Total Quality Management-Principles Total Quality Management

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The way of managing organization to achieve excellence Total everything Quality degree of excellence Management art, act or way of organizing, controlling, planning, directing to achieve certain goals

TQM Six Basic Concepts

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Leadership Customer Satisfaction Employee nvolvement Continuous !rocess mprovement Supplier !artnership !erformance Measures

"#ll these present an excellent way to run a $usiness%

Criteria 1 Leadership

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Top management must realize importance of &uality Quality is responsi$ility of every$ody, $ut ultimate responsi$ility is CE' nvolvement and commitment to CQ Quality excellence $ecomes part of $usiness strategy Lead in the implementation process

Characteristics of Successful Leaders (ive attention to external and internal customers Empower, not control su$ordinates) !rovide resources, training, and wor* environment to help them do their +o$s Emphasize improvement rather than maintenance Emphasize prevention Encourage colla$oration rather than competition Train and coach, not direct and supervise Learn from pro$lems opportunity for improvement Continually try to improve communications

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Continually demonstrate commitment to &uality Choose suppliers on the $asis of &uality, not price Esta$lish organisational systems that supports &uality efforts

Implementation Process

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Must $egin from top management, most important CE' commitment Cannot $e delegated "indifference, lac* of involvement cited as principle reason for failure% Top,senior management must $e educated on TQM philosophy and concepts, also visit successful companies, read $oo*s, articles, attend seminars Timing of implementation is the org ready, re-organization, change in senior personnel, current crisis then need to postpone to favoura$le time .eed a roadmap,framewor* for implementation /ormation of Quality Council policies, strategies, programmes

Implementation Process Quality council +o$

0evelop core values, vision statement, mission statement, and &uality policy statement

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0evelop strategic long-term plan with goals and annual &uality improvement program with o$+ectives Create total education and training plan 0etermine and continually monitor cost of poor &uality 0etermine performance measures for the organization, approve them for functional areas, and monitor them) Continually determine pro+ects that improve processes, particularly those affect external and internal customer satisfaction Esta$lish multifunctional pro+ect and departmental or wor* group teams and monitor progress Esta$lish or revise the recognition and reward system to account new way of doing $usiness) Must $egin from top management, most important CE' commitment

Implementation Process Core alues - foster TQM $ehaviour and define the culture - need to develop own values Examples from Malcolm 1aldrige .ational Quality #ward

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Customer-driven excellence 2isionary leadership 'rganizational and personal learning

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2aluing employees and partners #gility Management for innovation Management $y fact Systems perspective Social responsi$ility /ocus results and creating value

Criteria ! Customer Satisfaction

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Customer is always right in 3apan customer is 4ing Customer expectations constantly changing 56 years ago accepta$le, now not any more7 0elighting customers "4ano Model% Satisfaction is a function of total experience with organization Must give customers a &uality product or service, reasona$le price, ontime delivery, and outstanding service .eed to continually examine the &uality systems and practices to $e responsive to ever changing needs, re&uirements and expectations 8etain and 9in new customers

Issues for customer satisfaction Chec*list for $oth internal and external customers

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9ho are my customers: 9hat do they need: 9hat are their measures and expectations: 0oes my product,service exceed their expectations: ;ow do satisfy their needs: 9hat corrective action is necessary:

Customer "eed#ac$ To focus on customer, an effective feed$ac* program is necessary, o$+ectives of program are to<

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0iscover customer dissatisfaction 0iscover priorities of &uality, price, delivery Compare performance with competitors dentify customers needs 0etermine opportunities for improvement

Customer "eed#ac$ Tools%Method

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9arranty cards,Questionnaire Telephone,Mail Surveys /ocus (roups Customer Complaints Customer Satisfaction ndex

(ood experience are told to = people while $ad experience are repeated to 5> people Criteria & 'mployee In ol ement

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!eople most important resource,asset Quality comes from people 0eming 5>? operator errors, @>? management system !ro+ect teams Quality Control Circles "QCC%, Q T Education and training life long, continuous $oth *nowledge and s*ills Suggestion schemesA 4aizen, >S teams

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Motivational programmes, incentive schemes Conducive wor* culture, right attitude, commitment

Criteria B Continuous !rocess mprovement 2iew all wor* as process production and $usiness !rocess purchasing, design, invoicing, etc) nputs !8'CESS outputs !rocess improvement increased customer satisfaction mprovement > waysA 8educe resources, 8educe errors, Meet expectations of downstream customers, Ma*e process safer, ma*e process more satisfying to the person doing

Continuous Impro ement nputs processing outputs

Pro#lem Sol ing Method

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dentify the opportunity "for improvement% #nalyze the current process 0evelop the optimal solution"s%

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mplement changes Study the results Standardize the solution !lan for the future

Identify the opportunity (for impro ement) !hase 5 dentify pro$lems Cse !areto #nalysis external D internal failures, returns !hase E /orm a team "same function of multifunctional% !hase F 0efine scope of pro$lem "!aint process data collected for a wee* showed high F6? runs defect%

!rocess /low Chart n* filling process *naly+e the current process

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Cnderstand the current process, how it is performed 0evelop process flow diagram 0efine target performance Collect data, information 0etermine causes not solution "use cause and effect diagram%

8oot cause if possi$le

*ffinity diagram 'xample ,e elop the optimal solution(s)

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To esta$lish solutions 8ecommended optimal solution to improve process Create new process, com$ine different process, modify existing process Creativity "ru$$er pad adhesive, door trim% 1rainstorming, 0elphi, .ominal (roup Techni&ue Evaluate and testing of ideas,possi$le solutions

Implement changes To prepare implementation plan, o$tain approval, conduct process improvements, study results 9hy is it done: ;ow, 9hen, 9ho, 9hen it will $e done:

Criteria Supplier Partnership

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B6? product cost comes from purchased materials, therefore Supplier Quality Management important Su$stantial portion &uality pro$lems from suppliers .eed partnership to achieve &uality improvement long-term purchase contract Supplier Management activities

Criteria Supplier Partnership 0efine product,program re&uirementsA

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Evaluate potential and select the $est suppliers Conduct +oint &uality planning and execution 8e&uire statistical evidence of &uality Certify suppliers, e)g) S' G66, /ord Q5 0evelop and apply Supplier Quality 8atings 0efects,!ercent non-conforming !rice and Quality costs

0elivery and Service

Criteria . Performance Measures

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Managing $y fact rather than gut feelings Effective management re&uires measuring Cse a $aseline, to identify potential pro+ects, to asses results from improvement E)g) !roduction measures defects per million, inventory turns, ontime delivery Service $illing errors, sales, activity times Customer Satisfaction Methods for measuring Cost of poor &uality

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nternal failure External failure !revention costs #ppraisal costs

Performance Measures

#ward Models "M1.Q#, E/QM, !MQ#%

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1enchmar*ing grade to competitors, or $est practice Statistical measures control charts, Cp* Certifications

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S' G666<E666 Quality Mgt System S' 5B666 Environmental Mgt System, Cnderwriters La$ "CL%, (M! QS G666, S',TS 5=GBG

,emings 1/ Points for Management

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Create constancy of purpose towards improvement of product and service with aim to $e competitive, stay in $usiness and provide +o$s) #dopt a new philosophy new economic age, learn responsi$ilities and ta*e on leadership for future change) Cease dependence on inspection to achieve &uality) Eliminate the need for inspection on a mass $asis $y $uilding &uality into product in the first palace)

,emings 1/ Points for Management

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End the practice of awarding $usiness on the $asis of price, instead, minimize total costs) mprove constantly and forever the system of production and service, to improve &uality and productivity, thus decreasing costs)

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nstitute training on the +o$ nstitute leadership, supervision to help do a $etter +o$) 0rive out fear, everyone can wor* effectively for company)

,emings 1/ Points for Management 1rea*down $arriers $etween departments) 9or* as teams to foresee production pro$lems) Eliminate slogans, exhortations, and targets for wor*force) Eliminate numerical &uotas on the wor*force) 8emove $arriers that ro$ people pride of wor*manship) nstitute a vigorous program of education and self-improvement) !ut every$ody to wor* to accomplish the transformation)