Total Quality Management

Dr. Srinivasa Prakash Regalla Professor & Head Department of Mechanical Engineering BITS, PILANI
(Hyderabad Campus)

Jawahar Nagar, Shameerpet Mandal, Hyderabad -500078, (Dist) R. R.

Total Quality Management Course Goals

To enable you to  Appreciate the importance of quality and understand its historical evolution  Understand the basic principles & practices of TQM. The main elements / practices required for any company wanting to achieve Excellence.  Apply quantitative and qualitative tools and techniques in appropriate ways to investigate and ultimately resolve product or service quality concerns; and  Evaluate the use of TQM initiatives, tools, and techniques in an organization

Course Overview

Total Quality Management

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Introduction


TQM is both a philosophy and a set of guiding principles for continuously improving the organization ...is the application of quantitative methods and human resources to improve all the processes within an organization and exceed customer needs now and in the future.

Introduction contd.
   

It is an enhancement to the traditional way of doing business It is a proven technique which guarantee a survival in the competitive world, if implemented properly TQM relies on common sense TQM stands for
Total - Made 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.

What is quality?


Some definitions that have gained wide acceptance in various organizations: Quality is customer satisfaction, Quality is Fitness for Use.

The American National Standards Institute (ANSI) and the American Society for Quality (ASQ) define quality as: The totality of features and characteristics of a product or service that bears on its ability to satisfy given needs.

Quality perspectives
Judgmental perspective  goodness of a product.  Shewharts transcendental definition of quality absolute and universally recognizable, a mark of uncompromising standards and high achievement.  Examples of products attributing to this image: Rolex watches, Lexus cars. Product-based perspective  function of a specific, measurable variable and that differences in quality reflect differences in quantity of some product attributes.  Example: Sony Bravia and Sansui 21 inch color televisions.

Quality perspectives contd.

User-based perspective  fitness for intended use.  Individuals have different needs and wants, and hence different quality standards.  Example Hyundai Accent Vs Mercedez Benz or BMW cars. Value-based perspective  quality product is the one that is as useful as competing products and is sold at a lesser price.  Example Indigo Vs Kingfisher.

Quality perspectives contd.

Manufacturing-based perspective  the desirable outcome of a engineering and manufacturing practice, or conformance to specification.  Engineering specifications are the key!  Example: Diameter of a shaft = 20 +/- 0.5mm

A better definition of quality

 

Proposed by Garvin He mentioned that quality is defined from nine different dimensions
Performance Primary product characteristics Features Secondary product characteristics Conformance Meeting specifications or standards Reliability Consistency of performance over time Durability Useful life Service Resolution of problem and complaints Response Human to human interaction Aesthetics Exterior finish Reputation Past performance

Basic approach/concepts of TQM

 

 

What are the Basic Concepts of TQM. Explain? A committed and involved management to provide long term top-to-bottom organizational support An unwavering focus on the customer both internal and external Effective involvement and utilization of the entire work force Continuous improvement of the business and production process Treating suppliers as partners Establish performance measures for the process

Understanding the TQM Language: Some Terms



What do you mean by a customer?

Anyone who is impacted by the product or process delivered by an organization. External customer: The end user as well as intermediate processors. Other external customers may not be purchasers but may have some connection with the product. Internal customer: Other divisions of the company that receive the processed product.

What is a product?
The output of the process carried out by the organization. It may be goods (e.g. automobiles, missile), software (e.g. a computer code, a report) or service (e.g. banking, insurance)

TQM Language contd.



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.

The Need for TQM

Why quality is becoming a cardinal priority for most organizations. Explain?  Competition Todays 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.

Need Contd.


Product complexity As systems have become more complex, the reliability requirements for suppliers of components have become more stringent. Higher levels of customer satisfaction Higher customers expectations are getting spawned by increasing competition. Relatively simpler approaches to quality viz. product inspection for quality control and incorporation of internal cost of poor quality into the selling price, might not work for todays complex market environment.

Awareness


An organization will not begin TQM until it is aware that quality of product/service has to be improved Awareness comes
When organization starts losing market share Managers begin to understand quality and productivity go hand in hand It is thrust upon by the customer Management understand that it is a better way to do business

Automation alone cannot increase profit/growth, if the quality of product is poor

Awareness contd.
  

Quality and productivity are not mutually exclusive, rather they are related Increase in quality level lead to increase in productivity TQM cannot happen overnight. It takes a long time and at least 4 to 5 years is required to establish it in an organization During those time, short term profits and results should not be focused rather a long term planning and constancy of purpose should be maintained.

Old vs. TQM Approach

Quality Element Definition Priorities Decisions Emphasis Errors Responsibility Problem Solving Procurement Managers Role Previous Approach Product-oriented 2nd to service and cost Short-term Detection Operations Quality control Managers Price Plan, assign, control, and enforce TQM Approach Customer-oriented Equals of service and cost Long-term Prevention System Everyone Teams Life-cycle costs,partnership Delegate, coach, facilitate and mentor

Gurus of Quality


Walter Shewhart
Father of Statistical Process Control (SPC), 1931 Worked at Western Electric and Bell Laboratories Limited Developed the control chart theory based on the concept of special causes and common causes

Deming
He spread the concept of SPC and quality to the leading CEOs of Japan, 1950 He provided the foundation for Japans quality miracle He developed the 14 points for quality improvement, which formed the basis of ISO 9000, QS 9000 and other quality systems

Gurus of Quality contd.



Juran
Worked at Western Electric and learnt about the Shewharts techniques Stressed the necessity of all management at all levels to be committed to quality Proposed the Quality Trilogy, 1951 & 1954

Feigenbaum
Noted that quality begins with identifying the customer needs and ends with a product/service meeting their needs Proposed the concept of (and a book on) Total Quality Control, 1951

Gurus of Quality contd.



Ishikawa
Studied under Deming, Juran and Feigenbaum, 1960s He helped the Japanese to adopt the quality control concepts that were developed by the US He developed the cause and effect diagram He proposed the concept of quality circle team

Crosby
He noted that Quality is free and his book by the same title is translated into 15 languages, 1979; Stress on the importance of doing it right first time and explained that it is less expensive than the cost of detecting and correcting mistakes Proposed the 4 absolutes of quality management, in another book on Quality Without Tears, 1984

Gurus of Quality contd.



Taguchi
Developed the concept of loss function, which combined the concept of cost, target and variation He noted that quality is all about reducing the variation He proposed a method for the same based on the concept of design of experiments, and more important the concept of signal-to-noise-ratio

History of quality management

To know the future, know the past!


Before Industrial Revolution, skilled craftsmen served both as manufacturers and inspectors, building quality into their products through their considerable pride in their workmanship. Industrial Revolution changed this basic concept to interchangeable parts. Likes of Thomas Jefferson and F. W. Taylor (scientific management fame) emphasized on production efficiency and decomposed jobs into smaller work tasks. Holistic nature of manufacturing rejected!

History contd.


Statistical approaches to quality control started at Western Electric with the separation of inspection division. Pioneers like Walter Shewhart, George Edwards, W. Edwards Deming and Joseph M. Juran were all employees of Western Electric. After World War II, under General MacArthur's Japan rebuilding plan, Deming and Juran went to Japan. Japanese were badly defeated in World War II. Their industrial and financial bases were in chaos. Japan had no natural resource and limited source of food for their people.

History contd.


The quality movement began in Japan in 1946 with the U.S. Occupation Force's mission to revive and restructure Japan's communications equipment industry. Dr. Deming was invited by the Union of Japanese Scientists and Engineers to Japan in 1947. In 1954, Dr. Joseph Juran of the United States raised the level of quality management from the factory to the total organization in Japan. Deming and Juran introduced statistical quality control theory to Japanese industry. The difference between approaches to quality in USA and Japan: Deming and Juran were able to convince the top managers the importance of quality.

History contd.


Next 20 odd years, when top managers in USA focused on marketing, production quantity and financial performance, Japanese managers improved quality at an unprecedented rate. Market started preferring Japanese products and American companies suffered immensely. America woke up to the quality revolution in early 1980s. Ford Motor Company consulted Dr. Deming to help transform its operations. (By then, 80-year-old Deming was virtually unknown in USA. Whereas Japanese government had instituted The Deming Prize for Quality in 1950.)

History contd.


Managers started to realize that quality of management is more important than management of quality. Birth of the term Total Quality Management (TQM). TQM Integration of quality principles into organizations management systems. Early 1990s: Quality management principles started finding their way in service industry. FedEx, The Ritz-Carton Hotel Company were the quality leaders. TQM recognized worldwide: Countries like Korea, India, Spain and Brazil are mounting efforts to increase quality awareness.

Obstacles to TQM implementation




What are the major obstacles to TQM.Explain?

Lack of management commitment Any organization change programme requires management time and resources and it should be provided by the top management The purpose of the change should be communicated to every employees Every in great pressure, the quality and customer satisfaction should be perceive

Obstacles contd.


Inability to change organization culture

Changing the organization culture is very difficult Individual must change- but they are accustomed to one particular way of performing and prefers that way only Management must understand the following
 

People change only when they want to meet their own needs For change to be accepted, people should be moved from a state of fear to trust

Individuals cannot change easily and naturally, the organization also change its culture easily Lack of effective communication and emphasis on short term results also prevent cultural change

Obstacles contd.


Improper planning
All constituents of the organization should be involved in the planning 2 way communication of idea is required between all personnel

Obstacles contd.


Lack of continuous training and education

Training and education is an ongoing process Needs must be identified and plan must be made for achieving that need Senior management must conduct the training to explain about the principles of TQM Lack of training on group discussions and communication, quality improvement skills, problems solving skills etc. affect implementation

Obstacles contd.


Incompatible organization structure

Differences between departments and individuals can create problems Use of multi-functional team is required to resolve this problem Individuals who do not embrace the new philosophy should be made to leave the organization

Obstacles contd.


Ineffective measurement techniques and lack of access to data and results

Key characteristics of organization should be measured for effective decisions It is required to improve the process and also to check the effectives of the improvement ideas

Obstacles contd.


Paying inadequate attention to internal and external customers

Organization needs to understand the changing needs of customers Effective feedback mechanism is necessary

Obstacles contd.


Inadequate use of empowerment and teams

Team needs to have proper training and a facilitator Teams recommendations should be followed Individuals should be empowered to make decisions

Failure to continually improve

Lack of continuous improvement of product/services will even make the leader to be behind the competition

Benefits of TQM
  

Improved profitability and market share Customer satisfaction Product quality

Less waste and rework Higher profits

 

Improved communication Employee involvement

Training Teamwork Employee satisfaction

Benefits contd.
Studies show that quality programs such as TQM can:
   

Boost company revenues by as much as 40%. Decrease productivity costs by 20 to 50%. Cut production time by as much as 70%. Build strong customer loyalty.

Summing Up
  

   

The approach: management-led The scope: organization-wide The Scale: everyone is responsible for quality The philosophy: prevention not detection The standard: right first time The control: cost of quality The theme: continuous improvement

Thank You