TQM AND JAPANESE SUCCESS

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TQM AND JAPANESE SUCCESS:

TQM AND JAPANESE SUCCESS By- Hitesh Bansal

Why Quality Management ? :

Why Quality Management ? It has become a question of survival in the intense competitive environment. Increasing customer consciousness all over the world. Need for earning profit instead of making profit. To meet changing perception of customer with time. To reduce the internal pressure due to external factors.

What Is Quality?:

What Is Quality? Totality of features and characteristics that bears in its ability to satisfy the need of customer. Quality is excellence that is better than a minimum standard. It is conformance to standards and ‘fitness to purpose’. ISO 9000:2000-It is the degree to which a set of inherent characteristics fulfils requirements. Quality is also defined as excellence in the product or service that fulfils or exceeds the expectations of the customer.

Quantitative Measure Of Quality:

Quantitative Measure O f Q uality Quality has a quantity measure also which is Q=P/E. Where Q=quality, P=performance, E=expectation. Here Q may have either numerical value or degree. Here P is measured by he manufacturer. And E iis measured by the customer.

The 9 Dimensions of Quality:

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

What Is TQM?:

What Is TQM? It is basically customer oriented management philosophy and strategy. Definition : Total- Made up of the whole. Quality-Degree of excellence a product or a service provide Management – Act ,art ,or manner of handling ,controlling ,directing etc. Therefore , TQM is the management approach of an organization ,centered on quality ,based on the term success through customer satisfaction, and benefits to all members of the organization and to society.

Six basic concepts of TQM:

Six basic concepts of TQM 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.

HISTORY:

HISTORY Quality in articles and artifacts produced by skilled craftsmen and artisans from the B.C. era e.g.. Goldsmiths , silversmiths, blacksmiths, potters , etc . Artists & Artisans Guilds in the Middle ages spent years imparting quality skills and the workmen 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 .

HISTORY:

HISTORY 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 the decades that followed World War II, the U.S. had no trouble selling everything made.

HISTORY:

HISTORY Demand increases production resulted in less quality control. U.S . manufacturers became complacent, thinking that they could sell any product and that the consumer did not want or demand quality . Japan was just the opposite. The war had left the country devastated. Japan began focusing on serious quality efforts.

HISTORY OF JAPAN QUALITY MOVEMENT:

HISTORY OF JAPAN QUALITY MOVEMENT Began in 1946 with the U.S occupation force’s mission. Homer Sarasohn was recruited for restarting factories and establishing equipment test lab. Recommended individuals for company presidencies ,like koji kobayashi of NEC. Two important organization behind japanese post war miracle: * MITI- Ministry of international trade and industry *JUSE

JUSE:

JUSE Organized by Ichiro Ishikawa in 1946. Invited D eming in July 1950 (an eight day quality control seminar) Invited J uran in 1954 and 1960( focused on quality ). In July 1956 ,started broadcasting a quality control course on Japan’s short wave radio. In November 1960 ,declares November of each year as the “national quality month”. Within a decade trained nearly 20,000 engineer’s on SQC. Most influential figures in the history of juse : Kaoru ishikawa -joined juse in 1949,-proposed ishikawa diagram in 1943,-introduced concept of quality circles in 1962 .

Role of W.E.DEMING:

Role of W.E.DEMING Deming was an American who worked in the 1930s with Walter A. Shewhart at Bell Telephone Company. Deming developed a process, based on Shewhart's, using statistical control techniques that alerted managers of the need to intervene in the production process . Although ,Deming’s principal o quality management were not received well in the USA. There were no takers for Deming’s preaching. However when General Mal Arthur brought Deming to Japan as a management consultant for the Japanese, they were very attentive to Deming’s philosophy.

ROLE OF DEMING:

ROLE OF DEMING In 1947 Douglas MacArthur and the U.S. State Department sent Deming to Japan to help the war-devastated Japanese manufacturing plants. He introduced these "statistical process control" methods in a series of lectures on statistical methods to Japanese businessmen and engineers. His concept of employees working toward quality fit well into their personal ideas . Deming developed the chain reaction: as quality improves, costs go down and productivity goes up; this leads to more jobs, greater market share, and long-term survival.

.:

. Quality circles, a central D eming theme , are based on the importance of employees meeting regularly in groups to comprehensively discuss product quality . The GDP in Japan rose steadily from 1960s by more than 10 percent per year . He stressed worker pride and satisfaction and considered it management's job to improve the process, not the worker . By 1951 the Japanese had named their quality prize in his honour. Deming's book, Out of the Crisis, emphasized improving quality of the product as more important than short-term financial goals . He believed that "statistical process control" was an invaluable instrument in the quest for quality. .

Deming Fourteen Points Of Management:

Deming F ourteen P oints O f M anagement Create a plan; publish the aims and purposes of the organization. Learn and adopt the new philosophy of quality. Understand the purpose of inspection; stop depending on inspection. Stop awarding business based on price alone. Improve the system constantly. Institute training. Teach and institute leadership. Drive out fear, create trust, and create a climate for innovation.

Deming Fourteen Points Of Management:

Deming Fourteen Points Of Management Optimize the efforts of teams, groups and staff areas. Eliminate exhortations, and targets for the work force; provide methods of achievement. Eliminate numerical quotas for the work force. Remove barriers that rob people of pride for workmanship. Encourage education and self improvement for everyone. Make action to accomplish the transformation, make it everyone's job.

SEVEN DEADLY DISEASES:

SEVEN DEADLY DISEASES Lack of constancy of purpose to plan products and services. Emphasis on short-term profits. Personal review systems for managers and management by objectives. Job hopping by managers. Using only visible data in decision making. Excessive medial costs. Excessive costs of liability driven up by lawyers that work on contingency.

JURAN'S CONTRIBUTIONS :

JURAN'S CONTRIBUTIONS Joseph M. Juran, like Deming, went to Japan in 1954 and assisted the Japanese in their quest to achieve quality . He emphasized customer satisfaction more than Deming did and focused on management and technical methods rather than worker satisfaction . Juran developed basic steps that companies must take, however he believed there was a point of diminishing return, a point at which quality goes beyond the consumer needs. The Pareto Principle, or the Juran 80/20 rule: 80 percent of the trouble comes from 20 percent of the problems.

JURAN’S TRIOLOGY:

JURAN’S TRIOLOGY Quality planning (determine customer needs, develop product in response to needs). Quality control (assess performance, compare performance with goals, act on differences between performance and goals). Quality improvement (develop infrastructure, identify areas of improvement and implement projects, establish project team, provide teams with what they need).

Juran's Ten Steps To Quality Improvement :

Juran's Ten S teps T o Q uality I mprovement Build awareness of opportunities to improve. Set goals. Organize to reach goals. Provide training. Carry out projects to solve problems. Report progress. Give recognition. Communicate results. Keep score. Maintain momentum by making annual improvement part of the systems and processes of the company.

Seven Management And Planning Tools :

Seven Management And Planning Tools In 1976 ,collected an promoted by the Union of Japanese Scientists an Engineers(JUSE): Affinity diagram(KJ Method) Interrelationship Diagraph(ID) Tree diagram Prioritization matrix Matrix diagram Process Decision Program Chart Activity Network Diagram

KEYS TO JAPAN SUCCESS:

KEYS TO JAPAN SUCCESS LEAN MANUFACTURING: A concept introduce by TOYOTA. Basic Idea: to eliminate waste??? KAIZEN: its 5 elements are: Teamwork Personal discipline Improved morale Quality circles Suggestion for improvement

5-S:

5-S SEIRI-Sorting: Keep only essential items. Everything else is stored or discarded SEITON-Straighten: Everything should be placed in a order SEISO: Keep the workplace clean as well as neat SEIKETSU-Standardizing: Work practices should be consistent and standardized. SHITSUKE: Sustaining he discipline Maintain and review standards Safety (sometimes taken as a sixth phase)

…and Japanese miracle…:

…and Japanese miracle…

FORD AND TOYOTA :

FORD AND TOYOTA In 1980’s T oyota take over the market of ford which lead to loss of about 3 billion dollars to ford + also vanished the 3 billion dollar market of ford who was owned by Henry Ford who was famous for line manufacturing. This forced the world to think about Total Quality Management

Other Miracles:

Other Miracles Fortune 500 global companies report 2009: No. of companies of Japan-68. Best rank in top 10 : Rank 3 , Toyota(only automobile industry) Tokyo – center of 51 fortune 50 companies (highest in no. ,paris-26, NY-22) Osaka (japan) on position 8. Comparison of revenues in between tokyo , paris and NY. 1950: Japanese economy (4.2% of USA and 1/3 of UK). 1980:40% of USA and two times of UK.

…AND ENDLESS SERIES MOVING TOWARD’S QUALITY…:

…AND ENDLESS SERIES MOVING TOWARD’S QUALITY…

QUALITY IS A JOURNEY, NOT A DESTINATION:

QUALITY IS A JOURNEY, NOT A DESTINATION

THANK YOU:

THANK YOU

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