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Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action www.bsieducation.org/standardsinaction SUSTAINABLE.

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Presentation on theme: "Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action www.bsieducation.org/standardsinaction SUSTAINABLE."— Presentation transcript:

1 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action SUSTAINABLE DEVELOPMENT OF TOTAL QUALITY MANAGEMENT THROUGH DEMING’S PDSA CYCLE Author: Dr. G. Karuppusami

2 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action Abbreviations TQMTotal Quality Management CSFCritical Success Factor QAPQuality-related Action Program PDSAPlan-Do-Study-Act TQMIITotal Quality Management Implementation Index 2

3 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action What is Quality? Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy implied or stated needs. ANSI/ASQC STD A

4 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action What is Quality? Feigenbaum (1951) and Abbott (1955) defined quality as ‘value’, Levitt (1972) as ‘conformance to specifications’, Juran et al. (1974) as ‘fitness for use’, Crosby (1979) as ‘conformance to requirements’, Taguchi (1981) as ‘the losses a product imparts to the society from the time the product is shipped’, Reeves and Bednar, (1994) as ‘the extent to which a product or service meets and/or exceeds a customer’s expectations’ which reflects a shift in focus to customer satisfaction.

5 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action Total quality management Ho (1997) defines the term TQM as: ‘Total = everyone associated with the company is involved in continuous improvement (including its’ customers and suppliers if feasible); Quality = customers’ expressed and implied requirements are met fully; Management = executives are fully committed’.

6 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action Motivation for the study The business units are ever increasingly forced to achieve world-class manufacturing capabilities in order to compete and, in many cases, to achieve in the market. One of the means to achieve the world-class manufacturing capability is through the practices of Total Quality Management (Joseph, et al., 1999)

7 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action Full TQM (OR) Partial TQM? The problem with TQM is not whether companies have been converted to the philosophy: many surveys have shown the philosophy being embraced by organizations (Yong & Wilkinson, 1999). The issue relates more acutely to whether these supposedly TQM companies are actually practicing ‘total or partial TQM’ (Wilkinson et al., 1998).

8 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action Some obstacles to achieving TQM Lack of top management support Lack of customer focus Lack of employee empowerment Lack of training

9 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action ‘Quality is one of the twentieth century’s most important management ideas’ (Feigenbaum, 1999) ‘You can’t manage what you don’t measure’ (Wert, 2003) Criteria for the study

10 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action Critical Success Factors (CSFs) of TQM CSFs are the critical areas of managerial planning and action that must be practiced to achieve effective quality management in a business unit (Saraph et al., (1989) CSFs are critical and absolutely essential for the success of TQM. The process stands a good chance of ending in failure if these factors are not part of the management process.

11 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action CSFs reported by Saraph et al., (1989) 1.The role of management leadership and quality policy 2.Role of quality department 3.Training 4.Product / service design 5.Supplier quality management 6.Process management 7.Quality data and reporting 8.Employee relations

12 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action Quality Related Action Programs (QAPs) Critical success factors of TQM are latent variables, which means they cannot be measured directly. Hence Quality-related Action Programs (QAPs) are generated that represent manifestations of these CSFs. QAPs are the quality management prescriptions.

13 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action QAPs of CSF ‘The role of top management leadership and quality policy’ 1.Top management responsibility for quality performance 2.Performance evaluation based on quality 3.Acceptance of responsibility for quality by major dept heads 4.Degree of participation by dept heads in quality improvement process 5.Consideration of quality as first priority 6.Discussion of quality related issues in meetings 7.Extent to which quality goals and policies are understood 8.Degree of comprehensiveness of quality plan

14 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action CSFs and QAPs of TQM QAP 1 QAP 2QAP 3QAP i CSF 1 QAP 1QAP 2QAP 3QAP i CSF 2 QAP 1QAP 2QAP 3QAP i CSF n TQM

15 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action Sustainable development of TQM Quinn (2000) describes sustainability as the development that meets present needs without compromising the ability of future generations to meet their own needs. Without sustainability, there is little benefit to be gained from TQM (Curry et al., 2002). The focus of maintaining competitive advantage and performance does not simply emphasize the present time, but also the future (Zairi, 2002).

16 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action Sustainable development of TQM Sustainability is defined as ‘the ability of an organization to adapt to change in the business environment to capture contemporary best practice methods and to achieve and maintain superior competitive performance’ (Zairi & Liburd 2001).

17 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action Step 3: Study and measure the level of TQM implementation Step 1: Plan for TQM Step 2: Implement TQM Step 4: Take necessary actions to improve the less developed programs of TQM ACT PLAN DO STUDY PDSA Cycle for sustainable development of TQM

18 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action TQM Implementation Index (TQMII) TQM Implementation Index (TQMII) can be interpreted as the level of TQM implementation of a company on a unit scale. Input is the company’s total quality effort. Output is the level of the performance of the plant. TQMII measures how well a company has implemented its TQM.

19 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action Framework for TQMII calculation The set of CSFs and QAPs implemented by the company. The list of departments involved in the quality programs. The level of quality consciousness of the departments. The degree to which critical quality factors and quality action programs applied.

20 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action TQMII im k TQM Implementation space

21 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action Notations  i =Index of QAPs  D m = Departments  m = Index of departments  Z m =Ideal weight factor assigned department  W m =Revised normalized weight of department  V im = Actual performance of quality-related action programme i in department m

22 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action TQMII Algorithm Algorithm developed by Kumar et.al.(2004) is adopted. TQMII algorithm for the firm (or) CSF is as follows. i = 1, 2, 3…..I; m = 1, 2, 3 …. M, I = Total number of QAPs of the firm or CSF

23 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action Presentation of a Case Study to illustrate TQMII

24 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action Case Study The suggested PDSA model for TQM implementation was applied to an automotive ancillary company located in South India. The company is the largest manufacturer of automotive horns in India and has ISO 9002, ISO 14001, ISO/TS 16949:1999 certifications. Thirteen CSFs and 85 QAPs were selected by the expert committee.

25 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action Case Study – CSFs selected 1.Role of top management and quality policy 2.Supplier quality management 3.Customer focus 4.Process management 5.Product / service design 6.Quality data and reporting 7.Training 8.Employee relations 9.Role of quality department 10.Benchmarking 11.Information technology analysis 12.Lean manufacturing 13.Continuous improvement

26 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action TQMII Calculation – Step 1 (Table 1) 1. Compute each department’s normalized quality consciousness weight The calculation for the first the department ‘D1’ is as follows; W1= 10×(0.5×2 + 1× ×6 + 3×8 + 3×10) = ×10

27 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action TQMII Calculation – Step 2 (Table 1) 2. Compute each department’s quality consciousness state efficiency. The calculation for the first the department ‘D1’ is as follows; QCSE1= (0.5×2 + 1× ×6 + 3×8 + 3×10) = ×10

28 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action TQMII Calculation – Step 3 (Table 2) 3. Compute TQMII of QAPs i = 1, 2, 3…..I; m = 1, 2, 3 …. M TQMII of QAP 1 is as follows = (9× ×6 + 7× × × × × × ×6.86) 10( ) = 0.65

29 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action TQMII Calculation – Step 4 (Table 2) 4. Calculate TQMII of the CSF or firm as a whole. I = Total number of QAPs of the firm or CSF, i = 1, 2, 3…..I; m = 1, 2, 3 …. M,

30 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action Table 1 Department consciousness matrix Department name Dm Weight State of quality consciousness Normalized Quality Consciousness weight, Wm Quality consciousness state efficiency for Department m, QCSEm Crisis Management Awareness Emergence Maturity Sustenance k =12345 Zmyk = Product engineering D X11 = Quality assuranceD Production planning & control D Application EngineeringD Manufacturing EngineeringD Production departmentD Materials departmentD Information TechnologyD Sales & Marketing department D

31 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action Table 2. TQMII Calculation CSFs, QAPs and weights IndexPerformance weights of departments on each QAPs CSF QAPs Index (i) QAPs QAPs weight (Ui) D1D2D3D4D5 m =12345 wm = Zm = Role of Top Management and Quality Policy 1 Top management responsibility for quality performance 8.86V 1m =9107 2Performance evaluation based on quality Acceptance of responsibility for quality by major dept heads Degree of participation by dept heads in quality improvement process Consideration of quality as first priority Discussion of quality related issues in meetings Extent to which quality goals and policies are understood

32 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action Table 2. TQMII Calculation contd… CSF QAPs Index (i) QAPs QAPs weight (Ui) D6D7D8D9 TQMII of QAP I givenstate of quality TQMII of CSFi given state of quality m =6789 wm = Zm = Role of Top Management and Quality Policy 1 Top management responsibility for quality performance 8.86V 1m = Performance evaluation based on quality Acceptance of responsibility for quality by major dept heads Degree of participation by dept heads in quality improvement process Consideration of quality as first priority Discussion of quality related issues in meetings Extent to which quality goals and policies are understood Degree of comprehensiveness of quality plan

33 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action TQMII of the selected organization The combined level of TQM implementation index in the selected organization was assessed as on a unit scale

34 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action Recommendations as a result of the Study Link the department quality consciousness state efficiency of TQM implementation program to annual incentive scheme. Arrange training program for all the least developed QAPs. Encourage exchange of information and data among departments regarding TQMII. Obtain expert advice about the list of CSFs and QAPs selected for the TQMII analysis. Integrate the TQM programs with the procedures of ISO 9002, ISO 14001, ISO/TS 16949:1999 certifications.

35 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action Conclusions The problem areas of TQM implementation correctly identified by the proposed PDSA method. The model allows tracking of TQM programs and departments that are substantially impacting the TQM implementation in the company. Specific recommendations were proposed to bring about improvements in those least developed TQM programs.

36 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action References 1 Crosby, P.B., (1979), Quality Is Free, New American Library, New York, NY 2 Curry, A. and Kadasah, N. (2002), “Focusing on key elements of TQM – evaluation for sustainability”, The TQM magazine, Vol. 14 No.4, pp Feigenbaum, A.V. (1951), Quality control: Principles, Practice, and Administration (New-York: McGraw-Hill). 4 Ho, D.C.K., Duffy, V.G. and Shih, H.M. (2001), “Total quality management: An empirical test for mediation effect”, International journal of production research, Vol.39 No.3, pp Joseph, I. N., Rajendran, C. and Kamalanabhan, T.J. (1999), ” An Instrument For Measuring Total Quality Management Implementation in Manufacturing Based Business Units In India”, International journal of production research, Vol.37 No.10 pp Juran, J.M., Gryna, F.M., Jr. and Bingham, R.S. (1974), Quality Control handbook, 4 th edition, McGraw-hill, New York 7 Kumar, A., Stecke, K.E. and Motwani, J.G. (2004), ”An analytical framework to measure, benchmark, and improve the strategic position of an organization using a quality competitiveness index”, International Journal of Operations and Quantitative Management, Vol.10 No. 2, pp Levitt, T. (1972), “Production line approach to service”, Harvard Business Review, Vol. 50, pp Quinn, B. (2000), “Sustaining New Jersey’s industrial future”, Pollution Engineering, Vol. 32 No.13, pp

37 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action References contd… 10 Reeves, C.A. and Bednar, D.A. (1994), “Defining quality: alternatives and implications”, Academy of Management Review, Vol. 19, pp Saraph, J. V., Benson, P. G. and Schroeder, R. G. (1989) “An Instrument for Measuring the Critical Factors of Quality Measurement”, Decision Sciences, Vol. 20 No. 4, pp Taguchi, G., (1981), On-line quality control during production, Japanese standard’s association 13 Wilkinson, A. (1998), “Empowerment”, International Encyclopaedia of Human Resource Management, pp Yong, J. and Wilkinson, A. (1999), “The state of total quality management: a review’’, The International Journal of Human Resource Management, Vol. 10 No. 1, February, pp Zairi, M. (2002), “Beyond TQM implementation: the new paradigm of TQM sustainability“, Total Quality management, Vol. 13 No. 8, pp. 1161– Zairi, M. and Liburd, L.M. (2001), “TQM sustainability- a roadmap for creating competitive advantage”, Integrated management, Proceedings of the 6 th International conference on ISO 9000 and TQM, Paisley, Ayr, Scotland, April, pp

38 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action Quality is a Journey, not a Destination

39 Sustainable development of total quality management through Deming’s PDSA cycle Standards in Action Thanks


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