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S A K

113668

TOTAL QUALITY

MANAGEMENT

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SESSION PLAN

Introduction to concepts of TQM

Standards and TQM

TQM Reasons for failure Measurement of Quality

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TQM

Total - made up of the whole

Quality - degree of excellence a product or service provides

Management - act, art or manner of planning, controlling,directing,.

ThereforeTherefore, TQM is the art of managing the whole to achieve, TQM is the art of managing the whole to achieve

excellenceexcellence.

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WHY TQM??

Ford Motor Company had operating losses of $3.3 billion between1980 and 1982.

Xerox market share dropped from 93% in 1971 to 40% in 1981.

Attention to quality was seen as a way to combat the competition.

GOAL OF TQM

Do the right things right the firsttime,every time.

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WHY QUALITY??

Reasons for quality becoming a cardinal priority for most

organizations:

Competition

Changing customer

Changing product mix

Product complexity

Higher levels of customer satisfaction

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QUALITY PERSPECTIVES

Everyone defines Quality based on their own perspective

of it.

Kind of perspectives :

Judgmental perspective

Product-based perspective

User-based perspective

Value-based perspective

Manufacturing-based perspective

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QUALITY LEVELS

Organizational level

Process level

Individual job level

History of quality management

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ELEMENTS OF TQM

Leadership

Employee involvement

Product/Process Excellence

Continuous Improvement

CustomerFocus on Fitness for Use

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EVOLUTION OF TQM

PHILOSOPHIES

The Deming Philosophy

Definition of quality, A product or a service possesses quality if it helps

somebody and enjoys a good and sustainable market.

Improve quality Decreasecost becauseof less rework, fewer

mistakes.

Productivity improves

Long-termcompetitive

strength

Stay inbusiness

Capturethe marketwith better quality

and reduced cost.

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THE DEMING PHILOSOPHY

1.1. Create constancy of purposeCreate constancy of purpose

2.2. Adopt philosophy of preventionAdopt philosophy of prevention

3.3. Cease mass inspectionCease mass inspection

4.4. Select a few suppliers based on qualitySelect a few suppliers based on quality

5.5. Constantly improve system and workersConstantly improve system and workers

6.6. Institute worker trainingInstitute worker training

7.7. Instill leadership among supervisorsInstill leadership among supervisors

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THE DEMING PHILOSOPHY

8.8. EliminateEliminate fear among employeesfear among employees

9.9. EliminateEliminate barriers between departmentsbarriers between departments

10.10. EliminateEliminate slogansslogans

1111. Remove. Remove numerical quotasnumerical quotas

12.12. EnhanceEnhance worker prideworker pride

1313. Institute. Institute vigorous training and education programsvigorous training and education programs

1414. Develop. Develop a commitment from top management toa commitment from top management to

implement above 13 pointsimplement above 13 points

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THE DEMING PHILOSOPHY

A System of Profound Knowledge

1. Appreciation for a system

2. Psychology

3. Understanding process variation

4. Theory of knowledge

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PROCESS MANAGEMENT

Planning and administrating the activities necessary to achievehigh quality in business processes; and also identifyingopportunities for improving quality and operational

performance ultimately, customer satisfaction.

Processsimplification reduces opportunities for errors andrework.

Processes are of two types value-added processes and supportprocesses.

Value-added processes those essential for running thebusiness and achieving and maintaining competitive advantage.(Design process, Production/Delivery process)

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PROCESS MANAGEMENT

Support processes Those that are important to anorganizations value-creation processes, employees and dailyoperations.

Value creation processes are driven by external customer needs

while support processes are driven by internal needs.

To apply the techniques of process management, a process mustbe repeatable and measurable.

Process owners are responsible for process performance andshould have authority to manage the process. Owners couldrange from high-level executive to workers who run a cell.

Assigning owners ensures accountability.

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PROCESS MANAGEMENT

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PROCESS CONTROL

Control is the activity of ensuring the conformance tothe requirements and taking corrective action whennecessary.

Two reasons for controlling the process

1. Process control methods are the basis ofeffective dailymanagement of processes.

2. Long-term improvements can not be made to a processunless the process is first brought under control.

Short-term corrective action should be taken by theprocess owners. Long-term remedial action should bethe responsibility of the management.

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PROCESS CONTROL

Effective quality control systems include

1. Documented procedures for all key processes

2. A clear understanding of the appropriate equipment andworking environment

3. Methods of monitoring and controlling critical qualitycharacteristics

4. Approval processes for equipment

5. Criteria for workmanship: written standards, samples

etc.

6. Maintenance activities

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PROCESS IMPROVEMENT: KAIZEN

Japanese for gradual and orderly continuousimprovement over a long period of time with minimum

financial investment, and with participation byeveryone in the organization.

Improvement in all areas of business serves toenhance quality of the firm.

Three things required for successful kaizen program:operating practices, total involvement, and training.

Operating practices expose opportunities for

improvement. JIT reveals waste and inefficiency aswell as poor quality.

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PROCESS IMPROVEMENT: KAIZEN

Every employee strives for improvement. Top managementviews improvement as part of strategy and supports it. Middlemanagement can implement top managements improvementgoals by establishing, maintaining, and upgrading operating

standards. Workers can engage through suggestions, smallgroup activity.

Middle management can help create conducive environment forimprovement by improving cooperation amongst departments,and by making employees conscious of their responsibilities forimprovement.

Supervisors can direct theirattention more on improvementthan supervision, which will facilitate communication.

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DEMING WHEEL: PDCA CYCLE

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KAIZEN: IMPLEMENTATION

Plan Study the current system; identifying problems;testing theories of causes; and developing solutions.

Do Plan is implemented on a trial basis. Data collectedand documented.

Study Determine whether the trial plan is workingcorrectly by evaluating the results.

Act Improvements are standardized and final plan isimplemented.

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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

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IMPLEMENTING TQM

Successful Implementation of TQM

Requires total integration of TQM into day-to-day operations.

Causes of TQM Implementation Failures

Lack of focus on strategic planning and core competencies.

Obsolete, outdated organizational cultures.

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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.

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SOME CRITICISMS OF TQM

1. Blind pursuit of TQM programs

2. Programs may not be linked to strategies

3. Quality-related decisions may not be tied to market

performance

4. Failure to carefully plan a program

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RECOGNIZING AND REWARDING

QUALITY

Promotion of high quality goods and services

Malcolm Baldrige National Quality Award (MBNQA) (UnitedStates)

Deming Prize (Japan)

European Quality Award (European Union)

ISO9000 certification

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THANK U