TQM Module 3
TQM Module 3
TQM Module 3
BA-MGT 103
OPERATION MANAGEMENT
(TQM)
RIZAL TECHNOLOGICAL UNIVERSITY
Cities of Mandaluyong and Pasig
SESSION NO. 3
Objective
William Edwards Deming, (born Oct. 14, 1900, Sioux City, Iowa, U.S.—died Dec.
20, 1993, Washington, D.C.), American statistician, educator, and consultant
whose advocacy of quality-control methods in industrial production aided Japan’s
economic recovery after World War II and spurred the subsequent global success of
many Japanese firms in the late 20th century. TQM was demonstrated on a grand
scale by Japanese industry through the intervention of W. Edwards Deming—who, in
consequence, and thanks to his missionary labors in the U.S. and across the world,
has come to be viewed as the "father" of quality control, quality circles, and the quality
movement generally.
Corporate America, after World War II, told Deming to get lost -- and he did,
in Japan. Deming advised the Japanese, who sought him out, not to copy the
American-style inspection system but to incorporate quality control principles into the
manufacturing process. Dr. W. Edwards Deming taught that by adopting appropriate
principles of management, organizations can increase quality and simultaneously
reduce costs (by reducing waste, rework, staff attrition and litigation while increasing
customer loyalty).
Deming does not define quality in a distinct phrase. He said that only the
customer can define the quality of any product or service. Quality is a relative term
that will adjust in meaning based on the customer’s needs. Deming approach to TQM
is mainly concentrated on the creation of an organizational system that is based on
cooperation and learning for facilitating the implementation of process management
practices, which, in turn, leads to continuous improvement of processes, products and
services as well as to employee fulfillment, both of which are critical to customer
satisfaction, and ultimately, to firm survival.
Deming stressed the responsibilities to top management to be the leader in
changing processes and systems. He said that leadership plays an important role in
ascertaining the success of quality management, It is the top management’s
responsibility to create
about leading, not simply managing. And, Creates your quality vision, and implement
it.
5. Continuous Improvement:
Continuously improvement systems and processes must be absorbed. Deming
promoted the PDCA (Plan, Do, Check and Act) approach to process analysis and
improvement, firstly. It emphasizes training and education so everyone can do their
jobs better. Secondly, KAIZEN is another model to reduce waste and to improve safety,
effectiveness, and productivity.
7. Leadership:
Leadership is another key point of the 14 points of Deming. It expects your
managers and supervisors to understand the processes and the workers they use.
Leadership doesn’t simply supervise – provide support and resources so that each
staff member can do his or her best. So, it runs a coach instead of a policeman. It
figures out what each person actually needs to do his or her best. according to this key
point, it emphasizes the importance of transformational leadership and participative
management. Leadership finds ways to reach full potential, and don’t just focus on
meeting targets and quotas.
with teams to act in the company’s best interests. For that reason, it uses open and
honest communication to remove fear from the organization.
10. No Slogan:
Management should inform their people exactly what you want – don’t make
them guess. “Excellence in service” is memorable and short, but what does it mean?
How is it achieved? The message is clearer in a slogan like “You can do better if you
try.” Management should create space for employees so that they can use words and
nice-sounding phrases to replace effective leadership. So, management must outline
own expectations and then praise people face-to-face for doing good work.
It was Dr. Deming who emphasized that the key to quality improvement was in
the hands of management. Dr. Deming demonstrated that most problems are the result
of the system and not of employees. He used statistical quality control techniques to
identify special- and common-cause conditions, in which common cause was the result
of systematic variability, while special cause was erratic and unpredictable. Based on
many years of experience, we have found Dr. Deming’s philosophy to be a powerful
guiding light to build a long-lasting system that can make companies more competitive.
1. Lack of constancy of purpose to plan product and service that will have a
market and keep the company in business, and provide jobs.
As long as the focus is on short term thinking, management will fail to plan
adequately. Without good long term planning, worker efforts will be irrelevant: Total
Quality Management (TQM) cannot be a fad, as long-term forward progress should
always be the ultimate goal for any organization.
The simplest and yet one of the most deadly of quality systems management
diseases, management mobility (or when top management changes organizations
every 3-4 years) means continuous improvement efforts will be broken and disjointed
as new leaders come on board. With changes in leadership, there is a change in
management philosophy. Managers who have an eye on the next promotion want
results - now - to gain the next rung on the ladder.
you know what would have happened if you had kept on your prior course?
engineer at The Martin Company in Florida where he developed and implemented the
zero defects concept.
In 1965 Crosby was promoted to the position of the Corporate Vice President
and Director of Quality at the ITT Corporation for 14 years. Due to the magnitude of
response to his book “Quality is Free,” he left the ITT Corporation and started his own
consultancy company, Philip Crosby Associates, and as defined in his book, started
explaining quality principles & practices to organizations.
Crosby devised the principle of “doing it right the first time” (DIRFT). He also
included four major principles:
While Crosby, like Deming and Juran stressed on the importance of the
management’s commitment and error-cause removal, some aspects of Crosby’s
approach to quality are quite different from Deming’s. Zero defects, the heart to
Crosby’s philosophy, was censured by Deming as being directed at the wrong people
and forming worker frustration and bitterness. Goal setting, vital to Crosby’s theory
was also scorned for leading to unhelpful accomplishment. The truth is that Deming
was most likely reacting to the wrong use of slogans and goals. Deming may not have
censured them if they had always been used correctly within the Crosby system.
The Zero Defects theory states that there is no existence of waste in a project.
Waste refers to anything that is unproductive i.e. processes, tools, and employees etc.
Anything that is not adding any value to a project should be eliminated, thereby
leading to the elimination of waste. Eliminating waste leads to process improvement
and consequently lowers costs. The zero defects theory is the concept of doing it right
the first time• to avoid cost and time spent later in the process of project management.
quality is either present or nor present. There is no such thing as varying levels of
quality.
Crosby also presents the quality management maturity grid which contain five
states which are uncertainty, awakening, enlightened, wisdom and certainty. These
stages can be employed to appraise progress in management understanding and
attituded, the standing of quality in the organization, problem, treatment, cost of quality
as a fraction of sales, quality improvement actions.
Philip Crosby’s ideas on quality came from his vast experience of working with
an assembly line. His main focus was on zero defects which ultimately led to the
adoption of this concept by the modern Six Sigma Quality movement.
Mr. Crosby explained the idea that zero defects is not a phenomenon that
originated on the assembly line. He defined quality as a conformity to a set of
specifications defined by the management rather than a vague concept of “goodness.”
However, these specifications are set according to the needs and wants of the
customer rather than being arbitrarily defined.
Crosby claims mistakes are caused by two factors: a) lack of knowledge and
b) lack of attention. Education and training can eradicate the first cause, and a
personal commitment to excellent (zero defects) and attention to detail will cure the
second.
In 1951, Juran published the Quality Control Handbook, the classic go-to guide
of quality practitioners. Before and after that, he also authored notable books and
references such as Quality Planning and Analysis (1971), Statistical Methods Applied
to Manufacturing Problems (1926), and Managerial Breakthrough (1964).
In 1979, Juran founded his own training and certification company, Juran Institute,
based in Southbury, Connecticut. It provides training and consultancy services in
quality management, business process improvement, Lean manufacturing, etc. The
establishment of the Juran Institute amplified the reach of Juran’s teachings and
influence in a global scale. It is known as one of today’s leading quality management
consulting agencies in the world.
quality-minded. In the absence of sincere manifestation of interest at the top, little will
happen below.”
He believed that managing for quality is no walk in the park and that quality is
never attained either merely by luck or accident. He summarized the quality
management process in a “trilogy” concept – Quality Planning, Quality Control, and
Quality Improvement.
Each element has a series of actions with corresponding outputs, and in each action,
measurement of performance is required.
1. Quality Planning
In the planning stage, it is critical to define who your customers are and find out
their needs (the “voice of the customer”). After you know what your customers need,
you’re able to define the requirements for your product/process/service/system, etc.,
and develop it. Additionally, any plans that might need to be transferred to operators
or other key stakeholders should be done during the planning phase. Planning
activities should be done with a multidisciplinary team, with all key stakeholders
represented.
2. Quality Control
During the control phase, determine what you need to measure (what data do
you need to know if your process is working?), and set a goal for your performance.
Get feedback by measuring actual performance, and act on the gap between your
performance and your goal. In Statistical Process Control (SPC), there are several
tools that could be used in the “control” phase of the Juran Trilogy: Pareto Analysis,
flow diagrams, fishbone diagram, and control charts, to name a few.
3. Quality Improvement
There are four different “strategies” to improvement that could be applied during
this phase:
7. Provide recognition
8. Communicate outcome
9. Keep score
10. Uphold thrust by making yearly improvements component of the regular
systems and processes of the company.
1. The irregular problem is detected and acted upon by the process of quality
control;
2. The constant problem needs as special process, namely, quality,
improvement;
3. Such constant problems are traceable to a poor-quality planning process.
Like Deming, Juran believes most quality problems are due to management, not
employees. He also states that the distinction between constant and irregular
problems is essential because there are two different approaches to handling the
problems. Constant problems require the principle of “breakthrough”, while irregular
problems require the principle of “control”.
Shewhart's Contribution
Engineers at Bell Telephone had been working to improve the reliability of their
transmissions systems. Business dictated a need to reduce the frequency of failures
and repairs to their amplifiers, connectors and other equipment that were buried
underground. Bell Telephone had already realized that reducing variation in
manufacturing processes would have a positive impact on repair costs. At the same
time the company determined that continual adjustments in process parameters
reacting to non-conformances resulted in increased variation and a degradation of
quality.
Bell Telephone’s discoveries in product variation resulted in the institution of an
inspection program, ensuring specification and quality standards to avoid sending
defective products to customers. Even though this program was somewhat effective,
it was very costly to deal with inspecting and sorting of finished goods.
By 1924, Shewhart determined the problem of variability in terms of assignable
cause and chance cause (Deming referred to this as common cause). On May 16,
1924, Shewhart prepared a memorandum of less than one page in length and
forwarded it to his manager, George Edwards. About 1/3 of the page was devoted to
a simple diagram that we would today recognize as a control chart. This memorandum
set forth the essential principles and considerations that became known as process
quality control.
Shewhart’s principle was that bringing a process into a state of statistical
control would allow the distinction between assignable and chance cause variations.
By keeping the process in control, it would be possible to predict future output and to
economically manage processes. This was the birth of the modern scientific study of
process control.
At its creation in 1925, Shewhart moved to the Bell Telephone Laboratories
working to advance his theories and to bring together the disciplines of statistics,
engineering and economics.
In 1931 he published a book, “Economic Control of Quality of Manufactured
Product.” It challenged the inspection-based approach to quality and introduced the
modern era of quality management. Up until this time, statistical process control was
largely a Bell Telephone quality tool. Shewhart’s book popularized statistical control
and its use then spread throughout industry.
From the 1930s forward, Shewhart’s interests expanded from industrial quality
to wider concerns in science and statistical inference. In 1934, W. Edwards Deming
and another physicist, Raymond T. Birge, published a paper on measurement error in
science. However, after collaboration with Shewhart, they recast their approach and
launched a long collaboration between Shewhart and Deming.
Shewhart’s charts were adopted by the American Society for Testing Materials
(ASTM) in 1933. Shewhart and Deming impacted the improvement of production
material during World War II in American War Standards Z1.1-1941, Z1.2-1941 and
Z1.3-1942. Frequently, he was called upon as a consultant to the U.S. War
Department, the United Nations and the government of India.
Deming continued to champion Shewhart’s ideas, methodologies and theories
throughout his career. While working with Japan, Deming further developed some of
Shewhart’s methodological proposals of scientific interference, which had been named
the Shewhart Cycle and was represented by the plan-do-check-act elements.
Shewhart lectured extensively on the subjects of quality control and applied
statistics in India, at the University of London, at Stevens Institute of Technology and
at the graduate schools of the U.S. Department of Agriculture. He also was a member
of many societies and governmental agencies.
During the 1990s Shewhart’s work was rediscovered by a third generation of
industrial engineers and managers, and this time it was repackaged and incorporated
into the Six Sigma approach.
Dr. Armand Feigenbaum is the originator of total quality control (TQC), the
management approach that has profoundly influenced the competition for domestic
and international markets in the United States, Japan and throughout the industrialized
world.
Armand V. Feigenbaum is also known for his concept of the “hidden plant“. That
is – in every factory a certain proportion of its capacity is wasted through not getting it
right the first time. Dr. Feigenbaum quoted a figure of up to 40% of the capacity of the
plant being wasted. At that time, this was an unbelievable figure; even today some
managers are still to learn that this is a figure not too far removed from the truth.
The elements of total quality to enable a totally customer focus (internal and
external)
1. Quality is the customers perception of what quality is, not what a company
thinks it is.
6. Quality is a principal.
The several editions of Total Quality Control have been published in more than
twenty languages including French, German, Japanese, Chinese, Spanish and
Russian, and are widely used throughout the world as a foundation for management
practice.
He co-authored The Power of Management Capital with his brother and business
partner, Donald S. Feigenbaum (see bio), a former GE engineer and manager, setting
a new direction for innovation in management in the twenty first century not only in
industry but also in health care, education, public administration and technology. The
book has been translated into Japanese, Chinese, Brazilian Portuguese, Arabic, in
several other languages and an edition in India.
Kaoru Ishikawa was born in the year 1915 and went on to complete his
engineering in applied chemistry from the University of Tokyo. Until 1947, he was
associated with Nissan after which he started rendering his services as a professor in
a university.
He expressed the need for the top level management to support the teams
which were under their control all the time. He was awarded the Shewhart Medal & the
Order of the Sacred Treasure (Japan) for his outstanding technical leadership in the
area of modern quality control.
1. Fishbone Diagram (Cause & Effect Diagram) – This tool created by Kaoru
Ishikawa is known as the Fishbone Diagram owing to its shape. It is one of the
seven basic Quality Control tools. The objective of the Six Sigma program is the
removal of waste so as to identify the areas for improvement. A fishbone diagram
clusters the roadblocks together to identify which factors have the greatest
impact. Ishikawa diagram is commonly used in product design and prevention of
quality defects to reveal the factors causing the overall effect.
A fishbone diagram is a diagram that looks just like that, hence the name. It
was developed in 1943 by Dr. Kaoru Ishikawa while at the University of Tokyo.
A fishbone diagram is also referred to as an Ishikawa diagram. And these diagrams
have yet another name: cause & effect diagrams, or CE diagrams.
The main purpose of fishbone diagrams is to help people figure out all of the
things that are causing a particular problem.
For example, say you want to figure out why sales are slow for your kitchen knives
business. You can use a fishbone diagram to help you pinpoint all the causes leading
to your slow sales.
From your fishbone diagram, you'll be able to clearly see that your pricing, your
advertising, and the quality of your product is causing your sales to be slow.
Once a fishbone diagram is complete, it also helps the team to see where
improvements can be made.
Conclusion
The contribution of Kaoru Ishikawa stands tall and unquestioned in the area of
quality control and process improvement. The cause and effect diagram is used by
global organizations in order to understand the causes behind the quality gaps and the
effects of these gaps on the overall functioning of the organization.
Kaoru Ishikawa wanted to change the way people think about work. He urged
managers to resist becoming content with merely improving a product's quality,
insisting that quality improvement can always go one step further. His notion of
company-wide quality control called for continued customer service. This meant that a
customer would continue receiving service even after receiving the product. This
service would extend across the company itself in all levels of management, and even
beyond the company to the everyday lives of those involved. According to Ishikawa,
quality improvement is a continuous process, and it can always be taken one step
further.
For Ishikawa quality is the “development, design, production and service of a
product that is most efficient, most helpful, and constantly acceptable to the consumer”.
He argues that quality control extends further than the product and includes after sales
service, the quality of management, the quality of individuals and the company itself.
He advocates employee contribution as the input to the successful implementation of
TQM. Quality circles, he believes, are an essential medium to achieve THIS. In his
work, like all other gurus, he emphasizes the value of education. He states that quality
starts and culminates with education.
Seven Basic Tools that are Indispensable for Quality Control:
1. Process flow chart
2. Check sheet
3. Histogram
4. Pareto chart
5. cause and effect diagram
6. Scatter diagram
7. Control Chart
Ishikawa believed that with these tools, managers and staff could deal with
and solve the quality problems facing them. Ishikawa was the first quality guru to
accentuate the importance of the inter customer, the next person in the production
process.
GENICHIE TAGUCHI
After WWII Japanese manufacturers were struggling to survive with very limited
resources. If it were not for the advancements of Taguchi the country might not have
stayed afloat let alone flourish as it has. Taguchi revolutionized the manufacturing
process in Japan through cost savings. He understood, like many other engineers, that
all manufacturing processes are affected by outside influences, noise. However,
Taguchi realized methods of identifying those noise sources which have the greatest
effects on product variability. His ideas have been adopted by successful
manufacturers around the globe because of their results in creating superior
production processes at much lower costs.
Taguchi is a Japanese quality expert known for his work in the area of product
design. Taguchi stressed that companies needed to center their quality efforts on the
design stage, as it was much less expensive and easier to make changes during this
stage later in the production process.
Genichi Taguchi’s additions to the field of quality control were not constrained
to just the process of production. He had keen insights into the perception of a
customer towards a particular product and how it varies with variability in quality as
time passes. His equations to quantify and calculate the same are famously called the
Loss Function and is still used by manufacturing houses today.
Another major contribution of Taguchi was to isolate and remove factors which affect
the variability of a product. These activities were often ignored owing to the associated
cost and time needed. Taguchi’s brilliance lay in the simplistic and cost-effective way
he designed arrays to isolate and remove these factors.
1. Reducing loss Taguchi was the first one to actually quantify customer
experience and define how it changed with changes in product quality. These
equations would give insights into the loss in revenue and the relationship it had
with customer experience.
2. Reducing product defects – In all production processes there are factors which
either influence product quality in a direct or indirect manner. Though the direct
influencers are simple to catch and control, the challenge lay in doing the same
for the indirect variables. Even if it were possible it would be a very expensive
process and not practical when scaled up. Taguchi came up with certain arrays
called orthogonal arrays which would pinpoint the indirect variables and also
keep costs under control.
It's safe to say that Shigeo Shingo is the grandfather of Total Quality
Control. Process Improvement methods owe alot to this man. He was an industrial
engineer who specialized in industrial processes and helped to form the Toyota
Production System.
Dr. Shingo mastered the concept of Kaizen. He had the skills and wisdom to
understand that correct and efficient processes go hand in hand with employee
engagement - the essentials to successful lean manufacturing. Dr. Shingo was also an
international consultant, introducing the Toyota Production System concepts to a
broad range of industries apart from manufacturing.
“When you buy bananas all you want is the fruit not the skin, but you have to
pay for the skin also. It is a waste. And you the customer should not have to pay
for the waste.” - Shigeo Shingo
Dr. Shigeo Shingo is a name highly respected amongst engineers and the
scores of people currently associated with quality control across industries. He is said
to have attained Kaizen, the Japanese word associated with improvement. To be more
precise, the concept in business it refers to the perfect synergy between all the
activities of an organization. This may be from the level of the CEO himself down to
the assembly line workers on the floors of thousands of factories across the world.
By 1955 Dr. Shingo was already leading the industrial engineering and factory
improvement training team at the Toyota Motor Corporation. In 1956, he led a three-
year study on shipbuilding at Mitsubishi Shipbuilding and came up with a system that
halved the production time. He is also credited with the completion of the SMED, or
single-minute-exchange of die method which is a type of Lean manufacturing method.
He achieved zero quality defects by leveraging the improved version of SMED.
During his lifetime Shingo contributed quite a bit to further quality control
processes in the industry. His teachings can be bucketed into three main topics
Just In Time (JIT): This concept in quality control was developed mainly by Dr. Shingo
in collaboration with Mr. Taichii Ohno from the Toyota days. To summarize the
concept, this is a planned way to eliminate all waste along with continuous
improvement in productivity. It encompasses a perfect synergy of all activities related
to manufacturing a particular product. A few primary elements of JIT would be:
Single Minute Exchange of Dies (SMED): Dr. Shigeo Shingo, as part of JIT, also
helped advance and develop the existing SMED process. The basic tenets which drove
the study were:
The above becomes very beneficial to companies looking to cut costs as it allows
the manufacturing system to adjust quickly to changes in design with a very little cost
to the company. In addition to the cost benefits, this new and improved SMED process
also allowed for zero defects, higher machine efficiency, and in turn results in a high
production rate.
His brilliance lay in the way he approached the SMED process. His idea was to
isolate and identify the time required for setup into two main entities: internal time and
external time. Many companies that have stamping operations have found great
success using his methods.
Zero Quality Control (ZQC): Dr. Shingo’s ZQC method are based on a few principles
as stated below
1. Quality inspections should be done at the source of the process instead of routine
sampling inspections
2. Quick feedback from the quality checks and self-checks
3. Poka-yoke designed manufacturing devices
His basic idea was to target the defect at its root cause to eliminate it from the process
effectively. He firmly believed that in addition to statistical methods, sound
manufacturing processes would go a long way in eliminating defects altogether.
MASAKI IMAKI
companies. He was also the first to organize study missions to Japan to study kaizen
and Lean methods, a service that Kaizen Institute continues today, having led more
than 200 groups and 4,000 people.
Masaaki Imai speaks not only to leadership issues but also to frontline issues
at the gemba or “the real place where value is added”. He understands the steps
required to make a company world-class and moving it from a result-oriented to
process-oriented company.
Research and read the W.Edwards Deming of Powell: The Man Who
Helped Shape the World, by Doug Mclnnis