Total Quality Management TQM Dr.-Ing. George Power. The Evolution of Quality Management

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1 Total Management TQM Dr.-Ing. George Power The Evolution of Management

2 The Evolution of Management Assurance Total Control Companywide Control Mass Inspection Control (Acceptance Sampling) 2

3 Evolution of Management Mass Inspection Inspecting Salvaging Sorting Grading Rectifying Rejecting Control manuals Product testing using SQC Basic quality planning Assurance Emphasis on prevention Proactive approach using SPC Advance quality planning Total Control All aspects of quality of inputs Testing equipment Control on processes Assurance Control (Acceptance Mass Sampling) Inspection Total Control Company - wide Control 3

4 Evolution of Management (cont d) Company-wide Control Measured in all functions connected with production: R&D Design Engineering Purchasing Operations, etc. Total Management Measured in all aspects of business Top management commitment Continuous improvement Involvement & participation of employees Assurance Total Control Companywide Control Mass Inspection Control (Acceptance Sampling) 4

5 Scope of different quality concepts Total Management Assurance Control Inspection 5

6 Improvement in product quality Evolution of quality concepts Integrated design and manufacturing through design Focus on profit and production quotas Inspection Statistical sampling Statistical Process Control Improved designs Organizational quality focus Customer-driven quality focus Old concept of quality: New concept of quality: Inspect for quality after production Build quality into the process. Identify and correct causes of quality problems 6

7 Gurus and their contribution Name Main Contribution Dr. Walter A. Shewhart Contributed to understanding of process variability Developed concept of statistical control charts Dr. W. Edwards Deming Stressed management s responsibility for quality Developed 14 points to guide companies in quality improvement Dr. Joseph M. Juran Defined quality as fitness for use Developed concept of cost of quality Dr. Armand V. Feigenbaum Introduced concept of total quality control Dr. Philip B. Crosby Coined phrase quality is free Introduced concept of zero defects Dr. Kaoru Ishikawa Developed cause-and-effect diagrams Identified concept of internal customer Dr. Genichi Taguchi Focused on product design quality Developed loss function 7

8 Walter A. Shewhart ( ) Often referred to as the grandfather of quality control Worked as a statistician at Bell Labs during the 1920s and 1930s Studied randomness and recognized that variability existed in all manufacturing processes Developed quality control charts that are used to identify if the variability in the process is random or due to an assignable cause (operator, equipment, tools, etc.) Also stressed that eliminating variability improves quality His work created the foundation of today s Statistical Process Control. 8

9 W. Edwards Deming ( ) Known as the father of quality control Statistics professor at New York University in the 1940s After Word War II he assisted many Japanese companies in improving quality In recognition of his work, the Japanese established in 1951 the Deming Prize Only 30 years later American companies began adopting Deming s philosophy He outlined his notions of quality in his famous 14 points Deming stressed that quality problems are caused mainly by processes and systems, including poor management. 9

10 Deming s System of Profound Knowledge Appreciation of a system: Understanding the overall processes involving suppliers, producers, and customers (or recipients) of goods and services; Knowledge of variation: The range and causes of variation in quality, and use of statistical sampling in measurements; Theory of knowledge: The concepts explaining knowledge and the limits of what can be known; Knowledge of psychology: Concepts of human nature. 10

11 Deming s key principles ( 14 Points ) 1. Create constancy of purpose toward improvement of product and service, with the aim to become competitive and stay in business, and to provide jobs. 2. Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change. 3. Cease dependence on inspection to achieve quality. Eliminate the need for massive inspection by building quality into the product in the first place. 4. End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move towards a single supplier for any one item, on a long-term relationship of loyalty and trust. 5. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs. 6. Institute training on the job. 7. Institute leadership. The aim of supervision should be to help people and machines and gadgets to do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers. 11

12 Deming s 14 Points (cont d) 8. Drive out fear, so that everyone may work effectively for the company. 9. Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service. 10. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. The bulk of causes of low quality and low productivity belong to the system and thus lie beyond the work force. 11. Eliminate work standards (quotas) on the factory floor. Substitute leadership. Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership. 12. Remove barriers that rob the hourly worker, people in management and in engineering of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality. Abolish the annual or merit rating and management by objective. 13. Institute a vigorous program of education and self-improvement. 14. Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job. 12

13 Deming s Seven Deadly Diseases of Management 1. Lack of constancy of purpose 2. Emphasis on short-term profits 3. Evaluation by performance, merit rating, or annual review of performance 4. Mobility of management 5. Running a company on visible figures alone 6. Excessive medical costs 7. Excessive costs of warranty, fueled by lawyers who work for contingency fees 13

14 A Lesser Category of Obstacles Neglecting long-range planning Relying on technology to solve problems Seeking examples to follow rather than developing solutions Excuses, such as "our problems are different" Obsolescence in school that management skill can be taught in classes Reliance on quality control departments rather than management, supervisors, managers of purchasing, and production workers Placing blame on workforces who are only responsible for 15% of mistakes where the system desired by management is responsible for 85% of the unintended consequences Relying on quality inspection rather than improving product quality. 14

15 The PDCA cycle The Plan-Do-Check-Act (PDCA) cycle is a four-step management process used in business. It is also known as the Deming (or Shewhart) circle, cycle or wheel, or Plan-Do-Study-Act (PDSA). 15

16 The PDCA management process PLAN DO Establish the objectives and processes necessary to deliver results in accordance with the expected output (the target or goals). Implement the new processes, often on a small scale if possible, to test possible effects. Collect data for charting and analysis for the following "CHECK" step. CHECK ACT Measure the new processes and compare the results (collected in "DO" above) against the expected results (targets or goals from the "PLAN") to ascertain any differences. Charting data can make this much easier to see trends in order to convert the collected data into information needed for the next step "ACT". Analyze the differences to determine their cause. Each will be part of either one or more of the P-D-C-A steps. Determine where to apply changes that will include improvement. When a pass through these four steps does not result in the need to improve, refine the scope to which PDCA is applied until there is a plan that involves improvement. 16

17 Joseph M. Juran ( ) 20th century management consultant and author remembered as a preacher for quality and quality management He developed the idea of trilogy: Planning Improvement Control He stressed that conformance to specifications is necessary but not sufficient requirement of a product The fitness for use by the consumer of the targeted market segment is an essential requirement in addition to conformance. 17

18 Juran s Trilogy 18

19 Juran s 10 Points 1. Build awareness of need and opportunities for improvement 2. Set goals for improvement 3. Organize the overall improvement program 4. Provide the training 5. Solve problems through project methodology 6. Report progress 7. Give recognition 8. Communicate results 9. Keep score 10. Institutionalize the improvement process 19

20 Armand V. Feigenbaum (b. 1922) control expert and businessman. He devised the concept of Total Control, later known as Total Management (TQM), as an effective system for integrating the quality development, quality maintenance, and quality improvement efforts of the various groups in an organization to achieve full customer satisfaction." He also developed the concept of a "hidden" plant the idea that so much extra work is performed in correcting mistakes that there is effectively a hidden plant within any factory. Accountability for quality: Because quality is everybody's job, it may become nobody's job the idea that quality must be actively managed from the highest levels of management. 20

21 Philip B. Crosby ( ) Businessman, consultant and author who contributed to management theory and quality management practices He initiated the Zero Defects program at the Martin Company Orlando, Florida, plant Crosby's response to the quality crisis was the principle of doing it right the first time (DIRFT). He would also include four major principles: the definition of quality is conformance to requirements (requirements meaning both the product specifications and the customer's requirements) the system of quality is prevention the performance standard is zero defects the measurement of quality is the price of nonconformance 21

22 Crosby s quality points Do it right the first time Zero Defects is defined as conformance to requirements, not as 'goodness' or 'elegance' The system for causing quality is prevention, not appraisal is Free The performance standard must be Zero Defects, not that's close enough The measurement of quality is the Price of Non-conformance, not indices. Cost of quality is only the measure of operational performance Management commitment improvement team measurement Evaluation of cost of quality awareness Corrective action Establish committee for zero defect planning Supervisor training Zero Defect Day Goal Setting Error cause removal Recognition 22

23 Kaoru Ishikawa ( ) Japanese university professor and influential quality management innovator best known for his cause-and-effect diagrams (also Ishikawa or Fish Bone diagrams) Simplified statistical techniques for QC Stressed the implementation of company-wide quality control, quality circles and shared vision does not only mean the quality of product, but also of after sales service, quality of management, the company itself and the human life. 23

24 Ishikawa s Cause-and-Effect-Diagram 24

25 Ishikawa s three sets of causes 8 M s (in manufacturing) Machine Method Materials Man Power Mother Nature Measurement Maintenance Management 8 P s (in services) Price Promotion Process Place/Plant Policies Procedures Product (or Service) 4 S s (in services) Surroundings Suppliers Systems Skills 25

26 Genichi Taguchi (b. 1924) Japanese engineer and statistician. From the 1950s onwards, he developed a methodology for applying statistics to improve the quality of manufactured goods. Key elements of his quality philosophy include: Loss function, used to measure financial loss to society resulting from poor quality; The philosophy of off-line quality control, designing products and processes so that they are insensitive ( robust ) to parameters outside the design engineer s control; and Innovations in the statistical design of experiments, notably the use of an outer array for factors that are uncontrollable in real life, but are systematically varied in the experiment. 26

27 Taguchi s Loss Function A quality product is a product that causes a minimal loss (expressed in money!) to society during it's entire life The relation between this loss and the technical characteristics is expressed by the loss function Traditional and Taguchi s view of non-conformance 27