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2/2/2019 Chapter Two Total Quality Management - ppt download

Chapter Two Total Quality Management

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1 Chapter Two Total Quality Management

2 What is Quality?
A quality (from a latin word qualitas) is an attribute or a property
Attributes are ascribable by a subject, whereas properties are possessible.
In contemporary philosophy, the idea of qualities and especially how to distinguish certain kinds
of qualities from one another remains controversial.

3 In popular use, the word quality suggests a degree of excellence-a Cartier watch, a Rolls- Royce
car, and a Christian Dior dress: something expensive and conforming to a high, perhaps luxurious,
speci cation.
However, this is too imprecise and limited idea of quality to be of any use in determining company
policy.
3

4 Di erent scholars give di erent interpretations to the term quality:

For engineers it is conformance to speci cations,
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For users it is tness for use,

For marketing it is the degree of excellence at an acceptable price that will in uence the market
share.
For customer service a quality product is that with less customer complaint
4

5 Quality is tness for use - Juran

Quality is conformance for requirements - Crosby
Quality means best for certain customer conditions. These conditions are: the actual use and the selling price of the product -
Feigenbaum
Quality is de ned only in terms of the agent - Deming
Quality is providing our customers with products and services that consistently meet their needs and expectations - Boeing Company
Quality is doing the right thing right the rst time, always striving for improvement, and always satisfying the customers -U.S.A.
Department of Defense

6 Exceeding Customers Expectation

A comprehensive de nition of quality is:
Exceeding Customers Expectation
Thus the closer this conformation indicates the higher the degree of quality.
6

7 What is Management?

8 De nition of management
Management is the art of getting things done through people
Management is the process of getting activities completed e ciently and e ectively with and through other people and resources

9 What is this little boy doing?

Can you see where he is going?
Do you know what could happen if he falls in the water?
Can you really see what the consequences are going to be?
Have you got the big picture in mind?
With anything that one does in life you start with the end in mind. You decide what you want to achieve and then you decide how you will
work towards achieving it.
This is what management is.

10 So That You and Your Followers Can Reach Your Vision

Put Stepping Stones in Place
i.e. Your role is to chart the path and put stepping stones in place so that you and your followers could reach the vision of the
organization. Engage your people to deliver results.
Chart the Path

11 In general "management" identi es a special group of people whose job is to direct the e ort and activities of other people toward
common objectives.
Simply, management gets things done through other people by planning, coordinating and directing the activities of an organization
The decisions and judgments made are normally oriented to the needs of the organization

12 The art and science of making things happen by people who do not have interest and make them enjoy it.

13 Total Quality Management (TQM)

TQM is the application of quality principles to all facets of an organization.
TQM is composed of the following three words to have a combined e ect.
Total -made up of the whole
Quality –Customer satisfaction
Management -science and art or manner of planning, controlling, directing

14 TQM (cont’d)

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A more comprehensive de nition of TQM is given by another of the authors on classical quality control, A.V. Feigenbaum, in his material
‘Total Quality Control’.
Here, quality is described as “an e ective system for integrating quality improvement e orts of the various groups of the organization, so
as to provide products and service at levels which allow customer satisfaction.”

15 Key concepts of TQM The key ideas in the de nition of TQM are:
Customer Focus
Internal alignment
External alignment
Total Involvement
Continuous Improvement
Leadership Commitment

16 The Need for Quality Control

If a defective product enters in the market, it will cause:
customer dissatisfaction,
unnecessary expenditure for warranty, and
poor product salability.
Having a quality product increases market share, resulting in better pro ts.
16

17 Total Quality Management (TQM)

Gurus

18 W.A.Shewhart ( )
Shewhart's most important contribution to both statistics and industry was the development of the statistical control of quality
The limitation was it did not nd the magnitude of change in the process, and it was unable to quickly nd large changes within small
samples

19

20 W. Edwards Deming (1900–1993)

W. E. Deming, who was a statistician during 1940s, is regarded as the father of the TQM revolution.
When he was once asked to summarize his philosophy he replied “If I have to reduce my message to management to just few words, I
would say, it all had to do with reducing variation”.

21 W.Edwards Deming (1900–1993)

Deming argued that higher quality leads to higher productivity, which, in turn, leads to long-term competitive strength
Deming noted that workers are responsible for 10 to 20 percent of the quality problems in a factory, and that the remaining 80 to 90
percent is under management's control.

22 Deming's System of Profound Knowledge

Theory of Optimization
Theory of Variation
Theory of Knowledge
Theory of Psychology.

23 The Deming Cycle

24 Deming (cont’d)
Deming emphasized that random or common causes of variations are inherent in the process which managers themselves have
designed and established them in the system unknowingly
He estimates 94% of the problems arise due to system de ciencies rather than the fault of operators of the system or process.

25 Deming (cont’d) Deming’s fourteen points are:

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Create consistency of purpose toward improvement of product and service, with the aim to become competitive and stay in business
and provide jobs.
Adopt the new philosophy of the need for higher quality.
Cease dependence on mass inspection to achieve quality.

26 End the practice of awarding business on the basis of price tag alone.
Improve constantly and forever
Institute modern methods of training and education on the job, including management.
Adopt and institute leadership.
Drive out fear, so that every one may work e ectively for the economy.

27 9. Break down barriers between sta areas.

10. Eliminate slogans and exhortations asking the work force for unrealistic targets.
11. Eliminate numerical quotas for the work force and numerical goals for management.
12. Remove barriers that rob people of pride of workmanship.
13. Institute a vigorous program of education and self-improvement for everyone.
14. Put everyone in the company to work to accomplish the transformation.

28 Deming suggests that western management su ers from the following deadly diseases.
Lack of constancy of purpose
Emphasis on short-term pro ts
Evaluation of performance on annual review
Mobility of Top management
Running a company on gure alone with no consideration for unknown gures
Excessive medical costs, and
Excessive warranty cost fuelled by lawyers.

29 Some of the obstacles for e ective quality management, according to him, are
Our problems are di erent – management thinks
Reliance on quality control departments
Quality by inspection
Blaming the workforce
Inadequate testing of prototypes

30 Joseph Juran
Quality management according to Juran consisted of three basic processes (Juran Trilogy):
Quality Planning,
Quality Control, and
Quality Improvement

31 Juran and the Cost of Quality

There are two types of costs: these are:
Unavoidable Costs: preventing defects (inspection, sampling, sorting, QC) and
Avoidable Costs: defects and product failures
(scrapped materials, labour for re-work, complaint processing, losses from unhappy customers so on)

32

33 Joseph Juran Juran has two de nitions for quality:

“Freedom from de ciencies” and
“Fitness for use”
which is a utility value concept, which varies from one customer to another

34 Joseph Juran

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His concept of “ tness for use” re ects meeting customer needs and is based on the following ve quality characteristics, as outlined by
him:
Technological (strength)
Psychological (beauty)
Time-oriented (reliability)
Contractual (guarantee)
Ethical (sales sta courtesy)

35 Joseph Juran
Juran puts his thinking about managing quality in a trilogy of management processes:
Quality planning,
Quality control, and
Quality improvement

36 Joseph Juran
Quality planning has the customer at the core to develop a product or service feature, which responds to the customer needs, by
developing processes that are capable of producing these features

37 Joseph Juran
The Quality control in the managerial process is an essential process for assisting the operating forces to achieve product or process
goals
Like any control activity, quality control process evaluates actual operating performance, compares it to goals and act on di erence.

38 Joseph Juran
The most signi cant contribution of Juran to the TQM movement is the Quality Improvement Process.
The search for never-ending improvement is what it is all about, not just only in the quality of product or service provided but also in the
process employed.

39 Joseph Juran
Juran emphasized that the improvement of product or services and processes applies to all customers, internal and external.
He was the rst to recognize that customers are both internal and external

40 Joseph Juran The delimitation he gave for these customers is

outlined as follows.
Internal Customer: Are those departments or persons who supply products to each other.
External Customer: These are impacted by the product but are not members of the company (or other institution) which produce the
product.

41 Joseph Juran
In order to set about improving quality, Juran formulated ten steps which companies can follow:
Build awareness of the need and opportunity for improvement
Set goals for improvement

42 Joseph Juran Organize to reach goals Provide training

Carry out projects to solve problems
Report progress
Give recognition
Communicate results
Keep scores achieved on quality improvement
Maintain momentum by making annual Improvement

43 Joseph Juran
Juran was also the rst to point out that the Pareto Principle could be used to quality improvements
The basis is to distinguish the important vital few from the trivial many

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44 Philip Crosby “Conformance to requirements”

Before the implementation of the program, Crosby outlines some quality basics that should be emphasized to management

45 Philip Crosby
Crosby wrote more than thirteen books in the eld of quality management and is currently a leader in the area of quality management.
He is the founder of Philip Crosby Associates II Inc., which engages itself in consultancy and training service

46 “The four absolutes of quality”

Philip Crosby
“The four absolutes of quality”
Quality is de ned as conformance to requirements, not as 'goodness' or 'elegance'.
The system for causing quality is prevention, not appraisal.
The performance standard must be Zero Defects, not "that's close enough".
The measurement of quality is the Price of Nonconformance, not indices.

47 Philip Crosby
Crosby has forwarded a fourteen-point plan for quality improvements implementation issues
Management commitment
The quality improvement team
Quality measurement
Cost of quality
Quality awareness

48 Philip Crosby Corrective action Zero defects planning

Supervisor training
Zero Defects day
Goal Setting
Error cause removal
Recognition
Quality councils
Do the quality improvements process over again

49 Philip Crosby
Crosby attributes 80% quality problems to management and hence the cure for these problems lies with management leadership
He stresses that the essential ingredient is management integrity and formal education and training so as to build an implementation
process for quality improvement

50 Philip Crosby
Crosby’s other views if change in organizations is to occur are:
People will take quality as seriously as management takes it, no more.
Integrity is unrelenting
The tools of quality, like SPC, are not designed to cause prevention throughout the organization.
Think about quality improvements in terms of quality per share.
Every individual in the company needs
continual education.

51 A. V. Feigenbaum
His major contribution to the subject was the cost of quality. It was his recommendation (in 1956) that quality costs should be
categorized and separately managed, as exempli ed in his PAF model.
He identi ed three major categories; prevention costs, appraisal costs, and failure costs.

52

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53 A. V. Feigenbaum Feigenbaum de ned total quality control as:

“An e ective system for integrating the quality development, quality maintenance and quality improvement e orts of the various groups
in an organization so as to enable production and service at the most economic levels which allow customer satisfaction”

54 A. V. Feigenbaum Feigenbaum originated the industrial cycle.

The cycle includes marketing, design, production, installation and service elements which are now considered essential elements in the
management of quality in an organization as well as in managing a quality management system such as ISO 9000

55 A. V. Feigenbaum
Feigenbaum also introduced the concept of hidden plant from the point of view that waste lowered the real potential capacity of a plant
because of rework.
The hidden plant will be utilized when actually doing things right rst time

56 David A.Garvain
Garvin contributed greatly in in uencing quality management theories.
Garvin has categorized his approaches into ve:
Transcendental approach
Product - based approach
User - based approach
Manufacturing- based approach
Value - based Approach

57 These are factors how a customer perceives

David A.Garvain
The other major contribution of Garvin is the ’Eight Dimensions of Quality’
Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics, And
Perceived Quality
These are factors how a customer perceives
quality

58 Kaoru Ishikawa
His contribution includes company-wide quality control and quality circle.
The Japanese type of TQC is that quality control should be every employee’s responsibility , meaning every one in the company, in all
divisions must study, practice and participate in quality control.

59 Kaoru Ishikawa 7 Basic Tools:

Developed Histograms, Pareto Charts, Cause and E ect Diagrams, Run Charts, Scatter Diagrams, Flow Charts, Control Charts
Developed quality circle

60 Kaoru Ishikawa
Ishikawa’s view is that TQC is a thought revolution in Management.
Many companies have transformed themselves after applying QC.

61 Kaoru Ishikawa
The manner in which companies were transformed may be classi ed in the following six categories, which they commonly share:
Quality rst: not short-term pro t rst.
Consumer orientation: Not producer orientation;
The next process is your customer (internal customer).

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62 Kaoru Ishikawa
Using facts and data to make presentations, utilization of statistical methods.
Respect for humanity as a management philosophy full participatory management.
Cross function management.

63 Kaoru Ishikawa Ishikawa summarizes his views of quality as follows:

QC is the responsibility of all workers and all divisions
Management should set out long-term pro ts and put quality rst and destroy sectionalism.
TQC is management with facts with a group activity and can’t be done by individuals i.e. it calls for teamwork.

64 Kaoru Ishikawa
TQC will not fail if all members cooperate, from the CEO down to line workers.
If TQC is implemented company-wide, it can contribute to the improvement of a company’s corporate health and character. TQC is
management based on respect for humanity.

65 Kaoru Ishikawa
Middle management will be frequently involved in TQC and criticized and should be prepared to.
Don’t confuse objective with the means, such as statistical quality control, to attain them.
QC circle activities are part of TQC.

66 What do you feel?

67 Genichi Taguchi Taguchi is a prize-winning Japanese statistician;

His major contribution is e ective quality of design.
His method focuses on determining the cost of not meeting the speci ed target value.

68 Genichi Taguchi
The basic elements of his ideas can be considered under four main headings:
Taguchi Loss Function
Robust Design of products, services and processes (O ine quality control)
Reduction in variation
Statistically planned experiments

69 Genichi Taguchi
Consequently, he developed the “loss function” given by the quadratic equation.
Where:
L = Loss in terms of money
K = Cost coe cient
x = Measured Value (Value of quality characteristics
t = Target value
“A business that misuses what it has will continue to misuse what it can get. The point is--cure the misuse.” - Ford and Crowther

70

71 Genichi Taguchi
Taguchi favors a more proactive quality practice of quality assurance through e ective design and development.
Taguchi suggests that the time and e ort spent in designing and planning will save much more e ort, time and money later during on-
line quality control.

72 Taguchi’s Robust Design

To achieve economical product quality design, Taguchi proposed three design phases:
System design: design engineers use their practical experience, along with scienti c and engineering principles, to create a viably
functional design.
Parameter design: The parameter design phase determines the optimal settings for the product or process parameters.

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Tolerance design: establish tolerances wide enough to reduce manufacturing costs, while at the same time assuring that the product or
process characteristics are within certain bounds

73 Masaaki Imai
Masaaki Imai (born 1930, in Tokyo) is a consultant in the eld of quality management.
Known as the “Lean Guru” and the father of Continuous Improvement (CI) Masaaki Imai has been a pioneer and leader in spreading the
Kaizen philosophy all over the world.

74 Masaaki Imai
Imai has brought together the management philosophies, theories and tools that have been popular in Japan over the years as a single
concept - kaizen
Kaizen means continuous process improvement involving everybody, signifying the constant and gradual improvement, no matter how
small, which should be taking place all the time, in every process.

75 TQM Quality, competitiveness and customers

The reputation of an organization is built by quality, reliability, delivery and price: Quality is the most important
Quality is meeting the customer requirements.
Reliability is the ability of the product or service to continue to meet the customer requirements over time without failure.
Organizations delights the customer by consistently meeting their requirements, and then achieve a reputation of ‘excellence’ and
customer loyalty.
Reputations for poor quality last for a long time, and good or bad reputations can become national or international.

76 TQM Understanding and building the quality chains

Throughout all organizations there are a series of internal suppliers and customers. These form the so-called ‘quality chains’, the core of
‘company-wide quality improvement’.
Measurement of capability is vital.
There are two distinct but interrelated aspects of quality, design and conformance to design.
Quality of design is a measure of how well the product or service is designed to achieve the agreed requirements.
Quality of conformance to design is the extent to which the product or service achieves the design.

77 TQM
Managing quality
‘Have we done the job correctly?’ should be replaced by ‘Are we capable of doing the job correctly?’ and ‘Do we continue to do the job
correctly?’.
Everything we do is a process, which is the transformation of a set of inputs into the desired outputs.
Inspection is not quality control. The latter is the employment of activities and techniques to achieve and maintain the quality of a
product, process or service.
Quality assurance is the prevention of quality problems through planned and systematic activities.

78 TQM Quality starts with understanding the needs

Marketing processes establish the true requirements which must be communicated properly throughout the organization
Excellent communications between customers and suppliers: organization must establish feedback systems
Appropriate research techniques should be used to understand the ‘market’ and keep close to customers
Quality in all functions
All members of an organization need to work together on organization-wide quality improvement.
Top management must really be committed.

79 New TQM Model The four Ps and three Cs of TQM –TQM model
Planning, People, Processes and Performance are key to delivering quality products and services to customers and generally improving
overall Performance
The three Cs of Culture, Communication, and Commitment provide the glue or ‘soft outcomes’ of the model which will take organizations
successfully into the twenty- rst century

80 New TQM Model

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81 Quality Function Deployment (House of Quality)

It originated in Japan in 1972 at Mitsubishi but it has been developed in numerous ways by Toyota and its suppliers
The ‘house of quality’ is the framework of the approach to design management known as Quality Function Deployment (QFD).
Quality function deployment (QFD) is a ‘system’ for designing a product or service, based on customer requirements, with the
participation of members of all functions of the organization

82 What is Quality Function Deployment?

Quality Function Deployment (QFD) is a way for accurately translating customer quality requirements into goods or services, which meet
the stated needs.
The technique uses a series of interconnected schematics, often referred to as the “House(s) of Quality”.
A House of Quality can be used to systematically codify customer requirements for quality at the highest level in the system, into the
technical and operational provisioning requirements of the supplier at the lower level in the system.

83 QFD
Quality Function Deployment (QFD): is a useful tool for translating the voice of the customer into speci c technical requirements
Quality function deployment is also useful in enhancing communication between di erent functions, such as marketing, operations, and
engineering.
QFD enables us to view the relationships among the variables involved in the design of a product, such as technical versus customer
requirements.

84

85 Quality Function Deployment

The activities included in QFD are:
Market research
Basic research
Innovation
Concept design
Prototype testing
Final-product or service testing
After-sales service and troubleshooting

86 Basic Outline for House of Quality

87 Sequence of Constructing a House of Quality

Identify customer attributes and their importance
Identify counterpart characteristics
Map the customer attributes to the counterpart characteristics
Undertake an evaluation of customer attributes requirements
Evaluate the counterpart characteristics of competitive products and create targets
Determine those counterpart characteristics for transfer

88 Question: Build a House of Quality for production of a kettle

Sub Section
Stage
Input
Output
1
Product Planning
Customer Requirements
Design Requirements
2
Parts Design
Part Characteristics
3
Process Planning
Manufacturing Operations

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4
Production Planning
Manufacturing Operation
Production Requirements
Kettle boils quickly
< 1min
< 1 min
Volume/ power ratio
Volume/ power ratio
Pressing
Pressing machine, logistics, etc
Pressing

89 House of Quality for production of a kettle

90 Downstream Transfer of Counterpart Characteristics

91 QFD for Students Backpack

92 What are the bene ts of using QFD?

It focuses design of new products and services based on customer requirements (Customer focused).
It analyses the performance of the company’s products against those of its principal competitors for key customer requirements
(Benchmarking).
It reduces the number of post-release design changes, by ensuring focused e ort is put into the planning phase.
It promotes teamwork, and break down barriers between departments by involving marketing, engineering and manufacturing from the
outset of each project.

93 Continuous Improvement
Numbers and information will form the basis for understanding, decisions, and actions in never-ending improvement – record,
use/analyze data and act
A set of simple tools are needed to interpret fully and derive use from the data. More sophisticated techniques may need to be
employed occasionally.
The e ective use of the tools requires the commitment of the people who work on the processes. This in turn needs management
support

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