Chapter-2.pptx total quality management system

Total quality management

1. By- Dr. Niharika Gupta Assistant Professor, Department of Mechanical Engineering, NIT Hamirpur Contact no. 9958114561 ME-381: Total Quality Management Chapter-2 : Conceptualization of TQM

2. Definitions of Quality 2 Quality means different to different people. There are five ways of looking at quality definitions: I. Transcendent Definition : "Quality is neither mind nor matter, but a third entity independent of the two…even through Quality cannot be defined, you know what it is." II. Product-Based Definition: "Quality refers to the amounts of the unpriced attributes contained in each unit of the priced attribute." III. User-Based Definition: "Quality is fitness for use." (J.M. Juran , ed., Quality Control Handbook, p2). IV. Manufacturing-Based Definition: "Quality [means] conformance to requirements." "Quality is the degree to which a specific product conforms to a design or specification." V. Value-Based Definition: "Quality means best for certain customer conditions. These conditions are (a) the actual use and (b) the selling price of the product."

3. What is TQM? TQM is the enhancement to the traditional way of doing business. It is a proven technique to guarantee survival in the world-class competition. TQM is for the most part common sense. Analyzing three words (TQM), we have: 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. Therefore, TQM is the art of managing the whole to achieve the excellence. 3

4. Continued…. TQM is defined as both philosophy and a set of guiding principles that represents 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 future. TQM integrates fundamental management techniques, existing improvement efforts, and technical tools under disciplined approach. 4

5. In trying to define TQM, is it is well worth considering the relevance and meaning of the three words in its’ title.: Total - The responsibility for achieving Quality rests with everyone a business no matter what their function. It recognizes the necessity to develop processes across the business, that together lead to the reliable delivery of exact, agreed customer requirements. This will achieve the most competitive cost position and a higher return on investment. Quality - The prime task of any business is to understand the needs of the customer, then deliver the product or service at the agreed time, place and price, on every occasion. This will retain current customers, assist in acquiring new ones and lead to a subsequent increase in market share. Management -- Top management lead the drive to achieve quality for customers, by communicating the business vision and values to all employees; ensuring the right business processes are in place; introducing and maintaining a continuous improvement culture. 5

6. Antecedents of Modern Quality Management Guilds of Medieval Europe (From the end of 13 th Century to Early 19 th Century) The Industrial Revolution (From the end of 17 th Century to 1800s) The World War II (From 1938 to 1945) Post World War Era (After 1945) 6

7. Guilds of Medieval Europe (From the end of 13 th Century to Early 19 th Century) 7

8. Guilds of Medieval Europe (From the end of 13 th Century to Early 19 th Century) 8

9. The Industrial Revolution (From the end of 17 th Century to 1800s) Craftsmanship The Factory System The Taylor System 9

10. Industrial Revolution: The Craftsmanship 10

11. World War II 11

12. Post World War II The Birth of Total Quality Management The birth of the Total Quality Control in US was in direct response to a quality revolution in Japan following WW-II as Japanese manufacturers converted from Producing Military Goods for internal use to producing civilian goods for trade. At first Japan had a widely held reputation for shoddy exports, and their goods were shunned by international markets. This led Japanese organizations to explore new ways of thinking about quality. And from here starts the era of “Quality Gurus”! 12

13. What is a quality guru? A guru, by definition, is a good person, a wise person and a teacher. A quality guru should be all of these, plus have a concept and approach to quality within business that has made a major and lasting impact. These gurus have done, and continue to do, that, in some cases, even after their death. 13

14. The Era of Quality Gurus There have been three groups of gurus since the 1940’s: Early 1950’s : Americans who took the messages of quality to Japan Late 1950’s: Japanese who developed new concepts in response to the Americans 1970’s-1980’s: Western gurus who followed the Japanese industrial success 14

15. J. Edward Deming Joseph M. Juran The Americans who went to Japan: Armand V Feigenbaum 15

16. 16 PRIMARY ELEMENTS oF TQM TQM can be summarized as a management system for a customer-focused organization that involves all employees in continual improvement. It uses strategy, data, and effective communications to integrate the quality discipline into the culture and activities of the organization. Many of these concepts are present in modern  quality management systems , the successor to TQM. Here are the 8 principles of total quality management: Customer-focused: The customer ultimately determines the level of quality. No matter what an organization does to foster quality improvement—training employees, integrating quality into the design process, or upgrading computers or software—the customer determines whether the efforts were worthwhile.

17. 17 Total employee involvement: All employees participate in working toward common goals. Total employee commitment can only be obtained after fear has been driven from the workplace, when empowerment has occurred, and when management has provided the proper environment. High-performance work systems integrate continuous improvement efforts with normal business operations. Self-managed work teams are one form of empowerment. Process-centered: A fundamental part of TQM is a focus on process thinking. A process is a series of steps that take inputs from suppliers (internal or external) and transforms them into outputs that are delivered to customers (internal or external). The steps required to carry out the process are defined, and performance measures are continuously monitored in order to detect unexpected variation.

18. 18 Integrated system: Although an organization may consist of many different functional specialties often organized into vertically structured departments, it is the horizontal processes interconnecting these functions that are the focus of TQM. Micro-processes add up to larger processes, and all processes aggregate into the business processes required for defining and implementing strategy. Everyone must understand the vision, mission, and guiding principles as well as the quality policies, objectives, and critical processes of the organization. Business performance must be monitored and communicated continuously. An integrated business system may be modeled after the Baldrige Award criteria and/or incorporate the ISO 9000 standards. Every organization has a unique work culture, and it is virtually impossible to achieve excellence in its products and services unless a good quality culture has been fostered. Thus, an integrated system connects business improvement elements in an attempt to continually improve and exceed the expectations of customers, employees, and other stakeholders

19. 19 Strategic and systematic approach : A critical part of the management of quality is the strategic and systematic approach to achieving an organization’s vision, mission, and goals. This process, called strategic planning or strategic management, includes the formulation of a strategic plan that integrates quality as a core component. Continual improvement: A large aspect of TQM is continual process improvement. Continual improvement drives an organization to be both analytical and creative in finding ways to become more competitive and more effective at meeting stakeholder expectations. Fact-based decision making: To know how well an organization is performing, data on performance measures are necessary. TQM requires that an organization continually collect and analyze data in order to improve decision making accuracy, achieve consensus, and allow prediction based on past history.

20. 20 Communications: During times of organizational change, as well as part of day-to-day operation, effective communications plays a large part in maintaining morale and in motivating employees at all levels. Communications involve strategies, method, and timelines.

21. 21 BENEFITS OF TOTAL QUALITY MANAGEMENT Benefits and advantages of Total quality management: Strengthened competitive position Adaptability to changing or emerging market conditions and to environmental and other government regulations Higher productivity Enhanced market image Elimination of defects and waste Reduced costs and better cost management Higher profitability Improved customer focus and satisfaction Increased customer loyalty and retention Increased job security Improved employee morale Enhanced shareholder and stakeholder value Improved and innovative processes Total Quality Management (TQM) Benefit: Methodology Creates an Adaptive Organization

22. 22 TQM IMPLEMENTATION AND SYSTEMS When planning and implementing a total quality management system or quality management strategy, there is no one solution for every situation or workplace. Each organization is unique in terms of the culture, management practices, and the processes used to create and deliver its products and services. Quality management strategy vary from organization to organization

23. 23 GENERIC STRATEGY MODEL FOR IMPLEMENTING TQM SYSTEMS Top management learns about and decides to commit to TQM. TQM is identified as one of the organization’s strategies. The organization assesses current culture, customer satisfaction, and quality management systems. Top management identifies core values and principles to be used, and communicates them. A TQM master plan is developed on the basis of steps 1, 2, and 3. The organization identifies and prioritizes customer demands and aligns products and services to meet those demands. Management maps the critical processes through which the organization meets its customers’ needs.

24. 24 Management oversees the formation of teams for process improvement efforts. The momentum of the TQM effort is managed by the steering committee. Managers contribute individually to the effort through hoshin planning, training, coaching, or other methods. Daily process management and standardization take place. Progress is evaluated and the plan is revised as needed. Constant employee awareness and feedback on status are provided and a reward/recognition process is established.

25. 25 EXAMPLES OF TOTAL QUALITY MANAGEMENT SYSTEM STRATEGIES Imprints of TQM concepts can be found in modern approaches to quality management, such as the  Malcolm Baldrige National Quality Award (MBNQA) criteria,  ISO 9001 ,  Six Sigma  and  lean  manufacturing, as well as the examples below. Total Quality Management (TQM) Implementation Strategies

26. 26 Strategy 1: The TQM element approach The TQM element approach takes key business processes and/or organizational units and uses the tools of TQM to foster improvements. This method was widely used in the early 1980s as companies tried to implement parts of TQM as they learned them. Examples of this approach include quality circles,  statistical process control , Taguchi methods, and  quality function deployment . Strategy 2: The guru approach The guru approach uses the teachings and writings of one or more of the leading quality thinkers as a guide against which to determine where the organization has deficiencies. The organization makes appropriate changes to remedy those deficiencies. For example, managers might study  Deming’s 14 points   or attend the Crosby College. Afterward, they would work on implementing the approach learned.

27. 27 Strategy 3: The organization model approach In this approach, individuals or teams visit organizations that have taken a leadership role in TQM and determine their processes and reasons for success. They then integrate these ideas with their own ideas to develop an organizational model adapted for their specific organization. This method was used widely in the late 1980s and is exemplified by the initial recipients of the Malcolm Baldrige National Quality Award. Strategy 4: The Japanese total quality approach Organizations using the Japanese total quality approach examine the detailed implementation techniques and strategies employed by Deming Prize-winning companies and use this experience to develop a long-range master plan for in-house use. This approach was used by Florida Power and Light—among others—to implement TQM and to compete for, and win, the Deming Prize.

28. 28 Strategy 5: The award criteria approach When using this model, an organization uses the criteria of a quality award (e.g., the Deming Prize, the European Quality Award, or the Malcolm Baldrige National Quality Award), to identify areas for improvement. Under this approach, TQM implementation focuses on meeting specific award criteria.

29. 29 Quality Information System (QIS) A Quality Information System (QIS) is an integrated set of activities that provides timely, accurate, relevant, comprehensive, and reliable information about the quality of products or services produced by organizations. A QIS can provide decision support tools to help managers make informed decisions about their operations. It also helps them identify areas where they need improvement in order to meet customer expectations and improve overall performance. The Quality Information System consists of all those actions taken to collect, analyze, interpret, and use quality-related information to manage processes and systems so that they produce consistently high-quality products or services. The term "information" refers to any type of knowledge that has been acquired through experience or observation. This includes both quantitative and qualitative aspects of product or service characteristics. In addition to collecting and analyzing this information, it should be used to develop strategies to improve the quality of the process itself.

30. 30 Information System for Design Quality A design quality information system is an integrated set of actions that collects, analyzes, interprets, and uses design-related information to manage the design process to produce consistently high-quality products. It may include: Data collection - gathering information (design inputs) from various sources Analysis - interpreting the data to determine its significance Interpretation - determining ways to apply the results to current and future designs Application - applying the results to current and new designs Communication - presenting the results to others involved in the design process   A Design QIS must be flexible enough to accommodate changing requirements.

31. 31 Information System for Manufacturing A manufacturing quality information system is an integral part of the production process. It collects, analyzes, and interprets data related to the production process so that the operation can be improved. This information could be collected and analyzed at different levels within the organization. For example, it might be gathered by plant supervisors, engineers, and line workers. It could then be interpreted by line supervisors, engineering staff, and management. Finally, it could be applied by line supervisors, engineers, and management.

32. 32 In general, the following are some of the functions of a manufacturing quality information system: Collecting and analyzing data on product defects, equipment failures, and other problems encountered during production Interpreting these data to determine how to prevent similar issues from occurring again Providing feedback to operators and maintenance personnel regarding the causes of the problem and what steps can be taken to avoid recurrence Communicating with customers and suppliers regarding the status of the operation Using the information to plan improvements in the process Developing reports that summarize the data and present it in a form that will allow people to understand it Evaluating the effectiveness of the system

33. 33 Integrating the QIS into the overall Quality Management System The QIS should be designed so that it can easily integrate with other systems, such as the production information systems. In addition, it is recommended that a QIS integrates with existing data repositories to allow for seamless integration of data. Finally, the QIS should have an easy-to-use interface and a clear view onto all relevant data. This requires a multidisciplinary approach. The information system developers and disciplines generating and using the data must work together to create the necessary infrastructure.

34. 34 WHAT IS A QUALITY PLAN? A quality plan is a document, or several documents, that together specify quality standards, practices, resources, specifications, and the sequence of activities relevant to a particular product, service, project, or contract. Quality plans should define: Objectives to be attained (for example, characteristics or specifications, uniformity, effectiveness, aesthetics, cycle time, cost, natural resources, utilization, yield, dependability, and so on) Steps in the processes that constitute the operating practice or procedures of the organization Allocation of responsibilities, authority, and resources during the different phases of the process or project Specific documented standards, practices, procedures, and instructions to be applied Suitable testing, inspection, examination, and audit programs at appropriate stages A documented procedure for changes and modifications to a quality plan as a process is improved A method for measuring the achievement of the quality objectives Other actions necessary to meet the objectives

35. 35 CoNtinued … At the highest level, quality goals and plans should be integrated with overall strategic plans of the organization. As organizational objectives and plans are deployed throughout the organization, each function fashions its own best way for contributing to the top-level goals and objectives. At lower levels, the quality plan assumes the role of an actionable plan. Such plans may take many different forms depending on the outcome they are to produce. Quality plans may also be represented by more than one type of document to produce a given outcome. Elements of a Strategic Quality Plan

36. 36 HOW TO WRITE A QUALITY PLAN? Quality assurance or quality control plans evaluate and/or modify an organization’s procedures to help ensure they provide the desired results. Quality control plans are often viewed as a set of instructions that should be followed. They document the planning, implementation, and assessment procedures for a project, as well as any QA or QC activities. Some areas may be more detailed than others, based on the project, process, or organization’s needs. It is important to note that each plan is unique based on the organization’s needs and their quality management system (QMS). However, quality control plans should always have a structure that permits improvements to the plan. This allows employees to offer input on how to improve efficiency and quality. In addition, the plan should be reviewed by others periodically, including stakeholders, to ensure the plan is comprehensive

37. 37 Quality control plans generally include detailed information on: An overview or introduction of the project or process detailing the background, need, scope, activities, and important dates or deadlines The organizational structure or org chart detailing necessary team members, including external vendors Each team member’s responsibilities and qualifications necessary to fulfill stated duties Work verification (e.g., who is responsible for carrying out a task, as well as who is responsible for checking the work) Supplier standards (e.g., specify the standards the prospective suppliers must meet before they can bid on a contract, such as  ISO 9001:2015 ) A list of qualified suppliers Testing parameters Three Elements of a Quality Plan

38. 38 Performance standards and how performance will be documented Acceptance criteria Deliverables A feedback mechanism for internal and/or external customer feedback Quality control procedures Audits Training (e.g., overview, job-specific, or refresher training) Corrective action and preventive actions, including the person(s) responsible for CAPA Suggested corrective action Required notifications Any references or related materials, including performance ratings or performance reports

39. 39 IMPORTANCE OF QUALITY MANAGEMENT SYSTEM IN MANUFACTURING INDUSTRIES ENSURING CONSISTENCY WITH QUALITY: A manufacturing organization is less likely to make mistakes the more consistent it is. That is a significant advantage of using a quality management system. It begins by creating procedures that are effective. The manufacturer then offers training to its staff members so that everyone understands the procedures to better. Additionally, the quality management system identifies risks and makes sure that procedures are in place to reduce them so they don’t have an influence on the client. INCREASED OPERATIONS EFFICIENCY : Quality certifications help to ensure that your daily operations are more efficient by reducing errors, resources and wasted time. Quality Management System generates the need to continually analyze the procedures and train your staff in order to find areas of your company that can be improved. More improvements equate to greater operational effectiveness, reduced error rates, fewer performance problems, an better emphasis on process outcomes, decreased waste, quicker turnaround times, and lower operating costs. Operational effectiveness and a decrease in reworks also translate into higher business productivity. As a result, quality certifications eventually influence how well your company performs in terms of sales and profitability.

40. 40 IMPROVES CUSTOMER FEEDBACK PROCESS : Quality Management System ensure consumers’ issues or inquiries are satisfactorily resolved consistently without leaving them feeling let down. Therefore, it becomes even more crucial for your company to integrate customer complaint management as a key component of your quality management program after earning certifications. It will guarantee that you are paying attention to consumer complaints and using them as a chance to enhance the qualities of your items and stop any similar problems from happening again in the future. EMBED A CULTURE OF CONTINUOUS IMPROVEMENT : Most quality management systems demand that you undertake quality audits to make sure that all processes, procedures, and policies are operating at peak efficiency. This enables a provider to keep tabs on and evaluate every stage of production, react to changing technical advancements, and create an all-encompassing culture of continuous development. All of these involve teamwork from the workforce as well as management’s leadership and governance. As a result, the quality certifications help your firm establish a cohesive culture.

41. 41 INCREASE YOUR ACCESS TO GLOBAL MARKET : The majority of manufacturing companies supply large corporations with goods or parts. When a manufacturing company has quality certification, it is simpler to obtain supply contracts with major corporations. When B2B companies look for suppliers, the first crucial factor is quality certificates. They are constantly seeking for possible suppliers who appear trustworthy, so they do not need to conduct any additional research or investigations to confirm their reliability. Therefore, having credentials makes it simple for your business to land contracts with major corporations and even initiatives in the public sector. MAKES SURE INDUSTRY REGULATIONS ARE FOLLOWED – CERTIFICATE: When your manufacturing business receives internationally recognized Quality Management certificate, it inspires confidence in your current and potential consumers. They receive the impression that your business complies with important industry standards and ethical behavior. Not only that, but for sustenance of the certifications, your business is maintaining accurate records and document its continuing operations and practices. Documentation is evidence that their procedures follow the rules set forth by the sector.