Total Quality Management

What’s Your Definition of Quality?

Quality The ability of a product or service to meet or exceed customer expectations. The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. The customer’s perception of the degree to which a product or service is fit for purpose.

Quality The business meanings of quality have developed over time. Various interpretations are given below: ISO 9000: "Degree to which a set of inherent characteristics fulfills requirements.“ The standard defines requirement as need and expectation.

Quality Philip B. Crosby: "Conformance to requirements." Joseph M. Juran: "Fitness for use.“ Fitness is defined by the customer. Genichi Taguchi: "Uniformity around a target value.“ The idea is to lower the standard deviation in outcomes, and to keep the range of outcomes to a certain number of standard deviations, with rare exceptions.

Quality American Society for Quality: "The characteristics of a product or service that bear on its ability to satisfy stated or implied needs.” W. Edwards Deming: concentrating on "the efficient production of the quality that the market expects," and he linked quality and management: "Costs go down and productivity goes up as improvement of quality is accomplished by better management of design, engineering, testing and by improvement of processes."

Terms of Definitions Customer Satisfaction: Customer’s perception of the degree to which the customer’s requirements have been fulfilled. Quality Management System: Management System to direct and control an organization with regard to quality. Quality Improvement: Part of QM focused on increasing the ability to fulfill quality requirements.

Terms of Definitions Quality Policy: Overall intentions and direction of an organization with regard to quality. Quality Planning: Part of QM focused on setting quality objectives and specifying necessary operational processes and related resources to fulfill the quality objectives. Quality Objective: something sought, or aimed for, relating to quality.

Terms of Definitions Corrective action: Action taken to eliminate the cause of a detected non-conformity or other undesirable situation. Prevention action: Action taken to eliminate the cause of a potential non-conformity or other potentially undesirable situation.

The Quality Evolution 1. Inspection 2. Quality Control (QC) Inspect products 2. Quality Control (QC) Operational techniques to make inspection more efficient and to the cost of quality (example: SPC)

The Quality Evolution 3. Quality Assurance (QA) Planned and systematic actions to insure that products or services conform to company requirements. 4. Total Quality Management (TQM) Incorporates QC/QA activities into a company-wide system aimed at satisfying the customer (involves all organizational functions)

Cost of Quality Appraisal Costs Prevention Costs Costs of activities designed to ensure quality or uncover defects Prevention Costs All TQ training, TQ planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring

Cost of Quality Failure Costs - costs incurred by defective parts/products or faulty services. Internal Failure Costs Costs incurred to fix problems that are detected before the product/service is delivered to the customer. External Failure Costs All costs incurred to fix problems that are detected after the product/service is delivered to the customer.

Total Quality Management

Total Quality Management (Definition) Total - Make up of the whole Quality - degree of excellence a product or service provides Management - Act, art or manner of planning, controlling, directing,…. Therefore, TQM is the art of managing the whole to achieve excellence.

Total Quality Management (Definition) A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.

Total Quality Management (Definition) Total Quality Management means that the organization's culture is defined by and supports the constant attainment of customer satisfaction through an integrated system of tools, techniques, and training. This involves the continuous improvement of organizational processes, resulting in high quality products and services.

TQM system consists of: Culture or Philosophy Principles Tools and Techniques

The Culture of TQM The culture of the company has a major impact on the opportunities of TQM applying. The applying of TQM requires a cultural change of the company. The employees and managers have to be convinced about the importance of TQM. If companies feel the necessity to change, and have the capacity to carry out the change, then TQM gets greater support and is easier to be implemented.

Principles of TQM

Customer –Driven Quality Principles of TQM Customer –Driven Quality Organizations must listen to the “voice of customer” and emphasize design quality and defect prevention. “Do it right first time and every time”, for customer satisfaction is the most important consideration.

Top Management Commitment Principles of TQM Top Management Commitment Creating and deploying clear quality values and goals consistent with the objectives of the company. well defined systems, methods and performance measures for achieving these goals.

Continuous Improvement Principles of TQM Continuous Improvement Continuous improvement of the quality of the product is seen as the only way to maintain a high level of customer satisfaction. Technical techniques such as SPC, benchmarking, ISO 9000, are excellent for problem solving which help in applying continual improve processes.

Principles of TQM Employees Participation and Development Everyone is responsible. All people must be trained in TQM. People come to work not only to do their jobs, but also to think about how to improve their jobs. People must be empowered to perform processes in an optimum manner at the lowest possible level.

Treating Suppliers as Partners Principles of TQM Treating Suppliers as Partners An organisation and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value.

Principles of TQM Fast Response the success of any firm or organization exactly depends on the response to changes in order to improve products and services.

Principles of TQM Management by Facts The management of quality must have actual and accurate information and data. Effective decisions are based on the analysis of data and information.

Design Quality and Prevention Principles of TQM Design Quality and Prevention This is should be from the design steps of the products or services until introducing the product to the market and customers.

Tools and Techniques of TQM Process Chart and Flow Chart Pareto Analysis The Ishikawa Diagram Histogram Chart Run Diagram and Correlation Statistical Process Control (SPC) Check Sheets Quality Function Deployment (QFD) Benchmarking

Obstacles to Implementing TQM Lack of management commitment Inability to change organizational culture Improper planning Lack of continuous training and education Incompatible organizational structure Insufficient resources Ineffective measurement techniques Inadequate attention to customers Inappropriate conditions for implementation Inadequate use of teamwork