Pdf Total Quality Management

							    Total Quality
     Management
             and the
Transition To Business
       Excellence

    Dr. Rick L. Edgeman
     SIX SIGMA BLACK BELT
       Professor & Chair
     Department of Statistics
         415 Brink Hall
       University of Idaho
    Moscow, Idaho 83844-1104

     redgeman@uidaho.edu
The TQM philosophy
  derives from one
 foundational idea:
everything must be geared
    towards customer
 satisfaction, the engine
which drives the company
  and on which its future
    survival depends.
                           Aim: Incre ase external and internal customer satisfaction
                                     w ith a re duced amount of resources
                                      Values                                                   Tools
                                                                                 Control
                 Top Management                            Relation Factorial Charts
                   Commitment             Focus on         Diagram Design
                                         Processes                                 Criteria of
             Improve         Focus on                                Matrices       MBNQA
           Continuously     Customers                  Ishikawa                             Tree
                                                        Diagram          Process          Diagram
                                  Let Everybody
               Base Decisions                                             Maps
                                 be Committed                ISO                    Quality
                   on Fact                                   9000
                                       Quality Function                Hypothesis House
                                           Deployment                     testing
                                 Quality          Employee
                                 Circles                           Supplier
                                                 Development
                                                                 Partnership
                              Bench-          Process
                              marking       Management            Policy
                                                               Deployment
                                     Self-         Design of
                                 assessment       Experiment       Six
           Total Quality                                         Sigma
           M anagement                                   M ethodologies

Total Quality Management (TQM) can be seen as a continuously evolved management system, consisting of values, methodologies and tools. The
aim of the system is to increase external and internal customer satisfaction with a reduced amount of resources. It is important to note, that the
techniques and tools in the figure are just examples and not a complete list. In the same way the values may also vary a little between different
organisations and over time. (From Hellsten & Klefsjö, 2000.)
 What is Quality?
  Continuous Satisfaction of
   Customer Requirements


A „Customer-Centric‟ View
       What is
Quality Management?
Achievement of Quality at Low Cost.
      What is
    Total Quality
    Management?

       Attainment of
      Total Quality
   Through Everyone‟s
Commitment on a Daily Basis
SO …..
Quality is a state in which value entitlement is
realized for the customer and provider in every aspect
of the business relationship.


Business quality is highest when the costs are at
the absolute lowest for both the producer & consumer
and is most readily attained when the entirety of the
organization’s human resource is engaged..
  Anything Else is Just a Killer




           Renault’s
Five Principles of a New Culture
Fundamentally, organizational culture
        can be thought of as
 “the way we do things around here.”
   The Customer is the Ultimate Judge of Value
         The Search for a Lean Approach
Controlling the Process Means Reducing Dispersion
        Involving & Empowering People
      The Spiral of Continuous Improvement



Quality Culture Principles
                                  Quality

   People
      Processes
        Reducing Waste


Progress Through S-PDSA   Cost


                                 Delivery
Performance
          an overall way of working
    that balances stakeholder interests and
           increases the likelihood of
      sustainable competitive advantage
  and hence long-term organizational success
through operational, customer-related, financial
   and marketplace performance excellence.




  Edgeman, Dahlgaard, Dahlgaard & Scherer, 1999
    An Aligned Approach to Organizational
   Performance Management That Results In:




                                                  Harry Hertz
                                                 15 Sept. 2000




 •Delivery of Ever-Improving Value to Customers, Resulting in
                     Marketplace Success;
•Improving Organizational Effectiveness and Capabilities; and
            •Organizational and Personal Learning.
    The comprehensive, systematic, and
regular review of an organization’s activities
     and results against a specified model.
                   Purpose:
 Identification of strengths, weaknesses and
        opportunities for improvement.




 The Principal Use of Excellence Models
Business Excellence Principles
     • Leadership & Constancy of Purpose
     • Customer Focus
     • Results Orientation
     • Management by Processes & Facts
     • People Development & Involvement
     • Continuous Learning, Innovation &
       Improvement
     • Partnership Development
     • Public Responsibility
European Quality Award Excellence Criteria
                    People
                  Processes
                  Leadership
               Policy & Strategy
           Key Performance Results
           Partnerships & Resources
               Customer Results
                Society Results
                People Results
 Input      Transform       Output




  The EQA Excellence Model as an
Input-Transform-Output-Inform Model
           Leadership




From TQM to Business Excellence