Total Quality Management GE2022

1. Total Quality ManagementGE2022 Text Book: Dale H.Besterfiled, et at., “Total Quality Management”, Pearson Education Asia, 3rd Edition, Indian Reprint (2006).

2. Prerequisite Courses Knowledge in, • Organizational process & corporate culture. • Project Management techniques Course Objective The student should be made, • To facilitate the understanding of Quality Management principles and process. • To gain knowledge about Quality systems, TQM tools & Techniques.

3. Course Outcomes • Describe the basic concepts of TQM. • Explain the principles of TQM. • Apply the tools & techniques to solve the majority of quality-related issue. • Explain the various types of Quality systems.

4. COs Knowledge Level

5. UNIT I - INTRODUCTION Introduction - Need for quality - Evolution of quality - Definition of quality - Dimensions of manufacturing and service quality - Basic concepts of TQM - Definition of TQM – TQM Framework - Contributions of Deming, Juran and Crosby – Barriers to TQM- Quality statements - Customer focus - Customer orientation, Customer satisfaction, Customer complaints, Customer retention - Costs of quality.

6. INTRODUCTION TO QUALITY • In last two decades, one of the important issues that business has focused on is “quality”. The other issues are cost and delivery. • Recent evidence shows that more & more corporations are recognizing the importance and necessity of quality improvement to survive domestic and world-wide competition. • To be competitive in today’s market, it is essential for the companies to provide more consistent quality and value to their customers. • Quality is not just confined to products and services. It is a homogeneous element of any aspect of doing things with high degree of perfection. • Quality refers to certain standards and the ways and means by which those standards are achieved, maintained and improved.

7. Need for Quality • Automation and other productivity enhancements might not help to market its product or service, if the quality is poor. The Japanese learned this fact from practical experience. • Quality has been widely considered as a key element for success in business in the present competitive market. Business success depends on the quality decision making. • Quality and Productivity are not mutually exclusive. Improvement in quality leads to increase in productivity & other benefits too. • Quality refers to meeting the needs and expectations of customers more than a product simply working properly. • A new attitude has emerged – Quality first among the equals of cost and service. So the customer wants value.

8. Evolution of quality

9. Evolution of quality

10. Evolution of quality

11. Definition of quality • Given in ISO 9000: 2000 – It is defined that the degree to which a set of inherent characteristics fulfils requirements. Where, • Degree – Quality can be used with adjectives such as Poor, Good & Excellent. • Inherent – Existing in something, (i.e.) permanent characteristics. • Characteristics – It can be qualitative or quantitative. • Requirement – Need or expectation that is stated by organization or customer.

12. Quality definition by Gurus of TQM • Predictable degree of uniformity and dependability at low cost and suited to the market - Deming • Fitness for use - Juran • Conformance to requirements, not goodness - Crosby • Minimum loss imparted by a product to society from the time the product is shipped - Taguchi • Correcting and preventing loss, not living with loss - Hosffin

13. Definition of quality • Quality can be quantified as follows, • Q = P / EWhere Q = Quality; P = Performance & E = Expectations • If Q is greater than 1.0, then the customer has a good feeling about the product or service. Most likely, P & E based on perception with the organization determining performance and the customer determining expectations.

14. Dimension of quality • Quality product can be determined by using dimension of quality. Quality has nine different dimensions that are independent. • A product can be excellent in one dimension and average or poor in other dimension. Very few products excel in all dimensions. • Marketing has responsibility to identify the relative importance of dimension and then are translated into requirements for developing new product or improving existing one.

15. Dimension of quality

16. Dimensions of Manufacturing and Service Quality • Defining quality in manufacturing organizations is often different from that of services. • Manufacturing organizations produce a tangible product that can be seen, touched, and directly measured. Examples include cars, CD players, clothes, computers, and food items. Therefore, quality definitions in manufacturing usually focus on tangible product features. • The most common quality definition in manufacturing is conformance, which is the degree to which a product characteristic meets preset standards. • In contrast to manufacturing, service organizations produce a product that is intangible. Usually, the complete product cannot be seen or touched. Rather, it is experienced. Examples include delivery of health care, experience of staying at a vacation resort, and learning at a university.

17. Dimensions of Manufacturing and Service Quality • The intangible nature of the product makes defining quality difficult. Also, since a service is experienced, perceptions can be highly subjective. • In addition to tangible factors, quality of services is often defined by perceptual factors. These include responsiveness to customer needs, courtesy and friendliness of staff, promptness in resolving complaints, and atmosphere. • Other definitions of quality in services include time—the amount of time a customer has to wait for the service; and consistency—the degree to which the service is the same each time For these reasons, defining quality in services can be especially challenging.

18. Dimension of quality

19. Introduction to tqm • TQM is an enhancement to the traditional way of doing business. It is a proven technique to guarantee survival in world class competition. • Only by changing the actions of management will the culture and actions of an entire organization be transformed. • Golden Rule: “Do unto others as you would have them do unto you”

20. Purpose of TQM • To provide a quality product or service to customers that will increase productivity and lower cost. • With a higher quality product & lower price, competitive position in the marketplace will enhanced. • Allow the organization to achieve the objectives of profit & growth with greater ease. So the work force will have job security & satisfaction in work.

21. Definition of tqm • TQM is the art of managing the whole to achieve excellence. It is both a philosophy and a set of guiding principles that represent the foundation of continuously improving the organization. • Total: Made up of the whole • Quality: Degree of excellence a product or service provides • Management: Act, art or manner of handling, controlling, directing etc. • It is the application of quantitative methods and human resources to improve all the processes within the organization and exceed customer needs now and in the near future. • TQM integrates fundamental management techniques, existing improvement efforts, and technical tools under a disciplined approach.

22. Characteristics of TQM 1. Customer Oriented 2. Long term commitment for continuous improvement of all process 3. Team work 4. Continuous involvement of top management 5. Continuous improving at all levels and all areas of responsibility

23. Comparison of TQM with OLD Culture

24. basic concepts of tqm • A committed and involved management to provide long term top-to-bottom organizational support : LEADERSHIP • An unwavering focus on the customer, both internally and externally : CUSTOMER SATISFACTION • Effective involvement and utilization of the entire work force : EMPLOYEE INVOLVEMENT • Continuous improvement of the business and production process : CONTINUOUS PROCESS IMPROVEMENT • Treating suppliers as partners : SUPPLIER PARTNERSHIP • Establish performance measures for the processes : PERFORMANCE MEASURES

25. Principles of TQM 1. Customers requirements-(both internal & external) must be met first time & every time 2. Everybody must be involved 3. Regular two way communication must be promoted 4. Identify the training needs and supply it to the employees 5. Top management commitment is must 6. Every job must add value 7. Eliminate waste & reduce total cost 8. Promote creativity 9. Focus on team work.

26. BARRIERS / OBSTACLES TO TQM IMPLEMENTATION • Lack of management commitment • Inability to change organizational culture • Improper planning • Lack of continuous training and education • Incomplete organizational structure and isolated individuals and departments • Ineffective measurement techniques and lack of access to data and results • Paying inadequate attention to internal and external customers • Inadequate use of empowerment and teamwork • Failure to continually improve

27. CONTRIBUTIONS BY QUALITY GURUS Walter A. Shewhart He was a statistician at Bell Labs during the 1920s and 1930s. Shewhart studied randomness and recognized that variability existed in all manufacturing processes. He developed quality control chartsthat are used to identify whether the variability in the process is random or due to an assignable cause, such as poor workers or miscalibrated machinery. He stressed that eliminating variability improves quality. His work created the foundation for today’s statistical process control, and he is often referred to as the grandfather of quality control.

29. W. Edwards Deming • He often referred to as the father of quality control. He was a statistics professor at New York University in the 1940s. After World War II he assisted many Japanese companies in improving quality. • The Japanese regarded him so highly that in 1951 they established the Deming Prize, an annual award given to firms that demonstrate outstanding quality. • It was almost 30 years later that American businesses began adopting Deming’s philosophy. A number of elements of Deming’s philosophy depart from traditional notions of quality. • The first is the role management should play in a company’s quality. Dr. Deming's famous 14 Points serve as management guidelines. The points cultivate a fertile soil in which a more efficient workplace, higher profits, and increased productivity may grow.

31. Create constancy of purpose for improvement of product and service. (Plan to stay in business.) • Adopt the new philosophy. (Stop tolerating poor quality.) • Cease dependence on inspection to achieve quality. (Improve the process.) • End the practice of awarding business on the basis of price tag alone. (Seek longer-term supplier relationships; reduce the number of suppliers.) • Improve constantly and forever every process in the system of planning, production, and service. • Institute modern training (for everybody!).

32. Institute modern methods of supervision. (The responsibility of foremen must be changed from sheer numbers to QUALITY.) • Drive out fear. (Encourage employees to speak up.) • Break down barriers between departments. • Eliminate slogans, exhortations, and targets for the work force. • Eliminate work standards that prescribe numericalquotas. • Remove barriers to pride in workmanship. (Poor supervisors, poor materials, inadequate equipment, lack of training, etc.) • Institute a vigorous program of education and self-improvement for everyone. • Place everybody in the company to work to accomplish the transformation and create a structure in top management that will push every day on the above points.

33. The Deming Theory • The Deming Theory of Management is a management philosophy based on four principles: (1) an appreciation for systems (2) a knowledge of variation (3) a theory of knowledge(4) psychology. • Although the principles for continuous improvement are clearly profitable for companies to implement, why has it been difficult to transform the culture of western management to focus on quality? • Deming compiled a list of seven deadly diseases that have inhibited change in style of management.

34. Lack of constancy of purpose to plan product and service that will have a market and keep the company in business and provide jobs. • Emphasis on short-term profits: short-term thinking (just the opposite from constancy of purpose to stay in business), fed by fear of unfriendly takeover, and by push from bankers and owners for dividends. • Personal review system, or evaluation of performance, merit rating, annual review, or annual appraisal, by whatever name, for people in management, the effects of which are devastating. Management by objective, on a go, no-go basis, without a method for accomplishment of the objective, is the same thing by another name. Management by fear would still be better. • Mobility of management: job hopping. • Use of visible figures only for management, with little or no consideration of figures that are unknown or unknowable. • Excessive medical costs. • Excessive costs of liability, fueled by lawyers that work on contingency fees.

35. Joseph M. JuranPh.D:Juran Trilogy Juran was invited to Japan in 1954 by the union of Japanese Scientists and engineers. Juran defines quality as fitness for use in terms of design, conformance, availability, safety and field use. He focuses on top-down management and technical methods rather than worker pride and satisfaction.

37. Philip Crosby Author of popular book Quality is Free. His absolutes of quality are • Quality is defined as conformance to requirements, not “goodness” • The system for achieving quality is prevention, not appraisal. • The performance standard is zero defects, not “that’s close enough” • The measurement of quality is the price of non-conformance, not indexes.

38. Armand V. FeigenbaumPh.D: Author of Total Quality Control Kaoru Ishikawa Ph.D: Author of Quality is Free and Quality without Tears; Fishbone / Ishikawa diagram for analyzing cause and effect

39. Genichi Taguchi Ph.D: Taguchi philosophy

40. TQM Framework

43. TQM IMPLEMENTATION • Begins with Management Commitment • Leadership is essential during every phase of the implementation process and particularly at the start • Senior Management should develop an implementation plan • Timing of the implementation process is very important • Formation of Quality Council • Active involvement of Middle Managers and First Line Supervisors is essential • Early discussions with the Union is a must • Communicate TQM to the entire organization • Training on quality awareness and problem solving • Customer, Employee and Supplier surveys must be conducted to benchmark • The council establishes the project teams and work groups and monitors their progress

44. Steps in implementing TQM • Obtain CEO Commitment • Educate Upper-Level Management • Create Steering Committee • Outline the Vision Statement, Mission Statement, & Guiding Principles • Prepare a Flow Diagram of Company Processes • Focus on the Owner/Customer (External) & Surveys • Consider the Employee as an Internal Owner/customer • Provide a Quality Training Program • Establish Quality Improvement Teams • Implement Process Improvements • Use the Tools of TQM • Know the Benefits of TQM  Continuous Improvement

45. Five Pillars of TQM • Product • Process • System • People • Leadership

46. BENEFITS OF TQM Customer satisfaction oriented benefits: • Improvement in product quality • Improvement in product design • Improvement in production flow • Improvement in employee morale and quality consciousness • Improvement in product service • Improvement in market place acceptance Economic improvement oriented benefits: • Reduction in operating costs • Reduction in operating losses • Reduction in field service costs • Reduction in liability exposure

47. BENEFITS OF TQM

48. QUALITY STATEMENTS VISION STATEMENT • It is a short declaration of what an organization aspires to be tomorrow. It is an ideal state which may never be achieved. • Successful visions are timeless, inspirational, and become deeply shared within the organization. • Successful visions provide a succinct guideline for decision making Example: “To continuously enrich knowledge base of practioners in mobility industry and institutions in the service of humanity” – SAE • Disney Theme Park - Happiest place on earth • Polaroid - Instant photography

49. MISSION STATEMENT • Describes the function of the organization. It provides the clear statement of purpose for the employees, customers and suppliers. • It answers the following questions • Who we are? • Who are the customers? • What we do? • How we do it? Example: “ Facilitating world class technical education through high quality institutions, academic excellence and innovative research and development programmes, technology forecasting and global manpower planning, promoting industry institute interaction, inculcating entrepreneurship” – AICTE A simpler mission statement is “To meet customers transportation and distribution needs by being the best at moving their goods on time, safely and damage free” - National Railways

50. QUALITY POLICY STATEMENT • It is a guide for everyone in the organization as to how they provide products and services to the customer. Written by the CEO feedback from workforce and approved by quality council. Common characteristics are • Quality is first among equals • Meet the needs of the internal & external customers • Equal or exceed competition • Continuously improve the quality • Utilize the entire workforce Example: “Xerox is a quality company. Quality is the basic business principle for Xerox. Quality means providing our external and internal customers with innovative products and service that fully satisfy their requirements. Quality is the job of every employee” – Xerox Corporation