2 Modern History of Quality Management Frederick W. Taylor wrote Principles of Scientific Management in 1911.Walter A. Shewhart used statistics in quality control and inspection, and showed that productivity improves when variation is reduced (1924); wrote Economic Control of Manufactured Product in 1931.W. Edwards Deming and Joseph M. Juran, students of Shewhart, went to Japan in 1950; began transformation from “shoddy” to “world class” goods.In 1960, Dr. K. Ishikawa formalized “quality circles” - the use of small groups to eliminate variation and improve processes.In the late ‘70’s and early ‘80’s:Deming returned from Japan to write Out of the Crisis,and began his famous 4-day seminars in the United StatesPhil Crosby wrote Quality is FreeNBC ran “If Japan can do it, why can’t we?”Motorola began 6 Sigma
3 History of Quality Management Deming’s 14 Points1. Create constancy of purpose for improvement2. Adopt a new philosophy3. Cease dependence on mass inspection4. Do not award business on price alone5. Work continually on the system of production and service6. Institute modern methods of training7. Institute modern methods of supervision of workers8. Drive out fear9. Break down barriers between departments10. Eliminate slogans, exhortations, and targets for the work force11. Eliminate numerical quotas12. Remove barriers preventing pride of workmanship13. Institute a vigorous program of education and retraining14. Take action to accomplish the transformation
4 History of Quality Management Deming’s Concept of “Profound Knowledge”Understanding (and appreciation) of Systems- optimizing sub-systems sub-optimizes the total system- the majority of defects come from systems, the responsibility ofmanagement (e.g., machines not in good order, defective material, etc.Knowledge of Statistics (variation, capability, uncertainty in data, etc.)- to identify where problems are, and point managers and workerstoward solutionsKnowledge of Psychology (Motivation)- people are afraid of failing and not being recognized,so they fear how data will be used against themTheory of Knowledge- understanding that management in any form is a prediction, and isbased on assumptions
5 History of Total Quality According to Dr. Joseph M. Juran (1991): “On the assembly line at the Ford Motor Company in 1923, most of the workers producing Model T’s were immigrants and could not speak English. Many were also illiterate. Workers learned their trade by modeling the actions of other workers. They were unable to plan, problem-solve, and make decisions. As a result, the Taylor scientific school of management flourished, and MBAs and industrial engineers were invented to do this work. Today, however, the workforce is educated. Workers know what is needed to improve their jobs, and companies that do not tap into this significant source of knowledge will truly be at a competitive disadvantage.”
6 Total Quality Management Total Quality Management (TQ, QM or TQM) and Six Sigma (6) are sweeping “culture change” efforts to position a company for greater customer satisfaction, profitability and competitiveness.TQ may be defined as managing the entire organization so that it excels on all dimensions of products and services that are important to the customer.We often think of features when we think of the quality of a product or service; TQ is about conformance quality, not features.
7 Total Quality Is… Meeting Our Customer’s Requirements Doing Things Right the First Time; Freedom from Failure (Defects)Consistency (Reduction in Variation)Continuous ImprovementQuality in Everything We Do
8 A Quality Management System Is… A belief in the employee’s ability to solve problemsA belief that people doing the work are best able to improve itA belief that everyone is responsible for quality
9 Elements for Success Management Support Mission Statement Proper PlanningCustomer and Bottom Line FocusMeasurementEmpowermentTeamwork/Effective MeetingsContinuous Process ImprovementDedicated Resources
10 The Continuous Improvement Process MeasurementEmpowerment/Shared LeadershipCustomer SatisfactionMeasurementBusiness ResultsMeasurementProcess Improvement/Problem SolvingTeam Management. . .Measurement
11 Compare TQM and BPR Both TQM and BPR are customer-oriented. They both aim on improving the customer satisfaction. Also, they both suggest thinking outside in. On the other words, they both suggest to think from the customer's viewpoint. Also, both TQM and BPR are process-oriented. They both target to alter the processes, but not just on the product. Moreover, they both take team approach.Nearly all BPR projects are initiated by top-down approach. Since BPR would results great changes, staff resistance is obvious. Therefore, top management's support and commitment are very important. For TQM, both top-down approach and bottom-up approach are possible. The basic assumptions of TQM and BPR are different. TQM assumes that the existing practices or systems are principally right and useful. The target of TQM is to improve on the basis of the existing system. However, BPR takes an opposite assumption. BPR assumes the existing system is useless and suggests starting it over. Unlike TQM that aims on smoothly and incremental improvements, BPR aims on dramatic results.
12 Compare TQM and BPR TQM emphasis on total involvement, including all the stakeholders. The involvement even extends to suppliers and customers. Also, TQM also suggests involving all the processes in the company, including human resources management, order fulfilling, manufacturing, marketing and customer management and others. However, for BPR, the project can be controlled to a specified area only. Standardization is one of the key points of TQM. TQM aims on standardize the practices, thus achieving a consistent performance. It also makes that there is a certain degree of documentation for TQM. However, BPR emphasis on flexibility and believes that standardization would increase the complexity of the process. Therefore, standardization is rare in BPR and the level of documentation is much lower. TQM emphasis on the use of statistical process control. However, there is no similar concern for BPR. On the other hand, BPR emphasis more on the enabling role of information technology. TQM is a cultural issue. Once the culture is built, TQM is absorbed in the daily operation. However, BPR is a project. It is with a clear target that should be achieved as soon as possible. In fact, BPR is a risky project that is suitable for organizations in deep trouble or facing great challenges. However, an organization cannot always be under BPR. TQM, on the other hand, can be treated as a consolidation approach for the organizations to maintain continuously improvements.
13 Compare TQM and BPR As a conclusion, differences between them are just like Chinese Kung Fu. There are 'hard' school and 'soft' school of Kung Fu. They are with the same purpose. BPR is just like the 'hard' school of Kung Fu. It is efficient and looks attractive. However, if it is not used carefully, it may be harmful to the own health. TQM, on the other hand, is the 'soft' school of Kung Fu. It needs a long time to practice but it can make one's body healthy too.
14 Advantages of Total Quality Management Improves reputation- faults and problems are spotted and sorted quicker (zero defects)Higher employee morale– workers motivated by extra responsibility, team work and involvement in decisions of TQMLower costs – Decrease waste as fewer defective products and no need for separateQuality Control inspectors
15 Disadvantages of Total Quality Management Initial introduction costs- training workers and disrupting current production whilst being implementedBenefits may not be seen for several yearsWorkers may be resistant to change – may feel less secure in jobs