TOPIC 8 QUALITY OBJECTIVE. Quality

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1 TOPIC 8 QUALITY Q Copyright Houghton Mifflin Company. All rights reserved. 8-1 OBJECTIVE What is Quality & Its Importance Total Quality Management (TQM) Dimensions of Quality Element of TQM TQM vs. Traditional Management Contributors of Quality W.E. Deming, J.M. Juran, P.B. Crosby, K.Ishikawa Five Main Ideas of TQM FREST Problems Implementing TQM 5 Pillars of TQM Copyright Houghton Mifflin Company. All rights reserved. 8-2 Quality What is the meaning of quality? The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. Performance to the standard expected by customer Meeting the customer s needs the first time and every time An ever changing state (might chance through time) Copyright Houghton Mifflin Company. All rights reserved

2 Importance of Quality People deal with the issue of quality continually in their daily lives Involves in meeting or exceeding customer expectations Applies to products, services, people, processes and environment To be a successful in today s business environment, organizations must pay attention to quality Copyright Houghton Mifflin Company. All rights reserved. 8-4 Total Quality Management What is TQM? A commitment to excellence by everyone or excellence achieved by teamwork Represent the foundation of a continuously improving organization Is a specific, systematic and company wide activities which are directed towards achieving the quality, cost, quantity and delivery products and services to satisfy its customers The totally integrated effort for gaining competitive advantage by continuously improving every facet/aspect of an organization s activities TOTAL everyone involved in continuous improvement QUALITY customer s requirement are fully met MANAGEMENT management are fully committed Copyright Houghton Mifflin Company. All rights reserved. 8-5 Copyright Houghton Mifflin Company. All rights reserved

3 What Are the Elements for TQM? Strategic commitment. Employee involvement. Technology. Materials. Methods improvement. Copyright Houghton Mifflin Company. All rights reserved. 8-7 Total Quality Management Copyright Houghton Mifflin Company. All rights reserved. 8-8 TQM and Traditional Management TQM Customer Focus Quality First Multiple quality dimension Management and worker involvement Process oriented Traditional Management Management Focus Profit First Single quality dimension No worker involvement Results oriented Copyright Houghton Mifflin Company. All rights reserved

4 HISTORY OF QUALITY The turning point occurred in Japan after WW II The major contributors are W Edward Deming Joseph M Juran Philip B Crosby Kaoru Ishikawa Copyright Houghton Mifflin Company. All rights reserved Achieving Quality : W Edward Deming Deming s 14 points (believe that managers are the primary source of increased productivity) Create and publish to all employees a statement of the aims and purpose of the company Learn the new philosophy Understand the purpose of inspection for improvement of process and reduction of costs End the practice of awarding business on the basis of price tag alone Improve constantly and forever the system of production and services Institute training Teach and institute leadership Copyright Houghton Mifflin Company. All rights reserved Achieving Quality : W Edward Deming (cont..) Drive out fear, create trust and a climate of innovation Optimize toward the aims and purpose of the company, efforts, teams, and groups Eliminate exhortation for the work force Eliminate numerical quotas for production, instead learn and institute method of improvements Remove barriers that rob people of pride for their workmanship Encourage education and self-improvement Take action to accomplish the transformation Copyright Houghton Mifflin Company. All rights reserved

5 Achieving Quality : W Edward Deming (summary) Work towards organization s goals Continuous learning process take challenge, responsibilities, leadership Eliminate inspection do right thing the first time Reward base on quality Continuous improvement Implement training program Implement leadership Eliminate aggressive force and fear Break down barriers between departments & Exercise teamwork force. Eliminate work standards (quotas) on the factory floor. Eliminate management by numbers, numerical goals Focus on Quality not Quantity & Reward employee sufficiently Let people take pride on their work Implement self-improvement program Encourage transformation Copyright Houghton Mifflin Company. All rights reserved Achieving Quality : Joseph M Juran Juran s guidelines for achieving quality Focused on the responsibility of management to achieve quality and the need for setting goals His concept incorporates closely to the point of view of the customer His belief that quality does not happen by accident and needs to be planned. The process of quality improvement is best summarized in his `trilogy' concept: Copyright Houghton Mifflin Company. All rights reserved Achieving Quality : Joseph M Juran cont Quality planning Identify who are the customers & their needs Optimize the product features to meet our needs and customer needs Quality control Develop a process which is able to produce the product Optimize the process Quality improvement Prove that the process can produce the product under operating condition Transfer the process to operations Copyright Houghton Mifflin Company. All rights reserved

6 Achieving Quality : Philip B Crosby Quality is conformance to requirement The system achieving quality is prevention The performance standard is zero defect Copyright Houghton Mifflin Company. All rights reserved Achieving Quality :Kaoru Ishikawa Recognized for contributing to the emergence of quality circles, where workers meet to discuss suggestion for improvements Focusing on total quality efforts on customers output from one dept be given to another dept as if they were customers and to take worker s suggestion seriously Copyright Houghton Mifflin Company. All rights reserved FIVE MAIN IDEAS IN TQM 1. A System Approach 2. The Tools of TQM 3. A Focus on Customers 4. The Role of Management 5. Employee Participation Copyright Houghton Mifflin Company. All rights reserved

7 Tools T Focus on Customer F FREST System Approach S Role of Management R Employee participation E Copyright Houghton Mifflin Company. All rights reserved A System Approach Understanding organization as systems The social or cultural system Set of beliefs The managerial system Effectiveness of managing human and physical assets The technical system Technologies, infrastructure, financial A system is a series of functions or activities within the organization that work together for the aim of the organization Each part or function of the system must support each other. Copyright Houghton Mifflin Company. All rights reserved The Tools of TQM Two main tools of TQM Fishbone diagram Benchmarking Others Statistical quality control A set of specific statistical techniques that can be used to monitor quality Outsourcing Subcontracting services to other firms that can perform them cheaper or better ISO A set of quality standards created by International Organization for Standards Copyright Houghton Mifflin Company. All rights reserved

8 Fishbone Diagram Introduced by Kaoru Ishikawa The basic concept is that the name of a basic problem is entered at the end of the main "bone". The main possible causes of the problem (the effect) are drawn as bones off of the main backbone. The "Four-M" categories are typically used as a starting point: "Materials", "Machines", "Manpower", and "Methods". Different names can be chosen to suit the problem at hand, or these general categories can be revised. When the fishbone is complete, one has a rather complete picture of all the possibilities about what could be the root cause for the designated problem. Copyright Houghton Mifflin Company. All rights reserved Examples of Fishbone Diagram Main problem Copyright Houghton Mifflin Company. All rights reserved Copyright Houghton Mifflin Company. All rights reserved

9 What Is Benchmarking? The process of learning how other firms do things in an exceptionally high quality manner. Comparing your products and processes against the very best in the world What does benchmarking enable firms to do? To stay ahead of improvements and changes its competitors are using Copyright Houghton Mifflin Company. All rights reserved A Focus On Customer Customer defines quality and employees produce it Customers are people who buy and use the products Should focus on both internal and external customer Internal employees External customers, suppliers Copyright Houghton Mifflin Company. All rights reserved Role of Management Manager from supervisors to senior executives are the most crucial factor in making TQM a success From top manager, TQM requires a deep commitment to quality, and a continuing effort to make sure quality values are understood and accepted by everyone in the company Management must make sure that everyone understand and accept the principles of TQM Copyright Houghton Mifflin Company. All rights reserved

10 5. Employee Participation Without empowered employees, TQM won t go far Empowerment Is letting employees make decision Employees who are actually doing a job, are in the best position to learn what is the best way to implement the job Copyright Houghton Mifflin Company. All rights reserved Problems in Implementation of TQM Lack of management support A follower and no goals of their own No appropriate communication system informing about quality, process, customer needs, etc Lack of training both employees and managements Empowerment is not practiced Believing that quality means inspection, however quality tries to eliminate inspection or Doing the right thing the first time Changing targets too frequently Copyright Houghton Mifflin Company. All rights reserved Pillar of TQM TQM Product Process Organization Leadership Commitment Quality in the product is impossible without quality in the process Quality in the process is impossible without the right organization The organization is meaningless without proper leadership Strong, bottom-up commitment is the support pillar for all the rest Each pillar depends upon the other four, if one is weak, all are Copyright Houghton Mifflin Company. All rights reserved

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