TQM: Continuous Improvement

By; Engr, Attaullah Shah BSc Engg ( Gold Medalist), MSc Engg ( Strs), MBA, MA ( Eco)

MSc Envir Design, PGD Computer Sc, PhD Scholar UET Taxila

Project Director Allama Iqbal Open University-Islamabad. pdaiou@yahoo.ocm

SOME QUOTATIONS

God doesn't Change the Nation unless they have the will to change themselves- Holy Quran

He who rejects change is the architect of decay. The only human institution which rejects progress is the cemetery. ~Harold Wilson.

Carl Rogers said: The curious paradox is that when I accept myself just as I am, then I can change.

Change is the law of life. And those who look only to the past or present are certain to miss the future. John F. Kennedy

We must all obey the great law of change. It is the most powerful law of nature. Edmund Burke.

It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change. Charles Darwin.

Nature gives to every time and season some beauties of its own; and from morning to night, as from the cradle to the grave, it is but a succession of changes so gentle and easy that we can scarcely mark their progress. Charles Dickens.

You must be the change you wish to see in the world. Mahatma Gandhi.

To improve is to change; to be perfect is to change often. Winston Churchill

People can cry much easier than they can change. James Baldwin

To exist is to change, to change is to mature, to mature is to go on creating oneself endlessly Henri Bergson

When you‘ve finished changing, you're finished. Benjamin Franklin

DO you Know?

What is Quality? What is TQM ?

What is PDCA? What is the difference between Quality Assurance and TQM? What are the advantages of TQM for an organization?

Total Quality Managementand Continuous Improvement

TQM is the management process used to make continuous improvements to all functions.

TQM represents an ongoing, continuous commitment to improvement.

The foundation of total quality is a management philosophy that supports meeting customer requirements through continuous improvement.

The Scope of Total Quality Management

Principles

Practices

Infrastructure Tools & Techniques

Participation and Teamwork

Custo

mer

focu

s Continuous

improvem

ent

And learning

Continuous Improvement versus Traditional Approach

Market-share focusIndividualsFocus on ‘who” and “why”Short-term focusStatus quo focusProduct focusInnovationFire fighting

Customer focusCross-functional teamsFocus on “what” and “how”Long-term focusContinuous improvementProcess improvement focusIncremental improvementsProblem solving

Traditional Approach Continuous ImprovementContinuous ImprovementContinuous ImprovementContinuous Improvement

The TQM System

CustomerFocus

ProcessImprovement

TotalInvolvement

LeadershipEducation and Training Supportive structureCommunications Reward and recognition

Measurement

ContinuousImprovement

Objective

Principles

Elements

Leadership Leadership

“Inventories can be managed, but people must be led”.

Their task is to create clear quality values & high

expectations, & then build these in to the company operations.

Continuous ImprovementContinuous Improvement

Check Do

Act Plan

Time

Qua

lity

leve

l

Process Improvement Methodology (sequenced) (1 of 3)

Develop process improvement planDetermine process or area to examineForm and train Process/Quality

Improvement TeamUse coarse tools

Process flowchart Check sheets and histograms Fishbone chart <--- Pareto analysis --->

Process Improvement Methodology (sequenced) (2 of 3)

Use fine tools Process control charts Run diagrams Scatter diagrams Failsafing

Determine process changesImplement pilot process improvement

Process Improvement Methodology (sequenced) (3 of 3)

Measure and evaluate results.

Repeat if results unsatisfactory; deploy full implementation if results satisfactory

The Seven QC ToolsFlowchartsCheck sheetsHistogramsCause-and-effect diagramsPareto diagramsScatter diagramsControl charts+ Run charts

Mod. SJSU Bus. 142 DAB 09/19/02

FlowchartsShows unexpected complexity, problem areas,

redundancy, unnecessary loops, and where simplification may be possible

Compares and contrasts actual versus ideal flow of a process

Allows a team to reach agreement on process steps and identify activities that may impact performance

Serves as a training tool

Flowchart Passenger Arrives

Ticket No Wait for For Flight Appropriate

Flight

Yes

Check Yes Excess Luggage Carry-on

No

IssueBoarding Pass

PassengerBoards Airplane

Check Sheet

Creates easy-to-understand data

Builds, with each observation, a clearer picture of the facts

Forces agreement o the definition of each condition or event of interest

Makes patterns in the data become

obvious quickly

Histogram

Displays large amounts of data that are difficult to interpret in tabular form

Shows centering, variation, and shapeIllustrates the underlying distribution of the

dataProvides useful information for predicting

future performanceHelps to answer the question “Is the process

capable of meeting requirements?

Cause and Effect Diagram

Enables a team to focus on the content of a problem, not on the history of the problem or differing personal interests of team members

Creates a snapshot of collective knowledge and consensus of a team; builds support for solutions

Focuses the team on causes, not symptoms

Effect

Cause

Pareto Diagram The Pareto principle suggests that most effects come from

relatively few causes.

In quantitative terms: 80% of the problems come from 20% of the causes (machines, raw materials, operators etc.); 80% of the wealth is owned by 20% of the people etc.

Therefore effort aimed at the right 20% can solve 80% of the problems. Double (back to back) Pareto charts can be used to compare 'before and after' situations. General use, to decide where to apply initial effort for maximum effect.

Helps a team focus on causes that have the greatest impactDisplays the relative importance of problems in a simple visual format.

Helps prevent “shifting the problem” where the solution removes some causes but worsens others

Scatter Diagram

Supplies the data to confirm a hypothesis that two variables are related

Provides both a visual and statistical means to test the strength of a relationship

Provides a good follow-up to cause and effect diagrams *

* ** * *

Control ChartFocuses attention on detecting and

monitoring process variation over time

Distinguishes special from common causes of variation

Serves as a tool for on-going control

Provides a common language for discussion process performance

* * * * *

* *

Run ChartMonitors performance of one or more processes

over time to detect trends, shifts, or cyclesAllows a team to compare performance before and

after implementation of a solution to measure its impact

Focuses attention on truly vital changes in the process

* * * * *

* *

ISO Certification System and TQM

WHAT IS ISO

Because "International Organization for Standardization" would have different abbreviations in different languages ("IOS" in English, "OIN" in French for Organisation internationale de normalisation), it was decided at the outset to use a word derived from the Greek isos, meaning "equal". Therefore, whatever the country, whatever the language, the short form of the organization's name is always ISO.

ISO QUALITY SYSTEM

ISO 9001:2000 Quality Management Systems - Requirements contains the general requirements for a quality management system. The standard is applicable to all companies including manufacturing and service providers.

ISO QUALITY SYSTEM

ISO 9000 is concerned with "quality management". This means what the organization does to enhance satisfaction by meeting customer and customer applicable regulatory requirements and continually to improve its performance in this regard.

ISO QUALITY SYSTEM

In the most recent revision (2000) the text was reworded for easier adaptation to a wider range of organizations.

Transition from ISO 9000-1994 to ISO 9000-2000 is simply merging of ISO 9001-1994,ISO 9002-1994, ISO 9003-1994 and ISO 9004-1994 to simply ISO 9001-2000.

ISO QUALITY SYSTEM"Subcontractor" has been changed to

"supplier".

"Supplier" now refers to the main organization seeking certification.

"Customer" remains unchanged.

ISO QUALITY SYSTEMThe standard has a new process-oriented

structure. It includes a process model based on the Plan-Do-Check-Act cycle, which outlines the product and/or service cycle and the management control cycle.

ISO QUALITY SYSTEM

The old 20-point format has been replaced.

The text of the standard is now organized into five major auditable processes or Modules. A brief description is as follows.

ISO 9000 2000: Quality Management Principles FOCUS ON YOUR CUSTOMERS ORGANIZATIONS

RELY ON CUSTOMERS. THEREFORE: ORGANIZATIONS MUST UNDERSTAND CUSTOMER NEEDS. ORGANIZATIONS MUST MEET CUSTOMER REQUIREMENTS. ORGANIZATIONS MUST EXCEED CUSTOMER EXPECTATIONS.

PROVIDE LEADERSHIP ORGANIZATIONS RELY ON LEADERS. THEREFORE:

LEADERS MUST ESTABLISH A UNITY OF PURPOSE AND SET THE DIRECTION THE ORGANIZATION SHOULD TAKE.

LEADERS MUST CREATE AN ENVIRONMENT THAT ENCOURAGES PEOPLE TO ACHIEVE THE ORGANIZATION'S OBJECTIVES

ISO 9000 2000 Quality Management Principles INVOLVE YOUR PEOPLE ORGANIZATIONS

RELY ON PEOPLE. THEREFORE: ORGANIZATIONS MUST ENCOURAGE THE

INVOLVEMENT OF PEOPLE AT ALL LEVELS. ORGANIZATIONS MUST HELP PEOPLE TO

DEVELOP AND USE THEIR ABILITIES.

USE A PROCESS APPROACH ORGANIZATIONS ARE MORE EFFICIENT AND EFFECTIVE THEN THEY USE A PROCESS APPROACH. THEREFORE: ORGANIZATIONS MUST USE A PROCESS APPROACH

TO MANAGE ACTIVITIES AND RELATED RESOURCES.

ISO 9000 2000 Quality Management Principles TAKE A SYSTEMS APPROACH

ORGANIZATIONS ARE MORE EFFICIENT AND EFFECTIVE WHEN THEY USE A SYSTEMS APPROACH. THEREFORE: ORGANIZATIONS MUST IDENTIFY INTERRELATED

PROCESSES AND TREAT THEM AS A SYSTEM. ORGANIZATIONS MUST USE A SYSTEMS APPROACH

TO MANAGE THEIR INTERRELATED PROCESSES. ENCOURAGE CONTINUAL IMPROVEMENTORGANIZATIONS ARE

MORE EFFICIENT AND EFFECTIVE WHEN THEY CONTINUALLY TRY TO IMPROVE. THEREFORE:

ORGANIZATIONS MUST MAKE A PERMANENT COMMITMENT TO CONTINUALLY IMPROVE THEIR OVERALL PERFORMANCE.

ISO 9000 2000 Quality Management Principles GET THE FACTS BEFORE YOU DECIDE

ORGANIZATIONS PERFORM BETTER WHEN THEIR DECISIONS ARE BASED ON FACTS. THEREFORE:

ORGANIZATIONS MUST BASE DECISIONS ON THE ANALYSIS OF FACTUAL INFORMATION AND DATA.

WORK WITH YOUR SUPPLIERS ORGANIZATIONS DEPEND ON THEIR SUPPLIERS TO HELP THEM CREATE VALUE. THEREFORE:

ORGANIZATIONS MUST MAINTAIN A MUTUALLY BENEFICIAL RELATIONSHIP WITH THEIR SUPPLIERS.

ISO QUALITY SYSTEM

Section 4. Quality Management System and its Continues Improvement

Section 5. Management Responsibility

Section 6. Resource Management

Section 7. Product Realization

Section 8. Measurement, Analysis, and Improvement

EIGHT QUALITY MANAGEMENT PRINCIPLES

Principle 1 Customer focus

Organizations depend on their customers and therefore should understand current and future customer needs, should meet customer requirements and strive to exceed customer expectations.

EIGHT QUALITY MANAGEMENT PRINCIPLES

Principle 2 Leadership

Leaders establish unity of purpose and direction of the organization. They should create and maintain the internal environment in which people can become fully involved in achieving the organization's objectives.

EIGHT QUALITY MANAGEMENT PRINCIPLES

Principle 3 Involvement of people

People at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organization's benefit.

EIGHT QUALITY MANAGEMENT PRINCIPLES

Principle 4 Process approach

A desired result is achieved more efficiently when activities and related resources are managed as a process.

EIGHT QUALITY MANAGEMENT PRINCIPLES

Principle 5 System approach to management

Identifying, understanding and managing interrelated processes as a system contributes to the organization's effectiveness and efficiency in achieving its objectives.

EIGHT QUALITY MANAGEMENT PRINCIPLES

Principle 6 Continual improvement

Continual improvement of the organization's overall performance should be a permanent objective of the organization.

EIGHT QUALITY MANAGEMENT PRINCIPLES

Principle 7 Factual approach to decision making

Effective decisions are based on the analysis of data and information

EIGHT QUALITY MANAGEMENT PRINCIPLES

Principle 8 Mutually beneficial supplier relationships

An organization and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value

Essence of Survival“Every morning in Africa, a Gazelle ( Small Deer) wakes up,it knows it must run faster than the fastest Lion or it will be killed. Every morning a Lion wakesup, it knows it must outrun the slowest Gazelle orit will starve to death. It does not matter whetheryou are a Lion or a Gazelle – when the sun comes up; You’d better be running.”