Total Quality Management Instructor: Hank Sobah

Total Quality ManagementInstructor: Hank Sobah Quality Basics

Elements of a Quality System • Quality offers organizations significant opportunities for improvement, including: • reduced costs • increased sales • better performance to schedule • more satisfied customers. • A successful quality system does more than ensure the quality of products and services; it drives vigorous operations and leads to a healthy bottom line.

Elements of a Quality System Successful quality systems share basic common elements: Management, Customer Focus Design, Purchasing, Production Education and Training, Statistics Participative Management, Technology Quality Cost, Auditing Ongoing Improvement

Management A quality system cannot succeed without the active and continuous involvement of line and staff managers. Successful quality systems require a partnership in responsibility for improving quality and achieving results. Everyone shares the responsibility for quality

Customer Focus Every organization needs to know its customers. Successful organizations tell customers what their products are supposed to do—and then ask them how well the products performed.

Design Quality has to be designed into a product or service. An organization can only do that by bringing design and development personnel in on the quality effort along with marketing, production, and customer support.

Purchasing Suppliers are partners, not adversaries in the quality effort. Smart organizations evaluate a supplier’s price and quality, and, if necessary, help them improve their quality system.

Production Production equals people working with processes to produce goods and services. Employees need training, tools, and clear work instructions to efficiently produce high quality designs.

Education and Training Everyone has an influence on quality—line workers, middle management, support staff, and senior executives. They all benefit from training in the principles of quality.

Participative Management Providing skills and training is not enough; managers must encourage staff to solve problems independently. Managers needs to tap into a company’s most valuable resource, employees, to boost productivity and cut costs.

Statistics Decision makers need to know the risks involved in their decisions. Successful organizations know statistics can be the difference between failure and success in controlling processes and solving problems.

Technology Advances in computerization and robotics promise huge gains in productivity — IF automated systems are not producing products that must be reworked.

Quality Costs Organizations can spend money on quality by investing in good quality or by paying for poor quality. Successful ones invest in good quality because they know it costs much less over the long term.

Auditing An effective quality audit provides companies with solid information about how people, systems, and products are performing in terms of quality.

Ongoing Improvement The secret to success in quality is preventing problems. To help improve quality and prevent problems before they occur, quality teams can be established to bridge departmental barriers.

Total Quality Management • A management approach centered on quality • Based on organization-wide participation • Aimed at long-term success through customer satisfaction. TQM focuses on customers; • internal – those within the organization, the next party in the work process • external - end users, stakeholders, regulatory agencies. Customer Satisfaction Fluctuates so; • ContinuousImprovementis critical to survival. • Continuous Improvement applies to processes and the people who operate them as well as products.

Total Quality Management (2) The plan-do-check-act (PDCA) cycle is • Well-known model for continuous process improvement. • A four-step process also referred to as the Shewhart cycle, the Deming cycle (for W. Edwards Deming), and the PDSA cycle (with the S standing for “study”). • A Plan to effect improvement is developed. • The plan is carried out, preferably on a small scale. • The effects of the plan are observed. • Results are studied to determine what was learned and what can be predicted.

TQM Emphasizes Participation • Every activity contributes to or detracts from quality and productivity. Leadership from management and employee involvement are crucial for success. • Management’s role in TQM is to develop a quality strategy aligned with organizational business objectives and based on customer and stakeholder needs. After that strategy is defined, managers must participate in its deployment regularly and at every level. • Employee involvement can take several forms. Typically, quality improvement requires teams involving employees across functional boundaries. • When employees are involved in quality, their organizations are more likely to make well-informed quality decisions and feel responsible for those decisions. • Organizations empower employees by allowing them to make decisions that improve work processes within defined boundaries.

Process Definition An activity or group of activities that takes an input, adds value through the use of resources, and provides an output to internal or external customers. The value added by a process comes in exchange for the resources it uses, including people, equipment, material, money, and time.

Process – Cycle Time The time it takes to complete a process from beginning to end. To a large degree, cycle time is a quality standard imposed by customers who expect products and services to be delivered on demand. Reducing cycle time helps eliminate costly rework and frees resources for other processes.

Process - Variation All processes have variation caused by commonorspecial causes. Unchecked variation can result in defects and customer dissatisfaction. Common causes result in normal process variation that can be improved only by a fundamental change in the process. Special (or assignable) causes are attributed to something outside the normal process; they result in abnormal process variation, which must be eliminated. Before a process can be improved, any special causes of variation must be identified and eliminated.

Process Management The collection of practices used to implement and improve quality management and process effectiveness across an organization. It focuses on the overall effectiveness of cross-functional processes rather than the outputs of individual functions. Process management treats the organization as a group of interrelated processes that ultimately affect quality

Quality Deployment Quality Culture: For an organization to make long-lasting changes, a culture change must also take place. A quality culture exhibits four characteristics: Leadership Quality Management Organizational Learning Ethics

Leadership Executives and managers must demonstrate a personal commitment to quality. Lukewarm support from top management can be the kiss of death for a quality program.

Quality Management Practices must reduce barriers to change, such as traditional thinking, reliance on fire fighting, and policies that impede communication and learning and rob people of pride in their work. Quality management must promote decision making and problem solving that is driven by customer, date, and proven cause-and-effect relationships.

Organizational Learning Quality principles must be translated into corporate policies and practices that spread new quality ideas across organizational boundaries.

Code of Ethics A firm code of ethics specifies generally accepted standards of professional conduct useful to the organization and its customers.

TQM Requires Clear Strategy • A good quality strategy is integrated with an organization’s overall business strategy and should include; • a vision statement (where an organization wants to go), • mission statement (where the organization is), • goals (endpoints or conditions the organization works toward to close the gap between vision and mission), • and objectives (expectations stated in quantitative terms to help achieve goals).

Quality Plan • A quality plan outlines how an organization will meet its goals and objectives. • Simply, a quality plan should answer three questions: • What specific quality work needs to be done? • How is it to be done? • What are the outputs?

Quality Planning The planning process often begins with a quality assessment, identifying: • Business practices • Attitudes • Activities that are enhancing or inhibiting quality improvement.

Quality Planning Tools Tools and techniques that can be used include; • Self-evaluation • Organizational assessment • Customer surveys • Benchmarking.

The Quality Function Is defined as the entire collection of activities through which an organization achieves fitness for use. It is supported by systems thinking, the belief that an organization is an interrelated system that cannot be divided into independent parts.

DEFINITIONS (from ASQ Quality Digest Readers) • Quality itself has been defined as fundamentally relational: • 'Quality is the ongoing process of building and sustaining relationships by assessing, anticipating, and fulfilling stated and implied needs.‘ • Even other quality definitions that aren’t explicitly relational are implicitly relational.

DEFINITIONS (from ASQ Quality Digest Readers) • Why do we try to do the right thing right, on time, every time? To build and sustain relationships. • Why do we seek zero defects and conformance to requirements (or their modern counterpart, six sigma)? To build and sustain relationships. • Why do we seek to structure features or characteristics of a product or service that bear on their ability to satisfy stated and implied needs? (ANSI/ASQC.) To build and sustain relationships.

DEFINITIONS (from ASQ Quality Digest Readers) The focus of continuous improvement is the building and sustaining of relationships. It would be difficult to find a definition of quality that did not have a fundamental express or implied focus on building and sustaining relationships. • --from Winder, Richard E. and Judd, Daniel K., 1996, ORGANIZATIONAL ORIENTEERING

DEFINITIONS (from ASQ Quality Digest Readers) • Quality is the customers' perception of the value of the suppliers' work output. • The word "Quality" represents the properties of products and/or services that are valued by the consumer. • Quality is a momentary perception that occurs when something in our environment interacts with us, in the pre-intellectual awareness that comes before rational thought takes over and begins establishing order. Judgment of the resulting order is then reported as good or bad quality value.

DEFINITIONS (from ASQ Quality Digest Readers) • There are two definitive types of "quality". • Quality of design • Quality of the process • Whether you are in discrete manufacturing, process manufacturing or a service related industry you have design issues of usability, comfort, and tolerance of durability beyond prescribed use and identity of "status" of design quality. • The ability to live up to the "quality of design" is maintained by the "quality of the process"

DEFINITIONS (from ASQ Quality Digest Readers) • My definition of Quality is: "Reducing the variation around the target". • All your actions aimed at the translation, transformation and realization of customer expectations , converting them to requirements, • Quality is doing the right things right and is uniquely defined by each individual.

DEFINITIONS (from ASQ Quality Digest Readers) • The degree to which something meets or exceeds the expectations of its consumers. • "Conformance to *Valid* Requirements" • Quality is meeting the customer's needs in a way that exceeds the customer's expectations. • "Quality is nothing more or less than the perception the customer has of you, your products, and your services"! • Definition of Quality: "WOW"

DEFINITIONS (from ASQ Quality Digest Readers) Definition depends on the purpose and for whom you are talking: • If you talk for your customers, then it is what ever he says it is, what he expect from the product or service. • If you talk to your company, to your people, then I follow the Kano Model. There are three parts of Quality: • The Basic Q. What absolutely must be. w/o the customers is dissatisfied. • The Customer expected Q. achieve all and the customer is satisfied. I.e Six Sigma helps to do that. • The exciting Q. The customer does not know it exists, yet it is possible. This becomes tomorrow's expectation.

DEFINITIONS (from ASQ Quality Digest Readers) • Quality is the extent to which products, services, processes, and relationships are free from defects, constraints, and items which do not add value for customers." • A Strategic, Systems Approach to Continuous Improvement, • Clean, precise and flawless • A perceived degree of excellence with a minimum usually set forth by the customer.

DEFINITIONS (from ASQ Quality Digest Readers) • Quality is a perceived degree of excellence with a minimum usually set forth by the customer. • When the customer returns and the product doesn't. • When something is what you expect it to be then it is perceived as quality. • Thus, quality is a fulfillment of expectation.

DEFINITIONS (from ASQ Quality Digest Readers) • There are two forms of quality, and therefore two definitions and two forms of measurement. • OBJECTIVE quality is the degree of compliance of a process or its outcome with a predetermined set of criteria, which are presumed essential to the ultimate value it provides. Example: proper formulation of a medication. • SUBJECTIVE quality is the level of perceived value reported by the person who benefits from a process or its outcome. It may subsume various intermediate quality measures, both objective and subjective. Example: pain relief provided by a medication

DEFINITIONS (from ASQ Quality Digest Readers) • Satisfy or exceed customer expectations at the minimum possible cost • Quality is to reach the costumer needs at low rates (costs) to the company and achieving employee satisfaction. • Quality is an ever evolving perception by the customer of the value provided by a product. • It is not a static perception that never changes but a fluid process that changes as a product matures (innovation) and other alternatives (competition) are made available as a basis of comparison.

DEFINITIONS (from ASQ Quality Digest Readers) • "Variation is the enemy of Quality • "Uniformity is the enemy of Knowledge". • Quality means best for certain conditions...(a) the actual use and (b) the selling price. (Feigenbaum, 1983) • Quality, It's a Way of Life. • Quality Is Our Most Important Product. • Quality is a degree of excellence... (Webster)

Total Quality Management Instructor: Hank Sobah