TOTAL QUALITY MANAGEMENT (TQM)

1. TOTAL QUALITY MANAGEMENT (TQM)

2. Total Quality Management • TQM is a philosophy which applies equally to all parts of the organization. • TQM can be viewed as anextension of the traditional approach to quality. • TQM places the customer at the forefront of quality decision making. • Greater emphasis on the roles and responsibilities of every member of staff within an organization to influence quality. • All staff are empowered.

3. Elements of TQM • Leadership • Top management vision, planning and support. • Employee involvement • All employees assume responsibility for the quality of their work. • Product/Process Excellence • Involves the process for continuous improvement.

4. Elements of TQM • Continuous Improvement • A concept that recognizes that quality improvement is a journey with no end and that there is a need for continually looking for new approaches for improving quality. • Customer Focus on “Fitness for Use” • Design quality • Specific characteristics of a product that determine its value in the marketplace. • Conformance quality • The degree to which a product meets its design specifications.

5. A fundamental concept of TQM • “A set of inter-related resources and activities which transform inputs into outputs.” • “Any activity that accepts inputs, adds values to these inputs for customers, and produces outputs for these customers. The customers may be either internal or external to the organization.”

6. DIMENSIONS OF QUALITY OR QUALITY CHARACTERISTICS what the customer looks in a product.DIMENSIONS OF QUALITY FOR PRODUCTS & SERVICES PerformanceFeatures Reliability Conformance Durability Serviceability

7. THE COST OF QUALITY PREVENTION COSTSQuality planning costsProduct design costsProcess costsTraining costsInformation costs

8. INTERNAL FAILURE COSTSScrap costsRework costsProcess failure costsProcess downtime costsPrice reduction THE COST OF QUALITY (CONT.)

9. EXTERNAL FAILURE COSTSCustomer complaint costsProduct return costsWarranty claim costsProduct liability costsLost sales costs THE COST OF QUALITY (CONT.)

10. TQM PRINCIPLES Customer-defined qualityManagement leadership toward qualityStrategic quality planningEmployee responsibilityContinuous quality improvementCooperation between the employees and the managementUse of statistical quality controlTraining

11. TQM & organizational Cultural Change Traditional Approach Lack of communication Control of staff Inspection & fire fighting Internal focus on rule Stability seeking Adversarial relations Allocating blame TQM Open communications Empowerment Prevention External focus on customer Continuous improvement Co-operative relations Solving problems at their roots

12. Gap Gap Perceived quality is poor Perceived quality is good Perceived quality is governed by the gap between customers’ expectations and their perceptions of the product or service Customers’ expectations for the product or service Customers’ perceptions of the product or service Customers’ expectations of the product or service Customers’ perceptions of the product or service Customers’ perceptions of the product or service Customers’ expectations for the product or service Expectations > perceptions Expectations = perceptions Expectations < perceptions Source: Slack et al. 2004

13. Image of product or service Word of mouth communications Previous Experience Customer’s perceptions concerning the product or service Customer’s expectations concerning a product or service Gap 4 Customer’s own specification of quality The actual product or service Gap 1 organization’s specification of quality Management’s concept of the product or service Gap 3 Gap 2 A “Gap” model of Quality Source: Parasuraman, Zeithman and Berry. 1985

14. Pareto Chart A method for identifying causes of poor quality No. of Occurrences per Month ABC Classification of Defects 100 80 60 40 20 Group A: Critical Defects Group B: Moderate Defects Group C: Minor Defects ประเภทข้อบกพร่อง

15. 2. A Process ChartA diagram showing job operations or a process Brush Body Fibers Fill Box Trim Make Inspect Insert Close Plastic Sheet Wrap Inspect Master Box Fold Up Reserve Master Pack Pallet Stack Deliver

16. Obstacles to Implementing TQM • Lack of a company-wide definition of quality. • Lack of a formalized strategic plan for change. • Lack of a customer focus. • Poor inter-organizational communication. • Lack of real employee empowerment. • Lack of employee trust in senior management. • View of the quality program as a quick fix. • Drive for short-term financial results. • Politics and turf issues.

17. PDCA Cycle repeated to createcontinuous improvement Performance Plan Do Act Check “Continuous” improvement Time

18. Continual improvement of the quality management system Customers (and other interested parties) Customers (and other interested parties) Management responsibility Measurement, analysis and improvement Resource management Satisfaction Requirements Input Output Product realisation Product Key: Value adding activity information flow Source: BS EN ISO 9001:2000

19. 3. A Check Sheet A list of causes of quality problems with the number of defects resulting from each cause Hour Defects 1 2 3 4 5 6 7 8 Cracks Dents Hairlines / / / / /// / // /// // //// / / // /// // / / / //

20. 4. A Histogram A bar chart showing the frequency of occurrence of causes of defects Dispersion No. of Occurrences Length

21. 5. A Scatter DiagramA graph showing how two process variables relate to each other Productivity Absentees

22. 6. A Control Chart and Statistical Process Control (SPC)Monitoring of a production process using the statistical quality control technique UCL LCL

23. 7. A Fishbone Diagram A chart showing the different categoriesof problem causes. Causes Materials Method Effect Quality Problems Manpower Machine