TQM: Customer Focused Quality Feel Free To Contact for more stuff in every kind of Masters Subjects: Naveeddear 0300-4194390

Outline Quality defined Cost of quality Framework for managing total quality Employee involvement Benchmarking Quality certification and awards Implementing TQM TQM and JIT

Total Quality Management Traditional: Establish acceptable quality levels Detect and rework or scrap defects TQM Focus entire company on all aspects of quality, with emphasis on the customer’s perspective The customer is interested in Value, which combines quality and cost

Achieving Total Quality techniques philosophy system

What is Quality? The concept of quality is subjective and difficult to define Certain aspects of quality can be identified Ultimately, the judgement of quality rests with the customer

Quality: Customer’s perspective Quality of design Fitness for use Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived value

Quality: Producer’s Perspective Quality of conformance Satisfaction of requirements or specifications Emphasis on defect detection and defect prevention

Producer’s Perspective Consumer’s Perspective The Meaning of Quality Producer’s Perspective Consumer’s Perspective Quality of Conformance Quality of Design Production Marketing Conformance to specifications Cost Quality characteristics Price Fitness for Consumer Use

Cost of Quality Prevention costs Appraisal costs build it right the first time Appraisal costs inspection and testing Internal failure costs scrap and rework External failure costs warranty claims, recalls, lost business

“Quality is Free” For the average company, the cost of quality is about 25% of total sales The cost of prevention is a fraction of the cost of fixing mistakes after they are made Investments in prevention can drastically reduce the total cost of quality

Three Areas to Improve Quality Quality of design meet the customer’s needs design for manufacturability build quality in Quality of conformance minimize and control process variation to satisfy the design specifications every time Quality of service The customer must come first

Framework for Managing Total Quality Quality must continuously improve TQM involves all parts of the company

TQM Throughout the Company Marketing and sales Feedback on customer wants and needs Finance and accounting Design and manufacturing Product must satisfy customer Design for manufacture Simplify to improve quality Production management, supervisors, line workers

TQM Throughout the Company Purchasing and suppliers Long-term supplier relations based on quality not price Suppliers as part of design team Customer service Satisfy customer Feedback information for improvement

Top Management’s Role Commitment is required

Employee Involvement Give ownership of quality to workers Organize for quality Cross-functional teams Quality circles Process and project-oriented teams Greater customer awareness Train and educate workers Quality skills and tools Importance of TQM

Benchmarking Find the companies with the “best practices” Copy them Improve them

Benchmarking Process Determining what to benchmark Determining what to measure Determining whom to benchmark Collecting data Analysing data Setting goals and action plans Monitoring the action

Quality Certifications ISO 9000 Say what you do, and do what you say QS 9000 More rigorous version adopted by big three automakers and suppliers ISO 14000 Environmental management systems

Quality Awards Malcolm Baldrige Award Canada Award for Business Excellence Japan’s Deming Prize Shingo Prize for Excellence in Manufacturing

Strategic Planning Mission & Vision Business Strategy Marketing Operations Financial Voice of the Business Customer

Policy Deployment Focusing and directing all activities and processes so they support the companies vision, mission and long-term strategy

Policy Deployment Steps Develop a long term vision Determine annual policies to support the long-term vision Deploy the policy company-wide through participation in planning Implement the policy Audit the process and plans monthly Audit the process annually by top management

Policy Deployment

In other words… Make sure everyone understands and supports the company goals Make sure individual and department goals are consistent with company goals Plan ways to achieve the goals Measure the success

TQM and JIT TQM and JIT are consistent, interrelated and interdependent Often they are combined as JIT/TQM