Introduction toTotal Quality Management : Introduction toTotal Quality Management By
Department of Business Administration,
Baddi, District: Solan,
Himachal Pradesh Slide 2: Total= Made up of whole
Quality= Degree of excellence a product/service provides
Management= Act/art ( manner of handling, controlling, directing, etc..)
TQM is an art of Managing the whole to achieve excellence Slide 3: TQM focuses on quality at every level.
An organization that adopts TQM should be ready to implement change.
QUALITY is the BUZZ word in the domestic and International markets.
Organizations should review its policies, practices and procedures in all areas of management, keeping in mind that Quality is the way of life and not a magic formula. Needs of TQM : Needs of TQM Rising Customer Expectations
Increasing Competitive Pressure
Changing perceptions of customers
Internal pressure for improvement
Managers and workforce perceptions
To survive What does TQM cover: : What does TQM cover: Makes an organization more effective
Establishes a new culture , which enables growth and longevity.
Provides a working environment in which everyone can succeed.
Reduces stress, wastes.
Build teams, partnerships and cooperation. Basic Concepts of TQM : Basic Concepts of TQM Set the goals and achieving them.
Customer satisfaction (unwavering focus)
Quality improvement. Hierarchy of TQM : Hierarchy of TQM INSPECTION
TQM TQM Axioms (Pre-Requisites) : TQM Axioms (Pre-Requisites) Commitment
Ethics & Trust
Teamwork Success of TQM : Success of TQM Reduction in complaints
Involvement of all the work force
Recognition by the customers
Improved attitudes at & to work
Reduction in errors
Problem solving tool QUALITY : QUALITY Excellent product that fulfills or exceeds our expectations.
Degree of excellence a product provides.
The result of care.
It is what the customer gets out & is willing to pay for.
The product free of deficiencies/defects.
Superior or high rank. QUALITY : QUALITY Quality= Performance/Expectation
If Quality > 1 (customer has good feeling about the product)
Performance/Expectation are based upon perception. Dimensions of Quality : Dimensions of Quality Performance (Primary Product Characteristic)
Features (Secondary Product Characteristic)
Reliability Customer & TQM : Customer & TQM The word Customer derives from CUSTOM meaning habit…. (needs, requirements, wants, desires) as how to fulfill these..
TQM does not occur overnight, there are no quick remedies.
TQM focuses on quality at every level.
An org. that adopts TQM should be ready to implement change
An org’s success depends on how many customers it has, how much they buy & how often they buy. CUSTOMER SATISFACTION (Quality) : CUSTOMER SATISFACTION (Quality) The concept of right Quantity.
The concept of right Time.
The concept of right Place.
The concept of right Price. Service Quality Gap Model : Service Quality Gap Model 1.CUSTOMER EXPECTATION (UNDERSTANDING HE CUSTOMER)
2. MANAGEMENT (TRANSFORMING THE CUSTOMER EXPECTATION/PERCEPTION = SERVICE DESIGN)
3.SERVICE STANDARDS ( CONFORMANCE)
4.SERVICE DELEIVERY (COMMUNICATION)
5.CUSTOMER PERCEPTION (CUSTOMER SATISFACTION)
SERVICE = to carry out the orders of customers Costs of Quality : Costs of Quality 1.COST OF CONFORMANCE (UNAVOIDABLE COST)
Prevention Cost = to investigate, prevent or reduce errors etc.e.g. cost of planning, training..
Appraisal Cost = cost of assessing the quality achieved.
e.g. cost of inspection/testing, audit..
2. COST OF NON-CONFORMANCE
Internal Failure Cost = Cost arising within the manufacturing. e.g. re-inspection, scrap, re-work,re-design, modification, overtime….
External Failure Cost = Cost arising outside the manufacturing. e.g. replacement, equipment failure, loss of goodwill. Historical Review & Japanese Success / Indian success : Historical Review & Japanese Success / Indian success History of Quality Control is as old as industry itself
The concept of specialization was introduced during Industrial Revolution, as a result a worker no longer made the entire product, only a portion.
In 1924, W.A. Shewart developed a Statistical Chart for the control of product variables.
In 1946, the American Society for Quality Control was formed. Recently the name was changed to American Society for Quality (ASQ). This organization through publications, conferences, training, sessions, lectures etc.. Has promoted the use of quality for all types of production.
Japanese set the quality standards for the rest of the world. In 1960, Quality Improvement Techniques were applied by Japanese workers.
1970’s & 1980’s = American managers, engineers.. Visited Japan to learn about the Japanese Miracle.
1990 onwards ISO ( International Organization for Standardization) is gaining popularity for its Quality Management System. Historical Review & Japanese Success / Indian success : Historical Review & Japanese Success / Indian success World renowned TQM expert Prof. Washio has predicated that the quality of Indian manufacturing will overtake that of Japan in 2020. Indian companies are good at quality, its time they formulate strategies.
Many Indian companies have got Deming prize (In 1951 JUSE=Japanese Union of Scientists & Engineers, started the DEMING PRIZE because Dr. Deming donated the earnings from the sale of his papers to JUSE)..
So far China has not even entered the DEMING Radar. MANAGEMENT TOOLS : MANAGEMENT TOOLS It is very effective tool.
Focuses on process rather than on people.
Beneficial in developing critical thinking.
Quick method for solving a problem.
They have roots in Operations Research work done after World War II and the Japanese Total Quality Control (TQC) Research. MANAGEMENT TECHNIQUES : MANAGEMENT TECHNIQUES NOMINAL GROUP TECHNIQUE (NGT)
DELPHI METHOD Nominal Group Technique (NGT) : Nominal Group Technique (NGT) It is a Group Creativity Technique.
Issues/ Ideas from every member of the team is put for effective decision.
It takes 2 hours or so to complete the activity.
E.g. A team wants to decide which problem to work upon, every members writes on a piece of paper the problem they think is most important. All the papers are collected and all the problems are listed on the chart, then each member of the team uses another piece of paper to rank the problem from least important to most important. 1 for Min.
Points for each problem are totaled and the item with highest no. of points is considered to be the most important. Brain Storming : Brain Storming It is a Group Creativity Technique designed to generate a large no. of ideas for the solution of the problem.
It takes less time.
Brain Storming is most effective with group of 8-12 people and should be performed in a relaxed environment.
Brain Storming session tries to extract max. no. of ideas in a shortest possible time. 4 Basic rules in Brain Storming : 4 Basic rules in Brain Storming Focus on Quantity
Welcome Unusual Ideas
Combine and Improve Ideas. Steps of Brain Storming : Steps of Brain Storming Define a problem as a creative CHALLENGE
Give a time limit, say 25 minutes to think solution for the problem
Once the Brain Storming starts, participants shout out solutions/ideas & then write them on white board etc., for all to see. Criticism is not to be encouraged, Laughing /jokes is to be encouraged.. No cross questioning, no interpretations, no judgments, no evaluations etc..
Make sure everyone involved in Brain Storing Session is in agreement
Finding which idea/solution best solves the problem, score each idea/solution from least important to most important. 1 for Min.
The Idea/Solution with the highest score will best solve the problem. But should keep record of other best ideas/solutions as well, in case the best idea/solution does not work. DELPHI METHOD : DELPHI METHOD The procedure is same as that of Brain Storming but with the inclusion of an EXPERT, who puts his/her opinions/ findings in front of the members of the group. 7 MANAGEMENT TOOLS : 7 MANAGEMENT TOOLS Affinity Diagram
Process Decision Program Chart (PDPC)
Activity Network Diagram Affinity Diagram : Affinity Diagram Unstructured to useful way
Generates large number of ideas/issues & then logically group them for problem understanding & possible break through solution.
Large groups to be divided into smaller groups with appropriate headings.
This tool takes large amounts of disorganized data and information and enables one to organize it into groupings.
It was created in 1960 by Japanese Jiro Kawakita. Interrelationship Diagraph : Interrelationship Diagraph It is a visual display that maps out the cause (links among complex problems, identifies to focus on the desired outcomes.)
This tool displays all the interrelated cause-and-effect relationships and factors involved in a complex problem and describes desired outcomes.
The process of creating an interrelationship diagraph helps a group analyze the natural links between different aspects of a complex situation. Tree Diagram : Tree Diagram This tool is used to breakdown broad categories into finer and finer levels of detail
Tree Diagram starts with 1 item that becomes into 2 or more branches and so on (so as to accomplish the goal or task)
It can map levels of details of tasks that are required to accomplish the goal or task.
Procedure: a) Develop a statement of goal
b) What tasks must be done to accomplish them
c) Do a necessary & sufficient check.
d) Try to reach to the root cause
Tree Diagram is used in strategic decision making. Prioritization Matrix : Prioritization Matrix This tool is used to prioritize items and describe them in terms of weighted criteria.
Generates a set of criteria for quality decision.
It aids in selecting which problems/ issues to pursue.
Helps to rank problems ( Brain Storming/GDs).
Each member votes 3 times for each criteria (Frequency, Importance, Feasibility)
3-Max & 1- Min. i.e. total votes/person= 9
-The problem with maximum points is taken first (prioritize) Matrix Diagram : Matrix Diagram This tool shows the relationship between items.
Facilitates the strength (relationship) between 2 or more elements/variables.
It consists of table where rows & cols.are interrelated .
Useful in Decision Making.
Matrix Diagram shows the relationship and encourages the team to think in terms of their strengths.
It allows the comparison of Variables/elements.
It is a core tool of QFD (Quality Function Deployment) Process Decision Program Chart : Process Decision Program Chart It is a very simple tool.
If plan might develop a problem, so how to overcome that problem.
PDPC is similar to FMEA (Failure Modes & Effect Analysis).
PDPC systematically identifies, if plan might go wrong (RISK) under development, COUNTERMEASURES are developed to prevent/offset problem. Activity Network Diagram : Activity Network Diagram Also referred as an Arrow Diagram or PERT (Program Evaluation Review Technique).
It is a model for Project Management, designed to analyze and represent the tasks involved in completing a given project.
It is a method to analyze the involved tasks in completing a given project, especially the TIME needed to complete each task & to identify the min. TIME needed to complete the total project.
It was developed primarily to simplify the planning & scheduling of large and complex projects., e.g. Railway Projects, Bridges, Airports, Flyovers… etc… STATISTICAL TOOLS : STATISTICAL TOOLS The word Statistics play an essential role in TQM. They provide the raw materials to TQM, these materials must be processed to be useful, just as crude oil must be refined into petrol before it can be used by an automobile engine. MEAN : MEAN ITS VALUE IS OBTAINED BY ADDING TOGETHER ALL THE ITEMS & BY DIVIDING THIS TOTAL BY THE NUMBER OF ITEMS MEDIAN : MEDIAN BY DEFINATION REFERS TO THE MIDDLE VALUE IN A DISTRIBUTION MODE : MODE THE MODE OR THE MODAL VALUE IN A SERIES OF OBSEVATIONS WHICH OCCURS WITH A GREATEST FREQUENCY RANGE : RANGE IT IS THE SIMPLEST METHOD OF STUDYING DISPERSION (i.e. MEASURE OF VARIATION of ITEMS) IT IS DEFINED AS THE DIFFERENCE BETWEEN THE VALUE OF SMALLEST ITEM AND THE VALUE OF THE LARGEST ITEM STANDARD DEVIATION : STANDARD DEVIATION IT IS A POSITIVE SQUARE ROOT OF VARIANCE ( MEASURE OF AVERAGE SQUARED DISTANCE BETWEEN MEAN AND EACH ITEM IN THE POPULATION) CORELATION ANALYSIS : CORELATION ANALYSIS IT ATTEMPTS TO DETERMINE THE DEGREE OF RELATIONSHIP BETWEEN 2 VARIABLES SIMPLE REGRESSION : SIMPLE REGRESSION IT PREDICTS(ESTIMATES) THE VALUE OF ONE VARIABLE WITH THE OTHER PROBABILITY DISTRIBUTION : PROBABILITY DISTRIBUTION CHANCE
SOMETHING WILL HAPPEN
PREDICTATION NORMAL DISTRIBUTION : NORMAL DISTRIBUTION IT IS A USEFUL SAMPLING DISTRIBUTION
IT COMES CLOSE TO FITTING THE ACTUAL OBSERVED DISTRIBUTIONS BINOMIAL DISTRIBUTION : BINOMIAL DISTRIBUTION IT CONSIDER A SERIES OF INDEPENDENT TRIALS WHERE EACH TRIAL RESULTS IN ONE OF TWO OUTCOMES.THESE OUTCOMES ARE LABELED AS EITHER A SUCCESS OR A FAILURE POISSON DISTRIBUTION : POISSON DISTRIBUTION PROBABILITY OF OCCURANCE OF AN EVENT WITHIN A VERY SMALL TIME HYPERGEOMETRIC DISTRIBUTION : HYPERGEOMETRIC DISTRIBUTION IT IS USEFUL IN SAMPLING FROM A LOT WITHOUT REPLACEMENT BOX-PLOT METHODS : BOX-PLOT METHODS A GRAPHICALLY DEPICT DATA AND ALSO DISPLAY SUMMARY MEASURES MULTIVARIATE CHARTS : MULTIVARIATE CHARTS IN MANUFACTURING PROCESS, WHICH HAS MORE THAN TWO VARIABLES OR ATTRIBUTES THAT AFFECT THE PRODUCT DEMING’s PHILOSOPHY : DEMING’s PHILOSOPHY No Individual had more influence on quality management than Deming
FATHER of Quality Revolution The Deming Chain Reaction : The Deming Chain Reaction 1. Improve Quality
Capture the market with better quality.
Stay in Business
Provide Jobs & more jobs. PDCA CYCLE : PDCA CYCLE ORGINALLY CALLED SHEWART CYCLE
P= PLAN (FIND OPPURTUNITIES)
D= DO (PUT INTO ACTION)
C= CHECK (CHECK THE RESULTS)
A= ACT (IF THE RESULTS ARE POSTIVE, ADOPT THE PROPOSED PLAN Deming’s 14 Points : Deming’s 14 Points Create constancy of purpose towards improvement
Adopt the new philosophy
Cease dependence on mass inspection
End the practice of awarding business on the basis of price tag
Institute modern methods of supervision
Drive out fear
Break down barrier between departments
Eliminate numerical goals, posters, slogans etc
Eliminate numerical quotas
Remove barriers between hourly worker and his right of pride
Institute a vigorous programmer of education and retraining
Push everyday on the above 13 points JURAN’s Philosophy : JURAN’s Philosophy Coined the term FITNESS FOR USE OF PURPOSE
Identified problems in ORGANIZATION,COMMUNICATION, & COORDINATION OF FUNCTIONS.
BELIEVED in 80-20 Principle JURAN TRILOGY : JURAN TRILOGY Quality PLANNING
Quality IMPROVEMENT JURAN’s 10 Points : JURAN’s 10 Points Build awareness of the need and opportunity for improvement
Set goals for improvement
Organize to reach the goals
Carry out projects to solve problems
Maintain momentum CROSSBY’s Philosophy : CROSSBY’s Philosophy Best known for the concept of ZERO DEFECTS “ DO IT RIGHT THE FIRST TIME”
Also known for the concept of QUALITY IS FREE Cross coined QUALITY VACCINE : Cross coined QUALITY VACCINE Determination
Education CrossBy has 4 absolutes of Quality : CrossBy has 4 absolutes of Quality Definition: conformance of requirements
Performance standard: zero defects
Measurement: price of non-conformance CrossBy’s 14 Points : CrossBy’s 14 Points Make it clear that management is committed to quality
Form quality improvement teams
Determine where current and potential problem lie
Evaluate the cost quality
Raise the quality awareness
Take actions to correct problems
Establish committee for zero defects program
Hold a zero defects day
Encourage individuals to establish improvement goals
Encourage employees to communicate to management
Recognize and appreciate those who participate
Establish quality councils to communicate on regular basis
Do it all over again so that quality improvement never ends Development of 4 Fitness : Development of 4 Fitness Evolution of
QUALITY CONCEPT THE 4 FITNESSES ARE : THE 4 FITNESSES ARE FITNESS TO STANDARD (1950’s)
FITNESS TO USE (1960’s)
FITNESS TO COST (1970’s)
FITNESS TO LATENT REQUIREMENTS (1980’s)
(customer focus) Fitness to Standard : Fitness to Standard Meeting the requirements of the customer Fitness for Use : Fitness for Use Effectiveness of a design Fitness to cost : Fitness to cost Measurement and careful identification of cost Fitness to latent requirements : Fitness to latent requirements Customer delighters (beyond the imagination of the expectation of the customer) 7 QC/SPC TOOLS : 7 QC/SPC TOOLS HISTOGRAM : HISTOGRAM IT IS A GRAPHICAL DISPLAY OF TABULATED FREQUENCIES PARETO CHART : PARETO CHART PLOTTING OF BAR GRAPH SHOWING IMPORTANT PROBLEMS IN DESCENDING ORDER
IT LEADS TO THE SUPPORT OF 80/20 RULE OF JURAN CHECK SHEET : CHECK SHEET USED FOR COLLECTING DATA IN REAL TIME AND AT THE LOCATION WHERE THE DATA IS GENERATED
IT IS ALSO CALLED AS TALLY SHEET CONTROL CHART : CONTROL CHART ALSO KNOWN AS PROCESS BEHAVIOUR CHART
IT DETERMINES WHETHER THE MANUFACTURING PROCESS IS IN THE STATE OF CONTROL FISHBONE DIAGRAM : FISHBONE DIAGRAM ALSO KNOWN AS ISHIKAWA DIAGRAM
AND CAUSE & EFECT DIAGRAM
IT SHOWS THE CAUSES OF THE CERTAIN EVENTS
FISH BONE BECAUSE OF ITS SHAPE FLOW CHART : FLOW CHART IT IS A SYSTEMATIC REPRESENTATION OF AN PROCESS OR ALOGORITHM
USED IN BUSINESS/ECONOMIC PRESENTATIONS SCATTER GRAPH/DIAGRAM : SCATTER GRAPH/DIAGRAM DETERMINES WHETHER THERE IS A RELATIONSHIP BETWEEN TWO VARIABLES
DETERMINES HIGEST DEGREE OF ASSOCIATION BETWEEN TWO VARIABLES SEVEN-STEP IMPROVEMENT PROGRAM : SEVEN-STEP IMPROVEMENT PROGRAM Logical Sequence of Steps : Logical Sequence of Steps Define the problem
Study the current situation
Analyze the potential causes
Implement a solution
Check the results
Standardize the improvement
Establish the future plans Thank You : Thank You