What is TQM?

1. What is TQM? Total Quality Management is a • methodology and • set of techniques that focuses companies and enterprises in the role of customer satisfaction on their business success.

2. TQM Principles • Customer defines quality • Top management must lead effort • View quality as a strategic issue • Quality is everyone’s responsibility • Focus on continuous quality improvement • Employees/Management must cooperate to establish quality • Use Statistical quality control methods • Training and education are fundamental to all the above

3. Plan-Do-Check-Act Cycle (PDCA) • The Plan-Do-Check-Act Cycle, also called the • Deming Wheel or the • Shewart Cycle is an approach to continuous process improvement. • It simple means that you plan an improvement, implement it, check that it is having the correct effect and if not you act on it and start again. • It is particularly useful when an organisation goes through incremental change.

4. Check Act Do Plan Quality level Time Problem-solving process Deming Wheel Plan-Do-Check-Act (PDCA) Cycle

5. Problem-solving process Deming Wheel Plan • Select a process needing improvement • Document process • Analyse data • Set improvement goals • Discuss alternatives • Assess benefits and costs • Develop a plan and improvement measures. Do • Implement plan • Monitor improvements. Check • Analyze data to evaluate effectiveness of the plan. Act • Document and disseminate improved process as a standard procedure

6. Deming’s Principles • Create constancy of purpose for improvements of product and service • Everyone adopt the new philosophy • Cease dependence on mass inspection • End practice of awarding business on price tag alone • Improve constantly and forever the system of production and service • Institute modern methods of training on the job • Institute modern methods of supervising • Drive out Fear • Break down staff barriers (between departments) • Eliminate numerical goals for the workforce • Eliminate work standards and numerical quotas • Remove barriers to pride of workmanship • Institute a vigorous program of education and improvement • Create a structure in top management that will push every day on above 13 points

7. The Costs of Poor Quality • Prevention Cost • Appraisal costs • Internal Failure costs • External costs

8. 1. Prevention Costs in this category include time, effort, and money to: ·Redesign the processes to remove causes of defects ·Redesign the product to make it simpler, easier to produce ·Train employer ·Train supplier

9. 2. Appraisal Costs incurred to identify and assess quality problems ·Inspection ·Quality audits ·Statistical quality control programs

10. 3. Internal failure • Costs from defects discovered before the product or service is sold • Yield Losses — The material costs associated with scrap losses • Rework — Time, space, and capacity to store, reroute to correct defects

11. 4. External failure Costs when a defect is discovered after the customer has received the product or service ·Loss of market share ·Warranty service ·Litigation ·Increased regulation

12. What are the “hidden” costs of internal and external failures? • More labor • More machine capacity • Increased work-in-process inventory • Extended lead times • Increased chance of defects reaching the customer • Increased pressure to produce more to make up for defects • Reduced employee morale • More defects

13. Tools of TQM • Tools for generating ideas • Check sheet • Scatter diagram • Cause and effect diagram (Fishbone chart) • Tools to organize data • Pareto charts • Process charts (Flow diagrams) • Tools for identifying problems • Histograms • Statistical process control chart

14. Check Sheet • A simple checklist that is used to record when something occurs. This is used to identify symptoms and/or potential cases for a problem Month Lost Departure Mechanical Overbooked Other Luggage Delay Failure January 1 2 3 3 1 February 3 3 0 1 0 March 2 5 3 2 3 April 5 4 4 0 2 May 4 7 2 3 0 June 3 8 1 1 1 July 6 6 3 0 2 August 7 9 0 3 0 September 4 7 3 0 2 October 3 11 2 3 0 November 2 10 1 0 0 December 4 12 2 0 1 Total 44 84 24 16 12

15. Ave. No. of Defects 0 10 20 30 40 | | | | Linear Relationship 5 10 15 20 25 Thousand Lines of Code Scatter Diagrams • depict relationships between paired data

16. Cause and Effect Diagram • Also called the Ishikawa Diagram, or Fishbone Diagram. • Problem analysis technique which attempts to identify the root causes for a problem thereby allowing a group to work towards solving the "real" problems and not just symptoms. • A line is drawn across the middle of a sheet of paper to a box on the right hand side. In that box, the problem statement is written. • Major possible categories of cause are distributed along the line. • From these, lines are drawn sloping to the left. • From these lines, contributing issues for each category are placed. • From these, additional lines can be drawn. the final result is a tree with all potential causes identified.

17. Creating Fishbone Diagrams As a group: 1.Establish problem (effect) -state in clear terms -agreed upon by entire group 2. Problem becomes the “head” of the fish -draw line to head (“backbone”) • Decide major causes of the problem - by brainstorming - if the effect or problem is part of a process the major steps in the process can be used 4. Connect major causes to backbone of the fish with slanting arrows 5. Brainstorm secondary causes for each of the major causes 6. Connect these secondary causes to their respective major causes 7. Repeat steps 5 & 6 for sub-causes dividing with increased specificity - usually four or five levels 8. Analyze and evaluate causes and sub-causes • may require the use of statistical, analytical, and graphical tools 9. Decide and take action

18. Example(1 of 4) • Step 1 & 2: Poor Service (“backbone”) (“head”)

19. Example(2 of 4) • Step 3 & 4: Responsiveness Appearance Poor Service Attention Reliability

20. Example(3 of 4) • Step 5, 6, & 7: Responsiveness Appearance time equipment personnel facility Poor Service accuracy One on one service courtesy dependability Reliability Attention

21. Example(4 of 4) • Step 8 & 9: • Use tools to analyze and evaluate causes • Pareto diagrams, charts, and graphs • Statistical analysis for causes in processes • Decide and take action • Use fishbone diagram, analysis and evaluations to find causes that can be fixed • Take action to eliminate and fix problem causes

22. Exercise • Create a Fishbone (cause and effect, Ishikawa) Diagram for the following: ‘ Management at Ham Industries has noticed that the productivity of its workers is well below the standard. After interviewing its employees, it was noticed that a vast majority felt dissatisfied and unhappy with their work. Your boss has asked you and a group of your peers to find the causes of worker dissatisfaction . Include all possible causes to at least the secondary level.’

23. Cause and Effect Diagram Product Quality Service Order Processing System Customers are dissatisfied Order Fulfillment Distribution System

24. Fishbone Chart: Airline Customer Service

25. Cause-and-Effect Chart for Flight Departure Delay (Fishbone Chart) Equipment Personnel • Gate agents cannot process passengers quickly enough Too few agents Aircraft late to gate Agents undertrained Late arrival Agents undermotivated Gate occupied Agents arrive at gate late Other Mechanical failures Late cabin cleaners Late pushback tug Weather Late or unavailable cabin crews Air traffic Late or unavailable cockpit crews Delayed Flight Departure Poor announcement of departures Weight an balance sheet late Delayed checkin procedure Late baggage to aircraft Confused seat selection Late fuel Passengers bypass checkin counter Late food service Checking oversize baggage Issuance of boarding pass Acceptance of late passengers Cutoff too close to departure time Desire to protect late passengers Material Desire to help company’s income Poor gate locations Procedure

26. Pareto Diagrams • measures the distribution of quality losses 61% % ERRORS 17% 13% 5% 4% A B C D E

27. Pareto Chart • A Pareto chart is usually used to identify the principle drivers to a problem. • A checksheet is used to count how often a particular item occurs usually as a cause to a problem (e.g. missing account number on check leads to miss-filing). • The items are then charted by the percentage of the occurrences in decreasing order. • The resulting chart shows which items had the most influence on the problem. This goes along with the 80-20 rule which states that 80% of the problem are attributable to only 20% of the causes.

28. Pareto Analysis of Wine Glass Defects (Total Defects = 75) 72% 16% 5% 4% 3%

29. Pareto Chart

30. Flowcharts / Flow Diagram i.e., how a process flows yes 1 2 3 4 no 1a

31. Flowchart e.g. Statistical Process Control Steps Produce Good Start Provide Service No Assign. Take Sample Causes? Yes Inspect Sample Stop Process Create Find Out Why Control Chart

33. Histogram • Bar chart showing the number of occurrences of some event often derived from the results of a check sheet. • It could be a real world event, like late deliveries by month for a year, or it could be the number of time a proposed solution is suggested. • It allows a quick prioritisation based on frequency.

34. Suggested Mean Number 0 10 20 30 40 | | | | Length 5 10 15 20 25 Histogram • a graphic summary of dispersion

35. Histrogram of Lost Luggage

36. Brainstorming • A technique used to generate ideas about a topic. • Its most common uses are to generate ideas about potential solutions to a problem or the factors influencing something. • The most common approach is for a group to assign a recorder who records the ideas verbatim. • The group then takes turns stating their idea, • This continues until everyone runs out of ideas. • Brainstorming becomes a problem if a group gets too large (>15) so breaking into manageable groups is advisable