The Total Quality Approach to Quality Management

Lecture Outline What is Quality? The Total Quality Approach Two Views of Quality Elements of Total Quality The Deming Cycle Juran’s Contributions Crosby’s Contributions Total Quality Efforts Succeed Six-Sigma Concept The Future of Quality Management

What is Quality? (1) FEDEX - “Performance to the standard expected by the customer” General Services Administration - “Meeting the customer’s need the first time and every time” BOEING - “Providing customers with products and services that consistently meet their needs and expectations. US Department of Defense - “Doing the right thing right the first time, always striving for improvement, and always satisfying the customer”. Quality can be defined in terms of the agent. Who is the judge of quality?

What is Quality? (2) Quality involves meeting or exceeding customer expectations. Quality applies to products, services, people, processes, and environments. Quality is an ever-changing state (i.e., what is considered quality today may not be good enough to be considered quality tomorrow). Quality is a dynamic state associated with products, services, people, processes and environments that meets or exceeds expectations.

The Total Quality Approach (1) Total quality is an approach to doing business that attempts to maximize the competitiveness of an organization through the continual improvement of the quality of its products, services, people, processes and environments. Customer focus

The Total Quality Approach (2) Characteristics of the Total Quality: Strategically based Customer focus (internal and external) Obsession with quality Scientific approach to decision making and problem solving Long-term commitment Teamwork Continual process improvement Education and training Freedom through control Unity of purpose Employee involvement and empowerment Customer focus

The Total Quality Approach (3) Historic Development of Total Quality Approach Customer focus

The Total Quality Approach (4) Japanese Strategies: The upper managers personally take charge of leading the revolution. All levels and functions under go training in managing for quality. Quality improvement should be taken at a continuing, revolutionary pace. The workforce is enlisted in quality improvement through the Quality Control (QC) concept. Customer focus

Two Views of Quality (1) Total Quality View Traditional View: Process performance = defective parts per hundred produced. Focused on after-the-fact inspections of products. Employees are passive workers who followed orders. One improvement per year per employee Focus on short term profits Process performance = defective parts per million produced. Continuous improvement of products, processes and people. Employees are empowered to think and make recommendations. At least 10 improvements per employee per year Focus on long term profits and continual improvement. Customer focus

Two Views of Quality (2) Total Quality View Traditional View Productivity versus quality Productivity and quality are always in conflict. You cannot have both. Lasting productivity gains are made only as a result of quality improvements. Customer focus How quality is defined Meeting customer specifications. Satisfying customer needs and exceeding customer expectations. How quality is measured Establishing an acceptable level of nonconformance and measuring against the bench mark. Establishing high-performance bench marks for customer satisfaction and then continually improving performance.

Two Views of Quality (3) Total Quality View Traditional View How quality is achieved Quality is inspected into the product. Quality is determined by product design and achieved by effective control techniques. Customer focus Attitude towards defects Defects are an expected part of producing a product. Defects are to be prevented using effective control systems. Quality as a function Quality is a separate function. Quality should be fully integrated throughout the organization, i.e. it should be every body’s responsibility.

Two Views of Quality (4) Total Quality View Traditional View Responsibility for quality Employees are blamed for quality. 80% quality problems are management’s fault. Customer focus Supplier relationships Supplier relationships are short term and cost driven. Supplier relationships are long term and quality oriented.

Elements of Total Quality (1) Strategically Based Comprehensive strategic plan with following elements: vision, mission, broad objectives and following activities Provides sustainable competitive advantage in the marketplace. Customer Focus “Customer is the driver”. External customers: define the quality of the product or service delivered. Internal customers: define the quality of people, processes, and environment associated with the products or services.

Elements of Total Quality (2) Obsession with Quality All personnel at all levels approach all aspects of the job from the perspective of “How can we do this better?”. “Good enough” is never good enough. Scientific Approach Hard data are used in establishing benchmarks, monitoring performance, and making improvements. Decision making and problem solving is based on scientific principals.

Elements of Total Quality (3) Long-term Commitment Quality improvement is NOT another management innovation but a whole NEW way of doing business that requires an entirely new corporate culture. Teamwork Internal competitiveness vs. External competitiveness Continual Process Improvement Continually improve systems (environments) where products are developed and services are delivered by people.

Elements of Total Quality (4) Education and Training Best way to improve people on a continual basis. Train hardworking people “How to work smart?” Freedom through Control Involving and empowering employees to simultaneously bring more minds to bear on the decision-making process and increase the ownership employees feel about decisions that are made. Well-planned and carried-out controls (not loss of management control).

Elements of Total Quality (5) Unity of Purpose Internal politics have no place in a total quality organization, rather collaboration is the norm. Unity of purpose has nothing to do with Labor Unions. Employee Involvement and Empowerment Basis for involving employees: 1. to increase the likelihood of a good decision or a better plan; 2. to promote ownership of decisions by involving the people who will have to implement them. Empowerment means not just involving people but involving them in ways that give them a real voice.

The Deming Cycle (1) Conduct consumer research and use it in planning the product (PLAN). Produce the product (DO). Check the product to make sure it was produced in attendance with the plan (CHECK). Market the product (ACT). Analyze how the product is received in the market in terms of quality, cost and other criteria (ANALYZE)

Deming’s Fourteen Points (2)

Deming’s Seven Deadly Diseases (3)

Juran’s Contributions (1) Juran’s Three Basic Steps to Progress Juran’s Ten Steps to Quality Improvement

Juran’s Contributions (2) The Pareto Principle 80/20 Rule: 80% of the trouble comes from 20% of the problems. The Juran Trilogy

Juran’s Contributions (3) Quality Planning Determine who the customers are: Identify customers’ needs. Develop products with features that respond to customer needs. Develop systems and processes that allow the organization to produce these features. Deploy the plans to operational levels. Quality Control Assess actual quality performance. Compare performance with goals. Act on differences between performance and goals.

Juran’s Contributions (4) Quality Improvement Develop the infrastructure necessary to make annual quality improvements. Identify specific areas in need of improvement, and implement improvement projects. Establish a project team with responsibility for completing each improvement project. Provide teams with what they need to be able to diagnose problems to determine root causes, develop situations, and establish control that will maintain gains made.

Crosby’s Contributions Crosby’s Quality Vaccine Ingredients Determination. Education. Implementation.

Total Quality Efforts Succeed The successful organizations avoid these errors: Senior management delegation and poor leadership. Team mania. Deployment process. Taking a narrow, dogmatic approach. Confusion about the differences among education, awareness, inspiration, and skill building

Six Sigma Concept (1) A Six-step Protocol for Process Improvement Identify the product characteristics wanted by the customers. Classify the characteristics in terms of their criticality. Determine if the classified characteristics are controlled by part and/or process. Determine the maximum allowable tolerance for each classified characteristic. Determine the process variation for each classified characteristic. Change the design of the product, process, or both to achieve a Six Sigma processes performance.

Six Sigma Concept (2) Histogram of a 3-Sigma Process

Six Sigma Concept (3) What is Six Sigma? Six Sigma is an extension of total quality management which has the aim of taking process and product quality to levels where all customer requirements are met. How is Six Sigma Achieved? By improving process performance. Or, Without improving the process at all if the specifications describing acceptable product can be loosened enough to correspond to the original process’s ± 6 sigma points.

Six Sigma Concept (4) Histogram of a 6-sigma process achieved by broadening the specification range for product acceptability Histogram is shifted 1½ Sigma from its ideal position to account for long-term variation.

The Future of Quality Management (1) Future Trends Demanding global customers. Shifting customer expectations. Opposing economic pressures. New approaches to management.

The Future of Quality Management (2) Quality Management Characteristics for the Future A total commitment to continually increasing value for customers, investors, and employees. A firm understanding that quality is defined by customers, not the company. A commitment to leading people with a bias for continuous improvement and communication. A recognition that sustained growth requires the simultaneous achievement of four objectives all the time, forever: (a) customer satisfaction, (b) cost leaderships, (c) effective human resources, and (d) integration with the supplier base. A commitment to fundamental improvement through knowledge, skills, problem solving and teamwork.