1. Total Quality Management K.RAMESH ASSISTANT PROFESSOR Mechanical Engineering SNS College of Engineering 1

2. 2 UNIT I INTRODUCTION Introduction - Need for quality - Evolution of quality - Definition of quality - Dimensions of manufacturing and service quality - Basic concepts of TQM - Definition of TQM – TQM Framework - Contributions of Deming, Juran and Crosby – Barriers to TQM.

3. Introduction Total – Made up of the whole(or) Complete. Quality – Degree of Excellence a product or service provides to the customer in present and future. Management – Act, art, or manner of handling, controlling, directing, etc. TQM is the art of managing the whole to achieve excellence. 3

4. 4 Definition Total Quality Management (TQM) is a management strategy aimed at creating awareness of quality in all organizational processes.managementawarenessquality

5. 5 " TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society."

6. 6 Explanation TQM requires that the company maintain this quality standard in all aspects of its business.quality standard This requires ensuring that things are done right the first time and that defects and waste are eliminated from operations.

7. Quality Quality – When a product or service meets or exceeds expectation considering the intended use and the selling price. What is Quality ? – Grade of service / product – Reliability – Safety – Consistency – Consumer's perception Quality = Performance / Expectation Definition by ISO 9000:2000 It if defined as the degree to which a set of inherent characteristics fulfils requirement. 7

8. Quality perspectives Everyone defines Quality based on their own perspective of it. Typical responses about the definition of quality would include: 1. Perfection 2. Consistency 3. Eliminating waste 4. Speed of delivery 5. Compliance with policies and procedures 6. Doing it right the first time 7. Delighting or pleasing customers 8. Total customer satisfaction and service 8

9. Need for quality Increase productivity Expand market share Raise customer loyalty Enhance competitiveness of the firm At a minimum, serve as a price of entry

10. Contd., Reasons for quality becoming a cardinal priority for most organizations: Competition – Today’s market demand high quality products at low cost. Having `high quality’ reputation is not enough! Internal cost of maintaining the reputation should be less. Changing customer – The new customer is not only commanding priority based on volume but is more demanding about the “quality system.” Changing product mix – The shift from low volume, high price to high volume, low price have resulted in a need to reduce the internal cost of poor quality. 10

11. Evolution of quality Era 11 1900 1920 1940 1960 1980 1990 2000 Craftsman Foreman Inspection SQC TQC TQM TQC &CWQC Evolution Years

12. Evolution of quality 12 1975 1980 1985 1990 1995 2000 Operation CustomersInnovations Quality of Work life Quality Circle Productivity Employee Involvement Quality Employees Empowerme nt Total Quality Self Directed Teams TQC/TQM Self Directed/Manage d Teams

13. 13 Performance: Primary product characteristics, such as the brightness of the picture Features: Secondary characteristics, added features, such as remote control Conformance : Meeting specifications or industry standards, workmanship Reliability: Consistency of performance over time, average time of the unit to fail Durability: Useful life, includes repair Service: Resolution of problems and complaints, ease of repair Response: Human – to – human interface, such as the courtesy of the dealer Aesthetics: Sensory characteristics, such as exterior finish Reputation: Past performance and other intangibles, such as being ranked first ------------------------------------------------------------------------------------------------- DIMENSIONS OF QUALITY

14. Concepts How is customer satisfaction achieved? Two dimensions: Product features and Freedom from deficiencies. Product features – Refers to quality of design. Examples in manufacturing industry: Performance, Reliability, Durability, Ease of use, Esthetics etc. Examples in service industry: Accuracy, Timeliness, Friendliness and courtesy, Knowledge of server etc. Freedom from deficiencies – Refers to quality of conformance. Higher conformance means fewer complaints and increased customer satisfaction. (This is related to free from defects.) 14

15. Basic Concepts of TQM Customer Focus Continuous Process Improvement - Kaizen Employee Empowerment – Everyone is responsible for quality Quality is free - focus on defect prevention rather than defect detection for it is always cheaper to do it right the first time Benchmarking – Legally stealing other people’s ideas Customer-Supplier Partnerships Management by fact..by numbers..by data – Balanced scoreboard (financial, customer, process, learning)Balanced scoreboard

16. Strength of USA vs. Japan 16 Concept Time Strength of USA Mfg Strength of Japanese Mfg KAIZEN Good Innovative IdeasGood Implementation Good Ideas, Good Implementation are the goals of everyone in the automotive industry

17. Historical Philosophies of Quality 17

18. The Quality Gurus Quality Gurus – Individuals who have been identified as making a significant contribution to improving the quality of goods and services. Walter A. Shewhart W. Edwards Deming Joseph M. Juran Armand Feigenbaum Philip Crosby Genichi Taguchi Kaoru Ishikawa

19. Quality Gurus (cont.) Walter Shewart – In 1920s, developed control charts – Introduced the term “quality assurance” W. Edwards Deming – Developed courses during World War II to teach statistical quality-control techniques to engineers and executives of companies that were military suppliers – After the war, began teaching statistical quality control to Japanese companies Joseph M. Juran – Followed Deming to Japan in 1954 – Focused on strategic quality planning

20. Quality Gurus (cont.)  Armand V. Feigenbaum  In 1951, introduced concepts of total quality control and continuous quality improvement  Philip Crosby  In 1979, emphasized that costs of poor quality far outweigh the cost of preventing poor quality  In 1984, defined absolutes of quality management— conformance to requirements, prevention, and “zero defects”  Kaoru Ishikawa  Promoted use of quality circles  Developed “fishbone” diagram  Emphasized importance of internal customer

21. Three of the Quality Gurus Compared Source: Modified from John S. Oakland, Total Quality Management (London: Heinemann Professional Publishing Ltd., 1989), pp. 291–92.

22. Three of the Quality Gurus Compared (cont’d) Source: Modified from John S. Oakland, Total Quality Management (London: Heinemann Professional Publishing Ltd., 1989), pp. 291–92.

23. Three of the Quality Gurus Compared (cont’d) Source: Modified from John S. Oakland, Total Quality Management (London: Heinemann Professional Publishing Ltd., 1989), pp. 291–92.

24. W. Edwards Deming’s contribution – Advocated Statistical Process Control (SPC) Methods which signal shifts in a process that will likely lead to products and/or services not meeting customer requirements. Emphasized an overall organizational approach to managing quality. Demonstrated that quality products are less costly than poor quality products. Identified 14 points critical for improving quality. – The Deming Prize Highest award for industrial excellence in Japan.

25. The Deming Prize Deming Prize – Initiated by Japan in 1951 to recognize the importance of high quality products. – Name after W. Edwards Deming – Categories of the Deming Prize: The Deming Prize for Individuals The Deming Application Prize The Quality Control Award for Operations/ Business Units

26. Deming’s 14-Point Program for Improving Quality 1.Create and publish to all employees a statement of the aims and purposes of the company. The management must demonstrate their commitment to this statement. 2.Learn and adopt the new philosophy. 3.Understand the purpose of inspection – to reduce the cost and improve the processes. 4.End the practice of awarding business on the basis of price tag alone. 5.Improve constantly and forever the system of production and service and training. 26

27. Contd., 6.Institute training 7.Teach and institute leadership. 8.Drive out fear. Create an environment of innovation. 9.Optimize the team efforts towards the aims and purposes of the company. 10.Eliminate slogans, exhortations, and targets for the workforce. 11.Eliminate numerical quotas for production. 12.Remove the barriers that rob pride of workmanship. 13.Encourage learning and self-improvement. 14.Take action to accomplish the transformation. 27

28. The Deming philosophy “A System of Profound Knowledge” 1.Appreciation for a system - A system is a set of functions or activities within an organization that work together to achieve organizational goals. Management’s job is to optimize the system. (not parts of system, but the whole!). System requires co-operation. 2.Psychology – The designers and implementers of decisions are people. Hence understanding their psychology is important. 28

29. The Deming philosophy 3.Understanding process variation – A production process contains many sources of variation. Reduction in variation improves quality. Two types of variations- common causes and special causes. Focus on the special causes. Common causes can be reduced only by change of technology. 4.Theory of knowledge – Management decisions should be driven by facts, data and justifiable theories. Don’t follow the managements fads! 29

30. Joseph M. Juran’s contribution – Emphasized the importance of producing quality products through an approach focused on quality planning, control, and improvement. – Defined product quality as “fitness for use” as viewed by the customer in: Quality of design Quality of conformance Availability Safety Field use – Categorized the cost of quality as: Cost of prevention Cost of detection/appraisal Cost of failure

31. The Juran philosophy Pursue quality on two levels: 1.The mission of the firm as a whole is to achieve high product quality. 2.The mission of each individual department is to achieve high production quality. Quality should be talked about in a language senior management understands: money (cost of poor quality). At operational level, focus should be on conformance to specifications through elimination of defects- use of statistical methods. 31

32. The Juran philosophy Quality Trilogy – 1.Quality planning: Process of preparing to meet quality goals. Involves understanding customer needs and developing product features. 2.Quality control: Process of meeting quality goals during operations. Control parameters. Measuring the deviation and taking action. 3.Quality improvement: Process for breaking through to unprecedented levels of performance. Identify areas of improvement and get the right people to bring about the change. 32

33. Philip Crosby’s contribution Philip Crosby – Preached that “quality is free.” – Believed that an organization can reduce overall costs by improving the overall quality of its processes.

34. The Crosby philosophy Absolute’s of Management Quality means conformance to requirements not elegance. There is no such thing as quality problem. There is no such thing as economics of quality: it is always cheaper to do the job right the first time. The only performance measurement is the cost of quality: the cost of non-conformance. Basic Elements of Improvement Determination (commitment by the top management) Education (of the employees towards Zero Defects (ZD)) Implementation (of the organizational processes towards ZD) 34

35. Cost of Quality 35

36. The Cost of Quality Cost of Quality – Framework for identifying quality components that are related to producing both high quality products and low quality components, with the goal of minimizing the total cost of quality. – Costs of poor quality: Detection/appraisal costs Internal failure costs External failure costs

37. “Costs” of Quality CategoryDefinitionExample Prevention Costs associated with preventing defects. Training, early reviews, quality planning, tools, process improvement initiatives. Appraisal Costs associated with analyzing and testing the product to ensure it conforms to specifications. Inspections, testing, audits, quality control. Internal Failure Costs associated with fixing defects found prior to release. Repair, retesting, updating documentation. External Failure Costs associated with fixing defects found after release. Technical support, defect reporting and tracking, field updates, loss of future sales.

38. “Costs” of Quality Quality Cost Management shows how increased Prevention Costs reduce the Total Quality Costs.

39. The equation “Cost of Quality“ (COQ) allows to quantify the impact of POOR quality. It is used as a monitoring tool to track costs for inspection, internal errors, external errors, and prevention. As the prevention efforts are increased, the costs for inspection, internal failures and external failures drop. “Costs” of Quality E: External Failure Costs I: Internal Failure Costs A: Appraisal Costs P: Prevention Costs S: Sales

40. Elements of TQM & Implementation 40

41. Elements of TQM Leadership – Top management vision, planning and support Employee involvement – All employees assume responsibility for inspecting the quality of their work. Product/Process Excellence – Involves product design quality and monitoring the process for continuous improvement. Poka-yokes are devices that prevent defects from being produced.

42. Elements of TQM (cont’d) Continuous Improvement – A concept that recognizes that quality improvement is a journey with no end and that there is a need for continually looking for new approaches for improving quality. Customer Focus (on “Fitness for Use”) – Design quality Specific characteristics of a product that determine its value in the marketplace. – Conformance quality The degree to which a product meets its design specifications.

43. Implementing TQM Successful Implementation of TQM – Requires total integration of TQM into day-to-day operations. Causes of TQM Implementation Failures – Lack of focus on strategic planning and core competencies. – Obsolete, outdated organizational cultures.

44. Communication For TQM to be successful, the organization must concentrate on the following key elements: Ethics Integrity Trust Training Teamwork Leadership Recognition Implementation of TQM

45. Roof: Recognition (Motivation) The key elements of TQM can be divided into four groups according to their function: Foundation: Integrity, Ethics, Trust Building Bricks: Leadership, Teamwork,Training Binding Mortar: Communication Implementation of TQM

46. European Quality Award (EQA) European Foundation for Quality Management (EFQM) – Stimulate and assist European organizations in quality improvement activities. – Support managers in the adoption of TQM. EFQM Excellence Model – A non-prescriptive frame work based on nine criteria that recognizes that there are many approaches to achieving sustainable excellence.

47. Recent Winners of the European Quality Award