1. TQM: Customer Focused Quality
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2. Outline Quality defined Cost of quality
Framework for managing total quality
Employee involvement
Benchmarking
Quality certification and awards
Implementing TQM
TQM and JIT

3. Total Quality Management
Traditional:
Establish acceptable quality levels
Detect and rework or scrap defects
TQM
Focus entire company on all aspects of quality, with emphasis on the customer’s perspective
The customer is interested in Value, which combines quality and cost

4. Achieving Total Quality
techniques
philosophy
system

5. What is Quality?
The concept of quality is subjective and difficult to define
Certain aspects of quality can be identified
Ultimately, the judgement of quality rests with the customer

6. Quality: Customer’s perspective
Quality of design
Fitness for use
Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics
Perceived value

7. Quality: Producer’s Perspective
Quality of conformance
Satisfaction of requirements or specifications
Emphasis on defect detection and defect prevention

8. Producer’s Perspective Consumer’s Perspective
The Meaning of Quality
Producer’s Perspective
Consumer’s Perspective
Quality of Conformance
Quality of Design
Production
Marketing
Conformance to
specifications
Cost
Quality characteristics
Price
Fitness for
Consumer Use

9. Cost of Quality Prevention costs Appraisal costs
build it right the first time
Appraisal costs
inspection and testing
Internal failure costs
scrap and rework
External failure costs
warranty claims, recalls, lost business

10. “Quality is Free”
For the average company, the cost of quality is about 25% of total sales
The cost of prevention is a fraction of the cost of fixing mistakes after they are made
Investments in prevention can drastically reduce the total cost of quality

11. Three Areas to Improve Quality
Quality of design
meet the customer’s needs
design for manufacturability
build quality in
Quality of conformance
minimize and control process variation to satisfy the design specifications every time
Quality of service
The customer must come first

12. Framework for Managing Total Quality
Quality must continuously improve
TQM involves all parts of the company

13. TQM Throughout the Company
Marketing and sales
Feedback on customer wants and needs
Finance and accounting
Design and manufacturing
Product must satisfy customer
Design for manufacture
Simplify to improve quality
Production management, supervisors, line workers

14. TQM Throughout the Company
Purchasing and suppliers
Long-term supplier relations based on quality not price
Suppliers as part of design team
Customer service
Satisfy customer
Feedback information for improvement

15. Top Management’s Role
Commitment is required

16. Employee Involvement Give ownership of quality to workers
Organize for quality
Cross-functional teams
Quality circles
Process and project-oriented teams
Greater customer awareness
Train and educate workers
Quality skills and tools
Importance of TQM

17. Benchmarking Find the companies with the “best practices” Copy them
Improve them

18. Benchmarking Process Determining what to benchmark
Determining what to measure
Determining whom to benchmark
Collecting data
Analysing data
Setting goals and action plans
Monitoring the action

19. Quality Certifications
ISO 9000
Say what you do, and do what you say
QS 9000
More rigorous version adopted by big three automakers and suppliers
ISO 14000
Environmental management systems

20. Quality Awards Malcolm Baldrige Award
Canada Award for Business Excellence
Japan’s Deming Prize
Shingo Prize for Excellence in Manufacturing

21. Strategic Planning Mission & Vision Business Strategy Marketing
Operations
Financial
Voice of the
Business
Customer

22. Policy Deployment
Focusing and directing all activities and processes so they support the companies vision, mission and long-term strategy

23. Policy Deployment Steps
Develop a long term vision
Determine annual policies to support the long-term vision
Deploy the policy company-wide through participation in planning
Implement the policy
Audit the process and plans monthly
Audit the process annually by top management

24. Policy Deployment

25. In other words…
Make sure everyone understands and supports the company goals
Make sure individual and department goals are consistent with company goals
Plan ways to achieve the goals
Measure the success

26. TQM and JIT
TQM and JIT are consistent, interrelated and interdependent
Often they are combined as JIT/TQM