Total Quality Management

Commitment Total
to Quality Involvement

TQM

Scientific Tools Continuous

and Techniques Improvement
 TQM MODELS
--MBNQA
--PDCA
--KAIZEN
--SIX SIGMA
--CMM/CMMI
TQM & CULTURE
 Malcolm Baldrige National Quality Award
(MBNQA)
• Awards given annually to US firms
• Nearly all states have quality award programs
styled after the Baldrige Award
• Criteria include
– Leadership
– Strategic planning
– Customer and market focus
– Information and analysis
– Human resource focus
– Process management
– Business results
 PDCA Cycle

4. ACT 1. PLAN
Permanently Identify im-
implement provements and
improvements develop plan

3. CHECK 2. DO
Evaluate plan Try plan on
to see if it a test basis
works
A STRATEGY FOR
PERFORMANCE
EXCELLENCE
 Continuous Improvement

Is the continuous elimination

of waste
 What Does Kaizen Mean?

KAI + ZEN
To modify, to change Think, make good, make better

= KAIZEN
Make it easier by studying it, and making the improvement
through elimination of waste.
 Why Kaizen CPI (Continual Performance Improvement)
Process Improvement
Project Implemented
• Data Driven Methodology to Magnify Impact of Process
Improvement
• Apply Control Techniques to Eliminate Erosion of
Savings

Improvements
Maintenance of
Process Performance • Proceduralize/Standardize Improvements for Improved
Maintenance of Critical Process Parameters

Time
CPI Project
CPI Projects Emphasize
Control and Long Term
Savings

Maintenance

Kaizen Time Kaizen

• Use Small Teams to Optimize Process Performance by

Savings
CPI
Implementing Incremental Change
• Apply Intellectual Capital of Team Members Intimate
with Process
Kaizen Projects
Emphasize Incremental
Improvements Time
 The Nine types of waste affecting process
improvement

9
• Overproduction
Wastes • Delays (waiting time)
• Transportation
• Process
• Inventories
• Motions
• Defective products
• Untapped resources
• Misused resources
 1. Overproduction
9 To produce more than is required *
Wastes

To produce before required *

*Required by external and internal customers

 WASTE
• Analysis of waste is generally fairly obvious.
– A general definition is “any activity that adds
cost/time without value to the service we offer to
our customers”
• Classically seven “deadly” wastes have been
categorized
 Waste of Motion
• Moving without working
 Waste of Delays
• Waiting for anything
 Waste of Transporting
• Moving products between work
 Waste of Defects

• Not working right first time

 Waste of Over-Working
• Doing work beyond what is needed
 Waste of Storing

• Keeping products waiting

 Waste of Over-Producing

• Producing more parts than are needed

Elimination of Wastes and Continuous Improvement
• The Secret: Be Systematic
• Work with a versatile team
• Measure, evaluate
• Find the 5 Whys
• Follow up
• Standardize, make uniform
• Simplify
• Combine
• Prevent
• Make waste ugly
 Think Break

Wastes Identification

1. List at least one example of each of the 9 categories of waste

from a process within your organization.

2. Identify at least one possible cause for each of the specific

wastes listed.

3. Propose one or more actions to reduce each of these wastes.

4. Identify methods of measurement to determine results of

waste reduction efforts.
 Six Sigma

Introduction to Six Sigma.

Six Sigma Methodology.
Importance of Six Sigma
 Six Sigma - History

• Developed by Motorola in 1987 with an objective to

eliminate defects/variations in the process/product.

• In 1988 Motorola became the first company to receive

Malcolm Baldridge National Quality Award.

• Jack Welch, CEO of General Electric, made Six Sigma

popular and attributed the success of GE to Six Sigma.
 What is Six Sigma?

• Six Sigma is a process improvement methodology.

• Six Sigma is a methodology to solve problems by

improving underlying processes.

• Six Sigma is a strategy which includes TQM, Strong

customer focus, advanced data analysis tools, financial
results and project management to satisfy customer
needs.
 Six Sigma – Technical Definition

Technically Six Sigma means a product/service defect

rate of 2 defects per billion opportunities (DPMO).

In the literature, a defect rate of 3.4 per million is

called Six Sigma quality, however, this value assumes a
process shift of 1.5 for the process mean.
 6 Sigma or 4.5 Sigma

• The area between  + 6 and µ - 6 under normal

distribution is = 0.999999998. That is 2 out of 1 billion
defects.

• The area under normal distribution curve up to  + 4.5 is

= 0.9999966. That is 3.4 defects out of 1 million.

• In the Six Sigma literature, the process mean is assumed to

shift by 1.5. Thus, the area up to 4.5 is used for technical
definition of long term Six Sigma.
Is Six Sigma Capability sufficient?

• For many processes, the sigma level

requirement is much higher than 6.
– Aircraft safety critical parts have Sigma level of
more than 8.
– Every year about 1000, 000 flights take-off and
land at Atlanta airport. At Six Sigma quality,
there will be 3.4 crashes every year.
 Six Sigma Methodology

• Six Sigma is a project based problem solving

approach that focuses on reducing/preventing
defects resulting in increased customer
satisfaction and lower costs. Key components
are:
– Project Selection
– People Selection
– Disciplined project methodology
• DMAIC Approach
• DMADV Approach
 Six Sigma Focus

• Improve business processes which are:

– Critical to Quality (CTQ)
– Critical to Cost (CTC)
– Critical to Schedule (CTS)
– Critical to Service (CTSe)
– Critical to Success (CTSs)
 Six Sigma Metric: Defects Per Million
Opportunities (DPMO)
• Six Sigma allows managers to readily describe
process performance using a common metric:
Defects Per Million Opportunities (DPMO)

Numberof defects
DPMO  x 1,000,000
 Numberof 
 opportunit ies  x No.of units
 for error per 
 unit 
 
 Six Sigma and Cost of Poor Quality

Visible costs
•Scrap
•Rework
Hidden Costs
•Warranty
• Conversion efficiency of materials

• Inadequate resource utilization

• Excessive use of material

• Cost of redesign and re-inspection

• Cost of resolving customer problems

• Lost customers / Goodwill

• High inventory
 Importance of Six Sigma

• For an average company (3), the cost of poor quality

can be as high as 25% of the total revenue.

• In almost all companies, where cost of poor quality

(COPQ) is unknown, COPQ exceeds the profit margin.
 Perfection
99.7% 99.9% 99.99966%
 Incorrect drug prescriptions 54,000 4,000 1 every 25 years
each year
 Unsafe drinking water; 2 1 1 second every
hours per month 16 years
 Missed landings each day at 5 2 1 in 10 years at
London’s Heathrow airport all U.S. airports
 Incorrect surgical operations 1,350 500 1 in 20 years
per week
 Newborn babies dropped by 10,000 3,000 10
doctors and nurses each year
 Lost mail per hour 54,000 4,000 1

Sigma Level 4.3 4.6 6

Six Sigma versus other process improvement
techniques

Process improvement tool Impact (%)

Six Sigma 53.60%
Process mapping 35.30%
Root cause analysis 33.50%
Cause and effect analysis 31.30%
ISO 9001 21.00%
Statistical process control 20.10%
Total Quality Management 10.30%
Malcolm Baldridge criteria 9.80%
Six Sigma Experience in Aerospace Industry – 2005
Survey

Satisfaction level Percentage

Fully satisfied 50%

Somewhat satisfied 20%

Unsatisfied 30%
 Examples of Sigma level

Process Sigma level

Bombay Dabbawallah 6.75

Airline baggage handling systems 4.14

Indian Post – Money order System 4.31

Aircraft mission critical systems 8.75

Aircraft safe landing > 20

Six Sigma Implementation Methodology

• Motorola used MAIC (Measure, Analyze, Improve and Control).

• GE uses DMAIC (Define, Measure, Analyze, Improve and

Control).

• GE modified DMAIC for product design and called it DMADV

(Define, Measure, Analyze, Design and Verify).
 Six Sigma Steps

• Six Sigma has following five stages:

– Define the problem
– Measure the extent of the problem
– Analyse the sources of problem
– Improve the processes
– Control the processes for sustained
improvement
Define Measure Analyze Improve Control
 Six Sigma Team

• Green Belt : Six Sigma project team member.

• Black Belt: Six Sigma project leader.
• Master Black Belt: Six Sigma consultant within
the organization.
• Six Sigma Champion: Top management
responsible for implementation of Six Sigma.
 Six Sigma Green Belt Toolbox

Define Stage Measure Stage Analyse Stage Improve Stage Control Stage

Stakeholder Critical to Quality Cause and Effect COPQ Analysis Statistical Process
Analysis Diagram Control
Critical to Cost Concept Selection
Quality Function 5 Whys Process capability
Pareto Diagram Pugh Matrix Analysis
Deployment
Regression Analysis
DPMO Quality Function Control Charts
Pareto Diagram
Design of Deployment
Balanced
Cause and Effect Experiments
Scorecard Regression
Diagram
Failure Modes
SIPOC Linear Programming
Analytic Hierarchy Effects and
Process Criticality Analysis Goal Programming
TRIZ
Poke Yoke
 Six Sigma in India
• Many companies in India use Six Sigma for process
improvement.

• CII gives awards to companies which implement Six Sigma

successfully.

• Companies such as Reliance and Tata group of companies have

won international awards for successful implementation of Six
Sigma.
 Introduction to Software
Capability Maturity Model
(CMM)
 Outline

• Why CMM matters

• Historical background
• What is CMM ?
• How you can use CMM
• Details about CMM
• Problems with CMM
 Why CMM matters…

• It is the most widespread and detailed software

development model
• It is a standard for much DoD (Department of
Defence )work, which is a lot of software projects
• It is being used by many non-DoD businesses
• It is widely criticized, and has inspired several anti-
CMM models
• Your tax dollars paid for it
 Background
• Begun in 1986 by DoD to help improve government
software contractors.
• Work started at Mitre, then at Software Engineering
Institute (SEI) at Carnegie Mellon Univ.
• Watts Humphrey was initial author, then Mark Paulk,
Bill Curtis, and others.
• Borrows heavily from general Total Quality
Management (TQM) and work of Philip Crosby.
 Background

• Under active development for 15+ years,

ongoing…
• Has gained significant interest among non-
DoD software vendors.
• All documents are public, and many are free.
• Known as SW-CMM or CMM.
 What is CMM?
• High-quality SW organizations are different from low-
quality orgs.
• CMM tries to capture and describe these differences.
• CMM strives to create software development
organizations that are “mature”, or more mature
than before applying CMM.
• Describes five levels of SW process maturity.
• Includes lots of detail about each level – we will look
at some of it.
 How to use CMM
• Hire an officially certified CMM Assessor to conduct a
formal evaluation.
– To win government software contracts.
– To find high-quality software subcontractors. (SA-CMM)
– For pure development shops, to impress clients with your
quality. (India)
• Send your own people to official CMM training, then
conduct internal assessments.
– For a large organization where software process
improvements have a big payoff.
 How to use CMM

• Use CMM as a set of suggestions and apply as

you see fit.
– Every other software development organization,
of all sizes.
 Level 1 – Initial
• Team tackles projects in different ways each time
• Can have strong successes, but may not repeat
• Some time/cost estimates are accurate, many far off
• Success comes from smart people doing the right things
• Hard to recover from good people leaving
• Frequent crises and "firefighting.” (Many believe this is
standard for SW development. CMM says NO.)
• Most SW development organizations are Level 1.
• Estimating curve, process diagram.
 Level 2 – Repeatable
• Key areas
– Requirements management
– Software project planning
– Project tracking and oversight
– Subcontracts management
– Quality assurance
– Configuration management
• Usually takes 18+ months. (Some ask for Level 1.5.)
• Estimating curve
• Process diagram
 Level 3 – Defined
• Key areas. Level 2, plus…
– Organization-wide process focus
– Organization-wide process definition
– Training program in above
– Integrated software management (above applied per
project)
– Software product engineering (coding, etc.)
– Inter-group coordination
– Peer reviews
• Estimating curve
• Process diagram
 Level 4 – Managed

• Key areas. Level 3, plus…

– Quantitative process management (data
gathering)
– Quality management (data-driven quality
improvement)
• Estimating curve
• Process diagram
 Level 5 – Optimizing

• Key areas. Level 4, plus…

– Defect prevention
– Technology change management (bring in new
methods)
– Process change management (improve processes)
• Estimating curve
• Process diagram
 Problems with CMM

• It is a goal, not a method

• Doesn’t say anything about software!
• Doesn’t help in a crisis
• Only for repetitive tasks
 CMM is a goal, not a method
• Organizations often look to CMM as a method or formula for
improvement
– Tempting to want easy answers.
• CMM is actually a management framework, with many details
left out
– Example: “You must have peer reviews.” But how should the reviews
be run?
• If you say, "we do CMM just like the book", you aren't doing
CMM
• To use CMM, you have to think
– You must be flexible, be creative, and integrate the goals of CMM with
the realities of your business.
 CMM is a goal, not a method

• Related to this point, some organizations are

rigid about mandating CMM to their
employees
• This has given CMM a bad reputation as an
onerous, inflexible method
• The problem here (usually) is
misunderstanding CMM, not its rigidity
 Not about software!
• CMM is, by design, a model for managing software
projects
– They claim most software failures are due to management
problems rather than technical barriers (I agree)
• But CMM goes too far in this direction
• An organization could write lousy code (consistently)
and be rated highly by CMM
• This is counter-intuitive, since good code is the goal
of software development
 Does not help in a crisis
• CMM does not help projects that are in crisis right
now
– Trying to apply it then would make things worse
• Unfortunately, this is often when companies look for
help with their software processes
• Analogy: For long-term cardiac health…
– Eat lots of fruits and veggies, quit smoking, get exercise,
reduce stress
• But suppose you are having a heart attack now. Will
these actions help?
– It is too late for preventive measures. You need some
other kind of intervention.
 Only for repetitive tasks
• CMM is based on re-using past results for future
software projects
– In management activities, quality measurements,
development processes
• But, this only makes sense for relatively repetitive
projects
– Example: MS Word team creating V7 after V1-6
• To create brand-new software of unknown size, with
unknown hurdles, using human creativity, CMM is
clearly not the right model.
CMMI MODEL
 What is a CMM?
• Capability Maturity Model:
A reference model of mature practices in a specified discipline,
used to assess a group’s capability to perform that discipline
• CMMs differ by
– Discipline (software, systems, acquisition, etc.)
– Structure (staged versus continuous)
– How Maturity is Defined (process improvement path)
– How Capability is Defined (institutionalization)

64
 So Many Models, So Little
Time
• Different structures,
Software formats, terms, ways of
EIA 731
CMM measuring maturity
• Causes confusion,
Systems especially when using
Engr more than one model
CMM People • Hard to integrate them
CMM in a combined
IPD Software improvement program
CMM Acq • Hard to use multiple
CMM models in supplier
selection
Systems
Security
65
Engr CMM
 Bridging the Divide
CMMI:
• Integrates systems and
software disciplines into
one process
improvement
framework.
• Provides a framework
for introducing new
disciplines as needs
arise.
The Next Step Is CMM Integration
• The CMM Integration Project was formed to
– build an initial set of integrated models
– improve best practices from source models based on
lessons learned
– establish a framework to enable integration of future
models
– create an associated set of appraisal and training products
• Collaborative endeavor (over 100 people
involved)
– Industry
– Government
– Software Engineering Institute (SEI)
 Enterprise-Wide Improvement
• CMMI enables organizations that want to
pursue process improvement in multiple
functional areas to do so with less additional
investment for each additional function.
– CMMI supports process integration and product
improvement.

– CMMI integrates multiple disciplines into one process-

improvement framework.

– CMMI provides a framework for introducing new

disciplines as needs arise.
 Bodies of Knowledge Captured in CMMI Models

•An organization selects the bodies of

knowledge most relevant to achieving its
business objectives. Bodies of knowledge*
available in CMMI models include
–software engineering(SW)
–systems engineering(SE)
–integrated product and process development (IPPD)
–supplier sourcing (SS)
 Software Engineering (SW)
• SW covers the development of software
systems
• SW focus on applying systematic, disciplined,
and quantifiable approaches to the
– development,
– operation
– maintenance

70
 System Engineering (SE)
• Systems engineering covers the development
of total systems, which may or may not
include software
• Systems engineers focus on transforming
customer needs, expectations, and constraints
into product solutions and supporting these
product solutions throughout the life of the
product

71
 Integrated Product & process
development (IPPD)
• IPPD is a systematic approach that achieves a
timely collaboration of relevant stakeholders
throughout the life of the product to better
satisfy customer needs, expectations, and
requirements

72
 Supplier sourcing (SS)
• As work efforts become more complex,
projects may use suppliers to perform
functions or add modifications to products
that are specifically needed by the project.
When those activities are critical, the project
benefits from enhanced source analysis and
from monitoring supplier activities before
product delivery

73
 CMMI Models
Source Models
• Capability Maturity Model
for Software V2, draft C
(SW-CMM V2C)
• EIA Interim Standard 731,
System Engineering
Capability Model (SECM)
• Integrated Product
• Combined System Engineering / Software
Development Capability Engineering model
Maturity Model, draft V0.98
(IPD-CMM) • Can be applied to:
– Just the software engineering projects in
an organization
– Just the system engineering projects in
an organization
– Both
– IPPD/SS can be used in either/both
74
 Understanding CMMI
Representations
• There are two types of representations in the
CMMI models:
– staged
– Continuous
• A representation allows an organization to
pursue different improvement objectives
• The organization and presentation of the data
are different in each representation. However,
the content is the same.
75
 Staged Representation
• Provides a proven sequence of improvements,
each serving as a foundation for the next
• Permits comparisons across and among
organizations by the use of maturity levels
• Provides an easy migration from the SW-CMM to
CMMI
• Provides a single rating that summarizes appraisal
results and allows comparisons among
organizations
Indicates maturity of an organization’s
standard process -- to answer, “What is a
good order for approaching improvement
across the
76 organization?”
CMMI Model Representations

77
 Maturity Levels
• A maturity level is a well-defined evolutionary
plateau of process improvement.
• There are five maturity levels.
• Each level is a layer in the foundation for
continuous process improvement using a
proven sequence of improvements, beginning
with basic management practices and
progressing through a predefined and proven
path of successive levels.
78
 The Maturity Levels
Optimizing
5 Focus on continuous process
improvement

Quantitatively
4 Process measured Managed
and controlled

Defined
3 Process characterized for
the organization and is
proactive

Managed
2 Process characterized for
projects and is often reactive

Initial
1 Process unpredictable,
poorly controlled, and
reactive

79
 Maturity Levels Should Not
Be Skipped
• Each maturity level provides a necessary foundation
for effective implementation of processes at the
next level.
– Higher level processes have less chance of success
without the discipline provided by lower levels.
– The effect of innovation can be obscured in a
noisy process.
• Higher maturity level processes may be performed
by organizations at lower maturity levels, with the
risk of not being consistently applied in a crisis.
 Continuous Representation
• Allows you to select the order of improvement that
best meets your organization’s business objectives
and mitigates your organization’s areas of risk
• Enables comparisons across and among
organizations on a process-area-by-process-area
basis

Indicates improvement within a single

process area -- to answer, “What is a good
order for approaching improvement of this
process area?”
 Capability Levels
• A capability level is a well-defined evolutionary
plateau describing the organization’s capability
relative to a process area.
• There are six capability levels.
• For capability levels 1-5, there is an associated
generic goal.
• Each level is a layer in the foundation for continuous
process improvement.
• Thus, capability levels are cumulative, i.e., a higher
capability level includes the attributes of the lower
levels. 82
 The Capability Levels

5 Optimizing
4 Quantitatively Managed
3 Defined
2 Managed
1 Performed
0 Incomplete

83
 CMMI in a Nutshell
• A CMMI model provides a structured view of
process improvement across an organization

• CMMI can help

– set process improvement goals and priorities
– provide guidance for quality processes
– provide a yardstick for appraising current
practices
TQM & CULTURE
 The greatest waste of our natural
resources is the number of people
who never achieve their potential.
Aim so High Get out of that slow lane.
That You’ll Shift into the fast lane.
If you think You can’t, You won’t,
If you think You can, there’s a good
Never Be Bored chance you will.
Even making the effort will make
you feel like a new person.
Reputation are made by searching
for things that can’t be done and
doing them.
Aim low: BORING.
Aim high: SOARING.
Managerial Observation
“Management is not about the
preservation of the status quo.
It is about maintaining the
highest rate of change that the
organization and the people in
it can stand”
PERCEPTION OF TQM: Theory and Practice
[Core parameters of TQM in an organisation .]
Organization wide Customer
Stakeholder focus
focus

Employee Continuous
Involvement Improvement

Training and
TQM Top down
Implementation
Education
PARAMETERS Requires
Teamwork resources

Empowerment Management
by fact

Long term
phenomenon Techniques Integrated
driven approach
Organizational Pursuits
•Productivity improvement
•Quality improvement
•Cost reduction
•Results improvement
•Problem solving
•Process improvement
•Employee empowerment
•Team building
•Customer satisfaction
 TQM
is an
Organization wide approach
towards
Quality
which results in
Performance Excellence
in meeting
Customers
as well as
Stake Holders
requirements by doing the
Right Things Right at First Time
and
Every Time
 Quality in
Quality in Quality in Dealing
Products Systems

Quality in
Quality in
Delivery
Services

Quality in Q Quality in
Achievement
Production

Quality in
Quality in
Procurement
Maintenance
Quality in
Quality in Living Quality in
Management Payment
 ROAD MAPS FOR VICTORY

Entire organization must embrace it.

Approach must be understood, advocated & supported

Approach must be owned by the organization

Approach should represent a total, systematic, integrated,

consistent, organization wide perspective focussed.

Foundation of basic business ethics must underlie all efforts.

Integrity, trust, respect & fairness must never be violated.

Everyone in the organization must continually foster an

unswaying focus,

open communication channels & strong sense of belonging.

 Internal Customer orientation
• A pre-requisite for external customer delight
• Total Employee involvement
• Culture of Empowerment and team work
• Clear communication Channel (Up-Down)
• Culture of Openness and Trust
• Job-holders become Job Owners
• High Motivation
SIX GOLDEN RULES FOR GOOD INTERPERSONAL
RELATIONSHIP

• Understanding the Individual

• Attending to the Little things
• Keeping Commitments
• Clarifying the Expectations
• Showing Personal Integrity
• Apologizing sincerely when you make a
mistake or misunderstood/ hurt somebody
 Obstacles to Implementing TQM

• Lack of a company-wide definition of quality.

• Lack of a formalized strategic plan for change.
• Lack of a customer focus.
• Poor inter-organizational communication.
• Lack of real employee empowerment.
• Lack of employee trust in senior management.
• View of the quality program as a quick fix.
• Drive for short-term financial results.
• Politics and turf issues.