TQM Total Quality Management by yaofenji

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Total Quality Management
           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.
           What is TQM?
 Total – Involving the entire
  organization, supply chain, and/or
  product life cycle.
 Quality – Degree of Excellence a
  product or service provides to the
  customer in present and future.
 Management – The system of
  managing with steps like Plan,
  Organize, Control, Lead, Staff, etc. .
   Definition: ISO 8402:1994
"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
   What’s the goal of TQM?

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

           Total Quality Management
 To ensure that things are done
  right the first time and that
  defects and waste are eliminated
  from operations.

 TQM requires that the company
  maintain this quality standard in
  all aspects of its business.
 TQM: management strategy
 aimed at embedding awareness of
  quality in all organizational
     Productivity and TQM
 Traditional view:
   Qualitycannot be improved without
   significant losses in productivity.
 TQM view:
   Improved quality leads to improved
       Another way to put it
 TQM is all managers leading and
  facilitating all contributors in two main
(1) total client satisfaction through
  quality products and services; and
(2) continuous improvements to
  processes, systems, people, suppliers,
  partners, products, and services.
       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
 5. Improving quality requires the
  establishment of effective metrics. We must
  speak with data and facts not just opinions.
   The three aspects of TQM
            Tools, techniques, and training in
 Counting   their use for analyzing,
            understanding, and solving quality

Customers   Quality for the customer as a
            driving force and central concern.

  Culture   Shared values and beliefs,
            expressed by leaders, that define
            and support quality.
  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   Continuous Improvement

 Market-share focus     Customer focus
 Individuals            Cross-functional
 Focus on ‘who” and      teams
  “why”                  Focus on “what” and
 Short-term focus        “how”
 Status quo focus       Long-term focus
 Product focus          Continuous
 Innovation              improvement
 Fire fighting          Process improvement
                         Incremental
                         Problem solving
          Quality Throughout
 “A Customer’s 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.”
          Product quality
 Physical dimension - A product's
  physical dimension measures the
  tangible product itself and includes
  such things as length, weight, and
 Performance dimension - A product's
  performance dimension measures how
  well a product works and includes
  such things as speed and capacity.
   Service Quality Dimensions
 Responsiveness - Responsiveness refers to the
  reaction time of the service.
 Assurance - Assurance refers to the level of certainty
  a customer has regarding the quality of the service
 Tangibles - Tangibles refers to a service's look or
 Empathy - Empathy is when a service employee
  shows that she understands and sympathizes with
  the customer's situation. The greater the level of this
  understanding, the better. Some situations require
  more empathy than others.
 Reliability - Reliability refers to the dependability of
  the service providers and their ability to keep their
             The TQM System
Objective                       Continuous

Principles    Customer       Process             Total
               Focus       Improvement        Involvement

Elements     Education and Training Supportive structure
             Communications       Reward and recognition

                   Total Quality Management
          1. Specified quality
 Specified quality is the first essential
 Companies should specify what quality
  means and give employees a clear picture to
  lead them in their work.
 From the customers' point of view,
     quality means that the product functions well,
     the price is competitive or fair,
     the service is quick and satisfactory.
 Example
     Matsushita,
     Sony,
     Toyota
          2. Customer orientation
 Business must provide what the
  customer wants.
 Example
      Dell company's growth fueled by
       its customer service that offers
       tailor-made solutions to their
       client needs.
 It is necessary to recognize
  internal as well as external
 Service with quality and
  efficiency for the internal
  customers adds value to their
  efforts, and is eventually passed
  on to the final
Business Processes
    3. Detailed business process
 Breaking the business process into
  small parts gives managers the chance
  to inspect and improve the ways each
  step is done.
 Checking the quality, efficiency, and
  responsiveness of each phase or unit
  gives managers accurate information
  to make necessary changes.
 Increased efficiency of each step
  greatly contributes to the overall
           4. Cooperation with
           clients and suppliers
 avoid viewing clients and customers as
  adversaries and instead should
  cooperate with them as partners to
  deliver high quality products.
 This helps managers prevent or solve
 Most automakers need to have strong
  cooperation with their suppliers.
     The Japanese Just in Time (JIT) system is a
      perfect example of a well-executed supplier
      partnership program.
        5. Problem prevention
 TQM focuses on the detection of potential
  problems before they occur.
 Failure to prevent defects has dangerous
     cost extra time and resources to inspect and fix.
     Undetected problems can even threaten an entire
     ISO 9000 certification , auditor
 Companies must design in quality before they
  provide a product or service.
 During the design phase of a product or service,
  it is vital for managers to have input from
  customers, marketing, assemblers, and final
 6. Adoption of an error-free attitude

 This attitude prevents mistakes.
 Managers should encourage every
  employee not to simply finish a job but
  to finish it correctly as well.
 Zero defect programs adopted by most
  Japanese semiconductor and electronic
  companies are good examples of this
   7. Accurate measurement
 Companies should ensure that
  performance is measured accurately,
  that is, based on factual data rather
  than assumptions.
 Managers can use such data to assess
  critical variables in the operational
 The statistical quality method taught
  by Dr. Demming and widely adopted by
  Japanese and American companies is
  the basic cornerstone of TQM.
   8. Employee participation
 For continuous improvement in work,
  management must empower
  employees to be innovative and act in
  an atmosphere of trust and respect.
 At Ford Motor, their company slogan is
  "Quality is Job 1". This is used to
  involve employees in the quality
  assurance process.
9. Total involvement atmosphere
 All units of an organization should
  simultaneously apply quality concepts.
 Every manager and employee should
  be encouraged to add value for
  continuous improvement.
 TQM requires commitment from every
  staff member of the company.
 Quality awards for management and
  staff are often used as incentives.
  10. Continuous improvement
 Quality is a moving target and creates new
  standards for businesses.
 Products that consumers believed were of a
  high quality in the past are now of average
 The organization itself must be dynamic to
  meet customers' ever-changing needs.
     Nokia, for example, instituted an up-to-date quality
      assurance program at its plants, and solidified its
      position as the one of the best cellular phone
      companies in the world.
     Old and New Cultures
   Quality           OLD            TQM
Definition   Product         Customer
Priorities   Service &Cost   Quality
Decisions    Short           Long
Emphasis     Detection       Prevention
    Old and New Cultures
   Quality Element      OLD            TQM
Errors               Operations   System
Responsibility       QC           Every Body
Problem Solving      Managers     Teams
Procurement          Price        Partners/JIT
Manager’s Role       Plan         Delegate
                     Assign       Coach
                     Enforce      Mentor
TQM Implementation in
   Boeing Aircraft
Elements of the Management system
 Internal Service Quality:
  Customer/supplier  Alignment
  Survey Feedback Actions

  Guaranteed Fair Treatment Process

  LEAD : Leadership Evaluation
   Awareness Process
            What is
FedEx’s corporate philosophy ?


TQM in Boeing Aircraft

            Customer Success
       TQM in TVS Group

 India’s leading supplier of automotive
  (turnover 4 billion US$ )
 adopt TQM as a way of life.
 robust processes and stringent controls
  underlie every activity,
 delivering tangible benefits to all
  stakeholders from customer to employee.
 five companies have won the coveted
  Deming Award instituted by the Union of
  Japanese Scientists and Engineers.
           Real Life
TQM has being implemented in
 Reliance
 Tata
    Guru’s of TQM
 Walter.A.Shewhart -TQC &PDSA
 W.Edwards Deming- 14 Points &
 Joseph.M.Juran-Juran’s Trilogy

 A.Feiganbaum-Customer
    Involvement, TQC.
        Guru’s of TQM
 Kaoru Ishikawa-Disciple of Juran &
  Feigenbaum. TQC in Japan, SPC,
  Cause &Effect Diagram,QC.
 Philips.B.Crosby. Four Absolutes-
  Quality-Req, Prevention of NC,Zero
  Defects & Measure of NC.
 Taguchi.G-Loss Function.
   ISO 9000:2000
    Quality is the degree to which a set
    of inherent characteristics fullfils
   Quantified
    Q=P/E P-Performance
   Joseph M. Juran    Quality is fitness
    for use or purpose
Philips B
    Quality is Conformance to requirements

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

Changing Organization Culture

Improper planning

Continuous Training & Education
  Organization Structure & Departments

  Data’s & Facts For Effective Decisions

  Internal & External Customers-

  Empowerment & Teamwork

  Continuous Improvement
Improved Quality

Employee Participation

Team Work

Internal & External Customer Satisfaction

Productivity ,Communication

Profitability & Market Share
              Cost of Quality
 Quality affects all aspects of the
 Quality has dramatic cost
  implications of;
   Quality   control costs
     Prevention costs
     Appraisal costs

   Quality   failure costs
     Internal failure costs
     External failure costs
Cost of Quality – 4 Categories

 Early detection/prevention is less costly
     May be less by a factor of 10
        Joseph M.Juran and the Cost Of Quality

                     Total                     Unavoidable
                     Costs                     costs


                      Point of “Enough   Level of quality
  Ways of Improving Quality
 Plan-Do-Study-Act Cycle (PDSA)
   Also called the Deming Wheel after originator
   Circular, never ending problem solving
 Quality Function Deployment
     Used to translate customer preferences to
 Seven Tools of Quality Control
     Tools typically taught to problem solving
               PDSA Details
 Plan
     Evaluate current process
     Collect procedures, data, identify problems
     Develop an improvement plan, performance objectives
 Do
     Implement the plan – trial basis
 Study (check)
     Collect data and evaluate against objectives
 Act
     Communicate the results from trial
     If successful, implement new process
               PDSA (continued)
 Cycle is repeated
     After act phase, start planning and repeat
               QFD Details
    Process used to ensure that the product
     meets customer specifications

Voice of the

  Voice                              Customer-based
  of the                               benchmarks
          QFD - House of Quality
  Quality function deployment (QFD)
  Adding trade-offs, targets & developing product


Targets                                  Benchmarks
Seven Problem Solving Tools
   Cause-and-Effect Diagrams
   Flowcharts
   Checklists
   Control Charts
   Scatter Diagrams
   Pareto Analysis
   Histograms
  Cause-and-Effect Diagrams
 Called Fishbone Diagram
 Focused on solving identified quality problem
 Used to document the detailed steps in
  a process
 Often the first step in Process Re-
 Simple data check-off sheet designed to identify
  type of quality problems at each work station; per
  shift, per machine, per operator
            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
         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
 Technique that displays the degree of importance for
  each element
 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
 A chart that shows the frequency distribution of
  observed values of a variable like service time
  at a bank drive-up window

 Displays whether the distribution is
  symmetrical (normal) or skewed
Quality Awards and Standards
 Malcolm Baldrige National Quality
 The Deming Prize
 ISO 9000 Certification
 ISO 14000 Standards
Quality Awards and Standards
 Malcolm Baldrige National Quality
  Award (MBNQA)
 The Deming Prize
 ISO 9000 Certification
 ISO 14000 Standards
      MBNQA- What Is It?
 Award named after the former Secretary of
  Commerce – Reagan Administration
 Intended to reward and stimulate quality
 Given to no more that two companies in each of
  three categories; manufacturing, service, and
  small business
 Past winners; FedEx, 3M, IBM, Ritz-Carlton
 Typical winners have scored around 700 points
Thailand Quality Award TQA
        The Deming Prize
 Given by the Union of Japanese Scientists
 and Engineers since 1951
 Named after W. Edwards Deming who
 worked to improve Japanese quality after
 Not open to foreign companies until 1984
 Florida P & L was first US company winner
              ISO Standards
 ISO 9000 Standards:
   Certification developed by International Organization
    for Standardization
   Set of internationally recognized quality standards
   Companies are periodically audited & certified
   ISO 9000:2000 QMS – Fundamentals and
   ISO 9001:2000 QMS – Requirements
   ISO 9004:2000 QMS - Guidelines for Performance
   More than 40,000 companies have been certified
 ISO 14000:
         Focuses on a company’s environmental

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