T o t a l Q uality M anagement

Objective: TOOTLIFEST…. know and understand TQM. know the characteristics that influences the quality work of life. learn the benefits of focusing on quality.

Overview Introduction of TQM Defining Quality Definition of Terms Job Characteristics that Influences QWL Benefits of Focusing on Quality Evolution of TQM Philosophy of TQM Deming’s 14 Points in TQM Seven Deadly Diseases of Management Quality Awards and Standard

Introduction… Management approaches has changed overtime Before, products are produced by skilled craftsmen… The industrial revolution has caused many changes…. The need for craftsmen declined while Taylorism became widely employed which resulted to the loss of focus on quality Theories in Human Relations emerges to answer the problem of Taylorism Overtime, some find it difficult to identify how to contribute to the objectives

Defining QUALITY Conformance to specifications Fitness for use Value for price paid Support services Psychological criteria

Defining QUALITY …… in Manufacturing Organizations Conformance Performance Reliability Features Durability Serviceability

Defining QUALITY …… in Service Organizations Tangible factors Consistency Responsive to customer needs Courtesy/friendliness Timeliness/promptness Atmosphere

Today….. The new CONCEPT of quality is TOTAL QUALITY MANAGEMENT or TQM

Definition of Terms Total – quality involves everyone and all activities in the company. Quality – conformance to requirements (meeting customer’s requirements) Management – quality must be managed. TQM – A process of managing quality. It must be a continuous way of life; a philosophy of perpetual improvement in everything we do.

Definition of Terms Humanized Work Quality of work life produces a more humanized work environment. Attempts to serve the higher order needs of workers as well as their moral basic needs. Seeks to employ the higher skills of workers and to provide an environment that encourages them to improve their skills. Workers are human resources that are to be developed rather than simply used.

Definition of Terms Quality of Work Life (QWL) Refers on how effectively the job environment meets the needs of workers and values of work-life.

Job Characteristics that Influences QWL Humanized Jobs – Workers are human resources that should be developed rather than simply used. Job Enrichment – Additional motivators are added to the job to make it more rewarding. It sought to give workers a variety of duties in order to reduce monotony. Task Identity – Workers are allowed to perform a complete piece of work. Task Significance – Refers to the amount of impact as perceived by workers. Autonomy – It gives workers some control of their own affairs and builds a sense of responsibility to workers. Feedback – Comes from the job itself and from the management. It tells workers how well they are performing.

Benefits of Focusing on Quality Eliminates waste, reduces cost and increases productivity Enables people to make meaningful contributions to their work Improves operational readiness of the Armed Forces Remove impediments to organizational change Quality in government service Top leads new jobs Provide knowledge, guidance and resources for improvement

EVOLUTION of TQM TIME Early 1900s 1940s 1960s 1980s & Beyond FOCUS Inspection Statistical sampling Organizational quality focus Customer driven quality ---------Old Concept of Quality------------ Inspect for quality after production ---New Concept of Quality--- Build quality into the process. Identify and correct causes of quality problems.

EVOLUTION of TQM QUALITY GURU MAIN CONTRIBUTION Walter A Shewhart Contributed to understanding of process variability Developed concept of statistical control charts W. Edwards Deming Stressed management’s responsibility for quality Developed “14 points” to guide companies in quality improvement. Joseph M Juran Defined quality as “fitness for use” Developed concept of cost of quality Armand V Feigenbaum Intoduced concept of total quality control Philip B Crosby Coined phrase “quality is free” Introduced concept of zero defects Kaoru Ishukawa Developed cause and effect diagrams Identified concept of “internal customer” Genichi Taguchi Focused on product design quality Developed Taguchi loss function.

PHILOSOPHY of TQM Customer Focus Continuos Improvement Employee Empowerment Use of quality tools Product design Process Managment Managing supplier quality

Customer Focus Goal is to identify and meet customer needs

Continuous Improvement A philosophy of never-ending improvement. the PDSA cycle which describes the activities to perform in order to incorporate continous improvement Plan Do Study Act

Employee Empowerment Employees are expected to seek out, identify, and correct quality problems

Use of quality tools Ongoing employee training in the use of quality tools

Product Design Product need to be designed to meet customer expectations

Process Management Quality should be built into the process; sources of quality problems should be identified and corrected.

DEMING 14 POINTS OF TQM

Deming 14 pts of TQM Point 3 Point 2 Point 1 Seminar A Point7 Point 6 Seminar B Point10 Point 9 Point 8 Seminar C Point 14 Point 13 Point 12 Point 11 Seminar D

Deming’s 14 Points in TQM Create and publish to all employees a statement of aims and purposes of the company or the organization. The management must demonstrate constantly their commitment to this statement. Learn the new philosophy, top management and everybody. Understand the purposes of inspection for the improvement and processes and reduction costs. End the practicing of rewarding business on the basis of price tag alone. Improve constantly and forever the system of production and service.

Deming’s 14 Points in TQM Institute Training (for skills). Teach and institute leadership. Drive out fear, create trust. Create a climate for innovation. Optimize toward the aims and purposes of the company, the efforts of teams, groups, staff areas, etc. Eliminate exhortation in the work force. Eliminate numerical quotas for production. Eliminate MBO (management by objectives). Instead, learn capabilities of processes and how to improve them.

Deming’s 14 Points in TQM Remove barriers that rob people of pride of workmanship. Encourage education and self-improvement for everyone. Take action to accomplish transformation.

Seven Deadly Diseases Lack of consistency and purpose Emphasis on short-term profit Evaluation of performance merit rating airway annual review Mobility of top management Managements by use of visible figures Excessive medical costs Excessive costs of warranty

Quality Awards & Standards Malcolm Baldrige National Quality Award (MBNQA) Deming Prize ISO 900 Standards ISO 14000 Standard

Summary Introduction of TQM Defining Quality Definition of Terms Job Characteristics that Influences QWL Benefits of Focusing on Quality Evolution of TQM Philosophy of TQM Deming’s 14 Points in TQM Seven Deadly Diseases of Management Quality Awards and Standard

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