblemAnalysis

Cause and effectData collectionand analysis

ProblemIdentificationList alternatives

Consensus

Brainstorming

TrainingGroup processesData collection

Problem analysis

Organization

8-10 membersSame area

Supervisor/moderator

Circles

Si Si




Six Sigma

A process for developing and deliveringnear perfect products and services

Measure of how much a process deviatesfrom perfection

3.4 defects per million opportunities

Championan executive responsible for project success

Black Belts and Green Belts




Black Belts and Green Belts

Black Beltproject leader

Master Black Belta teacher and

mentor for BlackBelts

Green Beltsproject team

members

Six Sigma: DMAIC




3.4 DPMO3.4 DPMO

67,000 DPMOcost = 25% of

sales

67,000 DPMOcost = 25% of

sales

DEFINEDEFINE CONTROL

CONTROLIMPROVEIMPROVEANALYZEANALYZEMEASURE

MEASURE

Six Sigma: DMAIC

Pokayoke (Error




y (Proofing) To design an operation in such a way that

specific errors are prevented from causingmajor problems to the customer. It is usedwhen defects occur and require 100 per centinspection, immediate feedback and actionat the 1) source of raw material 2) start of the production process 3) production point

where an error may occur.

Kaizen




Kaizen

A Japanese term meaning ‘change for thebetter’ the concept implies a CONTINUOSIMPROVEMENT in all company functionsat all levels. It is more cultural attitude anda life style rather than techniques.



Business Process Re-




engineering (BPR)

BPR is the fundamental rethinking andradical redesign of business processesto achieve dramatic improvements incritical, contemporary measures of performance, such as cost, quality, andspeed.

Steps in BPR




Steps in BPR

Process identification and mapping Choosing or selection of process to re-

engineer

Focus on critical processes Feasible processes

Understanding the process

Re-design the process.

Creating TQM Culture




From Traditional Culture Hierarchical style Top down information flow

Inward quality focus Functional focus Short-term planning Episodic improvements

Top down initiatives Manage and delegate Direct Counsel Functional and narrow scope of

jobs

Enforcement Fire – fighting with few individuals/group

To TQM Culture Participative style Top down, lateral and upward

information flow Customer defined quality focus Process focus A vision for the future Comprehensive/Continuous improvements

All staff involved and engaged Lead and Coach Empower Ownership and participation Integrated functions

Promoting mutual trust Team initiatives group focussing on

continuous improvement

Steps for Creating TQM Culture




Steps for Creating TQM Culture

Management accountability and a deep sense of

responsibility & commitment towardsemployees is the starting point. Total people involvement and empowerment Communication

Training to employees Management thoughts and action towardsdelighting its customers

Removing organisational boundaries and internalcompetition

Using fact based decision making Use of Kaizen

Benchmarking and




gContinuous Improvement

BenchmarkingThe practice of establishing internal

standards of performance by looking tohow world-class companies run their

businesses Continuous Improvement

The company makes small incrementalimprovements toward excellence on acontinual basis



Quality is a Journey,

not a Destination

total quality management-subroto ghosh

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