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Total quality management

Total Quality Management (or TQM) is a management concept coined by W. Edwards Deming.

The basis of TQM is to reduce the errors produced during the manufacturing or service process,

increase customer satisfaction, streamline supply chain management, aim for modernization of equipment and ensure workers have the highest level of training. One of the principal aims of 

TQM is to limit errors to 1 per 1 million units produced. Total Quality Management is often

associated with the development, deployment, and maintenance of organizational systems that

are required for various business processes. At its core, Total Quality Management (TQM) is a

management approach to long-term success through customer satisfaction. 

The main difference between TQM and Six Sigma (a newer concept) is the approach. TQM tries

to improve quality by ensuring conformance to internal requirements, while Six Sigma focuses

on improving quality by reducing the number of defects and impurities.

Total Quality Management Leadership

Implementing Total Quality Management ( TQM ) alone cannot ensure its long term business

success. The leader has to drive the TQM implementation in accordance to the TQM principles,

follow the TQM model, provides regular TQM training to all levels of employees. He or she must

take the lead to verify the Total Quality culture is indeed being practiced by the employee as a

whole. One obvious behavior in a Total Quality Culture is the continuous improvement culture

building.

Core Concept of Implementing TQM

A core concept in implementing TQM is Demings 14 points, a set of management practices to

help companies increase their quality and productivity:

1.  Create constancy of purpose for improving products and services.

2.  Adopt the new philosophy.

3.  Cease dependence on inspection to achieve quality.

4.  End the practice of awarding business on price alone; instead, minimize total cost by

working with a single supplier.

5.  Improve constantly and forever every process for planning, production and service.

6.  Institute training on the job.

7.  Adopt and institute leadership.

8.  Drive out fear.

9.  Break down barriers between staff areas.

10. Eliminate slogans, exhortations and targets for the workforce.

11. Eliminate numerical quotas for the workforce and numerical goals for management.

12. Remove barriers that rob people of pride of workmanship, and eliminate the annual

rating or merit system.

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13. Institute a vigorous program of education and self-improvement for everyone.

14. Put everybody in the company to work accomplishing the transformation.

The Cost Of TQM

Many companies believe that the costs of the introduction of TQM are far greater than thebenefits it will produce. However research across a number of industries has costs involved in

doing nothing, i.e. the direct and indirect costs of quality problems, are far greater than the

costs of implementing TQM.

The American quality expert, Phil Crosby, wrote that many companies chose to pay for the poor

quality in what he referred to as the Price of Nonconformance. The costs are identified in the

Prevention, Appraisal, Failure (PAF) Model.

Prevention costs are associated with the design, implementation and maintenance of the TQM

system. They are planned and incurred before actual operation, and can include:

y  Product Requirements The setting specifications for incoming materials, processes,

finished products/services.

y  Quality Planning Creation of plans for quality, reliability, operational, production and

inspections.

y  Quality Assurance The creation and maintenance of the quality system.

y  Training The development, preparation and maintenance of processes.

Appraisal costs are associated with the vendors and customers evaluation of purchased

materials and services to ensure they are within specification. They can include:

y  Verification Inspection of incoming material against agreed upon specifications.

y  Quality Audits Check that the quality system is functioning correctly.

y  Vendor Evaluation Assessment and approval of vendors.

Failure costs can be split into those resulting from internal and external failure. Internal failure

costs occur when results fail to reach quality standards and are detected before they are

shipped to the customer. These can include:

y  Waste Unnecessary work or holding stocks as a result of errors, poor organization or

communication.

y  Scrap Defective product or material that cannot be repaired, used or sold.

y  Rework Correction of defective material or errors.

y  Failure Analysis This is required to establish the causes of internal product failure.

External failure costs occur when the products or services fail to reach quality standards, but

are not detected until after the customer receives the item. These can include:

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y  Repairs Servicing of returned products or at the customer site.

y  Warranty Claims Items are replaced or services re-performed under warranty.

y  Complaints All work and costs associated with dealing with customers complaints.

y  Returns Transportation, investigation and handling of returned items.

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Six Sigma 

Six Sigma seeks to improve the quality of process outputs by identifying and removing the

causes of defects (errors) and minimizing variability in manufacturing and business processes. It

uses a set of quality management methods, including statistical methods, and creates a specialinfrastructure of people within the organization ("Black Belts", "Green Belts", etc.) who are

experts in these methods. Each Six Sigma project carried out within an organization follows a

defined sequence of steps and has quantified financial targets (cost reduction or profit

increase).

The term six sigma originated from terminology associated with manufacturing, specifically

terms associated with statistical modeling of manufacturing processes. The maturity of a

manufacturing process can be described by a sigma rating indicating its yield, or the percentage

of defect-free products it creates. A six-sigma process is one in which 99.99966% of the

products manufactured are statistically expected to be free of defects (3.4 defects per million).Motorola set a goal of "six sigmas" for all of its manufacturing operations, and this goal became

a byword for the management and engineering practices used to achieve it.

Six Sigma originated as a set of practices designed to improve manufacturing processes and

eliminate defects, but its application was subsequently extended to other types of business

processes as well. In Six Sigma, a defect is defined as any process output that does not meet

customer specifications, or that could lead to creating an output that does not meet customer

specifications.

Bill Smith first formulated the particulars of the methodology at Motorola in 1986. Six Sigma

was heavily inspired by six preceding decades of quality improvement methodologies such asquality control, TQM, and Zero Defects, based on the work of pioneers such as Shewhart,

Deming, Juran, Ishikawa, Taguchi and others.

Like its predecessors, Six Sigma doctrine asserts that:

y  Continuous efforts to achieve stable and predictable process results (i.e., reduce process

variation) are of vital importance to business success.

y  Manufacturing and business processes have characteristics that can be measured,

analyzed, improved and controlled.

y  Achieving sustained quality improvement requires commitment from the entireorganization, particularly from top-level management.

Features that set Six Sigma apart from previous quality improvement initiatives include:

y  A clear focus on achieving measurable and quantifiable financial returns from any Six

Sigma project.

y  An increased emphasis on strong and passionate management leadership and support.

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y  A special infrastructure of "Champions," "Master Black Belts," "Black Belts," "Green

Belts", etc. to lead and implement the Six Sigma approach.

y  A clear commitment to making decisions on the basis of verifiable data, rather than

assumptions and guesswork.

The term "Six Sigma" comes from a field of statistics known as process capability studies.Originally, it referred to the ability of manufacturing processes to produce a very high

proportion of output within specification. Processes that operate with "six sigma quality" over

the short term are assumed to produce long-term defect levels below 3.4 defects per million

opportunities (DPMO). Six Sigma's implicit goal is to improve all processes to that level of 

quality or better.

Six Sigma is a registered service mark and trademark of Motorola Inc. As of 2006 Motorola

reported over US$17 billion in savings from Six Sigma. Other early adopters of Six Sigma who

achieved well-publicized success include Honeywell (previously known as AlliedSignal) and

General Electric, where Jack Welch introduced the method. By the late 1990s, about two-thirds

of the Fortune 500 organizations had begun Six Sigma initiatives with the aim of reducing costs

and improving quality.

Six Sigma projects follow two project methodologies inspired by Deming's Plan-Do-Check-Act

Cycle. These methodologies, composed of five phases each, bear the acronyms DMAIC and

DMADV.

y  DMAIC is used for projects aimed at improving an existing business process. DMAIC is

pronounced as "duh-may-ick".

y  DMADV is used for projects aimed at creating new product or process designs. DMADV 

is pronounced as "duh-mad-vee".

The DMAIC project methodology has five phases:

y  Define the problem, the voice of the customer, and the project goals, specifically.

y  Measure key aspects of the current process and collect relevant data.

y  Analyze the data to investigate and verify cause-and-effect relationships. Determine

what the relationships are, and attempt to ensure that all factors have been considered.

Seek out root cause of the defect under investigation.

y  Improve or optimize the current process based upon data analysis using techniques such

as design of experiments, poka yoke or mistake proofing, and standard work to create a

new, future state process. Set up pilot runs to establish process capability.

y  Control the future state process to ensure that any deviations from target are corrected

before they result in defects. Implement control systems such as statistical process

control, production boards, and visual workplaces, and continuously monitor the

process.

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The DMADV project methodology, also known as DFSS ("Design For Six Sigma"), features five

phases:

y  Define design goals that are consistent with customer demands and the enterprise

strategy.

y  Measure and identify CTQs (characteristics that are Critical To Quality), productcapabilities, production process capability, and risks.

y  Analyze to develop and design alternatives, create a high-level design and evaluate

design capability to select the best design.

y  Design details, optimize the design, and plan for design verification. This phase may

require simulations.

y  Verify the design, set up pilot runs, implement the production process and hand it over

to the process owner(s).

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Rapid application development

Rapid Application Development is a software development methodology that involves

techniques like iterative development and software prototyping. According to Whitten (2004),

it is a merger of various structured techniques, especially data-driven Information Engineering,with prototyping techniques to accelerate software systems development.

In Rapid Application Development, structured techniques and prototyping are especially used

to define users' requirements and to design the final system. The development process starts

with the development of preliminary data models and business process models using

structured techniques. In the next stage, requirements are verified using prototyping,

eventually to refine the data and process models. These stages are repeated iteratively; further

development results in "a combined business requirements and technical design statement to

be used for constructing new systems".

RAD approaches may entail compromises in functionality and performance in exchange for

enabling faster development and facilitating application maintenance.

Rapid Application Development is a term originally used to describe a software development

process introduced by James Martin in 1991. Martin's methodology involves iterative

development and the construction of prototypes. More recently, the term and its acronym

have come to be used in a broader, generic sense that encompasses a variety of techniques

aimed at speeding application development, such as the use of web application frameworks

and other types of software frameworks.

Rapid application development was a response to non-agile processes developed in the 1970sand 1980s, such as the Structured Systems Analysis and Design Method and other Waterfall

models. One problem with previous methodologies was that applications took so long to build

that requirements had changed before the system was complete, resulting in inadequate or

even unusable systems. Another problem was the assumption that a methodical requirements

analysis phase alone would identify all the critical requirements. Ample evidence attests to the

fact that this is seldom the case, even for projects with highly experienced professionals at all

levels.

Starting with the ideas of Brian Gallagher, Alex Balchin, Barry Boehm and Scott Shultz, James

Martin developed the Rapid Application Development approach during the 1980s at IBM and

finally formalized it by publishing a book in 1991, Rapid Application Development.

The shift from traditional session-based client/server development to open sessionless and

collaborative development like Web 2.0 has increased the need for faster iterations through the

phases of the SDLC. This, coupled with the growing utilization of open source frameworks and

products in core commercial development, has, for many developers, rekindled interest in

finding a silver bullet RAD methodology.

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Although most RAD methodologies foster software re-use, small team structure and distributed

system development, most RAD practitioners recognize that, ultimately, there is no single

rapid methodology that can provide an order of magnitude improvement over any other

development methodology.

All flavors of RAD have the potential for providing a good framework for faster productdevelopment with improved code quality, but successful implementation and benefits often

hinge on project type, schedule, software release cycle and corporate culture. It may also be of 

interest that some of the largest software vendors such as Microsoft and IBM do not

extensively utilize RAD in the development of their flagship products and for the most part,

they still primarily rely on traditional waterfall methodologies with some degree of spiraling.

Since rapid application development is an iterative and incremental process, it can lead to a

succession of prototypes that never culminate in a satisfactory production application. Such

failures may be avoided if the application development tools are robust, flexible, and put to

proper use. This is addressed in methods such as the 2080 Development method or other post-

agile variants.

When organizations adopt rapid development methodologies, care must be taken to avoid role

and responsibility confusion and communication breakdown within the development team, and

between the team and the client. In addition, especially in cases where the client is absent or

not able to participate with authority in the development process, the system analyst should be

endowed with this authority on behalf of the client to ensure appropriate prioritization of non-

functional requirements. Furthermore, no increment of the system should be developed

without a thorough and formally documented design phase.