BAHRIA UNIVERSITY ISLAMABAD Department of Management Sciences Subject: Credit Hours: Course Outlines Total Quality Management 3 hours per week MODULE I
MODULE II
THE TQM TOOLS AND TECHNIQUES The TQM Transformation Strategy. Introduction, Transformation Strategy of TQM Philosophy, The Difficulties in Transformation, TQM Tools and Techniques. The TQM Tools and Technique. Introduction, The Role of TQM Tools and Techniques in Quality Management, The Power of Quality Tools and Techniques, Achievements through Application of TQM Tools and Techniques, Selecting the Right Quality Tools and Techniques for the Right Purpose, Classification and Functions of TQM Tools and Techniques, Forms of TQM Tools and Techniques, Types of TQM Tools and Techniques, The Impact of TQM Tools and Techniques on Processes, Affiliation of the TQM Tools and Techniques, Discussion of a few TQM Tools and Techniques, Selection and Implementation of TQM Tools and Techniques, Six - Sigma Quality. Introduction, Design Specification, Six - Sigma Quality, Six - Sigma (Metrics) in Practices, Six - Sigma (Metrics) versus Six - Sigma (Technique), Implementation Methodology of 6-Sigma Technique, Process Capability, Process Capability Indices, Quality Improvement Mechanism, The Vital Role of Technology, The Status of Six Sigma Technique and Technology in the Country.
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MODULE III QUALITY MANAGEMENT SYSTEMS The Development of a Quality Management System. Introduction, The Quality Evolution, The First Stage Inspection, The Second Stage Quality Control (QC), The Third Stage Quality Assurance System (QAS), The Fourth Stage Quality
MODULE IV THE TQM AWARD MODELS The Fundamentals of a TQM Assessment Award Model. Introduction, Major Attributes of a TQM Assessment Award Model, Validation of a TQM Model, The Validation Process, A Complete TQM Philosophy Model. The TQM Award Models. Introduction, Types of TQM Models, Conceptual Models, Implementation Models, Assessment Models, The Existing TQM Assessment Models, Criteria Set of Different National Quality Awards, The
Recommended Books 1. Nawar Khan (1999). Total Quality Management Concepts, Tools, Systems and Awards 2. A. C. Parkinson, First year Engineering Drawing
3. Inspection and Gauging, Clifford W Kennedy and Donald E Andrews, New Yark 4. Vincent, K.O. and Ross, E. J. (1995). Principle of Total Quality, London Kogan Pages 5. Evans, James R. and Lindsay, William M. (1999). The Management and Control of Quality. 4th edition New York West Publishing Company. Besterfiled, D.H., Michna, C.B., Besterfield, G.H. and Sacre, B.M (1999). Total Quality Management, Pearson Education,Inc Singapore Grading: a.
b. c. d.
Quizzes / Homework
Mid Term Exam Term Project Final Exam
10%
30% 10% 50%
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T=TOTALITY:-
This means participation, involvement and commitment of all personnel directly responsible for quality of a process at a primary level, or indirectly supporting that quality function at secondary or tertiary level. Every one, at all levels of hierarchy from top (Chief Executive Officer CEO or General Manager GM or President of an organization) to the bottom level (shop floor workers and supervisors) of an organization (an enterprise, a company, or an institution etc), in all functions of the business (like human resource management, marketing, financing, legal, sale, purchase and production etc), in all the production or provision processes and in all departments and divisions of an enterprise to contribute to the quality cause of products or services, its management and continuous improvements in all its forms and context. 7
The second alphabet Q stands for Quality. This big Q quality concept differs from the small q quality. The misconception of q quality persists in the past in which quality was considered as the major responsibility of producers (operators), inspectors and of their respective department. Other functions (departments) were considered peripheral or secondary and mostly were not held responsible for the poor quality and high cost of the products produced or services provided. Now the big Q quality concept holds every one responsible, at all levels, in all processes, in all departments and in all functions of a business. They must contribute to the quality of a product or service either in a direct or indirect role but if not, then their job descriptions need review and revision. If still their role is not justified, then they are not required in that department or division or even in the organization. No one is exempted from the responsibility to contribute towards 8 quality at their respective level and scope.
As such, the big Q quality concepts also brought a new definition to quality as Total Quality instead of partial quality as existed in the past, like manufacturing based quality definition, user based quality, fitment based quality and customers satisfaction based quality definition etc (Evan & Lindsay, 2005). Quality can now be defined in a generic term of totality as totality of characteristics of an entity that bear on its ability to satisfy the stated and implied needs of customers. An entity can be an activity, a process, a product, or / an organization.
Quality Characteristics / Parameters / Variables of any Entity (Product / Service) Followings are the generic characteristics / parameters of any entity as applicable:
Specification, Dimension, Strength, Functionality, Survivability, Sustainability, Time, Precision, Cost, Performance, Utility, Intended deliverable, Aesthetic Appearance, Acceptability, Cultural, Impact, Marketability, Stability, Usability, Social impact, Influence, Knowledge Base Integration with existing service, Color, Shape, Durability, Flexibility, Life cycle, Weight, Size, Interactive, Easily accessible, Consistent,
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Cannibalization, Long lasting, Cost effective, Harmless, Easily manageable, Environmental protocols, Meet ethical values, Address religious issues, Address cultural issues, Local standards, International standards, Reliability, Material Taste, Smell, Fitness, Traceability, Availability, Re-usability, Documentation
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Customer Satisfaction User Friendly Intime response Packing Consistency Maintainability Specification Efficiency Portability Soundless Conformance Width Depth Length Height Security Safety Speed Serviceability Strength Accuracy Simplicity Operateability Power consumption Measurability Transformability Presentation Back up supportability Light weight Economical
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Water proof, Shelf life, Preciseability, Breakability, Manageability, Competitiveness, Under warranty, Pressure, sustainability, Good heat ability, Less carbon Dioxide, Non combustible, Purity, Supportable, Motivational, Robust /Toughness, Firmness, Comfortable, Long lasting, Having resale value
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DESIGN SPECIFICATIONS
PARAMETERS / variables. Already discussed in the preceding slide. LIMITS. These are the two extreme permissible value limits for
parameters. The upper limit for a parameter is the largest value permitted for that particular variable and the lower limit for a parameter is the smallest value permitted for that parameter. The limits of value for a parameter are derived from the combination of the design values with the limits of tolerance. TOLERANCE. The tolerance on a parameter is the margin of error
It is the total permitted variation in the actual value of that parameter. The
difference between the two limits of value (Upper Tolerance Limit, UTL and Lower Tolerance Limit, LTL) for a parameter gives the tolerance. The greater the tolerances that can be allowed, the more cheaply can the work
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be produced.
ACCURACY.
between an observed value and an accepted reference value. The lack of accuracy reflects a systematic bias in the measurement such as a gauge
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The third alphabet M stands for Management; which represents all actions of the overall system that determine the quality mission, policy, objectives and responsibilities and implement them by incorporating quality planning, strategy, control, assurance and improvements within the quality system. BASIC MANAGERIAL FUNCTIONS PLANNING ORGANIZING STAFFING LEADING CONTROLLING
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Hence, the TQM Philosophy is considered as a management approach of an organization focused on quality, embedded in its business strategy, based on the participation, involvement and commitment of all its members at all levels of hierarchy and aimed at long term success through customer satisfaction and gives benefits to all members of the organization, stakeholders and to the society at large. In its simplest form, TQM is a Continuous Quality Improvement (CQI) in all its forms and manifestations.
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The TQM philosophy was considered by some quality experts and gurus as the business quality miracle of the 20th century because of its engulfing and long term effects on all functions of an organization with particular reference to the business position in a fiercer economic competitive era. They are also of the opinion that such a mega phenomenon of the 20th century can not truly be represented by this three alphabet acronym of TQM; however, they have not yet suggested or given hint for any substitute title.
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Methods
Measurement Instruments
Tools
Machines Environment
VARIATIONS
Variation occurs at random, but combined effect can be predicted statistically Common causes of variation factors present as natural parts of process Result from design of system
Special causes of variation (assignable causes) Arise from external sources not inherent in the process
Bad material batch from supplier Poorly trained operators Excessive tool wear Improper calibration of equipment
System governed only by common causes is stable Understanding of differences between common & special causes Less variation benefits: Producers (higher productivity due to less inspection, scrap & rework) Customers (products with similar quality characteristics)
JUDGEMENTAL CRITERIA Quality = superiority or excellence Goodness of a product You just know it when you see it little practical value to managers No means through which quality can be measured for decision making
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PRODUCT-BASED CRITERIA
Quality is a function of a specific, measurable variable Higher amount of product characteristics = higher quality Quality is mistakenly related to price Higher the price, higher the quality (Not necessarily true)
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USER-BASED CRITERIA
Quality is determined by what customer wants Quality = Fitness for intended use How well the product:
Performs its intended purpose Meets consumers needs
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VALUE-BASED CRITERIA
Quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost.
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VALUE-BASED CRITERIA
Purchase decision involves trading off the quality against the price Because many of the attributes of quality are subjective assessments, therefore most of these definitions are subjective Unlike manufacturing and productbased approaches
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VALUE-BASED CRITERIA
Offering greater satisfaction at comparable price Procter & Gamble brought in VALUE PRICING Consumer brand loyalty More consistent sales Improvement of product characteristics Internal efficiencies
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Quality = Conformance to specifications Quality is about manufacturing a product that people can depend on every time they reach for it Achieved at Coca-Cola through rigorous quality & packaging standards
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1. 2. 3. 4. 5. 6. 7. 8.
Performance a products primary operating characteristics. Example: A cars acceleration, braking distance, steering and handling
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Features the bells and whistles of a product. A car may have power options, a tape or CD deck, antilock brakes, and reclining seats
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Reliability the probability of a products surviving over a specified period of time under stated conditions of use. A cars ability to start on cold days and frequency of failures are reliability factors
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Conformance the degree to which physical and performance characteristics of a product match pre-established standards. cars fit/finish, freedom from noises can reflect this.
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Durability the amount of use one gets from a product before it physically deteriorates or until replacement is preferable. For car - corrosion resistance & long wear of upholstery fabric
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Serviceability speed, courtesy, competence of repair work. auto owner -access to spare parts.
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Aesthetics how a product looks, feels, sounds, tastes, or smells. cars color, instrument panel design and feel of road make aesthetically pleasing
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Perceived quality Subjective assessment of quality resulting from image, advertising, or brand names. car, - shaped by magazine reviewsmanufacturers brochures
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QUALITY IN SERVICES
Service is a social act which takes place in direct contact between the customer and representatives of the service company Service quality includes quality of: Core services Facilitating services Improvement in customer services Cost of acquiring new customers is higher than cost of retaining customers
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customer research
Time Timeliness Completeness Courtesy Consistency Accessibility & convenience Accuracy Responsiveness
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REQUIREMENTS OF SERVICES
Each customer has different requirements Higher degree of customization needed Intangible output Services are produced & consumed simultaneously Quality has to be trained & built into the service Customers are involved in the service process Labor intensive Human interaction necessary Large volumes of customers have to be handled 46
ROLE OF EMPLOYEES
Quality of human interaction used as an evaluating tool by customers Higher the employee job satisfaction, higher the customer satisfaction If we take care of our employees, they will take care of our customers Front-line employees have direct contact with customers Should be given rewards, higher pays, training & authority 48
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CROSBY CONCEPTS
1. MANAGEMENT COMMITMENT. TOP MANAGEMENT MUST BECOME CONVINCED OF THE NEED FOR QUALITY AND MUST CLEARLY COMMUNICATE THIS TO THE ENTIRE COMPANY BY WRITTEN POLICY, STATING THAT EACH PERSON IS EXPECTED TO PERFORM ACCORDING TO THE REQUIREMENT OR CAUSE THE REQUIREMENT TO BE OFFICIALLY CHANGED TO WHAT THE COMPANY AND THE CUSTOMERS REALLY NEED. 2. QUALITY IMPROVEMENT TEAM. FORM A TEAM COMPOSED OF
DEPARTMENT HEADS TO OVERSEE IMPROVEMENTS IN THEIR DEPARTMENTS AND IN THE COMPANY AS A WHOLE.
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3. QUALITY MEASUREMENT.
ESTABLISH
MEASUREMENTS
APPROPRIATE TO EVERY ACTIVITY IN ORDER TO IDENTIFY AREAS IN NEED OF IMPROVEMENT. 4. COST OF QUALITY. ESTIMATE THE COSTS OF QUALITY IN
ORDER TO IDENTIFY AREAS WHERE IMPROVEMENTS WOULD BE PROFITABLE. 5. QUALITY AWARENESS. AMONG EMPLOYEES. RAISE THEY QUALITY AWARENESS THE
MUST
UNDERSTAND
IMPORTANCE OF PRODUCT CONFORMANCE AND THE COSTS OF NON CONFORMANCE. 6. CORRECTIVE ACTION. RESULT OF STEPS 3 AND 4.
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11.
CHAIRPERSONS, REGULARLY TO
SHOULD PROBLEMS,
IDEAS.
14. DO IT ALL OVER AGAIN REPEAT STEPS 1 TO 13 IN ORDER TO EMPHASIZE THE NEVER ENDING PROCESS OF QUALITY IMPROVEMENT.
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AV FEIGENBAUM PHILOSOPHY
FEIGENBAUM IS BEST KNOWN FOR COINING THE PHRASE TOTAL QUALITY CONTROL IN THE UNITED STATES FEIGENBAUMS PHILOSOPHY IS SUMMARIZED IN THIS THREE STEPS TO QUALITY AS FOLLOWS.
1. QUALITY LEADERSHIP. A CONTINUOUS MANAGEMENT
EMPHASIS IS GROUNDED ON SOUND PLANNING RATHER REACTION TO FAILURES MANAGEMENT MUST MAINTAIN A CONSTANT FOCUS AND LEAD THE QUALITY EFFORT.
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3. ORG COMMITMENT.
CONTINUOUS TRAINING AND MOTIVATION OF THE ENTIRE
SOME KEY ELEMENTS OF DR. KAORU ISHIKAWA PHILOSOPHY QUALITY BEGINS WITH EDUCATION AND ENDS WITH EDUCATION. THE FIRST STEP IN QUALITY IS TO KNOW THE REQUIREMENTS OF
CUSTOMERS.
THE IDEAL STATE OF QUALITY CONTROL OCCURS WHEN
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MARKETING IS THE ENTRANCE AND EXIT OF QUALITY. TOP MANAGEMENT MUST NOT SHOW ANGER WHEN FACTS ARE PRESENTED BY SUBORDINATES.
NINETY-FIVE PERCENT OF PROBLEMS IN A COMPANY CAN BE SOLVED WITH SIMPLE TOOLS FOR ANALYSIS AND PROBLEM SOLVING.
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1
1.1 1.1.1 1.1.2 1.1.3 1.2 1.3 1.4
1.5
Communication
63
2
2.1 2.2 3 3.1 3.2 4 4.1 4.2
5
5.1 5.2 5.3 5.4
Quality Assurance
Quality System Management Data
Functional
5.5
5.6
Processes
Standardization
5.7
5.8
5.8.1
Measurement
5.10.4
Customers
66
Resources Management
6.1
Human Resource
6.1.1
6.1.2 6.1.3
Human Management
Education Training
Resource
6.1.3.1
6.1.3.2 6.1.4 6.1.5
Quality Training
Job Training Involvement Participation
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Team Work Empowerment Reward and Recognition Motivation Financial Resources Material Resources Technology and Equipment
6.3.2
Quality Culture
7.1
Quality Awareness
7.2
Quality
8.1
8.2
Environment
69
Continuous Improvement Review Improvement Activities Creativity, Innovation and Design Satisfaction of the Stakeholders Customers Employees Management) Society Shareholders Government
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(Including
TQM PHILOSOPHY
MINDSETS APPROACHES MANAGEMENT LAWS CONCEPTS
THEORY
PRINCIPLES RULES
THEORIES OPERATIONALIZATION
TQM PHILOSOPHY
PEERS
GURUS
SCHOLARS
PROPONENTS
TRANSFORMATION
TOOLS
TECHNIQUES
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S. No
1. 2. Management Policies and their Deployment New Product Development, Work Process Innovation
3.
4. 5. 6.
20
10 15 15 100
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2. New product development Work process Innovation (20) 5. Information analysis and utilization of IT (15)
THE DP FRAMEWORK
74
(12%)
(8.5%) (8.5%) (9%) (8.5%) (8.5%) (45%)
75
76
MBNQA FRAMEWORK
77
78
79
5. PROCESSES
6. CUSTOMER 7. PEOPLE RESULTS
(14%)
(20%) (9%) (6%) RESULTS (15%)
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RESULTS
81
S No 1 2 3 4 5 6 7
Main Factors Top Management Leadership and Management of Quality Use of Quality Data and Information Human Resource Management Customer Focus and Satisfaction Quality Assurance of External Suppliers Process Management Business Results
Weighta ge (%) 17 10 15 10 10 10 28
Total
100
1000
82
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9. CONTINUOUS IMPROVEMENT
10. SATISFACTION OF THE STAKEHOLDERS
(7.5%)
(27%)
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SEQUENCE
TQM FACTORS
SCORE %
EQUIVALENT MARKS
1.
2. 3. 4. 5.
13.5
4.3 3.2 2.4 21
135
43 32 24 210
6.
7. 8. 9. 10.
Resources Management
Quality Culture Protection Continuous Improvement Satisfaction of the Stakeholders TOTAL SCORE
13.3
5 2.8 7.5 27 100
133
50 28 75 270 1000
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QUALITY ASSURANCE
POLICY
CBP
PLANNING
CONTINUOUS IMPROVEMENT
RESOURCES MANAGEMENT
1
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DETAILED SCORES OF THE TQM UQA MODEL CRITERIA SET (FACTORS AND ELEMENTS)
S. No TQM FACTORS TQM ELEMENTS SCORE % EQUIVALENT MARKS
1
1.1 1.1.1 1.1.2 1.1.3 1.2 1.3 1.4
13.5
7.3 3.6 1.2 2.5 2 1 1.6
135
73 36 12 25 20 10 16
1.5
Communication
1.6
16
87
2
2.1 2.2 3 3.1 3.2 4 4.1 4.2
4.3
2.5 1.8 3.2 1.8 1.4 2.4 1.5 0.9
43
25 18 32 18 14 24 15 9
88
5
5.1 5.2 5.3 5.4
Quality Assurance
Quality System Management Data
21
2.9 1.3 2 Functional 0.9
210
29 13 20 9
5.5
5.6
Processes
Standardization
1.7
1
17
10
5.7
5.8
2..2
4.5
22
45
89
5.8.1
Measurement
2.4
24
21 15 29 5 14 5
5.10.4
Customers
0.5
90
Resources Management
13.3
133
6.1
Human Resource
9. 3
93
6.1.1
6.1.2 6.1.3
Human Management
Education Training
Resource
2
1 1.5
20
10 15
6.1.3.1
6.1.3.2 6.1.4 6.1.5
Quality Training
Job Training Involvement Participation
0.9
0.6 0.5 0.5
9
6 5 5
91
Team Work Empowerment Reward and Recognition Motivation Financial Resources Material Resources Technology and Equipment
5 11 10 12 20 20 13
6.3.2
0.7
7
92
Quality Culture
50
7.1
Quality Awareness
2.9
29
7.2
Quality
2.1
21
2.8
28
8.1
1.8
18
8.2
Environment
10
93
Continuous Improvement Review Improvement Activities Creativity, Innovation and Design Satisfaction of the Stakeholders Customers Employees Management) Society Shareholders Government TOTAL SCORE (Including
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QUALITY CULTURE
QUALITY ASSURANCE ROLE RESOURCES MANAGEMENT
CONTINUOUS IMPROVEMENT
PLANNING
POLICY
PROTECTION
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2.http://www.efqm.org
3.http://www.quality.nist.gov
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