TOTAL QUALITY MANAGEMENT:TQM

Origins, Evolution & key elements

What is Quality?

Quality is “fitness for use”

(Joseph Juran)

Quality is “conformance to requirements”

(Philip B. Crosby)

Quality of a product or services is its ability to satisfy the needs and expectations of the customer

Evolution of Quality Management

Inspection

Quality Control

Quality Assurance

TQM

Salvage, sorting, grading, blending, corrective actions, identify sources of non-conformance

Develop quality manual, process performance data, self-inspection, product testing, basic quality planning, use of basic statistics, paperwork control.

Quality systems development, advanced quality planning, comprehensive quality manuals, use of quality costs, involvement of non-production operations, failure mode and effects analysis, SPC.

Policy deployment, involve supplier & customers, involve all operations, process management, performance measurement, teamwork, employee involvement.

Deming’s view of a production as a system

Consumer Research

Design & redesign

Receipt & test of materials

Suppliers, materials & equipment

Production, assembly, inspection

Distribution Consumers

Test of processes, machines, methods, cost

Improve Quality

Productivity improves

Provide jobs and more jobs

Deming’s Chain Reaction

Cost decreases because of less rework, fewer mistakes, fewer delays, snags, better use of machine time and materials

Stay in business

Capture the market with better quality and lower price

PLAN

CHECK

DOACT

The Deming Cycle or PDCA Cycle

Plan a change to the process. Predict the effect this change will have and plan how the effects will be measured

Implement the change on a small scale and measure the effects

Adopt the change as a permanent modification to the process, or abandon it.

Study the results to learn what effect the change had, if any.

W. Edwards Deming’s 14 Points

Create constancy of purpose towards improvement of product and services.

Adopt the new philosophy. We can no longer live with commonly accepted levels of delays, mistakes, defective workmanship.

Cease dependence on mass inspection. Require, instead, statistical evidence that quality is built in.

End the practice of awarding business on the basis of price tag.

1)

2)

3)

4)

W. Edwards Deming’s 14 Points

Find problems. It is management’s job to work continually on the system.

Institute modern methods of training on the job.

Institute modern methods of supervision of production workers. The responsibility of foremen must be changed from numbers to quality.

Drive out fear that everyone may work effectively for the company.

5)

6)

7)

8)

Break down barriers between departments.

Eliminate numerical goals, posters and slogans for the workforce asking for new levels of productivity without providing methods.

Eliminate work standards that prescribe numerical quotas.

Remove barriers that stand between the hourly worker and his right to pride of workmanship.

9)

10)

11)

12)

W. Edwards Deming’s 14 Points

Institute a vigorous programme of education and retraining.

Create a structure in top management that will push everyday on the above 13 points.

13)

14)

W. Edwards Deming’s 14 Points

Deming’s System of Profound Knowledge

Appreciation for system

Knowledge about variation

Theory about knowledge

Knowledge of psychology

Joseph M. Juran and the Cost Of Quality

2 types of costs:

Unavoidable Costs: preventing defects (inspection, sampling, sorting, QC)

Avoidable Costs: defects and product failures (scrapped materials, labour for re-work, complaint processing, losses from unhappy customers

“Gold in the Mine”

Joseph M. Juran and the Cost Of Quality

100% defective Point of “Enough quality”

Total Costs

Unavoidable costs

Avoidable costs

Costs

What is TQM?

Constant drive for continuous

improvement and learning.

Concern for employee

involvement and development

Management by Fact

Result FocusPassion to deliver customer value /

excellence

Organisation response ability

Actions not just words

(implementation)Process

Management

Partnership perspective (internal / external)

Learning

LEARNING AND TQM

Process Improvement

Quality Improvement

Customer Satisfaction

Shareholder Satisfaction

Employee Satisfaction

BASIC PRINCIPLES OF TQM

Approach Management Led

Scope Company Wide

Scale Everyone is responsible for Quality

Philosophy Prevention not Detection

Standard Right First Time

Control Cost of Quality

Theme On going Improvement

FOUR KEY PRINCIPLESFOUR KEY PRINCIPLES

•Measure quality so you can affect it

•Focus on a moving customer

•Involve every employee

•Think long term - Act short term

THE CASE FOR QUALITY

1 Success of competitors who take quality seriously

2 Rising expectations of customers

3 Quality differentiates companies from the competition

4 Narrowing of supplier bases by quality conscious companies

.

5 Growing evidence that growth in market share comes from sustained quality.

6 Cost advantages

7 High cost of catastrophic failure

8 Inspection poor substitute for right first time

THE CASE FOR QUALITY

SEVEN DEADLY SINS OF TQMSEVEN DEADLY SINS OF TQM

•Flight to nowhereFlight to nowhere

•One size fits allOne size fits all

•Substituting TQM for leadershipSubstituting TQM for leadership

•Inside - Out indicatorsInside - Out indicators

•Mandatory religionMandatory religion

•Quality kept as a separate activityQuality kept as a separate activity

•Teaching to the testTeaching to the test

Booz-Allen & HamiltonBooz-Allen & Hamilton

IS QUALITY A SOUND INVESTMENT?Year Company Stock Growth (Oct 94)1988 Motorola 373.0%1988 Westinghouse (CNFD) - 49.6%1989 Xerox (BPS) 75.9%1990 General Motors 1.6%1990 Federal Express 10.6%1990 IBM (IBM Rochester) - 34.9%1991 Selectron 526.9%1992 AT&T (UCS) 32.2%1992 AT&T (TSBU) 32.2%1992 Texas Instruments (DS&E) 106.8%1993 Zyta 8.4%1994 Eastman Chemical 18.5%

Total Stock Value £23016 (91.8% growth)Standard & Poor 500 Stock value £15911 (32.6% growth)Source: US Dept. of Commerce Study 1995

Project Quality AssuranceProject Quality AssuranceProject Quality PlanProject Quality Plan

PQPPQP

Q

Project Quality PlanDefinitionDefinition

• The project quality plan is a documented description of the project management system and must be approved by the AEM, in part to demonstrate his commitment to quality but primarily it is the means by which technical and administrative authorities are delegated through out the project.

• All projects shall have quality plan.

• Project engineer shall develop and update the PQP..

Relationships between project quality plans

PQPADCO

PQPDesigner

PQPconstructioncontractor

Suppliersquality plans

Preparation of a project quality plan

Confirm project objectives

Plan the project allocate resources

Identify critical activities

Define standards and controls

Audits

Close-out

AEM/PE/HEAEM/PE/HE

AEM/PEAEM/PE

HE/HC/PEHE/HC/PE

DE/CE/PEDE/CE/PE

QA/SCE/PEQA/SCE/PE

PEPE

CONTENTS OF TYPICAL PROJECT QUALITY PLAN

1. COVER SHEET + REVISION CONTROL

1.1 Document purpose

1.2 Policy statement

2.INTRODUCTION

2.1 Background

2.2 Project Scope

2.3 Project Objectives & Constraints

2.4 QA Standards (Consider putting in Document purpose)

CONTENTS OF TYPICAL PROJECT QUALITY PLAN

3. EXECUTION STRATEGY

3.1 Project Management risks.

3.2 Critical Activities.

3.3 Control Strategy.

3.4 Cost & Schedule.

3.5 HSE Plan.

3.6 Commissioning & Hand-over.

CONTENTS OF TYPICAL PROJECT QUALITY PLAN

4.ORGANISATION, RESPONSIBILITES & INTERFACES

4.1 Table with names

4.2 External interfaces

4.3 Definition of specific roles and responsibilities.

5. QUALITY REFERENCE SYSTEM

5.1 Controlling Documents

5.2 Applicable Procedures (Check list based)

6. INTEGRATION OF CONTRACTORS & SUPPLIERS

6.1 Define Contractor interfaces.

6.2 Contractor + Supplier Quality System.

CONTENTS OF TYPICAL PROJECT QUALITY PLAN

7.AUDITS & REVIEWS

This section should include schedule for:

* PHSER * HSEIA

* HAZOP * VE

* TECHNICAL REVIEWS * QA AUDITS

* LESSONS LEARNT REVIEW.

8. QUALITY IMPROVEMENT

8.1 LESSONS LEARNT

8.2 CLOSE-OUT REPORT

CONTENTS OF TYPICAL PROJECT QUALITY PLAN

PREPARATION & APPROVALS:

PREPARE: PE, PM and / or Team Leaders

ENDORSE: AEM

APPROVE: EPM

Timing

The nominated PE, PM or Team leader shall develop the PQP

immediately after receiving the PID document and approval of the

project in the Business Plan.

Quality is a Journey, not a Destination