Total Quality Management TQM

TotaI QuaIity Management - TQM
Standards in Action
www.bsieducation.org/standardsinaction
Total Quality Management - TQM
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Standards in Action
$ession Plan
ntroduction to concepts of TQM
$tandards and TQM
TQM Reasons for failure
Measurement of Quality
Standards in Action
Total Quality Management
TQM is a philosophy which applies equally to all parts of the
organization.
TQM can be viewed as an extension of the traditional approach
to quality.
TQM places the customer at the forefront of quality decision
making.
Greater emphasis on the roles and responsibilities of every
member of staff within an organization to influence quality.
All staff are empowered.
Standards in Action
TofoI QuoIify Monogemenf
oing things right...
..FR$T time.
nternetix (2005)
Standards in Action
ritish $tandards on TQM
BS 7850-1:1992
- Total quality management.
Guide to management principles.
BS 7850-2:1994,
ISO 9004-4:1993
- Total quality management. Guidelines for quality
improvement.
Standards in Action
lements of TQM
Leadership
Top management vision, planning and support.
mployee involvement
All employees assume responsibility for the quality of their work.
Product/Process xcellence
nvolves the process for continuous improvement.
Standards in Action
lements of TQM
Continuous mprovement
A concept that recognizes that quality improvement is a journey
with no end and that there is a need for continually looking for new
approaches for improving quality.
Customer Focus on "Fitness for Use
esign quality
$pecific characteristics of a product that determine its value in the
marketplace.
Conformance quality
The degree to which a product meets its design specifications.
Standards in Action
A fundamental concept of TQM
from $ 7850 - a 'Process'
"A set of inter-related resources and activities which
transform inputs into outputs." ($ 8402).
"Any activity that accepts inputs, adds values to these
inputs for customers, and produces outputs for these
customers. The customers may be either internal or
external to the organization." (BS 7850)
Standards in Action
Controls
Process
"tpts !npts
Resorces
The SimpIe Process
&ource: B& 78S0: 1332, Total Quality Nanagement")
Standards in Action
Changing RoIe of the Process Owner
s cstomer
Process owner
s cstomer s spplier
Process owner
s spplier
Process 1
Process 1
!npt "tpt
"tpt to
cstomer
!npt from
spplier
(Sorce: BS 78S0: 1332, Total Qality Nanagement")
Standards in Action
TQM & organizational Cultural Change
TraditionaI Approach
Lack of communication
ControI of staff
Inspection & fire fighting
InternaI focus on ruIe
StabiIity seeking
AdversariaI reIations
AIIocating bIame
TQM
Open communications
Empowerment
Prevention
ExternaI focus on customer
Continuous improvement
Co-operative reIations
SoIving probIems at their roots
Standards in Action
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Gap
Perceived quaIity
is poor
Perceived quaIity is
good
Expectations >
perceptions
Expectations =
perceptions
Expectations <
perceptions
Perceived quaIity is governed by the gap between customers'
expectations and their perceptions of the product or service
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Gap
Sorce: Slack et al. 2004
Standards in Action
Additional views of Quality in $ervices
Technical Quality versus Functional Quality
Technical quality the core element of the good or service.
Functional quality customer perception of how the good functions or
the service is delivered.
xpectations and Perceptions
Customers' prior expectations (generalized and specific service
experiences) and their perception of service performance affect their
satisfaction with a service.
$atisfaction = (Perception of Performance) (xpectation)
Standards in Action
Customer's
expectations
concerning a
product or service
Customer's
perceptions
concerning the
product or service
Previous
Experience
Word of mouth
communications
Image of product
or service
Customer's own
specification of
quaIity
Management's
concept of the
product or service
organization's
specification of
quaIity
The actuaI product
or service
,5
,5
,5
,5
A "Gap" modeI
of QuaIity
Sorce: Parasraman, Zeithman and Berry. 138S
Standards in Action
Continuous mprovement
Philosophy that seeks to make never-ending
improvements to the process of converting inputs into
outputs.
Kaizen: Japanese
word for continuous
improvement.
Standards in Action
mplementing TQM
$uccessful mplementation of TQM
Requires total integration of TQM into day-to-day operations.
Causes of TQM mplementation Failures
Lack of focus on strategic planning and core competencies.
bsolete, outdated organizational cultures.
Standards in Action
bstacles to mplementing TQM
Lack of a company-wide definition of quality.
Lack of a formalized strategic plan for change.
Lack of a customer focus.
Poor inter-organizational communication.
Lack of real employee empowerment.
Lack of employee trust in senior management.
View of the quality program as a quick fix.
rive for short-term financial results.
Politics and turf issues.
Standards in Action
$ome criticisms of TQM
1. lind pursuit of TQM programs
2. Programs may not be linked to strategies
3. Quality-related decisions may not be tied to market
performance
4. Failure to carefully plan a program
Standards in Action
PCA Cycle repeated to create continuous
improvement
Time
P
e
r
f
o
r
m
a
n
c
e
"Continuous"
improvement
Plan
o
Check
Act
Standards in Action
Recognizing and rewarding Quality
Promotion of high quality goods and services
Malcolm aldrige National Quality Award (MNQA) (United
$tates)
eming Prize (Japan)
uropean Quality Award (uropean Union)
$000 certification
Standards in Action
The integrated framework of the aldrige Award criteria
Source: 2004 Criteria for Performance Excellence, U.$. ept. of Commerce, aldrige National Quality Program, National nstitute of $tandards and Technology, Gaithersburg, M 208. (www.quality.nist.gov)
Standards in Action
Product
Continual improvement of the quality management system Continual improvement of the quality management system
Customers
(and other
interested
parties)
Requirements
Management
responsibility
Resource
management
Measurement,
analysis and
improvement
Product
realisation
utput
$atisfaction
nput
Sorce: BS EN !S" 3001:2000
Key:
Value adding activity
information flow
Customers
(and other
interested
parties)
Standards in Action
verview of the FQM xcellence Model
Standards in Action
Quality Award common elements
All take holistic approach
Customers/people
Measurable characteristics
Visible
asis taken from TQM
Standards in Action
$ummary
TQM a way of working
nvolves everyone
High prominence on 'customer'
Awards based upon TQM

Total Quality Management TQM

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