Introduction to Quality and Total Quality Management (TQM)

Lecture # 1
By Syed Shahwar Hasan

Definitions (Quality)
ISO 9000:2000 Quality is the degree to which a set of inherent characteristics fullfils requirements. Quantified Q=P/E P-Performance E-Expectations Joseph M. Juran Quality is fitness for use or purpose

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Philips B Crosby
Quality is Conformance to requirements

W. Edwards Deming
A predictable degree of uniformity and dependability at low cost and suited to market

Dimensions of Quality
ProductPerformance 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

Dimensions of Quality
Durability Useful life ,include repair. Service Resolution of problems, ease of repair. Response Human relations with Customers. Aesthetics Sensory Features. Reputation Past performance, Company Image.

Quality Cost
Prevention Cost Planning, Document, Control, Training Appraisal Cost Inspection & Tests, Installation, Calibration, M/c Depreciation, Reports & Rejects. Internal Failure Cost Scraps, Repair Rework, Design Changes, Defect Failure Analysis, Retests & ReInspection, Downgrading, Down Time. External Failure Cost Complaints, Goodwill, Failures, Services & Replacement, Guarantee & Warranty, Compensation, Recall, Loss of Sales, Seconds Sales.

Economics of Quality of Conformance

Total Cost Prevention & Appraisal Cost

Optimum Total Cost

Internal & External Failure Cost

Obstacles in Quality
Top management commitment Changing Organization Culture Improper planning Continuous Training & Education

Obstacles in Quality
Organization Structure & Departments Datas & Facts For Effective Decisions Internal & External Customers-Dissatisfaction Empowerment & Teamwork Continuous Improvement

Benefits of Quality
Improved Quality Employee Participation Team Work Internal & External Customer Satisfaction Productivity ,Communication Profitability & Market Share

Total Quality Management

Introduction (TQM)
Total Made up of the whole(or) Complete. Quality Degree of Excellence a product or service
provides to the customer in present and future.

Management Act , art, or manner of handling ,

controlling, directing, etc.

TQM is the art of managing the whole system to

achieve excellence.

Definition
Total Quality Management (TQM) is a management strategy aimed at embedding awareness of quality in all organizational processes.

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Total quality management is a systemic approach to productivity improvement using qualitative and quantitative methods and involving all stakeholders to continuously improve the quality of all products and services.

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"TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society."
Definition TQM is composed of three paradigms: Total: Organization wide Quality: With its usual Definitions, with all its complexities (External Definition) Management: The system of managing with steps like Plan, Organize, Control, Lead, Staff, etc.

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Explanation TQM requires that the company maintain this quality standard in all aspects of its business. This requires ensuring that things are done right the first time and that defects and waste are eliminated from operations.

Various Prospects of TQM

TQM is the set of Management process and systems that create delighted customers through Empowered Employees, Leading to higher revenues & lower cost. THE JURAN INSTITUTE, Inc. TQM is the process of individual & organizational development the purpose of which is to increase the level of satisfaction of all the stakeholders Pike, R J Barnes TQM IS PURE PRAGMATISM (HUTCHINS, ACHIEVE TOTAL QUALITY,1992) TQM IS NOT A DESTINATION BUT A JOURNEY TOWARDS IMPROVEMENT (HUNT, MANAGING FOR QUALITY,1991)

Evolution of quality Era

Evolution
TQM TQC & CWQC TQC SQC Inspection Foreman Craftsman

Years
1900 1920 1940 1960 1980 1990 2000

WHY TQM?

B/C IT IS FOR BENEFIT OF ALL STAKEHOLDERS

INTERNAL SATKEHOLDER

EXTERNAL STAKEHOLDER

Important TQM Decision

What is the purpose of our organization? What is our vision? What is our mission statement? What are our overall organizational objectives? What values do we hold dear to us as an organization?

Organizational Structure
CEO
Middle Management

Customer Line Employee Supervisor Middle Management CEO

Supervisor Line Employee Customer

Traditional base Management

TQM base Management

Basic Principles of TQM

Leadership Commitment Total Involvement by employee empowerment & Mgmt. Continuous Improvement. Total Customer Satisfaction. Training & Education. Ownership. Reward & recognition. Co-operation & Team Work. Prevention of Error.

Components of TQM
1) Price Reduction 2) Customer Satisfaction 3) Involvement of Everyone 4) Continuous Quality Improvement 5) Leadership
(ROVER GROUP)

TQM Implementation Process

1) Understanding Quality 2) Commitment & Leadership 3) Design For Quality 4) Planning For Quality 5) System For Quality 6) Measurement 7) Cost of Quality 8) Tools & Techniques For Improvement 9) Capability & Control 10) Organization For Quality 11) Communication For Quality 12) Team Work For Culture Change 13) Training For Quality 14) Implementation For TQM

Who determines quality?

THE CUSTOMER
If the customer does not perceive you as offering quality service you are not.

Customer Focus
CUSTMER IS GOD
(CHINESE SAYING)

PERCEPTION IS TRUTH

INVOLVEMENT OF EVERYONE

Continuous Improvement
Improve each and everyday - Do not focus on problems, focus on improvements. IF YOURE NOT PART OF THE SOLUTION, YOURE PART OF THE PROBLEM.

Continuous Improvement
Customers are not interested in excuses, theyre interested in results. Be proactive - because if you dont someone else will. Ishikawa Says The organization which does not make a change in the 06 months is a dead organizations

Continuous Improvement
KAIZEN JAPANESE SYNONYM

THE FAMOUS HADITH HE WAS DESTROYED WHOSE PAST WAS NOT BETTER THAN HIS YESTERDAY

Leadership
NO EFFORT FOR QUALITY IMPROVEMENT CAN SUCCEED WITHOUT COMMITMENT OF TOP MANAGEMENT A NATION WITHOUT LEADERSHIP IS THE HERD OF SWINE EINSTEIN

Evolution of quality Means & Focus

1975 1980 1985 1990 1995 2000

Quality Circle Quality of Work life

Productivity

Quality

Total Quality

TQC/TQM

Employee Involvement Self Directed Employees Teams Empowerment

Self Directed/Managed Teams

Operation

Customers

Innovations

Kanos Model

Umbrella Model of TQM

JIT SPC QA Kaizen

Quality Assurance ProblemSolving tools

Customer Satisfaction

Taguchi Methods

Basic Approach
A committed and involved management to provide long-term top - to - bottom organizational support. An unwavering focus on the customer, both internally and externally. Effective involvement and utilization of the entire work force.

Basic Approach
Continuous improvement of the business and production process. Treating supplier as partners. Establish performance measures for the processes.

New and Old Cultures

Quality Element
DefinitionPriorities DecisionsEmphasis-

OLD
Product Service &Cost Short Detection

TQM
Customer Quality Long Prevention

New and Old Cultures

Quality Element
ErrorsResponsibilityProblem Solving ProcurementManagers Role-

OLD
Operations QC Managers Price Plan Assign Enforce

TQM
System Every Body Teams Partners/JIT Delegate Coach Mentor

Real Life Examples

TQM has being implemented in Toyota TVS Group. Boeing Aircraft Reliance Tata ITI

Gurus of TQM
Walter.A.Shewhart -TQC &PDSA W.Edwards Deming- 14 Points & PDCA Joseph.M.Juran-Jurans Trilogy A.Feiganbaum-Customer requirement,CWQC,Employee Involvement, TQC.

Gurus of TQM
Kaoru Ishikawa-Disciple of Juran & Feigenbaum. TQC in Japan, SPC, Cause &Effect Diagram,QC. Philips.B.Crosby. Four AbsolutesQuality-Req, Prevention of NC,Zero Defects & Measure of NC. Taguchi.G-Loss Function.