for all company employeesd Fundamental of TQM.ppt

for awerness

1. FUNDAMENTALS OF
QUALITY AND TQM

2. Quality
The ability of a product or service to meet
customer needs
A product or a service that is free from defects
is said to possess quality
Non-inferiorityorsuperiorityof something
Also defined as the fitness for purpose

3. Defining Quality
According to American Society for Quality, “The
totality of features and characteristics of a
product or service that bears on its ability to
satisfy stated or implied needs.”
The definition of quality can either be user
based, product based or based upon the views
of production managers

4. User Based Definitions
“Quality lies in the eyes of the beholder”
To the users and marketing people, higher
quality means better performance, nicer
features, and other improvements
(sometimes costly)

5. Quality As Viewed
By Production Managers
Quality is manufacturing based
Production managers believe that quality
means conforming to standards and “making
it right the first time”

6. Product Based Quality
Quality is a precise and measurable variable
A really good ice-cream will have high levels
of butterfat

7. Dimensions Of Quality
Eight dimensions
Proposed by David Garvin
Some are mutually reinforcing, whereas
others are not
Understanding the trade-offs (between these
dimensions) can help build a competitive
advantage

8. Performance
Refers to a product's primary operating
characteristics
Involves measurable attributes
Brands can usually be ranked objectively on
individual aspects of performance

9. Features
Additional characteristics that enhance the
appeal of the product or service to the user

10. Reliability
The likelihood that a product will not fail
within a specific time period
A key element for users who need the
product to work without fail

11. Conformance
The precision with which the product or
service meets the specified standards

12. Durability
Measures the length of a product’s life
Estimation of durability is more complicated if
the product can be repaired
The item will be used until it is no longer
economical to operate it
This happens when the repair rate and the
associated costs increase significantly

13. Serviceability
The speed with which the product can be put
into service when it breaks down

14. Aesthetics
The subjective dimension indicating the kind
of response a user has to a product
Represents the individual’s personal
preference

15. Perceived Quality
The quality attributed to a good or service
based on indirect measures
The user’s perception

16. Ways Quality Improves Profitability
Sales Gains
–Improved response
–Higher Prices
–Improved reputation
Reduced Costs
–Increased productivity
–Lower rework and scrap
costs
–Lower warranty costs
Improved
Quality
Increased
Profits

17. Costs Of Quality
The costs of doing things wrong, i.e. the price of
non-conformance
Covered under two broad areas known as
Quality Cost Areas

18. Quality Cost Areas
Suggested by Armand VallinFeigenbaum
Costs of control (costs of conformance)
•Prevention costs
•Appraisal costs
Costs of failure of control (costs of non-
conformance)
•Internal failure costs
•External failure costs

19. Prevention Costs
Arise from efforts to keep defects from
occurring at all
E.g., quality planning, investment in quality-
related information systems, quality training
and workforce development, product-design
verification, etc.

20. Appraisal Costs
Arise from detecting defects via inspection,
test, audit
E.g., testing and inspection of purchased
material, inspection and testing of
manufactured products, set-up for testing,
quality audits, field testing, etc.

21. Internal Failure Costs
Arise from defects caught internally and dealt
with by discarding or repairing the defective
items
E.g., scrap, rework, material procurement
costs, etc.

22. External Failure Costs
Arise from defects that actually reach
customers
E.g., complaints in warranty, complaints out
of warranty, product service, product liability,
product recall, loss of reputation, etc.

23. RELIABILITY AND MAINTENANCE

24. Reliability And Maintenance
Reliability:The probability that a product,
system or service will perform its intended
function adequately for a specified period of time,
operating in a defined operating environment
without failure
Maintenance:All actions necessary for retaining
an item, or restoring to it, a serviceable condition,
include servicing, repair, modification, overhaul,
inspection and condition verification

25. Reliability And Maintenance (contd.)
Maintenance is the summation of all activities
involved in keeping a system’s equipment in
working order
Reliability is the probability that a machine
will function properly for a specified time

26. Maintenance

27. Maintenance (contd.)
The objective of maintenance is to increase
the reliability with regard to performance of a
product or a service
A well maintained machine or a system
ensures production of fewer defective
products
Keeps a system’s equipment in working
order

28. Maintenance Types
Preventive Maintenance
•Routine inspection and servicing to keep
facilities in good repair
Breakdown Maintenance
•Emergency or priority repairs on failed
equipment

29. Strategic Importance of
Maintenance and Reliability
Failure has far reaching effects on a firm’s
•Operation
•Reputation
•Profitability
•Dissatisfied customers
•Idle employees
•Profits becoming losses
•Reduced value of investment in plant and
equipment

30. Maintenance Management
Employee Involvement
Partnering with
maintenance personnel
Skill training
Reward system
Employee empowerment
Maintenance and Reliability
Procedures
Clean and lubricate
Monitor and adjust
Make minor repair
Keep computerized records
Results
Reduced inventory
Improved quality
Improved capacity
Reputation for quality
Continuous improvement
Reduced variability

31. Reliability
Improving individual components
R
s=R
1xR
2x R
3x … xR
n
where,R
1= reliability of component 1
R
2= reliability of component 2
and so on

32. Reliability Example
R
s
R
3
.99
R
2
.80
R
1
.90
Reliability of the process is
R
s=R
1xR
2xR
3=.90 x .80 x .99 = .713 or 71.3%

33. QUALITY AND PRODUCTIVITY

34. Productivity
Productivity refers to the physical relation
between the quantity produced (output) and the
quantity of resource used in the course of
production (input)
Productivity (P) = output (O)/input (I)
Output implies production while input means
land, labour, capital, management etc.

35. Productivity (contd.)
Higher productivity means producing more from
a given amount of input or producing a given
amount with minimum level of inputs
In other words, the more the output from one
worker or one machine (or a piece of
equipment) per day per shift, the higher is the
productivity

36. Quality And Productivity
How are productivity and quality related?
In other words,
•If productivity goes up, what happens to
quality?
•If quality goes up, what happens to
productivity?

37. Improving Quality and Productivity
If either quality or
productivity was
increased without any
related changes in the
process for delivering
the product or service,
then it is likely to cause
a decrease in the other
Q
P
Status quo

38. Contd…
However, if the process
for delivering the
product or service is
improved, it can lead to
an increase in both
quality and productivity
Deming explained this
as the “chain reaction”
Q
P
Process
improvement

39. The Deming Chain Reaction
Productivity
improves
and costs
go down
Capture higher
market share
with better
quality and
lower price
Stay in
business
Provide jobs
and more jobs
Improve
processes
and
quality
Less mistakes
and rework,
fewer delays,
better use of
machine time
and materials

40. TOTAL QUALITY MANAGEMENT

41. Total Quality Management
An integrative philosophy of management for
continuously improving thequalityof products
andprocesses
Based on the premise that the quality of
products and processes is the responsibility of
everyone involved with the creation or
consumption of the products or services which
are offered by an organization
Requires the involvement of management,
workforce, suppliers, and customers, to meet or
exceed customer expectations

42. TQM (contd.)
A management approach to long term success
through customer satisfaction
In a TQM effort, all members of an organization
participate in improving processes, products,
services, and the culture in which they work
A management system for a customer focused
organization that involves all employees in
continual improvement

43. TQM Model

44. Primary Elements Of TQM
Customer Focus
Total Employee Involvement
Process Centred
Integrated System
Strategic and Systematic Approach
Continual Improvement
Fact-based Decision Making
Communication

45. Customer Focus
The level of quality is ultimately determined by
the customer
No matter what an organization does to foster
quality improvement—training employees,
integrating quality into the design process,
upgrading computers or software, or buying new
measuring tools—the customer determines
whether the efforts were worthwhile

46. 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 management has provided the proper work
environment
Self-managed work teams are one form of
empowerment

47. Process Centred
Focus on process thinking
The steps required to carry out the process
are defined, and performance measures are
continuously monitored in order to detect
unexpected variation

48. 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
Everyone must understand the vision, mission,
and guiding principles as well as the quality
policies, objectives, and critical processes of the
organization

49. Strategic And Systematic Approach
Strategic planning or strategic management
includes the formulation of a strategic plan that
integrates quality as a core component
The strategic and systematic approach is a
critical part of quality management to achieving
an organization’s vision, mission, and goals

50. Continual Improvement
Continual process improvement–A major trust
of TQM
Drives an organization to be both analytical
and creative in finding ways to becoming more
competitive and more effective at meeting
stakeholder expectations

51. Fact Based Decision Making
Data on performance measures are necessary
in order to know how well an organization is
performing
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

52. Communication
Effective communication plays a large part in
maintaining morale and in motivating
employees at all levels
Communication may involve development of
strategies, policies, achieving consensus,
and process improvement methodologies

53. STRATEGIC QUALITY
MANAGEMENT

54. Strategic Planning
Basic Elements:
•Define the mission of our organization
•Analyze the opportunities and threats
•Analyze our strengths and weaknesses
•Identify and evaluate alternative strategies
•Select a strategy
•Develop goals
•Prepare detailed short range plans
•Translate plans into budgets
•Monitor performance

55. Strategic Quality Management
The process of establishing long-range quality
goals and defining the approach to meeting
those goals
Developed, implemented and led by the top
management

56. Basic Elements Of SQM
Focus on customer needs
•SWOT analysis
•Gap analysis
Leadership by top management
•Developing quality goals and strategies
Translation of strategies into annual business
plans
Implementation of actions by line departments
instead of relying on a quality department

57. TRADITIONAL vs. CONTINUOUS
IMPROVEMENT ORGANIZATIONS

58. Productivity AndTQM
Traditional View
•Quality cannot be improved without significant
losses in productivity
TQM View
•Improved quality leads to improved productivity

59. Total Quality Management
And Continuous Improvement
TQM is the management process used to make
continuous improvements to all functions
TQM represents an ongoing, continuous
commitment to improvement
The foundation of total quality is a management
philosophy that supports meeting customer
requirements through continuous improvement

60. Continuous Improvement versus
Traditional Approach
Market-share focus
Individuals
Focus on “who” and “why”
Short-term focus
Status quo focus
Product focus
Innovation
Customer focus
Cross-functional teams
Focus on “what” and “how”
Long-term focus
Continuous improvement
Process improvement focus
Incremental improvements
Traditional Approach Continuous Improvement

61. Quality Throughout
A customer’s impression of quality begins with
the initial contact with the company and
continues through the life of the product
•Customers look to the total package -sales, service during the
sale, packaging, delivery, and after sale service
•Quality extends to how the receptionist answers the phone, how
managers treat subordinates, how courteous sales and repair
people are, and how the product is serviced after the sale
All departments of the company must strive to
improve the quality of their operations

62. TQM
BENEFITS AND OBSTACLES

63. Benefits
Improved quality
Employee participation/satisfaction
Teamwork
Working relationships
Customer satisfaction
Productivity
Communication
Profitability and market share

64. Obstacles
Lack of management commitment
Inability to change organizational culture
Improper planning
Lack of continuous training and education
Incompatible organizational structure and isolated individuals and
departments
Ineffective measurement techniques and lack of access to data and
results
Paying inadequate attention to internal and external customers
Inadequate use of empowerment and teamwork
Failure to continually improve