BBA 410 TOTAL QUALITY MANAGEMENT

1. BBA 410 TOTAL QUALITY MANAGEMENT

2. HISTORICAL DEVELOPMENT OF TQM • Quality Management started with simple inspection-based systems. • Under such a system, one or more characteristics of a product are examined or tested and compared with specified requirements to assess its conformity • This system is used to appraise incoming products, manufactured components and assemblies at appropriate points in the production process

3. Cont • Products which do not conform to specifications may be scrapped, reworked or sold as lower quality items. • In some cases, inspection is used to grade the finished products.

4. Quality Control Stage • Under a system of quality control, product testing and documentation control become the way to ensure greater process control and reduced non-conformance to quality standard • While screening inspection was again, the main mechanism for preventing products which were outside the specifications from being shipped to customers, • Quality control measures led to greater process control and a lower incidence of non-conformance.

5. Quality Assurance Stage • The quality assurance stage came with the change away from product quality towards system quality. • In this stage, an organization sets up a system for controlling what is being done and the system is audited to ensure that it is adequate both in design and use.

6. Cont’ • A major part of this change is the use of both second-party and third-party audits to assess the efficiency of the system. • The major characteristics of this stage are the use of quality manuals, procedures, work instructions, quality planning, quality audits, etc. • The fundamental difference is that quality assurance is prevention-based while quality control is inspection-based.

7. Total Quality Management Stage • Total quality management stage is the highest level, involving the application of quality management principles to all aspects of the business. • Total quality management requires that the principles of quality management be applied to every branch and at every level in an organization.

8. Cont’ • Typical of an organization going through a total quality process would be a : • Clear and unambiguous vision, • Few interdepartmental barriers, • Time spent on training, • Excellent supplier and customer relations and the realization that quality is not just product quality but also the quality of the whole organization.

9. Concepts from Quality Gurus • Gurus insights into quality management provide a good understanding of quality management principles. (An example of one such proposition is: quality is a responsibility of the whole organization, rather than of the quality department.) • The following sections present the main ideas proposed by these quality gurus.

10. Contribution of Edward Deming To Quality Management • Deming also strongly promotes employee participation. These are set out in his 14 points or guidelines for managers (Deming, 1986).

11. 14 points by Deming • Create a constancy of purpose to improve products and services-take a longer term view, and innovate. • Adopt the new philosophy- accept the management style which promotes constant improvement. • Cease dependence on mass inspection-concentrate on improving processes.

12. Cont’ • End the practice of awarding business on the basis of price tag alone, building up relationships with fewer suppliers to understand jointly specifications of and uses for materials and other inputs. • Constantly and forever improve the system – search continually for problems in all processes. It is management’s job to work on the system.

13. Cont’ • Institute modern methods of training on the job – for all, to make the best use of every employee. • Institute modern methods of supervision – managers to focus on quality not numbers. • Drive out fear – so that people work more effectively.

14. Cont’ • Break down barriers between departments –team working to tackle problems; • 10. Eliminate numerical goals for the workforce – eliminate slogans and make reasonable requests of the workforce; • 11. Eliminate work standards and numerical quotas – focus on quality and provide support;

15. Cont’ • Remove barriers that rob workers of pride in their work - for example, defective materials, poor tools, lack of management support. • Institute a vigorous program of education and training – for continual updating and improvement. • Create a top management structure to push every day on the above 13 points; Top management commitment is where it begins and ends.

16. CONTRIBUTION OF PHILIP CROSBY TO QUALITY MANAGEMENT • Crosby defines quality as conformance to requirements. The requirements of a product need to be defined and specified clearly so that they are properly understood. • His maxim is that higher quality reduces costs and raises profits. Quality cost is used as a tool to help achieve that goal. Quality is measured by the quality cost. • His categories of quality costs are similar to those of Juran – prevention, appraisal and failure

17. Cont’ • The aim is zero defects, of getting it right first time. This requires an emphasis on prevention rather than after-the-fact inspection. • Crosby also presents the quality management maturity grid which may be used by organizations to assess their quality management maturity. • The five stages are: uncertainly, awakening, enlightenment, wisdom, and certainty.

18. Cont’ • These can be used to assess progress on a number of “measurement categories” such as management understanding and attitude, the status of quality in the organization, problem handling, cost of quality as a percentage of sales, quality improvement actions. • The quality management maturity grid and the cost of quality measures are the two main tools for managers to assess the seriousness of their quality problems.

19. Crosby Steps In Quality Improvement • Management commitment – to make clear where management stands on quality. • Quality Improvement team – to set up a high-level cross-functional team to run the quality improvement program. • Quality measurement – to provide a display/report of current and potential non-conformance problems in an objective manner. • The cost of quality – to define the ingredients of the cost of quality and explain its uses as a management tool.

20. Cont’ • Quality awareness – to provide a method of raising the personal concern for quality felt by all employees. • Corrective action – to provide a systematic method for resolving problems identified. • Zero defects (ZD) action- preparatory activities for ZD program – launching. • Employee education – define the type and extent of supervisor training.

21. Cont’ • ZD day - popularize ZD philosophy and raise quality consciousness. • Goal setting – goals and commitments are set by employees for themselves and their groups. • Error – cause removal – develops a method for employees to communicate with the management regarding error-cause removal.

22. Cont’ • Recognition of good work in the quality process – to appreciate employees with superior performance; • Quality councils – brings together the professional quality staff for a planned communication on a regular basis; • Do it over again – emphasize that quality improvement never ends and is a constant effort.

23. :Contribution Of Joseph Juran To Quality Management • Juran consider quality management as three basic processes (Juran Trilogy); quality planning, quality control, and quality improvement (Juran and Gryna, 1993). • Juran defines quality as “Quality is customer satisfaction” or “Fitness for use”.

24. Juran approach to Managing Quality • The sporadic problem is detected and acted upon by the process of quality control. • The chronic problem requires a different process, namely quality improvement. • Such chronic problems are traceable to an inadequate quality planning process.

25. The Sequence of activities required for Breakthrough and Control by Juran. • Breakthrough in attitudes – convincing those responsible that a change in quality level is desirable and feasible; • Discovery of the vital few projects – determining which quality problem areas are important; • Organizing for breakthrough in knowledge – defining the organizational mechanism for obtaining the knowledge for achieving a breakthrough;

26. Cont’ • Creation of a steering arm – defining and staffing a mechanism for directing the investigation for quality improvement. • Creation of a diagnostic arm – defining and staffing a mechanism for executing the technical investigation. • Diagnosis – collecting and analyzing the fact’s required and recommending the action needed.

27. Cont’ • Breakthrough in cultural pattern – determining the effect of a proposed change on the people involved and finding ways to overcome resistance to change. • Breakthrough in performance- obtaining agreement to take action. • Transition to the new level – implement the change.

28. Control activities by Juran • Choosing the control subject: i.e. choosing what we intend to regulate. • Choosing a unit of measure. • Setting a goal for the control subject. • Creating a sensor which can measure the control subject in terms of the unit of measure. • Measuring actual performance. • Interpreting the difference between actual performance and the goal. • Taking corrective action (if any) on the difference.

29. Planning activities by Juran • Establish the quality goal. • Identify customers. • Discover customer needs. • Develop product features. • Develop process features. • Establish process controls and transfer to operations.

30. CONTRIBUTION OF ARMOUND FEIGENBAUM TO QUALITY MANAGEMENT • He defines quality as the “total composite product and service characteristics of marketing engineering, manufacture and maintenance through which the product and service in use will meet the expectations of the customer” (Feigenbaum, 1988). • He states that total quality management covers the full scope of the product and service “life cycle” from product conception through production and customer service.

31. Four main stages Total Quality Control • Setting quality standards. • Appraising conformance to these standards. • Acting standards are not met. • Planning for improvement in these standards.

32. CONTRIBUTION to TAORE ISIKAWA to QUALITY MANAGEMENT • He defines quality as the “development, design production and service of a product than is most economical, most useful, and always satisfactory to the costumer”. • He argues that quality control extends beyond the product. • He advocates employee participation as the key to the successful implementation of TQM. • He states that quality begins and ends with education.

33. Seven Quality Tools by Ishikawa • Process flow chart. • Check sheet. • Histogram. • Pareto chart. • Cause – effect diagram (Ishikawa diagram). • Scatter diagram. • Control chart.

34. Fundamental Principles TQC: • Quality first – not short-term profits first. • Customer orientation – not producer orientation. • The next step is your customer – breaking down the barrier of sectionalism. • Using facts and data to make presentations – utilization of statistical methods. • Respect for humanity as a management philosophy, full participatory management. • Cross – functional management.

35. CONTRIBUTION GENICHI TAGUCHI TO QUALITY MANAGEMENT • Taguchi emphasizes an engineering approach to quality. • Taguchi defines quality as the “loss imparted to the society from the time a product is chipped”. Examples of loss include: failure to reach ideal performance, failure to meet the customer’s requirements, breakdowns, and harmful side-effects caused by products (Taguchi, 1986).

36. The key elements to Taguchi’s quality concepts • Quality improvement should concentrate on reducing the variation of the product’s key performance characteristics from its target value. • The loss suffered by a customer due to a product’s performance variation is often approximately proportional to the square of the deviation of the performance characteristics from its target value. • The final quality and cost of manufactured products are determined to a large extent by the engineering design of the product and the manufacturing process. • A product’s or process’s performance variation can be reduced by exploiting the non-linear effects of the product or process parameters on the performance characteristics.

37. CHAPTER 2 QUALITY CONCEPTS

38. Views of quality concepts • Transcendent View According to this view quality is neither “Mind” nor matter but a third entity that is independent of the two, we know it when we see it but we cannot say what it is. It is a condition of excellence that implies fine quality as distinct from poor quality. • User Based View Quality is like beauty and it is in the eyes of the beholder. Quality is a matter of subjective personal appreciation personal tastes and preferences.

39. Cont’ • Product Based View It consists of a number of objectives measurable, characteristics such as features reliability, efficiency and durability. The differences in quality amongst quality or attribute of a product refer to amount of unpaid attribute contained in each unit of priced attribute of products.

40. Cont’ • Manufacturing Based View Quality is conformance to standards that is set by official body of professional organization such as Kenya Bureau of Standards and ISO. According to this approach quality refer to conformance, customer’s requirement. Quality is the degree to which a specific product conforms to desire or a manufacturing specification.

41. Cont’ • Value Based View It is the bargain value or best. Quality is simply the best or the buying value or ones money or worth of product. The degree of excellence at acceptance cost. According to this approach quality means the best under two customers’ conditions.

42. CORRELATES OF QUALITY They are six correlate of quality: • Price • Market Share • Advertisement • Cost • Production • Profitability

43. Dimensions of Quality • Performance • Quality features • Durability • Reliability • Aesthetics • Conformance • Service • Perceived quality

44. COST of QUALITY • Prevention cost • Appraisal Cost • Internal Failure cost • External failure cost

45. Prevention Cost Prevention cost is normally planned and are incurred before the actual operation or production of goods and services. • Product or services requirements • Quality Assurance • Quality Planning • Inspection Equipment • Trainers • Miscellaneous cost

46. Appraisal cost • These are costs associated with suppliers and customer evaluation of purchased material, processes as well as products and services to assure conformance with specified requirement. • verification • Quality Audit • Inspection Equipment cost • Vender rating cost

47. Internal Failure Cost • These costs occur when results of work fail to reach the desired quality standards and are detected before being transferred to the final customer. • Wastes • Scrap • Rework or modification • Re-inspection • Poor grading failure analysis.

48. External failure cost • These are costs that occur when a product or service fails to reach the desired quality standards and is not detected until after transfer to the final consumer. • Repair and servicing of returned. • refused good. • loss of corporate image. • litigation costs. • lack of future prospects or repeat purchase.

49. CHAPTER 3 QUALITY MANAGEMENT PRINCIPLES

50. Quality Management Principles. History & content • The principles are derived from the collective experience and knowledge of the international experts who participate in ISO Technical Committee ISO/TC 176, Quality Management and quality assurance, which is responsible for developing and maintaining the ISO 9000 standards.