TOTAL QUALITY MANAGEMENT Engineering 7943: Production and Operations Management 26 July 2005 Total Quality Management

Total Quality Management OUTLINE Definition History Customer Satisfaction Continuous Improvement of Performance Employee Involvement Implementation Barriers Benefits 26 July 2005 Total Quality Management

Total Quality Management DEFINITION Quantitative methods and human resources Three elements Customer satisfaction Continuous improvement of performance Employee involvement Includes customers and employees 26 July 2005 Total Quality Management

Total Quality Management HISTORY Emerged from the quality movement 1920s - 1930s: Shewhart’s Statistical Quality/Process Control 1940s - 1960s: Deming and Juran 1961: Feigenbaum, Total Quality Control 1970s: Crosby, zero defects, quality is free 1983: Feigenbaum, re-released Total Quality Control 26 July 2005 Total Quality Management

CUSTOMER SATISFACTION Customer obsession Number one priority Experiencing the process Management acting as consumer / customer Profiling Questionnaires Surveys Personal visits Focus groups 26 July 2005 Total Quality Management

CUSTOMER SATISFACTION Quality and reliability Follow-up consultation Kansei Importance of value Psychological impression Websites Availability Delivery 26 July 2005 Total Quality Management

CONTINUOUS IMPROVEMENT Japanese word kaizen, meaning incremental change Use, Statistical Process Control and Quality Teams USA-PDCA method 26 July 2005 Total Quality Management

UNDERSTAND (USA-PDCA) Know customers, both internal and external Know customer needs Who are the customers of a process? What products or services does the process supply? What are the customer needs? To what extend does the product or service meet customer expectations for quality? 26 July 2005 Total Quality Management

Total Quality Management SELECT (USA-PDCA) Identify discrepancies Discrepancy if a product fails or exceeds expectations Prioritize Select 26 July 2005 Total Quality Management

Total Quality Management ANALYZE (USA-PDCA) Current State Analysis and Cause Analysis with flow charts and statistical quality control (SQC, similar to SPC) SQC: control charts, histograms, scatter diagrams, pareto charts, fishbone diagrams, and check sheets 26 July 2005 Total Quality Management

Total Quality Management PLAN (USA-PDCA) PDCA cycle, begins when the cause of a variation has been identified; eliminate or emulate Plan: Brainstorm, choose and develop a plan 26 July 2005 Total Quality Management

Total Quality Management DO (USA-PDCA) Carry out the plan Can be done on experimental basis 26 July 2005 Total Quality Management

Total Quality Management CHECK (USA-PDCA) Use SPC to analyse performance If not solved, loop back to the plan or analyze stage If solved, move to the adopt phase 26 July 2005 Total Quality Management

Total Quality Management ADOPT (USA-PDCA) Implement the solution across the entire organization 26 July 2005 Total Quality Management

Total Quality Management REPEAT PDCA cycle may be repeated many times for an individual process The USA process should be updated or repeated after major changes or time increments 26 July 2005 Total Quality Management

Total Quality Management EMPLOYEE INVOLVEMENT Foster employee ownership Management system supportive of collaboration Relying on quality at the source, not inspection Employees involved in improving processes 26 July 2005 Total Quality Management

Total Quality Management QUALITY TEAMS Several volunteer employees responsible for a specific process Undertake continuous improvement tasks, utilizing statistical process control to verify improvements Recognise employees for contributions Do not work well without managerial support or statistical process control 26 July 2005 Total Quality Management

Total Quality Management SELF-MANAGED TEAMS Hard to implement Employees must be willing to take on more responsibility If completed successfully, can be highly efficient 26 July 2005 Total Quality Management

Total Quality Management SUGGESTION SYSTEM Support of management and supervisors Clear submission and rejection procedures Reasons for rejecting made clear Recognition when a suggestion is implemented 26 July 2005 Total Quality Management

Total Quality Management IMPLEMENTATION Requires systematic, integrated, consistent, organization wide approach Determine specific changes necessary to create and maintain TQM Requires a change in three dimensions Physical methods (process , technology) Culture (norms, values, beliefs) Political System (decision making systems, power base) TQM should be purpose oriented evolve from an organization's strategic plan based on the expectations held by the customers 26 July 2005 Total Quality Management

IMPLEMENTATION (CONT’D) Differs from one organization to the next Common Aspects for TQM implementation: Assessment of Current State Determination and application of Plan of Action Training Quality of leadership is fundamental in facilitating change 26 July 2005 Total Quality Management

ASSESSMENT OF CURRENT STATE Helps predict likelihood of successful implementation Essential information regarding Organization’s history Current needs Existing employee quality of life Precipitating events leading up to TQM Organization should be “basically healthy” before attempting TQM Significant problems endanger success unstable funding base weak administrative systems lack of managerial skills poor employee morale Level of stress on organization may be desirable to initiate TQM 26 July 2005 Total Quality Management

Total Quality Management ACTION PLANNING Method to determine and implement desired TQM changes Involves entire organization General steps for Action Planning Define objective Determine specific goals to support objective Develop strategy Determine and apply tactics and operations necessary for success Integrate action into organization’s culture Continuously collect data regarding improvement to ensure success of plan 26 July 2005 Total Quality Management

Total Quality Management TRAINING Comprehensive training program necessary to create and maintain TQM Institutionalized in entire organization Focuses on specific behaviors and skills required for TQM environment Training begins with management and moves down through organization as necessary Candidate list for TQM training include Action Planning Leadership Team Building Tools and Techniques 26 July 2005 Total Quality Management

Total Quality Management ROLE OF MANAGEMENT Leadership is key element in successful implementation of large-scale change Leaders Show need and set vision Take a long-term perspective Motivate others to stick with the process Are persistent, using constant reinforcement Leadership style should be participative Leaders expect a long term process, including a transition period 26 July 2005 Total Quality Management

Total Quality Management SUGGESTIONS Don’t “Do TQM” TQM should not exist as a separate entity of organization Employees should be involved in decisions whenever possible TQM should not have an end 26 July 2005 Total Quality Management

Total Quality Management BARRIERS Lack of management commitment Inability to change organizational culture Improper planning Lack of continuous training and education Incompatible organizational structure Insufficient resources Use of prepackaged program Ineffective measurement techniques Inadequate attention to customers Inappropriate conditions for implementation Inadequate use of teamwork 26 July 2005 Total Quality Management

Total Quality Management BENEFITS Customer satisfaction Intangible and tangible Product quality Less waste and rework Higher profits Employee involvement Training Quality of life 26 July 2005 Total Quality Management