11. TQM
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Quality ManagementQuality Management
ObjectivesObjectives
be able to understand modern conceptsbe able to understand modern concepts
of quality and dimensions of qualityof quality and dimensions of qualitybe able to discuss employeebe able to discuss employee
involvement and JIT in Total Qualityinvolvement and JIT in Total Quality
ManagementManagement
be able to describe basic quality toolsbe able to describe basic quality tools
Introduction to ISOIntroduction to ISO
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What does the term QUALITYWhat does the term QUALITYmean?mean?
QUALITYQUALITY
is the ability of ais the ability of aproduct or service to consistentlyproduct or service to consistently
meet or exceed customermeet or exceed customer
expectations.expectations.
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Traditional vs. Modern Concept ofTraditional vs. Modern Concept of
Quality ControlQuality ControlTraditionalTraditional ModernModern
One person, smallOne person, smallgroupgroup
Include everyone from rawInclude everyone from rawmaterial, productivity,material, productivity,
design, process, topdesign, process, topmanagementmanagement
Find mistakes afterFind mistakes aftercompletion, at the endcompletion, at the endof lineof line
Find where the mistakesFind where the mistakesmight occur, beforemight occur, beforecompletioncompletion
No specific methods,No specific methods,based on experiencebased on experience
Use statistical; controlUse statistical; controlcharts to monitorcharts to monitor
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Dimension of QualityDimension of Quality
PerformancePerformance main characteristics main characteristics Special FeaturesSpecial Features extra characteristics extra characteristics ConformanceConformance how well corresponds to how well corresponds to
expectationexpectation ReliabilityReliability consistency of performance without consistency of performance without
breakdownbreakdown DurabilityDurability useful life time useful life time
SafetySafety safe to use as directed safe to use as directed AestheticsAesthetics nice to look at nice to look at Service After SaleService After Sale handling of complaints, handling of complaints,
help lines and checking customer satisfactionhelp lines and checking customer satisfaction
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Consequences of Poor QualityConsequences of Poor Quality
Reputation & image will sufferReputation & image will suffer
Pay special attention to potential liabilityPay special attention to potential liability
due to injury, damage or even deathdue to injury, damage or even death
Rework have to be done, slow the processRework have to be done, slow the process
to accommodate rework, high scrapsto accommodate rework, high scraps
Increase cost of rework, scrap, repair &Increase cost of rework, scrap, repair &replacement, legal expensesreplacement, legal expenses
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Responsibility for QualityResponsibility for Quality
Top managementTop managementDesignDesignProcurementProcurementProduction/operationsProduction/operationsQuality assuranceQuality assurancePackaging and shippingPackaging and shippingMarketing and salesMarketing and salesCustomer serviceCustomer service
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Cost of QualityCost of Quality
Internal CostInternal Cost Failure cost: results from production of defectiveFailure cost: results from production of defective
parts before delivery (rework, scrap, downtime)parts before delivery (rework, scrap, downtime)
Appraisal cost: evaluating products (lab testing,Appraisal cost: evaluating products (lab testing,inspector)inspector)
Prevention cost: reducing potential for defectivePrevention cost: reducing potential for defective(training, awareness program)(training, awareness program)
External costExternal cost occur after delivery (liabilities, warranty, sued byoccur after delivery (liabilities, warranty, sued by
customer)customer)
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Quality CertificationQuality Certification
ISO 9000ISO 9000 Set of international standards on quality managementSet of international standards on quality management
and quality assurance, critical to internationaland quality assurance, critical to internationalbusinessbusiness
ISO 14000ISO 14000 A set of international standards for assessing aA set of international standards for assessing a
companys environmental performancecompanys environmental performance
Must go through process documenting proceduresMust go through process documenting proceduresThen onsite visit to verify, award certificate & series ofThen onsite visit to verify, award certificate & series of
auditsaudits
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Total Quality ManagementTotal Quality Management
New attitude towards quality using Three PhilosophiesNew attitude towards quality using Three Philosophies Continuous improvement KAIZENContinuous improvement KAIZEN Involvement of everyone in the organizationInvolvement of everyone in the organization Customer satisfactionCustomer satisfaction
Expands the traditional view of quality beyond lookingExpands the traditional view of quality beyond lookingonly at the quality of the final product or service but toonly at the quality of the final product or service but tolook at quality of every aspect of the processlook at quality of every aspect of the process
Not only on product, but also services e.g. banking,Not only on product, but also services e.g. banking,hospitalhospital
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Elements of TQMElements of TQM
Utilizes education & training everyoneUtilizes education & training everyone Encourages empowerment of the employees inEncourages empowerment of the employees in
the work place, team approachthe work place, team approach
Promote understanding & fulfilling the needs ofPromote understanding & fulfilling the needs ofcustomerscustomers
Define quality in term of customer requirementDefine quality in term of customer requirement Use statistical reasoning with data to solveUse statistical reasoning with data to solve
problems & to improveproblems & to improve View quality improvement as never ending questView quality improvement as never ending quest
to improve the processto improve the process
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Employee InvolvementEmployee Involvement
In every step of production process,In every step of production process,
involve directly with the systeminvolve directly with the system
Everyone must be responsible on theirEveryone must be responsible on their
workwork
Build communication network, employeesBuild communication network, employees
with supervisor (open minded, supportive)with supervisor (open minded, supportive)
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Relationship between TQM andRelationship between TQM and
Just-In-TimeJust-In-Time
JIT emphasizes continuous improvementJIT emphasizes continuous improvement
& enforces problem solving since design& enforces problem solving since design
to production stage; deliver just as neededto production stage; deliver just as needed
Target less inventory, less scrap, rework,Target less inventory, less scrap, rework,
reduce costreduce cost
Limits potential sources of error, give earlyLimits potential sources of error, give early
warning, produce in small batcheswarning, produce in small batches
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TQM Lead to Lower ProductionTQM Lead to Lower Production
CostCost
Emphasize the quality from supplier &Emphasize the quality from supplier &
distributordistributor
Reduce prevention cost ( less potential forReduce prevention cost ( less potential for
defective parts from employees)defective parts from employees)
Reduce cost of inspectionReduce cost of inspection
Reduce cost of rework, replacementReduce cost of rework, replacement
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Obstacles to Implementing TQMObstacles to Implementing TQM
Lack of:Lack of:Company-wide definition of qualityCompany-wide definition of quality
Strategic plan for changeStrategic plan for change
Customer focusCustomer focusReal employee empowermentReal employee empowerment
Emphasis on short-term financial resultsEmphasis on short-term financial results
Time to devote to quality initiativesTime to devote to quality initiatives
LeadershipLeadershipView of quality as a quick fixView of quality as a quick fix
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The PDSAThe PDSACycleCycle
Plan
Do
Study
Act
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The Process Improvement CycleThe Process Improvement Cycle
Implement theImproved process
Select a
process
Study/document
Seek ways to
Improve it
Design an
Improved process
Evaluate
Document
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Basic Quality ToolsBasic Quality Tools
There are a number of tools that can beThere are a number of tools that can be
used for problem solving and processused for problem solving and process
improvementimprovement
Tools aid in data collection andTools aid in data collection and
interpretation, and provide the basis forinterpretation, and provide the basis for
decision makingdecision making
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Basic Quality ToolsBasic Quality Tools
FlowchartsFlowcharts
Check sheetsCheck sheets
HistogramsHistogramsPareto ChartsPareto Charts
Scatter diagramsScatter diagrams
Control chartsControl charts
Cause-and-effect diagramsCause-and-effect diagrams
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FLOWCHARTFLOWCHART
Drive in check price self serve? to pumpshut offengine
walk to paystation
yes
no
check card transmit approved?turn onpump
yes
no
backto car
pumpgas
walk tobooth
wait
employee
totals
charges
check
accuracy
prepare
receipt
sign
copy
copy to
file
copy to
wallet
return to car
on the road
again
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CHECK SHEETSCHECK SHEETS
Body Defects
Paint
Dent
Wheels
Loose
Stuck
Monday
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PARETO ANALYSISPARETO ANALYSIS
80% of the
problems
may be
attributed to
20% of the
causes.
80% of the
problemsmay be
attributed to
20% of the
causes.
Smeared
print
N
umb
erof
defects
Off
center
Missing
label
Loose Other
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CONTROL CHARTCONTROL CHART
970
980
990
1000
1010
1020
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
UCL
LCL
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CAUSE-AND-EFFECT DIAGRAMCAUSE-AND-EFFECT DIAGRAM
Effect
MaterialsMethods
EquipmentPeople
Environment
Cause
Cause
Cause
Cause
Cause
CauseCause
Cause
CauseCause
Cause
Cause
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Benchmarking ProcessBenchmarking Process
Identify a critical process that needsIdentify a critical process that needs
improvingimproving
Identify an organization that excels in thisIdentify an organization that excels in this
processprocess
Contact that organizationContact that organization
Analyze the dataAnalyze the data Improve the critical processImprove the critical process
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Lets Recap!Lets Recap!
What are the dimensions of quality?What are the dimensions of quality?
Who responsibility for quality?Who responsibility for quality?
Name some of the basic quality tools.Name some of the basic quality tools.What are the consequences of poorWhat are the consequences of poor
quality?quality?
Which quality certificate involve withWhich quality certificate involve withenvironmental performance?environmental performance?
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SummarySummary
Understand the Concept of Total QualityUnderstand the Concept of Total Quality
ManagementManagement
Significant Impact of Total QualitySignificant Impact of Total Quality
Management in Modern ManufacturingManagement in Modern Manufacturing
Next class, we will have some calculationsNext class, we will have some calculations
in Statistical Quality Controlin Statistical Quality Control