Total Quality Management and Continuous Improvement

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Why TQM?
Ford Motor Company had operating losses of $3.3 billion between 1980 and 1982. Xerox market share dropped from 93% in 1971 to 40% in 1981. Attention to quality was seen as a way to combat the competition.

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TQM: A Buzzword Losing Popularity

For many companies, the term TQM is associated with corporate programs (mid 1980s ~ early 1990s) aimed at implementing employee teams and statistical process control. Unfortunately, many companies were dissatisfied with the perceived results of these programs, concluding TQM does not work.

Question: Why were they dissatisfied? Were they justified?

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TQM
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.

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What does TQM mean?

Total Quality Management means that the organization's culture is defined by and supports 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 high quality products and services.

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Whats the goal of TQM?

Do the right things right the first time, every time.

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What is quality
Conformance To Specification Conformance to requirement What the coustmer thinks it is Measure of the conformance of product/service to the

coustmers needs Combination of asethetics , features and design Value for money The ability of a product to meet coustmers needs. Meetings or exceeding coustmer requirements of now and in the future
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What is quality
Fitness for use of product/service by the intended

customer. A customer's perception of the degree to which the product/service meets his/her expectations. Totality of features and characteristics of a product/service that bears on its ability ti satisfy a stated or implied need

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Another way to put it

At its simplest, TQM is all managers leading and

facilitating all contributors in everyones two main objectives:

(1) total client satisfaction through quality products and services; and (2) continuous improvements to processes, systems, people, suppliers, partners, products, and services.

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Productivity and TQM

Traditional view: Quality cannot be improved without significant losses in productivity. TQM view: Improved quality leads to improved productivity.

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Basic Tenets of TQM

1. The customer makes the ultimate

determination of quality. 2. Top management must provide leadership and support for all quality initiatives. 3. Preventing variability is the key to producing high quality. 4. Quality goals are a moving target, thereby requiring a commitment toward continuous improvement. 5. Improving quality requires the establishment of effective metrics. We must speak with data and facts not just opinions.
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The three aspects of TQM

Counting Customers Culture
Tools, techniques, and training in their use for analyzing, understanding, and solving quality problems Quality for the customer as a driving force and central concern. Shared values and beliefs, expressed by leaders, that define and support quality.
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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.

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Continuous Improvement versus Traditional Approach

Traditional Approach Continuous Improvement

Market-share focus Individuals Focus on who and why Short-term focus Status quo focus Product focus Innovation Fire fighting

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

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Quality Throughout
A Customers impression of quality begins with

the initial contact with the company and continues through 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, how courteous sales and repair people are, and how the product is serviced after the sale.

All departments of the company must strive to

improve the quality of their operations.

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Value-based Approach
Manufacturing Dimensions
Performance

Service Dimensions
Reliability Responsiveness

Features
Reliability Conformance Durability Serviceability Aesthetics Perceived quality
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Assurance
Empathy Tangibles

8 Dimensions Of Quality
The definition of quality is often a hotly debated topic.

While it may seem intuitive, when we get right down to it, quality is a difficult concept to define with any precision. The most fundamental definition of a quality product is one that meets the expectations of the customer. However, even this definition is too high level to be considered adequate. In order to develop a more complete definition of quality, we must consider some of the key dimensions of a quality product or service.

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8 Dimensions Of Quality
Dimension 1: Performance Does the product or service do what it is

supposed to do, within its defined tolerances? Performance is often a source of contention between customers and suppliers, particularly when deliverables are not adequately defined within specifications. The performance of a product often influences profitability or reputation of the end-user. As such, many contracts or specifications include damages related to inadequate performance.
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8 Dimensions Of Quality
Dimension 2: Features Does the product or services possess all of the features

specified, or required for its intended purpose? While this dimension may seem obvious, performance specifications rarely define the features required in a product. Thus, its important that suppliers designing product or services from performance specifications are familiar with its intended uses, and maintain close relationships with the end-users.

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8 Dimensions Of Quality
Dimension 3: Reliability Will the product consistently perform within

specifications? Reliability may be closely related to performance. For instance, a product specification may define parameters for up-time, or acceptable failure rates. Reliability is a major contributor to brand or company image, and is considered a fundamental dimension of quality by most end-users.

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8 Dimensions Of Quality
Dimension 4: Conformance Does the product or service conform to the specification? If its developed based on a performance specification,

does it perform as specified? If its developed based on a design specification, does it possess all of the features defined?

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8 Dimensions Of Quality
Dimension 5: Durability How long will the product perform or last, and under what

conditions? Durability is closely related to warranty. Requirements for product durability are often included within procurement contracts and specifications. For instance, fighter aircraft procured to operate from aircraft carriers include design criteria intended to improve their durability in the demanding naval environment.

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8 Dimensions Of Quality
Dimension 6: Serviceability Is the product relatively easy to maintain and repair? As end users become more focused on Total Cost of

Ownership than simple procurement costs, serviceability (as well as reliability) is becoming an increasingly important dimension of quality and criteria for product selection.

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8 Dimensions Of Quality
Dimension 7: Aesthetics The way a product looks is important to end-users. The

aesthetic properties of a product contribute to a companys or brands identity. Faults or defects in a product that diminish its aesthetic properties, even those that do not reduce or alter other dimensions of quality, are often cause for rejection.

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8 Dimensions Of Quality
Dimension 8: Perception

Perception is reality. The product or service may possess

adequate or even superior dimensions of quality, but still fall victim to negative customer or public perceptions. As an example, a high quality product may get the reputation for being low quality based on poor service by installation or field technicians. If the product is not installed or maintained properly, and fails as a result, the failure is often associated with the products quality rather than the quality of the service it receives.
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8 Dimensions Of Quality
Summary It should be obvious from the discussion above that the individual dimensions of quality are not necessarily distinct. Depending on the industry, situation, and type of contract or specification several or all of the above dimensions may be interdependent. When designing, developing or manufacturing a product (or delivering a service) the interactions between the dimensions of quality must be understood and taken into account. While these dimensions may not constitute a complete list of relevant dimensions, taking them into consideration should provide us with a better understanding of the slippery concept of quality.
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The TQM System

Objective

Continuous Improvement

Principles

Customer Focus

Process Improvement

Total Involvement

Elements

Leadership Education and Training Supportive structure Communications Reward and recognition Measurement

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