logging in or signing up TQM-chapter I mkkaran90 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 467 Category: Education License: All Rights Reserved Like it (1) Dislike it (0) Added: November 25, 2010 This Presentation is Public Favorites: 1 Presentation Description No description available. Comments Posting comment... By: praveensmallya (13 month(s) ago) pls pls pls lemme download this .. Saving..... Post Reply Close Saving..... Edit Comment Close By: muhamadaidil (16 month(s) ago) Can u have this slide? Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Total Quality Management : S. Ajit Total Quality Management Total Quality Management : S. Ajit Total Quality Management Books for Reference: Dale H. Besterfiled, et al, Total Quality Management Narayana V. & Sreenivasan, Quality Management JeyKumar, Quality Management Vijayaraghavan, Total Quality Management Total Quality Management : S. Ajit Total Quality Management Unit I - Introduction Quality, dimensions of quality, Cost of Quality, Quality council, quality statements Total Quality Management TQM Leadership Barriers to TQM implementation Total Quality Management : S. Ajit Total Quality Management Unit II – TQM Principles Customer satisfaction, complaints, retention Employment involvement Juran, PDSA Cycle, Supplier partnership Performance measures Total Quality Management : S. Ajit Total Quality Management Unit III – Statistical Process Control Measures of central tendency, dispersion, normal curve Control charts – variables, attributes Process capability Six sigma Seven old and new tools of quality Total Quality Management : S. Ajit Total Quality Management Unit IV – TQM tools Benchmarking Quality Function Deployment – House of Quality Taguchi loss function Total Productive Management (TPM) Failure Mode & Effect Analysis (FMEA) Total Quality Management : S. Ajit Total Quality Management Unit V – Quality Systems ISO Implementation of quality system Documentation Quality Audit ISO 14000 Quality : S. Ajit Quality Fitness for intended Use (Joseph Juran) Conformance to specifications (Philip Crosby) Meeting or exceeding customer expectation Lack of manufacturing or service defects Definition by ISO: The degree to which a set of inherent characteristics fulfills requirements Degree: poor, good, excellent Inherent: permanent Characteristics – qualitative or quantitative Requirement – need or expectation that is implied Quality : S. Ajit Quality Quality = Performance / Expectation get it right, the first time, every time. quality is a journey, not a destination 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. Slide 10: S. Ajit The Eight Dimensions of Product Quality Slide 11: S. Ajit The Eight Dimensions of Product Quality Slide 12: S. Ajit Strategic Implications of the Eight Dimensions of Quality Use some but not all of the dimensions of quality. (It is unwise and often impossible to pursue excellence in all dimensions.) Conduct market research to determine which of the dimensions of quality are most important to your customers. Do not introduce or persist with dimensions of quality that are unimportant to your customers. The Seven Dimensions of Service Quality : S. Ajit The Seven Dimensions of Service Quality Quality planning : Quality planning Systematic process that translates quality policy into measurable objectives and requirements, and lays down a sequence of steps for realizing them within a specified time frame. A quality plan sets out the desired product qualities and how these are assessed and defines the most significant quality attributes. The quality plan should define the quality assessment process. It should set out which organisational standards should be applied and, where necessary, define new standards to be used. S. Ajit Quality plans : S. Ajit Quality plans Quality plan structure Product introduction; Product plans; Process descriptions; Quality goals; Risks and risk management. Quality plans should be short, succinct documents If they are too long, no-one will read them. Quality Cost : Quality Cost Joseph Juran, 1951, Quality Control Handbook. Feigenbaum made it one of the core ideas underlying the Total Quality Management movement Quality costs are the costs associated with preventing, finding, and correcting defective work. These costs are huge, running at 20% - 40% of sales. Many of these costs can be significantly reduced or completely avoided. One of the key functions of a Quality Engineer is the reduction of the total cost of quality associated with a product. S. Ajit Quality Cost : Quality Cost Prevention Costs / Cost of Conformance: Cost incurred in preventing a quality problem from arising Cost of quality planning Process control cost Cost of training Cost of investigation analysis Cost of quality awareness programs. S. Ajit Quality Cost : Quality Cost Appraisal Costs: Cost incurred in assessing that the products/services conform to the requirements Cost of test and inspection Cost of maintenance of testing and inspecting equipments Cost of test equipment depreciation Cost of line quality engineering S. Ajit Quality Cost : Quality Cost Failure Costs: Costs that result from poor quality, such as the cost of fixing defects and the cost of dealing with customer complaints. Internal External S. Ajit Quality Cost : Quality Cost Internal Failure Costs: Failure costs that arise before the company supplies its product to the customer. Cost associated with scrap and rejects Cost of repair and rework Cost of design changes Cost of trouble shooting Cost of re-inspection and re-testing S. Ajit Quality Cost : Quality Cost External Failure Costs: Failure costs that arise after the company supplies the product to the customer Cost of processing complaints Cost of commissioning failures Cost of servicing/replacing defective items Cost of guarantee/warranty claims External failure costs are huge. It is much cheaper to fix problems before shipping the defective product to customers. S. Ajit Optimum Cost of Quality : Optimum Cost of Quality S. Ajit Quality cost Quality of conformance Total cost Internal & External failure cost Optimum Total cost Prevention & appraisal cost Purpose of Quality Cost Analysis : Purpose of Quality Cost Analysis S. Ajit To determine the cost of maintaining a certain level of quality To provide feedback to management on the performance of quality assurance and in identifying opportunities for quality improvement & cost reduction Analysis techniques for Quality Costs : Analysis techniques for Quality Costs Trend Analysis Involves comparing present cost levels to past levels Provides info for long range planning Data come from monthly report Accomplished by cost category, by sub-category, by product, by department or by combinations S. Ajit Slide 25: Vilfredo Pareto -an Italian economist He observed in 1906 that 20% of the Italian population owned 80% of Italy's wealth He then noticed that 20% of the pea pods in his garden accounted for 80% of his pea crop each year S. Ajit Slide 26: Pareto Principle “The Vital Few and Trivial Many Rule” A small number of causes is responsible for a large percentage of the effect - usually a 20-percent to 80-percent ratio. “80:20 Rule” 20% of the defects cause 80% of the problems. S. Ajit Slide 27: Pareto Diagram of Total Printing Defects Pareto Diagram is a combined bar chart and line diagram based on cumulative percentages. 80% improvement in quality or performance can reasonably be expected by eliminating 20% of the causes of unacceptable quality or performance S. Ajit Quality Council : Quality Council To build quality into the culture, a quality council is established to provide overall direction Council is composed of The CEO, Senior Managers of the functional areas such as design, marketing, finance, production etc and a coordinator Trade union can also have representatives S. Ajit Quality Council : Quality Council Duties Develop the core values, vision, mission and quality policy statements Develop strategic long term plan & annual quality improvement programs Create the total education & training plans Determine and monitor continuously cost of poor quality Establish and revise the recognition & reward system S. Ajit Quality Statements : Quality Statements "Vision without action is a daydream. Action without vision is a nightmare." – Japanese proverb Vision Statement A short declaration of what an organization aspires to be in the future An ideal state that an organization continually strives to achieve Infosys "To be a globally respected corporation that provides best-of-breed business solutions, leveraging technology, delivered by best-in-class people." S. Ajit Quality Statements : Quality Statements Mission Statement Answers the following questions: Who we are? Who are our customers?, What we do? And How we do it? Easy to understand and describes the function of the organization Provides a clear statement of purpose for employees, customers, and suppliers Infosys "To achieve our objectives in an environment of fairness, honesty, and courtesy towards our clients, employees, vendors and society at large." S. Ajit Quality Statements : Quality Statements Quality Policy statement Guide for everyone in the organization as to how they should provide products/service to the customers Written after obtaining feedback from the workforce and is approved by the quality council XeroX “Xerox is a quality company. Quality is the basic business principle of Xerox. Quality means providing our external and internal customers with innovative products and services that fully satisfy their requirements. Quality is the job of every employee” S. Ajit Slide 33: S. Ajit Total Quality Management Figenbaum coined the word Company wide quality control (Japan- about Japan) Has become a question of survival in the intense competitive environment Slide 34: S. Ajit Meeting quality expectations as defined by the customer the art of managing the total organization to achieve excellence in all spheres of activity (Besterfield) integration of all functions & processes within an organization in order to achieve the continuous improvement of the quality of goods & services What is Total Quality Management? Slide 35: S. Ajit TQM is a comprehensive management system which: Focuses on meeting customers’ needs, by providing quality services at a reasonable cost. Focuses on continuous improvement. Recognizes role of everyone in the organization. Views organization as an internal system with a common aim. Emphasizes teamwork What is Total Quality Management? Evolution of TQM : Evolution of TQM S. Ajit HISTORY of TQM : HISTORY of TQM 1900s FW Taylor – Scientific approach to management Standardization, Inspection, Supervision, Time and motion studies S. Ajit HISTORY of TQM : 1920s - 1930s: Walter Shewhart’s Statistical Quality/Process Control In 1924, W. A. Shewhart of Bell Telephone Labs developed a statistical chart for the control of product variables Beginning of SQC and SPC. HISTORY of TQM S. Ajit HISTORY of TQM : HISTORY of TQM 1950s, W. Edwards Deming was invited to lead the quality movement in Japan W. Edwards Deming, who learnt SQC from Shewhart, taught SPC & SQC to Japanese engineers and CEO’s S. Ajit HISTORY of TQM : HISTORY of TQM In 1951, Joseph Juran published “quality control handbook” Standard reference for quality control departments in organizations Juran and Deming introduced the concept of SQC to Japanese S. Ajit HISTORY of TQM : HISTORY of TQM Dr. Armand V. Figenbaum 1961, Total Quality Control Four Cost of Quality S. Ajit HISTORY of TQM : HISTORY of TQM Philip Crosby Zero defects “do it right first time” 1961: Zero defects, Martin Marietta Corporation (carried first astronauts into space) S. Ajit HISTORY of TQM : HISTORY of TQM 1964, Dr. Ishikawa Fish bone diagram/ Cause & effect diagram Quality circles in Japan S. Ajit HISTORY of TQM : 1970-80: Just-in-Time & Quality become crucial for competitiveness 1980s – six sigma 1990s – Business Process Reengineering, Quality Function Deployment HISTORY of TQM S. Ajit Quality Gurus : Quality Gurus S. Ajit Principles of TQM : S. Ajit Principles of TQM Top Management Commitment Focus on the customer Effective involvement & utilization of the entire work force Continuous improvement Treating suppliers as partners Establishing performance measures for the processes Slide 47: S. Ajit TQM & organizational Cultural Change Traditional Approach Lack of communication Control of staff Inspection & fire fighting Internal focus on rule Stability seeking Adversarial relations Allocating blame TQM Open communications Empowerment Prevention External focus on customer Continuous improvement Co-operative relations Solving problems at their roots Benefits of TQM : Benefits of TQM Increase in System efficiency, worker morale, customer satisfaction Decrease in complaints, costs, production There is a strong link between TQM and financial performance Studies show that small organizations outperform larger organizations in successful implementation of TQM S. Ajit Barriers to the Implementation of TQM : S. Ajit Barriers to the Implementation of TQM Lack of management commitment Inability to change organizational culture Improper planning Lack of continuous training and education Incompatible organizational structure Insufficient resources Ineffective measurement techniques Inadequate attention to internal and external customers Lack of employee involvement Inadequate use of teamwork Deming’s fourteen points for TQM : S. Ajit Deming’s fourteen points for TQM Create constancy of purpose. Adopt the new philosophy. Cease dependence on inspection to achieve quality. End the practice of awarding business on the basis of price tag alone. Improve constantly and forever every process. Institute modern training (for everybody!). Institute modern methods of supervision Deming’s fourteen points for TQM : S. Ajit Deming’s fourteen points for TQM Encourage employees to speak up. Break down barriers between departments. Eliminate slogans, exhortations, and targets for the work force. Eliminate work standards that prescribe numerical quotas. Remove barriers to pride in workmanship. Institute a vigorous program of education and self-improvement for everyone. Place everybody in the company to work to accomplish thetransformation and create a structure in top management that will pushevery day on the above points. Deming’s Deadly Diseases : S. Ajit Deming’s Deadly Diseases Lack of constancy of purpose. Emphasis on short-term profits: short-term thinking (just the opposite from constancy of purpose to stay in business). Management by fear. Mobility of management: job hopping. Use of visible figures only for management, with little or no consideration of figures that are unknown or unknowable. Excessive costs of liability, fueled by lawyers that work on contingency fees Leadership : Leadership Leadership is the ability to influence individuals or groups toward the achievement of goals. Leadership is the ability to get work done with and through others, while at the same time winning their confidence, respect, loyalty and willing cooperation. Leadership is the ability to persuade or motivate people to achieve a goal of outcome. S. Ajit Leaders… : Leaders… Provide Direction – Show the Way, Vision - What Success Looks Like Objectives - How we will win Goals - How much, by when Strategies Communicate - The Direction - What benefits we expect to get Progress - Results achieved to date Enable – Set Up People for Success, Provide resources - people, time, $$$ Provide training - build needed skills Provide methods to accomplish assigned tasks Remove barriers Coach and Counsel Recognize: Recognize accomplishments and results - Psychological rewards - Financial rewards Reinforce desired behavior - Catch people doing things right S. Ajit Role of TQM leaders : 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 organization 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 Senior managers must liaise with internal ,external and suppliers through visits, focus groups, surveys They must live and communicate TQM. S. Ajit Strategic Planning : Strategic Planning 7 steps to strategic planning Customer needs Customer positioning Predict the future Gap analysis Closing the gap Alignment Implementation. Slide 57: End of Unit I S. Ajit You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
TQM-chapter I mkkaran90 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 467 Category: Education License: All Rights Reserved Like it (1) Dislike it (0) Added: November 25, 2010 This Presentation is Public Favorites: 1 Presentation Description No description available. Comments Posting comment... By: praveensmallya (13 month(s) ago) pls pls pls lemme download this .. Saving..... Post Reply Close Saving..... Edit Comment Close By: muhamadaidil (16 month(s) ago) Can u have this slide? Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Total Quality Management : S. Ajit Total Quality Management Total Quality Management : S. Ajit Total Quality Management Books for Reference: Dale H. Besterfiled, et al, Total Quality Management Narayana V. & Sreenivasan, Quality Management JeyKumar, Quality Management Vijayaraghavan, Total Quality Management Total Quality Management : S. Ajit Total Quality Management Unit I - Introduction Quality, dimensions of quality, Cost of Quality, Quality council, quality statements Total Quality Management TQM Leadership Barriers to TQM implementation Total Quality Management : S. Ajit Total Quality Management Unit II – TQM Principles Customer satisfaction, complaints, retention Employment involvement Juran, PDSA Cycle, Supplier partnership Performance measures Total Quality Management : S. Ajit Total Quality Management Unit III – Statistical Process Control Measures of central tendency, dispersion, normal curve Control charts – variables, attributes Process capability Six sigma Seven old and new tools of quality Total Quality Management : S. Ajit Total Quality Management Unit IV – TQM tools Benchmarking Quality Function Deployment – House of Quality Taguchi loss function Total Productive Management (TPM) Failure Mode & Effect Analysis (FMEA) Total Quality Management : S. Ajit Total Quality Management Unit V – Quality Systems ISO Implementation of quality system Documentation Quality Audit ISO 14000 Quality : S. Ajit Quality Fitness for intended Use (Joseph Juran) Conformance to specifications (Philip Crosby) Meeting or exceeding customer expectation Lack of manufacturing or service defects Definition by ISO: The degree to which a set of inherent characteristics fulfills requirements Degree: poor, good, excellent Inherent: permanent Characteristics – qualitative or quantitative Requirement – need or expectation that is implied Quality : S. Ajit Quality Quality = Performance / Expectation get it right, the first time, every time. quality is a journey, not a destination 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. Slide 10: S. Ajit The Eight Dimensions of Product Quality Slide 11: S. Ajit The Eight Dimensions of Product Quality Slide 12: S. Ajit Strategic Implications of the Eight Dimensions of Quality Use some but not all of the dimensions of quality. (It is unwise and often impossible to pursue excellence in all dimensions.) Conduct market research to determine which of the dimensions of quality are most important to your customers. Do not introduce or persist with dimensions of quality that are unimportant to your customers. The Seven Dimensions of Service Quality : S. Ajit The Seven Dimensions of Service Quality Quality planning : Quality planning Systematic process that translates quality policy into measurable objectives and requirements, and lays down a sequence of steps for realizing them within a specified time frame. A quality plan sets out the desired product qualities and how these are assessed and defines the most significant quality attributes. The quality plan should define the quality assessment process. It should set out which organisational standards should be applied and, where necessary, define new standards to be used. S. Ajit Quality plans : S. Ajit Quality plans Quality plan structure Product introduction; Product plans; Process descriptions; Quality goals; Risks and risk management. Quality plans should be short, succinct documents If they are too long, no-one will read them. Quality Cost : Quality Cost Joseph Juran, 1951, Quality Control Handbook. Feigenbaum made it one of the core ideas underlying the Total Quality Management movement Quality costs are the costs associated with preventing, finding, and correcting defective work. These costs are huge, running at 20% - 40% of sales. Many of these costs can be significantly reduced or completely avoided. One of the key functions of a Quality Engineer is the reduction of the total cost of quality associated with a product. S. Ajit Quality Cost : Quality Cost Prevention Costs / Cost of Conformance: Cost incurred in preventing a quality problem from arising Cost of quality planning Process control cost Cost of training Cost of investigation analysis Cost of quality awareness programs. S. Ajit Quality Cost : Quality Cost Appraisal Costs: Cost incurred in assessing that the products/services conform to the requirements Cost of test and inspection Cost of maintenance of testing and inspecting equipments Cost of test equipment depreciation Cost of line quality engineering S. Ajit Quality Cost : Quality Cost Failure Costs: Costs that result from poor quality, such as the cost of fixing defects and the cost of dealing with customer complaints. Internal External S. Ajit Quality Cost : Quality Cost Internal Failure Costs: Failure costs that arise before the company supplies its product to the customer. Cost associated with scrap and rejects Cost of repair and rework Cost of design changes Cost of trouble shooting Cost of re-inspection and re-testing S. Ajit Quality Cost : Quality Cost External Failure Costs: Failure costs that arise after the company supplies the product to the customer Cost of processing complaints Cost of commissioning failures Cost of servicing/replacing defective items Cost of guarantee/warranty claims External failure costs are huge. It is much cheaper to fix problems before shipping the defective product to customers. S. Ajit Optimum Cost of Quality : Optimum Cost of Quality S. Ajit Quality cost Quality of conformance Total cost Internal & External failure cost Optimum Total cost Prevention & appraisal cost Purpose of Quality Cost Analysis : Purpose of Quality Cost Analysis S. Ajit To determine the cost of maintaining a certain level of quality To provide feedback to management on the performance of quality assurance and in identifying opportunities for quality improvement & cost reduction Analysis techniques for Quality Costs : Analysis techniques for Quality Costs Trend Analysis Involves comparing present cost levels to past levels Provides info for long range planning Data come from monthly report Accomplished by cost category, by sub-category, by product, by department or by combinations S. Ajit Slide 25: Vilfredo Pareto -an Italian economist He observed in 1906 that 20% of the Italian population owned 80% of Italy's wealth He then noticed that 20% of the pea pods in his garden accounted for 80% of his pea crop each year S. Ajit Slide 26: Pareto Principle “The Vital Few and Trivial Many Rule” A small number of causes is responsible for a large percentage of the effect - usually a 20-percent to 80-percent ratio. “80:20 Rule” 20% of the defects cause 80% of the problems. S. Ajit Slide 27: Pareto Diagram of Total Printing Defects Pareto Diagram is a combined bar chart and line diagram based on cumulative percentages. 80% improvement in quality or performance can reasonably be expected by eliminating 20% of the causes of unacceptable quality or performance S. Ajit Quality Council : Quality Council To build quality into the culture, a quality council is established to provide overall direction Council is composed of The CEO, Senior Managers of the functional areas such as design, marketing, finance, production etc and a coordinator Trade union can also have representatives S. Ajit Quality Council : Quality Council Duties Develop the core values, vision, mission and quality policy statements Develop strategic long term plan & annual quality improvement programs Create the total education & training plans Determine and monitor continuously cost of poor quality Establish and revise the recognition & reward system S. Ajit Quality Statements : Quality Statements "Vision without action is a daydream. Action without vision is a nightmare." – Japanese proverb Vision Statement A short declaration of what an organization aspires to be in the future An ideal state that an organization continually strives to achieve Infosys "To be a globally respected corporation that provides best-of-breed business solutions, leveraging technology, delivered by best-in-class people." S. Ajit Quality Statements : Quality Statements Mission Statement Answers the following questions: Who we are? Who are our customers?, What we do? And How we do it? Easy to understand and describes the function of the organization Provides a clear statement of purpose for employees, customers, and suppliers Infosys "To achieve our objectives in an environment of fairness, honesty, and courtesy towards our clients, employees, vendors and society at large." S. Ajit Quality Statements : Quality Statements Quality Policy statement Guide for everyone in the organization as to how they should provide products/service to the customers Written after obtaining feedback from the workforce and is approved by the quality council XeroX “Xerox is a quality company. Quality is the basic business principle of Xerox. Quality means providing our external and internal customers with innovative products and services that fully satisfy their requirements. Quality is the job of every employee” S. Ajit Slide 33: S. Ajit Total Quality Management Figenbaum coined the word Company wide quality control (Japan- about Japan) Has become a question of survival in the intense competitive environment Slide 34: S. Ajit Meeting quality expectations as defined by the customer the art of managing the total organization to achieve excellence in all spheres of activity (Besterfield) integration of all functions & processes within an organization in order to achieve the continuous improvement of the quality of goods & services What is Total Quality Management? Slide 35: S. Ajit TQM is a comprehensive management system which: Focuses on meeting customers’ needs, by providing quality services at a reasonable cost. Focuses on continuous improvement. Recognizes role of everyone in the organization. Views organization as an internal system with a common aim. Emphasizes teamwork What is Total Quality Management? Evolution of TQM : Evolution of TQM S. Ajit HISTORY of TQM : HISTORY of TQM 1900s FW Taylor – Scientific approach to management Standardization, Inspection, Supervision, Time and motion studies S. Ajit HISTORY of TQM : 1920s - 1930s: Walter Shewhart’s Statistical Quality/Process Control In 1924, W. A. Shewhart of Bell Telephone Labs developed a statistical chart for the control of product variables Beginning of SQC and SPC. HISTORY of TQM S. Ajit HISTORY of TQM : HISTORY of TQM 1950s, W. Edwards Deming was invited to lead the quality movement in Japan W. Edwards Deming, who learnt SQC from Shewhart, taught SPC & SQC to Japanese engineers and CEO’s S. Ajit HISTORY of TQM : HISTORY of TQM In 1951, Joseph Juran published “quality control handbook” Standard reference for quality control departments in organizations Juran and Deming introduced the concept of SQC to Japanese S. Ajit HISTORY of TQM : HISTORY of TQM Dr. Armand V. Figenbaum 1961, Total Quality Control Four Cost of Quality S. Ajit HISTORY of TQM : HISTORY of TQM Philip Crosby Zero defects “do it right first time” 1961: Zero defects, Martin Marietta Corporation (carried first astronauts into space) S. Ajit HISTORY of TQM : HISTORY of TQM 1964, Dr. Ishikawa Fish bone diagram/ Cause & effect diagram Quality circles in Japan S. Ajit HISTORY of TQM : 1970-80: Just-in-Time & Quality become crucial for competitiveness 1980s – six sigma 1990s – Business Process Reengineering, Quality Function Deployment HISTORY of TQM S. Ajit Quality Gurus : Quality Gurus S. Ajit Principles of TQM : S. Ajit Principles of TQM Top Management Commitment Focus on the customer Effective involvement & utilization of the entire work force Continuous improvement Treating suppliers as partners Establishing performance measures for the processes Slide 47: S. Ajit TQM & organizational Cultural Change Traditional Approach Lack of communication Control of staff Inspection & fire fighting Internal focus on rule Stability seeking Adversarial relations Allocating blame TQM Open communications Empowerment Prevention External focus on customer Continuous improvement Co-operative relations Solving problems at their roots Benefits of TQM : Benefits of TQM Increase in System efficiency, worker morale, customer satisfaction Decrease in complaints, costs, production There is a strong link between TQM and financial performance Studies show that small organizations outperform larger organizations in successful implementation of TQM S. Ajit Barriers to the Implementation of TQM : S. Ajit Barriers to the Implementation of TQM Lack of management commitment Inability to change organizational culture Improper planning Lack of continuous training and education Incompatible organizational structure Insufficient resources Ineffective measurement techniques Inadequate attention to internal and external customers Lack of employee involvement Inadequate use of teamwork Deming’s fourteen points for TQM : S. Ajit Deming’s fourteen points for TQM Create constancy of purpose. Adopt the new philosophy. Cease dependence on inspection to achieve quality. End the practice of awarding business on the basis of price tag alone. Improve constantly and forever every process. Institute modern training (for everybody!). Institute modern methods of supervision Deming’s fourteen points for TQM : S. Ajit Deming’s fourteen points for TQM Encourage employees to speak up. Break down barriers between departments. Eliminate slogans, exhortations, and targets for the work force. Eliminate work standards that prescribe numerical quotas. Remove barriers to pride in workmanship. Institute a vigorous program of education and self-improvement for everyone. Place everybody in the company to work to accomplish thetransformation and create a structure in top management that will pushevery day on the above points. Deming’s Deadly Diseases : S. Ajit Deming’s Deadly Diseases Lack of constancy of purpose. Emphasis on short-term profits: short-term thinking (just the opposite from constancy of purpose to stay in business). Management by fear. Mobility of management: job hopping. Use of visible figures only for management, with little or no consideration of figures that are unknown or unknowable. Excessive costs of liability, fueled by lawyers that work on contingency fees Leadership : Leadership Leadership is the ability to influence individuals or groups toward the achievement of goals. Leadership is the ability to get work done with and through others, while at the same time winning their confidence, respect, loyalty and willing cooperation. Leadership is the ability to persuade or motivate people to achieve a goal of outcome. S. Ajit Leaders… : Leaders… Provide Direction – Show the Way, Vision - What Success Looks Like Objectives - How we will win Goals - How much, by when Strategies Communicate - The Direction - What benefits we expect to get Progress - Results achieved to date Enable – Set Up People for Success, Provide resources - people, time, $$$ Provide training - build needed skills Provide methods to accomplish assigned tasks Remove barriers Coach and Counsel Recognize: Recognize accomplishments and results - Psychological rewards - Financial rewards Reinforce desired behavior - Catch people doing things right S. Ajit Role of TQM leaders : 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 organization 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 Senior managers must liaise with internal ,external and suppliers through visits, focus groups, surveys They must live and communicate TQM. S. Ajit Strategic Planning : Strategic Planning 7 steps to strategic planning Customer needs Customer positioning Predict the future Gap analysis Closing the gap Alignment Implementation. Slide 57: End of Unit I S. Ajit