Total Quality Management Concepts, Philosophies and Frameworksprepared bymer Saatiolu

Effective management of quality requires the execution of three activities:Quality PlanningQuality AssuranceQuality Control and Improvement

Quality PlanningStrategic activity and it is just as vital to - Long term business success - Product development plan - Financial Plan - Marketing Plan - Utilization of human resourcesIdentify customer needs (voice of the customer)Products and services must be developedDetermine how these products and services are realizedPlanning for quality improvement

Quality AssuranceSet of activities that ensures - the quality levels of products and services are properly maintained - supplier and customer quality issues are properly resolvedDocumentation of the quality system which involves four components - policy (what is to be done) - procedures (focus on the methods and personnel) - work instructions - specifications - records (documentation of policies, procedures, work instructions)Development, maintenance and control of documentation

Quality Control and ImprovementSet up activities used to ensure that the products and services meet requirement and are improved on a continous basisSPC and design of experiments are the major toolsQuality improvement is often done on a project-by project basis

Leaders in the Quality RevolutionW. Edwards DemingJoseph M. JuranPhilip B. CrosbyArmand V. FeigenbaumKaoru IshikawaGenichi Taguchi

1-4.1 Quality Philosophies and Management StrategiesW. Edwards Deming

Taught engineering, physics in the 1920s, finished PhD in 1928Met Walter Shewhart at Western ElectricLong career in government statistics, USDA, Bureau of the CensusDuring WWII, he worked with US defense contractors, deploying statistical methodsSent to Japan after WWII to work on the census

DemingDeming was asked by JUSE to lecture on statistical quality control to managementJapanese adopted many aspects of Demings management philosophyDeming stressed continual never-ending improvementDeming lectured widely in North America during the 1980s; he died 24 December 1993

Deming Chain ReactionImprove qualityCosts decreaseProductivity improvesIncrease market share with better quality and lower pricesStay in businessProvide jobs and more jobs

Demings System of Profound KnowledgeAppreciation for a systemUnderstanding variationTheory of knowledgePsychology

SystemsMost organizational processes are cross-functionalParts of a system must work togetherEvery system must have a purposeManagement must optimize the system as a whole

Theory of KnowledgeKnowledge is not possible without theoryExperience alone does not establish a theory, it only describesTheory shows cause-and-effect relationships that can be used for prediction

PsychologyPeople are motivated intrinsically and extrinsicallyFear is demotivating Managers should develop pride and joy in work

Demings 14 Points1. Create constancy of purpose toward improvement 2. Adopt a new philosophy, recognize that we are in a time of change, a new economic age3. Cease reliance on mass inspection to improve quality4. End the practice of awarding business on the basis of price alone5. Improve constantly and forever the system of production and service6. Institute training7. Improve leadership, recognize that the aim of supervision is help people and equipment to do a better job8. Drive out fear9. Break down barriers between departments

14 Points contd10. Eliminate slogans and targets for the workforce such as zero defects11. Eliminate work standards12. Remove barriers that rob workers of the right to pride in the quality of their work13. Institute a vigorous program of education and self-improvement14. Put everyone to work to accomplish the transformationNote that the 14 points are about change

Demings Deadly DiseasesLack of constancy of purposeEmphasis on short-term profitsPerformance evaluation, merit rating, annual reviewsMobility of managementRunning a company on visible figures aloneExcessive medical costs for employee health careExcessive costs of warrantees

The Deming Wheel(or P-D-C-A Cycle)Ch 3 - 13 2000 by Prentice-Hall IncRussell/Taylor Oper Mgt 3/e

Identify problemDevelop plan for improvement

Implement plan on test basis

Is the plan working

Institutionalize improvementContinue cycle1. Plan2. Do3. Study / Check4. Act

Joseph M. JuranBorn in Romania (1904), immigrated to the USWorked at Western Electric, influenced by Walter ShewhartEmphasizes a more strategic and planning oriented approach to quality than does DemingJuran Institute is still an active organization promoting the Juran philosophy and quality improvement practices

The Juran TrilogyPlanningControlImprovement

These three processes are interrelatedControl versus breakthroughProject-by-project improvement

Phillip B. CrosbyQuality is free . . . :

Quality is free. Its not a gift, but it is free. What costs money are the unquality things -- all the actions that involve not doing jobs right the first time.

Philip B. CrosbyAbsolutes of Quality Management:Quality means conformance to requirementsProblems are functional in natureThere is no optimum level of defectsCost of quality is the only useful measurementZero defects is the only performance standardwww.philipcrosby.com

A.V. FeigenbaumThree Steps to QualityQuality Leadership, with a strong focus on planningModern Quality Technology, involving the entire work forceOrganizational Commitment, supported by continuous training and motivation

Kaoru IshikawaInstrumental in developing Japanese quality strategyInfluenced participative approaches involving all workersAdvocated the use of simple visual tools and statistical techniques

Genichi TaguchiPioneered a new perspective on quality based on the economic value of being on target and reducing variation and dispelling the traditional view of conformance to specifications:

Total QualityPeople-focused management systemFocus on increasing customer satisfaction and reducing costsA systems approach that integrates organizational functions and the entire supply chainStresses learning and adaptation to changeBased on the scientific method

Principles of Total QualityCustomer and stakeholder focusParticipation and teamworkProcess focus and continuous improvement...supported by an integrated organizational infrastructure, a set of management practices,and a set of tools and techniques

Customer and Stakeholder FocusCustomer is principal judge of qualityOrganizations must first understand customers needs and expectations in order to meet and exceed themOrganizations must build relationships with customersCustomers include employees and society at large

Participation and TeamworkEmployees know their jobs best and therefore, how to improve themManagement must develop the systems and procedures that foster participation and teamworkEmpowerment better serves customers, and creates trust and motivationTeamwork and partnerships must exist both horizontally and vertically

Process Focus and Continuous ImprovementA process is a sequence of activities that is intended to achieve some result

Continuous Improvement Enhancing value through new products and servicesReducing errors, defects, waste, and costsIncreasing productivity and effectivenessImproving responsiveness and cycle time performance

Infrastructure, Practices, and ToolsLeadership Strategic HRM Process Data and information Planning mgt. managementPerformance Training appraisalTrend chartToolsPracticesInfrastructure

TQ InfrastructureCustomer relationship managementLeadership and strategic planningHuman resources managementProcess managementData and information management

Quality Systems and Standards

ISO 9001:2000Standart has eight clausesScopeNormative ReferencesDefinitionsQuality management systemsManagement systemResource managementProduct (or service) realizationMeasurement, analysis and improvement

ISO 9001:2000 contdClauses 4 through 8 are the most important, and their key component and requirements are shown below tableISO Certification process focuses heavily on quality assurance

ISO 9001:2000 requirementsQuality management systemsManagement systemResource managementProduct (or service) realizationMeasurement, analysis and improvement

Quality Management SystemGeneral requirements The organization shall establish, document, implement, and maintain a quality management system and continually improve its effectiveness in accordance with the requirements of the international standart.General Documentation Quality management system documentation will include a quality policy and quality objectives; a quality manual; documented procedures; documents to ensure effective planning, operation, and control of processes; and records required by the international standart

Management SystemManagement Commitment - Communication of meeting customer, statutory, and regulatory requirements - Establishing a quality policy - Establishing quality objectives - Conducting management reviews - Ensuring that resources are available

Management System contdTop management shall ensure that customer requirements are determined and are met with the aim of anhancing customer satisfactionManagement shall establish a quality policyManagement shall ensure that quality objectives shall be established. Management shall ensure that planning occurs for the quality management systemManagement shall ensure that responsibilities and authorities are defined and communicatedManagement shall review the quality management system at regular intervals

Resource ManagementThe organization shall determine and provide needed resourcesWorkers will be provided necessary education, training, skills, and experienceThe organization shall determine , provide, and maintain the infrastructure needed to achieve conformity to product requirementsThe organization shall determine and manage the work environment needed to achieve conformity to product requirements

Product or Service RealizationThe organization shall plan and develop processes needed for product or service realizationdetermine requirements as specified by customersplan and control the design and development for its products or servicesensure that a purchased material or product conforms to specified purchase requirementsplan and carry out production and service under controlled conditionsdetermine the monitoring and measurements to be undertaken and the monitoring and measuring devices needed to provide evidence of conformity of products or services to determined requirement

Measurement, Analysis, and ImprovementThe organization shall plan and implement the monitoring, measurement, analysis, and improvement process for continual improvement and conformity to requirementsmonitor information relating to customer perceptionsensure that product that does not conform to requirements is identified and controlled to prevent its unintended use or delivery

Measurement, Analysis, and Improvement contdThe organization shall determine, collect, and analyze data to demonstrate the suitability and effectiveness of the quality management system, including- Customer satisfaction- Conformance data- Trend data- Supplier dataContinually improve the effectiveness of the quality management system

The Malcolm Baldrige National Quality Award The MBNQA process is a valuable assessment tool See Table 1-3 for Performance Excellence Criteria and point values

Sheet1

1Leadership120

1.1 Leadership System.......................................................80

1.2 Company Responsibility and Citizenship.........................40

2Strategic Planning85

2.1 Strategy Development Process............................................40

2.2 Company Strategy...............................................................45

3Customer and Market Focus85

3.1 Customer and Market Knowledge.........................................40

3.2 Customer Satisfaction and Relationship Enchantment............45

4Information and Analysis90

4.1 Measurement and Analysis of Performance..........................50

4.2 Information Management.....................................................40

5Human Resource Focus80

5.1 Work Systems....................................................................35

5.2 Employee Education, Traning, and Development...................25

5.3 Employee Well-Being and Satisfaction.................................25

6Process Management85

6.1 Management of Product and Service Processes...................45

6.2 Management of Business Processes....................................25

6.3 Management of Support Processes......................................15

7Business Results450

7.1 Customer Results................................................................125

7.2 Financial and Market Results...............................................125

7.3 Human Resource Results.....................................................80

7.4 Organization Results...........................................................120

Total Points1000

Sheet2

Sheet3

The EFQM Excellence Model

LeadershipLeaders develop the mission, vission, values and ethics and are role models of a culture of Excellence Leaders are personally involved in ensuring the organizations management system is developed, implemented and continously improvedLeaders interact with customers, partners and representatives of soceityLeaders reinforce a culture of excellence with the organizations peopleLeaders identify and champion organization change

Policy and StrategyPolicy and Strategy are based on the present and future needs and expectations of stakeholdersPolicy and Strategy are based on information from performance measurement, research, learning and external related activitiesPolicy and Strategy are developed, reviewed and updated Policy and Strategy are communicated and deployed through a framework of key processes

PeoplePeople resources are planned, managed and improvedPeoples knowledge and compentencies are identified, developed and sustainedPeople are involved and empoweredPeople and the organization have a dialoguePeople are rewarded, recognised and cared for

Partnerships and ResourcesExternal Partnerships are managedFinances are managedBuildings, equipment and materials are managedTechnology is managedInformation and knowledge are managed

ProcessesProcesses are systematically designed and managedProcesses are improved, as needed, using innovation in order to fully satisfy and generate increasing value for customers and other stakeholdersProducts and Services aredesigned and developed based on customer needs and expectationsProducts and Services are produced, delivered and serviced Customer relationships are managed and enhanced

Customer, People, Soceity ResultsPerception MeasuresPerformance Measures

Key Performance ResultsKey Performance OutcomesKey Performance Indicators

Six SigmaUse of statistics & other analytical tools has grown steadily for over 80 years

Six-Sigma (origins at Motorola in 1987, expanded impact during 1990s to present)

Focus of Six Sigma is on Process Improvement with an Emphasis on Achieving Significant Business ImpactA process is an organized sequence of activities that produces an output that adds value to the organizationAll work is performed in (interconnected) processesEasy to see in some situations (manufacturing)Harder in othersAny process can be improvedAn organized approach to improvement is necessaryThe process focus is essential to Six Sigma

What is Six Sigma?

Why Quality Improvement is Important: A Simple Example A visit to a fast-food store: Hamburger (bun, meat, special sauce, cheese, pickle, onion, lettuce, tomato), fries, and drink.

This product has 10 components - is 99% good okay?

Six Sigma FocusInitially in manufacturing Commercial applicationsBankingFinancePublic sector ServicesDFSS Design for Six SigmaOnly so much improvement can be wrung out of an existing systemNew process designNew product design (engineering)

Some Commercial ApplicationsReducing average and variation of days outstanding on accounts receivableManaging costs of consultants (public accountants, lawyers)Skip tracingCredit scoringClosing the books (faster, less variation)Audit accuracy, account reconciliation ForecastingInventory managementTax filingPayroll accuracy

Six SigmaA disciplined and analytical approach to process and product improvementSpecialized roles for people; Champions, Master Black belts, Black Belts, Green BeltsTop-down driven (Champions from each business)BBs and MBBs have responsibility (project definition, leadership, training/mentoring, team facilitation)Involves a five-step process (DMAIC) : Define MeasureAnalyzeImproveControl

What Makes it Work?Successful implementations characterized by:Committed leadershipUse of top talentSupporting infrastructureFormal project selection processFormal project review processDedicated resourcesFinancial system integrationProject-by-project improvement strategy (borrowed from Juran)

The Process Improvement Triad: DFSS, Lean, and DMAICOVERALL PROGRAMSLEANVariation ReductionPredictabilityFeasibilityEfficiencyCapabilityAccuracyFlow Mapping Waste EliminationCycle TimeWIP ReductionOperations and Design LeanLead-timeCapableDMAICELIMINATE WASTE, IMPROVE CYCLE TIMEDESIGN PREDICTIVE QUALITY INTO PRODUCTSELIMINATE DEFECTS, REDUCE VARIABILITYDFSSRobustRequirements allocationCapability assessmentRobust DesignPredictable Product QualityDesign for Six SigmaThe I in DMAIC may become DFSS

DFSS Matches Customer Needswith CapabilityMean and variability affects product performance and costDesigners can predict costs and yields in the design phaseConsider mean and variability in the design phaseEstablish top level mean, variability and failure rate targets for a designRationally allocate mean, variability, and failure rate targets to subsystem and component levelsMatch requirements against process capability and identify gaps Close gaps to optimize a producible designIdentify variability drivers and optimize designs or make designs robust to variabilityProcess capability impact design decisionsDFSS enhances product design methods.

Lean Focuses on Waste EliminationDefinitionA set of methods and tools used to eliminate waste in a processLean helps identify anything not absolutely required to deliver a quality product on time.

Benefits of using LeanLean methods help reduce inventory, lead time, and costLean methods increase productivity, quality, on time delivery, capacity, and sales

DMAIC Solves Problems by UsingSix Sigma Tools DMAIC is a problem solving methodology

Use this method to solve problems:Define problems in processesMeasure performanceAnalyze causes of problemsImprove processesremove variations and nonvalue-added activitiesControl processes so problems do not recur11

Six SigmaDMAIC is closely related to the Shewhart cycle (variously called the Deming cycle, or the PDCA cycle)