TQM

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E.H. Aghezzaf- Vakgroep Technische

Bedrijfsvoering (TW18V)
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Total Quality Management Total Quality Management
Steps Towards Continuous
Improvement
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Total Quality Management Total Quality Management
Total Quality Management is a comprehensive
managerial philosophy and a collection of
approachesand toolsfor its implementation.
The term Total Quality Management conveys de
company-wide effort through full involvement of
the entire workforce and focus on continuous
improvement that companies use to achieve
customer satisfaction.
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Goals of TQM Goals of TQM
Satisfy the requirementsand needsof customers.
Prevent poor quality rather than correcting
problems after fact.
Develop an attitude of continuous improvement
in operations.
Understand the value of measuring performance
in identifying opportunities and maintaining
improvements.
Identify and eliminate chronic sources of
inefficiencies and costs.
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Foundations of TQM, Foundations of TQM,
the Principles the Principles
Customer Focus:
Involves collection and analysis of customer needs, and
once understood and accepted these must be met.
Continuous Improvement:
Involves work on the process to reduce the variability of
output and improve the reliability of the process.
Total Involvement (Participation & Teamwork):
Begins with leadership of senior management, then
employees empowerment, and includes suppliers.
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Foundations of TQM, Foundations of TQM,
I nfrastructures, Practices, and I nfrastructures, Practices, and
Tools Tools
An integrated organizational infrastructure,
A set of management practices,
A wide variety of tools and techniques:
Leadership,
Strategic Planning,
Data and Information Management,
Process Management,
Supplier Management,
Human Resources Management,
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Towards an I ntegrated Towards an I ntegrated
Production System Production System
Quality assured through inspection:
Inspect incoming materials,
Inspect outgoing products,
Quality is the responsibility of QA
department,
Quality designed through prevention:
Integrated customer-supplier chain,
Improve quality through the system,
Quality is responsibility of everyone,
Traditional Method
Product Management
Modern Method
Process Management
Work Process
I
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I
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p
e
c
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input output
Waste Waste
Work
Process
People
Processes
input input
Information
Information
Suppliers Customers Suppliers Customers
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Measurement Dimensions Measurement Dimensions
Customer
Shareholder
Employee
Community
Customers
Bosses
Owners
Financial Analysts
Employees
Government agents
Social services
Customer satisfaction,
Output characteristics defined
by customers,
Financial indicators,
Cost, sales, and profits
Cost of quality
Goals and objectives defined
by management,
Employee satisfaction,
Factors contributing to job
satisfaction,
Regulatory compliance,
Factors impacting on society,
If this is then this who and these
your focus... you need to please are key Measures
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The TQM System The TQM System
Leadership
Education and Training Supportive Structures
Rewards and recognition Communication
Measurement
Total
Involvement
TQM
Continuous Improvement
Customer
Focus
Process
Improvement
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Leadership
Measurement
Total
Involvement
TQM
Customer
Focus
Process
Improvement
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Customer Focus Customer Focus - -Leading Practices Leading Practices- -
Define, identify, and segment key customer groups
and markets,
Understand customer needs and expectations (the
voice of the customer),
Understand linkages between the voice of the
customer and design, production, and delivery,
Build relationships through commitments, provide
accessibility and information, set service standards,
and follow-up on transactions,
Develop and implement effective complaint
management processes,
Measure customer satisfaction for improvement,
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I dentifying Customers I dentifying Customers
Key customer groups:
Organization level:
Consumers,
External customers,
Employees,
Society
Process level:
Internal customer units or groups,
Performer level:
Individual internal customers,
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Understanding Customer Understanding Customer
Expectations Expectations
Guidelines:
What are the product and service characteristics
do customers want?
What level of performance is required to satisfy
customers expectations?
What is the relative importance of these
characteristics?
How satisfied are customers with performance
at the current level?
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Implicit, Explicit, and Latent Customer Requirements
Options and trade-offs
available for selection by
customers
Value-added
characteristics and features that
customer did not expect
Level 3
Minimum performance
levels always assumed
present
Specifications
and
Requirements
Base
Expectations
Explicit
Implicit
Latent
Delight!
Level 2
Level 1
Ref- TQM, A.R. Tenner & I.J.DeToro
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measurement and feedback
Customer needs and expectations
(Expected quality)
Identification of customer needs
Translation into product/service specifications
(Design quality)
Output (Actual quality)
Customer perceptions (Perceived quality)
PERCEIVED QUALITY =ACTUAL - EXPECTED
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Linking Voice of Customer to Linking Voice of Customer to
Design, Production, and Delivery Design, Production, and Delivery
Quality Function Deployment HOQ
Technical requirements
Voice of
the
customer
Relationship
matrix
Technical requirement
priorities
Customer
requirement
priorities
Competitive
evaluation
Interrelationships
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The Quality Function Deployment The Quality Function Deployment
Process Process
Technical
requirements
Component
characteristics
Process
operations
Quality plan
Linking Voice of Customer to Linking Voice of Customer to
Design, Production, and Delivery Design, Production, and Delivery
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Build Customer Relationships: Build Customer Relationships:
Gathering I nformation Gathering I nformation
Comment cards and formal surveys: These approaches
concentrate on measuring customer satisfaction.
Focus groups: A panel of individuals who answer
questions about a companys products and services.
Direct customer contacts: Hearing complaints directly by
top-executives is an eye-opening experience.
Field intelligence: Conversing with customers and
observing their behavior helps in gaining useful
information.
Study complaints: Helps in understanding de gaps between
expectations and performance
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Customer Relationships Customer Relationships
Management Management
Accessibility and commitments,
Selecting and developing customer contact
employees through empowerment and
training,
Customer focused service based on relevant
customer contact requirements,
Effective complaint management,
Strategic partnerships and alliances,
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Effective Complaint Management Effective Complaint Management
Processes Processes
Approach
Level 3
Personal interviews, Focus Groups
Designed Suveys
Benchmarking
Reactive Proactive
High
Low
Maximum Level
of
Undestanding
Level 2
Service Desk Networks
Hot Line Sales Data Analysis
Unstructured Surveys Customer Representatives
Level 1
Unsolicited Complaints
Full
Understanding
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Measuring Customer Measuring Customer
Satisfaction Satisfaction
Discover customer perceptions of companys
performance through identification of appropriate
quality dimensions and measurement schemes,
Compare companys performance relative to
leading competitors,
Measure potential and former customers and
identify areas for improvement,
Track trends to determine if changes result in
improvements,
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Product and service
quality dimensions
Access
Communication
Competence
Courtesy
Credibility
Reliability
Responsiveness
Word of
Mouth
Personal
Needs
Past
Experience
Expected
Performance
External
Communication
to Customers
Perceived
Product/Service
Quality
Quality
Performance
Gap
Perceived
Performance
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Word-of-Mouth
communications
Personal Needs Past Experience
Expected Performance
Product/Service Quality Specifications
Management Perceptions of Customer Expectations
External
Communication
to Customers
Perceived Performance
Delivery Performance
Customer
Provider
Gap 1
Gap 2
Gap 3
Gap 4
Gap 5
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Leadership
Measurement
Total
Involvement
TQM
Customer
Focus
Process
Improvement
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Scope of Process Management Scope of Process Management Scope of Process Management
Process Management: involves planning
and administering the activities design,
control, and improvement necessary to
achieve a high level of performance,
There are four types of key processes:
Design processes,
Production/delivery processes,
Support processes,
Supplier processes,
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Translate customer requirements and internal
capabilities into product and service design
requirements early in the process,
Ensure that quality is built into products and
services and use appropriate tools during
development,
Manage product development process to enhance
communication, reduce time, and ensure quality,
Define, document, and manage important
production/delivery and support processes,
Process Management Process Management - -Leading Leading
Practices Practices- -
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Define performance requirements for suppliers and
ensure that they are met,
Control the quality and operational performance of
key processes and use systematic methods to
identify variations, determine root causes, and
make corrections,
Continuously improve processes to achieve better
quality, cycle time, and overall operational
performance,
Innovate to achieve breakthrough performance
using benchmarking and reengineering,
Process Management Process Management - -Leading Leading
Practices Practices- -
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Process I mprovement Steps Process I mprovement Steps
Defining key processes: Identify the processes that
have the greatest impact on customer-driven
performance standards .
Planning: Establish a structured and disciplined
approach to define and document the major
components in the process and to understand their
interrelationships.
Control: Assure effectiveness so that the output is
predictable and consistent with the customers
expectations.
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Process I mprovement Steps Process I mprovement Steps
Measurement: Map performance attributes to
customers requirements and establish criteria for
accuracy, precision, and frequency of data acquisition.
Improvement: Increase effectiveness of the process
by permanently embedding identified improvements.
Optimization: Increase efficiency and productivity of
the key processes by optimizing the resources.
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I dentifying Key Processes I dentifying Key Processes
Developing &
Understanding
Markets
Developing &
Designing
(R&D - Engineering)
Marketing & Sales
Producing
Products & Services
Distributing &
Delivering
Installation & Services
(Maintenance + Repair)
Attracting
Developing and
Retaining People
Legal Services
Finance &
Accounting
Management
Information
Systems
Business
Planning
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Planning and Documenting a Planning and Documenting a
Process Process - -Flow Diagrams Flow Diagrams- -
* = Points critical to the success of the service
= Points at which failure is most often experienced

Customer
drops off
car
Mechanic
makes
diagnosis*
Discuss
needed
work with
customer*
Customer
departs
with car
Collect
payment
Notify
customer
Check
parts
availability
Order
parts
Repair complete
Repair not authorized
Parts
available
Service visible to customer
Repair
authorized
Service not visible to customer
Perform
work
Inspect/
test and
repair
Perform
corrected
work
Corrective
work
necessary
Parts not
available
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Process: Emergency room admission
Subject: Ankle injury patient
Beginning: Enter emergency room
Ending: Leave hospital
1 0.50 15 X Enter emergency room, approach patient window,
2 10.0 - X Sit down and fill out patient history,
3 0.75 40 X Nurse escorts patient to ER triage room,
4 3.00 - X Nurse inspects injury,
5 0.75 40 X Return to waiting room,
6 1.00 - X Wait for available bed,
7 1.00 60 X Go to ER bed,
8 4.00 - X Wait for doctor,
9 5.00 - X Doctor inspects injury and questions patient,
10 2.00 200 X Nurse takes patient to radiology,
11 3.00 - X Technician x-rays patient,
12 2.00 200 X Return to bed in ER,
13 3.00 - X Wait for doctor to return,
14 2.00 - X Doctor provides diagnosis and advice,
15 1.00 60 X Return to emergency entrance area,
16 4.00 - X Check out,
17 2.00 180 X Walk to pharmacy,
18 4.00 - X Pick up prescription,
19 1.00 20 X Leave the building,
Step
no.
Time
(min)
Distance
(ft)
Summary
Number
of steps
Activity
Time
(min)
Distance
(ft)
Transport 9 11 815
Operation 5 23
Inspect 2 8
Store
Delay 3 8
Step description
Insert Step
Append Step
Remove Step
Planning and Documenting a Planning and Documenting a
Process Process - -Process Charts Process Charts- -
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Evaluating a Process
-Diagnosis-
Are steps arranged in a logical sequence?
Do all steps add value? Can some be eliminated
or added? Can some be combined? Should some
be reordered?
Are capacities in balance? What skills, equipment,
and tools are required at each step?
At which points might errors occur and how can
they be corrected?
At which points should quality be measured?
What procedures should employees follow where
customer interaction occurs?
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Controlling a Process Controlling Controlling a a Process Process
Process control consists in continually
evaluating performance and taking corrective
action when necessary,
Components of control systems:
Standards and goals,
Means of measuring accomplishments,
Comparison of the results with the standard as a
basis for corrective action,
A well-controlled system is predictable,
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Generic Quality Control System Generic Quality Control System
Inputs
(Materials)
Processes
Inspection &
Measurement
Identify Causes
Comparison
with
Standards
Comparison
with
Standards
Comparison
with
Standards
Inspection &
Measurement
Inspection &
Measurement
Output
(Products)
Acceptable
Quality
Acceptable
Quality
Acceptable
Quality
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Yes
No No No
Yes Yes
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What was supposed to happen? What actually happened?
Why is there a difference? What can we learn?
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Process I mprovement Process I mprovement
Productivity improvement,
Work simplification,
Planned methods change,
Kaizen,
Stretch goals,
Benchmarking,
Reengineering,
Traditional Industrial
Engineering
New approaches from the
total quality movement
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Process I mprovement Process I mprovement
Supplier
Management &
development
Customer
Identify Quality Problems
Categorize &
Set priorities
Select a Quality Problem
Analyze the Quality
Problem Causes
Collect Relevante Data &
Diagnose for Causes
Confirme the Quality
Problem Causes
Develop Corrective
Actions, Solutions
& New Objectives
Remove the Quality
Problem Causes
Test,
Evaluate &
Implement Solutions
Input Out put Input Out put Input Out put
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The Quality Circle Process The Quality Circle Process
Organization
8-10 members
Same area
Moderator
Presentation
Implementation
monitoring
Solution
Problem results
Problem analysis
Cause & effect
Data collection &
analysis
Problem ID
List alternatives
Consensus
Brainstorming
Training
Group processes
Data collection
Problem analysis
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Tools for Process I mprovement Tools for Process I mprovement
Histogram
0
5
10
15
20
1 2 6 13 10 16 19 17 12 16 20 17 13 5 6 2 1
N
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80
60
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Defect type
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Headliner Defects
Defect type Tally Total
A. Tears in fabric //// 4
B. Discolored fabric /// 3
C. Broken fiber board //// //// //// ////
//// //// //// / 36
D. Ragged edges //// // 7
Total 50
Pareto Chart
Checklists
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Tools for Process I mprovement Tools for Process I mprovement
Parameter
values
Characteristics
values
Scatter Diagram
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First Second Third
Shift
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15
10
05
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Control Charts Bar Chart
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Tools for I mproving Quality Tools for I mproving Quality
Cause-and-Effect Analysis
Quality
Problem
Machines Measurement Human
Process Environment Materials
Faulty testing equipment
Incorrect specifications
Improper methods
Poor supervision
Lack of concentration
Inadequate training
Out of adjustment
Tooling problems
Old or Worn
Defective from vendor
Not to specifications
Material-
handling problems
Deficiencies
in product design
Ineffective quality
management
Poor process
design
Inaccurate
temperature
control
Dust and
Dirt
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Performance Measurement Performance Measurement
Performance Parameters
Operations that Control Products or Services
Produced and delivered
Customer Satisfaction
Degree to which Products or Services
are Perceived to Meet Expectations
Requirements
Features, Values
and Characteristics
Desired by Cusmoters
Capability
Features, Values
and Characteristics
Delivered by Process
Suppliers Customers Work Groups
Process
Output
Outcome
Work
levels levels
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Process Measurement Process Measurement
Flexibility Measures Flexibility Measures
Degree of empowerment,
Percentage of events in which
customers expectations are
exceeded,
Degree of difficulty to respond
to special requests,
Degree of authority people
have to continuously improve
the process,
Amount of time it takes to
adjust the process to handle
new requirements,
Number of pre-planned
process scenarios,
Effectiveness Measures Effectiveness Measures
Product Appearance,
Performance,
Reliability,
Timeliness,
Usability,
Serviceability,
Durability,
Cost,
Responsiveness,
Dependability,
Accuracy,
Adaptability,
Efficiency Measures Efficiency Measures
Process Cycle Time,
Resources used per unit of
output,
Value Added cost per unit of
output,
Ratio of value added to non-
value added time,
Cost of poor quality,
Wait and delay time per unit
of output,
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Breakthrough I mprovement Breakthrough I mprovement
Occasional change resulting from innovative
and creative thinking,
Benchmarking: The search of industry best
practices that lead to superior performance,
Competitive benchmarking,
Process benchmarking,
Strategic benchmarking,
Reengineering: Radical redesign of processes,
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Breakthrough I mprovement Breakthrough I mprovement
E
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Ongoing Periodic Occasional
Application Frequency
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Leadership
Measurement
Total
Involvement
TQM
Customer
Focus
Process
Improvement
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Total I nvolvement Total I nvolvement
Human Resources,
Leadership,
Empowerment,
Employee Involvement,
Teamwork and work systems,
Suppliers Quality,
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Leadership Leadership
The ability to positively influence people
and systems to have a meaningful impact
and achieve results,
Leadership System:
Refers to how decisions are made,
communicated, and carried out at all levels;
mechanisms for leadership development, self-
examination, and improvement,
Effectiveness of leadership system depends in
part on its organizational structure,
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Leadership Leading Practices Leadership Leadership Leading Practices Leading Practices
Create a customer-focused strategic vision and
clear quality values,
Create and sustain leadership system and
environment for empowerment, innovation, and
organizational learning,
Set high expectations and demonstrate personal
commitment and involvement in quality,
Integrate quality values into daily leadership and
management and communicate extensively,
Integrate public responsibilities and community
support into business practices,
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Leadership Theories Leadership Theories
Trait approach,
Behavioral approach,
Contingency approach,
Role approach,
Emerging theories:
Attributional theory,
Transactional theory,
Transformational leadership theory,
Substitutes for leadership theory,
Emotional intelligence theory,
Leading
Vision
Align
Empower
coach
care
Managing
Plan
Organize
Direct
Coordinate
Control
Getting
Results
Improving
Systems
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Leadership Leadership
Foundation
(Direction)
Commitment
Allocate resources
consistent with leadership
framework
Style
Role model- how we will
behave
Objectives
What is to be acheived in
scheduled period of time
Goal
What is to be acheived
through sustained efforts
over long period of time
Mission
The purpose or the reason
for the existance of the
business
Methodology
How objectives will be
acheived through strategy
and plans
Politicy
Statement of principles that
guide how all business
activities are to function
Values
Define how we will behave
by delineating shared
beliefs
Vision
What we will look like in sucessful future
state
Implement
(Action)
Specific Intent
Broad Intent
Do the right things
(What to do)
Doing things right
(How to do it)
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Human Resource Paradigms Human Resource Paradigms
Empowerment Empowerment
Old Thinking:
People are part of the process,
Process requires external control,
Managers have to control what people do,
New Thinking:
People design and improve processes,
Workers who run the process control it,
Managers must obtain commitment of workers,
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Leading Practices Leading Practices
Promote cooperation and collaboration through
teamwork,
Empower individuals and teams to make decisions
that affect quality and customer satisfaction,
Make extensive investments in training and
education,
Maintain a work environment conducive to the
well-being and growth of all employees,
Monitor extent and effectiveness of HR practices
and measure employee satisfaction,
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Trust
Empowerment in three
Dimensions
- Capability
- Alignment
- Trust
Build Capability
I ndividuals System
- Ability - Materials
- Skills - Methods
- Knowledge - Machines
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Build Alignment
1. Teach your mission, vision, values, and
objectives,
2. Build everyone's commitment to them,
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Trust
Without alignment and trust the
organization will suffer with paralisis,
bureaucracy, or chaos.
Build Mutual Trust
Employees feel that:
1. They can trust their managers,
2. Thier managers trust them,
Bureaucracy
Paralysis
Empowerment
Chaos
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Measuring Employee Measuring Employee
Satisfaction and Effectiveness Satisfaction and Effectiveness
Satisfaction,
Quality of work-life, training, teamwork,
leadership, communications, compensation,
benefits, internal suppliers and customers,
Effectiveness,
Team and individual behavior, cost, quality,
and productivity improvements, employee
turnover; suggestions, training effectiveness,
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Supplier and Partnering
Processes
Supplier and Partnering Supplier and Partnering
Processes Processes
Recognize the strategic importance of
suppliers,
Develop win-win relationships through
strong partnerships,
Establish trust through openness and
honesty,
Reduce number of suppliers and integrate
the important once and eliminate the others,
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Suppliers Quality Suppliers Quality
Certified supplier one that, after
extensive investigation, is found to supply
material of such quality that routine testing
on each lot received is unnecessary,
Benefits of Effective Supplier Process
Management:
Reduced costs and faster time to market,
Increased access to technology,
Reduced supplier risk and improved quality,
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Strategies for quality Strategies for quality
Customer
Focus
Process
Improvement
Total
Involvement
Continuous
Improvement
Strategies and Plans
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Linking the Strategic Planning To Linking the Strategic Planning To
Process Management Process Management
Desired
Business Strategy
Operations
Strategy
Desired
Capabilities
Marketing, ,
Financial Strategy
Desired Operational
Structure: Processes &
Infrastructure
Product
Attributes
Price, Time,
Quality,
Variety
Process Attributes
Cost, Time,
Quality,
Flexibility
Existing
Capabilities
Current Operational
Structure: Processes &
Infrastructure
Existing Desired
Feasible
Business Strategies
Strategy Gap?
Measures
Capability Gap?
Process Gap?
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The TQM The TQM
Strategic Model Strategic Model
Business/Activity
Mission
Vision
Values
Goals
Critical success
factors
Objectives
Competitive Analysis Strengths/Weaknesses
Assumptions
Strategies
Programs
Organization Projects Budgets/Resources
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Objective Quality Objective Quality
Top management
Consensus
Generalised Education
and training
From Problem Solving
to Process Control
Quality Management
Policies
Deployment
Integration of quality
Management
&
Business Strategies
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2
3
4
5
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Strategic Planning Strategic Planning
Guideline Guideliness
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Strategic Management
The Strategic Management is a long-term, future
oriented process of assessment, goal setting, and
decision-making that maps an explicit path between
the present and a vision of the future.
This process relies on careful consideration of an
organizations capabilities and the environment.
This process leads also to priority-based resource
allocation for achieving the organizations mission.
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Vision
A vision is an inspiring picture of a preferred
future, not bound by time. It represents global and
continuing purposes. It serves as a foundation for
strategic planning.
A vision would depict an ideal future for the
organization and the contributions that it can make
to that end.
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Goals
The general ends toward which the organization
directs its efforts.
They address the primary issues facing the
organization within broad grouping of interrelated
concerns.
They are founded on the vision and may involve
coordination among several department with
similar functions.
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Mission
The reason for an organizations existence. it
succinctly identifies what the organization does,
why, and for whom it does it.
A mission reminds everyone in the organization,
and also outside, of the unique purposes promoted
and served by the organization.
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Objectives
Objectives are clear targets for specific action.
They are more detailed than goals, they have
shorter time frames, and may state a quantity.
They are achievable, measurable, and they set the
direction for strategies.
A single goal may be subdivided into multiple
objectives.
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Strategy
Strategies are the methods to achieve goals
and objectives.
The means of transforming inputs into
outputs, and ultimately outcomes, with the
best use of resources.
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Performance Measures
Indicators of the work performed and the
results achieved. Can divided into:
Output measures
Outcomes measures
Input measures
Efficiency measures
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Output Measures
Outputs are the goods and services produced by an
organization.
Output measures are the tools, or indicators, to
count the services and goods produced by an
organization.
The number of people receiving a service, or unit
produced, or the number of services and customer
delivered are often used as measures of output.
36
71
Development Guides
Is the output reliably measurable?
Is the output measure directly related to the
organization's strategies?
Does the output measure show the quantity
of work performed?
Can the measure be stated in unit cost
terms?
Is the output measure clear?
72
Outcome Measures
Outcomes are the quantified results, or
impacts, of organization action.
Outcome measures are tools, or indicators, to
assess the actual impact of an organizations
action.
A means for quantified comparison between
the actual results and the intended result.
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73
Development Guides
Is the outcome measure directly related to the
organizations goals.
Is the outcome reliably measurable?
Does the outcome measure show what change
(difference) the organizations action will have on
the target group or problem?
Can the organization gather data for the outcome
measure without incurring excessive costs or
undertaking cumbersome procedures?
Is the outcome measure clear?
74
Output versus Outcome Measures
Percentage of high school graduates (output
measure) is not the same as the percentage of
students with a certain level of mastery of subjects
(outcome measure).
The number of patients treated and discharged
from a state mental hospital (output measure) is
not the same as the number of discharged patients
who are capable of living independently (outcome
measure).
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75
Input Measures
The resources that an organization uses to produce
products and services, including human, financial,
facility, or material resources.
Number of s expended
Kilograms of material used
Also includes measures of the scope of an
organizations operations:
Number of clients eligible for services
Number of entities subject to inspection/regulation
Number of applications or order received
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Efficiency Measures
Indicators that measure the cost, unit cost or
productivity associated with a given
outcome or output.
Average cost per client served
Average cost per inspection
Average time to process an order

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E.H. Aghezzaf- Vakgroep Technische

= Points at which failure is most often experienced

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