TOPIC 8 QUALITY OBJECTIVE. Quality

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1 TOPIC 8

QUALITY

Q

OBJECTIVE

• What is Quality & Its Importance

• Total Quality Management (TQM)

• Dimensions of Quality

• Element of TQM

• TQM vs. Traditional Management

• Contributors of Quality

– W.E. Deming, J.M. Juran, P.B. Crosby,

K.Ishikawa

• Five Main Ideas of TQM

– FREST

• Problems Implementing TQM

• 5 Pillars of TQM

Quality

• What is the meaning of quality?

– The totality of features and characteristics

of a product or service that bear on its

ability to satisfy stated or implied needs.

– Performance to the standard expected by

customer

– Meeting the customer’s needs the first time

and every time

– An ever changing state (might chance

through time)

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Importance of Quality

• People deal with the issue of quality

continually in their daily lives

• Involves in meeting or exceeding

customer expectations

• Applies to products, services, people,

processes and environment

• To be a successful in today’s business

environment, organizations must pay

attention to quality

Total Quality Management

• What is TQM?

– A commitment to excellence by everyone or excellence

achieved by teamwork

– Represent the foundation of a continuously improving

organization

– Is a specific, systematic and company wide activities which

are directed towards achieving the quality, cost, quantity

and delivery products and services to satisfy its customers

– The totally integrated effort for gaining competitive

advantage by continuously improving every facet/aspect of

an organization’s activities

– TOTAL – everyone involved in continuous improvement

– QUALITY – customer’s requirement are fully met

– MANAGEMENT – management are fully committed

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3 What Are the Elements for TQM?

• Strategic commitment.

• Employee involvement.

• Technology.

• Materials.

• Methods improvement.

Total Quality Management

TQM and Traditional Management

Management Focus

Profit First

Single quality dimension

No worker involvement

Results oriented

Customer Focus

Quality First

Multiple quality dimension

Management and worker

involvement

Process oriented

Traditional Management

TQM

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HISTORY OF QUALITY

• The turning point occurred in Japan

after WW II

• The major contributors are

– W Edward Deming

– Joseph M Juran

– Philip B Crosby

– Kaoru Ishikawa

Achieving Quality : W Edward Deming

• Deming’s 14 points

(believe that managers are the primary source of

increased productivity)

– Create and publish to all employees a statement of the aims

and purpose of the company

– Learn the new philosophy

– Understand the purpose of inspection for improvement of

process and reduction of costs

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

alone

– Improve constantly and forever the system of production and

services

– Institute training

– Teach and institute leadership

Achieving Quality : W Edward Deming

• (cont..)

– Drive out fear, create trust and a climate of innovation

– Optimize toward the aims and purpose of the company,

efforts, teams, and groups

– Eliminate exhortation for the work force

– Eliminate numerical quotas for production, instead learn

and institute method of improvements

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5 Achieving Quality : W Edward Deming

(summary)

• Work towards organization’s goals

• Continuous learning process – take challenge, responsibilities,

leadership

• Eliminate inspection – do right thing the first time

• Reward base on quality

• Continuous improvement

• Implement training program

• Implement leadership

• Eliminate aggressive force and fear

• Break down barriers between departments & Exercise teamwork

• force.

• Eliminate work standards (quotas) on the factory floor. Eliminate

management by numbers, numerical goals

• Focus on Quality not Quantity & Reward employee sufficiently

• Let people take pride on their work

• Implement self-improvement program

• Encourage transformation

Achieving Quality : Joseph M Juran

• Juran’s guidelines for achieving

quality

– Focused on the responsibility of management to

achieve quality and the need for setting goals

– His concept incorporates closely to the point of

view of the customer

– His belief that quality does not happen by

accident and needs to be planned.

– The process of quality improvement is best

summarized in his `trilogy' concept:

Achieving Quality : Joseph M Juran

• cont…

• Quality planning

– Identify who are the customers & their needs

– Optimize the product features to meet our needs and

customer needs

• Quality control

– Develop a process which is able to produce the product

– Optimize the process

• Quality improvement

– Prove that the process can produce the product under

operating condition

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Achieving Quality : Philip B Crosby

• Quality is conformance to requirement

• The system achieving quality is

prevention

• The performance standard is zero

defect

Achieving Quality :Kaoru Ishikawa

• Recognized for contributing to the

emergence of quality circles, where

workers meet to discuss suggestion for

improvements

• Focusing on total quality efforts on

customers

– output from one dept be given to another

dept as if they were customers

– and to take worker’s suggestion seriously

FIVE MAIN IDEAS IN TQM

1. A System Approach

2. The Tools of TQM

3. A Focus on Customers

4. The Role of Management

5. Employee Participation

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7 Focus on Customer

F

Role of Management

R

Employee participation

E

Tools

T

FREST

System Approach

S

1. A System Approach

• Understanding organization as systems

– The social or cultural system

• Set of beliefs

– The managerial system

• Effectiveness of managing human and physical assets

– The technical system

• Technologies, infrastructure, financial

• A system is “a series of functions or activities

… within the organization that work together

for the aim of the organization”

• Each part or function of the system must

support each other.

2. The Tools of TQM

• Two main tools of TQM

– Fishbone diagram

– Benchmarking

• Others

– Statistical quality control

• A set of specific statistical techniques that can be used to

monitor quality

– Outsourcing

• Subcontracting services to other firms that can perform them

cheaper or better

– ISO

• A set of quality standards created by International Organization

for Standards

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Fishbone Diagram

• Introduced by Kaoru Ishikawa

• The basic concept is that the name of a basic

problem is entered at the end of the main "bone".

– The main possible causes of the problem (the effect)

are drawn as bones off of the main backbone.

• The "Four-M" categories are typically used as a

starting point: "Materials", "Machines", "Manpower",

and "Methods".

• Different names can be chosen to suit the problem at

hand, or these general categories can be revised.

• When the fishbone is complete, one has a rather

complete picture of all the possibilities about what

could be the root cause for the designated problem.

Examples of Fishbone Diagram

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9 What Is Benchmarking?

• The process of learning how other firms

do things in an exceptionally high

quality manner.

• Comparing your products and

processes against the very best in the

world

• What does benchmarking enable firms

to do?

– To stay ahead of improvements and

changes its competitors are using

3. A Focus On Customer

• Customer defines quality and

employees produce it

• Customers are people who buy and use

the products

• Should focus on both internal and

external customer

– Internal – employees

– External – customers, suppliers

4. Role of Management

• Manager from supervisors to senior

executives are the most crucial factor in

making TQM a success

• From top manager, TQM requires a deep

commitment to quality, and a continuing effort

to make sure quality values are understood

and accepted by everyone in the company

• Management must make sure that everyone

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5. Employee Participation

• Without empowered employees, TQM

won’t go far

• Empowerment

– Is letting employees make decision

• Employees who are actually doing a

job, are in the best position to learn

what is the best way to implement the

job

Problems in Implementation of TQM

• Lack of management support

• A follower and no goals of their own

• No appropriate communication system

informing about quality, process, customer

needs, etc

• Lack of training both employees and

managements

• Empowerment is not practiced

• Believing that quality means inspection,

however quality tries to eliminate inspection

or “Doing the right thing the first time”

• Changing targets too frequently

TQM

5 Pillar of TQM

• Quality in the product is impossible without quality in the

process

• Quality in the process is impossible without the right

organization

• The organization is meaningless without proper leadership

TQM