TOTAL QUALITY MANAGEMENT: TQM Origins, Evolution

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TOTAL QUALITY MANAGEMENTTQMOrigins,
Evolution key elements
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What is Quality?
Quality is fitness for use (Joseph
Juran) Quality is conformance to
requirements (Philip B. Crosby) Quality of a
product or services is its ability to satisfy the
needs and expectations of the customer
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Evolution of Quality Management
Salvage, sorting, grading, blending, corrective
actions, identify sources of non-conformance
Inspection
Develop quality manual, process performance data,
self-inspection, product testing, basic quality
planning, use of basic statistics, paperwork
control.
Quality Control
Quality systems development, advanced quality
planning, comprehensive quality manuals, use of
quality costs, involvement of non-production
operations, failure mode and effects analysis,
SPC.
Quality Assurance
Policy deployment, involve supplier customers,
involve all operations, process management,
performance measurement, teamwork, employee
involvement.
TQM
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W. E. Deming and the 6 Eras of Quality
1920s New statistical thinking and
methods in manufacturing 1930
/40s Use of statistical thinking outside
manufacturing 1950/60s Systems of
improvement 1970/80s The fourteen points Late
80s The New Climate 1990s System of
Profound Knowledge
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Demings view of a production as a system
Consumer Research
Design redesign
Receipt test of materials
Suppliers, materials equipment
Production, assembly, inspection
Distribution
Consumers
Test of processes, machines, methods, cost
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Demings Chain Reaction
Improve Quality
Provide jobs and more jobs
Cost decreases because of less rework, fewer
mistakes, fewer delays, snags, better use of
machine time and materials
Stay in business
Productivity improves
Capture the market with better quality and lower
price
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The Deming Cycle or PDCA Cycle
PLAN
Plan a change to the process. Predict the effect
this change will have and plan how the effects
will be measured
DO
ACT
Adopt the change as a permanent modification to
the process, or abandon it.
Implement the change on a small scale and measure
the effects
CHECK
Study the results to learn what effect the change
had, if any.
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W. Edwards Demings 14 Points
1)
Create constancy of purpose towards improvement
of product and services. Adopt the new
philosophy. We can no longer live with commonly
accepted levels of delays, mistakes, defective
workmanship. Cease dependence on mass inspection.
Require, instead, statistical evidence that
quality is built in. End the practice of awarding
business on the basis of price tag.
2)
3)
4)
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W. Edwards Demings 14 Points
5)
Find problems. It is managements job to work
continually on the system. Institute modern
methods of training on the job. Institute modern
methods of supervision of production workers. The
responsibility of foremen must be changed from
numbers to quality. Drive out fear that everyone
may work effectively for the company.
6)
7)
8)
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W. Edwards Demings 14 Points
9)
Break down barriers between departments. Eliminate
numerical goals, posters and slogans for the
workforce asking for new levels of productivity
without providing methods. Eliminate work
standards that prescribe numerical quotas. Remove
barriers that stand between the hourly worker and
his right to pride of workmanship.
10)
11)
12)
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W. Edwards Demings 14 Points
Institute a vigorous programme of education and
retraining. Create a structure in top management
that will push everyday on the above 13 points.
13)
14)
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Demings System of Profound Knowledge
Knowledge about variation
Appreciation for system
Theory about knowledge
Knowledge of psychology
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Philip Crosbys Four Absolutes
Definition Conformance to requirements System
of quality is prevention Performance Standard
Zero Defects Measurement Price of
non-conformance (PON)

What is Quality?
What system is needed to cause quality?
What performance standard should be used?
What measurement system is required?
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Crosbys Successful Company
Characteristics of the Eternally Successful
Organisation People do things right
routinely Growth is profitable and
steady Customer needs are anticipated Change is
planned and managed People are proud to work
there
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1)
Make it clear that management is committed to
quality. Form quality improvement teams with
representatives from each department. Determine
where current and potential quality problems
lie. Evaluate the cost of quality and explain its
use as a management tool.
2)
3)
4)
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Raise the quality awareness and personal concern
of all employees. Take actions to correct
problems identified through previous
steps. Establish a committee for the zero defects
programme. Train supervisors to actively carry
out their part of the quality improvement
programme.
5)
6)
7)
8)
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Hold a zero defects day to let all employees
realise that there has been a change. Encourage
all individuals to establish improvement goals
for themselves and their groups. Encourage
employees to communicate to management the
obstacles they face in attaining their
improvement goals. Recognise and appreciate those
who participate.
9)
10)
11)
12)
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13)
Establish quality councils to communicate on a
regular basis. Do it all over again to emphasise
that the quality improvement programme never ends.
14)
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Joseph M. Jurans Quality Trilogy
Quality Planning Establish quality goals Identify
customer needs Translate needs into our
language Develop a product for these
needs Optimise product features for these needs
Quality Control Prove the process can produce
under operating conditions Transfer process to
operation
Quality Improvement Seek to optimise the process
via tools of diagnosis
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Jurans Trilogy Diagram
Quality Planning
Quality control (during operations)
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Quality improve -ment
New zone of quality control
Cost of Poor Quality
Original zone of quality control
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0
TIME
0
Lessons learned
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Jurans Quality Planning Road Map
1) Identify who are the customers 2) Determine
the customers needs 3) Translate the needs into
our language 4) Develop a product to meet those
needs 5) Optimise a product so as to meets our
needs as well as the customers. 6) Develop
a process which is able to produce the
product 7) Optimise the process 8) Prove the
process can make the product under
operating conditions
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Joseph M.Juran and the Cost Of Quality
2 types of costs Unavoidable Costs preventing
defects (inspection, sampling, sorting,
QC) Avoidable Costs defects and product failures
(scrapped materials, labour for re-work,
complaint processing, losses from unhappy
customers
Gold in the Mine
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Joseph M.Juran and the Cost Of Quality
Costs
Total Costs
Unavoidable costs
Avoidable costs
100 defective
Point of Enough quality
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Build awareness of the need and opportunity for
improvement. Set goals for improvement. Organise
to reach the goals (establish a quality council,
identify problems, select projects, appoint
teams, designate facilitators) Provide
training. Carry out projects to solve problems
1)
2)
3)
4)
5)
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Report progress. Give recognition. Communicate
results. Keep score. Maintain momentum by making
annual improvement part of the regular systems
and process of the company.
6)
7)
8)
9)
10)
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What is TQM?
Concern for employee involvement and development
Management by Fact
Constant drive for continuous improvement and
learning.
Organisation response ability
Passion to deliver customer value / excellence
Result Focus
Partnership perspective (internal / external)
Actions not just words (implementation)
Process Management
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LEARNING AND TQM
Learning
Process Improvement
Quality Improvement
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BASIC PRINCIPLES OF TQM
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FOUR KEY PRINCIPLES

• Measure quality so you can affect it

• Focus on a moving customer

• Involve every employee

• Think long term - Act short term

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THE CASE FOR QUALITY
1 Success of competitors who take quality
seriously
2 Rising expectations of
customers 3 Quality differentiates companies
from the competition 4 Narrowing of
supplier bases by quality conscious
companies .
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THE CASE FOR QUALITY
5 Growing evidence that growth in market
share comes from sustained quality. 6 Cost
advantages 7 High cost of catastrophic
failure 8 Inspection poor substitute for right
first time
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SEVEN DEADLY SINS OF TQM

• Flight to nowhere

• One size fits all

• Substituting TQM for leadership

• Inside - Out indicators

• Mandatory religion

• Quality kept as a separate activity

• Teaching to the test

Booz-Allen Hamilton
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IS QUALITY A SOUND INVESTMENT?
Year Company Stock Growth (Oct
94) 1988 Motorola 373.0 1988 Westing
house (CNFD) - 49.6 1989 Xerox
(BPS) 75.9 1990 General Motors
1.6 1990 Federal Express
10.6 1990 IBM (IBM Rochester) -
34.9 1991 Selectron
526.9 1992 ATT (UCS)
32.2 1992 ATT (TSBU)
32.2 1992 Texas Instruments (DSE)
106.8 1993 Zyta
8.4 1994 Eastman Chemical
18.5 Total Stock Value 23016 (91.8
growth) Standard Poor 500 Stock value 15911
(32.6 growth) Source US Dept. of Commerce
Study 1995
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THE NEW ISO 9000 2000 QUALITY STANDARD
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REASONS FOR CHANGE

• ISO Technical Committee (TC) argue that
• The main reason for the year 2000 revision is to
  give users the opportunity to add value to
  activities and to improve their performance
  continually by focusing on the major processes
  within the organisation

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ISO 9000 2000 CHANGES

• CUSTOMER FOCUSED ORGANISATION
• LEADERSHIP
• INVOLVEMENT OF PEOPLE
• PROCESS APPROACH
• SYSTEM APPROACH TO MANAGEMENT
• CONTINUAL IMPROVEMENT
• FACTUAL APPROACH TO DECISION MAKING
• MUTUALLY BENEFICIAL SUPPLIER RELATIONSHIPS

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IMPLEMENTATION PRINCIPLES

• MANAGEMENT RESPONSIBILITY
• RESOURCE MANAGEMENT
• PRODUCT REALIZATION
• MEASUREMENT, ANALYSIS AND IMPROVEMENT

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More clearly defined requirements

• Continual improvement
• increased emphasis on the role of top management
• establishment of measurable objectives at
  relevant functions and levels
• Monitoring of information of customer
  satisfaction and/or dissatisfaction as a
  measurement of the system performance
• Increased attention to resource availability
  determination of training effectiveness
• Measurement extending to the system, process, and
  product
• Analysis of collected data on the performance of
  the quality management system

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Quality is a Journey, not a Destination