TOTAL QUALITY MANAGEMENT:

TQM

Origins, Evolution & key elements

 What is Quality?

Quality is “fitness for use”

(Joseph Juran)
Quality is “conformance to requirements”
(Philip B. Crosby)
Quality of a product or services is its ability to satisfy
the needs and expectations of the customer
 Evolution of Quality Management

Inspection Salvage, sorting, grading, blending, corrective

actions, identify sources of non-conformance
Develop quality manual, process performance
Quality data, self-inspection, product testing, basic
Control quality planning, use of basic statistics,
paperwork control.
Quality systems development, advanced quality
Quality
planning, comprehensive quality manuals, use of
Assurance quality costs, involvement of non-production
operations, failure mode and effects analysis, SPC.

TQM Policy deployment, involve supplier & customers,

involve all operations, process management,
performance measurement, teamwork, employee
involvement.
 W. E. Deming and the 6 Era’s of Quality

1920’s : New statistical thinking and methods in

manufacturing
1930/40’s : Use of statistical thinking outside
manufacturing
1950/60’s : Systems of improvement
1970/80’s : The fourteen points
Late 80’s : The “New Climate”
1990’s : System of Profound Knowledge
 Deming’s view of a production as a system

Receipt & test of Design & Consumer

materials redesign Research

Suppliers, Production,
materials & assembly, Distribution Consumers
equipment inspection

Test of processes,
machines, methods, cost
 Deming’s Chain Reaction

Improve Quality
Provide jobs and Cost decreases because
more jobs of less rework, fewer
mistakes, fewer delays,
snags, better use of
Stay in business machine time and
materials

Productivity improves
Capture the market with
better quality and lower price
 The Deming Cycle or PDCA Cycle

PLAN
Plan a change to the process. Predict the
effect this change will have and plan how
the effects will be measured
ACT DO
Adopt the change as a Implement the change on
permanent modification a small scale and measure
to the process, or the effects
abandon it.
CHECK
Study the results to
learn what effect the
change had, if any.
 W. Edwards Deming’s 14
Points
1) Create constancy of purpose towards improvement
of product and services.
2) Adopt the new philosophy. We can no longer live
with commonly accepted levels of delays, mistakes,
defective workmanship.
3) Cease dependence on mass inspection. Require,
instead, statistical evidence that quality is built in.
4) End the practice of awarding business on the basis of
price tag.
 W. Edwards Deming’s 14
Points
5) Find problems. It is management’s job to work
continually on the system.
6) Institute modern methods of training on the job.
7) Institute modern methods of supervision of
production workers. The responsibility of foremen
must be changed from numbers to quality.
8) Drive out fear that everyone may work effectively for
the company.
 W. Edwards Deming’s 14
Points
9) Break down barriers between departments.
10) Eliminate numerical goals, posters and slogans for
the workforce asking for new levels of productivity
without providing methods.
11) Eliminate work standards that prescribe numerical
quotas.
12) Remove barriers that stand between the hourly
worker and his right to pride of workmanship.
 W. Edwards Deming’s 14
Points
13) Institute a vigorous programme of education and
retraining.
14) Create a structure in top management that will push
everyday on the above 13 points.
Deming’s System of Profound Knowledge

Appreciation for Knowledge

system about variation

Theory about Knowledge of

knowledge psychology
 Philip Crosby’s Four Absolutes

What is Quality? Definition : Conformance to

requirements
What system is needed System of quality is
to cause quality? prevention
What performance Performance Standard :
standard should be used? Zero Defects
What measurement Measurement : Price of non-
system is required? conformance (PON)
 Crosby’s Successful Company

Characteristics of the Eternally Successful

Organisation
People do things right routinely
Growth is profitable and steady
Customer needs are anticipated
Change is planned and managed
People are proud to work there
 Philip B. Crosby’s 14 Points

1) Make it clear that management is committed to

quality.
2) Form quality improvement teams with
representatives from each department.
3) Determine where current and potential quality
problems lie.
4) Evaluate the cost of quality and explain its use as a
management tool.
 Philip B. Crosby’s 14 Points

5) Raise the quality awareness and personal concern of

all employees.
6) Take actions to correct problems identified through
previous steps.
7) Establish a committee for the zero defects
programme.
8) Train supervisors to actively carry out their part of
the quality improvement programme.
 Philip B. Crosby’s 14 Points

9) Hold a ‘zero defects day’ to let all employees realise

that there has been a change.
10) Encourage all individuals to establish improvement
goals for themselves and their groups.
11) Encourage employees to communicate to
management the obstacles they face in attaining their
improvement goals.
12) Recognise and appreciate those who participate.
 Philip B. Crosby’s 14 Points

13) Establish quality councils to communicate on a

regular basis.
14) Do it all over again to emphasise that the quality
improvement programme never ends.
 Joseph M. Juran’s Quality Trilogy

Quality Planning Quality Control Quality

Establish quality goals Prove the process can Improvement
produce under Seek to optimise the
Identify customer needs
operating conditions process via tools of
Translate needs into our diagnosis
Transfer process to
language
operation
Develop a product for
these needs
Optimise product
features for these needs
 Juran’s Trilogy Diagram

Quality Planning Quality control (during operations)

40 Quality
improve
Cost of New zone
-ment
Poor of quality
Original zone of control
Quality
20 quality control

0
0 TIME

Lessons learned
 Juran’s Quality Planning Road Map

1) Identify who are the customers

2) Determine the customer’s needs
3) Translate the needs into our language
4) Develop a product to meet those needs
5) Optimise a product so as to meets our needs
as well as the customer’s.
6) Develop a process which is able to produce the
product
7) Optimise the process
8) Prove the process can make the product
under operating conditions
 Joseph M.Juran and the Cost Of Quality

2 types of costs:
Unavoidable Costs: preventing defects (inspection,
sampling, sorting, QC)
Avoidable Costs: defects and product failures
(scrapped materials, labour for re-work, complaint
processing, losses from unhappy customers

“Gold in the Mine”

 Joseph M.Juran and the Cost Of Quality

Costs
Total Unavoidable
Costs costs

Avoidable
costs

100% defective Point of “Enough

quality”
 Joseph M. Juran’s 10 Points

1) Build awareness of the need and opportunity for

improvement.
2) Set goals for improvement.
3) Organise to reach the goals (establish a quality
council, identify problems, select projects, appoint
teams, designate facilitators)
4) Provide training.
5) Carry out projects to solve problems
 Joseph M. Juran’s 10 Points
6) Report progress.
7) Give recognition.
8) Communicate results.
9) Keep score.
10) Maintain momentum by making annual
improvement part of the regular systems and process
of the company.
 What is TQM?
Concern for
Constant drive Management employee
for continuous by Fact involvement and
improvement and development
learning.

Organisation
Passion to deliver response
Result Focus customer value / ability
excellence
Partnership
Actions not just
perspective
words (internal /
Process
(implementation) external)
Management
 LEARNING AND TQM

Learning

Process Improvement

Quality Improvement

Customer Shareholder Employee

Satisfaction Satisfaction Satisfaction
 BASIC PRINCIPLES OF TQM

Approach Management Led

Scope Company Wide

Scale Everyone is responsible for Quality

Philosophy Prevention not Detection

Standard Right First Time

Control Cost of Quality

Theme On going Improvement

FOUR KEY PRINCIPLES

•Measure quality so you can affect it

•Focus on a moving customer

•Involve every employee

•Think long term - Act short term

 THE CASE FOR QUALITY
1 Success of competitors who take quality seriously

2 Rising expectations of customers

3 Quality differentiates companies from the

competition

4 Narrowing of supplier bases by quality conscious

companies

.
 THE CASE FOR QUALITY
5 Growing evidence that growth in market
share comes from sustained quality.

6 Cost advantages

7 High cost of catastrophic failure

8 Inspection poor substitute for right first time

 SEVEN DEADLY SINS OF TQM

•Flight to nowhere
•One size fits all
•Substituting TQM for leadership
•Inside - Out indicators
•Mandatory religion
•Quality kept as a separate activity
•Teaching to the test

Booz-Allen & Hamilton

 IS QUALITY A SOUND INVESTMENT?
Year Company Stock Growth (Oct 94)
1988 Motorola 373.0%
1988 Westinghouse (CNFD) - 49.6%
1989 Xerox (BPS) 75.9%
1990 General Motors 1.6%
1990 Federal Express 10.6%
1990 IBM (IBM Rochester) - 34.9%
1991 Selectron 526.9%
1992 AT&T (UCS) 32.2%
1992 AT&T (TSBU) 32.2%
1992 Texas Instruments (DS&E) 106.8%
1993 Zyta 8.4%
1994 Eastman Chemical 18.5%

Total Stock Value £23016 (91.8% growth)

Standard & Poor 500 Stock value £15911 (32.6% growth)
Source: US Dept. of Commerce Study 1995
THE NEW ISO 9000 2000
QUALITY STANDARD
 REASONS FOR CHANGE

• ISO Technical
Committee (TC) argue
that:
The main reason for the year
2000 revision is to give users
the opportunity to add value to
activities and to improve their
performance continually by
focusing on the major processes
within the organisation
 ISO 9000 2000 CHANGES
• CUSTOMER FOCUSED
ORGANISATION
• LEADERSHIP
• INVOLVEMENT OF PEOPLE
• PROCESS APPROACH
• SYSTEM APPROACH TO
MANAGEMENT
• CONTINUAL IMPROVEMENT
• FACTUAL APPROACH TO
DECISION MAKING
• MUTUALLY BENEFICIAL
SUPPLIER RELATIONSHIPS
IMPLEMENTATION PRINCIPLES

• MANAGEMENT
RESPONSIBILITY
• RESOURCE
MANAGEMENT
• PRODUCT
REALIZATION
• MEASUREMENT,
ANALYSIS AND
IMPROVEMENT
More clearly defined requirements

• Continual improvement
• increased emphasis on the role of top
management
• establishment of measurable objectives at
relevant functions and levels
• Monitoring of information of customer
satisfaction and/or dissatisfaction as a
measurement of the system performance
• Increased attention to resource availability;
determination of training effectiveness
• Measurement extending to the system,
process, and product
• Analysis of collected data on the
performance of the quality management
system
Quality is a Journey,
not a Destination