TQM in PracticeTQM in Practice

Quality & Productivity Society of Pakistan

Get to Know You

NameEducation OrganizationExperience

Be on time

Keep confidences

Focus on the issues

Participate positively

Adult Rules

You can sleep Phone on silent mode Drink / Toilet

Learning Learning ObjectivesObjectives

What is Quality?

Purpose of TQM

What is TQM

TQM Evolution

Major Contributors to TQM

TQM Principles

TQM Applications / Tools

Current Global Scenario

How do you feel if you receive How do you feel if you receive a defective product?a defective product?

How do people feel if they receive a defective product?

Although it is one of the many distributed products, it is the only one for the person who received .

What is Quality?What is Quality?

QualityQuality

Fitness for Use(Juran 1988)

Quality is conformance to requirements or specifications (Crosby 1979)

Quality is fitness for use (Juran 1988)

Quality should be aimed at the needs of the consumer, present and future (Deming, 1986)

QualityQuality

DEMING SAID…

“Reduced variation is Quality.”

Integrated QualityIntegrated Quality

QualityQuality

CustomerRequirements

ProcessCapability

CostCost

Selling Price

Production Cost

DeliveryDelivery

Customer Schedule

Process Speed

Supplier

Customer

CustomersCustomers

“Anyone who thinks customers are not important should try doing BUSINESS without

them for a week”

Source : Unknown

Types of CustomersTypes of Customers

External Customers Final Customers/End-Users Intermediate

Internal Customers

● By materializing permanent, continuous customer satisfaction, ensure long-term, healthy profit for the business and promote the growth ● The “purposes” include the satisfaction of employees, convenience to the societies, and improved profits to business associates, shareholders and all other parties related to the business.

Business PurposesBusiness Purposes

Competitive Advantage

The ability of a firm to win consistently over the long term in a competitive situation.

Competitive advantage is created through the achievement of five qualities

Non-substitutability Appropriability

Superiority Inimitability Durability

1 Production of perfect, defect-free products

2 Development of new products/new technologies

3 Reduction of production costs

4 Labor-saving via introduction of advanced production technologies

5 Consumption of less material and energy in production

6 Elevation of customer satisfaction (CS)

7 Prevention of product-liability (Warranties)

8 Improvement of financial structure

9 Environmental protection, pollution prevention

10 Tributes to mankind, elevation of employee satisfaction (ES)

Competitive Advantage

Why TQM is RequiredWhy TQM is Required

Total Quality Total Quality ManagementManagement

TQM

Made up of the wholeMade up of the wholeTotal

Therefore, TQM is the art of managing Therefore, TQM is the art of managing the whole to achieve excellencethe whole to achieve excellence.

Management

Quality Degree of excellence a Degree of excellence a product or service product or service providesprovides

Art of Planning, Art of Planning, Organizing, Organizing, Controlling etc.Controlling etc.

All personsAll persons

Of all divisionsOf all divisions

At every stratum At every stratum

MBO, Kaizen, QC Circle, 5S, TPM MBO, Kaizen, QC Circle, 5S, TPM

SQC,SPC, FMEA, MSA, OEESQC,SPC, FMEA, MSA, OEE

Q(Quality):Quality improvementQ(Quality):Quality improvement

C(Cost):Cost reductionC(Cost):Cost reduction

D(Delivery):Delivery executionD(Delivery):Delivery execution

S(Safety):Safety maintenanceS(Safety):Safety maintenance

E(Environmental):Environmental protection E(Environmental):Environmental protection M(Morale):Morale boostingM(Morale):Morale boosting

SystemSystem

MethodMethod

PurposePurpose

TQ

M m

eansT

QM

means

Meaning of TQMMeaning of TQM

Systematic activities of operating the whole units of a company effectively and efficiently to supply goods and services of quality satisfactory to customers at right time and at right price, thus contributing to attaining Business Purposes.

Definition of TQMDefinition of TQM

History of TQMHistory of TQM

Three Major Mfg SystemsThree Major Mfg Systemsfrom 1800 to 2000from 1800 to 2000

1800 1900 2000

Machine tools, specialized machine tools, Taylorism, SPC, CNC, CAD/CAM

Interchangeable Parts at U.S. Armories

Mass Production at Ford

Toyota Production System

Key Elements for New Mfg SystemsKey Elements for New Mfg Systems

Element/

System

Need of Society

Enabling Technology

Leader

Interchange-able Parts

Military Machine

Tools,

Division of

Labor

Roswell Lee/

John

Hall

Mass

Production

Trans-

portation

Moving

Assembly

Line,etc

Henry

Ford

Toyota Production System

Post War CNC, Integration of Labor

Taiichi

Ohno

Operator

Quality Control

Foreman

TQM

1900 1918 1920 1980

Evolution

1940

Quality Assurance

TQM EvolutionTQM Evolution

TQM GurusTQM Gurus

Major Contributors to the development of TQM

Dr Edwards Deming Dr Joseph Juran Philip Crosby Armand Feigenbaum Prof. Kaori Ishikawa Genichi Taguchi Masaaki Imai

Deming

Statistician by training Contributions include

14 points for Management The PDCA cycle (Shewhart cycle)

Juran

Involvement of people within Quality Placed emphasis on training process

supervision and operators Primary focus to reduce Cost of

Quality Juran suggests a 10 point plan

Crosby

First to popularize Quality for top management Claimed that all Quality improvement pay for

themselves I.e. that Quality is Free Defines quality as conformance to requirements The only performance indicator is the cost of

quality The only performance standard is zero defects

Feigenbaum

Originator of ‘Total Quality’ conceptDefinition of Quality costs (1956)

Appraisal costsPrevention costsFailure costs

Developed 10 benchmarks for quality success

Ishikawa

Developed several tools and techniques for application Ishikawa cause and effect diagram Defined the seven basic tools of quality

management

Taguchi

Developed concept of the ‘Loss Function’Deviation from target value causes losses

Internal - increased cost of manufacture, increased cost of supply

External - Customer dissatisfaction, warranty costs, loss of reputation & ultimately loss of market

Taguchi implies that Design has a vital Quality function

Imai

Known for the development of ‘Kaizen philosophy (1986)

Focus of improvement activities to the factory shop floor

TQM

Strategic Business

Policy Management

Business Elements

Management

day-to-day Management

Strategic QC Circle

Activities

Activities Conducive to Better Corporate Management

Various ActivitiesTQM

ISO 9001, 14001, 17025, ISO/TS 16949, SA 18001 etc.

KAIZEN, 5S, QCC

TPM, SPC

Six SigmaImprovement in the Quality of

Corporate Management

JIT

and so on

Fusion

TQM as All-Around Activities

MBO, COQ

Application by Management

Many companies now interested in process improvement Statistical Process Control (SPC) Six-sigma quality improvement programmes Benchmarking process performance Business Process Re-engineering

Break

TQM ApplicationTQM Application

TQM FOR TOP MANAGEMENT

Strategic Quality Management (SQM)Competitive Advantage

Strategic Management

Process

Determine strategic intent

Define organizational mission

Analyze environment

Set objectives

Determine requirements

Assess resources

Develop action plans

Implement plans

Monitor outcomes

Strategic Planning Feedback

KPIs Associated with the Cost Leadership Strategy

Objective Setting through SWOT

SWOT ANALYSIS

Internal Strengths Weaknesses

External Opportunities Threats

OTOTSWSW

1.1. In-House WastageIn-House Wastage

2.2. In-House ReworkIn-House Rework

3.3. In-House RejectionsIn-House Rejections

4.4. Warranty – OEMs & Dealers Warranty – OEMs & Dealers

5.5. Receiving Inspection RejectionReceiving Inspection Rejection

TQM AWARDS & FRAME WORKS

Certifications

•ISO 9001:2000 •ISO 14001:2004•ISO 22000:2005 •OHSAS 18001:2007 •SA 8000•ISO 17025•ISO/TS 16949

Awards

•Malcolm Baldrige National Quality Award•EFQM•Deming Award•Corporate Excellence Award – MAP

Operational Excellence

•Lean Management•Six Sigma•Total Productive Maintenance

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PILLARS OF TPM

TPM

Overall Equipment Effectiveness = Availability x Performance x Quality

Yield

Overall Equipment Effectiveness = Availability x Performance x Quality

Yield

Elements of OEE

Availability = Operating Time Total Time Available

Availability = Operating Time Total Time Available

Performance = Ideal Cycle time x No. of Parts Produced Operating Time

Performance = Ideal Cycle time x No. of Parts Produced Operating Time

Quality = Good Parts .

Total Parts Produced

Quality = Good Parts .

Total Parts Produced

TQM FOR WORK FORCE

KAIZENs – KAIZEN BlitzQC CirclesPoke Yoke

3KAIZEN System

KAIZEKAIZENN

KAIZEN Form, Manual & Criteria

KAIZEN Awareness Sessions

Two Monthly Routine KAIZEN CeremonyCash Award & Certificate

Bi-Annual Best KAIZEN CeremonyCash Award

Shield

Aim is Thinking Aim is Thinking WorkersWorkers

It’s not the tip of the iceberg

that’s the problem….It’s what you can’t see…

10% Visible to managers

30% Visible to foremen

60% Visible to workers

Principle of iceberg

Iceberg over water surface

Water surface

Iceberg under water

Examples

Examples

5QC Circles

QC QC CirclesCircles

QC Circle Registration Form

QC Story Awareness Sessions

Bi - Annual Routine QC Circles CeremonyCash Award

Certificate

Annual Best QC Circle CeremonyCash Award

ShieldAim is Let’s Join Aim is Let’s Join

HandHand

TQM FOR BUSINESS PARTNERS

Vendor Development Activity

What we DiscussedWhat we DiscussedWhat is Quality?

Purpose of TQM

What is TQM

TQM Evolution

Major Contributors to TQM

TQM Principles

TQM Applications / Tools

JURAN SAID…

“All quality improvement occurs on a project-by-project basis and in no other way.”