Total Quality Management (TQM) presented by Dr. Eng. Abed...

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Islamic University, Gaza - Palestine

Department of Industrial Engineering

Total Quality Management (TQM)

presented by

Dr. Eng. Abed Schokry


Organizing for Quality: Learning Outcomes

After successful studying this chapter You must be ale to:

• Describe the history of Quality improvement• Discuss the concept of TQM how to organize for quality?• Describe different types of teams and How to build a team?• Solve problems using organizational approaches for

multidiscipline• Explain the relationship between human resources & TQM• Distinguish between a project team and a Quality circle team

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1-2. History of Quality Improvement

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1. Create constancy of purpose toward improvement

2. Adopt a new philosophy, recognize that we are in a time of change, a new economic age

3. Cease reliance on mass inspection to improve quality

4. End the practice of awarding business on the basis of price alone

5. Improve constantly and forever the system of production and service

6. Institute training

7. Improve leadership, recognize that the aim of supervision is help people and equipment to do a better job

Deming’s 14 Points


8. Drive out fear

9. Break down barriers between departments

10. Eliminate slogans and targets for the workforce such as zero defects

11. Eliminate work standards

12. Remove barriers that rob workers of the right to pride in the quality

of their work

13. Institute a vigorous program of education and self-improvement

14. Put everyone to work to accomplish the transformation

Deming’s 14 Points

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Organizing for quality

• ISO 9000/QS 9000• Continuous improvement• Six sigma - DMAIC• TQM - PDSA• Quality circles


Concept of TQM

• TQM foundation:– Any product, process, or service can be improved.– A successful organization is one that consciously seeks

and exploits opportunities for improvement at all levels.– The load bearing structure is customer satisfaction.– The watchword is continuous improvement.

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What must organizations do for quality to succeed

• “Organizations must adopt a cultural change that appreciates the primary need to meet customer requirements, implements a management philosophy that acknowledges this emphasis, encourages employee involvement, and embraces the ethic of continuous improvement.”

International Economic Conference Board Report: May 1990


Transition to quality culture at Xerox

TransitionTeam Training

Senior ManagementBehavior

XeroxCultureChange

Tools andProcesses Communication Reward and

Recognition

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Allaire’s approach

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Managing-by-process principles

1. Make all decision and perform all actions within the guidelines of the "what to's" of the core business processes and their impact on other core processes.

2. Establish owners for all core business processes and sub-processes.

3. Designate these owners as responsible for the maintenance and use of that process, with their reward tied to the successful functioning of that process for all Xerox personnel.

4. Empower the owners of the process with the responsibility for continuously improving those core processes, and reengineering them when necessary.


5. Constrain core process and sub-process owners from making changes to their core processes that may affect other core processes that are owned by other managers.

6. Designate responsibility for a change in a core process to the highest-level owner of a core process that is being changed because core sub-processes are being changed by lower-level process owners.

Managing-by-process principles (cont.)

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IBM’s market driven quality program

LeadershipVisionInvolvementPolicyManagement

SystemsInformationPlanningHuman resourceQuality assurance

Quality ResultsImproved qualityLower costs

Custom

erS

atisfaction

MarketSuccess

“Driver” SystemMeasuresof Progress Goal


IBM’s “new” CEQ initiative

“CEQ aims to introduce a commitment in organizations to embrace quality as a guiding principle that touches every phase of the software development and deployment cycle. Organizations must build quality in, not treat it as an afterthought. Every individual in an organization, from the business analyst to the IT operator, can improve application quality through vigilance and a shared sense of responsibility for business and customer success.”

(CEQ: Continuously Ensure Quality)

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What are some of the steps organizations must take?

• Effectively develop and communicate quality policy, procedures and requirements across all company functions.

• Mobilize resources to solve quality-related problems.• Effectively coordinate quality requirements with

suppliers. (feed forward)• Maintain direct contact with customers (feedback).


Communicating quality requirements

• Examples of formal communication:– Quality policy statement– Quality manuals– ISO 9000 quality standards

• Examples of informal communication:– Word of mouth– Management actions

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Quality - basic beliefs

Ford Quality is job one; there's a Ford in your future

Chrysler "If you find a better car, buy it!" (Spoken by Lee Iacocca)

Serta “We make the world's best mattress”

Caterpillar Strong dealer support; 24-hour spare parts support around the world

McDonalds Fast service, consistent quality

Sprint You can hear a pin drop


Quality - basic beliefs

• Lion Apparel - Continuous Improvement is a way of life at Lion.

• Sager Electronics - our constant goal is to ensure that the services provided meet or exceed our customers' expectations.

• Williams Advanced Materials - we are dedicated to providing ever improving exceptional products and services, and world-leading technologies.

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Quality policy statement

• Most companies today have a written quality policy or mission statement – For example, “It is the established policy and intention

of this company to provide its customers with products which conform to customer requirements and are delivered on time. This will be ensured through a defined quality program as detailed in the company quality manual.”

• Some companies rely on verbal quality policies. for example, – “our goal is to ensure customer satisfaction and

minimize rejects.”


Other examples

• Goodyear: “our mission is constant improvement in products and services to meet our customers’ needs. This is the only means to business success for Goodyear and prosperity for its investors and employees.”

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Other examples from Your Side

Break


Other examples

• Motorola - “all employees at Motorola must consistently strive for a six sigma target.”

• Motorola – “Doing the right thing. Every day. No excuses.”

The bottom line:Organizations must demonstrate what Deming termed “constancy of purpose”.

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Identifying and resolving quality problems

• Quality problems exceed individual and functional boundaries. Companies need multi-discipline problem solving.

Islamic University, Gaza - PalestineOrganizational approaches for multidiscipline problem solving

• Form cross functional teams.– Quality improvement teams– Quality circles

• Adopt matrix versus functional organizational structure.• Co-locate engineering resources to open communication

channels.– Engineering technical centers/Centers of expertise

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Coordinating quality requirements with suppliers

• Importance of supply chain management– Many quality problems are caused by defective purchased

material (Crosby 50%).– Suppliers often represent a large % of manufacturing costs.


Strategies for supplier relationships

Criteria Traditional Approach

Long Term Partnership

Philosophy "keep suppliers on their toes" "mutual dependence"

Supply base Large supply base Few suppliers - "single sourcing"

Contract length Often short term contracts Often long term contracts

Awarding contracts

Low cost bid Negotiated

Supplier costs Either company or supplier wins

Share cost savings (win-win)

Cooperation Cooperation as needed; company protects knowledge

Frequent joint problem solving

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Managing human resources & TQM

• Growing research indicates that TQM has not achieved its objectives due to human resource management (HRM) problems.

• Failures occur when management falls short in their efforts to adopt a corporate culture fully embracing TQM.


What makes TQM an HR problem?

• TQM requires employee development & employee cooperation.

• Thus, the task of top management is to:– provide workers with the necessary skills and

knowledge.– create a quality-minded culture among employees.

• A quality culture that:– nurtures high-trust relationships.– has a shared sense of commitment.– believes that continuous improvement is for the

common good.

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Establishing a quality minded culture

• Formation of a quality minded culture is a human interaction issue.

• Therefore, quality management systems must provide:– channels of communication for product-quality

information among all concerned employees. – means of participation for employees so employees

feel they’re part of the system


Some HR challenges?

• Is company culture a subset of national culture?• Should companies encourage TQM participation via

monetary incentives?• Do workers want to be involved in the quality management

process -– Actually, some want to have input.– many others do not want any increased responsibility.

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Roles for QI teams

• In addition to solving quality problems, QI teams help:• provide a means of participation for employees in quality

decision-making.• aid employee development: leadership, problem-solving

skills.• lead to quality awareness which is essential for

organizational culture change.


Types of quality improvement teams

• Project teams

• Quality circles

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Project team characteristics

• Teams address key organizational issues• concurrent engineering• ISO 9000 implementation

• membership - generally mandatory• temporary in nature• participation is cross-functional• team leaders have varying degrees of authority


Quality circle characteristics

• Voluntary groups of 6-8 members• Quality circle teams are semi-permanent• Teams are from single functional department• Members have equal status and select their own project• Minimum pressure to solve problems with a set time

frame

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Implementing quality circles

• Quality circles require top management support• Personal characteristics of facilitators are critical• Scope of project needs to be small enough to be capably

addressed by the team• Success of other teams has positive peer pressure effect


Implementation

• Japan- highly successful– Widely publicized quality circles– Product development teams

• U.S. - marginal success– Product development teams have succeeded more so than

quality circle teams

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Concurrent engineering project teams

• Concurrent engineering teams are having success -examples: Boeing Chrysler– a concurrent process carried out by a multi-functional

product development team.– intended to replace sequential development process.– they avoid potential quality problems by integrating

upstream and downstream functions in the preliminary design phase.

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