TOTAL_QUALITY_MANAGEMENT fgfjkfgrggjj.ppt

EVOLUTION of TQM
 CRAFTSMEN & ARTISANS(eg. Artists,
Sculptors, working with metals & other
materials who were very Quality-conscious.
 TRADESMEN (eg.Masons,Carpenters etc.)
 ENGINEERING TRADES & PRACTICES
(eg.Foundry,Smithy, Die-making,Mould-
making,Stamping,Forging,Turning,Milling,
Drilling etc. )

TQM Evolution
 Custom-built Articles/Products having considerable
control over Quality.
 Mass- Produced Products with less control over
Quality
 Quality control Department in Factories.
 TQM-based Production facility – enhancing the
Organization through Quality techniques to better
achieve organization’s goals-eg. Productivity and
Profitability with min.wastage.
 ISO Quality Management Systems.

QUALITY IS ….the QUALIFIER!
 Doing it right first time and all the time.
This boosts Customer satisfaction immensely
and increases efficiency of the Business
operations.
 Clearing the bar (ie. Specification or Standard
stipulated) Excellence that is better than a
minimum standard.

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.
 Quality is ‘ fitness for use ‘ of the product –
Joseph Juran.

Quality and customer
expectations
 Quality is also defined as excellence in the
product or service that fulfills or exceeds the
expectations of the customer.
 There are 9 dimensions of quality that may be
found in products that produce customer-
satisfaction.
 Though quality is an abstract perception,it has a
quantitative measure- Q= (P / E ) ,
where Q=quality, P= performance(as
measured by the Mfgr.), and E =
expectations( of the customer).

 Quality is not fine-tuning your product at the
final stage of manufacturing,before packaging
and shipping .
 Quality is in-built into the product at every
stage from conceiving –specification & design
stages to prototyping –testing and manufacturing
stages.
 TQM philosophy and guiding principles
continuously improve the Organisation
processes and result in customer satisfaction.

The 9 Dimensions of Quality
 Performance
 Features
 Conformance
 -----------------------------
 Reliability
 Durability
 Service
 -----------------------------
 Response- of Dealer/ Mfgr. to
Customer
 Aesthetics – of product
 Reputation- of Mfgr./Dealer
Service Features
Performance
Cost

Market Changes
 MONOPOLIST markets Seller’s market
 GLOBAL markets Buyer’s market
 Market more competitive Customer-oriented market
Demand is defined by Users.
 Quality management is a necessity for survival and
growth of the organization in a global environment.

The TQM Organization
 Quality infused Personnel and Processes.
TM
MM
LM
Other Staff
Q
U
A
L
I
T
Y
INPUTs

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.

Effects of poor Quality
 Low customer satisfaction
 Low productivity, sales & profit
 Low morale of workforce
 More re-work, material & labour costs
 High inspection costs
 Delay in shipping
 High repair costs
 Higher inventory costs
 Greater waste of material

Benefits of 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.

Historical Review of Quality Control
 Quality in articles and artefacts produced by skilled
craftsmen and artisans from the B.C. era eg.
goldsmiths,silversmiths, blacksmiths, potters,etc.
 Artists & Artisans Guilds in the Middle ages spent
years imparting quality skills and the worksmen had
pride in making quality products.
 Industrial Revolution brought factory manufacturing
where articles were mass-produced and each worker
made only a part of the product,and did not sense the
importance of his contribution to the quality of the
product .

 In 1924, W.A.Shewhart of Bell Telephone
Labs developed a statistical chart for the
control of product variables – the beginning
of SQC and SPC.
 In the same decade, H.F.Dodge and
H.G.Romig of Bell Telephone Labs
developed statistical acceptance sampling
instead of 100% inspection.
 In 1946,the American Society for Quality
Control was formed.
 In 1950, W. Edwards Deming,who learnt
SQC from Shewhart,taught SPC & SQC to
Japanese engineers and CEO’s

 In 1954,Joseph M.Juran taught Japanese
managements their responsibility to achieve
quality .
 In 1960, the first quality control circles were
formed. SQC techniques were being applied
by Japanese workers.
 1970’s US managers were learning from
Japan Quality implementation miracles.
 In 1980’s TQM principles and methods
became popular.(also in auto industry)
 In 1990’s ,the ISO 9000 model became the
world-wide standard for QMS.

Leadership concepts
 12 characteristics of quality leaders(refer pgs
30,31 Besterfield)
 7 Habits of highly effective people ( Pgs. 32-
39 Besterfield)
 The Deming philosphy ( Pgs. 39-43
Besterfield)

7 Habits of highly effective people
( Stephen Covey)
 Be pro-active
 Begin with the end in mind
 Put first things first (ref.Covey’s Time
management matrix pg.35)
 Think win-win
 Seek first to understand,then to be understood
 Synergy
 Sharpen the saw

The Deming Philosophy
 Create and publish the aims and purposes of the
organization
 Learn the new philosophy
 Understand the purpose of inspection
 Stop awarding business based on price alone.
 Improve constantly and forever the System
 Institute training
 Teach and institute leadership

The Deming Philosophy
 Drive out fear,create trust,and create a climate
for innovation
 Optimize the efforts of teams,groups,and staff
areas
 Eliminate exhortations for the work force
 Eliminate numerical quotas for the work force
 Eliminate management by objectives
 Remove barriers to pride of workmanship
 Encourage education and self-improvement for
all
 Take action to accomplish the transformation.

Role of TQM leaders
 All are responsible for quality improvement
especially the senior management & CEO’s
 Senior management must practice MBWA
 Ensure that the team’s decision is in harmony with
the quality statements of the organisation
 Senior TQM leaders must read TQM literature and
attend conferences to be aware of TQM tools and
methods
 Senior managers must take part in award and
recognition ceremonies for celebrating the quality
successes of the organisation
 Coaching others and teaching in TQM seminars
 Senior managers must liaise with internal ,external
and suppliers through visits,focus groups,surveys
 They must live and communicate TQM.

TQM implementation
 Begins with Sr. Managers and CEO’s
 Timing of the implementation process
 Formation of Quality council
 Union leaders must be involved with TQM
plans implementation
 Everyone in the organisation needs to be
trained in quality awareness and problem
solving
 Quality council decides QIP projects.

Quality Council
 The quality council includes CEO and Senior managers of
the functional areas -research,manufacturing,finance,sales
,marketing etc. and one co-ordinator and a union
representative.
 Duties- To develop the Quality statements eg. Vision,
Mission, Quality policy statements, Core values etc.
 To develop strategic long-term plans and annual quality
improvement programme.
 Make a quality training programme
 Monitor the costs of poor quality.
 Determine the performance measures for the organisation
 Always find projects that improve the processes and
produce customer satisfaction.
 Establish work-group teams and measure their progress.
 Establish and review the recognition and reward system
for the TQM system

Quality statements
 Vision statement – a short declaration of
what the organization hopes to be
tomorrow.
 Mission statement – a statement of
purpose –who we are,who are our
customers,what we do , and how we do it.
 Quality policy – is a guide for everyone in
the organization ,how they should provide
products and services to the customers.

Strategic Planning
 Strategic business planning is similar to
strategic quality planning.
 7 steps to strategic planning
 Customer needs
 Customer positioning
 Predict the future
 Gap analysis
 Closing the gap
 Alignment
 Implementation.

Strategic Quality Goals and Objectives
 Goals must be focused
 Goals must be concrete
 Goals must be based on statistical evidence
 Goals must have plan or method with
resources
 Goals must have a time-frame
 Goals must be challenging yet achievable

Customer satisfaction
 Customer is the Boss or’King’
 Customer dictates the market trends and
direction
 Customer not only has needs to be supplied(
basic performance functions)
 Also he ‘wants what he wants!’( additional
features satisfy him and influence his purchase
decision)
 Hence the Suppliers and Manufacturers have to
closely follow at the heel of the customer.

Norman’s Customer satisfaction model
Customer
Quality C,Q

Customer Satisfaction
Quality
System
Quality Product/
Service
Customer Satisfaction
Customer
Focus

Customer Satisfaction Organisational
Diagram
 CUSTOMERS
Front-line Staff
Functional
Department
Staff
CEO
Sr.
Mgrs

Teboul Model of Customer Satisfaction

Customer needs
Company
Product/Service
offer

What is customer satisfaction?
 Is it due to Product quality?
 Is it due to pricing?
 Is it due to good customer service ?
 Is it due to company reputation?
 Is it something more?

Customer types
 External and Internal customers
 External – current, prospective and lost customers
 Internal – Every person in a process is a customer of
the previous operation.( applies to
design,manufacturing,sales,supplies etc.) [Each
worker should see that the quality meets expectations
of the next person in the supplier-to-customer chain ]
 TQM is commitment to customer-focus - internal and
external customers.

Customer/supplier chain

Inputs from
external customers
Internal customers
Outputs to
external customers

Internal customer/Supplier
relationships
 Questions asked by people to their internal
customers
 What do you need from me?
 What do you do with my output?
 Are there any gaps between what you need
and what you get?
 Good team-work and inter-Departmental
harmony is required. Also the leaders role in
supervising the internal customer-supplier
chain.

TQM and customer quality percepts
 TQM is quality management and management of
quality – there is no full stop and no break in the
chain!
 Continuous process (quality) improvement is all
its about.
 Why? One important reason is the customer
quality level is not static and his expectations
keep changing and his demands too!
 Also plant process dynamics- how to achieve
maximum efficiency , optimizing cost and
performance in the process operations,
minimizing waste etc.

User purchase perceptions-
from survey
 Performance
 Features
 Service
 Warranty
 Price
 Reputation
( refer pgs.72 and 73, Besterfield)

Customer satisfaction/
dissatisfaction feedback
 Customer feedback has to be continuously
sought and monitored - not one-time only!( Pro-
active! Complaints are a reactive method of
finding out there is a problem)
 Customer feedback can be relayed to Mfgr.
 Performance comparison with competitors can
be known
 Customers needs can be identified
 Relative priorities of quality can be obtained from
the horses’ mouth!
 Areas for improvement can be noted.

Customer feedback methods
 Comment cards enclosed with warranty card
when product is purchased.
 Customer survey and questionnaire
 Customer visits
 Customer focus groups
 Quarterly reports
 Toll-free phones
 e-mail, Internet newsgroups,discussion
forums
 Employee feedback
 Mass customization.

Customers- Handle with care!
 Employers don’t pay wages but it is the
customer who pays the wages!
 So take good care of your customers.
 Customer-care centres not just profit-centres!
 The entire organization must in effect revolve
around the customer – whether the customer is
being well served and if he is really
pleased,contented and satisfied with the
service you have to offer.

Service Quality
 (i )Organisation
 Identify each market
segment
 Write down the
requirements
 Communicate the
requirements
 Organise processes
 Organise physical
spaces

Service Quality
 (ii) Customer Care
 Meet the customer’s expectations
 Get the customer’s point of view
 Deliver what is promised
 Make the customer feel valued
 Respond to all complaints
 Over-respond to the customer
 Provide a clean and comfortable customer reception
area.

Service Quality
 (iii) Communication
 Optimize the trade-off between time and
personal attention
 Minimize the number of contact points
 Provide pleasant,knowledgable and
enthusiastic employees
 Write documents in customer-friendly
language.

Service Quality
 (iv) Front-line people
 Hire people who like people
 Challenge them to develop better methods
 Give them the authority to solve problems
 Serve them as internal customers
 Be sure they are adequately trained
 Recognise and reward performance

Service quality
 (v)Leadership
 Lead by example
 Listen to the front-line people
 Strive for continuous process improvement
(Pgs. 88-93 Besterfield)

Customer Care
 Keep promises to customers
 Return customer calls promptly
 Allot staff to handle customer problems
 Treat customers with courtesy,respect
and professionalism always
 Evaluate customer satisfaction regularly
 Search for customer-related
improvements continuously
 Deliver Products/Service promptly and
efficiently
 Give every customer complete and
personal attention.

Customer Care
 Maintain a neat and clean appearance of
self and work-place,at all times
 Review and implement customer
feedback and suggestions into current
procedures when needed
 Training and education to enhance job
performance and commitment to
customer care
 Treat every customer as we would treat
ourselves. ( Pg. 90, Besterfield)

Kano Model-conceptualises customer
requirements

Exciters-
Quickly expected Easily identified
Typically performance related
Customer
satisfied
Customer
Not satisfied
Requirement
satisfied
Requirement
Not satisfied
Innovations
Unspoken-
but expected
requirements
Spoken and
expected
requirements
Known only to experienced
designers or discovered late

Customer Retention
 Customer satisfaction should lead to customer
loyalty and customer retention.
 This is the acid test and bottom line- when the
customer repeatedly comes back to you for
repeat orders and to purchase new products
mfgrd. by you. (In spite of stiff competition and
multiple Suppliers/Sources! )
 Firm orders received or cash payments
registered , market share, customer referrals and
customer retention are an indication of your
customer success and penetration .

Motivation
 Maslow’s Hierarchy of Needs
 Herzberg’s Two-Factor Theory
 Achieving a motivated task-force
(Pgs.104-105 Besterfield)
Know thyself,Know your employees,
Establish a positive attitude, share the
goals,Monitor progress,Develop intersting
work,Communicate effectively, Celebrate
success.

Empowerment
 To invest people with authority –to tap the
potential in every worker (avoid the
wastage of unrealised capacity)
 People have the ability,confidence and
commitment to take the responsibility and
ownership to improve the process, and
initiate the necessary steps to satisfy
customer requirements within well-defined
boundaries in order to achieve
organisational goals.

Conditions for empowerment
 Everyone must understand the need for
change
 The system needs to change to the new
paradigm
 The organisation must enable its
employees.
 Teams (Pgs. 109-124 Besterfield)

Continuous Process Improvement
 Process refers to business and production activities
of an Organisation.
 Processes for improvement- eg. Design &
Manufacturing,Marketing,Stores & Purchase,etc.
 Inputs of the Process-
Manpower,materials,money,data,etc.
Outputs- Products,Services,data etc.
Outputs need performance measures – main
outcome being customer satisfaction.(feedback is
used to improve the process)

 Process refers to business and production
activities of an organisation
 Business processes-Manufacturing,Design,
Sales,Purchase,Stores etc.are areas where
non-conformance can be reduced and
processes improved


INPUT
Materials
Money
Data,etc.
PROCESS
People
Equipment
Method
Environment
Materials
Procedures
OUTPUT
Information
Data
Product
Service,etc.
CONDITIONS
O/P
FEEDBACK

Five ways to Improve a Process
 Reduce resources
 Reduce errors
 Meet or exceed expectations of
internal/external customers
 Make the process safer
 Make the process more satisfying to the
person doing it.

 Juran’s Trilogy
 Shewhart’s Plan-Do-Study-Act cycle
 Kaizen- making small incremental
improvements to the individual and the
organisation.
(Pgs. 140-160,Besterfield)

Juran’s Trilogy
 Three components -
PLANNING,CONTROL AND
IMPROVEMENT
 Based on financial processes ,such as
budgeting(planning), expense
measurement(control), and cost reduction
(improvement)

Quality
planning
Cost of
poor
quality
Operation
region
Original
zone of
Quality
control
New zone
of quality
control
Quality Control- during Operations
0
0
20
40
Time
Sporadic spike
Chronic waste
Opportunity for
improvement. Quality improvement
Lessons learned
The Juran Trilogy Diagram

Four Improvement Strategies
 Repair
 Refinement
 Renovation
 Re-invention

Five types of Problems
 Compliance
 Unstructured
 Efficiency
 Process Design
 Product Design

THE PDSA cycle
Plan
Plan
Do
Study
Act Plan

PDSA cycle- seven steps or phases
 Identify the opportunity
 Analyze the current process
 Develop the optimal solution(s)
 Implement changes
 Study the results
 Standardise the solution
 Plan for the future.

cycle
Phase I Identify the Opportunity
Phase 2
Analyze the process
Phase 3
Develop the optimal solution(s)
Phase 4 Implementation
Phae 5 Study the results
Phase 7
Plan for the future
Phase 6
Standardise the solution
Act Plan
Do
Study
Phase I Identify the Opportunity
Phase 2
Analyze the process
Phase 3
Develop the optimal solution(s)
Phase 4 Implementation
Phae 5 Study the results
Phase 7
Plan for the future
Phase 6
Standardise the solution

TQM principles from the Japanese
 The 3 K Method
 Kimerareta Kotoo – What has been decided
 Kimerareta Tori – must be followed
 Kichim to Mamorukoto – as per standard.

The 5S Method
 Seiko - Sort ( Proper arrangement )
 Seiton - Set ( Systematic or
Orderliness )
 Seiso - Shine ( Sweep or clean-up )
 Seiketso - Standard ( Personal
cleanliness )
 Shitsuke - Sustain ( Self-discipline )

Kaizen Technique
 Kaizen- defines the managements role in
continuously encouraging and implementing
small improvements in the individual &
organization.
 Break the complex process into sub-processes
and then improve the sub-processes.
 Continuous improvements in small increments
make the process more efficient ,controllable
and adaptable.
 Does not rely on more expense,or sophisticated
equipment and techniques.

Kaizen
 Value and non-value added work
activities
 Muda-seven classes of waste
 Principles of motion study and
work-cell use
 Principles of materials handling
and use of one-piece flow
 Documentation of standard
operating procedures
 The 5S’s
 Visual displays for
communicating to factory
personnel
 JIT- to produce right quantities at
right time and with right
resources
 Poka-yoke to prevent or detect
errors
 Team dynamics – problem
solving ,comm.,conflict resoln.

Kaizen Technique- change for good
 Kaizen
 Heijunka
 Kairetsu
 Kokusunka

Non-conformance rate when
Process is centred
-6 sigma Mean +6 sigma
+3 sigma
-3 sigma
USL
LSL

Six sigma method
 Six sigma method is a TQM process that uses process
capability analysis as a means of measuring progress.
 The smaller the standard deviation, the lesser the deviation
of the product characteristic from its mean value. If the
process has a normal distribution,the upper and lower
specification limits are +/- 6 sigma from the mean u. The
non-conformance is 2ppb and the process capability Cp is
2.0(1.33 Cp is de facto standard.)
 A normal process with mean shifted +/-1.5 sigma from the
target value desired has non-conformance of 3.4ppm and
process capability index Cpk= 1.5, with 1.0 being the de
facto standard.

References
 Total Quality Management - Dale H.
Besterfield et al. ,Pearson education LPE
 Total Quality Management -
R.S.Naagarazan and A.A Arivalagar, New
Age International Publishers.

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