TOTAL QUALITY MANAGEMENT-UNIT I INTRODUCTION

TOTAL QUALITY MANAGEMENT-UNIT I INTRODUCTION

1. TQM Unit 1 INTRODUCTION

2. Quality - Definitions Quality is excellence that is better than a minimum standard. It is conformance to standards and ‘fitness of purpose’ ISO 9000:2000 definition of quality- It is the degree to which a set of inherent characteristics fulfills requirements .

3. Definitions 3 Joseph Juran . Quality is ‘ fitness for use ‘ of the product – Philips B Crosby Quality is Conformance to requirements W. Edwards Deming A predictable degree of uniformity and dependability at low cost and suited to market Bill Conway Development, manufacture, administration and distribution of consistently low cost and products and services that customers need and want. Total Quality Management - Spring 2010

4. Definitions of Quality Exceeding customer expectations • Conformance to specifications • The degree to which a product or service meets the needs of the customer • Uniformity around a customer-defined target The customer is the most important part of the process.

5. Quality meaning Fitness for use Excellence Conformance to requirement Way of managing the organization Correcting and preventing the loss Totality of characteristics of an entity that bear on its ability to satisfy stated and implied needs.

6. MEANING Total – Made up of the whole(or) Complete. Quality – Degree of Excellence a product or service provides to the customer in present and future. Management – Act , art, or manner of handling , controlling, directing, etc. TQM is the art of managing the whole to achieve excellence.

7. INTRODUCTION TO TQM What is TQM? TQM is the integration of all functions and processes within an organization in order to achieve continuous improvement of the quality of goods and services. The goal is customer satisfaction. “ No doubt , humans are always deficient” (Al-Quran)

8. Why TQM Meet competition Customer satisfaction Profit maximization Systematic approach Long term commitment Continuous improvement Top management commitment

9. Need for Quality Higher customer satisfaction Reliable products/services Better efficiency of operations More productivity & profit Better morale of work force Less wastage costs Less Inspection costs Improved process More market share Spread of happiness & prosperity Better quality of life for all.

10. TQM six basic Concepts Management commitment to TQM principles and methods & long term Quality plans for the Organisation Focus on customers – internal & external Quality at all levels of the work force. Continuous improvement of the production/business process. Treating suppliers as partners Establish performance measures for the processes.

11. (1900-1993) “ It would be better if everyone would work together as a system, with the aim for everybody to win.”

12. Interesting Facts 1900 - Born in Sioux City, Iowa 1925 - met Dr. Walter Shewhart, 1927 - received a Ph.D in Physics from Yale 1939 – Head Mathematician – National Bureau of Census During WW II worked with Shewhart on improvement of quality of production or weapons using statistical methods

13. 1946 - Statistics professor – NY University 1947 – invited by General MacArthur to come to Japan as part of his economic and scientific staff in rebuilding Japan 1950 – invited to return to Japan by Japanese Union of Scientists and Mathematicians to teach methods for achievement of quality Jan. 1951 - began a series of lectures to every single top manager in Japan 1974 – meeting with William Conway June 24, 1980 – NBC’s show If Japan Can… Why Can’t We? aired to 14 million people – later became NBC’s most requested video of all time

14. Third Wave of the Industrial Revolution *** He taught an average of ten 4-day seminars per year between 1980 and 1993 reaching over 200,000 managers. Almost every top manager in the country was exposed to his teachings during those years Upon Deming’s death in 1993 in one obituary it was written that Deming’s reply to writer for how he wanted to be remembered was - “Well, maybe… as someone who spent his life trying to keep America from committing suicide. ***- Deming and Goldratt by Lepore and Cohen pg 151

15. Basic message: The cause of inefficiency and poor quality is the system, not the employees and it is management’s responsibility to correct the system in order to achieve desired results.

16. Message to Japanese Management Production must be seen as a system encompassing customers and suppliers in a win-win situation. Customer is the most important part of the system Suppliers are partners Quality is made in the boardroom – never blame the workers. Improving a process creates a chain reaction. Continuous learning and improvement follow the PCDA (Shewhart) cycle. There is a need for trust and cooperation between companies. Anything new learned in one company must be shared with all including competitors.

17. One can say that the content of my seminars… and the content of my books… are based in large part on my understanding of Shewhart’s teaching. Even if only ten percent of the listeners absorb part of Dr. Shewhart’s teachings, the number may in time bring about change in the style of Western management. – Dr. Deming Reducing variability in production will improve quality. Two types of variation: Common causes Special causes Statistical control – a process needs to be in a stable state with identifiable action limits

18. Key Deming Tools Deming did not teach statistical tools – he taught how to interpret them and their implications to the system. Deming Chain Reaction PDCA Cycle Theory of Profound Knowledge & 14 Point Philosophy “The control chart is no substitute for the brain.” – Dr. Deming

19. Deming Chain Reaction “Quality improvement is not a costly business option but a strategic imperative that is essential to business survival” Quality Cost Productivity

20. Conveys the sequential and continual nature of CI Plan Do Check Act Plan Do Check Act

21. Theory of Profound Knowledge - knowledge for leadership of transformation Appreciation for a system A network of interdependent components that work together to try to accomplish the aim of the system. Without aim there is no system. Knowledge of variation Understanding where the processes are stable Theory of knowledge Predicting and anticipating what will happen if certain actions are taken Psychology of individuals, society and change. Appreciate people’s natural inclination toward learning and being innovative.

22. Deming's 14 Points for Management Constancy of Purpose The New Philosophy Cease dependence on mass inspection End lowest cost tender contracts Improve every process Institute training on the job Institute leadership

23. Drive out fear. Break down barriers. Eliminate exhortations. Eliminate arbitrary numerical targets. Permit pride of workmanship. Encourage education Top management commitment and action.

24. (1900-1993) “ It would be better if everyone would work together as a system, with the aim for everybody to win.”

25. Interesting Facts 1900 - Born in Sioux City, Iowa 1925 - met Dr. Walter Shewhart, 1927 - received a Ph.D in Physics from Yale 1939 – Head Mathematician – National Bureau of Census During WW II worked with Shewhart on improvement of quality of production or weapons using statistical methods

26. 1946 - Statistics professor – NY University 1947 – invited by General MacArthur to come to Japan as part of his economic and scientific staff in rebuilding Japan 1950 – invited to return to Japan by Japanese Union of Scientists and Mathematicians to teach methods for achievement of quality Jan. 1951 - began a series of lectures to every single top manager in Japan 1974 – meeting with William Conway June 24, 1980 – NBC’s show If Japan Can… Why Can’t We? aired to 14 million people – later became NBC’s most requested video of all time

27. Third Wave of the Industrial Revolution *** He taught an average of ten 4-day seminars per year between 1980 and 1993 reaching over 200,000 managers. Almost every top manager in the country was exposed to his teachings during those years Upon Deming’s death in 1993 in one obituary it was written that Deming’s reply to writer for how he wanted to be remembered was - “Well, maybe… as someone who spent his life trying to keep America from committing suicide. ***- Deming and Goldratt by Lepore and Cohen pg 151

28. Basic message: The cause of inefficiency and poor quality is the system, not the employees and it is management’s responsibility to correct the system in order to achieve desired results.

29. Message to Japanese Management Production must be seen as a system encompassing customers and suppliers in a win-win situation. Customer is the most important part of the system Suppliers are partners Quality is made in the boardroom – never blame the workers. Improving a process creates a chain reaction. Continuous learning and improvement follow the PCDA (Shewhart) cycle. There is a need for trust and cooperation between companies. Anything new learned in one company must be shared with all including competitors.

30. One can say that the content of my seminars… and the content of my books… are based in large part on my understanding of Shewhart’s teaching. Even if only ten percent of the listeners absorb part of Dr. Shewhart’s teachings, the number may in time bring about change in the style of Western management. – Dr. Deming Reducing variability in production will improve quality. Two types of variation: Common causes Special causes Statistical control – a process needs to be in a stable state with identifiable action limits

31. Key Deming Tools Deming did not teach statistical tools – he taught how to interpret them and their implications to the system. Deming Chain Reaction PDCA Cycle Theory of Profound Knowledge & 14 Point Philosophy “The control chart is no substitute for the brain.” – Dr. Deming

32. Deming Chain Reaction “Quality improvement is not a costly business option but a strategic imperative that is essential to business survival” Quality Cost Productivity

33. Conveys the sequential and continual nature of CI Plan Do Check Act Plan Do Check Act

34. Theory of Profound Knowledge - knowledge for leadership of transformation Appreciation for a system A network of interdependent components that work together to try to accomplish the aim of the system. Without aim there is no system. Knowledge of variation Understanding where the processes are stable Theory of knowledge Predicting and anticipating what will happen if certain actions are taken Psychology of individuals, society and change. Appreciate people’s natural inclination toward learning and being innovative.

35. Deming's 14 Points for Management Constancy of Purpose The New Philosophy Cease dependence on mass inspection End lowest cost tender contracts Improve every process Institute training on the job Institute leadership

36. Drive out fear. Break down barriers. Eliminate exhortations. Eliminate arbitrary numerical targets. Permit pride of workmanship. Encourage education Top management commitment and action.

37. Crosby Zero defects, Quality is free Quality means conformance to requirements. The real costs of quality are the costs of non-conformance (such as rework, scrap, and warranty costs). Do it right the first time and we avoid these costs, thereby improving profitability.

38. Crosby: Absolutes of Quality Quality is conformance to requirements The system of quality is prevention The performance standard is zero defects The measurement of quality is the price of non-conformance

39. Crosby: Price of conformance and non-conformance The costs of quality (COQ) are similar to Juran’s. Prevention costs (design reviews, supplier evaluations, training, preventive maint.) Appraisal costs (inspections and tests to determine conformance to requirements) Failure costs (rework, scrap, warranty costs, lost sales, product liability) Crosby emphasizes that prevention efforts help us avoid failure costs and appraisal costs. Prevention allows us to increase profits without increasing sales, buying new equipment, or hiring people.

40. Crosby: 14 Steps to Quality Improvement Management commitment Quality improvement teams Quality measurement Cost of Quality evaluation Quality awareness Corrective action Zero defects program Supervisor training Zero Defects day Goal setting Error cause removal Recognition Quality councils Do it all over again

41. Quality Vaccine Integrity Systems Communications Operations policies

42. What do the philosophies of Deming, Juran, and Crosby Have in common? Customer Focused Commitment and Leadership from Top Management Continuous Improvement Based on Facts Team Based

43. Historical review of TQM Stoneage Period of craftmanship Period of manufacturing (1800-1900) Inspection phase (1920-1940) SQC (1940-1960) TQC (1960-1980) TQM (1980-2000) Q-QC-SQC-TQC-QA-TQM

44. DIMENSION OF PRODUCT QUALTY Performance - Primary Characteristics Features –Secondary Characteristics Conformance-Meeting Specifications or Standards Reliability –Consistency of Performance over time-fail Durability- Useful life ,include Repair.

45. DIMENSION OF PRODUCT QUALTY Service-Resolution of problem, ease of repair. Response- Human relations with Customers. Aesthetics-Sensory Features. Reputation- Past performance, Company Image.

46. DIMENSION OF SERVICE QUALITY Reliability Responsiveness Assurance Empathy Tangibles Other dimensions

47. OTHER DIMENSIONS Time & Timeliness Completeness Courtesy Consistency Accessibility & Convenience Accuracy Competence Communication Credibility Security

48. Barrier to TQM Implmentation Top management commitment Changing Organization Culture Improper planning Continuous Training & Education Organization Structure & Departments Data’s & Facts For Effective Decisions Internal & External Customers-Dissatisfaction Empowerment & Teamwork Continuous Improvement

49. Benefits Improved Quality Employee Participation Team Work Internal & External Customer Satisfaction Productivity ,Communication Profitability & Market Share

50. QUALITY COUNCIL It is a team to provide overall direction for achieving the quality culture. To build q in to the organizational Quality It provides overall direction Members CEO Senior manager Coordinator or Consultant

51. Duties of Quality Council Establish or developing core values and Quality system Demelopment of plan and programme Training or workshop Finding cost of poor quality and monitoring continuously Finding performance measure Continuous determination of projects Team work Recognize and reward system

52. Duties of Coordinator Two – way trust Share quality council expectation Team requirement to the council Empower the team To communicate the details of progress of quality improvements activities

53. Quality Statement It is a strategic planning process Vision statement Mission statement Quality statement