Total Quality Management (TQM) Imran Hussain

COMPETITION is the driving force in business

A supplier’s competitiveness is determined by QUALITY

Perception of Quality Perception of Quality Once you get a reputation, it’s hard to lose it

What is Quality?

Totality of characteristics of an entity that bear on its ability to satisfy stated and implied needs (ISO 8402 : 1994)

Meeting and exceeding the implied and stated needs of the customer

Meeting customer requirements

A successful business meets all its customers’ requirements

Good service is RELIABILITY

Good service is PUTTING CUSTOMER FIRST

Aim of supplier is to DELIGHT the customer

Who is the Customer?

Suppliers and Customers internal and external

Quality Chain

A small break in the internal chain can be proportionately greater when they get to the external customer/supplier interface

Quality must be built in from beginning of an organization’s activities, not ‘inspected in’ at the end

Quality is a two-way process

Focus on inputs vs. outputs

Use processes at the interfaces

Detection and quality control

Quality Control Quality Control involves monitoring specific project results to determine if they comply with relevant quality standards, and identifying ways to eliminate causes of unsatisfactory results Quality Control involves monitoring specific project results to determine if they comply with relevant quality standards, and identifying ways to eliminate causes of unsatisfactory results

Q: Have we done job correctly?

Q: Are we capable doing the job correctly?

Total quality approach required

Total Quality Management Approach Methods Methods Materials Materials Equipment Equipment Skills & knowledge Skills & knowledge Instructions Instructions Processes Processes

Process InputsOutputs

Q: Are we capable doing the job correctly? Q: Do we continue to do the job correctly?

YES or NO?

No need for DETECTION

The customer/supplier chain is the core of the Total Quality Management model

TQM Support Mechanism Systematic Planning Systematic Planning Tools for measuring delivering and sustaining quality Tools for measuring delivering and sustaining quality Organizing for quality & developing teams Organizing for quality & developing teams Communication between all parts of the organization Communication between all parts of the organization Commitment of the organization to a TQM approach Commitment of the organization to a TQM approach Recognition and perhaps change of the organizations’ culture & environment Recognition and perhaps change of the organizations’ culture & environment

Inner band … Teams Tools Systems

Outer band … Communication Commitment Culture

Five Pillars of TQM Product Product Processes Processes Organization Organization Leadership Leadership Commitment Commitment

TQM A management approach centered on quality, based on company-wide participation and aimed at long term success through customer satisfaction (ISO) A management approach centered on quality, based on company-wide participation and aimed at long term success through customer satisfaction (ISO)

TQM Based on company-wide participation Based on company-wide participation TQM involves everyone in an organization - every function and every activity TQM involves everyone in an organization - every function and every activity

Evolution of Quality Guilds of Medieval Europe Product Orientation Process Orientation Quality during World War II 1946-Present Birth of Total Quality

Guilds of Medieval Europe ( ) Craftsmen across Europe organized into unions called Guilds Craftsmen across Europe organized into unions called Guilds Guilds were responsible for developing strict rules for product and service quality Guilds were responsible for developing strict rules for product and service quality Inspection committees enforced the rules by identifying flawless goods with a special mark Inspection committees enforced the rules by identifying flawless goods with a special mark A second quality mark came from the craftsmen themselves A second quality mark came from the craftsmen themselves Primary Focus: Product Inspection Primary Focus: Product Inspection

Product Orientation ( ) US quality practices in the 1800s were shaped by several different production methods: US quality practices in the 1800s were shaped by several different production methods: Craftsmanship Craftsmanship The Factory System The Factory System The Taylor System The Taylor System

Craftsmanship Early 19 th century- the approach tended to follow the craftsmanship model in the European countries Early 19 th century- the approach tended to follow the craftsmanship model in the European countries Masters maintained a form of quality control by inspecting goods before sale Masters maintained a form of quality control by inspecting goods before sale

The Factory System This is a product of the industrial revolution in Europe This is a product of the industrial revolution in Europe The craftsmen became factory workers and the shop owners their production supervisors The craftsmen became factory workers and the shop owners their production supervisors Quality in the factory system was ensured through skilled laborers and supplemented by audits and/or inspections Quality in the factory system was ensured through skilled laborers and supplemented by audits and/or inspections Large production departments employed full-time inspectors who produced quality reports and Large production departments employed full-time inspectors who produced quality reports and Defective products were either reworked or scrapped. Defective products were either reworked or scrapped.

The Taylor System In the late 19 th century US broke from European tradition and adopted a new management approach by Taylor In the late 19 th century US broke from European tradition and adopted a new management approach by Taylor Taylor’s goal was to increase productivity without increasing the no. of skilled craftsmen Taylor’s goal was to increase productivity without increasing the no. of skilled craftsmen He achieved this by assigning factory planning to specialized engineers and using displaced workers and supervisors to execute the engineers plans He achieved this by assigning factory planning to specialized engineers and using displaced workers and supervisors to execute the engineers plans This new approach led to remarkable rises in productivity This new approach led to remarkable rises in productivity BUT … BUT …

The Taylor System Workers once again stripped of their dwindling power and the new emphasis was on productivity which had an adverse effect on quality Workers once again stripped of their dwindling power and the new emphasis was on productivity which had an adverse effect on quality

Product Orientation ( ) Primary Focus: Product Inspection Primary Focus: Product Inspection

Process Orientation ( ) Beginning of the 20 th century marked the inclusion of processes in quality practices Beginning of the 20 th century marked the inclusion of processes in quality practices Shewhart recognized that industrial processes yield data. Shewhart recognized that industrial processes yield data. He determined that this data can be analyzed using statistical techniques to see if a process is stable or “in control” or if is being affected by special causes that should be fixed. He determined that this data can be analyzed using statistical techniques to see if a process is stable or “in control” or if is being affected by special causes that should be fixed. His concepts are referred to as “Statistical Quality Control” (SQC) His concepts are referred to as “Statistical Quality Control” (SQC) Primary Focus: Product Inspection & SQC Primary Focus: Product Inspection & SQC

Quality during World War II ( ) After World War II had started, US enacted legislation to help gear the civilian economy to military production After World War II had started, US enacted legislation to help gear the civilian economy to military production At that time contracts were awarded to manufacturers who submitted the lowest bid. Products were inspected upon delivery At that time contracts were awarded to manufacturers who submitted the lowest bid. Products were inspected upon delivery The armed forces inspected virtually every unit of product to ensure that it was safe for operation The armed forces inspected virtually every unit of product to ensure that it was safe for operation To ease this problem, the armed forces began to utilize sampling inspection to replace unit-by-unit inspection To ease this problem, the armed forces began to utilize sampling inspection to replace unit-by-unit inspection They adopted sampling tables and published them in a military standard Mil-Std-105 They adopted sampling tables and published them in a military standard Mil-Std-105 They also helped their suppliers improve their quality by sponsoring training courses in Shewhart’s SQC techniques They also helped their suppliers improve their quality by sponsoring training courses in Shewhart’s SQC techniques Primary Focus: Sampling Inspection & SQC Primary Focus: Sampling Inspection & SQC

Birth of Total Quality (1946-Present) After World War II, major Japanese manufacturers converted from producing military goods for internal use to civilian goods for trade After World War II, major Japanese manufacturers converted from producing military goods for internal use to civilian goods for trade Poor response from the world market Poor response from the world market Japan started exploring new ways of thinking about quality (Deming and Juran) Japan started exploring new ways of thinking about quality (Deming and Juran) Rather than relying purely on product inspection, total quality focused on improving all organizational processes through the people who used them Rather than relying purely on product inspection, total quality focused on improving all organizational processes through the people who used them

Birth of Total Quality (1946-Present) Juran, at a conference of the European organization for quality control in Sweden made the following prediction Juran, at a conference of the European organization for quality control in Sweden made the following prediction “The Japanese are headed for world quality leadership and will attain it in the next two decades because no one else is moving at the same pace”

America’s Response Initially US clung to its assumption that Japanese success was price related and responded with strategies aimed at reducing domestic production costs and restricting imports. This did not prove beneficial Initially US clung to its assumption that Japanese success was price related and responded with strategies aimed at reducing domestic production costs and restricting imports. This did not prove beneficial By the end of the 1970’s US reached a major quality crisis. By the end of the 1970’s US reached a major quality crisis. They started to think “if Japan can.. Why can’t we? They started to think “if Japan can.. Why can’t we? CEO of top US organizations then took an initiative CEO of top US organizations then took an initiative

References Total Quality Management – A Total Quality Approach, Ch. 1, 2 Total Quality Management – A Total Quality Approach, Ch. 1, 2