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Total Quality Management

Presented to: Prof Ganachri

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Group Members:

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Total Quality Management

Total Quality Management (TQM) is a

philosophy which involves company

practices that aim to harness the humanand material resources of an organization in

the most effective way to achieve the

objectives of the organization

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What is TQM?

Actions not justwords

(implementation)

Constant drivefor continuous

improvement

and learning.

Concern for

employeeinvolvement and

development

Managementby Fact

Result FocusPassion to delivercustomer value /

excellence

Organisation

responsibility

Process

Management

Partnership

perspective

(internal /

external)

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Five Pillars Of TQM

Product

Processes

Organization

Leadership

Commitment

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Evolution of Quality Management

Inspection

Quality

Control

Quality

Assurance

TQM

Salvage, sorting, grading, blending, corrective

actions, identify sources of non-conformance

Develop quality manual, process performance

data, self-inspection, product testing, basic

quality planning, use of basic statistics,

paperwork control.

Quality systems development, advanced quality

planning, comprehensive quality manuals, use of

quality costs, involvement of non-production

operations,failure mode and effects analysis

Policy deployment, involve supplier & customers,

involve all operations, process management,

performance measurement, teamwork, employee

involvement.

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Fundamental Concepts

Commitment to TQM Commitment to TQM by the highest level of management.

Promotion of this concept to all levels and activities of the organization

Individual involvement

Devotion to continuous improvement

Customer satisfaction Internal customers

External customers

Customer needs

Customer expectations

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Fundamental Concepts

Quality Losses Ineffective and inefficient utilization of human, financial and material

resources in processes

Loss of customer satisfaction

Loss of opportunity to add more value

Loss due to waste or misuse of resources

Participation by all Strengths and abilities of individuals

Effective utilization of strengths and abilities

Communication and teamwork

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Fundamental Concepts

Process MeasurementsContinuous improvement

Problem Identification

Alignment of corporate objectives andIndividual attitudes

Personal Accountability

Personal Development

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Implementing Total Quality

Management Appropriate systems, improvement

tools and techniques

Application and coordination of theabove

Overcome resistance to change

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Implementing TQMOrganizational structure

Incremental improvement of processes

Review of the appropriateness of the organizational structure

Process Management Concept Process owner and process customer

Responsibilities of management and process owners

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Implementing TQMMeasurement of Performance

Monitoring the performance of all key functions and processes Key attributes: cost, time, flexibility, and quality

Indicators of process efficiency

Measures of customer satisfaction

Improvement planning techniques

Training

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Quality improvement

Situations requiring improvement High quality costs

Customer complaints

Health and safety considerations

Problem solving techniques Identify opportunities for improvement

Apply to all areas of the business

Review priorities of improvement before action

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Quality improvement

A methodology for quality improvement Involve the whole organization

Initiate quality improvement projects or

activities Investigate possible areas for improvement

Establish cause and effect relationship

Take improvement action Confirm the improvement

Sustain the gains

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Quality improvement

Problem solving process Identify subjects for improvement

Prioritize

Analyze causes of problem

Collect data for analysis

Assess alternative solutions for actions

Select the optimum solution for action

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Managing for quality improvement

Organizing for quality improvement Responsibilities for Quality improvement

Within the organizational hierarchy

Within the processes that flow across organizational

boundaries

Planning for quality improvement

Measuring quality improvementMeasure of quality losses

Associated with customer satisfaction

Associated with process efficiency

Sustained by society

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Managing for quality improvement

Measuring quality improvement Statistical interpretation of trends

Establish and meet numerical targets

Measure and track trends

Report and review measures

Measure the cost of measurement

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Tools for quality improvement

Pareto Analysis

Flowcharts

Checklists Histograms

Scatter Diagrams

Control Charts Cause-and-Effect Diagrams

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PARETO CHART

DEFINITION A Pareto Chart is a vertical bar chart in which the bars are arranged in

the descending order of their height starting from the left and prioritize

the problems or issues.

USES to prioritize problems

to analyze a process

to identify root causes

to verify that whatever improvement process you implement continues

to work

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NUMBER OFNUMBER OFCAUSECAUSE DEFECTSDEFECTS PERCENTAGEPERCENTAGE

Poor designPoor design 8080 6464 %%

Wrong part dimensionsWrong part dimensions 1616 1313

Defective partsDefective parts 1212 1010

Incorrect machine calibrationIncorrect machine calibration 77 66

Operator errorsOperator errors 44 33

Defective materialDefective material 33 22Surface abrasionsSurface abrasions 33 22

125125 100100 %%

Pareto Analysis

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Percentf r

om

each

cause

Percent

from

each

cause

Causes of poor qualityCauses of poor quality

Machinec

alibr

ations

Machinec

alibr

ations

Defe

ctive

parts

Defective

parts

Wrong

dim

ensio

ns

Wrong

dim

ensio

ns

Poor

Design

Poor

Design

Operator

erro

rs

Operator

errors

Defe

ctive

materials

Defe

ctive

materials

Surfa

ceabrasio

ns

Surfa

ceabr

asio

ns

00

1010

2020

3030

4040

5050

6060

7070(64)(64)

(13)(13)(10)(10)

(6)(6)(3)(3) (2)(2) (2)(2)

Pareto Chart

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Flow Charts

Operation DecisionStart/Finish

Start/Finish

Operation

OperationOperation

Operation

Decision

Flow charts are nothing but graphical representation of steps involved in a

process. Flow charts give in detail the sequence involved in the material,

machine and operation that are involved in the completion of the process.

Thus, they are the excellent means of documenting the steps that are carried

out in a process.

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Check Sheet

COMPONENTS REPLACED BY LABTIME PERIOD: 22 Feb to 27 Feb 2002REPAIR TECHNICIAN: Bob

TV SET MODEL 1013

Integrated Circuits ||||Capacitors |||| |||| |||| |||| |||| ||

Resistors ||Transformers ||||CommandsCRT |

Check sheets are nothing but forms that can be used to systematically collect data.

Check sheet give the user a place to start and provides the steps to be followed in

Collecting the data

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CHECK SHEET

USES to gather data

to test a theory

to evaluate alternate

solutions to verify that whatever

improvement process

you implement

continues to work

STEPS team agrees on what to

observe

decide who collects data

decide time period forcollecting data

design Check Sheet

collect data

compile data in theCheck Sheet

review Check Sheet

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Histogram

0

5

10

15

20

1 2 6 13 10 16 19 17 12 16 2017 13 5 6 2 1

Histograms help in understanding the variation in the process. It also helps in

estimating the process capability.

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Scatter Diagram

YY

XX

It is a graph of points plotted; this graph is helpful in comparing two variables.

The distribution of the points helps in identifying the cause and effect relationshipBetween two variables.

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Control Chart

1818

1212

66

33

99

1515

2121

2424

22 44 66 88 1010 1212 1414 1616

Sample numberSample number

Numb

erofd

efects

Numberofd

efect s

UCL = 23.35

LCL = 1.99

c= 12.67

A control chart is nothing but a run chart with limits. This is helpful in finding the

amount and nature of variation in a process.

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Cause and Effect Diagram

Developed by Dr Kaoru Ishikawa in 1943. It is also known bythe name of 1) Ishikawa diagram,

2)Fishbone diagram.

This diagram is helpful in representing the relationshipbetween an effect and the potential or possible causes thatinfluences it.

This is very much helpful when one want to find out thesolution to a particular problem that could have a number ofcauses for it and when we are interested in finding out theroot cause for it.

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Cause-and-Effect Diagram

Quality

Problem

Quality

Problem

Out of adjustmentOut of adjustment

Tooling problemsTooling problems

Old / wornOld / worn

MachinesMachines

FaultyFaulty

testing equipmenttesting equipment

Incorrect specificationsIncorrect specifications

Improper methodsImproper methods

MeasurementMeasurement

Poor supervisionPoor supervision

Lack of concentrationLack of concentration

Inadequate trainingInadequate training

HumanHuman

DeficienciesDeficiencies

in product designin product design

Ineffective qualityIneffective quality

managementmanagement

Poor process designPoor process design

ProcessProcess

InaccurateInaccurate

temperaturetemperature

controlcontrol

Dust and DirtDust and Dirt

EnvironmentEnvironment

Defective from vendorDefective from vendor

Not to specificationsNot to specifications

Material-Material-

handling problemshandling problems

MaterialsMaterials

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The Continuous Improvement Process

Measure

ment

Mea

surem

en

t

Measurement

Empowerment/

Shared Leadership

Process

Improvement/

Problem

Solving

Team

Management

Customer

Satisfaction

Business

Results

. . .

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Cost of Quality

The seven sources of waste Overproduction

Defective products

Waiting lines and delays

Stocks of intermediaries/semi-finished products

Transportation

Ineffective procedures

Ineffective movements or actions

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BARRIERS

Lack of management commitment Inability to change organizational culture

Improper planning

Lack of continuous training and education

Incompatible organizational structure

Insufficient resources

Use of prepackaged program

Ineffective measurement techniques

Inadequate attention to customers Inappropriate conditions for implementation

Inadequate use of teamwork

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Employee Empowerment

TQM stresses team work in solving quality problems , e.g.

quality circle, brainstorming, discussion, quality control tools What is a Quality circle a team of volunteer production

employees and their supervisors (8-10) that volunteer and meetregularly to solve quality problems.

Team meets weekly; analyses and solve problems, decisions

made through group consensus. Open discussion promoted; criticism not allowed

Employees viewed as most important organizational resource

and great care is taken in employee hiring and training.

Employees extensively trained in customer service,

communication, and quality awareness

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PresentationImplementation

Monitoring

SolutionProblem results

Problem

AnalysisCause and effect

Data collection

and analysis

Problem

IdentificationList alternatives

Consensus

Brainstorming

TrainingGroup processes

Data collection

Problem analysis

Organization8-10 members

Same area

Supervisor/moderator

Quality

Circles

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Elements for Success

Management Support

Mission Statement

Proper Planning

Customer and Bottom Line Focus

Measurement

Empowerment

Teamwork/Effective Meetings

Continuous Process Improvement Dedicated Resources

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Six Sigma

Business improvement approach that seeks tofind andeliminate causes of defects and errors in processes by

focusing on outputs that are critical to customers.

The term Six Sigma is based on a statistical measure that

equates 3.4 or fewer errors or defects per millionopportunities.

Motorola pioneered the concept of Six Sigma.

The late Bill Smith, a reliability engineer is credited with

conceiving the idea of Six Sigma. GE (specifically CEO Jack Welch) extensively promoted it.

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Black Belts and Green Belts

Champion

an executive responsible

for project success

Black Belt

project leader

Master Black Belt

a teacher and mentor for

Black Belts

Green Belts

project team members

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3.4 DPMO3.4 DPMO

67,000 DPMO

cost = 25% of sales

67,000 DPMO

cost = 25% of sales

DEFINEDEFINE CONTROLCONTROLIMPROVEIMPROVEANALYZEANALYZEMEASUREMEASURE

Six Sigma: DMAIC

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Contrasts between traditional TQM and Six Sigma

TQM is based largely on worker empowerment and teams; SS isowned by business leader champions.

TQM is process based; SS projects are truly cross-functional.

TQM training is generally limited to simple improvements toolsand concepts; SS is more rigorous with advanced statisticalmethods.

TQM has little emphasis on financial accountability; SS requires

verifiable return on investment and focus on bottom line.

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Kaizen

A Japanese term meaning change for the better the

concept implies a CONTINUOS IMPROVEMENT in

all company functions at all levels. It is more cultural

attitude and a life style rather than techniques.

Since the improvement is gradual, the expenditure to

achieve the process is very small.

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Total Quality Management (TQM) Programs

Motorola - Six Sigma

Xerox - Leadership through Quality

Intel - Perfect Design Quality

Hewlett-Packard - Total Quality Control

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Case Study

and

Illustrations

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A Case Study

onPending Papers

by

Quality Circle

of M/S Techtronics Pvt. Ltd., Hyderabad

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The Problem :

To reduce the Time Gap between receipts of

letters or communication and the Disposal oraction taken.

Data Collected:Data revealed that on an Average 4-7 Days are

taken to dispose a paper or a letter of

communication.

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Brainstorming:

Reasons for delay were;

1. Lack of proper Planning

2. Improper codification of files

3. Postponement

4. Disturbance

5. Tension

6. Insufficient Time

7. Insufficient Staff

8. No clear Job Specification

9. Everything is not in Place

10.Other reasons

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Major Causes:

After discussion it was identified that the

major causes for the delay were:

1.Lack of Planning 40%2.The presence of Tension 20%

3.The Attitude to Postpone 15%

4.Lack of Allocation of work 10%

5.Other reasons 15%

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Recommendations:

1. Planning:

Know the capacity, work load, etc.

Prioratise

1. Tension:

Rectify mistake at initial stageitself

Complete the task in time

1. Postponement:

Reallocation of work

Increase efficiency

Additional manpower

4. Allocation of Work:

Know the importance of work, time

factor

Work to be equally distributed

Communication must be clear

Think what to do, when and how

5. Everything in Place and

Place for Everything: Files, stationary, etc. to be kept in

an orderly manner

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Solution and Conclusion..

Plan the work in advance

Do things right at first time

Do one job at a time

Never postpone work

Prioritise the work and plan your time

Everything in place and place for everything must be strictly followed

Conclusion:

The average time taken previously to dispose off the papers was 4-7

days.

After implementing Quality Circle, the papers are disposed off within 48

hours.

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Illustrations on TQM

Illustrations on TQM.xls

http://sums%20on%20tqm.xls/http://sums%20on%20tqm.xls/

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Quality is a Journey, not aDestination.