Total Quality Management Continuous Improvement (TQM) and Continuous Improvement

TQM and Continuous Improvement 1. Signs of Un-quality 2. Quality Defined 3. TQM Defined 4. Traditional vs. TQM Culture 5. TQM: How It Is Achieved 6. Tools for Generating Ideas 7. Five-phase Approach to Implementation 8. The Malcom Baldrige Quality Award

Signs of Un-Quality Process Time Increases Number of Inspections Micro- Management Experienced Workers Leave Customer Complaints Increase Number of Meetings Increases

Quality. . . . . . Is a dynamic state associated with products, services, people, processes, and environments that meet or exceed current expectations.

TQM: A Definition TQM is a team-based cooperative form of doing business that relies on talents and capabilities to continually improve quality and productivity.

Two Key Philosophies: Continuous Improvement

Traditional vs. TQM Culture Aspect Traditional TQM Mission Maximize ROI Objectives Short term, Inconsistent Long and short term, consistent Management Open, encourages employee input Issue orders, enforce Coach, remove barriers, build trust Customer Requirements Not highest priority, may be unclear Highest priority, identify and understand

Traditional vs. TQM (cont.) Aspect Traditional TQM Problems Assign blame, punish Identify and resolve Problem solving Not systematic, individuals Systematic, teams Improvement Erratic Adversarial Partners Jobs Narrow, specialized Broad, more general Focus Product

Elements of TQM Continuous improvement Competitive benchmarking Employee empowerment Team approach Decisions based on facts, not emotions Knowledge of tools Supplier quality

Tools for Generating Ideas Brainstorming Quality Circles Benchmarking

Benchmarking What Organization Does It the Best? How Do They Do It? How Do We Do It Now? How Can We Change to Match or Exceed the Best?

Tools for Generating Ideas Brainstorming Quality Circles Benchmarking The 5W2H approach

The 5W2H Approach What? Why? Where? When? Who? How? How Much?

Five-Phase Approach to Implementation Preparation Phase 2: Planning Phase 3: Phase 4: Implementation Phase 5: Diversification

Phase 1: Preparation Develop A Vision Statement Develop Goals Outline Policy Communication Empowerment

Phase 2: Planning Forming A Team Training Identifying Expectations Identifying Obstacles Selecting & Training A Coordinator Prioritizing Identifying Support Services

Phase 3: Customer Survey Organizational Assessment TQM Planning Inventory Training Feedback

Phase 4: Implementation Selecting & Training Support Personnel Training Management & the Workforce Executive Reinforcement Controlling

Phase 5: Diversification Supplier Involvement Competitive Analysis Select Strategic Suppliers Certify Suppliers Networking

Baldrige Award Criteria Framework Goal System Customer Satisfaction satisfaction relative to competitors Market Share “Driver” Management of Process Quality Customer Focus and Satisfaction Senior Executive Leadership Human Resource Development and Management Measures of Progress Quality and Operational Results Strategic Quality Planning Product and service quality Internal quality and productivity Supplier quality Information and Analysis

Baldrige Award Winners Motorola’s quality control problems: poorly designed assemblies incorrect parts ordered or shipped by suppliers defective or damaged parts from suppliers machinery incapable of operating within control limits insufficient training

Baldrige Award Winners AT&T’s Three Priorities for Quality First, to step up their efforts to have the best quality in the world. Second, to keep striving for an operating style and behavior that focused more sharply on customer needs. Third, to continue to develop into a truly global corporation.

Baldrige Award Winners “We listen, we learn, and we act constantly so that the quality of our products and services will keep improving.” Globe Metallurgical, Inc.

Baldrige Award Winners Total Quality is “performance leadership in meeting customer requirements by doing the right things right the first time. We’ve developed a culture where employees involved in quality are the norm. The Total Quality attitude is so pervasive that it’s those who don’t participate who are the exception. Westinghouse Electric

Baldrige Award Winners Leadership through quality was a long-term process meant to change the way our people worked and managed so they could continuously improve the way they met the requirements of the customers. The Baldrige process is valuable because it forces you to look at your company the way the customer sees it - not the way you think it is. Xerox

Baldrige Award Winners You can’t simply place people on teams and expect the outcome to be favorable. In order to achieve success, you need to create an atmosphere that is conducive to teamwork and establish some guidelines. The Wallace Company

Baldrige Award Winners A business can survive only through improvement. The Baldrige forces you to stay on your toes. It’s a beautiful system. I think companies will take it seriously, use it primarily as a tool for improvement, and work hard to reap tremendous benefits in a short period of time. Granite Rock

Baldrige Award Winners Eight great benefits Baldrige has brought: 1. More aggressive, strategic goal setting. 2. Enhanced quality awareness. 3. Improved customer awareness. 4. Better benchmarking. 5. Development of new, quality-driven operations. 6. Improved supplier management. 7. Stronger employee participation and recognition. 8. Problem-solving through teambuilding.

Ten Commandments of Continuous Improvement 1. Put the customer first. 2. 3. Design quality into products and services. 4. Improve everything, continually. 5. Create and support a safe and open work environment.

Ten Commandments of CI (cont.) 6. Do not shoot the messenger. 7. Stop imitating the Japanese. 8. 9. Do not sacrifice long-term improvements for short-term profits. 10. Quality is not enough.