Total Quality Management :Total Quality Management Session 1


What is Quality :What is Quality FEIGENBAUM (1983) DEFINED QUALITY AS FOLLOWS Quality is total composite product (goods and services) characteristics, through which the product in use will meet the needs and expectations of the customers. Concept of quality must start with identification of customer quality requirements and must end only when the finished product is placed into the hands of the customer who remains satisfied through various stages of relationship with the seller American Society of Quality Control (ASQC) and American National Standard Institute (ANSI) defined Quality is totality of features and characteristics of product (goods and services) that bears on its ability to satisfy given needs”


Approaches to define Quality :Approaches to define Quality Transcendent Approach Quality is absolute and universally recognisable. It is common notion used by laymen There is no subjective judgement and is estimated by looking at the product Product Based Approach Attributes of a particular product in a specific category These attributes are accepted as bench of quality by the industry Others in the same industry try to produce close to this quality


Approaches to define Quality :Approaches to define Quality User Based Approach Defined as “Fitness for use” Viewed from user’s perspective and is dependent on how well does the product meet needs of the consumer. Also known as Customer Oriented Approach Production Based Approach An outcome of engineering or operational excellence and is measured in terms of quality of conformance The producer has specifications and produces the product as per the specifications


Approaches to define Quality :Approaches to define Quality Value Based Approach Quality is viewed in context of price Quality is satisfactory, if it provides desired performance at an acceptable price Customer looks at the total value proposition and not the price alone


Attributes of Quality :Attributes of Quality Performance Product’s primary operating characteristics Features Augmented product – The “bells & whistles” of the product Reliability Ability of the product to function at the specified level of performance Conformance Degree to which characteristics of the product meet pre-established standards


Attributes of Quality :Attributes of Quality Durability Length of time a product can be used before it deteriorates or becomes non functional Serviceability Speed, competence & courtesy of providing ASS Aesthetics Look, feel sound, taste, smell Perceived Quality Resulting from advertisement, image, brand name, earlier use, hearsay


Evolution of Quality Management :Evolution of Quality Management Total Quality Management


Evolution of Quality Management :Evolution of Quality Management Mass Inspection Inspecting Salvaging Sorting Grading Rectifying Rejecting Quality Control Quality manuals Product testing using SQC Basic quality planning Quality Assurance Emphasis on prevention Proactive approach using SPC Advance quality planning Total Quality Control All aspects of quality of inputs Testing equipments Control on processes


Evolution of Quality Management :Evolution of Quality Management Company wide Quality Control Measured in all functions connected with production such as R&D Design Engineering Purchasing, Operations etc Total Quality Management Measured in all aspects of business, Top management commitment Continuous improvement Involvement & participation of employees


Evolution of Quality Management :Evolution of Quality Management


Evolution of Quality Management :Evolution of Quality Management


Gurus of TQM :Gurus of TQM Dr. W E Deming Dr. J M Juran Dr. Philip Crosby


Gurus of TQM :Gurus of TQM Dr. Kaoru Ishikawa Dr. Genichi Taguchi Dr. Masaaki Imai


Gurus of TQM :Gurus of TQM Dr. Shigeo Shingo Dr. Yoshio Kondo Dr .Armand V. Feigenbaum Dr. James Harrington


W E Deming :W E Deming Reduction in process variability by extensive use of statistics will lead to improvement in quality and increase in productivity Talked about New Climate (organisational culture) Joy in work Innovation Co-operation Win-Win approach He proposed a 14 point TQM programme


W E Deming 14 Points :W E Deming 14 Points


W E Deming – PDCA Cycle :W E Deming – PDCA Cycle


Seven Deadly Sins :Seven Deadly Sins Lack of vision and mission as regards quality & process improvement Emphasis on short term profit Personal performance appraisal systems Mobility of management Running a company on visible figures alone Customer satisfaction level Employee morale Relationship with your vendors Confidence the market has in your company


Seven Deadly Sins :Excess non-productive expenditure Excessive cost of warranty Seven Deadly Sins


Deming’s Prize :Deming’s Prize Establish in 1950 originally for Japanese companies for major advances in quality improvement Deming’s Prize is given under Japanese Union of Scientists & Engineers These days Deming’s Prize is awarded to non Japanese companies and even individuals 2001 – Sundram Brake Linings, the world’s first friction material company to win 2008 – Tata Steel is the first integrated steel plant in Asia to win


Malcolm Baldrige National Quality Award :Malcolm Baldrige National Quality Award MBNQA is given by United States National Institute of Standards and Technology Original stated purpose of the award were promote quality awareness recognise quality achievements of the US companies publicise successful quality strategies Current award criteria are stated To help improve organizational performance practices, capabilities and results To facilitate communication and sharing of the best practice information among US organizations of all types To serve as a working tool for understanding and managing performance and for guiding planning and opportunities for learning


Malcolm Baldrige National Quality Award :Malcolm Baldrige National Quality Award The categories are Leadership Strategic Planning Customer & Market Focus Measurement, Analysis and Knowledge Management Workforce Focus Process Management Results


J M Juran :J M Juran Developed the idea of trilogy Quality Planning Quality Improvement Quality Control Conformance to specifications is necessary but not sufficient requirement of a product. Fitness for use by the consumer of the targeted market segment is an essential requirement in addition to conformance


J M Juran’s Trilogy :J M Juran’s Trilogy


Juran’s 10 Points :Juran’s 10 Points Build awareness of need and opportunities for improvement Set goals for improvement Organise the overall improvement programme Provide the training solve problems through project methodology Report progress Give recognition Communicate results Keep score Institutionalise the improvement process


Philip Crosby :Philip Crosby Do it right the first time Zero Defects Absolutes of QM Quality is defined as conformance to requirements, not as 'goodness' or 'elegance' The system for causing quality is prevention, not appraisal – Quality is Free The performance standard must be Zero Defects, not "that's close enough" The measurement of quality is the Price of Non-conformance, not indices. Cost of quality is only the measure of operational performance


Crosby 14 points :Crosby 14 points Management commitment Quality improvement team Quality measurement Evaluation of cost of quality Quality awareness Corrective action Establish committee for zero defect planning Supervisor training Zero Defect Day Goal Setting Error cause removal Recognition


Cost of Quality :Cost of Quality Prevention Cost Cost associated with time spend in planning the quality system Consists of the following Process control costs Information systems costs Training Costs General Management cost


Cost of Quality :Cost of Quality Appraisal Costs Cost incurred on measurement & analysis of data in order to detect & correct problems Consist of Cost of maintaining, testing & inspection Process control costs Internal Failure Cost Incurred due to non-conformance Include Scrap and rework costs Cost of corrective action Downgrading costs


Cost of Quality :Cost of Quality External Failure Cost Occur when poor products reach customer Include Costs of customer complaints and returns Product recall costs Warranty claims costs Product liability costs


Genichi Taguchi :Genichi Taguchi His methodologies held ensure customer satisfaction Taguchi’s Loss Function Taguchi Method – Design of Experiments


Taguchi’s Loss Function :A quality product is a product that causes a minimal loss (expressed in money!) to society during it's entire life. The relation between this loss and the technical characteristics is expressed by the loss function Taguchi’s Loss Function


Taguchi’s Loss Function :Taguchi’s Loss Function


Kaoru Ishikawa :Kaoru Ishikawa Simplified statistical techniques for QC Cause and Effect diagrams (Ishikawa Diagrams or Fish Bone Diagrams) Company wide quality control quality does not only mean the quality of product, but also of after sales service, quality of management, the company itself and the human life


Ishikawa Diagram :Ishikawa Diagram


Ishikawa Diagram :Ishikawa Diagram Diagrams which show the causes of a certain event Three sets of causes 6 M’s Machine Method Maintenance Man Mother Nature


Ishikawa Diagram :Ishikawa Diagram 8 Ps Price Promotion Process Place/Plant Policies Procedures Product (or Service) 4 Ss Surroundings Suppliers Systems Skills


Masaaki Imai :Masaaki Imai Introduced the concept of Kaizen or continuous improvement


Shigeo Shingo :Shigeo Shingo “Fool-Proofing” or “Poke-Yoke” Source Inspection systems No statistical sampling is necessary Zero defects through good engineering and process investigation rather than slogans and exhortations


Yoshio Kondo :Yoshio Kondo Emphasised inter-relationship between quality and people Creativity – joy of thinking Physical activity – joy of working Sociality – joy of sharing pleasure and pain with colleagues


Toyota Production System :Toyota Production System


Toyota Production System :Toyota Production System Long – Term Philosophy Base your Management Decisions on a Long-Term Philosophy, even at the Expense of Short-Term Financial Goals


14 Principles of TPS :14 Principles of TPS The Right Process Will Produce the Right Results Create Continuous Process Flow to Bring Problems to the Surface Use “Pull” Systems to avoid Over Production Level out the Work Load (Heijunka) Build a Culture of Stopping to Fix Problems, to get Quality Right the First Time Standardised Tasks are the foundation for Continuous Improvement and Employee Empowerment Use Visual Control so no Problems are Hidden Use Only Reliable, Thoroughly Tested Technology that Serves your People and Processes


14 Principles of TPS :Continue ……. 14 Principles of TPS Add Value to the Organisation by Developing Your People and Partners Grow Leaders who thoroughly understand the Work, Live the Philosophy and Teach it to Others Develop Exceptional People and Teams who follow your Company’s Philosophy Respect your Extended Network of Partners and Suppliers by Challenging them and Helping them Improve


14 Principles of TPS :14 Principles of TPS Continuously Solving Root Problems Drives Organisational Learning Go and See for Yourself to thoroughly Understand the Situation Make Decisions Slowly by Consensus, thoroughly Considering all Options, Implement Decisions Rapidly Become a Learning Organisation through Relentless Reflection (Hansei) and Continuous Improvement (Kaizen)


“4 P” Model of the Toyota Way :Philosophy (Long-term Thinking) People and Partners (Respect, Challenge and Grow Them) Process (Eliminate Waste) Problem Solving (Continuous Improvement & Learning) Continual organizational learning through Kaizen Go see for yourself to thoroughly understand the situation (Genchi Genbutsu) Make decisions slowly by consensus, thoroughly considering all options; implement rapidly Grow leaders who live the philosophy Respect, develop, and challenge your people and teams Respect, challenge, and help your suppliers Create process “flow” to surface problems Use pull systems to avoid overproduction Level out the workload (Heijunka) Stop when there is a quality problem (Jidoka) Standardize tasks for continuous improvement Use visual control so no problems are hidden Use only reliable, thoroughly tested technology Base management decisions on a long-term philosophy, even at the expense of short-term financial goals “4 P” Model of the Toyota Way


“4 P” Model of the Toyota Way :Philosophy (Long-term Thinking) People and Partners (Respect, Challenge and Grow Them) Process (Eliminate Waste) Problem Solving (Continuous Improvement & Learning) Continual organizational learning through Kaizen Go see for yourself to thoroughly understand the situation (Genchi Genbutsu) Make decisions slowly by consensus, thoroughly considering all options; implement rapidly Grow leaders who live the philosophy Respect, develop, and challenge your people and teams Respect, challenge, and help your suppliers Create process “flow” to surface problems Use pull systems to avoid overproduction Level out the workload (Heijunka) Stop when there is a quality problem (Jidoka) Standardize tasks for continuous improvement Use visual control so no problems are hidden Use only reliable, thoroughly tested technology Base management decisions on a long-term philosophy, even at the expense of short-term financial goals Genchi Genbutsu Respect & Teamwork Kaizen Challenge Where Most “Lean” Companies are “4 P” Model of the Toyota Way


Slide 49:“4 P” Model of the Toyota Way


Toyota Production System House :Leveled Production (Heijunka) Stable and Standardized Processes Visual Management Toyota Way Philosophy Just-in-Time Right Part, Right Amount, Right Time Take Time Planning Continuous Flow Pull System Quick Changeover Integrated Logistics Jidoka (In-station Quality) Make Problems Visible Automatic Stops Andon Person – Machine Separation Error Proofing In-station Quality Control Solve Root Cause of Problems (5 Why’s) Best Quality – Lowest Cost – Shortest Lead Time – Best Safety – High Morale Through shortening the production flow by eliminating waste People & Teamwork Selection Common Goals Ringi Decision Making Cross – Trained Waste Reduction Genchi Genbutsu 5 Why’s Eyes for Waste Problem Solving Continuous Improvement Toyota Production System House


Deming’s PDCA Cycle :Check Check Check Check Plan Plan Plan Plan Act Act Act Act Do Do Do Do Across Companies Company Group Project Deming’s PDCA Cycle


Creating Flow :Evaluate Results (Check) Surface Problems (Plan) Counter Measures (Do) Eliminate Waste Create Flow (Act) Creating Flow


Three Ms :Muda Waste Muri Overburden Mura Unevenness Three Ms


Toyota’s Leader View :PEOPLE Long – term Asset –> Learned Skills Machinery Depreciates -> Loses Value People Appreciates -> Continue to Grow PHILOSOPHICAL MANAGEMENT TECHNICAL Technical Stability JIT Jidoke Kaizen Heijunka Management True North Tools to Focus Management Attention Go and See Problem – Solving Presentation Skills Project Management Supportive Culture Philosophy / Basic Thinking Customer First People are most Important Asset Kaizen Go and See -> Focus on Floor Give feedback to Team Members and Earn Respect Efficiency Thinking True (vs. apparent) Condition Total (vs. Individual) Team Involvement Toyota’s Leader View


Supply Chain Need Hierarchy :Learning Enterprise Enabling Systems Clear Expectations Stable, Reliable Processes Fair and Honorable Business Relations Progressing Need Satisfaction Regressing Need Satisfaction Next Level of Improvement Stability Supply Chain Need Hierarchy


Myth vs Reality :Myth vs Reality Myth What TPS is Not A Tangible recipe for Success A Management Project or Program A set of Tools for Implementation A system for Production Floor only Implementable in a Short or Mid-term Period Reality What TPS Is A Consistent way of Thinking A Total Management Philosophy Focus on Total Customer Satisfaction An Environment of Teamwork and Improvement A Never-ending Search for a Better Way Quality Built in Process Organised, Disciplined Workplace Evolutionary


Motivational Theories & TPS :Motivational Theories & TPS


5 S :5 S Seiri – Sorting Seiton – Straighten or Set in order Seiso – Sweeping, shining or cleaniness Seikestu – Standardising Shitsuke – Sustaining the discpline


5 S’s :Sort Clear out rarely used Items by Red Tagging Straighten Organise and Label a Place for Everything Shine Clean It Standardise Create Rules to Sustain the first 3 5’S Sustain Use Regular Management Audits to Stay Disciplined Eliminate Waste 5 S’s


Waste in a Value System :Time Casting Transportation Staging Setup Machining Inspection Assembly Staging Raw Material Time Finished Parts Value – Added Time Non-Value-Added Time (Waste) Value-added Time is only a Small Percentage of the Total Time Traditional Cost Savings focuses only on Value-adding Items Lean Thinking Focuses on the Value Stream to Eliminate Non-Value-Adding Items Waste in a Value System


Waste in a Truck Assembly Line :Waste in a Truck Assembly Line


Thank You :Thank You