Total Quality Management (TQM)

1. Total Quality Management (TQM)

2. COMPETITION is the driving force in business

3. A supplier’s competitiveness is determined by QUALITY

4. Perception of QualityOnce you get a reputation, it’s hard to lose it

5. What is Quality?

6. Totality of characteristics of an entity that bear on its ability to satisfy stated and implied needs(ISO 8402 : 1994)

7. Meeting and exceeding the implied and stated needs of the customer

8. Meeting customer requirements

9. A successful business meets all its customers’ requirements

10. Good service is RELIABILITY

11. Good service is PUTTING CUSTOMER FIRST

12. Aim of supplier is to DELIGHT the customer

13. Who is the Customer?

14. Suppliers and Customersinternal and external

15. Quality Chain

16. A small break in the internal chain can be proportionately greater when they get to the external customer/supplier interface

17. Quality must be built in from beginning of an organization’s activities, not ‘inspected in’ at the end

18. Quality is a two-way process

19. Focus oninputs vs. outputs

20. Use processes at the interfaces

21. Detection and quality control

22. Quality Control • Quality Control involves monitoring specific project results to determine if they comply with relevant quality standards, and identifying ways to eliminate causes of unsatisfactory results

23. Q: Have we done job correctly?

24. Q: Are we capable doing the job correctly?

25. Total quality approach required

26. Total Quality Management Approach • Methods • Materials • Equipment • Skills & knowledge • Instructions • Processes

27. Process Inputs Outputs

28. Q: Are we capable doing the job correctly? Q: Do we continue to do the job correctly?

29. YES or NO?

30. No need for DETECTION

31. The customer/supplier chain is the core of the Total Quality Management model

32. TQM Support Mechanism • Systematic Planning • Tools for measuring delivering and sustaining quality • Organizing for quality & developing teams • Communication between all parts of the organization • Commitment of the organization to a TQM approach • Recognition and perhaps change of the organizations’ culture & environment

33. Inner band …TeamsToolsSystems

34. Outer band …CommunicationCommitmentCulture

35. Five Pillars of TQM • Product • Processes • Organization • Leadership • Commitment

36. TQM • A management approach centered on quality, based on company-wide participation and aimed at long term success through customer satisfaction (ISO)

37. TQM • Based on company-wide participation • TQM involves everyone in an organization -every function and every activity

38. Evolution of Quality 1200-1799 Guilds of Medieval Europe 1900-1940 Process Orientation 1946-Present Birth of Total Quality 1800-1899 Product Orientation 1941-1945 Quality during World War II

39. Guilds of Medieval Europe(1200-1799) • Craftsmen across Europe organized into unions called Guilds • Guilds were responsible for developing strict rules for product and service quality • Inspection committees enforced the rules by identifying flawless goods with a special mark • Primary Focus: Product Inspection

40. Product Orientation(1800-1899) • US quality practices in the 1800s were shaped by several different production methods: • Craftsmanship • The Factory System • The Taylor System

41. Craftsmanship • Early 19th century- the approach tended to follow the craftsmanship model in the European countries • Masters maintained a form of quality control by inspecting goods before sale

42. The Factory System • This is a product of the industrial revolution in Europe • The craftsmen became factory workers and the shop owners their production supervisors • Quality in the factory system was ensured through skilled laborers and supplemented by audits and/or inspections • Large production departments employed full-time inspectors who produced quality reports and • Defective products were either reworked or scrapped.

43. The Taylor System • In the late 19th century US broke from European tradition and adopted a new management approach by Taylor • Taylor’s goal was to increase productivity without increasing the no. of skilled craftsmen • He achieved this by assigning factory planning to specialized engineers and using displaced workers and supervisors to execute the engineers plans • This new approach led to remarkable rises in productivity • BUT …

44. The Taylor System • Workers once again stripped (expose) of their dwindling (declining) power and the new emphasis was on productivity which had an adverse effect on quality

45. Product Orientation(1800-1899) • Primary Focus: Product Inspection

46. Process Orientation(1900-1940) • Beginning of the 20th century marked the inclusion of processes in quality practices • Shewhart recognized that industrial processes yield data. • He determined that this data can be analyzed using statistical techniques to see if a process is stable or “in control” or if is being affected by special causes that should be fixed. • His concepts are referred to as “Statistical Quality Control” (SQC) • Primary Focus: Product Inspection & SQC

47. Quality during World War II(1941-1945) • After World War II had started, US enacted legislation to help gear the civilian economy to military production • At that time contracts were awarded to manufacturers who submitted the lowest bid. Products were inspected upon delivery • The armed forces inspected virtually every unit of product to ensure that it was safe for operation • To ease this problem, the armed forces began to utilize sampling inspection to replace unit-by-unit inspection • They adopted sampling tables and published them in a military standard Mil-Std-105 • They also helped their suppliers improve their quality by sponsoring training courses in Shewhart’s SQC techniques • Primary Focus: Sampling Inspection & SQC

48. Birth of Total Quality(1946-Present) • After World War II, major Japanese manufacturers converted from producing military goods for internal use to civilian goods for trade • Poor response from the world market • Japan started exploring new ways of thinking about quality (Deming and Juran) • Rather than relying purely on product inspection, total quality focused on improving all organizational processes through the people who used them

49. Birth of Total Quality(1946-Present) • Juran, at a conference of the European organization for quality control in Sweden made the following prediction “The Japanese are headed for world quality leadership and will attain it in the next two decades because no one else is moving at the same pace”

50. America’s Response • Initially US clung to its assumption that Japanese success was price related and responded with strategies aimed at reducing domestic production costs and restricting imports. This did not prove beneficial • By the end of the 1970’s US reached a major quality crisis. • They started to think “if Japan can.. Why can’t we? • CEO of top US organizations then took an initiative