Chapter 2

1. Chapter 2 TQM

2. Definition of TQM • Total Quality Management (TQM) is an enhancement to the traditional way of doing business. It is a proven technique to guarantee survival in world-class competition. • Total-Made up of the whole. • Quality-Degree of excellence a product or service provides • Management-Act, art, or manner of-handling, controlling, directing, etc. • TQM is the art of managing the whole to achieve excellence.

3. Definition of TQM • TQM is defined as both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization. • It is the application of quantitative methods and human resources to improve all the processes within an organization and exceed customer needs now and in the future. • TQM integrates fundamental management techniques, existing improvement efforts, and technical tools under a disciplined approach.

4. Basic concepts • 1. A committed and involved management to provide long-term top-to-bottom organizational support. • 2. An unwavering focus on the customer, both internally and externally. • 3. Effective involvement and utilization of the entire work force. • 4. Continuous improvement of the business and production processes. • 5. Treating suppliers as partners. • 6. Establishing performance measures for the processes.

5. Scope of TQM activity • Principle and practices • Tools and techniques

6. Leadership • To achieve never-ending quality improvement, the CEO must be directly involved in the organization and implementation of the quality improvement activity. • Behaviors or characteristics that successful leaders on page 28

7. Customer satisfaction • Specified the target customers • who is our customers? • What do they need? • How do we satisfy their needs? • What corrective action is necessary? • Customer feedback. Feedback program should have the objective to • Discover customer dissatisfaction. • Discover relative priorities of product quality with other attributes like price and delivery. • Identify customer needs. • Determine opportunities for improvement

8. Customer satisfaction • Customer complaints. Every company should have a procedure for using complaints. • Accept complaints • Feedback complaint information to all people in organization • Analyze complaints by doing the detective work • Eliminate the root of cause. More inspection may not corrective action. • Report result of all investigation and solution to everyone.

9. Customer satisfaction • Service after the sale • one characteristic of customer satisfaction occurs after the sale. We can increate it by being the best-beyond performance, delivery, and price. • Final comment • Know your customer, listen to them, and when necessary, educate them. So they can determine their needs and ultimately judge your ability to satisfy those needs.

10. Employee involvement • Project teams • Department or operational areas have standing or ad hoc teams. Standing team might have weekly meeting to discuss control chart patterns, complaints, downtime, on-time delivery, etc. The composition of as hoc teams will be a function of the desired improvement. • Education and training • Education and training is important for TQM. Different level of management, and different function would need different knowledge. • Timing for training is also important for level of success. • Suggestion system and Final comments must be provided to increase the potential for quality improvement.

11. CONTINUOUS PROCESS IMPROVEMENT • Process refers to business and production activities of all organizations. Business processes such as purchasing, engineering, accounting, and marketing are areas where nonconformance can represent an opportunity for substantial improvement. • Figure 2-3 shows input/output process model • Inputs may be materials, money, information, data, etc. Outputs may be information, data, products, services, etc.

12. CONTINUOUS PROCESS IMPROVEMENT • Outputs usually require performance measures. They are designed to achieve certain outcomes such as customer satisfaction. • Feedback is necessary to improve the process • Process definition begins with defining the internal and/or external customers.

13. CONTINUOUS PROCESS IMPROVEMENT • The process is the interaction of some combination of people, materials, equipment, method, measurement, and the environment to produce an outcome such as a product, service, or an input to another process. In addition to having measurable input and output, a process must have value-added activities and repeatability.

14. CONTINUOUS PROCESS IMPROVEMENT • There are five basic ways to define an improvement : • reduce resources, • reduce errors, • meet or exceed expectations of customers • make the process safer • make the process more satisfying to the person doing it.

15. CONTINUOUS PROCESS IMPROVEMENT • Problem-solving method applied to improve process has seven phases: • Identify the opportunity • Analyze the current process • Develop the optimal solution(s) • Implement changes

16. CONTINUOUS PROCESS IMPROVEMENT • Study the results • Standardize the solution • Plan for the future

17. Supplier partnership • In most companies, supplier management is very important. Especially in JIT environment, the supplier quality must be excellent, and the supplier must reduce the setup time. • Supplier selection criteria • Capability and capacity to provide quality product • Supplier’s control of its suppliers • Supplier’s accessibility

18. Performance measures • Performance measure are importance to identify potential project, to justify project resource allocation, and to assess the improvement results

19. Implementation • The TQM implementation process begins with senior management's and, most important, the CEO's commitment. Leadership is essential during every phase of the implementation process and particularly at the start. • If senior management has not been educated in the TQM concepts, that should be accomplished next. • Timing of the implementation process can be very important. Is the organization ready to embark on the total quality journey? There may be some foreseeable problems

20. Implementation • The formation of the quality council has to be established. • The development of core values, a vision statement, a mission statement, and a quality policy statement, with input from all personnel, should be completed first.

21. Seven Steps to Strategic Planning • 1. Customer Needs. The planning should discover the future needs of the customers. • 2. Customer Positioning. The planners determine where the organization wants to be in relation to the customers. • 3. Predict the Future. The planners must look into their crystal balls to predict future conditions that will affect their product or service. Demographics, economic forecasts, and technical assessments or projections are tools that help predict the future.

22. Seven Steps to Strategic Planning • 4. Gap Analysis. This step requires the planners to identify the gaps between the current state and the future state of the organization. • 5. Closing the Gap. The plan can now be developed to close the gap by establishing goals and responsibilities.

23. Seven Steps to Strategic Planning • 6. Alignment. As the plan is developed, it must be aligned with the mission, vision, and core values of the organization. • 7. Implementation. Resources must be allocated to collecting data, designing changes, and overcoming resistance to change and also monitoring activity to ensure that progress is being made.

24. TQM Compared to ISO 9001 • ISO 9000 is a Quality System Management Standard.  TQM is a philosophy of perpetual improvement.  The ISO Quality Standard sets in place a system to deploy policy and verifiable objectives.  An ISO implementation is a basis for a Total Quality Management implementation. Where there is an ISO system, about 75 percent of the steps are in place for TQM.  The requirements for TQM can be considered ISO plus.  Another aspect relating to the ISO Standard is that the proposed changes for the next revision (1999) will contain customer satisfaction and measurement requirements.  In short, implementing TQM is being proactive concerning quality rather than reactive.