Overview

TQM meaning
Evolution
Concepts
Processes
Tools
 Definition:
Total Quality Management
Total Quality Management (TQM) refers to management
methods used to enhance quality and productivity in
organizations, particularly businesses.
TQM is a comprehensive system approach that works
horizontally across an organization, involving all
departments and employees and extending backward and
forward to include both suppliers and clients/customers.
Total Quality Management (TQ, QM or TQM) and Six
Sigma (6) are sweeping culture change efforts to
position a company for greater customer satisfaction,
profitability and competitiveness.
TQM may be defined as managing the entire organization
so that it excels on all dimensions of products and
services that are important to the customer.
 Quality Descriptions

Design Quality (Features)

vs.

Conformance Quality
 Conformance Quality
Meeting Our Customers Requirements

Doing (the Right) Things Right the First Time;

Freedom from Failure (Defects)

Consistency (Reduction in Variation)

Continuous Improvement

Quality in Everything We Do
 Basics Creating TQM
Process-Oriented Viewing Quality Building an
Focus on Management as a Organizational
Prevention & Never Ending Culture Around
Problem Solving Quest Quality

When managing Because products Create a culture

quality control, and processes are within the
management should continually organization that
focus on the changing, quality supports quality
process as a whole management must improvement
as opposed to each be continued (even initiatives
individual entity if only small
improvements are
being made)

(Ongoing Process
Improvement)
Basics Inverted View of Management
Traditional Direction of TQM
Organizational Support Organizational
Structure View

Employees

Top
Management
Lower Level Management &
Front Line Supervisors
Middle Management

Middle Management
Lower Level Management &
Front Line Supervisors
Top
Management

Employees
 Quality Management History
Frederick Winslow Taylor wrote Principles of Scientific Management in 1911

Walter A. Shewhart used statistics in quality control and inspection, and showed
that productivity improves when variation is reduced (1924); wrote Economic
Control of Manufactured Product in 1931

W. Edwards Deming and Joseph M. Juran, students of Shewhart, went to Japan in

1950; began transformation from shoddy to world class goods

In 1960, Dr. K. Ishikawa formalized quality circles - the use of small groups to
eliminate variation and improve processes

In the late 70s and early 80s:

- Deming returned from Japan to write Out of the Crisis,
and began his famous 4-day seminars in the United States
- Phil Crosby wrote Quality is Free
- NBC ran If Japan can do it, why cant we?
- Motorola began 6 Sigma
Superior Quality Workers?
 Quality Management History
On the assembly line at the Ford Motor Company in 1923, most of
the workers producing Model Ts were immigrants and could not
speak English. Many were also illiterate. Workers learned their
trade by modeling the actions of other workers. They were unable
to plan, problem-solve, and make decisions. As a result, the Taylor
scientific school of management flourished, and MBAs and
industrial engineers were invented to do this work. Today, however,
the workforce is educated. Workers know what is needed to
improve their jobs, and companies that do not tap into this
significant source of knowledge will truly be at a competitive
disadvantage.
Joseph M. Juran (1991)
 Quality Management History

Knowledge-worker productivity is the biggest of the

21st-century management challenges. In the developed
countries, it is their first survival requirement. In no
other way can the developed countries hope to maintain
themselves, let alone to maintain their leadership and
their standards of living.
Peter F. Drucker (1999)
 Quality Management History
Demings 14 Points
1. Create constancy of purpose for improvement
2. Adopt a new philosophy
3. Cease dependence on mass inspection
4. Do not award business on price alone
5. Work continually on the system of production and service
6. Institute Modern methods of training
7. Institute modern methods of supervision of workers
8. Drive out fear
9. Break down barriers between departments
10. Eliminate slogans, exhortations, and targets for the work force
11. Eliminate numerical quotas
12. Remove barriers preventing pride of workmanship
13. Institute a vigorous program of education and retraining
14. Take action to accomplish the transformation
A Quality Management System is

A belief in the employees ability to solve

problems
A belief that people doing the work are best
able to improve it
A belief that everyone is responsible for
quality
 New and Old Cultures
Quality Element Previous State TQM
Definition Product oriented Customer oriented
Priorities Second to service First among equals
and cost of service and cost
Decisions Short term Long-term
Emphasis Detection Prevention
Errors Operations System
Responsibility Quality Control Everyone
Problem Solving Managers Teams
Procurement Price Life cycle, costs,
partnership
Managers Role Plan, assign, control Delegate, coach,
and enforce facilitate and
mentor
 The Dimensions of Quality
Dimensions Meaning and Example
Performance Primary product characteristics, such
as the brightness of the picture
Features Secondary characteristics, added
features, such as remote control
Conformance Meeting specifications or industry
standards, workmanship
Reliability Consistency of performance over
time, average time for the unit to fail
Durability Useful life, includes repair
Service Resolutions of problems and
complaints, ease of repairs
Response Human to human interface, such
as the courtesy of the dealer
Aesthetics Sensory characteristics, such as
exterior finish
Reputations Past performance and other
intangibles
 Customer Perception Of Quality
The End user perceptions of important
factors that influenced purchases showed the
following:
Performance
Features
Service
Warranty
Price
Reputation
 Feedback
Feedback enables the organization to:
Discover customer dissatisfaction
Discover relative priorities of quality
Compare performance with the competition
Identify customers needs.
Determine opportunities for improvement.
 Teams
Employees involvement is optimized by the use of teams.
Team is a group of people working together to achieve
common objectives or goals.
Teamwork is the cumulative actions of the team during
which each member of the team subordinates his
individual interests and opinions to fulfil the objectives or
goals of the groups.
The objectives or a goal is a need to accomplish
something. Examples: to solve a problem, to improve a
process, to design a system, to please a customer.
 Why Teams Work?
Many heads are more knowledgeable than one.
Each member of the team has special abilities that can
be used to solve problems.
The interaction within the team produces results that
exceed the contributions of each member.
Team members develop a rapport with each other that
allows them to do a better job.
Teams provide the vehicle for improved communication,
thereby increasing the likelihood for a successful
solutions.
Types of Teams

Process improvement team

Cross functional team
Natural work teams
Self directed / self managed work teams
Elements of Success
Management Support/Involvement
Mission Statement
Proper Planning
Customer and Bottom Line Focus
Measurement
Empowerment/Shared Leadership
Teamwork/Effective Meetings
Continuous Process Improvement
Dedicated Resources/Training
 Baldrige Award Criteria Framework

Organizational Profile:
Environment, Relationships, and Challenges

2 5
Strategic Human Resource
Planning Development
1 & Management 7
Leadership Business
Results
3 6
Customer and Process
Market Focus Management

Information, Analysis, and Knowledge Management

 Malcolm Baldrige National
Quality Award (2004)

1.0 Leadership (120 points)

2.0 Strategic Planning (85 points)
3.0 Customer and Market Focus (85 points)
4.0 Information and Analysis (90 points)
5.0 Human Resource Focus (85 Points)
6.0 Process Management (85 points)
7.0 Business Results (450 points)
 Categories for the Baldrige
Award
Manufacturing companies or subsidiaries that:
produce and sell manufactured products or
manufacturing processes or
produce agricultural, mining, or construction products.

Service companies or subsidiaries that sell

service
Small businesses
Education Institutions
Health Care Organizations
Non-Profit (new)
 Characteristics of a Baldrige
Award Winner
The companies formulated a vision of quality
and how they would achieve it.
Senior management was actively involved.
Companies carefully planned and organized
their quality effort to insure effective initiation.
They vigorously controlled the overall process.
Studies have shown MBA Winners success.
 ISO 9000
Series of standards agreed upon by the
International Organization for Standardization(ISO)
Adopted in 1987
More than 100 countries
A prerequisite for global competition?
ISO 9000 directs you to:
document what you do and then do as you
documented.
 ISO 9000 Series
9001
Model for Quality Assurance in Design,
Production Installation, and Servicing.
9002
Model for Quality Assurance in Production and
Installation
9003
Model for Quality Assurance in Final Inspection
Test
 Three Forms of Certification
1. First party: A firm audits itself against ISO
9000 standards.

2. Second party: A customer audits its

supplier.

3. Third party: A "qualified" national or

international standards or certifying agency
serves as auditor.
 ISO 9000 versus
the Baldrige Award
Which should we pursue first?

What are the differences between the

two?

Do you have to be ISO 9000 certified

before going for the Baldrige Award?
ISO 9000 versus
the Baldrige Award
Baldrige

QS 9000

ISO 9000

Evans and Lindsay The Management and Control of Quality, Southwestern Books, p536.
Costs of Quality: Categories
Appraisal costs

Prevention costs

Internal failure costs

External failure costs

 The 1-10-100 Rule

10

100

Defects caught at their source cost the organization $1.

Defects caught outside of the source department but within the
organization cost $10.
Defects that reach the external customer cost $100!
 Cost of Poor Quality Category
Examples
Failure Costs Internal Prevention Costs
Re-shipping Quality Administration
Unnecessary Travel Time Quality Planning
Re-picking/Picking Quality Systems Design
Unpacking/Storing Returns Calibration and Maintenance
Re-order Time Production/Inspection Equipment
Crediting Time Vendor Assessment
Quality Training
Failure Costs External Appraisal Costs
Loss of Sales Incoming Test and Inspection
Complaints In-Process Inspection
Returns Final Inspection
Warranty Claims Sampling Procedures
Quality Audits
 COPQ Projections

$ Saved
External Failure Costs
$
Internal Failure Costs Total Cost Total Cost
Using a COPQ Without Using
System A COPQ
System
Appraisal Costs

Prevention Costs

Months
 Process Flow Chart
Buffer: Material No,
Inspect Continue
Received from
Material for Defects
Supplier
Defects found?

Yes

Can
Canbe beused
usedto
tofind
find
quality
qualityproblems.
problems. Return to
Supplier for
Credit
 Input-Output Analysis

Sub- Measure
Suppliers Inputs Outputs Customers s
Processes

S I P O C
From Flowchart
 Example SIPOC - Specifying
Equipment Selection and Installation
Procedures at Coca-Cola USA
Suppliers Inputs Process Outputs Customers Measures
Customers Technical Developing Equipment Burger King Number of
Information Installation Selection Guide Entities Using
Coca-Cola Cost McDonalds Guidelines
Fountain Technical Reduction Equipment
Questions Programs Sales Manuals Prestige Installation
Coca-Cola Audit Ratings
Customer Developing Technology
Input Cost/ Benefit Fountain Survey of
Equipment
Selection Matrix Equipment Users
Policies and Suppliers Effectively
Installation Using
Procedures Guidelines Selection
Designing Installation Time Guidelines
Installation Standards
Policies and
Procedures Installation
Rating System
Installation
Design
Guidelines
 Pareto Analysis

80% of the Frequency

problems
may be
attributed to
20% of the
causes.
Design Assy. Purch. Other
Instruct. Training
 Run Chart
0.58
0.56
Diameter

0.54
0.52
0.5
0.48
0.46
0.44
1 2 3 4 5 6 7 8 9 10 11 12
Time (Hours)
 Histogram
Frequency

Data Ranges
 Scatter Diagram

12
10
Defects

8
6
4
2
0
0 10 20 30
Hours of Training
Checksheet (data collection)
Monday
Billing Errors

Wrong Account

Wrong Amount

A/R Errors

Wrong Account

Wrong Amount
 Cause & Effect Diagram

Machine Man

Environment Effect

Method Material
Fishbone Analysis:
Existing Hiring Process Problems
 Control Charts
1020
UCL
1010
1000
990
980
LCL

970
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
 Customer Survey
Wors Best
t
Are We On Time? 5 4 3 2 1

Are We Courteous? 5 4 3 2 1

Does The Product 5 4 3 2 1

Work?
Is It Cost Effective? 5 4 3 2 1

Overall Rating? 5 4 3 2 1

General
Comments:
 Example Customer Survey
Results - Quantas Airways
Survey of Frequent Flier Needs Order of Priority:

1. No lost baggage 12. Assistance with connections

2. No damaged baggage 13. Being kept informed of
delays
3. Clean toilets 14. Transport to cities
4. Comfortable seats 15. Accurate arrival info
5. Prompt baggage delivery 16. Well-organized boarding
6. Ample leg room 17. Quick/friendly airport check-
in
7. Good quality meals 18. Self-service baggage trolleys
8. Prompt reservation service 19. On-time arrival
9. Friendly/efficient cabin crew 20. Provision of pillows/rugs
10. Clean and tidy cabin 21. Assistance with customs
11. Comfortable cabin temp 22. On-time departures
Continuous Improvement
Process
Cavite Remanufacturing
And
Distribution Center
 Remanufacturing Procedures
Disassembly and
Cleaning Reassembly

Remove Remove Inspect Soda Manifold Install Drain Pan Riser Install and Connect Valve
Cup Rest Product Hoses, Onto Ice Chest Assembly Wiring Assembly
Splash Plate Tower and
Drain Pan Disassemble
Valves Prepare Rear Tower Panel
Mounting Blocks on Woodgrain Units for
Flush Cooling Install Valve Mounting
Sabre Vinyl Install Tower Structure
Circuits Blocks
Repair Dents Onto Drain Pan Riser
Inspect Fittings
Sand
Clean Clean Surface
Ice Chest Sanitize Cooling Circuits
Parts Install Valves
Tower Assembly Install New Beverage
Tubing and Rubatex
Flush Out
Apply Sabre Vinyl Install Sabre Valve
Covers, Nozzles and
Decals

Polish Stainless Steel Install Clamps at

Remanufacturing
Load Test Ice Bin by
Drain
Evaluate Cold Plate
Hold for Write-off if Bin
Leaks or Circuits are
Unusable
Surfaces That Will Be Each Tubing End Install Lid
Visible Install Tubing to
Mounting Block
Fittings
Put O rings on Install Tube Protector on
Impact and Evaluate Leak Test Drain Pan
Fittings Inlets
Fittings
Inspect Legs
Install Drain Pan, Drain
Clean Electrical Junction Fittings and Hose
Box Install Splash Plate
Drill and Tap New Check for Frayed
Mounting Holes for Wires
Broken Hardware Tape Connections
Send to QA
Test Junction Box Install Cup Rest
Requisition Needed Parts Continuity
Correct Secondary
Voltage
Install Valve Mounting
Plate
 Phase 1: Internal Kickbacks

To Be
Remanufac- Tear Down Remanu- Final
Reassembly
tured And Wash facture Clean-up
Equipment

Unit Not
OK
QA
 Five Most Common Reasons
For Returns From QA

January-May (61 units)

 Reasons for Returns from QA
- Weighted Average

Weighted Avg. = % Occurring X Defect Cost (0-10, Based on Time to Repair)

 Why Dirt?
Methods Materials Environment
Need to Rinse Cleaning Dust/Humidity
Parts off after Compounds
Sandblasting watered down Poor Lighting

Need Better Need Larger Space Limitations

Procedure for Wire Brushes
Measurement
Determining What People
to Remanufacture QA Manager Fixes
Based on its Need More Some Things
Condition Training Without Informing
More Attention the Technicians
Machines
to Detail Do it
Best tools for $$? Right the First
Time
 Why Leaks?
Environment Materials Machines
High Bad Tubing Bad Dispenser
Temperatures O Rings Out Design
in Warehouse of Spec Need Rims
Poor O Rings That Make it
Lighting Too Old (Dry) Easier to
Install Tubing
Methods People Measurement
Softening Use Wrong No Testing
Tubing with Clamps for Leaks
Water thats Dont Prior to QA
Too Hot Crimp Need to ID
Properly
Need to Check by
Units for All
Forget to Mfr./Model
Possible Ways Connect Which Units
They Could Leak the
 PDCA Cycle (Deming Wheel)
1. Plan a change
4. Institutionalize
aimed at
the change or
improvement.
abandon or
do it again.
4. Act 1. Plan

3. Check 2. Do

3. Study the results; 2. Execute the

did it work? change.