T OTAL QUALITY MANAGEMENT

1. TOTAL QUALITY MANAGEMENT Introduction CHE 460

2. WHAT IS QUALITY? Experts Says: • “Fitness for use” (Juran) • “Conformance to purpose” (Crosby) • Degree to which a set of inherent characteristic fulfills requirements(ISO) • “The characteristics of a product or service that bear on its ability to satisfy stated or implied needs” or “ a product or service free of deficiencies “ASQ) • ...... CUSTOMER DEFINITION? CHE 460

3. DIMENSION OF QUALITY • Design Quality • Characteristics of product or service? • Target customer segment? • Material and method will be used? • ........ Example: “economy” and “business class” in flight; “cotton” or “silk” shirt. • Conformance quality • Conformance to design or intended product characteristics Example: everything being normal in an economy class flight, or defect free cotton shirt. Design quality may differ for various products but conformance quality has to be high for all. CHE 460

4. DIMENSION OF QUALITY Customer satisfaction High Excitement factors Kano Model Performance factor Fulfillment Low Fulfillment High Basic factors Customer satisfaction Low CHE 460

5. WHY IS IT IMPORTANT? • Global Competition • High supply/demand • Free international trade • Development in communication and transportation • How to compete? • Low price • High quality • Short delivery time How to achieve together? CHE 460

6. QUALITY MANAGEMENT • Quality control (Inspection and testing) • Controlling the product • Findingthe defected product and remove • Result oriented • Quality assurance • Controlling the process/system • Preventing the nonconformance to quality • Process oriented • TQM • Targeting quality in all activities • Managing all aspects (planning, executing and controlling) of quality efforts • Involving all people, processes and systems CHE 460

7. HISTORY OF QUALITY MANAGEMENT • Before 1900 • Production in small shops • Masters are responsible for quality and everything • Others help masters • Early 1900s • Mass production • Division of labor, functional organizations • “Quality control” department • 1930s • Introduction of human side of management • Introduction of statistical process control, sampling and other techniques into business • Amount of production is key for success CHE 460

8. HISTORY OF QUALITY MANAGEMENT • Deming lectures in Japan(1950s) • Focus on quality • Deming cycle • “Quality of process”: SPC • Japanese Era (up to 1980’s) • “Company wide quality control” • New techniques and applications • Deming Award • Global Acceptance (after 1980’s) • As a new management philosophy • New techniques and application • Quality Awards • Malcolm Baldrige • EFQM Business Excellence Model • TUSİAD-KALDER Quality Award • Contribution around the worlds CHE 460

9. PIONEERS • Walter A. Shewhart • Control charts • W. Edwards Deming • Control charts, 14 points, profound knowledge.. • Joseph M. Juran • “Qualty planning-control-improvement”, • quality handbook • Armand V. Feigenbaum • TQC, SPC • Phillip Crosby • “Zero defects” • Kaoru Ishikawa • One of the Japonese pioneer’s of quality • Genichi Taguchi • experimental design • ...... CHE 460

10. IMPLEMENTATION MODEL EFQM, corporate models, expert suggestions... TOOLS AND PROCESSES Teamwork, SPC, problem solving, Taguchi, QFD... PRINCIPLES Customer focus, continuous improvement, long term thinking... TQM IN ACTION CHE 460

11. TQM PRINCIPLES CHE 460

12. CUSTOMER FOCUS • Who is the customer? • People or other organizations that use the product or service of the organization • Customer is the reason to exist. • Success depends on customer behavior toward organization • Customers should be satisfied: • Determine and meet the need and expectation • Handle the complaints effectively • Increase the “perceived quality” by the customer CHE 460

13. CUSTOMER FOCUS • Internal customer • Each step is the customer of previous step • The firm is a chain of internal customers from supplier to final customer • The strength of the chain is equal to strength of the weakest ring. • Satisfaction of all stake holders • Share holder • Employees • Customer • Suppliers • Society • ..... CHE 460

14. PEOPLE FIRST: PARTICIPATION • The contribution of everybody is valuable. • The person who does the job also know how to improve. • People tend to do their best if they can (Theory Y). • Hence, achieve the participation of everyone in all activities (decision making, problem solving, improvement...) should be achieved CHE 460

15. PEOPLE FIRST : TRAINING “Quality starts and ends with training” Ishikawa • Continuous change  New needs and problems  Needfornew knowledge and skills • Managing competencies • Competency needs • Measuring the competencies • Developing competencies • Quality training • Increase awareness and commitment • Train in quality tools and process CHE 460

16. PEOPLE FIRST : EMPOWERMENT Traditional organizational structure Structure based on empowerment (symbolic representation) • The knowledge and skills of employee should be developed to handle responsibility and authority • Responsibility and authority should be given • Employee should be supported to succeed to use responsibility and authority CHE 460

17. TEAMWORK “Team is a collection of “limited number of members” to “achieve a common goal” by “working together”. Example: Football teams, basketball teams, Orchestras CHE 460

18. CHARACTERISTICS OF AN EFFICIENT TEAM • Well defined goals and borders • Acceptance of the team goals by all members and willingness to achieve • Well balanced and complementary roles and responsibilities • Complementary expertise • Good communication and collaboration • Use of efficient tools and processes • Efficient leadership CHE 460

19. WHY TEAMWORK? • Participation and commitment of more people. • Creating synergy, and contributingsuccesses • More people feel ownership for the decisions. • More people are satisfied by the results • Help to improve communication and trust in workplace. • Help to meet the socialization needs(motivation) • .... CHE 460

20. TYPE OF TEAMWORK • Type of teams in terms of functions • Departmental work teams/quality circles • Cross-functional teams • Special task teams • Type of teams in terms of management • Traditional teams • Empowered teams • Self directed teams CHE 460

21. SUCCESS IN TEAMWORK High WORK DIMENSION Low High Low RELATION DIMENSION CHE 460

22. SYSTEMATIC APPROACH • Deming cycle= Quality cycle= PDCA cycle • In many area • Planning • Problem solving • Improvement • ....... CHE 460

23. LONG TERM FOCUS • Long and short term benefits may be conflicted, and there is a tendency “to save the day!” • Success comes in long term focus and efforts. • Strategic attitude • Strategic planning, strategic management, Hoshin Kanri, Policy deployment, MBO.... CHE 460

24. PROCESS-SYSTEM FOCUS • “80% of problems come from the system” • Deming Activities Inputs Output Information, energy, material, effort.... Information, energy, material, effort.... • Properties of a process • Has a purpose, all activities should be to achieve this purpose • Its elements interact with each other and contribute the result. • The total output is more valuable than total input. • Process in a company: purchasing, production, hiring, training... • Improving the process improve the results (product, service...) • Applications: process management, process improvement.... CHE 460

25. R+E together Improvement revolutionary Time CONTINUOUS IMPROVEMENT • Types of development • Revolutionary (radical) • Evolutionary (small/continuous) • Radical Change • System, technology... change • Top management is responsible • Small/continuous • All process and activities, all the times • Everybody is responsible evolutionary CHE 460

26. PREVENTIVE APPROACH • Preventing the problems is usually better than fixing after occurrence. • Examples: Vaccine to babies, preventive maintenance of cars • The same is usually true for product and services although it is not obvious. • To prevent the defected product reaching the customer • To reduce the cost • It is related to process-system approach (well operating process prevent the problems in the product and service) • This is the principle behind ISO 9000 CHE 460

27. FACT BASED DECISION-MAKING • For an effective decision • Collect data about the processes • Analyze • Decide/act • Applications • Quality tools • Statistics, statistical process control • Problem solving process • Continuous improvement process • .... CHE 460

28. DEMING’S 14 POINTS 1.Create constancy of purpose towards improvement. 2.Adopt the new philosophy. 3.Cease dependence on inspection. 4.Move towards a single supplier for any one item.5.Improve constantly and forever. 6.Institute training on the job. 7.Institute leadership. 8.Drive out fear. 9.Break down barriers between departments. 10.Eliminate slogans. 11.Eliminate management by objectives. 12.Remove barriers to pride of workmanship. 13.Institute education and self-improvement. 14.The transformation is everyone's job. CHE 460

29. TOOLS AND PROCESSES • Policy Deployment/Strategic Management • Quality Circles/team work • Suggestion systems • Problem solving process • Process Improvement techniques • 7 quality/management tools • Design techniques (QFD, Taguchi) • Production tech. (SPC,JIT, TPM) • Benchmarking • (ISO 9000, ISO 14000) • Cost of quality • ............. CHE 460

30. IMPLEMENTATION TQM MODELS (implementation framework ) • By experts or companies • Quality awards • Deming, M. Baldwrige, EFQM • Six Sigma • (certification systems) IMPLEMENTATION • Acceptance of philosophy • Training in principle and techniques • Implementation • Evaluating and correcting CHE 460

31. EFQM/TUSİAD-KALDER MODEL FUNDAMENTAL CONCEPTS OF EXCELLENCE • Results Orientation • Customer Focus • Leadership & Constancy of Purpose • Management by Processes & Facts • People Development & Involvement • Continuous Learning, Innovation & Improvement • Partnership Development • Public Responsibility CHE 460

32. EFQM/TUSİAD-KALDER MODEL Enablers Results People Results People Key Performence Results Policy & Strategy Customer Results Leadership Processes Partnership & Resources Society Results Innovation and Learning CHE 460

33. EFQM/TUSİAD-KALDER MODEL Leadership 1a. Leaders develop the mission, vision and values and are role models of a culture of Excellence 1b. Leaders are personally involved in ensuring the organization's management system is developed, implemented and continuously improved 1c. Leaders are involved with customers, partners and representatives of society 1d. Leaders motivate, support and recognize the organization's people Policy and Strategy 2a. Policy and Strategy are based on the present and future needs and expectations of stakeholders 2b. Policy and Strategy are based on information from performance measurement, research, learning and creativity related activities 2c. Policy and Strategy are developed, reviewed and updated 2d. Policy and Strategy are deployed through a framework of key processes 2e. Policy and Strategy are communicated and implemented CHE 460

34. EFQM/TUSİAD-KALDER MODEL People 3a. People resources are planned, managed and improved 3b People’s knowledge and competencies are identified, developed and sustained 3c People are involved and empowered 3d People and the organization have a dialogue 3e People are rewarded, recognized and cared for Partnerships and Resources 4a. External partnerships are managed 4b. Finances are managed 4c. Buildings, equipment and materials are managed 4d. Technology is managed 4e. Information and knowledge are managed CHE 460

35. EFQM/TUSİAD-KALDER MODEL Processes 5a. Processes are systematically designed and managed 5b. Processes are improved, as needed, using innovation in order to fully satisfy and generate increasing valuefor customers and other stakeholders 5c Products and Services are designed and developed based on customer needs and expectations 5d Products and Services are produced, delivered and serviced 5e Customer relationships are managed and enhanced RESULTS: • Customer results, People results, Society results  (a) Perception Measures (b) Performance Indicators • Key Performance Results  (a) Key Performance Outcomes (b) Key Performance Indicators CHE 460

36. SIX SIGMA SIGMA (σ): • Degree of variation (standard deviation); statistical measure of process capabilities in terms of defects; SIX SIGMA (6-σ) • Business Definition: A process to improve customer satisfaction and shareholder value by reducing variability in every aspect of business. • Technical Definition: A statistical term indicating that the process has the capability to produce only 0.002 defects per million CHE 460

37. SIX SIGMA CHE 460

38. Define Measure Control Analyse Improve SIX SIGMA-PROCESS CHE 460

39. SIX SIGMA-TOOLS CHE 460

40. SIX SIGMA-PROCESS CHE 460