Total Quality Management Key concepts The Cost of Quality Tools and Techniques Benefits Implementation

Total Quality Management Company Wide Quality Control Quality measured in all areas of the firm Whole operation Involved Quality strategy Teamwork Staff Empowerment Customer Involvement Supplier Involvement Quality Assurance Quality System Quality Costing Problem Solving Quality Planning Quality Control Statistical Methods Process Performance Quality Standards TQM Can be viewed as an extension of earlier approaches of quality management but differs in that it puts customers at the forefront of decision making. Inspection aimed at screening out defects before they were noticed by customers QC developed techniques for not only detecting defects but also treating quality problems. QA widen the scope of of quality including other functions other than direct 0perations making use of statistical techniques and taking a longer term perspective on quality. Company wide QC – Extending boundaries of QA to all areas of the company TQM includes all of these techniques but has developed its own distinctive themes Meeting expectations of customers Covering all parts of the organisation Including all people with the organisation Examining all costs which are related to quality. Designing for quality rather than inspecting for it. Developing systems which support quality and its improvement. Developing continued process improvement. Error Detection Rectification Inspection

The Cost of Quality Elements (prevention, detection, appraisal, internal and external failure, customer loyalty) Kaizen TQM always involving everyone, always going forward, a ‘Way of Life’. Cost is related to not doing something Not just a manufacturing initiative

(obvious really isn’t it!) Cost of Quality The earlier in the process that quality is fixed the lower the overall cost. (obvious really isn’t it!) Prevention Appraisal Prevention Internal failure Appraisal External failure Internal failure External failure

Quality Management Tools Pareto principle 80/20 Visual presentation – histograms, scatter diagrams, control charts Check sheets SPC – Statistical Process Control Cause and effect diagrams – Fishbone / Ishikawa diagram Stratification

Beyond Tools to TQM Taguichi Quality Loss Function (QLF) Quality circles BPR Kaizen

Company Wide Quality Control Customer service Quality of management Quality of company Quality of labour Quality of Materials, techniques, equipment

TQM Implementation Top level strategy with management support Steering Group Group based improvement (quality circles) Continuous improvement (Kaizen) Success recognized Training, lots of it & continuously Examples of formats MBNQA, ISO 9001 / BS 5750

Benefits Shareholder wealth Increased job satisfaction (by improved communication and involvement, better training, pride in work workmanship Customer needs are better met Improved supplier relationship Corporate image improved Longer term relationships – customer value

Without TQM Uninterested operators Increased defects in products Drop in labor efficiency No quality consciousness (why bother?) Increased absenteeism Increased labor turnover

TQM Requires Top management commitment Continuous improvement All aspects of the business Long-term commitment v      Top Management Commitment o       Setting the example in their commitment to quality o       Making quality & TQM part of the company’s strategy o       Willingness to invest in training & other important features of TQM   v      Continuous Improvements o       The key to making improvements o       Easier said than done o       Measurements have to be made & recorded o       People will resist being measured o       Quality is a moving target. Objectives must continually be reassessed & sights reset on new the objectives o       Quality circles of 5 – 10 people can be used to achieve this o       C.I. is a journey of many (small) steps i.e. you don’t just arrive at the destination o       A map is required with assessment & reviews to be carried out at every crossroads o       Roadblocks will be encountered along the way v      All Aspects of the Business o       The Quality drive relates to all personnel within & without the firm o       Covers ALL aspects of the supply chain v      Long-term Commitment o       TQM is not a “quick-fix” o       Includes company-wide control o       It is ideally an everlasting approach to managing quality

Eight attributes of quality Performance Features Reliability Serviceability Durability Conformance Aesthetics Perceived Quality Eight attributes of quality   Performance: the primary operating capabilities of the product Features: these are the bells and whistles attributes that are aimed at adding value over and above the basic performance variables above Reliability: this is to do with failure, a facet important in all quality assessments but vital (literally life and death) Serviceability: the speed and competence of repair: ideally this will be an attribute that is not required often Durability: this may be specific to requirements; a product may be seen as a consumable rather than a durable. Laptops 12-month life cycle (previously they were expected to be used for 60 months) Conformance: the is the extent to which a product meets its specifications – weight, width, power, and size Aesthetics: This is a development of the features element and will not apply to all markets – it is quite subjective Perceived Quality: Overall perception that a person has, this encompasses all attributes above and more. Includes Pre-purchase and post-usefulness.

The difference between TQM and non TQM Companies IBM in Ontario ordered a batch of components specifying an SQL of 3 defective parts per 1000. When the parts arrived from the Japanese manufacturer they were accompanied by a letter which expressed their bewilderment at being asked to supply defective parts as well as good ones. The letter explained that they had found it difficult to manufacture the defective parts , but indeed had. These 3 defective parts per 1000 had been included and were wrapped separately for the convenience of the customer.

Extra Slides

Ishikawa 4 M’s Machines Materials Effect Manpower Methods Lack of maintenance

Quality Circles 5-10 People usually drawn from the same operational area Meet regularly during work time Chaired by a deputy, or foreman Use of SQC methods and problem solving techniques - Brainstorming and goal orientation Future problems - failure mode effects analysis Opportunity for development both formal and through creativity Management must act on recommendations from the group

Kaizen KAIZEN is a Japanese word meaning gradual and orderly, continuous improvement. It is a business strategy involves everyone in an organisation working together to make improvements 'without large capital investments'. KAIZEN is a culture of sustained continuous improvement focusing on eliminating waste in all systems and processes of an organisation. KAIZEN strategy begins and ends with people. Involved leadership guides people to continuously improve their ability to meet expectations of high quality, low cost, and on-time delivery. Source: www.kaizen-institute.com

Kaizen –The Wet Blanket Approach I am too busy to study it It's a good idea, but the timing is premature It is not in the budget Theory is different from practice Isn't there something else for you to do ? I think it doesn't match corporate policy It isn't our business; let someone else think about it Are you dissatisfied with your work ? It's not improvement, it's common sense I know the result, even if we don't do it I will not be held accountable for it Can't you think of a better idea ? Source: www.kaizen-institute.com

Basic tips for Kaizen Activities Discard conventional fixed ideas. Think of how to do it, not why it cannot be done. Do not make excuses. Start by questioning current practices. Do not seek perfection. Do it right away even if for only 50% of target. Correct it right away, if you make a mistake. Do not spend money for KAIZEN, use your wisdom. Wisdom is brought out when faced with hardship. Ask 'WHY?" five times and seek root causes. Seek the wisdom of ten people rather than the knowledge of one. KAIZEN ideas are infinite. Source: www.kaizen-institute.com

Pareto Diagrams Total Number of Problems Class A factors are the 20% of recurring causes resulting in 80% of all quality symptoms - these are critical and must be reduced.

Total Productive Maintenance ‘Prevention rather than cure’ Seri - Sorting Seiton - Orderliness Seiso - Cleaning Seiketsu - Cleanliness

Taguchi Methods Approach pulls quality back to the design stage. Recognizes quality as societal issue as well as an organizational one. Strong on process control