TQM Class Notes

8/14/2019 TQM Class Notes

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TQM Class notes

Quality:

The term quality is used in a variety of ways. Sometimes

o

it refers to the grade of a product such as USDA or Grade A eggso it refers materials workmanship or special features such as waterproof or

subtle aroma

o it is relative to price i.e., cheap or expensive

The reason is customer values certain aspects of a product or service, and therefore

associated those aspects with the quality that they perceive a product or service has.

Definition:

Quality refers to the ability of a product or service to consistently meet or exceed

customers expectation.

Quality means getting what you are paying for. People are willing to spend more in thehope that the extra money spent will bring them the peace of mind that comes with

services and products that are trust worthy.

Quality was not uppermost in the minds of U.S. business organization even in the early70s.They tends to focus on

COST and PRODUCTIVITY

Rather than on Quality it was not that Quality was not important, it just was not very

important.

U.S organization got their lesson from the Japanese organization when specially leading

Japanese manufacturers Honda, Nissan and Toyota become major players in the autosales market in the United States. Both Honda and Toyota have built a reputation for

quality and reliability in their cars.

Way to Improve Quality

1. By hiring consultant2. Send the people (including top executives) to seminars and

3. Initiated a vast array of quality improvement programme.

Note:

Quality is not something that is tacked on as a special feature but an integral part of a

product or service.


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# in the 1990s U.S. auto makers began to close the quality gap.

# for generating awareness and interest in quality there are two quality awards-

1. Malcolm Baldridge Award(From U.S. A)2. Deming Prize

Contribution to the Quality Management:

Scientists Name Contribution Year Remarks

Frederick Winslow

Taylor

Gave new emphasis to quality by including

product inspection and gauging in his list of

fundamentals of ManufacturingManagement

Father of

Scientific

Management

G.S.Radford #Improved Taylors Method#The notions of involving quality

considerations early in the product design

stage

#Making connections between high quality,increased productivity and lower costs.

W. Shewhart

(Bell Telephone

Lab)

Introduced Statistical Control Charts for

monitoring production.

H.F Dodge and

H.G.Roming

(Bell TelephoneLab)

Introduced Tables for acceptance sampling Aroun

d 1930

W. EdwardsDeming

Introduced Statistical Quality controlmethods to Japanees Manufacturers,

promising that this would help them torebuild their manufacturing their base and

compete in the world market.

Quality GuruWorked in Japan

for about 30years.

To honour himJapan Introduced

Deeming Prize.

Provided 14points

Joseph Juran Began his cost of Quality approach-Emphasizing accurate and complete

identification and measurement of the cost

of quality.

Published Quality contol Handbook in 1951-Provides the concept Quality begins by

knowing what customers want

Quality GuruMajor force in

Japans success in

quality.

Armand

Feigenbaum

Proposed Total Quality Control-

One important feature of his work was

greater involvement of upper managementin quality.

Mid

1950s

At the age of 24,

he was general

Electrics topexpert in quality.

He published his


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book Total

Quality Control in1961.

Philip Croseby Introduced concept Zero Defects-Thisapproach focused on employee motivation

awareness and the expectation on perfectionfrom each employee.-Introduced concept Make it(do it) right the

first time.

During1960

Theapproachevolved from the

success of theMartin Companyin producing a

perfect missile for

the U.S. Army.

Kaoru Ishikawa -develop the cause and effect diagram (also

known as a Fish-Bone Diagram for problem

solving.-Implemented quality circles that involves

workers into quality improvement.

Genichi Taguchi Taguchi Loss Function which involves afurmula for determining the cost of poorquality.

Taguchis methodis credited withhelping the Ford

Motor.

Debate on Quality:

There is a lot of confusion as to whether quality costs money or whether its save money.

In one sense quality means the feature of some product or service that make people

willing to buy it. So its income oriented-has an effect on income

Now to produce features, ordinarily you have to invest money. In that sense, higherquality costs more.

Quality also means freedom from trouble, freedom from failure. This is cost oriented. If

things fail internally it costs the company. If they fail externally, its also costs thecustomers. In this cases quality costs less.

The Dimensions of Quality:

Generally speaking the dimension of quality include-

1. Performance-main characteristics of the product or service.

2. Aesthetics-appearance, feel, smell, taste3. Safety-risk of injury or harm4. Reliability-Consistency of performance

5. Durability-the useful life of the product or service.

6. Service after sale-handling of complaints or checking on the customer

satisfaction.7. Perceived quality-indirect evaluation of quality i.e., (say) reputation.


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8. Conformance-how well a product or service corresponds to the customers

expectation.

The Consequences of Poor Quality

1. Loss of business

2. Liability3. Productivity

4. Repair work, Rework and Scrap costs.

5. Return goods, Warranty costs, Inspection costs and lost sales.-

Note: It is said that 30-35% of gross sales are used by the maximum companies for

improving the quality.

Example of a Quality problem

Tennant Company, a maker of floor-finishing equipment in Minneapolis, Minnesota.

Soon after entering the Japanese market, Tennant began to receive complaints that their

machined leaked. Managers were mystified-they had never heard this complain fromtheir American customers. They company really began to worry when it learned that

Toyota was considering entering the market. So, it started interviewing its American

customers in earnest. Sure enough, the machines did leak. But the American customersdidnt squeak: they just wiped up the leak, silently suffering and waiting for a competitor

to enter the market so they could shift their business to it. Tennant eventually fixed the

problem and Toyota never enters the market. So for getting quality related problem wehave to remember the phrase The squeaky wheel gets the grease.


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Total Quality Management

The term Total Quality Management (TQM) refers to a quest for quality that involves

everyone in an organization. There are two philosophies in this approach i.e.,

a. Continuous Improvement-never ending push to improve. It covers equipment,

methods, materials and people.b. Customer Satisfaction-which involves meeting or exceeding customer

expectation.

Approaches of TQM:

1. Find out what customers want. We can get the answer of this question by

The surveys

Focus groupsInterviews or

Some other techniques that integrates Customers voice in thedecision making process.

We should include the internal customers (the next person in the process) as well as theexternal customers (The final customers).

2. Design a product or service that meet or exceed what customer want. Make it

ease to use and easy to produce.3. Remember the concept during the design a production processDO THE JOB

RIGHT THE FIRST TIME .The concept developed by Philip Crosby.

Determine where mistakes are likely to occur and try to prevent them.

4. Keep track of results and use those to guide improvement in the system. Neverstop trying to improve.

5. Extend these concepts to suppliers and to distribution.

Note:Successful TQM programs are built through the dedication and combined efforts of

everyone in the organization. As noted, top management must be committed andinvolved. If it isnt TQM will become just another fad that quickly dies and fades away.


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Some Other Elements in TQM

1. Continual Improvement:

This is the philosophy that seeks to make never-ending improvement to the

process of converting input into output.

It covers equipment, methods, materials and people.The concept was not used even few years back. But now it is very popular

both in U.S.A and Japanese Companies. In JAPAN the concept is known as

Kaizen.

2. Competitive Benchmark:

For learning how to improve your operations, you have to identify thecompanies or organizations that are the best for something. The company need

not be the same line of business as yours.Example:

Xerox used the mail order company. L.L.Bean to Benchmark order filling.

3. Employee Empowerment:

Giving workers the responsibility for improvements. This puts decision

making into the hands of those who are closest to the job and have

considerable insight into problems and solutions.

4. Team Approach:

The use of teams for problem solving and to achieve consensus, takesadvantages of group synergy, gets people involved and promotes a spirit of co-

operation and shared values among employees.

5. Decision based on facts rather than opinion.

6. Knowledge of tools:

Employees and managers are trained in the use of quality tools.


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7. Supplier Quality:

Suppliers must be included in the quality assurance and quality improvementefforts so that there processes are capable of delivering quality parts and

materials timely manner.

Suppliers are the partner of the process and long term relationship isencouraged. This gives suppliers a vital stake in providing quality goods and

services.

It would be incorrect to think that TQM as merely a collection of techniques. Rather

TQM reflects a whole new attitude towards quality.TQM programs are touted as a way for U.S. companies to regain their competitiveness,

which is a very worthwhile objective.

Nonetheless TQM programs are not without criticism. Some of the major ones are:

a. Blind Pursuit of TQM program: Overzealous advocates may focus

attention on quality even though other priorities may be more

important(i.e., responding quickly to competitors advances)

b. Program may not be linked to the strategies of the organization in themeaningful way.

c. Quality-related decision may not be tied to market performance. For

example: customer satisfaction may be carried to the extent that its costsfar exceeds any direct and indirect benefit of doing so.

d. Failure to carefully plan a program before embarking on it can lead to

false starts, employee confusion and meaningless results.

Note:

There is nothing inherently wrong with TQM; it is how some individuals or

organizations misuse it.


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PROBLEM SOLVING IN THE TQMAPPROACH

Problem solving is one of the basic procedures of TQM .An important aspect

of problem solving in the TQM approach is eliminating the cause so that the

problem does not reoccur.

Step-1:Define the problem and establish an improvement goal.

Give problem definition careful consideration: dont rush through this step

because this will serve as the focal point of problem solving efforts.

Step-2:Collect Data.

The solution must be based on facts. Possible tools include check sheet,

scatter diagram, histogram, run chart and control chart.

Step-3:Analyze the problem

Possible tools include pareto chart, cause effect- diagram.

Step-4:Generate potential solutions.

Methods includes brainstorming, interviewing and surveying

Step-5:Choose a solution

Be sure what are the criteria are for choosing a solutions and select the best

one.

Step-6:Implement the solution

Keep everyone informed

Step-7:Monitor the solution to see if it accomplishes the goal.

If not, modify the solution or return to step-1.Possible tools include control

chart and run chart.


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PROCESS IMPROVEMENT

Process Improvement is a systematic approach to improve a process. It involves-

i. Documentation

ii. Measurement andiii. Analysis

For the purpose of improving the functioning of the process.

Goals of Process improvement

Increasing Customer satisfaction

Achieving higher quality

Reducing waste

Reducing cost

Increasing productivity andSpeeding up the process.

Method of Process Improvement

One of the popular methods of process improvement is The Plan-Do-Study-

Act Cycle.

This also referred to as either Shewhart Cycle or Deeming wheel. This is the

basis for continuous improvement activities. The method representing the

process with a circle underscores its continuing nature.

There are four basic steps in the cycle-

Step-1: Plan

Begin by studying the current process. Document the process. Then collect data toidentify problems. Next, survey data and develop a plan for improvement. Specify

measures of evaluating the plan.

Step-2: Do

Implement the plan on a small scale if possible. Document any changes made during this

phase. Collect data systematically for evaluation.

Step-3:Study


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Evaluate the data collection during the do phase. Check how closely the results match the

original goals of the plan phase.

Step-4:Act

If the results are successful standardized the new method and communicate the newmethod to all people associated with the process. Implement training for the new method.

If the results are unsuccessful revised the plan and repeat the process or cease this project.

In replicating successful results elsewhere in the organization, the cycle is repeated.

If the plan is unsuccessful and we wish to make further modifications repeat this cycle.

Employing this sequence of steps provide a systematic approach to continuousimprovement.

TOOLS FOR PROCESS IMPROVEMENT

There are a number of tools for process improvement. We are going to describe eight and

first seven is known as seven basic quality tools. These are-

Check sheets

Flowcharts

Scatter Diagrams

Histograms

Pareto Analysis

Control Charts

Cause and effect Diagram

Run charts.


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ISO(International Organization for Standardization ) CERTIFICATION

FOR QUALITY

Background:

ISO 9000 is a series of International Standards dealing with quality systemsthat can be used for external quality assurances purpose according to the

original 1987 bulletin from International Organization for Standardization.

This group founded in 1946 has become the focus of efforts to developinternational quality standards to facilities world wide trade.

The purpose of the ISO is to promote world wide standards that will improve

operating efficiency, improving productivity and reduce costs. The ISO is

composed of the national standards bodies of 91 countries.Disadvantages:

1. Success with ISO certification has not guaranteed success in business. The focus

is often on paper work which may not directly benefit the firm.Charts of ISO 9000 and ISO14000:

3. Registration can be expensive and has unfortunately become a vehicle toincrease consulting revenues.

ISO 9000 SERIES:

ISO 9000 SETS STANDARDS FOR SYSTEM AND PAPER WORK, NOT

PRODUCTS. It provides companies with a series of guideline on how to establishsystems for managing quality products or services.ISO 9000 is also a general guide to the

others.

ISO CATEGORY PURPOSE REMARKS

ISO9001 It is the most

comprehensive, covering

research, design, building,

shipping and installing

ISO9002 It is for the companies that

only produce and supply theexisting products.

ISO9003 For the companies which

are doing only assemblyISO9004 It is a document to guidefurther internal quality

development

ISO14000 New standard to addressenvironmental issues


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STEPS FOR IMPLEMENTING ISO 9000

There are five steps:

1. ISO 9000Assessment: The initial assessment is a detailed review of the

companys quality systems and procedures compared with ISO9000requirements. It might take two or three days to complete.

2. Quality Assurance and policy: The quality manual is often used because it is

good way to get all the necessary documentation together in one place . ISO9000 standards do not required quality assurance and policy manual.

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