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Total Quality Management - TQM Standards in Action www.bsieducation.org/ standardsinaction Total Quality Management - TQM The quality journey continues…….. Author: Dr Rhys Rowland-Jones

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Page 1: Total Quality Management - TQM Standards in Action  Total Quality Management - TQM The quality journey continues……

Total Quality Management - TQM

Standards in Actionwww.bsieducation.org/standardsinaction

Total Quality Management - TQM

The quality journey continues……..

Author: Dr Rhys Rowland-Jones

                         

Page 2: Total Quality Management - TQM Standards in Action  Total Quality Management - TQM The quality journey continues……

Total Quality Management - TQM

Standards in Actionwww.bsieducation.org/standardsinaction

Session Plan

• Introduction to concepts of TQM• Standards and TQM• TQM Reasons for failure• Measurement of Quality

Page 3: Total Quality Management - TQM Standards in Action  Total Quality Management - TQM The quality journey continues……

Total Quality Management - TQM

Standards in Actionwww.bsieducation.org/standardsinaction

Total Quality Management

• TQM is a philosophy which applies equally to all parts of the organization.

• TQM can be viewed as an extension of the traditional approach to quality.

• TQM places the customer at the forefront of quality decision making.

• Greater emphasis on the roles and responsibilities of every member of staff within an organization to influence quality.

• All staff are empowered.

Page 4: Total Quality Management - TQM Standards in Action  Total Quality Management - TQM The quality journey continues……

Total Quality Management - TQM

Standards in Actionwww.bsieducation.org/standardsinaction

Total Quality ManagementDoing things right…..

….FIRST time.

Internetix (2005)

Page 5: Total Quality Management - TQM Standards in Action  Total Quality Management - TQM The quality journey continues……

Total Quality Management - TQM

Standards in Actionwww.bsieducation.org/standardsinaction

British Standards on TQMBS 7850-1:1992• Total quality management.

Guide to management principles.

BS 7850-2:1994,

ISO 9004-4:1993• Total quality management. Guidelines for quality

improvement.

Page 6: Total Quality Management - TQM Standards in Action  Total Quality Management - TQM The quality journey continues……

Total Quality Management - TQM

Standards in Actionwww.bsieducation.org/standardsinaction

Elements of TQM• Leadership

– Top management vision, planning and support.

• Employee involvement– All employees assume responsibility for the quality of their work.

• Product/Process Excellence– Involves the process for continuous improvement.

Page 7: Total Quality Management - TQM Standards in Action  Total Quality Management - TQM The quality journey continues……

Total Quality Management - TQM

Standards in Actionwww.bsieducation.org/standardsinaction

Elements of TQM• 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.

Page 8: Total Quality Management - TQM Standards in Action  Total Quality Management - TQM The quality journey continues……

Total Quality Management - TQM

Standards in Actionwww.bsieducation.org/standardsinaction

A fundamental concept of TQM from BS 7850 - a ‘Process’

• “A set of inter-related resources and activities which transform inputs into outputs.” (ISO 8402).

• “Any activity that accepts inputs, adds values to these inputs for customers, and produces outputs for these customers. The customers may be either internal or external to the organization.” (BS 7850)

Page 9: Total Quality Management - TQM Standards in Action  Total Quality Management - TQM The quality journey continues……

Total Quality Management - TQM

Standards in Actionwww.bsieducation.org/standardsinaction

Controls

Process

OutputsInputs

Resources

"The Simple Process"

(Source: BS 7850: 1992, “Total Quality Management”)

Page 10: Total Quality Management - TQM Standards in Action  Total Quality Management - TQM The quality journey continues……

Total Quality Management - TQM

Standards in Actionwww.bsieducation.org/standardsinaction

Changing Role of the Process Owner

As customer

Process owner

As customerAs supplier

Process owner

As supplier

Process 1

Process 1

InputOutput

Output to customer

Input from supplier

(Source: BS 7850: 1992, “Total Quality Management”)

Page 11: Total Quality Management - TQM Standards in Action  Total Quality Management - TQM The quality journey continues……

Total Quality Management - TQM

Standards in Actionwww.bsieducation.org/standardsinaction

TQM & organizational Cultural ChangeTraditional Approach

Lack of communication

Control of staff

Inspection & fire fighting

Internal focus on rule

Stability seeking

Adversarial relations

Allocating blame

TQM

Open communications

Empowerment

Prevention

External focus on customer

Continuous improvement

Co-operative relations

Solving problems at their roots

Page 12: Total Quality Management - TQM Standards in Action  Total Quality Management - TQM The quality journey continues……

Total Quality Management - TQM

Standards in Actionwww.bsieducation.org/standardsinaction

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Perceived quality is poor

Perceived quality is good

Expectations > perceptions

Expectations = perceptions

Expectations < perceptions

Perceived quality is governed by the gap between customers’ expectations and their perceptions of the product or service

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Source: Slack et al. 2004

Page 13: Total Quality Management - TQM Standards in Action  Total Quality Management - TQM The quality journey continues……

Total Quality Management - TQM

Standards in Actionwww.bsieducation.org/standardsinaction

Additional views of Quality in Services

• Technical Quality versus Functional Quality– Technical quality — the core element of the good or service.

– Functional quality — customer perception of how the good functions or the service is delivered.

• Expectations and Perceptions– Customers’ prior expectations (generalized and specific service

experiences) and their perception of service performance affect their satisfaction with a service.

• Satisfaction = (Perception of Performance) – (Expectation)

Page 14: Total Quality Management - TQM Standards in Action  Total Quality Management - TQM The quality journey continues……

Total Quality Management - TQM

Standards in Actionwww.bsieducation.org/standardsinaction

Customer’s expectations concerning a

product or service

Customer’s perceptions

concerning the product or service

PreviousExperience

Word of mouth communications

Image of product or service

Customer’s own specification of

quality

Management’s concept of the

product or service

organization’s specification of

quality

The actual product or serviceGap 1

Gap 2

Gap 3

Gap 4

A “Gap” model of Quality

Source: Parasuraman, Zeithman and Berry. 1985

Page 15: Total Quality Management - TQM Standards in Action  Total Quality Management - TQM The quality journey continues……

Total Quality Management - TQM

Standards in Actionwww.bsieducation.org/standardsinaction

Continuous Improvement

• Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs.

• Kaizen: Japanese word for continuous improvement.

Page 16: Total Quality Management - TQM Standards in Action  Total Quality Management - TQM The quality journey continues……

Total Quality Management - TQM

Standards in Actionwww.bsieducation.org/standardsinaction

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.

Page 17: Total Quality Management - TQM Standards in Action  Total Quality Management - TQM The quality journey continues……

Total Quality Management - TQM

Standards in Actionwww.bsieducation.org/standardsinaction

Obstacles to Implementing TQM

• Lack of a company-wide definition of quality.• Lack of a formalized strategic plan for change.• Lack of a customer focus.• Poor inter-organizational communication.• Lack of real employee empowerment.• Lack of employee trust in senior management.• View of the quality program as a quick fix.• Drive for short-term financial results.• Politics and turf issues.

Page 18: Total Quality Management - TQM Standards in Action  Total Quality Management - TQM The quality journey continues……

Total Quality Management - TQM

Standards in Actionwww.bsieducation.org/standardsinaction

Some criticisms of TQM

1. Blind pursuit of TQM programs

2. Programs may not be linked to strategies

3. Quality-related decisions may not be tied to market performance

4. Failure to carefully plan a program

Page 19: Total Quality Management - TQM Standards in Action  Total Quality Management - TQM The quality journey continues……

Total Quality Management - TQM

Standards in Actionwww.bsieducation.org/standardsinaction

PDCA Cycle repeated to create continuous improvement

Time

Per

form

ance

“Continuous”improvement

Plan

Do

Check

Act

Page 20: Total Quality Management - TQM Standards in Action  Total Quality Management - TQM The quality journey continues……

Total Quality Management - TQM

Standards in Actionwww.bsieducation.org/standardsinaction

Recognizing and rewarding Quality• Promotion of high quality goods and services

–Malcolm Baldrige National Quality Award (MBNQA) (United States)

–Deming Prize (Japan)

–European Quality Award (European Union)

– ISO9000 certification

Page 21: Total Quality Management - TQM Standards in Action  Total Quality Management - TQM The quality journey continues……

Total Quality Management - TQM

Standards in Actionwww.bsieducation.org/standardsinaction

The integrated framework of the Baldrige Award criteria

Source: 2004 Criteria for Performance Excellence, U.S. Dept. of Commerce, Baldrige National Quality Program, National Institute of Standards and Technology, Gaithersburg, MD 20899. (www.quality.nist.gov)

Page 22: Total Quality Management - TQM Standards in Action  Total Quality Management - TQM The quality journey continues……

Total Quality Management - TQM

Standards in Actionwww.bsieducation.org/standardsinaction

Product

Continual improvement of the quality management systemContinual improvement of the quality management system

Customers(and otherinterested parties)

Requirements

Managementresponsibility

Resourcemanagement

Measurement, analysis and improvement

Productrealisation

Output

Satisfaction

Input

Source: BS EN ISO 9001:2000

Key: Value adding activity information flow

Customers(and otherinterested parties)

Page 23: Total Quality Management - TQM Standards in Action  Total Quality Management - TQM The quality journey continues……

Total Quality Management - TQM

Standards in Actionwww.bsieducation.org/standardsinaction

Overview of the EFQM Excellence Model

Page 24: Total Quality Management - TQM Standards in Action  Total Quality Management - TQM The quality journey continues……

Total Quality Management - TQM

Standards in Actionwww.bsieducation.org/standardsinaction

Quality Award common elements

• All take holistic approach• Customers/people• Measurable characteristics• Visible• Basis taken from TQM

Page 25: Total Quality Management - TQM Standards in Action  Total Quality Management - TQM The quality journey continues……

Total Quality Management - TQM

Standards in Actionwww.bsieducation.org/standardsinaction

Summary

• TQM – a way of working• Involves everyone• High prominence on ‘customer’• Awards based upon TQM