Total Quality Management

Greg Baker 2004

Greg Baker 2004

Whats Your Definition of Quality?

Greg Baker 2004

Quality

The ability of a product or service to meet or exceed customer expectations. The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. The customers perception of the degree to which a product or service is fit for purpose.

Greg Baker 2004

Quality
The business meanings of quality have developed over time. Various interpretations are given below: 1. ISO 9000: "Degree to which a set of inherent characteristics fulfills requirements. The standard defines requirement as need and expectation.

Greg Baker 2004

Quality
2. 3. 4.

Philip B. Crosby: "Conformance to requirements." Joseph M. Juran: "Fitness for use. Fitness is defined by the customer. Genichi Taguchi: "Uniformity around a target value. The idea is to lower the standard deviation in outcomes, and to keep the range of outcomes to a certain number of standard deviations, with rare exceptions.

Greg Baker 2004

Quality
5.

American Society for Quality: "The characteristics of a product or service that bear on its ability to satisfy stated or implied needs. W. Edwards Deming: concentrating on "the efficient production of the quality that the market expects," and he linked quality and management: "Costs go down and productivity goes up as improvement of quality is accomplished by better management of design, engineering, testing and by improvement of processes."

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Greg Baker 2004

Terms of Definitions

Customer Satisfaction: Customers perception of

the degree to which the customers requirements have been fulfilled. Quality Management System: Management System to direct and control an organization with regard to quality. Quality Improvement: Part of QM focused on increasing the ability to fulfill quality requirements.

Greg Baker 2004

Terms of Definitions

Quality Policy: Overall intentions and direction of

an organization with regard to quality. Quality Planning: Part of QM focused on setting quality objectives and specifying necessary operational processes and related resources to fulfill the quality objectives. Quality Objective: something sought, or aimed for, relating to quality.

Greg Baker 2004

Terms of Definitions

Corrective action: Action taken to eliminate the

cause of a detected non-conformity or other undesirable situation. Prevention action: Action taken to eliminate the cause of a potential non-conformity or other potentially undesirable situation.

Greg Baker 2004

The Quality Evolution

1. Inspection Inspect products 2. Quality Control (QC) Operational techniques to make inspection more efficient and to the cost of quality.

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Greg Baker 2004

The Quality Evolution

3. Quality Assurance (QA) Planned and systematic actions to insure that products or services conform to company requirements. 4. Total Quality Management (TQM) Incorporates QC/QA activities into a companywide system aimed at satisfying the customer (involves all organizational functions)
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Greg Baker 2004

Total Quality Management

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Greg Baker 2004

Evolution of Quality Management

Prior to the 1980s, the gurus of quality influenced corporate disciples These disciples in turn influenced corporate philosophies that increased the importance of quality management The corporate philosophy has essentially driven the selection of a management system

Today, quality has become a hygiene factor

In the 1980s TQM was favored In the 1990s the focus shifted to Six Sigma

Quality capability has evolved to the point where it has become engrained and expected

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Greg Baker 2004

Total Quality Management (Definition)

A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.

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Greg Baker 2004

TQM system consists of:

Culture or Philosophy Principles Tools and Techniques

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Greg Baker 2004

The Culture of TQM

The culture of the company has a major impact on the opportunities of TQM applying. The applying of TQM requires a cultural change of the company. The employees and managers have to be convinced about the importance of TQM. If companies feel the necessity to change, and have the capacity to carry out the change, then TQM gets greater support and is easier to be implemented.

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Greg Baker 2004

Tools and Techniques of TQM

Process Chart and Flow Chart Pareto Analysis The Ishikawa Diagram Histogram Chart Run Diagram and Correlation Statistical Process Control (SPC) Check Sheets Quality Function Deployment (QFD) Benchmarking

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Greg Baker 2004

Principles of TQM
(2) Top Management

(1) er m s to n Cu rive ty D ali Qu

(3 C Im ontin ) pro uo vem us ent

(8) Design Quality and Prevention

(1) Total Quality Management

(4) Employees Participation and Development

M an (7 by ag ) Fa em ct ent s

) g (5 tin as ea ers s Tr pli ner p t Su Par

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(6) Fast Response

Greg Baker 2004

Benefits of Implementing TQM

Reduction in inventory. Drastic reduction in defectives and number of defects. Reduces lead time in design, manufacturing, procurement service etc., Reduction in rejections and complaints. Customer satisfaction. Lower manufacturing cost. Continuous improvement. Teamwork.

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Greg Baker 2004

Obstacles to Implementing TQM

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Lack of management commitment Inability to change organizational culture Improper planning Lack of continuous training and education Incompatible organizational structure Insufficient resources Ineffective measurement techniques Inadequate attention to customers Inappropriate conditions for improvement Inadequate use of teamwork

Greg Baker 2004

Six Sigma

A broad and comprehensive system for building and sustaining business performance, success, and leadership The key focus is on processes Measurement of both processes and products is critical to Six Sigma success

The lofty goal is used as a driver of organizational change

Statistical six sigma goal is near-perfection 3.4 defects per million opportunities (DPMO)

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Sigma Quality Levels and Corresponding Yields

Sigma 1 2 3 4 5 6 Corresponding Yield 30.9 % 69.2% 93.3% 99.4% 99.98% 99.9997%

Greg Baker 2004

DPMO 690,000 308,000 66,800 6,210 320 3.4

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Greg Baker 2004

Quality is a Journey, not a Destination

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