What is TQM?
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1
What is TQM?
Total Quality Management is a
1. methodology and
2. set of techniques
that focuses companies and enterprises in the role of customer
satisfaction on their business success.
2
TQM Principles
• Customer defines quality
• Top management must lead effort
• View quality as a strategic issue
• Quality is everyone’s responsibility
• Focus on continuous quality improvement
• Employees/Management must cooperate to establish quality
• Use Statistical quality control methods
• Training and education are fundamental to all the above
3
Plan-Do-Check-Act Cycle (PDCA)
• The Plan-Do-Check-Act Cycle, also called the – Deming Wheel or the
– Shewart Cycle
is an approach to continuous process improvement.
• It simple means that you plan an improvement, implement it, check that it is having the correct effect and if not you act on it and start again.
• It is particularly useful when an organisation goes through incremental change.
4
Plan-Do-Check-Act (PDCA) Cycle
Check Act
Do Plan
Time
Qua
lity
leve
l
Problem-solving process Deming Wheel
5
Problem-solving process Deming Wheel Plan• Select a process needing improvement• Document process• Analyse data• Set improvement goals• Discuss alternatives• Assess benefits and costs• Develop a plan and improvement measures.
Do • Implement plan• Monitor improvements.
Check• Analyze data to evaluate effectiveness of the plan.
Act• Document and disseminate improved process as a standard
procedure
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Deming’s Principles1. Create constancy of purpose for improvements of product and service2. Everyone adopt the new philosophy3. Cease dependence on mass inspection4. End practice of awarding business on price tag alone5. Improve constantly and forever the system of production and service6. Institute modern methods of training on the job7. Institute modern methods of supervising8. Drive out Fear9. Break down staff barriers (between departments)10. Eliminate numerical goals for the workforce11. Eliminate work standards and numerical quotas12. Remove barriers to pride of workmanship13. Institute a vigorous program of education and improvement14. Create a structure in top management that will push every day on
above 13 points
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The Costs of Poor Quality
1. Prevention Cost
2. Appraisal costs
3. Internal Failure costs
4. External costs
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1. Prevention
Costs in this category include time, effort, and money to:
Redesign the processes to remove causes of defects
Redesign the product to make it simpler, easier to produce
Train employer
Train supplier
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2. Appraisal
Costs incurred to identify and assess quality problems
Inspection
Quality audits
Statistical quality control programs
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3. Internal failure
• Costs from defects discovered before the product or service is sold
• Yield Losses — The material costs associated with scrap losses
• Rework — Time, space, and capacity to store, reroute to correct defects
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4. External failure
Costs when a defect is discovered after the customer has received the product or service
Loss of market share
Warranty service
Litigation
Increased regulation
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What are the “hidden” costs of internal and external failures?
• More labor
• More machine capacity
• Increased work-in-process inventory
• Extended lead times
• Increased chance of defects reaching the
customer
• Increased pressure to produce more to
make up for defects
• Reduced employee morale
• More defects
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Tools of TQM
• Tools for generating ideas– Check sheet
– Scatter diagram
– Cause and effect diagram (Fishbone chart)
• Tools to organize data– Pareto charts
– Process charts (Flow diagrams)
• Tools for identifying problems– Histograms
– Statistical process control chart
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Check Sheet
Month Lost Departure Mechanical Overbooked Other
Luggage Delay Failure
January 1 2 3 3 1
February 3 3 0 1 0
March 2 5 3 2 3
April 5 4 4 0 2
May 4 7 2 3 0
June 3 8 1 1 1
July 6 6 3 0 2
August 7 9 0 3 0
September 4 7 3 0 2
October 3 11 2 3 0
November 2 10 1 0 0
December 4 12 2 0 1
Total 44 84 24 16 12
• A simple checklist that is used to record when something occurs. This is used to identify symptoms and/or potential cases for a problem
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Scatter Diagrams
• depict relationships between paired data
5 10 15 20 25
A
ve. N
o. o
f D
efec
ts 0
1
0
20
3
0
40
|
|
|
|
Linear Relationship
Thousand Lines of Code
16
Cause and Effect Diagram
• Also called the Ishikawa Diagram, or Fishbone Diagram.
• Problem analysis technique which attempts to identify the root causes for a problem thereby allowing a group to work towards solving the "real" problems and not just symptoms.
• A line is drawn across the middle of a sheet of paper to a box on the right hand side. In that box, the problem statement is written.
• Major possible categories of cause are distributed along the line.
• From these, lines are drawn sloping to the left.
• From these lines, contributing issues for each category are placed.
• From these, additional lines can be drawn. the final result is a tree with all potential causes identified.
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Creating Fishbone DiagramsAs a group:1. Establish problem (effect)
-state in clear terms-agreed upon by entire group
2. Problem becomes the “head” of the fish-draw line to head (“backbone”)
3. Decide major causes of the problem- by brainstorming- if the effect or problem is part of a process the major steps in the process can be used
4. Connect major causes to backbone of the fish with slanting arrows5. Brainstorm secondary causes for each of the major causes6. Connect these secondary causes to their respective major causes7. Repeat steps 5 & 6 for sub-causes dividing with increased specificity
- usually four or five levels
8. Analyze and evaluate causes and sub-causes– may require the use of statistical, analytical, and graphical tools
9. Decide and take action
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Example (3 of 4)
• Step 5, 6, & 7:
Poor Service
ResponsivenessAppearance
Attention Reliability
time
courtesy
personnelfacility
equipment
One on one service
dependability
accuracy
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Example (4 of 4)
• Step 8 & 9:– Use tools to analyze and evaluate causes
• Pareto diagrams, charts, and graphs
• Statistical analysis for causes in processes
– Decide and take action• Use fishbone diagram, analysis and evaluations to find causes that
can be fixed
• Take action to eliminate and fix problem causes
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Exercise
• Create a Fishbone (cause and effect, Ishikawa) Diagram for the following:
‘ Management at Ham Industries has noticed that the productivity of its workers is well below the standard. After interviewing its employees, it was noticed that a vast majority felt dissatisfied and unhappy with their work. Your boss has asked you and a group of your peers to find the causes of worker dissatisfaction . Include all possible causes to at least the secondary level.’
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Cause and Effect Diagram
Product Quality
Order Fulfillment
Service
Distribution System
Order Processing System
Customers are dissatisfied
25
Cause-and-Effect Chart for Flight Departure Delay (Fishbone Chart)
Equipment Personnel
Procedure
Material
Other
Aircraft late to gateLate arrival
Gate occupied
Mechanical failuresLate pushback tug
WeatherAir traffic
Late food serviceLate fuel
Late baggage to aircraft
Gate agents cannot process passengers quickly enoughToo few agents
Agents undertrainedAgents undermotivated
Agents arrive at gate late
Late cabin cleaners
Late or unavailable cockpit crewsLate or unavailable cabin crews
Poor announcement of departuresWeight an balance sheet late
Delayed checkin procedureConfused seat selection
Passengers bypass checkin counterChecking oversize baggage
Issuance of boarding pass
Acceptance of late passengersCutoff too close to departure time
Desire to protect late passengersDesire to help company’s income
Poor gate locations
DelayedFlightDeparture
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Pareto Diagrams
• measures the distribution of quality losses
A B C D E
61%
4%5%13%
17%
% E
RR
OR
S
27
Pareto Chart
• A Pareto chart is usually used to identify the principle drivers to a problem.
• A checksheet is used to count how often a particular item occurs usually as a cause to a problem (e.g. missing account number on check leads to miss-filing).
• The items are then charted by the percentage of the occurrences in decreasing order.
• The resulting chart shows which items had the most influence on the problem. This goes along with the 80-20 rule which states that 80% of the problem are attributable to only 20% of the causes.
28
Pareto Analysis of Wine Glass Defects (Total Defects = 75)
54
124 3 2
72%
88%93% 97% 100%
0
10
20
30
40
50
60
70
Scratches Porosity Nicks Contamination Misc.
Causes, by percent total defects
Freq
uenc
y (N
umbe
r)
0%
20%
40%
60%
80%
100%
Cum
ulat
ive
Perc
ent
72% 16% 5% 4% 3%
29
Pareto Chart
PARETO CHART
0
0.1
0.2
0.3
0.4
0.5
TYPE OF PROBLEM
% O
F P
RO
BL
EM
OC
CU
RA
NC
ES
P
ER
YE
AR
31
Produce GoodProvide Service
Stop Process
Yes
NoAssign.
Causes?Take Sample
Inspect Sample
Find Out WhyCreate
Control Chart
Start
Flowchart e.g. Statistical Process Control Steps
32
Passenger Arrives
Ticket No Wait for For Flight Appropriate
Flight
Yes
Check Yes Excess Luggage Carry-on
No
IssueBoarding Pass
PassengerBoards Airplane
33
Histogram
• Bar chart showing the number of occurrences of some event often derived from the results of a check sheet.
• It could be a real world event, like late deliveries by month for a year, or it could be the number of time a proposed solution is suggested.
• It allows a quick prioritisation based on frequency.
34
Histogram
• a graphic summary of dispersion
5 10 15 20 25
Num
ber
0
10
2
0
30
4
0
|
|
|
|
Suggested Mean
Length
35
Histrogram of Lost Luggage
0
0.5
1
1.5
2
2.5
3
3.5
1 2 3 4 5 6 7
Occurrences per Month
Fre
qu
en
cy
36
Brainstorming
• A technique used to generate ideas about a topic.
• Its most common uses are to generate ideas about potential solutions to a problem or the factors influencing something.
• The most common approach is for a group to assign a recorder who records the ideas verbatim.
• The group then takes turns stating their idea,
• This continues until everyone runs out of ideas.
• Brainstorming becomes a problem if a group gets too large (>15) so breaking into manageable groups is advisable