Total Quality Management

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The PowerPoint on Total Quality Management was created by me to aid my study process, primarily for my exams. The sources for this file are TQM by Besterfield and TQM by Bharat Wakhlu

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PowerPoint Presentation: 

By Sourabh Jain MBA 2010 - 2012 National Institute of Technology Karnataka, Surathkal, India 12/10/2011 1 Sourabh Jain

Preface: 

Preface This is a PowerPoint file I created in order to help me in my studies. The material in these slides are a distilled version of the literature from 2 books Total Quality Management – 3 rd Edition – Besterfield, Michna, Besterfield, Sacre. Total Quality Management – Bharat Wakhlu 12/10/2011 Sourabh Jain 2

HOME: 

HOME Introduction Leadership Customer Satisfaction Employee Involvement Continuous Process Improvement Performance Measures QMS SPC 12/10/2011 3 Sourabh Jain

Introduction: 

Introduction 12/10/2011 4 Sourabh Jain

Quality: 

Quality Degree to which a set of inherent characteristics fulfils requirements. Q=Performance/Expectations TQM; T = Total i.e. company-wide, suppliers, customers; M = Management i.e. art of directing and controlling 12/10/2011 5 Sourabh Jain

Quality q and Total Quality Q: 

Quality q and Total Quality Q Product orientation Ensure produced goods are fit for sale No prevention, No learning 12/10/2011 6 Sourabh Jain

Quality q and Total Quality Q: 

Quality q and Total Quality Q Customer/Process/Product orientation Listen to customer, product design, process optimized Right the first time, every time; Learning; importance of internal customers 12/10/2011 7 Sourabh Jain

Dimensions of Quality: 

Dimensions of Quality Dimension Meaning Performance Primary product characteristics Features Added features Conformance Meeting standards Reliability Consistency of performance Durability Useful life Service Resolution of complaints Response Human to human interface Aesthetics Sensory characteristics Reputation Past performance 12/10/2011 8 Sourabh Jain

Total Quality: 

Total Quality Performance Superiority Delight customers Provide value (value=quality/cost) Doing the right things Right the first time 12/10/2011 9 Sourabh Jain

Definition of TQM: 

Definition of TQM TQM is the art of managing the whole to achieve excellence. TQM is a philosophy and a set of guiding principles that represent the foundation of a continually improving firm. It is the application of quantitative methods and HR to improve all processes within a firm and exceed customer needs now and in the future. 12/10/2011 10 Sourabh Jain

6 basic concepts of TQM: 

6 basic concepts of TQM Committed and involved management to provide long term- top to bottom – organizational support Unwavering focus on the customer – internal and external Effective involvement and utilization of entire workforce Continuous improvement of business and production process Treat suppliers as partners Establish performance measures for processes 12/10/2011 11 Sourabh Jain

Culture changes for TQM: 

Culture changes for TQM Quality element OLD CULTURE TQM CULTURE Definition Product oriented Customer oriented Priorities Second to service and cost Equal to service and cost Decisions Short term Long term Emphasis Detection Prevention Errors Operations System Responsibility Quality Control Everyone Problem Solving Managers Teams Procurement Price Life cycle costs, Partnership Manager’s Role Plan, assign, control, enforce Delegate, coach, facilitate, mentor 12/10/2011 12 Sourabh Jain

Model for TQM: 

Model for TQM Outstanding Leadership Product, Services and Process Systems and Procedures People power CONTINUOUS SYSTEMATIC IMPROVEMENT BENCHMARKING CUSTOMER FOCUS MEETING/ EXCEEDING CUSTOMER EXPECTATIONS 12/10/2011 13 Sourabh Jain

Paradigms of TQM: 

Paradigms of TQM Belief that people are a potential source of ‘beneficial forces’ will lead to total quality Functional and Hierarchical divisions of a firm contribute to parochial thinking – not good Everyone has to participate in obtaining total quality 12/10/2011 14 Sourabh Jain

Gurus of TQM: 

Gurus of TQM Shewhart Economic Control of Quality of Mfg product Control Chart Theory Assignable and chance causes of variation Rational Subgroups PDSA cycle 12/10/2011 15 Sourabh Jain

Gurus of TQM: 

Gurus of TQM Deming Out of the Crisis Quality, Productivity and Competitive Position 14 points to improve q,p,c Taught SPC and quality to Japanese 12/10/2011 16 Sourabh Jain

Gurus of TQM: 

Gurus of TQM Juran Juran’s Quality control Handbook Project Improvements based on ROI Promoted commitment to quality at all levels Juran Trilogy – Planning, Control, Improvement 12/10/2011 17 Sourabh Jain

Gurus of TQM: 

Gurus of TQM Feigenbaum Total Quality Control Customer Satisfaction Genuine Management Involvement Employee Involvement Company wide total quality control First line supervision leadership 12/10/2011 18 Sourabh Jain

Gurus of TQM: 

Gurus of TQM Ishikawa SPC texts in Japanese and English Adapted TQC i.e. TQM in Japan Fishbone diagram Quality circles 12/10/2011 19 Sourabh Jain

Gurus of TQM: 

Gurus of TQM Crosby Quality is Free Quality without tears Do it right the first time Zero defects 12/10/2011 20 Sourabh Jain

Gurus of TQM: 

Gurus of TQM Taguchi Loss Function Quality Engineering Robust design of parameters/tolerances 12/10/2011 21 Sourabh Jain

Obstacles to TQM: 

Obstacles to TQM Lack of management commitment Inability to change organization culture Improper planning Lack of continuous training and education Incompatible Org structure & isolated departments and individuals Ineffective measurement techniques Paying inadequate attention to customers Inadequate use of empowerment and teamwork Failure to continually improve 12/10/2011 22 Sourabh Jain

Benefits of TQM: 

Benefits of TQM Improve quality Employee participation and satisfaction Teamwork and Working relationships Customer satisfaction Productivity Communication Profitability and Market Share 12/10/2011 23 Sourabh Jain

Leadership: 

Leadership 12/10/2011 24 Sourabh Jain

Leader: 

Leader A leader Shapes Promotes Protects Exemplifies the organization’s values 12/10/2011 25 Sourabh Jain

Manager vs. Leader: 

Manager vs. Leader Manager Leadership for quality (Outstanding leadership) Plan EXPOSE limited utility of current approaches Organize ENVISION the future Staff ENLIST others in the quest Lead EMPOWER them to act Control ENCOURAGE right effort Feedback EXEMPLIFY by personal action 12/10/2011 26 Sourabh Jain

Leadership Style: 

Leadership Style Leads to time bomb situations Best style 12/10/2011 27 Sourabh Jain

Characteristics of Quality Leaders: 

Characteristics of Quality Leaders Priority attention to internal/external customers Empower, rather than control subordinates Emphasize improvement, rather than maintenance Emphasize prevention Encourage collaboration rather than competition Train and coach, rather than direct and supervise 12/10/2011 28 Sourabh Jain

Characteristics of Quality Leaders: 

Characteristics of Quality Leaders Learn from problems Continually try to improve communications Continually demonstrate their commitment to quality Choose suppliers on basis of quality, not price Establish organizational systems to support quality effort Encourage and Recognize team effort 12/10/2011 29 Sourabh Jain

7 habits of highly effective people: 

7 habits of highly effective people Be proactive - don’t let fate control you, you control it Begin with the end in mind – have a vision and plan Put first things first – learn to prioritize Think win-win – seek mutual benefits Seek first to understand, then be understood Synergy – teams are better than individuals Sharpen the saw – renew one’s physical, spiritual, mental and emotional dimension 12/10/2011 30 Sourabh Jain

Deming Philosophy: 

Deming Philosophy Create and publish aims/purpose of firm Learn the new philosophy Understand purpose of inspection Stop awarding business on price alone Improve constantly and forever the system Institute training Teach and institute leadership 12/10/2011 31 Sourabh Jain

Deming Philosophy: 

Deming Philosophy Drive out fear, create trust and a climate for innovation Optimize efforts of teams, groups and staff areas Eliminate exhortations for the work force Eliminate numerical quotas for workforce and MBO Remove barriers that rob people of pride of workmanship Encourage education and self-empowerment for everyone Take action to accomplish the transformation 12/10/2011 32 Sourabh Jain

Customer Satisfaction: 

Customer Satisfaction 12/10/2011 33 Sourabh Jain

Customer Satisfaction Model: 

Company Offer Customer Satisfaction Model Customer Needs Satisfier 12/10/2011 34 Sourabh Jain

Notes: 

Notes Customer – Internal and External is the focus. Customer Satisfaction is subjective, hence hard to measure Customer Satisfaction should not be viewed in a vacuum 12/10/2011 35 Sourabh Jain

Customer feedback: 

Customer feedback To discover customer dissatisfaction Discover relative priorities of Quality Compare performance with competition Identify customer’s needs Determine opportunities for improvement 12/10/2011 36 Sourabh Jain

Modes of feedback: 

Modes of feedback Comment card – Service industry Customer Questionnaire – mail, telephone Focus groups – like a GD Toll free telephone numbers – complaints Customer visits – B2B Report card – send to customer every quarter The internet – blogs Employee feedback – why problem? Mass customization – variety at affordable cost 12/10/2011 37 Sourabh Jain

Customer Complaints: 

Customer Complaints Every complaint should be accepted, analyzed and acted upon because those who don’t complain might have switched loyalty. 12/10/2011 38 Sourabh Jain

Handling complaints: 

Handling complaints Accept feedback Empower front-line employees to resolve More inspection does not solve it; find the root cause Communicate complaint to everyone in firm Contact complainant and put mind at ease Be proactive about customer needs 12/10/2011 39 Sourabh Jain

Employee Involvement: 

Employee Involvement 12/10/2011 40 Sourabh Jain

Motivation: 

Motivation Maslow’s Hierarchy of needs Herzberg’s 2-factor theory What employees want Interesting Work Appreciation Involvement Job Security 12/10/2011 41 Sourabh Jain

Achieving a motivated work force: 

Achieving a motivated work force Know thyself Know your employees Establish a +ve attitude Share goals Monitor progress Develop interesting work Communicate effectively Celebrate success 12/10/2011 42 Sourabh Jain

Employee Surveys: 

Employee Surveys Quality Council creates Survey team Develop instrument (questionnaire).Constructs to be used are Personality Characteristics Management Styles Job attitudes The work Administer survey (confidential and by 3 rd party) Compile and analyze (report is circulated in firm) Determine areas for improvement 12/10/2011 43 Sourabh Jain

Suggestion Systems: 

Suggestion Systems Management must make it easy for employees to suggest improvements Be progressive – regularly ask employees Remove fear – focus on the process, not the person Simplify the process Respond quickly - accept/Reject/Refer giving time or reason Reward the idea 12/10/2011 44 Sourabh Jain

Performance Appraisal: 

Performance Appraisal Purpose Tells employee how they are performing Basis for promotions and increments Counseling Opportunities Employee involvement is critical and appraisals must be continuous. Types – Ranking, Narrative, Forced, Graphic 12/10/2011 45 Sourabh Jain

Problems with appraisal systems: 

Problems with appraisal systems Emphasis on short term performance Individual appraisals destroy teamwork A person is only about 15 % responsible for his results Based on subjectivity and immeasurables 12/10/2011 46 Sourabh Jain

Improving the appraisal system: 

Improving the appraisal system Use rating scales with fewer rating categories Equal emphasis to individual and group appraisals More frequent performance reviews with focus on improvement Promotion decision to be based on current performance AND potential for new post External customer satisfaction a part of the process 360 degree appraisals Evaluation for process improvements 12/10/2011 47 Sourabh Jain

Benefits of employee involvement: 

Benefits of employee involvement Employees Make better decisions using expert knowledge of process More likely to implement and support decisions they had a part in making/better able to accept changes Better able to spot pinpoint areas for improvement Better able to take immediate corrective action EI increases morale, improves industrial relations and increases commitment to unit goals 12/10/2011 48 Sourabh Jain

Continuous Process Improvement: 

Continuous Process Improvement 12/10/2011 49 Sourabh Jain

Juran Trilogy – Plan, Control, Improve: 

Juran Trilogy – Plan, Control, Improve Planning Determine external and internal customers Identify their needs and translate into requirements Develop product/service as per needs of not only customer but other stakeholders too Develop processes able to produce product/service Transfer plans to operations ensuring process validity 12/10/2011 50 Sourabh Jain

Juran Trilogy – Plan, Control, Improve: 

Juran Trilogy – Plan, Control, Improve Control Determine items to be controlled and their units of measure Set goals for controls and determine what sensors are needed Measure actual performance Compare it with goals Act on the difference 12/10/2011 51 Sourabh Jain

Juran Trilogy – Plan, Control, Improve: 

Juran Trilogy – Plan, Control, Improve Improvement Quality council identifies improvement areas and establishes project teams to work on it Chronic Waste Sporadic Waste QUALITY PLANNING FEEDBACK FEEDBACK 12/10/2011 52 Sourabh Jain

PDSA Cycle: 

PDSA Cycle 12/10/2011 53 Sourabh Jain

Problem Solving method: 

Problem Solving method 12/10/2011 54 Sourabh Jain

1 Identify Opportunity: 

1 Identify Opportunity Identify problem – Pareto analysis, Survey, Brainstorm, proposals Form team – QC forms a multifunction team if required Define scope – scope, goals, milestones 12/10/2011 55 Sourabh Jain

2 Analyze Process: 

2 Analyze Process Develop Process Flow diagram Define target performance measures Relevant Data collection Fishbone diagram 12/10/2011 56 Sourabh Jain

3 Develop Optimal Solution (s): 

3 Develop Optimal Solution (s) Brainstorm – create new process/combine different process/modify existing process Evaluate Test solutions using control charts – criteria: feasibility, scope, training and effects 12/10/2011 57 Sourabh Jain

4 Implement: 

4 Implement Prepare implementation plan Obtain approval Implement process improvements 12/10/2011 58 Sourabh Jain

5 Study the results: 

5 Study the results Monitor and evaluate the change Check if fine tuning is needed If dissatisfied with results, repeat some phases 12/10/2011 59 Sourabh Jain

6 Standardize solution: 

6 Standardize solution Positrol (Positive control) – ensures important variables are kept under control Process Certification Operator Certification 12/10/2011 60 Sourabh Jain

7 Plan for Future: 

7 Plan for Future Regular reviews of progress by QC Knowledge Management System – save learnings Repeat Phase 1. 12/10/2011 61 Sourabh Jain

Kaizen: 

Kaizen Process of continuous improvement in small increments without complex technology or high costs making processes better Uses concepts like: Value/Non value added activities, Mudas, Motion studies, SOP, 5S, Visual Management, JIT etc 5S – Sort, Simplify, Sweep, Standardize, Sustain 12/10/2011 62 Sourabh Jain

Six Sigma: 

Six Sigma Uses Cp analysis as a way to measure progress We should reduce the process variability σ to keep process centered on the target μ . Process Capability Index = USL-LSL/6 σ Process Performance Index Cpk = min(USL-X,X-LSL)/3 σ Default Cp >1, Cpk =1 12/10/2011 63 Sourabh Jain

Performance Measures: 

Performance Measures 12/10/2011 64 Sourabh Jain

Strategy: 

Strategy QC creates a total system of measures using info from stakeholders and firms’ VMG and values Ex: Quality % reduction in nonconformities % of certified suppliers 12/10/2011 65 Sourabh Jain

Strategy: 

Strategy Cost % increase in inventory turnover % increase in output dollars per employee Similarly for innovation (NPD time), reliability (% processes having Cp=2), flexibility(setup time) etc. Tracked monthly to show trends, identify problems and allocate resources Depts create mechanisms and authorities to capture this data 12/10/2011 66 Sourabh Jain

Performance Measure Presentation: 

Performance Measure Presentation Time series graph (Time in days, weeks etc) Control charts (R,Xbar) Capability Index Taguchi Loss Function Cost of poor quality Malcolm Balridge National Quality Award 12/10/2011 67 Sourabh Jain

Quality Costs: 

Quality Costs Those costs associated with the non-achievement of product or service quality as is required Quality cost programs – quantifies this cost Use Pareto analysis to find major cost drivers 12/10/2011 68 Sourabh Jain

Quality Costs: 

Quality Costs Preventive cost: Cost used up in preventing recurrence of some failure. Ex: Customer surveys, Product testing, Quality audits Appraisal cost: Cost of assuring acceptability of product. Ex: laboratory support, measuring equipment, certifications 12/10/2011 69 Sourabh Jain

Quality Costs: 

Quality Costs Internal Failure Cost: cost to evaluate, dispose off, & either correct or replace nonconforming products prior to customer delivery. Ex: rework and scrap, poor supply materials, internal failure labor loss External Failure Cost: After delivery. Ex: returned goods, updates, warranty claims, penalties, lost sales, liabilities, goodwill 12/10/2011 70 Sourabh Jain

Malcolm Balridge National Quality Award: 

Malcolm Balridge National Quality Award Leadership 110 Strategic Planning 80 Customer and Market focus 80 Information and Analysis 80 HR Focus 100 Process Management 100 Business Results 450 12/10/2011 71 Sourabh Jain

Quality Management System: 

Quality Management System 12/10/2011 72 Sourabh Jain

QMS: 

QMS Registration under ISO involves assessment and periodic surveillance audit of the adequacy of a supplier’s quality system by a 3 rd party Benefits of ISO Customers are demanding compliance To improve processes/systems Global deployment of products Snowball effect 12/10/2011 73 Sourabh Jain

ISO 9000: 

ISO 9000 Generic in nature It has 3 standards ISO 9000:2000 QMS fundamentals/vocabulary ISO 9000:2000 QMS requirements ISO 9000:2000 QMS guidelines for performance improvement 12/10/2011 74 Sourabh Jain

ISO 9001 requirements: 

ISO 9001 requirements Scope Normative reference Terms and Definitions QMS – General Reqs and Documents Management Responsibility Resource Management Product Realization Measurement, Analysis and Improvement 12/10/2011 75 Sourabh Jain

Process based QMS: 

Process based QMS Input Requirements Output Product Customer Satisfaction 4 QMS Continual Improvement 12/10/2011 76 Sourabh Jain

Implementation: 

Implementation Top management commitment Appoint management representative Awareness Appoint implementation team Training Time Schedule Select element owners Review present system Write the documents Install the new system Internal audit Management review Preassessment Registration 12/10/2011 77 Sourabh Jain

Documentation: 

Documentation What will be done and why ? Who, When, Where How 12/10/2011 78 Sourabh Jain

Statistical Process Control: 

Statistical Process Control 12/10/2011 79 Sourabh Jain

Introduction: 

Introduction SPC is a technical tool for improving product and service quality. Pareto Diagram Process Flow Diagram Cause and Effect Diagram Check Sheets Histogram 12/10/2011 80 Sourabh Jain

Pareto Diagram: 

Pareto Diagram Vital few and the useful many Ranks data classifications in descending order 12/10/2011 81 Sourabh Jain

Pareto Diagram: 

Pareto Diagram Solving 50 % of vital few is better and easier than 50 % of useful many Never ending process 12/10/2011 82 Sourabh Jain

Process Flow Diagram: 

Process Flow Diagram 12/10/2011 83 Sourabh Jain

Cause and Effect Diagram: 

Cause and Effect Diagram Brainstorming essential. 4 or more likely causes determined by voting 12/10/2011 84 Sourabh Jain

Cause and Effect Diagram: 

Cause and Effect Diagram Wide scope for application Encourages participation and contribution by everyone Diagrams posted in key locations to stimulate continued reference 12/10/2011 85 Sourabh Jain

Check Sheets: 

Check Sheets For ease of data collection Customized for situation 12/10/2011 86 Sourabh Jain

Histograms: 

Histograms Graphically estimates Cp, relationships to specifications and target, shape of population and gaps in data Graphical and analytical Ungrouped and Grouped data (for large data) 12/10/2011 87 Sourabh Jain

PowerPoint Presentation: 

12/10/2011 88 Sourabh Jain

Normal curve : 

Normal curve Larger the Std Dev, flatter the curve (less data) 12/10/2011 89 Sourabh Jain

Types and Causes of variation: 

Types and Causes of variation Types Within piece Piece to piece Time to time Causes Equipment Material Environment Operator 12/10/2011 90 Sourabh Jain

Variable Control Charts: 

Variable Control Charts 12/10/2011 91 Sourabh Jain

Process Capability: 

Process Capability σ = Rbar/d2 Cp = (USL-LSL)/6 σ USL-LSL=tolerance X X Cpk = min{(USL-Xbar) or (Xbar-LSL)}/3 σ 12/10/2011 92 Sourabh Jain

Cp and Cpk: 

Cp and Cpk Cp value does not change as process center changes Cp=Cpk process is centered Cpk<=Cp Cpk>1 process conforms to specifications Cpk<1 process not conforms to specifications Cp<1 process not capable Cpk=0 average =USL or LSL Cpk <0 average outside specifications 12/10/2011 93 Sourabh Jain

Scatter diagrams: 

Scatter diagrams For correlations 12/10/2011 94 Sourabh Jain

BLUE OCEAN STRATEGY: 

BLUE OCEAN STRATEGY 12/10/2011 95 Sourabh Jain

PowerPoint Presentation: 

X 12/10/2011 96 Sourabh Jain