Quality Contol

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Powerpoint Templates

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IntroductionIntroduction

toto

Total Quality ManagementTotal Quality Management
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ContentsContents

Introduction

Total Quality Management [TQM]

Basic Concepts of TQM

Dimensions of Product Quality

Dimensions of Service Quality

Dimensions of Product Quality v/s. Service Quality

Costs of Quality

Quality Control

Quality Assurance

Quality Circles
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... Contents... Contents

Quality Gurus

Walter Shewhart

William Deming

Joseph Juran

Quality Tools

Evolution of TQM

Principles of TQM

Benefits of TQM

Armand Feigenbaum

Philip Crosby

Kaoru Ishikawa


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IntroductionIntroduction

Late 40s, period post WWII, Japan was beingcontrolled by Americans

Japanese economy in shambles

At that point in time, Toyota was a fledgling in theautomobile industry dominated by Big 3 UScompanies viz Ford, General Motors & Chrysler

In the board room of Toyota Motor Company inJapan, a board meeting was in progress subject ofdiscussion

How to survive &grow in the adverse conditionsHow to survive &grow in the adverse conditionsthat prevailed & eventually become world leadersthat prevailed & eventually become world leaders
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... Introduction... Introduction

Board members took courageous decisions that hadfar reaching consequences

Decided to review everything that they were doing byasking fundamental questions & implementingemerging answers

It took a lot of courage to implement what theybelieved in & after a decade started reaping fruits oftheir efforts

By 1992 accomplished their dream of becoming the

largest car manufacturer in the world
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Japanese companies began to report success aftersuccess, often outstripping American companies

American teams began visiting Japan to try &

understand their practices

Americans attributed success of Japanese companiesto the singularly different Japanese culture

Gradually Americans began to realize that Japanesepractices could be transcend cultural borders andcould be implemented anywhere

Americans began adopting Japanese practices andTQMTQMwas born


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The phrase "total quality management" is believed tohave been coined by the Department of American

Navy when they adapted the Deming principles totheir quality management program

TQM also owes its origin to Dr. Armand Feigenbaumand his book 'Total Quality Control'

As western understanding of Japanese practicesgrew, TQM underwent many revisions

TQM continues to be an evolving art & science


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Total Quality ManagementTotal Quality Management[TQM][TQM]

DEFINITION Total quality Management is defined as an integrated

approach in delightingdelightingthe customer (both internalthe customer (both internal& external) by meeting their expectations& external) by meeting their expectations on a

continuous basis, through involvement of everyone inthe organization, working towards continuousimprovement along with proper problem solvingmethodology

TQM is a management philosophy that seeks tointegrate all organizational functions (marketing,finance, design, engineering, and production,customer service, etc.) to focus on meeting customerneeds and other organizational objectives


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Basic Concepts of TQMBasic Concepts of TQM

CUSTOMER Refers to all those to whom product or service or information is

supplied

Customers maybe external or internal

External Customers Ultimate buyers & users of products and services, stockists,

retailers and transporters

Internal Customers

Departments with the company

e.g. Production dept. is customer of Purchase dept.

Sales dept. is customer of dispatch dept.

Pleasing internal customer is fundamental to pleasing externalcustomers


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... Basic Concepts of TQM... Basic Concepts of TQM

CUSTOMER DELIGHT

A quality product or service meets or exceeds

customer expectations The customer is delighted rather than merely

satisfied


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QUALITY

Following 3 definitions bring out the meaning ofquality

QUALITY IS FITNESS FOR USEQUALITY IS FITNESS FOR USE

Definition put forth by Juran

Represents customers view point

Important as customer is the ultimate user ofproducts & services

Customers are usually multiple and put productsor services to multiple uses, not intended bymanufacturer


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QUALITY IS ESTABLISHING STANDARDS &QUALITY IS ESTABLISHING STANDARDS &SPECIFICATIONSSPECIFICATIONS

If fitness of use has to be incorporated, standard andspecifications for products & services have to be laid

down Various bureaus that establish a list of standards,

specification & tolerances to facilitate manufacture ofproducts of good quality

BIS - Bureau of Indian Standards earlier ISI

USP - United States Pharmacopoeia

JIS Japanese Industrial Standards

ISO International Standards Organization


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QUALITY IS CONFORMING TO STANDARDSQUALITY IS CONFORMING TO STANDARDS

Standards are meaningless unless they are

conformed to Few tools that focus on quality management,

assurance and control techniques

Statistical Process Control

Poka Yoke (Mistake Proofing)


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1. PERFORMANCE? Does the product or service do what it is supposed to do,

within its defined tolerances

Refers to theprimary operating characteristicsprimary operating characteristics of a

product e.g.

For an automobile these characteristics would beacceleration, handling, cruising speed etc

For a television it would include sound, picture qualityetc

Performance is often a source of contention between

customers and suppliers, particularly when deliverablesare not adequately defined within specifications

Dimensions of ProductDimensions of ProductQualityQuality


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2. FEATURES? Does the product or service possess any

supplementary features

Are the 'bells & whistlesbells & whistles' of products Those secondary characteristics that

supplement the basic functioning of the product

e.g. For an automobile power steering, power

windows

For a television automatic tuners

... Dimensions of Product... Dimensions of ProductQualityQuality


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3. RELIABILITY? Will the product consistently perform within

specifications

Reflects the ability of a product toability of a product toperform without failureperform without failurewithin a specifiedperiod of time

A product specification may defineparameters for up-time, product life, oracceptable failure rates



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6. SERVICEABILITY

? Is the product relatively easy to maintain &

repair Speed, efficiency & competency of repairSpeed, efficiency & competency of repair

Consumers are concerned not only about a

product breaking down but also the elapsedtime before product is functional again orservice is restored



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7. AESTHETICS

? Does the product have a visually appealinglook

Deals with how a product looks, feels,sounds, tastes or smells

Subjective & a matter of personal judgment,personal tastes & preferences

The aesthetic properties of a productcontribute to a companys or brands identity


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8. PERCEPTION Perception is subjective

Because consumers do not always possess completeinformation about product attributes, they frequently rely onindirect measures when comparing brands which influence

customer perception

The product or service may possess adequate or evensuperior dimensions of quality, but still fall victim to negativecustomer or public perceptions

e.g A high quality product maybe perceived as being low quality

based on poor service by installation or field technicians

If the product is not installed or maintained properly, andfails as a result, the failure is often associated with the

products quality rather than the quality of service



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Dimensions of ServiceDimensions of ServiceQualityQuality

1. TANGIBLES

Refers to the appearance of the physicalsurroundings and facilities, equipment,

personnel and the way of communication

The tangible dimension is about creatingfirst hand impressions

A company should want all their customersto get a unique positive and never forgettingfirst hand impression, this would make them

more likely to return in the future


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... Dimensions of Service... Dimensions of ServiceQualityQuality

2. RELIABILITY

Refers to how the company are performingand completing their promised service,

quality and accuracy within the given setrequirements between the company and thecustomer

Reliability is just as important as a good firsthand impression, because every customer

wants to know if their supplier is reliable andcan fulfill the set requirements withsatisfaction


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3. RESPONSIVENESS

Refers to the willingness of the company to

help its customers in providing them with agood quality and fast service

This is also a very important dimension,

because every customer feels more valuedif they get the best possible response


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5. EMPATHY

Refers to how the company cares and givesindividualized attention to their customers,to make the customers feeling extra valuedand special

The 5th dimension is actually combining the

2nd, 3rd and 4th dimension to a higher level

If the customers feel they get individualizedand quality attention there is a very big

chance that they will return again

Dimensions of ProductDimensions of Product


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Dimensions of ProductDimensions of ProductQuality v/s. ServiceQuality v/s. Service

QualityQuality

Conformance to specifications Performance

Reliability

Features

Durability

Serviceability

Tangible factors Consistency

Responsiveness to customer

needs

Courtesy / friendliness

Timeliness / promptness

Atmosphere

Product Quality Service Quality


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Costs of QualityCosts of Quality

The concept of costs of quality emerged in the 1950s

Quality affects all aspects of the organization and hasdramatic cost implications

The most obvious consequence occurs when poor qualitycreates dissatisfied customers and eventually leads toloss of business

However, quality has many costs, which can beorganized into four major categories

Prevention costPrevention cost

Appraisal costAppraisal cost

Internal Failure CostsInternal Failure Costs

External Failure CostsExternal Failure Costs
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... Costs of Quality... Costs of Quality

1. PREVENTION COST Costs incurred in the process of preventing poor quality

from occurring

Includes

Quality planning costs, such as the costs ofdeveloping and implementing a quality plan

The costs of product and process design, from

collecting customer information to designingprocesses that achieve conformance to specifications

Employee training in quality measurement

The costs of maintaining records of information and

data related to quality


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2. APPRAISAL COST

Costs incurred in the process of uncovering defects

Includes

Cost of quality inspections, product testing andperforming audits to make sure that qualitystandards are being met.

Costs of worker time spent measuring quality andthe cost of equipment used for quality appraisal


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3. INTERNAL COST

Costs incurred in discovering poor product qualitybefore the product reaches the customer site

Includes

Cost of rework viz cost of correcting the defectiveitem

If product is defective and cannot be reworked andmust be thrown away. This is called scrap


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4. EXTERNAL COST

Costs of failure at customer site

Includes

Cost of customer complaints, product returns,product repairs, and product recalls

Cost of canceled orders

Warranty Claims including the cost of repair orreplacement, as well as associated administrativecosts

Product Liability Costs, resulting from legal actions

and settlements


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... Quality Control [QC]... Quality Control [QC]

The aim of QC is to provide the best quality ofproducts and services to the customer, therebymeeting or even exceeding the customer service

requirements

A QC system is designed for the following:

To provide regular check so as to ensure the

product meets standards & specifications

To detect errors and to address them

To document & record all the quality control

processes


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... Quality Control [QC]... Quality Control [QC]

QC teams aim to identify reasons for the product or service'sinability to meet the required standards

When a problem is spotted, further production of products or thedelivery of service is brought to a halt, until the problem is rectified

Production or service delivery resumes only after the problem hasbeen rectified

Generally, the QC team's job is confined to measuring the quality

level. The reasons behind the drop in quality are found, and theirrectification is done by other teams

QC is not only confined to processes, products and services, butalso includes people. The efficiency of employees in a company isalso monitored, as inefficient, incompetent employees can affectthe quality


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Quality Assurance [QA]Quality Assurance [QA]

DEFINITION

ISO 9000 Definition

All those planned and systematic activitiesimplemented to provide adequate confidence, thatan entity will fulfill requirements for quality

The process of validating whether the products orservices match up or exceed the customer

expectations

Aim of QA is to use a planned & systematicproduction process, such that, a confidence

regarding the suitability of the product is created


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... Quality Assurance [QA]... Quality Assurance [QA]

The two principles adopted by QA are:

The product or service should be suitable and fitfor the intended purpose

The processes used should be such, that theyeliminate the errors and the shortcomings, thefirst time itself. This means, that one has tocome up with the right product, the first timethe right product, the first time

itselfitself The regulation of raw material quality, products,

components, assemblies and services related tovarious functions, such as production, inspection,

management, etc come under QA


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... Quality Assurance [QA]... Quality Assurance [QA]

To deliver quality that meets or exceeds the customerexpectations, it is important to know what is the qualityexpected by the final customer

The first step in QA is establishing objectives and

designing the processes required to deliver the requiredend results

The next step is implementation of the designedprocesses, after which, the monitoring and evaluation of

the results is carried out If the results fail to meet the predetermined objectives,

necessary actions have to be taken

These QA steps, when repeated throughout the life cycleof a product or service, result in improved efficiency


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QC v/s. QAQC v/s. QATypical QC steps

Typical QA steps


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QC v/s. QAQC v/s. QA

Product oriented

Works at finding defects

Reactive

Involves problem

identification, problem

analysis, problem correctionand feedback

Evaluates whether or not

the final result is

satisfactory

Quality Control [QC]

Process oriented

Works at preventing defects Proactive

Involves data collection,

problem trend analysis, process

identification, process analysisand process improvement

Ensures that the processes

being implemented, meet the

predetermined objectives

Quality Assurance [QA]


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Quality CirclesQuality Circles

1962, first quality circle was launched in Japanunder the leadership of Prof. Ishikawa

Concept soon spread all over Japan& became amovement, which now has more than 10 millionworkers involved in Quality Circles.

Now over 40 countries are using Quality circles

In India some of the organizations which haveintroduced Quality Circles are BHEL, TVS,TELCO, L&T, State Bank of India, Bank of Baroda

etc


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... Quality Circles... Quality Circles

A quality circle is a small group of employeesdoing similar or related work who meet regularlyto identify, analyze, and solve product-quality and

production problems and to improve generaloperations

A quality circle is aparticipatory managementparticipatory managementtechniquetechnique that enlists the help of employees in

solving problems related to their own jobs

Although most commonly found in manufacturingenvironments, quality circles are applicable to a wide

variety of business situations and problems


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The circle is a relativelyautonomous unit of around 4-15members (ideally about 8members), usually led by a

supervisor or a senior workerand organized as a work unit


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Employees who participate in quality circles usuallyreceive training in formal problem-solving methods

such as brainstorming, pareto analysis, and cause-and-effect diagramsand then are encouraged toapply these methods to either specific or generalcompany problems

After completing an analysis, they often present theirfindings to management and then handleimplementation of approved solutions


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CHARACTERISTICS

Volunteers

Set rules and priorities

Decisions made by consensus

Use of organized approaches to problem-solving

All members of a Circle need to receive training Members need to be empowered

Members need to have the support of Senior

Management


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ADVANTAGES

Increase productivity

Improve quality

Boost employee morale

DISADVANTAGES / PROBLEMS

Inadequate training

Unsure of purpose

Not truly voluntary

Lack of management interest

Quality Circles are not really empowered to make

decisions


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Quality ToolsQuality Tools

Quality Circles use certain basic tools to identify,analyze & resolve problems

The Seven tools of Quality Control are

Check SheetCheck Sheet

FlowchartsFlowcharts

Cause-and-Effect DiagramsCause-and-Effect Diagrams

Pareto AnalysisPareto Analysis

HistogramsHistograms

Control ChartsControl Charts

Scatter DiagramsScatter Diagrams

... Quality Tools... Quality Tools


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Check SheetCheck Sheet

AKA Checklist

Is a data recording tool

Common defects and the number of observedoccurrences of these defects are recorded

It is a simple yet effective fact-finding tool thatallows the worker to collect specific informationregarding the defects observed

From the check sheets, data can be loadedinto excel spreadsheets

... Quality ToolsQ y



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... Check Sheet... Check Sheet

e.g.

Check sheet above shows four defects & the number oftimes they have been observed

It is clear that the biggest problem is ripped material

This means that the plant needs to focus on this specificproblem for example, by going to the source of supply orseeing whether the material rips during a particular

production process

... Quality ToolsQ y


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... Check Sheet... Check Sheet

Uses of check sheets

Used for recording & keeping track of defects

Provides frequency of quality problems Limitations

Shows where problems have occurred but does

not show the causes of the problems Hence check sheets should be used as

forerunner for problem identification & problemanalysis

Q yQ y



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FlowchartsFlowcharts

A flowchart is a schematic diagram of thesequence of steps involved in an operation orprocess i.e., actions which transform an input to

an output for the next step Its a visual tool that is easy to use and understand

By seeing the steps involved in an operation or

process, everyone develops a clear picture of howthe operation works and where problems couldarise

Q yQ y



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... Flowcharts... Flowcharts

In making a flow chart, the process owner oftenfinds the actual process to be quite different thanit was thought to be

Often, non-value-added steps become obviousand eliminating these provides an easy way toimprove the process

When the process flow is satisfactory, each stepbecomes a potential target for improvement

Q yQ y



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... Flowcharts... FlowchartsQ yQ y



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Uses of flowcharts

Provides a pictorial representation of steps in aprocess

Analyzing a flowchart helps identify areas forimprovement

Problem Areas

A potential problem area in flow charting is theuse of assumed or desired steps rather thanactual process steps in making the chart

... Flowcharts... FlowchartsQ yQ y



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AKA Fish-bone Diagram / Ishikawa Diagram

Developed by Dr. Kaoru Ishikawa of Japan

Is an investigative tool that helps identifypotential causes for particular quality problems

They are also called fish bone diagrams

because they look like the bones of a fish

Cause-and-Effect DiagramCause-and-Effect DiagramQ yy



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... Cause-and-Effect Diagram... Cause-and-Effect DiagramQ y

General Cause-and-Effect DiagramGeneral Cause-and-Effect Diagram



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The head of the fish is the quality problem, such as damagedzippers on a garment or broken valves on a tyre

The spine of the fish connects the head to the possiblecause of the problem

These causes could be related to the machines, workers,measurement, suppliers, materials, and many other aspects ofthe production process

Each of these possible causes can then have smaller bonesthat address specific issues that relate to each cause

e.g.

A problem with machines could be due to a need foradjustment, old equipment, or tooling problems

A problem with workers could be related to lack of training,

poor supervision, or fatigue

... Cause-and-Effect Diagram... Cause-and-Effect Diagram



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Uses of Cause-and-effect diagram

Problem-solving tools commonly used by qualitycontrol teams

Allow user to show all possible causes to a problem

Then the the most likely cause of the problem canbe identified

Are typically constructed through brain-stormingtechniques, hence are often drafted by hand on paper

Two software packages capable of drawing Cause-

and-effect diagrams AutoCAD & CADKEY

P Ch... Quality Tools... Quality Tools


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Pareto ChartsPareto Charts

Tool is based on Italian economist VilfredoPareto's rule of 80-20 viz Vital few & trivialmany

The 80-20 rule applied to quality -Approximately 80% of the problems arecreated by approximately 20% of the causes

Pareto Chart is a graphical representation ofthe most frequent causes of a specific problem

Chart helps identify areas for putting maximum

effort for correcting, for getting best results

hP Ch... Quality Tools... Quality Tools


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... Pareto Charts... Pareto Charts

Constructing a Pareto Chart

Information must be selected based on typesor classifications of defects that occur as aresult of a process

The data must be collected and classifiedinto categories

Then a histogram or frequency chart is

constructed showing the number ofoccurrences in descending order

Thereafter focus shifts to correcting problem

with maximum occurrences

P ChP t Ch t... Quality Tools... Quality Tools


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P ChP t Ch t... Quality Tools... Quality Tools


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P t Ch tP t Ch t... Quality Tools... Quality Tools


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S tt DiS tt Di... Quality Tools... Quality Tools


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Scatter DiagramScatter Diagram

AKA scatter plot, X-Y graph

A scatter diagram is a tool for analyzing

relationships between two variables One variable is plotted on the horizontal axis

and the other is plotted on the vertical axis

The pattern of their intersecting points cangraphically show relationship patterns

Most often a scatter diagram is used to prove

or disprove cause-and-effect relationships

S tt DiS tt Di... Quality Tools... Quality Tools


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... Scatter Diagram... Scatter Diagram

When to use:

Use a scatter diagram to examine theories about cause-and-effectrelationships & to search for root causes of an identified problem

Use a scatter diagram to design a control system to ensure thatgains from quality improvement efforts are maintained

How to use:

Collect data Gather 50 to 100 paired samples of data that show apossible relationship

Draw roughly equal horizontal and vertical axes of the diagram,creating a square plotting area

Label the axes in convenient multiples (1, 2, 5, etc.) increasing onthe horizontal axes from left to right and on the vertical axis frombottom to top

Plot the data on the chart, using concentric circles to indicaterepeated data points

Title and label the diagram

S tt DiScatter Diagram... Quality Tools... Quality Tools


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... Scatter Diagram... Scatter Diagram

Interpret the data Scatter diagrams will generally show one of six possible

correlations between the variables:

Strong Positive Correlation The value of Y clearly

increases as the value of X increases Strong Negative Correlation The value of Y clearly

decreases as the value of X increases

Weak Positive Correlation The value of Y increases

slightly as the value of X increases Weak Negative Correlation The value of Y decreases

slightly as the value of X increases

No Correlation There is no demonstrated connection

between the two variables


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Control ChartControl Chart... Quality Tools... Quality Tools


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Control ChartControl Chart

AKA Statistical process control

A means of monitoring a process according to tolerancelimits and is a visual means of representing whether aprocess is within statistical limits

The chart allows the user to track the normal variations

that indicate a process is in control and to determine whenit goes out of control

The charts are made by plotting in sequence themeasured values of samples taken from a process

e.g the number of defects in a sample of a product, themiles per gallon of automobiles tested sequentially in amodel year, etc.

These measurements are expected to vary randomly

about some mean with a known variance



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... Control Chart... Control Chart

From the mean and variance, control limits can be

established

Control limits are values that sample measurements arenot expected to exceed unless some special causechanges the process

A sample measurement outside the control limits thereforeindicates that the process is no longer stable, and isusually reason for corrective action

Other causes for corrective action are non-randombehavior of the measurements within the control limits.

Control limits are established by statistical methodsdepending on whether the measurements are of a

parameter, attribute or rate



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... Control Chart... Control Chart

HistogramHistogram... Quality Tools... Quality Tools


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HistogramHistogram

Are a graphical representation of the distributionof data by category

It is a more effective way of displaying data than

a table of figures because it gives a visualindication of relationships

When to use it:

Use a histogram to observe whether data fallsinto a specific pattern

The histogram will indicate the extent of

variation outline

HistogramHistogram... Quality Tools... Quality Tools


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HistogramHistogram

e.g. A histogram maybe used to observe the number ofdefective pieces manufactured in a month. Asuccession of histograms can be used for comparison


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Walter A ShewhartWalter A Shewhart... Quality Gurus... Quality Gurus


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7878WALTER A. SHEWHART (1891 1967)

Awarded doctorate in physics from theUniversity of California, Berkeley in 1917

Worked as statistician at Bell Labsduring the 1920s and 1930s

Studied randomness and recognized thatvariability existed in all manufacturing processes

Developed quality control charts that are used toidentify whether the variability in the process israndom or due to an assignable cause, such as

poor workers or mis-calibrated machinery

Walter A. ShewhartWalter A. Shewhart

Walter A ShewhartWalter A Shewhart... Quality Gurus... Quality Gurus


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Stressed that eliminating variability improvesquality

His work created the foundation for todays

statistical process control

Developed the Plan-Do-Check-Act (PDCA) cycle

He is often referred to as the grandfather ofquality control

... Walter A. Shewhart... Walter A. Shewhart

William E DemingWilliam E Deming... Quality Gurus... Quality Gurus


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William E. DemingWilliam E. Deming

WILLIAM E. DEMING (1900 1993)

Often referred to as the father of quality control

In the 1940s was a professor of statistics professorat New York University

After World War II he assisted many Japanese

companies in improving quality

Made a significant contribution to Japan's laterreputation for innovative high-quality products and itseconomic power

He is regarded as having had more impact upon Japanesemanufacturing and business than any other individual not ofJapanese heritage

The Japanese regarded him so highly that in 1951 they establishedthe Deming Prize, an annual award given to firms that demonstrate

outstanding quality



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... William E. Deming... William E. Deming

SIGNIFICANT CONTRIBUTIONS

Historically, poor quality was blamed on workers ontheir lack of productivity, laziness, or carelessness

However, Deming pointed out that only 15% of qualityproblems are actually due to worker error

The remaining 85% are caused by processes andsystems, including poor management

Deming said that it is up to management to correct systemproblems and create an environment that promotes qualityand enables workers to achieve their full potential



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Popularized the Plan-Do-Check-Act (PDCA) cycle whichalso came to be known as Deming's Wheel

Deming outlined his philosophy on quality in his famous 14Points presented in his book Out of the Crisis in 1982

These principles Are founded on the idea that upper management must

develop a commitment to quality and provide a system tosupport this commitment that involves all employees &

suppliers Help guide companies in achieving quality improvement

Stress that quality improvements cannot happen withoutorganizational change that comes from upper

management

Willi E D iWilli E D i

... Quality Gurus... Quality Gurus


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DEMING'S 14 POINTS OF MANAGEMENT

1. Create constancy of purpose for improvement ofproduct & service

Companies should think hard about the future,developing both a plan & method to stay in business

Establishing Constancy of purpose implies

Innovation

Putting resources into research & development

Continuous improvement of product & services

Invest in maintenance of equipment, furniture &

fixtures


.... William E. Deming.... William E. Deming... Quality Gurus... Quality Gurus


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2. Adopt the new philosophy

Companies can no longer live with

commonly accepted levels of delays,mistakes, defective workmanship

3. Cease dependence on mass inspection

Require, instead, statistical evidence thatquality is built in

4. End the practice of running the business onprice alone

.... William E. Demingg

... DEMING'S 14 POINTS OF MANAGEMENT

... William E. Deming... William E. Deming... Quality Gurus... Quality Gurus


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5. Improve constantly and forever the system ofproduction and service

Improvement is not a one-time process

To ensure whether a firm is improving or not askthe following questions

? Is the firm doing better than a year ago

? Is marketing more effective? Has customer satisfaction increased

? Has pride & performance of employees

improved

... William E. Demingg




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6. Institute training & retraining

Employees should be trained in different skill

sets for different jobs7. Institute Leadership

Leadership is management's job

Leadership must help people do their jobsbetter

Leadership must take responsibility for their

success & failure





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8. Drive out fear Employees are usually afraid of

Losing their raises & promotions

New assignments

Superior's threats

Admitting mistakes etc

Management must provide an atmospherewherein employees feel secure so that theycome up with innovative ideas, suggestions &

improvements over the existing system

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9. Break down barriers between departments Employees work in the system created b y the

management

It is the management's job to help different departments

work together as teams10. Eliminate slogans, exhortations, and targets for the

workforce

Majority of causes for low quality & productivity lie with the

system & are beyond the control of the work force Hence exhortations such as asking for zero defects and

new levels of productivity create adversarial relationships

Eliminate slogan as goals without methods for achieving

them are useless

gg




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11. Eliminate numerical quotas

Eliminate numerical quotas for production Instead learn and institute methods for

improvement

Eliminate management by objectives (MBO) Instead, learn the capabilities of processes,

and how to improve them

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14. Take action to accomplish transformation

Put everybody in the company to work to

accomplish the transformation

The transformation is everybody's job

Top management's permanent commitment

to ever-improving quality and productivitymust be clearly defined and a managementstructure created that will continuously takeaction to follow the preceding 13 points




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.... William E. Deming.... William E. Deming


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Step 1: PLAN for changes to

bring about improvement Customer / supplier mapping Flowcharting Pareto Analysis Brainstorming Nominal group techniques Solution / fault tree Cause / effect diagrams

PDCA CyclePDCA Cycle

Step 2: DO changes on a small

scale trial basis Small group leadership skills Experimental design Conflict resolution

On-job training

Step 3: CHECK to see if

changes are working Dated check sheets Control charts

Graphical analysis

Step 4: ACT to get thegreatest benefit from

change Process mapping Process

standardization Reference information Formal training for

standard processes




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Dr. Walter Shewhart developed the Plan-Do-Check-Act (PDCA) cycle

AKA known as Plan-Do-Study-Act (PDSA)Cycle

Popularized by Dr. Deming which led to itbeing referred to as the Deming Cycle

Describes the activities a company needs toperform in order to incorporate continuousimprovement in its operation

... PDCA Cycle... PDCA Cycle



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.... William E. Deminga e g

STEPS IN THE PDCA CYCLE

1. PLAN

Managers must evaluate the current processand make plans based on any problems theyfind

They need to document all current procedures,

collect data, and identify problems

This information should then be studied andused to develop a plan for improvement as well

as specific measures to evaluate performance



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... STEPS IN THE PDCA CYCLE

2. DO

Involves implementing the plan (do) During the implementation process

managers should document all changes

made and collect data for evaluation


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... STEPS IN THE PDCA CYCLE

4. ACT

Involves acting on the basis of the results ofthe first three phases

The best way to accomplish this is to

communicate the results to other membersin the company and then implement the newprocedure if it has been successful



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PDCA is a cycle; the next step is to planagain

After reaching the act phase, the cyclerepeats again

... PDCA Cycle... PDCA Cycle

Joseph M. JuranJoseph M. Juran... Quality Gurus... Quality Gurus


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pp

JOSEPH M. JURAN (1904 - 2008) 1920 graduated from University of

Minnesota with a degree in ElectricalEngineering

Industrial career began at WesternElectric in the inspection department

1937 head of the Industrial Engineering Dept. Wrote the standard reference work on quality

control, the Quality Control Handbook, firstpublished in 1951 & now in its 4th edition

... Joseph M. Juran... Joseph M. Juran... Quality Gurus... Quality Gurus


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pp

1954 went to Japan to work with manufacturers andteach classes on quality

During his 1966 visit to Japan, Juran learned about

the Japanese concept of Quality Circles which heenthusiastically evangelized in the West

Emperor Hirohito awarded him Japan's highestaward that can be given to a non-Japanese, the

Order of the Sacred Treasure

It was bestowed in recognition of his contribution to"the development of quality control in Japan and the

facilitation of U.S. and Japanese friendship

... Joseph M. Juran... Joseph M. Juran... Quality Gurus... Quality Gurus


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pp

Though his philosophy is similar to Demings,there are some differences

Whereas Deming stressed the need for anorganizational transformationtransformation, Juran believesthat implementing quality initiatives should notshould notrequire such a dramatic changerequire such a dramatic change and thatquality management should be embedded inquality management should be embedded inthe organizationthe organization


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Armand V. FeigenbaumArmand V. Feigenbaum


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ARMAND V. FEIGENBAUM (1922) American quality control expert &

businessman

Master's degree and Ph.D. from MIT 1958-1968 worked as Director of

Manufacturing Operations at General Electric

1961-1963 served as President of the AmericanSociety for Quality

Is now President and CEO of General SystemsCompany of Pittsfield, Massachusetts, an engineering

firm that designs and installs operational systems

g


...... Armand V. FeigenbaumArmand V. Feigenbaum


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Introduced the concept of total quality control

Presented the concept of TQM in his book 'Total Quality

Control'

Promoted the idea of a work environment where qualitydevelopments are integrated throughout the entireorganization, where management and employees have atotal commitment to improve quality, and people learnfrom each others successes

This philosophy was adapted by the Japanese and

termed company-wide quality control

g

Philip B. CrosbyPhilip B. Crosby... Quality Gurus... Quality Gurus


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108108PHILIP B. CROSBY (1926 - 2001)

1952 started working for the CrosleyCorporation, as a junior electronic testtechnician

Asked to join the American Society forQuality Control, the Richmond section,

where his early concepts concerning"quality" began to form

1955 worked for Bendix Corporation as a reliabilitytechnician

Bendix & the U.S. Navy were developing and testingthe TALOS missile & as a quality engineer Crosby was

to investigate defects found by the testers & inspectors

... Philip B. Crosby... Philip B. Crosby... Quality Gurus... Quality Gurus


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1964, he received the Distinguished Civilian ServiceMedal from the Dept. of the Army, to recognize hisdevelopment of the concept of Zero Defects

1965, joined ITT as Corporate V. P. of Quality 1979, he established his own consulting firm

He has written 13 books some of which are Quality isFree, Quality Without Tears, Running Things, TheEternally Successful Organization and Leading: TheArt of Becoming An Executive, Zero Defects

His first book, Quality is Free has been credited with

beginning the quality revolution in the US and Europe



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Created the zero defectszero defects concept of qualitymanagement arguing that no amount of defects

should be considered acceptable Developed the phrase Do it right the first time

Scorned the idea that a small number of defects is

a normal part of the operating process becausesystems and workers are imperfect

Instead, he stressed the idea of prevention



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111111... SIGNIFICANT CONTRIBUTIONS

He became famous for coining the phrase quality is freeand for pointing out the many costs of quality, whichinclude not only the costs of wasted labor, equipment

time, scrap, rework, and lost sales, but also organizationalcosts that are hard to quantify

Crosby stressed that efforts to improve quality more thanpay for themselves because these costs are prevented.

Therefore, quality is freequality is free Like Deming and Juran, Crosby stressed the role of

management in the quality improvement effort and the useof statistical control tools in measuring and monitoring

quality


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... Crosbys 14-point Program

12. Encourage employees to inform management ofany problems that prevent them from performing

error-free work13. Non-financial appreciation must be given to their

quality goals

14. Do all again, to emphasize the never-endingprocess of quality improvement

Kaoru IshikawaKaoru Ishikawa... Quality Gurus... Quality Gurus


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115115KAORU ISHIKAWA (1915 - 1989)

1939 graduated from the EnggDepartment of Tokyo University

1960 obtained his Doctorate ofEngineering

Awarded

The Deming Prize

The Nihon Keizai Press Prize

The Industrial Standardization Prize for his writingson Quality Control

The Grant Award from the American Society for

Quality Control

... Kaoru Ishikawa... Kaoru Ishikawa... Quality Gurus... Quality Gurus


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SIGNIFICANT CONTRIBUTIONS Developed quality tool called cause-and-effect

diagrams

AKA as fishbone or Ishikawa diagrams These diagrams are used for quality problem solving

The first quality guru to emphasize the importance ofthe internal customer, the next person in the

production process

One of the first to stress the importance of totalcompany quality control, rather than just focusing on

products and services



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... SIGNIFICANT CONTRIBUTIONS

Believed that everyone in the company needed to beunited with a shared vision and a common goal

Stressed that quality initiatives should be pursued atevery level of the organization and that all employeesshould be involved

Proponent of implementation of quality circles, whichare small teams of employees that volunteer to solvequality problems


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... SIGNIFICANT CONTRIBUTIONS

Believed that everyone in the company needed to beunited with a shared vision and a common goal

Stressed that quality initiatives should be pursued atevery level of the organization and that all employeesshould be involved

Proponent of implementation of quality circles, whichare small teams of employees that volunteer to solvequality problems

Evolution of TQMEvolution of TQM


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... Evolution of TQM... Evolution of TQM


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121121

Mass Inspection Inspecting

Salvaging

Sorting

Grading

Rectifying Rejecting

Quality Control

Quality manuals

Product testing using SQC

Basic quality planning

Quality Assurance

Emphasis on prevention Proactive approach using

SPC

Advance quality planning



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Total Quality Control

All aspects of qualityof inputs

Testing equipments

Control on processes

Company wide QualityControl

Measured in all

functions connectedwith production suchas

R&D DesignEngineering

Purchasing

Operations etc


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Principles of TQMPrinciples of TQM


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The customer is the ultimate determiner of quality Services and programs should be designed, with the

needs of the customer in mind

Quality should be built from the beginning, and not

simply derived from customer complaints

Achieving quality requires continuous improvements,because customer expectations are always changing

Each department of an organization must be involvedin producing a quality product and not just try tomodify it before delivery

TQM is not a one-time activity but has to be pursued

by all employees of the organization continuously


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Steps in TQMSteps in TQMMost companies use TQM to


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127127 Most companies use TQM to

Improve customer value

Increase the sales

Increase profitability from goods & services

Different methods may be used for TQM methods, but

they will usually include similar steps in achievingcompany goals

1. Customer Focus

Companies collect and review customer data regarding

satisfaction on goods & services, current demands fornew products and suggested changes for existingproducts

Developing a customer-focused strategy of improving

products and meeting customer needs

... Steps in TQM... Steps in TQM


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1281282. Planning Process

Companies collect and review customer data regardingsatisfaction on goods & services, current demands fornew products and suggested changes for existingproducts

Using the information gathered from their customer-focused strategy, companies plan their businessprocesses to meet needs of customers

Involves changing production materials, correcting

product flaws and creating new product features Businesses must understand that product quality is

based on the perception of customers; planning anddeciding how to achieve this perception are important in

TQM



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1291293. Process Management

Once the planning process is complete, focus shifts tothe actual production processes

Includes reviewing costs of raw materials, processes ofmanufacturing & delivering products and services to

Ensure they are consistent in quality standards

Ensure products continue to meet customer needs

Ensure products are available at the right place, at

the right time,in the right quantities

Ensuring products & services are being provided atlowest possible costs



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4.Process Improvements

TQM is driven by the understanding that no

consumer market continues to operate at thesame level of demand every year

As the business cycle moves through boomsand busts, customers change preference andincomes change; companies must be willing toadjust to these changes to ensure TQM for theirproducts and services


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Benefits of TQMBenefits of TQM


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When organization follows TQM principles, they gainboth measurable and intangible benefits such as

Ability to be more competitive

Increased market share Cost reductions

Increased flexibility and responsiveness

Simplified process

Improved communication

Less Frustration & more satisfaction among the

workforce


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Where TQM FailsWhere TQM Fails


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TQM must be customized for each company May a times organizations buy solutions off the shelf, often sold by

consultants

Sometimes managers become impatient & focus on short-term gain

Managers do not understand importance of long-term gains whichleads to implementation failure

Managers focus too much on tools & techniques & may notunderstand properly how to transform themselves, their employees &the organization

Managers use TQM as 'quick fix' to solve a variety of problems

These action may be shortsighted & when there are no quickachievements, TQM program may be abandoned & all efforts maybe wasted

Inability to change organization culture

... Where TQM Fails... Where TQM Fails


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135135 Lack of discipline required for transformation

Inability to maintain momentum in the TQM program Managers loose focus on external processes

One of the primary requirements of TQM is proper focus on internalprocesses

Managers may get so engrossed in internal processes that theymay loose focus on external processes such as shifting customerperceptions, changing customer tastes & preferences

Managers fail to understand that mutual trust & support betweencustomers & suppliers are the keys to success

Achieving certifications like ISO 9001-2000 or ISO 14000 or any otherawards are not an end to TQM but the beginning to a journey ofquality

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