Shai's Quality Management 2

Total Quality Management (TQM) Definition Management approach of an organization centered on quality based on the participation of all members and aiming at long term success through customer satisfaction and benefits to all members of organization and society (ISO)

Total Quality Management • Total – Made up of Whole • Quality – Degree of excellence a product or service provides • Management – Act, art or manner of handling, controlling, directing etc

Why Quality needs to be Managed? • Question of survival in an intense competitive environment • Increasing Customer Consciousness • Need for earning profit instead of making profit

Ingredients of TQM • Leadership – Involvement by top management • Participatory – Every process, job, person • System approach – Integration of various aspects of organization • Continuous improvement – Quest for progress and improvement • Total Customer satisfaction • Key objective of improving quality

Quality management – leading thinkers • Philip Crosby – Quality without tears • W Edward Deming – Statistical Process Control • Joseph M Juran – Planning, control and Improvement • Armand V Feigenbaum – Total quality Control

Japanese Quality Gurus • Kaouru Ishikawa – Quality Circles and Cause and effect analysis • Shigeo Shingo – Zero Quality control, Mistake proofing • Genichi Taguchi – Loss function

TQM Cornerstones • • • • •

TQM begin and and end with customers Decisions based on facts and data Improvement a thing of daily life Partnership with customers and suppliers Empowerment of Workers

Key success factors of TQM ¾ Clear aims and objectives ¾ Commitment of Top management ¾ Devotion of time for TQM ¾ Resources for TQM ¾ Personal qualities of vision, courage, honesty and determination ¾ Careful analysis and planning ¾ Steering group to manage change ¾ Adoption of ethical approach

The PDCA Cycle • Developed by Schewart and modified by Deming, a continuous improvement methodology ¾Plan – Establish plan for achieving goal ¾Do – Enacting the plan or doing ¾Check – Measuring and analyzing results ¾Act- Implement corrective actions

Plan-Do-Check-Act (PDCA) Cycle

5-10

Act

Plan

Check

Do

Strategic Considerations • Business survival possible only by quality improvement • Strategy changed to customer focus from return on investments • Liberalization, globalization & competition paved the way • Promotion by government and industry associations

Strategic Management – Decision Making Process 3 ORGANISATIONAL ANALYSIS (STRENGTHS & WEAKNESSES)

1 DETERMINATION OF MISSION OR PURPOSE

2 ENVIRONMENTAL ASSESSMENT (THREATS & OPPORTUNITIES)

REDETERMINE AS NEEDED

REDEFINE & REVISE AS NEEDED

4 SPECIFICATION OF OBJECTIVES

REFORMULATE AS NEEDED

5 FORMULATION OF STRATEGY OR STRATEGIC PLAN (TO ACHIEVE OBJECTIVES AND GOALS)

REWORK AS NEEDED

6 IMPLEMENTATION OR EXECUTION OF STRATEGIC PLAN

RECYCLE TO PHASES 1,4,5 & 6 AS NEEDED

7 MONITORING, REVIEWING & EVALUATION

FIG.2

TQM and Business strategy • Best competitive strategy – customer value strategy, concentrate on customers • Improved quality leads to reduced cost due to less rework and rejections • Cost leadership associated with high quality • Use product differentiation based on customers requirements • Customer value – Quality is not absence of defects but it means delivering value to customers as per their expectations

Strategic Quality Planning • Quality Mission – purpose of existence • Quality strategy and policy – Leadership, people management and process • Principles and values – creation of environment • Organization and process – size, coordination, teams • Education plan – Equip people • Tactical plans • Resources – money, time

Approaches to strategic quality management • A focus on customer needs – by SWOT analysis • Leadership by upper management to develop quality goals and strategies • Translation of strategies into annual business plans • Implementation of actions by line departments instead of relying on a quality department

Quality Policies • A policy is a broad guide to action. It is statement of principles. • A policy differs from procedure, which details how a given activity is to be accomplished. • The subject matter of quality policies are tailor-made for each company

Vision statement as a collection of quality policies • • • • • • • • •

Definition of quality Quality linked to business goals Scope of quality effort Goals – long range and short range Focus on customers – internal and external Involvement of all employees Impact on job security Implementation by the line organization Leadership by upper management

Quality Goals • A goal or objective is a statement of the desired result to be achieved within a specified time – an aimed at target. • These goals then form the basis of detailed planning activities • Tactical goals are short range (1 year) and strategic goals are long range (5 years) • Goals may be created for breakthrough or control

Formulation of quality goals Inputs • Pareto analysis – field failures, complaints, returns, scrap, rework, sorting • Proposals from key insiders – managers , supervisors, union shop stewards • Proposals from suggestion schemes • Filed study of users needs, costs • Data on performance of product vs. competitors • Comments of key people outside company – customers., vendors, journalists, critics • Findings and comments of government regulators, independent labs, reformers.

Competitive Benchmarking Benchmarks The specification Customer desires Competition Best in our Industry Best in any industry

Deployment of goals • Division and subdivision of the goals until specific deeds to be done are identified • Allocation of responsibilities for doing these deeds • Provision of the needed resources

Implementing Total Quality – 5 Phases 1. Decide on different approaches – SPC, Quality circles, Benchmarking 2. Prepare by giving training to upper and middle managers 3. Start - includes more training, pilot quality projects, revision and expansion of systems 4. Expand the new approach to other units by setting teams, measurement systems 5. Integrate - quality becomes a way of life, strategic goals are finalized and deployed at various levels

Strategic Quality Planning ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾

Listen to customers needs Plan how to meet customer needs Being aware of values and aligning of organization Being aware of forces that influence the organization Develop specific quality objectives Consider various scenarios Plan to close gaps Take actions to achieve objectives Reevaluate and renew efforts

Organization for TQM • A structure is to be created for TQM promotion which consists of problem solving teams and control points • In the basic structure first the CEO learns it and CEO needs a coordinator reporting with a steering committee

Organization for TQM • Apex TQM steering committee – with a full time coordinator • Divisional TQM steering committee with full time coordinator • Departmental TQM steering committee with part-time TQM champions

Role of TQM Coordinators • TQM coordinator does designing, planning, educating, facilitating, reviewing, building conviction and acting on secretariat • Steering committee provide direction, goal, resources, review and carryout events • TQM teams involve all . Examples are Quality circles and TPM circles

TQM Team Roles

• • • •

Sponsor – Influencing and authority Team Leader – manages Team Facilitator – Catalyst in a team Team Member – Work on Problems

Training for TQM • • • • •

Class room education – external and internal Self development – Distance education Mutual development – Team problem solving On the job training – working on assignments Mentoring – working under an experienced and trusted advisor

Work practices for promoting learning • • • • • • • •

Establishing standards – locking learning in Preventing recurrence – learning from past Making improvements – problem solving Averting problem recurrence – learning through prevention Benchmarking – identification of best practices Participating in campaigns – 5S campaign Working in teams – mutual development Experimenting – learning by creation