Total Quality Management-05.05.2011

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Total Quality Management:

Total Quality Management

Session Plan:

3- 2 Session Plan Introduction to concepts of TQM Meaning of TQM Principles of TQM Cost of Quality TQM Reasons for failure Measurement of Quality

Total Quality Management:

Total Quality Management Total - made up of the whole Quality - degree of excellence a product or service provides Management - act, art or manner of planning, controlling, directing,…. Therefore, TQM is the art of managing the whole to achieve excellence .

Total Quality Management:

Total Quality Management TQM is a philosophy which applies equally to all parts of the organization. TQM can be viewed as an extension of the traditional approach to quality. TQM places the customer at the forefront of quality decision making. Greater emphasis on the roles and responsibilities of every member of staff within an organization to influence quality. All staff are empowered.

Total Quality Management:

3- 5 Total Quality Management Definition Total quality management (TQM) may simply be defined as, “continuously improving customer satisfaction levels and simultaneously improving business performance by gaining the commitment and involvement of all employees in an organization”

What’s the goal of TQM?:

3- 6 What’s the goal of TQM? “Do the right things right the first time, every time.”

Principles of TQM:

Copyright 2006 John Wiley & Sons, Inc. 3- 7 Principles of TQM 1. Customer defined quality 2. Top management leadership 3. Quality as a strategic issue 4. All employees responsible for quality 5. Continuous improvement 6. Shared problem solving 7. Statistical quality control 8. Training & education for all employees

TQM Throughout The Organization:

Copyright 2006 John Wiley & Sons, Inc. 3- 8 TQM Throughout The Organization Marketing, sales, R&D Engineering Purchasing Personnel Management Packing, storing, shipping Customer service

Productivity and TQM:

Copyright 2006 John Wiley & Sons, Inc. 3- 9 Traditional view: Quality cannot be improved without significant losses in productivity. TQM view: Improved quality leads to improved productivity. Productivity and TQM

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 & organizational Cultural Change TQM Open communications Empowerment Prevention External focus on customer Continuous improvement Co-operative relations Solving problems at their roots

Cost of Quality:

Copyright 2006 John Wiley & Sons, Inc. 3- 11 Cost of Quality Cost of Achieving Good Quality Prevention costs costs incurred during product design Appraisal costs costs of measuring, testing, and analyzing Cost of Poor Quality Internal failure costs include scrap, rework, process failure, downtime, and price reductions External failure costs include complaints, returns, warranty claims, liability, and lost sales

Prevention Costs:

Copyright 2006 John Wiley & Sons, Inc. 3- 12 Prevention Costs Quality planning costs costs of developing and implementing quality management program Product-design costs costs of designing products with quality characteristics Process costs costs expended to make sure productive process conforms to quality specifications Training costs costs of developing and putting on quality training programs for employees and management Information costs costs of acquiring and maintaining data related to quality, and development of reports on quality performance

Appraisal Costs:

Copyright 2006 John Wiley & Sons, Inc. 3- 13 Appraisal Costs Inspection and testing costs of testing and inspecting materials, parts, and product at various stages and at the end of a process Test equipment costs costs of maintaining equipment used in testing quality characteristics of products Operator costs costs of time spent by operators to gar data for testing product quality, to make equipment adjustments to maintain quality, and to stop work to assess quality

Internal Failure Costs:

Copyright 2006 John Wiley & Sons, Inc. 3- 14 Internal Failure Costs Scrap costs costs of poor-quality products that must be discarded, including labor, material, and indirect costs Rework costs costs of fixing defective products to conform to quality specifications Process failure costs costs of determining why production process is producing poor-quality products Process downtime costs costs of shutting down productive process to fix problem Price-downgrading costs costs of discounting poor-quality products—that is, selling products as “seconds”

External Failure Costs:

Copyright 2006 John Wiley & Sons, Inc. 3- 15 External Failure Costs Customer complaint costs costs of investigating and satisfactorily responding to a customer complaint resulting from a poor-quality product Product return costs costs of handling and replacing poor-quality products returned by customer Warranty claims costs costs of complying with product warranties Product liability costs litigation costs resulting from product liability and customer injury Lost sales costs costs incurred because customers are dissatisfied with poor quality products and do not make additional purchases

Measuring and Reporting Quality Costs:

Copyright 2006 John Wiley & Sons, Inc. 3- 16 Measuring and Reporting Quality Costs Index numbers ratios that measure quality costs against a base value labor index ratio of quality cost to labor hours cost index ratio of quality cost to manufacturing cost sales index ratio of quality cost to sales production index ratio of quality cost to units of final product

Obstacles to Implementing TQM:

Obstacles to Implementing TQM Lack of a company-wide definition of quality. Lack of a formalized strategic plan for change. Lack of a customer focus. Poor inter-organizational communication. Lack of real employee empowerment. Lack of employee trust in senior management. View of the quality program as a quick fix. Drive for short-term financial results. Politics and turf issues. 3- 17

Some criticisms of TQM:

Some criticisms of TQM Blind pursuit of TQM programs Programs may not be linked to strategies Quality-related decisions may not be tied to market performance Failure to carefully plan a program Copyright 2006 John Wiley & Sons, Inc. 3- 18

Seven Quality Control Tools:

Copyright 2006 John Wiley & Sons, Inc. 3- 19 Seven Quality Control Tools Pareto Analysis Flow Chart Check Sheet Histogram Scatter Diagram SPC Chart Cause-and-Effect Diagram

Pareto Analysis:

Copyright 2006 John Wiley & Sons, Inc. 3- 20 NUMBER OF CAUSE DEFECTS PERCENTAGE Poor design 80 64 % Wrong part dimensions 16 13 Defective parts 12 10 Incorrect machine calibration 7 6 Operator errors 4 3 Defective material 3 2 Surface abrasions 3 2 125 100 % Pareto Analysis

Pareto Chart:

Copyright 2006 John Wiley & Sons, Inc. 3- 21 Percent from each cause Causes of poor quality Machine calibrations Defective parts Wrong dimensions Poor Design Operator errors Defective materials Surface abrasions 0 10 20 30 40 50 60 70 (64) (13) (10) (6) (3) (2) (2) Pareto Chart

Flow Chart:

Copyright 2006 John Wiley & Sons, Inc. 3- 22 Flow Chart Operation Decision Start/ Finish Start/ Finish Operation Operation Operation Operation Decision

Check Sheet:

Copyright 2006 John Wiley & Sons, Inc. 3- 23 Check Sheet COMPONENTS REPLACED BY LAB TIME PERIOD: 22 Feb to 27 Feb 2002 REPAIR TECHNICIAN: Bob TV SET MODEL 1013 Integrated Circuits |||| Capacitors |||| |||| |||| |||| |||| || Resistors || Transformers |||| Commands CRT |

Histogram:

Copyright 2006 John Wiley & Sons, Inc. 3- 24 Histogram 0 5 10 15 20 1 2 6 13 10 16 19 17 12 16 2017 13 5 6 2 1

Scatter Diagram:

Copyright 2006 John Wiley & Sons, Inc. 3- 25 Scatter Diagram Y X

Control Chart:

Copyright 2006 John Wiley & Sons, Inc. 3- 26 Control Chart 18 12 6 3 9 15 21 24 2 4 6 8 10 12 14 16 Sample number Number of defects UCL = 23.35 LCL = 1.99 c = 12.67

Cause-and-Effect Diagram :

Copyright 2006 John Wiley & Sons, Inc. 3- 27 Cause-and-Effect Diagram Quality Problem Out of adjustment Tooling problems Old / worn Machines Faulty testing equipment Incorrect specifications Improper methods Measurement Poor supervision Lack of concentration Inadequate training Human Deficiencies in product design Ineffective quality management Poor process design Process Inaccurate temperature control Dust and Dirt Environment Defective from vendor Not to specifications Material- handling problems Materials

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