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Total Quality Management Key concepts The Cost of Quality Tools and Techniques Benefits Implementation.

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Presentation on theme: "Total Quality Management Key concepts The Cost of Quality Tools and Techniques Benefits Implementation."— Presentation transcript:

1 Total Quality Management Key concepts The Cost of Quality Tools and Techniques Benefits Implementation

2 Whole operation Involved Quality strategy Teamwork Staff Empowerment Customer Involvement Supplier Involvement Total Quality Management Quality System Quality Costing Problem Solving Quality Planning Quality Assurance Quality Control Statistical Methods Process Performance Quality Standards Error Detection Rectification Inspection Company Wide Quality Control Quality measured in all areas of the firm

3 The Cost of Quality Elements (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 something Not just a manufacturing initiative

4 Cost of Quality The earlier in the process that quality is fixed the lower the overall cost. (obvious really isn’t it!) Prevention Appraisal External failure Internal failure Prevention Internal failure Appraisal External failure

5 Quality Management Tools Pareto principle 80/20 Visual presentation – histograms, scatter diagrams, control charts Check sheets SPC – Statistical Process Control Cause and effect diagrams – Fishbone / Ishikawa diagram Stratification

6 Beyond Tools to TQM Taguichi Quality Loss Function (QLF) Quality circles BPR Kaizen

7 Company Wide Quality Control Customer service Quality of management Quality of company Quality of labour Quality of Materials, techniques, equipment

8 TQM Implementation Top level strategy with management support Steering Group Group based improvement (quality circles) Continuous improvement (Kaizen) Success recognized Training, lots of it & continuously Examples of formats MBNQA, ISO 9001 / BS 5750

9 Benefits Shareholder wealth Increased job satisfaction (by improved communication and involvement, better training, pride in work workmanship Customer needs are better met Improved supplier relationship Corporate image improved Longer term relationships – customer value

10 Without TQM Uninterested operators Increased defects in products Drop in labor efficiency No quality consciousness (why bother?) Increased absenteeism Increased labor turnover

11 TQM Requires Top management commitment Continuous improvement All aspects of the business Long-term commitment

12 Eight attributes of quality Performance Features Reliability Serviceability Durability Conformance Aesthetics Perceived Quality

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.

14 Extra Slides

15 Ishikawa 4 M’s Effect Machines Methods Materials Manpower Lack of maintenance

16 Quality Circles 5-10 People usually drawn from the same operational area Meet regularly during work time Chaired by a deputy, or foreman Use of SQC methods and problem solving techniques - Brainstorming and goal orientation Future problems - failure mode effects analysis Opportunity for development both formal and through creativity Management must act on recommendations from the group

17 Kaizen KAIZEN 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 it It's a good idea, but the timing is premature It is not in the budget Theory is different from practice Isn't there something else for you to do ? I think it doesn't match corporate policy It isn't our business; let someone else think about it Are you dissatisfied with your work ? It's not improvement, it's common sense I know the result, even if we don't do it I will not be held accountable for it Can'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% of all quality symptoms - these are critical and must be reduced.

21 Total Productive Maintenance ‘Prevention rather than cure’ Seri - Sorting Seiton - Orderliness Seiso - Cleaning Seiketsu - 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

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