1. Group 3 26 July 2005Total Quality Management T OTAL Q UALITY M ANAGEMENT Engineering 7943: Production and Operations Management

2. Group 3 26 July 2005Total Quality Management O UTLINE Definition History Customer Satisfaction Continuous Improvement of Performance Employee Involvement Implementation Barriers Benefits

3. Group 3 26 July 2005Total Quality Management D EFINITION Quantitative methods and human resources Three elements –Customer satisfaction –Continuous improvement of performance –Employee involvement Includes customers and employees

4. Group 3 26 July 2005Total Quality Management H ISTORY Emerged from the quality movement 1920s - 1930s: Shewhart’s Statistical Quality/Process Control 1940s - 1960s: Deming and Juran 1961: Feigenbaum, Total Quality Control 1970s: Crosby, zero defects, quality is free 1983: Feigenbaum, re-released Total Quality Control

5. Group 3 26 July 2005Total Quality Management C USTOMER S ATISFACTION Customer obsession – Number one priority Experiencing the process –Management acting as consumer / customer Profiling –Questionnaires –Surveys –Personal visits –Focus groups

6. Group 3 26 July 2005Total Quality Management C USTOMER S ATISFACTION Quality and reliability Follow-up consultation Kansei Importance of value Psychological impression –Websites –Availability –Delivery

7. Group 3 26 July 2005Total Quality Management C ONTINUOUS I MPROVEMENT Japanese word kaizen, meaning incremental change Use, Statistical Process Control and Quality Teams USA-PDCA method

8. Group 3 26 July 2005Total Quality Management U NDERSTAND (U SA-PDCA ) Know customers, both internal and external Know customer needs –Who are the customers of a process? –What products or services does the process supply? –What are the customer needs? –To what extend does the product or service meet customer expectations for quality?

9. Group 3 26 July 2005Total Quality Management S ELECT ( U S A-PDCA ) Identify discrepancies Discrepancy if a product fails or exceeds expectations Prioritize Select

10. Group 3 26 July 2005Total Quality Management A NALYZE ( US A -PDCA ) Current State Analysis and Cause Analysis with flow charts and statistical quality control (SQC, similar to SPC) SQC: control charts, histograms, scatter diagrams, pareto charts, fishbone diagrams, and check sheets

11. Group 3 26 July 2005Total Quality Management P LAN ( USA- P DCA ) PDCA cycle, begins when the cause of a variation has been identified; eliminate or emulate Plan: Brainstorm, choose and develop a plan

12. Group 3 26 July 2005Total Quality Management D O ( USA-P D CA ) Carry out the plan Can be done on experimental basis

13. Group 3 26 July 2005Total Quality Management C HECK ( USA-PD C A ) Use SPC to analyse performance If not solved, loop back to the plan or analyze stage If solved, move to the adopt phase

14. Group 3 26 July 2005Total Quality Management A DOPT ( USA-PDC A) Implement the solution across the entire organization

15. Group 3 26 July 2005Total Quality Management R EPEAT PDCA cycle may be repeated many times for an individual process The USA process should be updated or repeated after major changes or time increments

16. Group 3 26 July 2005Total Quality Management E MPLOYEE I NVOLVEMENT Foster employee ownership Management system supportive of collaboration Relying on quality at the source, not inspection Employees involved in improving processes

17. Group 3 26 July 2005Total Quality Management Q UALITY T EAMS Several volunteer employees responsible for a specific process Undertake continuous improvement tasks, utilizing statistical process control to verify improvements Recognise employees for contributions Do not work well without managerial support or statistical process control

18. Group 3 26 July 2005Total Quality Management S ELF -M ANAGED T EAMS Hard to implement Employees must be willing to take on more responsibility If completed successfully, can be highly efficient

19. Group 3 26 July 2005Total Quality Management S UGGESTION S YSTEM Support of management and supervisors Clear submission and rejection procedures Reasons for rejecting made clear Recognition when a suggestion is implemented

20. Group 3 26 July 2005Total Quality Management I MPLEMENTATION Requires systematic, integrated, consistent, organization wide approach Determine specific changes necessary to create and maintain TQM Requires a change in three dimensions –Physical methods (process, technology) –Culture (norms, values, beliefs) –Political System (decision making systems, power base) TQM should be –purpose oriented –evolve from an organization's strategic plan –based on the expectations held by the customers

21. Group 3 26 July 2005Total Quality Management I MPLEMENTATION ( C ONT’D) Differs from one organization to the next Common Aspects for TQM implementation: –Assessment of Current State –Determination and application of Plan of Action –Training Quality of leadership is fundamental in facilitating change

22. Group 3 26 July 2005Total Quality Management A SSESSMENT OF C URRENT S TATE Helps predict likelihood of successful implementation Essential information regarding –Organization’s history –Current needs –Existing employee quality of life –Precipitating events leading up to TQM Organization should be “basically healthy” before attempting TQM –Significant problems endanger success unstable funding base weak administrative systems lack of managerial skills poor employee morale Level of stress on organization may be desirable to initiate TQM

23. Group 3 26 July 2005Total Quality Management A CTION P LANNING Method to determine and implement desired TQM changes Involves entire organization General steps for Action Planning –Define objective –Determine specific goals to support objective –Develop strategy –Determine and apply tactics and operations necessary for success Integrate action into organization’s culture Continuously collect data regarding improvement to ensure success of plan

24. Group 3 26 July 2005Total Quality Management T RAINING Comprehensive training program necessary to create and maintain TQM Institutionalized in entire organization Focuses on specific behaviors and skills required for TQM environment Training begins with management and moves down through organization as necessary Candidate list for TQM training include –Action Planning –Leadership –Team Building –Tools and Techniques

25. Group 3 26 July 2005Total Quality Management R OLE OF M ANAGEMENT Leadership is key element in successful implementation of large- scale change Leaders –Show need and set vision –Take a long-term perspective –Motivate others to stick with the process –Are persistent, using constant reinforcement Leadership style should be participative Leaders expect a long term process, including a transition period

26. Group 3 26 July 2005Total Quality Management S UGGESTIONS Don’t “Do TQM” TQM should not exist as a separate entity of organization Employees should be involved in decisions whenever possible TQM should not have an end

27. Group 3 26 July 2005Total Quality Management B ARRIERS Lack of management commitment Inability to change organizational culture Improper planning Lack of continuous training and education Incompatible organizational structure Insufficient resources Use of prepackaged program Ineffective measurement techniques Inadequate attention to customers Inappropriate conditions for implementation Inadequate use of teamwork

28. Group 3 26 July 2005Total Quality Management B ENEFITS Customer satisfaction Intangible and tangible Product quality –Less waste and rework –Higher profits Employee involvement –Training –Quality of life