Total Quality Management Concepts, Philosophies and Frameworks

prepared by mer Saatiolu

Effective management of quality requires the execution of three activities: 1. Quality Planning 2. Quality Assurance 3. Quality Control and Improvement

Quality Planning
Strategic activity and it is just as vital to
- Long term business success - Product development plan - Financial Plan - Marketing Plan - Utilization of human resources

Identify customer needs (voice of the customer) Products and services must be developed Determine how these products and services are realized Planning for quality improvement
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Quality Assurance
Set of activities that ensures - the quality levels of products and services are properly maintained
- supplier and customer quality issues are properly resolved

Documentation of the quality system which involves four components - policy (what is to be done)
- procedures (focus on the methods and personnel) - work instructions - specifications - records (documentation of policies, procedures, work instructions)

Development, maintenance and control of documentation

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Quality Control and Improvement

Set up activities used to ensure that the products and services meet requirement and are improved on a continous basis SPC and design of experiments are the major tools Quality improvement is often done on a project-by project basis
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Leaders in the Quality Revolution

W. Edwards Deming Joseph M. Juran Philip B. Crosby Armand V. Feigenbaum Kaoru Ishikawa Genichi Taguchi
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W. Edwards Deming

1-4.1 Quality Philosophies and Management Strategies

Taught engineering, physics in the 1920s, finished PhD in 1928 Met Walter Shewhart at Western Electric Long career in government statistics, USDA, Bureau of the Census During WWII, he worked with US defense contractors, deploying statistical methods Sent to Japan after WWII to work on the census
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Deming
Deming was asked by JUSE to lecture on statistical quality control to management Japanese adopted many aspects of Demings management philosophy Deming stressed continual never-ending improvement Deming lectured widely in North America during the 1980s; he died 24 December 1993

Deming Chain Reaction

Improve quality Costs decrease Productivity improves Increase market share with better quality and lower prices

Stay in business
Provide jobs and more jobs
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Demings System of Profound Knowledge

Appreciation for a system Understanding variation Theory of knowledge Psychology

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Systems
Most organizational processes are crossfunctional Parts of a system must work together Every system must have a purpose Management must optimize the system as a whole
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Theory of Knowledge
Knowledge is not possible without theory Experience alone does not establish a theory, it only describes Theory shows cause-and-effect relationships that can be used for prediction
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Psychology
People are motivated intrinsically and extrinsically Fear is demotivating Managers should develop pride and joy in work

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Demings 14 Points
1. Create constancy of purpose toward improvement 2. Adopt a new philosophy, recognize that we are in a time of change, a new economic age 3. Cease reliance on mass inspection to improve quality 4. End the practice of awarding business on the basis of price alone 5. Improve constantly and forever the system of production and service 6. Institute training 7. Improve leadership, recognize that the aim of supervision is help people and equipment to do a better job 8. Drive out fear 9. Break down barriers between departments
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14 Points contd
10. Eliminate slogans and targets for the workforce such as zero defects 11. Eliminate work standards 12. Remove barriers that rob workers of the right to pride in the quality of their work 13. Institute a vigorous program of education and selfimprovement 14. Put everyone to work to accomplish the transformation

Note that the 14 points are about change

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Demings Deadly Diseases

1. Lack of constancy of purpose 2. Emphasis on short-term profits 3. Performance evaluation, merit rating, annual reviews 4. Mobility of management 5. Running a company on visible figures alone 6. Excessive medical costs for employee health care 7. Excessive costs of warrantees

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The Deming Wheel (or P-D-C-A Cycle)

4. Act Institutionalize improvement Continue cycle 1. Plan Identify problem Develop plan for improvement 2. Do Implement plan on test basis

3. Study / Check Is the plan working

2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e

Ch 3 - 13

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Joseph M. Juran
Born in Romania (1904), immigrated to the US Worked at Western Electric, influenced by Walter Shewhart Emphasizes a more strategic and planning oriented approach to quality than does Deming Juran Institute is still an active organization promoting the Juran philosophy and quality improvement practices

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The Juran Trilogy

1. Planning 2. Control 3. Improvement
These three processes are interrelated Control versus breakthrough Project-by-project improvement
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Phillip B. Crosby

Quality is free . . . :
Quality is free. Its not a gift, but it is free. What costs money are the unquality things -- all the actions that involve not doing jobs right the first time.

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Philip B. Crosby
Absolutes of Quality Management:
Quality means conformance to requirements Problems are functional in nature There is no optimum level of defects Cost of quality is the only useful measurement Zero defects is the only performance standard
www.philipcrosby.com
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A.V. Feigenbaum
Three Steps to Quality
Quality Leadership, with a strong focus on planning Modern Quality Technology, involving the entire work force Organizational Commitment, supported by continuous training and motivation
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Kaoru Ishikawa
Instrumental in developing Japanese quality strategy Influenced participative approaches involving all workers Advocated the use of simple visual tools and statistical techniques
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Genichi Taguchi
Pioneered a new perspective on quality based on the economic value of being on target and reducing variation and dispelling the traditional view of conformance to specifications:
Loss
0.480

No Loss
0.500 0.520

Loss

Tolerance
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Total Quality
People-focused management system Focus on increasing customer satisfaction and reducing costs A systems approach that integrates organizational functions and the entire supply chain Stresses learning and adaptation to change Based on the scientific method
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Principles of Total Quality

Customer and stakeholder focus Participation and teamwork Process focus and continuous improvement

...supported by an integrated organizational infrastructure, a set of management practices, and a set of tools and techniques
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Customer and Stakeholder Focus

Customer is principal judge of quality Organizations must first understand customers needs and expectations in order to meet and exceed them Organizations must build relationships with customers Customers include employees and society at large
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Participation and Teamwork

Employees know their jobs best and therefore, how to improve them Management must develop the systems and procedures that foster participation and teamwork Empowerment better serves customers, and creates trust and motivation Teamwork and partnerships must exist both horizontally and vertically
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Process Focus and Continuous Improvement

A process is a sequence of activities that is intended to achieve some result

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Continuous Improvement
Enhancing value through new products and services Reducing errors, defects, waste, and costs Increasing productivity and effectiveness Improving responsiveness and cycle time performance

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Infrastructure, Practices, and Tools

Infrastructure
Leadership Strategic Planning HRM Process mgt. Data and information management

Practices

Performance appraisal

Training

Tools

Trend chart

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TQ Infrastructure

Customer relationship management Leadership and strategic planning Human resources management Process management Data and information management
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Quality Systems and Standards

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ISO 9001:2000

Standart has eight clauses

1. 2. 3. 4. 5. 6.

7.
8.

Scope Normative References Definitions Quality management systems Management system Resource management Product (or service) realization Measurement, analysis and improvement
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ISO 9001:2000 contd

Clauses 4 through 8 are the most important, and their key component and requirements are shown below table ISO Certification process focuses heavily on quality assurance

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ISO 9001:2000 requirements

1. 2. 3.

4.
5.

Quality management systems Management system Resource management Product (or service) realization Measurement, analysis and improvement

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Quality Management System

General requirements
The organization shall establish, document, implement, and maintain a quality management system and continually improve its effectiveness in accordance with the requirements of the international standart.

General Documentation
Quality management system documentation will include a quality policy and quality objectives; a quality manual; documented procedures; documents to ensure effective planning, operation, and control of processes; and records required by the international standart
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Management System

Management Commitment
- Communication of meeting customer, statutory, and regulatory requirements - Establishing a quality policy - Establishing quality objectives - Conducting management reviews - Ensuring that resources are available

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Management System contd

Top management shall ensure that customer requirements are determined and are met with the aim of anhancing customer satisfaction Management shall establish a quality policy Management shall ensure that quality objectives shall be established. Management shall ensure that planning occurs for the quality management system Management shall ensure that responsibilities and authorities are defined and communicated Management shall review the quality management system at regular intervals
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Resource Management

The organization shall determine and provide needed resources Workers will be provided necessary education, training, skills, and experience The organization shall determine , provide, and maintain the infrastructure needed to achieve conformity to product requirements The organization shall determine and manage the work environment needed to achieve conformity to product requirements
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Product or Service Realization

The organization shall

plan and develop processes needed for product or service realization determine requirements as specified by customers plan and control the design and development for its products or services ensure that a purchased material or product conforms to specified purchase requirements plan and carry out production and service under controlled conditions determine the monitoring and measurements to be undertaken and the monitoring and measuring devices needed to provide evidence of conformity of products or services to determined requirement
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Measurement, Analysis, and Improvement

The organization shall

plan and implement the monitoring, measurement, analysis, and improvement process for continual improvement and conformity to requirements monitor information relating to customer perceptions ensure that product that does not conform to requirements is identified and controlled to prevent its unintended use or delivery

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Measurement, Analysis, and Improvement contd

The organization shall

determine, collect, and analyze data to demonstrate the suitability and effectiveness of the quality management system, including - Customer satisfaction - Conformance data - Trend data - Supplier data Continually improve the effectiveness of the quality management system
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The Malcolm Baldrige National Quality Award

The MBNQA process is a valuable assessment tool See Table 1-3 for Performance Excellence Criteria and point values

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1 Leadership 1.1 Leadership System....................................................... 1.2 Company Responsibility and Citizenship......................... 2 Strategic Planning 2.1 Strategy Development Process............................................ 2.2 Company Strategy............................................................... 3 Customer and Market Focus 3.1 Customer and Market Knowledge......................................... 3.2 Customer Satisfaction and Relationship Enchantment............ 4 Information and Analysis 4.1 Measurement and Analysis of Performance.......................... 4.2 Information Management..................................................... 5 Human Resource Focus 5.1 Work Systems.................................................................... 5.2 Employee Education, Traning, and Development................... 5.3 Employee Well-Being and Satisfaction................................. 6 Process Management 6.1 Management of Product and Service Processes................... 6.2 Management of Business Processes.................................... 6.3 Management of Support Processes...................................... 7 Business Results 7.1 Customer Results................................................................ 7.2 Financial and Market Results............................................... 7.3 Human Resource Results..................................................... 7.4 Organization Results........................................................... Total Points

120 80 40 85 40 45 85 40 45 90 50 40 80 35 25 25 85 45 25 15 450 125 125 80 120 1000

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Application Received by NIST

Stage 1 Independent Review by Examiners

Judges Select for Consensus Review

Yes

Stage 2 Independent Review by Examiners

No

Feedback Report to Applicant

Judges Select for Site Visit

Yes

Stage 3 Site Visit

Judges Recommend Winner

Yes

Feedback Report

No

No

Feedback Report to Applicant

Feedback Report to Applicant

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The EFQM Excellence Model

ENABLERS RESULTS

People 9%

People Results 9%

Leadership 10%

Policy & Strategy 8%

Processes 14%

Customer Results 20%

Key Performance Results 15%

Partne rships & Re source s 9%

Soceity Results 6%

INNOVATION AND LEARNING

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Leadership

Leaders develop the mission, vission, values and ethics and are role models of a culture of Excellence Leaders are personally involved in ensuring the organizations management system is developed, implemented and continously improved Leaders interact with customers, partners and representatives of soceity Leaders reinforce a culture of excellence with the organizations people Leaders identify and champion organization change
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Policy and Strategy

Policy and Strategy are based on the present and future needs and expectations of stakeholders Policy and Strategy are based on information from performance measurement, research, learning and external related activities Policy and Strategy are developed, reviewed and updated Policy and Strategy are communicated and deployed through a framework of key processes

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People

People resources are planned, managed and improved Peoples knowledge and compentencies are identified, developed and sustained People are involved and empowered People and the organization have a dialogue People are rewarded, recognised and cared for

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Partnerships and Resources

External Partnerships are managed Finances are managed Buildings, equipment and materials are managed Technology is managed Information and knowledge are managed

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Processes

Processes are systematically designed and managed Processes are improved, as needed, using innovation in order to fully satisfy and generate increasing value for customers and other stakeholders Products and Services aredesigned and developed based on customer needs and expectations Products and Services are produced, delivered and serviced Customer relationships are managed and enhanced

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Customer, People, Soceity Results

Perception Measures Performance Measures

Key Performance Results

Key Performance Outcomes Key Performance Indicators

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Six Sigma
Use of statistics & other analytical tools has grown steadily for over 80 years
Six-Sigma (origins at Motorola in 1987, expanded impact during 1990s to present)
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Focus of Six Sigma is on Process Improvement with an Emphasis on Achieving Significant Business Impact
A process is an organized sequence of activities that produces an output that adds value to the organization All work is performed in (interconnected) processes Easy to see in some situations (manufacturing) Harder in others Any process can be improved An organized approach to improvement is necessary 56 The process focus is essential to Six Sigma

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What is Six Sigma?

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Why Quality Improvement is Important: A Simple Example

A visit to a fast-food store: Hamburger (bun, meat, special sauce, cheese, pickle, onion, lettuce, tomato), fries, and drink. This product has 10 components - is 99% good okay?
P{Single meal good} (0.99)10 0.9044 Family of four, once a month: P{All meals good} (0.9044) 4 0.6690 P{All visits during the year good} (0.6690)12 0.0080

P{single meal good} (0.999)10 0.9900, P{Monthly visit good} (0.99)4 0.9607 P{All visits in the year good} (0.9607)12 0.6186

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Six Sigma Focus

Initially in manufacturing Commercial applications
Banking Finance Public sector Services

DFSS Design for Six Sigma

Only so much improvement can be wrung out of an existing system New process design New product design (engineering)

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Some Commercial Applications

Reducing average and variation of days outstanding on accounts receivable Managing costs of consultants (public accountants, lawyers) Skip tracing Credit scoring Closing the books (faster, less variation) Audit accuracy, account reconciliation Forecasting Inventory management Tax filing Payroll accuracy

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Six Sigma
A disciplined and analytical approach to process and product improvement Specialized roles for people; Champions, Master Black belts, Black Belts, Green Belts Top-down driven (Champions from each business) BBs and MBBs have responsibility (project definition, leadership, training/mentoring, team facilitation) Involves a five-step process (DMAIC) :
Define Measure Analyze Improve Control

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What Makes it Work?

Successful implementations characterized by:
Committed leadership Use of top talent Supporting infrastructure
Formal project selection process Formal project review process Dedicated resources Financial system integration

Project-by-project improvement strategy (borrowed from Juran)

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The Process Improvement Triad: DFSS, Lean, and DMAIC

OVERALL PROGRAMS
DFSS
DESIGN PREDICTIVE QUALITY INTO PRODUCTS

Lean
ELIMINATE WASTE, IMPROVE CYCLE TIME

Robust
Design for Six Sigma
Requirements allocation Capability assessment Robust Design Predictable Product Quality

Lead-time
LEAN
Flow Mapping Waste Elimination Cycle Time WIP Reduction Operations and Design

ELIMINATE DEFECTS, REDUCE VARIABILIT Y

DMAIC

Capable

Variation Reduction
Predictability Feasibility Efficiency Capability Accuracy

The I in DMAIC may become DFSS

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DFSS Matches Customer Needs with Capability

Mean and variability affects product performance and cost
Designers can predict costs and yields in the design phase

Consider mean and variability in the design phase

Establish top level mean, variability and failure rate targets for a design Rationally allocate mean, variability, and failure rate targets to subsystem and component levels Match requirements against process capability and identify gaps Close gaps to optimize a producible design Identify variability drivers and optimize designs or make designs robust to variability

Process capability impact design decisions DFSS enhances product design methods.
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Lean Focuses on Waste Elimination

Definition A set of methods and tools used to eliminate waste in a process Lean helps identify anything not absolutely required to deliver a quality product on time.
Benefits of using Lean Lean methods help reduce inventory, lead time, and cost Lean methods increase productivity, quality, on time delivery, capacity, and sales

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DMAIC Solves Problems by Using Six Sigma Tools

DMAIC is a problem solving methodology
Use this method to solve problems:
Define problems in processes Measure performance Analyze causes of problems Improve processesremove variations and nonvalueadded activities Control processes so problems do not recur
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Six Sigma
DMAIC is closely related to the Shewhart cycle (variously called the Deming cycle, or the PDCA cycle)

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