l03 TQM 20111109

Total Quality Management TQM
Quality Management I Global Production Engineering (09.11.11)
Agenda: Lecture 3
TQM Meaning
History Definition TQM Concept Explanation TQM vs. QM
TQM Aspects
Policy and strategy Management Employee orientation Process orientation Customer focus Result-orientation
TQM Statistics What are the benefits of TQM
Wrap-up
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Quality Management I | Prof. Dr.-Ing. Jochem
History of TQM
The term TQM was born in technical discussions in the 1980s . TQM principles were firstly introduced by Feigenbaum, the american scientist, who developed TQC in 1961. The TQC model turned later by Ishikawa into CWQC , which would engage all members of an organization in quality related activities.
The strategy of TQM follows two approaches:

The superior organization philosophy ,aligned with quality. The organization environment
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Total Quality Management: Definition

TQM is defined as: Management approach of an organization, centered on quality, based on the participation of all its members and aiming at a long-term success through customer satisfaction, and benefits to all members of the organization and to society. Note 1: The expression all its members designates personnel in all departments and at all levels of the organizational structure. Note 2: The strong and persistent leadership of top management and the education and training of all members of the organization are essential for the success of its approach.
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Total Quality Management: Definition

Note 3: In total quality management the concept of quality relates to the achievement of all managerial objectives. Note 4: The concept benefits to society implies, as needed, fulfillment of the requirements of society. Note 5: Total quality management (TQM) or parts of it are sometimes called Total quality, CWQC (company-wide quality control), TQC (total quality control) and so on.
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TQM: Relations Diagram
Reaching all management objec;ves
Par;cipa;on of all members in the organiza;on
Focus on Quality Management method
TQM
Long term success of the company
Prot
Members of the organiza;on
for
Customer sa;sfac;on
Society
Click to edit Master text styles
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TQM concept explanation Total:

range and function-spreading (Process orientation) partnership & relationship to customers and suppliers (Customer orientation) inclusion of all enterprise members (Employee orientation) dialogue and co-operationoriented public work (Society orientation)
Quality:
Quality of the enterprise/system Quality of the work Quality of the products Quality of the processes
M:
Management quality Promotion of team and learning attitude Continuous improvement
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TQM concept explanation

TQM assumes that the top management extends the TQM-approach according to the Top-Down-approach into all areas of the enterprise.
Top Management
Customers
Employees
Supplier
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The quality is placed on the center of TQM strategy. The basic principle of TQM is the human factor ,which prioritizes the customer orientation in organisation. 100 80
Part of customers who buy again
60 40 20 0 0 1
Number of complaints within the last 12 month
Analyze of the brand loyalty of the automobile industry Only satisfied customers abide by the organisation and recommend the products of the organisation to the others.
www.qm-infocenter.de (qm-Basics TQM)
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The following diagram shows that not only errors caused by production are criticized but also errors not caused while production can lead to dissatisfaction of the customer and thus to the avoidance of a product of a manufacturer. A research about customer complains in Philips Germany:
Complaints
Wrong date
Wrong quanPPes Wrong type Wrong address Wrong appliance advice Wrong invoicing Improper packing Insolvent customer

We conclude from this research that just Total Quality Management can solve these problems and avoid possible customer complaints from the very begining.
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Customers loss reasons:
Gleichgltig nd disinterest of the supplier Insensible a und Desinteresse des Lieferanten gegenber dem Kunden to the customer
68% 14% 9% 5% 3%
Complaints of tdescKunden bleiben unbeantwortet Beschwerden he ustomer are leU unanswered The Preis des rice is to hist dem tKunden zu hoch product p Produkts igh for he customer
Geschfte mit parPes Business with third Fremdunternehmen Zustndiger Vertreter verlt das the company Responsible representaPve is leaving Unternehmen
Tod Death of a customer des Kunden 1%
0%
20%
40%
60%
80%
100%
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Main development steps towards TQM
Total Quality Management
visionary - programmatic - Quality is a top management task - Quality is at the foreground of all activities - Product quality is a result of enterprise quality
Integrated Quality Assurance

integrated
- Quality is not an extra function - Quality is in the sense of everyone - Everyone makes partly quality
Quality control
rational - conservative - Quality is one function of many - Quality will be shifted to specialists - Efficiency is at the foreground
Source: Kamiske, Malorny, 1992
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QM vs. TQM
Product Quality Management Quality Characteristics Cycle Time Cost ...
Process Quality Characteristics Cycle Time Cost ...
System Quality Characteristics Throughput Cost ...
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QM vs. TQM
Product Quality CharacterisPcs Cycle Time Cost ...
Process Quality CharacterisPcs Cycle Time Cost ...
System Quality CharacterisPcs Throughput Cost ...
TQM / Business Excellence
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Difference between TQM and QM according to ISO 9000ff. QM according to ISO 9000 . Denes demands on a QMS Relates to the QMS as part of the overall management system Aims on product quality Overlaps quality and demands
TQM
Is a management style Includes all groups of interest Relates to the overall management system Sees quality as the basis to reach all management goals Aims at a comprehensive quality Based on the parPcipaPon of all employees
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Agenda: Lecture 3
TQM Meaning
History Definition TQM Concept Explanation TQM vs. QM
TQM Aspects
Policy and strategy Management Employee orientation Process orientation Customer focus Result-oriented
TQM Statistics
Wrap-up
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Aspects of TQM
1. Policy and strategy 2. Management 3. Employee orientation 4. Process orientation 5. Customer focus 6. Result-oriented 7. TQM Statistics What are the benefits of TQM
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Policy and strategy

Permanent success in policy:
All members of the management amicably formulate and adopt the quality policy. They jointly sign the document. The quality manager provide technical assistance concerning the professional formulation and completeness as regards content.
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Policy and strategy

The organisation must answer these key questions:
What is the purpose of the organization? which general business objectives and targets does it have? Why does quality have a strategic meaning in itself? Which employee behaviour does one need? Which management competencies are necessary? Which general measures are necessary for the realization? Which control measures are taken or needed to be taken?
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Aspects of TQM
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Management
Business management and leadership are different concepts. Business management means to come to a decision about for example:
Finances Employees Product range
Leadership means, to exercise the following management functions:

Initiative function Role model function Service function
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Management Initiative function:

Assurance and fortification of a quality culture Work out policy, visions and values Development of a management system Initialise a quality program Recognition and appreciation of work performed Promotion of TQM inside and outside of the business
Role model function:

Exemplify principles, ideas and values of TQM regular examination of the own performance Permanent strive to improvement Commitment at customers and suppliers for TQM Participation in TQM training courses and meetings
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Management Service function:

Supply of personnel and financial resources for TQM activities and improvement measures To enable and to assist the employees to render high quality services Training courses of the employees on all hierarchy levels Information and transfer of own quality knowledge
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Management
Tasks and behavior of the business management:
TQM must be discussed at each work meeting of the management . Regular TQM audits within all parts of the organisation Leading is effective, only if the employees are taken into account. Mere instructions are not helpful. ("coaching do not prevail) Employees should be seen as assets and not as a cost factor . Search all together for the cause of the errors and solutions (not only a specific department) Defects should be prevented and not be tolerated. Management is based on goals and facts and not on preassumptions. A practiced TQM is part of the daily work and not an additional task.
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Aspects of TQM
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Employee orientation
An important factor in TQM is the competence among the employees, which should be encouraged. an employee oriented management results in more employee satisfaction. Employee motivation, qualification and satisfaction can be measured by methods like employee questioning.
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Employee orientation How to reach employee orientation:

Planning, management and improvement of employee resources Maintaining and advancement of the abilities of the employees Agreement of the goals with the employee and the continuous examination of the performances Participation of the employees, authorization to act independently and acknowledgment of the performances Reach an effective dialogue between employees and organisation organisation should care about the employees.
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Aspects of TQM
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Process orientation
High-quality is a prime goal of manufacturing. In order to reach high-quality, procedures and production steps with the criteria of the cost calculation are to be arranged. E.g.: working accuracy and the operating time. J. M. Juran: Who does not control the processes in an enterprise, controls actually nothing at all in the enterprise.
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Process orientation Process orientation tends to:

identify business processes control resources and activities belonging together as a process define activities ,which have mutual dependence (interfaces) make process performance measurable designate competencies for managing the individual processes control and continuously improve processes.
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Process orientation The process management requires:

Understanding of the employees for the term "process" Definition of the business processes with the necessary linkages between the different processes, which are mostly fixed in process instructions Determination of the process responsibilities Documentation of the processes (e.g. Flowchart) Measurement of the processes (define goals based on KPIs) Control of the processes (assured by Audits).
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Process orientation Process:

A process converts a requirement by guided procedures and resources into a result. Within a measurement system, data and information can be collected in order to analyze the process achievement and the characteristics of results.
Procedures Requirement
Process
Result
Resources
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Process orientation Process Orientation leads to a network of processes

Procedure D Requirement D Requirement A
Procedure A
Process A
Result A = Procedure B
Process D
Result C = Resource D
Resource B
Result B = Requirement C Requirement B
Process B
Process C
Resource C
Resource B
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Process Classification
There are 3 basic types of processes ,classified based on their functions:
Management Processes (also: Strategic Processes) Performance Processes (also: Core Processes or Main Processes) Supporting Processes (also: Secondry Processes)
Management Processes Leadership Processes Personal Management Controlling
Performance Processes Automobile Rapair Supporting Processes Information Management Procurement Contract Management Equipment Management
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Inspection
Total Quality Management (Excellence) / Fhrungsaufgaben im QM II | Prof. Dr.-Ing. Jochem
Examples for Process Categories

Process Category 1. Management Processes organisation leadership processes Example Business Planning Agreement on Organisation Structure Agreement on Responsibilities Ressource Allocation Improvement Processes
2. Main Processes (Core Processes) value added procceses (which the customer is ready to pay for) 3. Supporting Processes they do not create value ,desired by the customer; but they are necessary for a smooth flow of Main Processes
Marketing Development Production Distribution Maintenance and Repair, Inspection Processes Quality Management Information and Documentation Processes (Data Processing) General Services Controlling Accounting Marketing Service Development Logistics Quality and Process Management Human Resource Development
4. Key Processes are those processes, which have special effects on success factors of an organisation. They can also be considered as main or supporting processes.
In Anlehnung an Morgenstern
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Customer-Supplier-Relationships
Each employee of the organisation is customer and supplier at the same time.
Kundenanforderungen Customer Requirements
Customer Requirements
OrganisaPon
Internal Supplier External Supplier Input Internal Customer Output / Input
Internal Supplier Output Internal Customer Kundenanforderungen External Customer
Internal Requirements
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Aspects of TQM
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Customer orientation
Customer orientation must be in accordance with customer needs. Customer does not necessarily mean Buyer. Purchase decisions and customer satisfaction depend on other people as well. (e.g. inspection department and accounting department). High customer orientation usually comes along with high customer satisfaction. Product and process improvements are to be derived from customer complaints and questionings .
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Customer orientation
Customer complaints are not the only index to measure customer satisfaction. Not all customers would complain in case of dissatisfaction. They subsequently decide to buy others products or services. Based on a marketing research, 1 unsatisfied customer informs approximately 10 other persons about his dissatisfaction. However if he is satisfied, he lets only 3 other persons know. These researches prove the Iceberg Theory, which implies only one small part of the customer satisfaction is visible. (like a huge Ice berg that only its top can be seen) employees must be trained to understand the importance of the customer satisfaction.
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Aspects of TQM
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Result-oriented
To evaluate the efficiency of an organization, the following measurement indexes are necessary:
Financial indexes: Profit margin Liquidity Dividend etc. Non-financial indexes:
Customer satisfaction indices Complaint quote Employee satisfaction indices Personnel efficiency Image indices Environmental indices etc.
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Result-oriented
Quality Costs
Necessary quality costs Avoidable quality costs
5 15 % of producPon costs Appraisal costs (60 80 %)
PrevenPon costs (2 15 %) et al. research
Failure costs (20 30 %)

Rework Material loss
RouPne control
AddiPonal tesPng
according to http://www.stcstracke.de/quality/prod01_pro.htm
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Result-oriented
Quality related costs
necessary costs PosiPve contribuPon to added value
conformance costs
nonconformance costs
avoidable costs ReducPon of added value
PrevenPve Costs
Appraisal costs (planned)
Internal failure costs
External failure costs
e.g: prevenPve maintenance

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e.g: inspecPon
e.g: scrap/rework
e.g: warranty
according to http://www.qm-trends.de/fb0812.htm
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Result-oriented
Success assessment of the TQM Different international quality prizes
European Quality Award (EQA) of European Foundation for Quality Management also called EFQM model Deming-Price of JUSE (Japanese Union of Scientists and Engineers) Malcolm Baldrige National Quality Award (MBNQA; United States) Cost benefit analysis
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Aspects of TQM
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TQM Statistics
Number of Companies
30
25
20
15
10
85 european companies and 35 non-european companies implemented TQM.

Leicester University, report EFQM ad BQF funded study (2005)
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TQM Statistics
Mean percentage change in the performance of the award winning companies compared to the comparison companies for Share Value.
11/8/11 Quality Management I | Prof. Dr.-Ing. Jochem
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TQM Statistics
Mean percentage change in the performance of the award winning companies compared to the comparison companies for Sales
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TQM Statistics
Mean percentage change in the performance of the award winning companies compared to the comparison companies for Assets.
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TQM Statistics
Mean percentage change in the performance of the award winning companies compared to the comparison companies for Employees.
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Wrap-up (1)
The goal of an enterprise is it to gain profit. Therefore an effective quality management is not a guarantor to maintain ground in business. TQM is defined as Management approach of an organization, centered on quality, based on the participation of all its members and aiming at a long-term success through customer satisfaction, and benefits to all members of the organization and to society. In the evaluation criteria of the quality prices such as MBNQA and EQA, approaches of the TQM show themselves again.
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Wrap-up (2)
The realization of the TQM is not possible with defined components. Methods and instruments are used in order to establish a TQM in an organization. TQM effects Time, Cost and Quality to reach the ultimate goal of customer satisfaction while all employees participates in it Conclusion: The TQM is a management instrument for a more profitable, customer-oriented enterprise.
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l03 TQM 20111109

Hochgeladen von

Copyright:

Verfügbare Formate

Total Quality Management TQM

Quality Management I Global Production Engineering (09.11.11)

TQM Statistics What are the benefits of TQM

Quality Management I | Prof. Dr.-Ing. Jochem

The strategy of TQM follows two approaches:

Quality Management I | Prof. Dr.-Ing. Jochem

Total Quality Management: Definition

Quality Management I | Prof. Dr.-Ing. Jochem

Total Quality Management: Definition

Quality Management I | Prof. Dr.-Ing. Jochem

TQM: Relations Diagram

Reaching all management objec;ves

Par;cipa;on of all members in the organiza;on

Focus on Quality Management method

Long term success of the company

Members of the organiza;on

Click to edit Master text styles

Quality Management I | Prof. Dr.-Ing. Jochem

TQM concept explanation Total:

TQM concept explanation

Quality Management I | Prof. Dr.-Ing. Jochem

TQM concept explanation

Quality Management I | Prof. Dr.-Ing. Jochem

TQM concept explanation

Quality Management I | Prof. Dr.-Ing. Jochem

TQM concept explanation

Tod Death of a customer des Kunden 1%

www.qm-infocenter.de (qm-Basics TQM)

Quality Management I | Prof. Dr.-Ing. Jochem

TQM concept explanation

Integrated Quality Assurance

Source: Kamiske, Malorny, 1992

Quality Management I | Prof. Dr.-Ing. Jochem

Product Quality Management Quality Characteristics Cycle Time Cost ...

Process Quality Characteristics Cycle Time Cost ...

System Quality Characteristics Throughput Cost ...

Quality Management I | Prof. Dr.-Ing. Jochem

Product Quality CharacterisPcs Cycle Time Cost ...

Process Quality CharacterisPcs Cycle Time Cost ...

System Quality CharacterisPcs Throughput Cost ...

TQM / Business Excellence

Quality Management I | Prof. Dr.-Ing. Jochem

Quality Management I | Prof. Dr.-Ing. Jochem

Quality Management I | Prof. Dr.-Ing. Jochem

Quality Management I | Prof. Dr.-Ing. Jochem

Policy and strategy

Quality Management I | Prof. Dr.-Ing. Jochem

Policy and strategy

Quality Management I | Prof. Dr.-Ing. Jochem

Quality Management I | Prof. Dr.-Ing. Jochem

Leadership means, to exercise the following management functions:

Quality Management I | Prof. Dr.-Ing. Jochem

Management Initiative function:

Role model function:

Quality Management I | Prof. Dr.-Ing. Jochem

Management Service function:

Quality Management I | Prof. Dr.-Ing. Jochem

Quality Management I | Prof. Dr.-Ing. Jochem

Quality Management I | Prof. Dr.-Ing. Jochem

Quality Management I | Prof. Dr.-Ing. Jochem

Employee orientation How to reach employee orientation:

Quality Management I | Prof. Dr.-Ing. Jochem