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Total Quality Management (TQM)

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Total Quality Management (TQM)

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  1. TOTAL QUALITY MANAGEMENT © Operational Excellence Consulting. All rights reserved.

  2. NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg LEARNING OBJECTIVES 1 5 Explain the meaning of Total Quality Management (TQM) Describe the key business excellence and quality management models 2 6 Identify key leaders in the field of quality and their philosophies Describe Total Quality leadership attitudes and behaviors 3 7 Identify characteristics of the TQM philosophy Identify methods and tools for Total Quality Understand the importance of process management and measuring the cost of quality 4 8 Define the steps for TQM implementation 2 © Operational Excellence Consulting

  3. CONTENTS 1 6 Business Excellence & Quality Management Models Introduction to TQM 2 7 Customer Focus Total Quality Leadership 3 8 Employee Involvement & Empowerment TQM Implementation 4 9 Process Management Methods & Tools for Total Quality 5 10 Cost of Quality Key Takeaways 3 © Operational Excellence Consulting

  4. “ Quality is not an act, it is a habit.” ARISTOTLE 4 © Operational Excellence Consulting

  5. CHANGING SCENARIO OF ORGANIZATIONS Where is your organization now? YESTERDAY TODAY TOMORROW Quality Control Quality Management Innovation & Quality Incremental Improvement Continuous Improvement Breakthrough Improvement Cost Reduction Cost Management Value Creation Use of Data Use of Information Use of Knowledge QCs at Rank & File QCs Across Departments IQCs Across Organizations A Committed Workforce A Quality Workforce A World-class Workforce Training for Employment Training for Development Training for Employability Problem-solving Mindset A Quality Mindset An Innovation Mindset 5 © Operational Excellence Consulting

  6. THE EVOLUTION OF TOTAL QUALITY MANAGEMENT Learning Organizations Business Excellence Models Lean & Six Sigma Benchmarking & Best Practices Business Process Reengineering Total Quality Management Quality System Design of Experiments Statistical Process Control Quality Control Industrial Engineering 1900’s 1940’s 1960’s 1980’s 2000’s 6 © Operational Excellence Consulting

  7. WHAT IS TOTAL QUALITY MANAGEMENT (TQM)? A management philosophy that Quality and Customers are fundamental business principles for the company Quality means providing our external and internal customers with products and services that fully satisfy their requirements Aims at continuous improvement through systematic company-wide employee involvement that will deliver the best product and service with total customer satisfaction at the lowest cost 7 © Operational Excellence Consulting

  8. TQM IS NOT A FAD Successful Lean organizations in Japan are built on a strong foundation of TQM. 8 © Operational Excellence Consulting

  9. CHARACTERISTICS OF TQM Focuses on meeting customers’ needs, by providing quality products and services at a reasonable cost Focuses on continuous improvement Recognizes role of everyone in the organization Views organization as an integrated system with a common aim Emphasizes teamwork Focuses on the way tasks are accomplished 9 © Operational Excellence Consulting

  10. WHAT TQM IS NOT ● ● ● ● A flavor of the month A machine vision system The job of the QA department Requiring supervisors to constantly “police” the operators ● ● 100 percent inspection ● A rigorous Six Sigma Green Belt certification program An ISO 9000 quality management system ● Another one of those “Extra Curricula Activities” ● Churning out tons of Standard Operating Procedures 10 © Operational Excellence Consulting

  11. QUALITY IN VARIOUS INDUSTRIES AIRLINES HEALTHCARE POSTAL SERVICES § On-time § Correct diagnosis § Fast delivery § Comfortable § Low waiting time § Correct delivery § Low-cost service § Low cost § Cost containment INSURANCE TELCO CONSUMER PRODUCTS Defect-free § Payout on-time § Low outage § Properly made § Fast processing § Low-cost service § Cost effective § Reasonable cost § Customer service § 11 © Operational Excellence Consulting

  12. IMPETUS FOR IMPLEMENTING TQM INCREASED COMPETITIVENESS CUSTOMER DEMANDS Impetus for TQM CHANGING PRODUCT MIX GLOBALLY INTEGRATED ECONOMY 12 © Operational Excellence Consulting

  13. THE QUALITY GURUS J. M. Juran W. E. Deming A. V. Feigenbaum THE QUALITY PIONEERS P. B. Crosby K. Ishikawa G. Taguchi 13 © Operational Excellence Consulting

  14. “ production process.” Quality comes not from inspection, but from improvement of the W. EDWARDS DEMING 14 © Operational Excellence Consulting

  15. DEMING’S 14 POINTS FOR TQM Create constancy of purpose for improving products and services. 1 8 Drive out fear. 2 9 Adopt the new philosophy. Break down barriers between staff areas. Cease dependence on inspection to achieve quality. Eliminate slogans, exhortations and targets for the workforce. 3 10 End the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier. Eliminate numerical quotas for the workforce and numerical goals for management. 4 11 Remove barriers that rob people of pride of workmanship, and eliminate the annual rating or merit system. Improve constantly and forever every process for planning, production and service. 5 12 Institute a vigorous program of education and self- improvement for everyone. 6 13 Institute training on the job. Put everybody in the company to work accomplishing the transformation. 7 14 Adopt and institute leadership. 15 © Operational Excellence Consulting

  16. “ All improvement happens project by project and in no other way.” JOSEPH M. JURAN 16 © Operational Excellence Consulting

  17. JURAN TRILOGY –QUALITY PLANNING, QUALITY CONTROL & QUALITY IMPROVEMENT Quality Control (During Operations) Quality Planning Sporadic Spike Original Zone of Quality Control Cost of Poor Quality Improvement Quality New Zone of Quality Control Chronic Waste Time Lessons Learned 17 Source: J. M. Juran © Operational Excellence Consulting

  18. JURAN’S 10 STEPS TO QUALITY IMPROVEMENT Build awareness of both the need for improvement and opportunities for improvement 1 1 6 6 Report progress 2 2 7 7 Set goals for improvement Give recognition 3 3 8 8 Organize to meet goals that have been set Communicate results 4 4 9 9 Provide training Keep score Maintain momentum by building improvement into company’s regular systems 5 5 10 10 Implement projects aimed at solving problems 18 Source: J. M. Juran © Operational Excellence Consulting

  19. “ Quality has to be caused, not controlled.” PHILIP B. CROSBY 19 © Operational Excellence Consulting

  20. CROSBY’S FOUR ABSOLUTES OF QUALITY 2 1 Quality comes from prevention, which is a result of training, discipline, example, leadership and more. Quality means conformance to requirements. 4 3 Quality performance standard is zero defects. Errors should not be tolerated. Quality measurement is the price of non-conformance. 20 © Operational Excellence Consulting

  21. CROSBY’S 14 STEPS TO QUALITY IMPROVEMENT Make it clear that management is committed to quality for the long term. Train supervisors to carry out their responsibilities in the quality program. 1 8 Hold a Zero Defects Day to ensure all employees are aware there is a new direction. 2 9 Form cross-departmental quality teams. Encourage individuals and teams to establish both personal and team improvement goals. 3 10 Identify where current and potential problems exist. Assess the cost of quality and explain how it is used as a management tool. Encourage employees to tell management about obstacles they face in trying to meet quality goals. 4 11 Increase the quality awareness and personal commitment of all employees. 5 12 Recognize employees who participate. Implement quality councils to promote continual communication. 6 13 Take immediate action to correct problems identified. Repeat everything to illustrate that quality improvement is a never-ending process. 7 14 Establish a zero defects program. 21 © Operational Excellence Consulting

  22. “ control, but the proof of the pudding is still in the eating.” As with many other things, there is a surprising amount of prejudice against quality KAORU ISHIKAWA 22 © Operational Excellence Consulting

  23. ISHIKAWA’S 6 PRINCIPLES FOR QUALITY TRANSFORMATION Using facts and data to make presentations – utilization of statistical methods. 1 1 4 4 Quality first – not short-term profit first. Consumer orientation – not producer orientation. Think from the standpoint of the other party. Respect for humanity as a management philosophy – full participatory management. 2 2 5 5 The next process is your customer – breaking down the barrier of sectionalism. 3 3 6 6 Cross-function management. 23 Source: Kaoru Ishikawa © Operational Excellence Consulting

  24. COMMONALITY OF THEMES OF QUALITY GURUS Quality Cannot Be Inspected In Leadership Commitment Total Employee Involvement Quality First Approach Inspection is never the answer to quality improvement, nor is “policing” Involvement of leadership and top management is essential to the necessary culture of commitment to quality A program for quality requires organization- wide efforts and long term commitment, accompanied by the necessary investment in training Quality come first, before schedules and costs 24 © Operational Excellence Consulting

  25. ISO 9001 QUALITY MANAGEMENT PRINCIPLES 1. Customer Focus 7. 2. Relationship Management Leadership QUALITY MANAGEMENT PRINCIPLES 6. 3. Evidence-based Decision Making Engagement of People 5. 4. Improvement Process Approach 25 © Operational Excellence Consulting

  26. TRADITIONAL INSPECTION IS A POOR SUBSTITUTE FOR QUALITY Traditional 100% inspection does not provide 100% defect-free products. 26 © Operational Excellence Consulting

  27. ACTIVITY 1: THE INSPECTION EXERCISE ACTION! 1. Individually, count the number of ‘f’s in the following paragraph: Time allowed: 1 min The necessity of training farm hands for first-class farms in the fatherly handling of farm livestock is foremost in the minds of farm owners. Since the forefathers of the farm owners trained the farm hands for first-class farms in the fatherly handling of farm livestock, the farm owners feel they should carry on with the family tradition of training farm hands of first-class farms in the fatherly handling of farm livestock because they believe it is the basis of good fundamental farm management. 2. How many ‘f’s have you counted? Has everyone got the same number? Can quality be inspected in? Is it easy to catch defects? 27 © Operational Excellence Consulting

  28. TQM IS A PARADIGM SHIFT Traditional Organization TQM Organization Strategy Profit-focused Customer Focus Structure Hierarchical Flat and Flexible System Piece-meal Integrated and Aligned Style Top-down Top-down and Bottom-up Staff Organized by Functions Organized by Teams Skills Narrow Broad Shared Values Less Congruent / Reactive More congruent / Proactive 28 © Operational Excellence Consulting

  29. TQM IMPERATIVES Management Commitment Management- By-Fact Customer Focus TQM IMPERATIVES Continuous Improvement Teamwork 29 © Operational Excellence Consulting

  30. ABOUT OPERATIONAL EXCELLENCE CONSULTING Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. Based in Singapore, the firm’s mission is to create business value for organizations through innovative design and operational excellence management training and consulting solutions. For more information, please visit www.oeconsulting.com.sg © Operational Excellence Consulting

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