1. TOTAL QUALITY MANAGEMENT: TQM Origins, Evolution & key elements

2. What is Quality? Quality is “fitness for use” (Joseph Juran)
Quality is “conformance to requirements”
(Philip B. Crosby)
Quality of a product or services is its ability to satisfy the needs and expectations of the customer

3. Evolution of Quality Management
Salvage, sorting, grading, blending, corrective actions, identify sources of non-conformance
Inspection
Develop quality manual, process performance data, self-inspection, product testing, basic quality planning, use of basic statistics, paperwork control.
Quality Control
Quality systems development, advanced quality planning, comprehensive quality manuals, use of quality costs, involvement of non-production operations, failure mode and effects analysis, SPC.
Quality Assurance
Policy deployment, involve supplier & customers, involve all operations, process management, performance measurement, teamwork, employee involvement.
TQM

4. W. E. Deming and the 6 Era’s of Quality
1920’s : New statistical thinking and methods in
manufacturing
1930/40’s : Use of statistical thinking outside
1950/60’s : Systems of improvement
1970/80’s : The fourteen points
Late 80’s : The “New Climate”
1990’s : System of Profound Knowledge

5. Deming’s view of a production as a system
Receipt & test of materials
Design & redesign
Consumer Research
Suppliers, materials & equipment
Production, assembly, inspection
Distribution
Consumers
Test of processes, machines, methods, cost

6. Deming’s Chain Reaction
Improve Quality
Provide jobs and more jobs
Cost decreases because of less rework, fewer mistakes, fewer delays, snags, better use of machine time and materials
Stay in business
Productivity improves
Capture the market with better quality and lower price

7. The Deming Cycle or PDCA Cycle
PLAN
Plan a change to the process. Predict the effect this change will have and plan how the effects will be measured
ACT DO
Adopt the change as a permanent modification to the process, or abandon it.
Implement the change on a small scale and measure the effects
CHECK
Study the results to learn what effect the change had, if any.

8. W. Edwards Deming’s 14 Points1)
Create constancy of purpose towards improvement of product and services.
Adopt the new philosophy. We can no longer live with commonly accepted levels of delays, mistakes, defective workmanship.
Cease dependence on mass inspection. Require, instead, statistical evidence that quality is built in.
End the practice of awarding business on the basis of price tag. 2) 3) 4)

9. W. Edwards Deming’s 14 Points5)
Find problems. It is management’s job to work continually on the system.
Institute modern methods of training on the job.
Institute modern methods of supervision of production workers. The responsibility of foremen must be changed from numbers to quality.
Drive out fear that everyone may work effectively for the company. 6) 7) 8)

10. W. Edwards Deming’s 14 Points9)
Break down barriers between departments.
Eliminate numerical goals, posters and slogans for the workforce asking for new levels of productivity without providing methods.
Eliminate work standards that prescribe numerical quotas.
Remove barriers that stand between the hourly worker and his right to pride of workmanship.
10)
11)
12)

11. W. Edwards Deming’s 14 Points
13)
Institute a vigorous programme of education and retraining.
Create a structure in top management that will push everyday on the above 13 points.
14)

12. Deming’s System of Profound Knowledge
Knowledge about variation
Appreciation for system
Theory about knowledge
Knowledge of psychology

13. Philip Crosby’s Four Absolutes
What is Quality?
Definition : Conformance to requirements
System of quality is prevention
Performance Standard : Zero Defects
Measurement : Price of non-conformance (PON)
What system is needed to cause quality?
What performance standard should be used?
What measurement system is required?

14. Crosby’s Successful Company
Characteristics of the Eternally Successful Organisation
People do things right routinely
Growth is profitable and steady
Customer needs are anticipated
Change is planned and managed
People are proud to work there

15. Philip B. Crosby’s 14 Points1)
Make it clear that management is committed to quality.
Form quality improvement teams with representatives from each department.
Determine where current and potential quality problems lie.
Evaluate the cost of quality and explain its use as a management tool. 2) 3) 4)

16. Philip B. Crosby’s 14 Points5)
Raise the quality awareness and personal concern of all employees.
Take actions to correct problems identified through previous steps.
Establish a committee for the zero defects programme.
Train supervisors to actively carry out their part of the quality improvement programme. 6) 7) 8)

17. Philip B. Crosby’s 14 Points9)
Hold a ‘zero defects day’ to let all employees realise that there has been a change.
Encourage all individuals to establish improvement goals for themselves and their groups.
Encourage employees to communicate to management the obstacles they face in attaining their improvement goals.
Recognise and appreciate those who participate.
10)
11)
12)

18. Philip B. Crosby’s 14 Points
13)
Establish quality councils to communicate on a regular basis.
Do it all over again to emphasise that the quality improvement programme never ends.
14)

19. Joseph M. Juran’s Quality Trilogy
Quality Planning
Establish quality goals
Identify customer needs
Translate needs into our language
Develop a product for these needs
Optimise product features for these needs
Quality Control
Prove the process can produce under operating conditions
Transfer process to operation
Quality Improvement
Seek to optimise the process via tools of diagnosis

20. Juran’s Trilogy Diagram
Quality Planning
Quality control (during operations) 40
Quality improve -ment
New zone of quality control
Cost of Poor Quality
Original zone of quality control 20
TIME
Lessons learned

21. Juran’s Quality Planning Road Map
1) Identify who are the customers
2) Determine the customer’s needs
3) Translate the needs into our language
4) Develop a product to meet those needs
5) Optimise a product so as to meets our needs
as well as the customer’s.
6) Develop a process which is able to produce the
product
7) Optimise the process
8) Prove the process can make the product
under operating conditions

22. Joseph M.Juran and the Cost Of Quality
2 types of costs:
Unavoidable Costs: preventing defects (inspection, sampling, sorting, QC)
Avoidable Costs: defects and product failures (scrapped materials, labour for re-work, complaint processing, losses from unhappy customers
“Gold in the Mine”

23. Joseph M.Juran and the Cost Of Quality
Costs
Total Costs
Unavoidable costs
Avoidable costs
100% defective
Point of “Enough quality”

24. Joseph M. Juran’s 10 Points1)
Build awareness of the need and opportunity for improvement.
Set goals for improvement.
Organise to reach the goals (establish a quality council, identify problems, select projects, appoint teams, designate facilitators)
Provide training.
Carry out projects to solve problems 2) 3) 4) 5)

25. Joseph M. Juran’s 10 Points6)
Report progress.
Give recognition.
Communicate results.
Keep score.
Maintain momentum by making annual improvement part of the regular systems and process of the company. 7) 8) 9)
10)

26. What is TQM? Management by Fact Organisation response ability
Concern for employee involvement and development
Management by Fact
Constant drive for continuous improvement and learning.
Organisation response ability
Passion to deliver customer value / excellence
Result Focus
Partnership perspective (internal / external)
Actions not just words (implementation)
Process Management

27. Customer Satisfaction Employee Satisfaction
LEARNING AND TQM
Learning
Process Improvement
Quality Improvement
Customer Satisfaction
Shareholder Satisfaction
Employee Satisfaction

28. BASIC PRINCIPLES OF TQM
Approach Management Led
Scope Company Wide
Scale Everyone is responsible for Quality
Philosophy Prevention not Detection
Standard Right First Time
Control Cost of Quality
Theme On going Improvement

29. FOUR KEY PRINCIPLES Measure quality so you can affect it
Focus on a moving customer
Involve every employee
Think long term - Act short term

30. THE CASE FOR QUALITY
1 Success of competitors who take quality seriously
2 Rising expectations of customers
3 Quality differentiates companies from the
competition
4 Narrowing of supplier bases by quality conscious
companies .

31. THE CASE FOR QUALITY 5 Growing evidence that growth in market
share comes from sustained quality.
6 Cost advantages
7 High cost of catastrophic failure
8 Inspection poor substitute for right first time

32. SEVEN DEADLY SINS OF TQM
Flight to nowhere
One size fits all
Substituting TQM for leadership
Inside - Out indicators
Mandatory religion
Quality kept as a separate activity
Teaching to the test
Booz-Allen & Hamilton

33. IS QUALITY A SOUND INVESTMENT?
Year Company Stock Growth (Oct 94)
1988 Motorola %
1988 Westinghouse (CNFD) %
1989 Xerox (BPS) %
1990 General Motors %
1990 Federal Express %
1990 IBM (IBM Rochester) %
1991 Selectron %
1992 AT&T (UCS) %
1992 AT&T (TSBU) %
1992 Texas Instruments (DS&E) %
1993 Zyta %
1994 Eastman Chemical %
Total Stock Value £23016 (91.8% growth)
Standard & Poor 500 Stock value £15911 (32.6% growth)
Source: US Dept. of Commerce Study 1995

34. THE NEW ISO
QUALITY STANDARD

35. REASONS FOR CHANGE ISO Technical Committee (TC) argue that:
The main reason for the year 2000 revision is to give users the opportunity to add value to activities and to improve their performance continually by focusing on the major processes within the organisation

36. ISO 9000 2000 CHANGES CUSTOMER FOCUSED ORGANISATION LEADERSHIP
INVOLVEMENT OF PEOPLE
PROCESS APPROACH
SYSTEM APPROACH TO MANAGEMENT
CONTINUAL IMPROVEMENT
FACTUAL APPROACH TO DECISION MAKING
MUTUALLY BENEFICIAL SUPPLIER RELATIONSHIPS

37. IMPLEMENTATION PRINCIPLES
MANAGEMENT RESPONSIBILITY
RESOURCE MANAGEMENT
PRODUCT REALIZATION
MEASUREMENT, ANALYSIS AND IMPROVEMENT

38. More clearly defined requirements
Continual improvement
increased emphasis on the role of top management
establishment of measurable objectives at relevant functions and levels
Monitoring of information of customer satisfaction and/or dissatisfaction as a measurement of the system performance
Increased attention to resource availability; determination of training effectiveness
Measurement extending to the system, process, and product
Analysis of collected data on the performance of the quality management system

39. Quality is a Journey,
not a Destination