Presentation on theme: "Total Quality Management"— Presentation transcript:
1 Total Quality Management Key conceptsThe Cost of QualityTools and TechniquesBenefitsImplementation
2 Total Quality Management Company Wide Quality ControlQuality measured in all areas of the firmWhole operationInvolvedQuality strategyTeamworkStaff EmpowermentCustomer InvolvementSupplier InvolvementQuality AssuranceQuality SystemQuality CostingProblem SolvingQuality PlanningQuality ControlStatistical MethodsProcess PerformanceQuality StandardsTQM Can be viewed as an extension of earlier approaches of quality management but differs in that it puts customers at the forefront of decision making.Inspection aimed at screening out defects before they were noticed by customersQC developed techniques for not only detecting defects but also treating quality problems.QA widen the scope of of quality including other functions other than direct 0perations making use of statistical techniques and taking a longer term perspective on quality.Company wide QC – Extending boundaries of QA to all areas of the companyTQM includes all of these techniques but has developed its own distinctive themesMeeting expectations of customersCovering all parts of the organisationIncluding all people with the organisationExamining all costs which are related to quality.Designing for quality rather than inspecting for it.Developing systems which support quality and its improvement.Developing continued process improvement.Error DetectionRectificationInspection
3 The Cost of QualityElements (prevention, detection, appraisal, internal and external failure, customer loyalty)Kaizen TQM always involving everyone, always going forward, a ‘Way of Life’.Cost is related to not doing somethingNot just a manufacturing initiative
4 (obvious really isn’t it!) Cost of QualityThe earlier in the process that quality is fixed the lower the overall cost.(obvious really isn’t it!)PreventionAppraisalPreventionInternal failureAppraisalExternal failureInternal failureExternal failure
5 Quality Management Tools Pareto principle 80/20Visual presentation – histograms, scatter diagrams, control chartsCheck sheetsSPC – Statistical Process ControlCause and effect diagrams – Fishbone / Ishikawa diagramStratification
6 Beyond Tools to TQM Taguichi Quality Loss Function (QLF) Quality circlesBPR Kaizen
7 Company Wide Quality Control Customer serviceQuality of managementQuality of companyQuality of labourQuality of Materials, techniques, equipment
8 TQM Implementation Top level strategy with management support Steering GroupGroup based improvement (quality circles)Continuous improvement (Kaizen)Success recognizedTraining, lots of it & continuouslyExamples of formats MBNQA, ISO 9001 / BS 5750
9 Benefits Shareholder wealth Increased job satisfaction (by improved communication and involvement, better training, pride in work workmanshipCustomer needs are better metImproved supplier relationshipCorporate image improvedLonger term relationships – customer value
10 Without TQM Uninterested operators Increased defects in products Drop in labor efficiencyNo quality consciousness (why bother?)Increased absenteeismIncreased labor turnover
11 TQM Requires Top management commitment Continuous improvement All aspects of the businessLong-term commitmentv Top Management Commitmento Setting the example in their commitment to qualityo Making quality & TQM part of the company’s strategyo Willingness to invest in training & other important features of TQMv Continuous Improvementso The key to making improvementso Easier said than doneo Measurements have to be made & recordedo People will resist being measuredo Quality is a moving target. Objectives must continually be reassessed & sights reset on new the objectiveso Quality circles of 5 – 10 people can be used to achieve thiso C.I. is a journey of many (small) steps i.e. you don’t just arrive at the destinationo A map is required with assessment & reviews to be carried out at every crossroadso Roadblocks will be encountered along the wayv All Aspects of the Businesso The Quality drive relates to all personnel within & without the firmo Covers ALL aspects of the supply chainv Long-term Commitmento TQM is not a “quick-fix”o Includes company-wide controlo It is ideally an everlasting approach to managing quality
12 Eight attributes of quality PerformanceFeaturesReliabilityServiceabilityDurabilityConformanceAestheticsPerceived QualityEight attributes of qualityPerformance: the primary operating capabilities of the productFeatures: these are the bells and whistles attributes that are aimed at adding value over and above the basic performance variables aboveReliability: this is to do with failure, a facet important in all quality assessments but vital (literally life and death)Serviceability: the speed and competence of repair: ideally this will be an attribute that is not required oftenDurability: this may be specific to requirements; a product may be seen as a consumable rather than a durable. Laptops 12-month life cycle (previously they were expected to be used for 60 months)Conformance: the is the extent to which a product meets its specifications – weight, width, power, and sizeAesthetics: This is a development of the features element and will not apply to all markets – it is quite subjectivePerceived Quality: Overall perception that a person has, this encompasses all attributes above and more. Includes Pre-purchase and post-usefulness.
13 The difference between TQM and non TQM Companies IBM in Ontario ordered a batch of components specifying an SQL of 3 defective parts per When the parts arrived from the Japanese manufacturer they were accompanied by a letter which expressed their bewilderment at being asked to supply defective parts as well as good ones. The letter explained that they had found it difficult to manufacture the defective parts , but indeed had. These 3 defective parts per 1000 had been included and were wrapped separately for the convenience of the customer.
16 Quality Circles5-10 People usually drawn from the same operational areaMeet regularly during work timeChaired by a deputy, or foremanUse of SQC methods and problem solving techniques - Brainstorming and goal orientationFuture problems - failure mode effects analysisOpportunity for development both formal and through creativityManagement must act on recommendations from the group
17 KaizenKAIZEN is a Japanese word meaning gradual and orderly, continuous improvement.It is a business strategy involves everyone in an organisation working together to make improvements 'without large capital investments'.KAIZEN is a culture of sustained continuous improvement focusing on eliminating waste in all systems and processes of an organisation.KAIZEN strategy begins and ends with people. Involved leadership guides people to continuously improve their ability to meet expectations of high quality, low cost, and on-time delivery.Source:
18 Kaizen –The Wet Blanket Approach I am too busy to study itIt's a good idea, but the timing is prematureIt is not in the budgetTheory is different from practiceIsn't there something else for you to do ?I think it doesn't match corporate policyIt isn't our business; let someone else think about itAre you dissatisfied with your work ?It's not improvement, it's common senseI know the result, even if we don't do itI will not be held accountable for itCan't you think of a better idea ?Source:
19 Basic tips for Kaizen Activities Discard conventional fixed ideas.Think of how to do it, not why it cannot be done.Do not make excuses. Start by questioning current practices.Do not seek perfection. Do it right away even if for only 50% of target.Correct it right away, if you make a mistake.Do not spend money for KAIZEN, use your wisdom.Wisdom is brought out when faced with hardship.Ask 'WHY?" five times and seek root causes.Seek the wisdom of ten people rather than the knowledge of one.KAIZEN ideas are infinite.Source:
20 Pareto Diagrams Total Number of Problems Class A factors are the 20% of recurring causes resulting in 80% ofall quality symptoms - these are critical and must be reduced.
21 Total Productive Maintenance ‘Prevention rather than cure’Seri - SortingSeiton - OrderlinessSeiso - CleaningSeiketsu - Cleanliness
22 Taguchi Methods Approach pulls quality back to the design stage. Recognizes quality as societal issue as well as an organizational one.Strong on process control