Total Quality Management

Outline

 Evolution of Quality Management

 What does TQM mean?
 Basic Concepts of TQM
 What’s the goal of TQM?
 Total Quality Management and Continuous improvement
 Continuous Improvement versus Traditional Approach
 The advantages of total quality management (TQM)
Evolution of Quality Management
Salvage, sorting, grading, blending, corrective actions,
Inspection identify sources of non-conformance

Develop quality manual, process performance data, self-

Quality inspection, product testing, basic quality planning, use of
Control basic statistics, paperwork control.

Quality systems development, advanced quality planning,

Quality comprehensive quality manuals, use of quality costs,
Assurance involvement of non-production operations, failure mode and
effects analysis, SPC.

Policy deployment, involve supplier & customers, involve all

TQM operations, process management, performance
measurement, teamwork, employee involvement.
What does TQM mean?

TQM is the integration of all functions and

processes within an organization in order
to achieve continuous improvement of
the quality of goods and services.

“The goal is customer satisfaction”

What does TQM mean?

 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 whole to

achieve excellence.
Basic Concepts of TQM
 Customer Focus

 Continuous Process Improvement - Kaizen

 Employee Empowerment – Everyone is responsible for

quality

 Quality is free - focus on defect prevention rather than defect

detection for it is always cheaper to do it right the first time

 Benchmarking – Legally stealing other people’s ideas

 Customer-Supplier Partnerships

 Management by fact. By numbers. By data – Balanced

scoreboard (financial, customer, process, learning)
What’s the goal of TQM?

“Do the right things right

the first time, every
time.”
Total Quality Management and Continuous improvement

 TQM is the management process used to make

continuous improvements to all functions.
 TQM represents an ongoing, continuous commitment
to improvement.
 The foundation of total quality is a management
philosophy that supports meeting customer
requirements through continuous improvement.
Continuous Improvement versus Traditional Approach
Traditional Approach
 Market-share focus
 Individuals
 Focus on ‘who” and “why”
 Short-term focus
 Status quo focus
 Product focus
 Innovation
 Fire fighting
Continuous Improvement
 Customer focus
 Cross-functional teams
 Focus on “what” and “how”
 Long-term focus
 Continuous improvement
 Process improvement focus
 Incremental improvements
 Problem solving
The advantages of total quality management (TQM)
 Cost reduction. When applied consistently over time, TQM can reduce
costs throughout an organization, especially in the areas of scrap, rework,
field service, and warranty cost reduction. Since these cost reductions flow
straight through to bottom-line profits, there can be a startling increase in
profitability.
 Customer satisfaction. Since the company has better products and
services, and its interactions with customers are relatively error-free, there
should be fewer customer complaints. Fewer complaints may also mean
that the resources devoted to customer service can be reduced. A higher
level of customer satisfaction may also lead to increased market share.
 Defect reduction. TQM has a strong emphasis on improving quality within
a process, rather than inspecting quality into a process. This not only
reduces the time needed to fix errors, but makes it less necessary to
employ a team of quality assurance personnel.
Ways of Improving Quality

 Plan-Do-Study-Act Cycle (PDSA)

Also called the Deming Wheel

Circular, never ending problem solving process

 Seven Tools of Quality Control

Tools typically taught to problem solving teams

PDSA Details
 Plan
 Evaluate current process
 Collect procedures, data, identify problems
 Develop an improvement plan, performance objectives
 Do
 Implement the plan – trial basis
 Study
 Collect data and evaluate against objectives
 Act
 Communicate the results from trial
 If successful, implement new process

 Cycle is repeated
 After act phase, start planning and repeat process
Seven Basic Quality Tools To improve Process Quality

1. Cause-and-Effect Diagrams
2. Flowcharts
3. Checklists
4. Control Charts
5. Scatter Diagrams
6. Pareto Analysis
7. Histograms
Cause-and-Effect Diagrams
 Called Fishbone Diagram
 Used to identify the root causes of a problem
Example: Delayed Flight Departures
Equipment Personnel

Gate agents cannot process passengers quickly enough

Too few agents
Aircraft late to gate Agents undertrained
Late arrival Agents undermotivated
Gate occupied Agents arrive at gate late
Other Mechanical failures Late cabin cleaners
late pushback tug Late or unavailable cabin crews
Weather
Air traffic late or unavailable cockpit crews
Delayed
Flight
poor announcement of departures Departures
weight an balance sheet late

Delayed checkin procedure

Late baggage to aircraft Confused seat selection
Late fuel Passengers bypass checkin counter
Late food service Checking oversize baggage
Issuance of boarding pass

Acceptance of late passengers

cutoff too close to departure time
Desire to protect late passengers
Material Desire to help company’s income
Poor gate locations

Procedure
Flowcharts

 Used to document the detailed steps in a process

 Often the first step in Process Re-Engineering
Example: Process at Departure Gate
Passenger
Arrives

Ticket No Wait for

For Flight Appropriate
Flight

Yes

Check Yes Excess

Luggage Carry-on

No

Issue
Boarding Pass

Passenger
Boards Airplane
Checklist
 Simple data check-off sheet designed to identify type of quality
problems at each work station; per shift, per machine, per operator.
 Easy way to count frequency of occurrence by front line workers.
Control Charts
 Important tool used in Statistical Process Control
 The UCL and LCL are calculated limits used to show when process is in
or out of control
 Statistical tools used to determine if the variation in results is caused
by common or special events.
Scatter Diagrams
 A graph that shows how two variables are related to one another
 Data can be used in a regression analysis to establish equation for the
relationship
 Pareto Analysis
 Organize data on a histogram based on frequency from most prevalent
to least
 Named after the 19th century Italian economist
 Often called the 80-20 Rule
 Principle is that quality problems are the result of only a few problems
e.g. 80% of the problems caused by 20% of causes
47 1
90 54 4 120%
80 61 17 100%
70 68 12
60 75 14 80%
50
82 19 60% Series2
40
30 89 18 40% Series1
20 96 11
20%
10 103 3
0 110 1 0%
1 2 3 4 5 6 7
85
Histograms
 A histogram is a display of statistical information that uses rectangles
to show the frequency of data items in successive numerical intervals
of equal size
 Displays whether the distribution is symmetrical (normal) or skewed .
THANK YOU