1. Chapter 11
Total Quality
Management
and
Continuous
Improvement

2. Total Quality Management (TQM)
A philosophy that involves
everyone in an organization
in a continual effort
to improve quality
and achieve customer satisfaction.
Customer satisfaction = Perception - Expectation

3. TQM Approach
1. Find out what customers want; survey, interview, focused group
2. Design a product that will meet or exceed what customers want. Make it easy to use and easy to produce.
3. Design a production process that make it possible to do the job right at the first time. Determine where mistakes are likely to occur and try to prevent them. When mistakes do occur, find out why, and try to resolve them in a way that they never occur again. Create a mistake-proof process.
4.Keep track of results, use them to improve other parts of the system. Never stop trying to improve.
5.Extend these concept to the whole supply chain; suppliers and distributors.

4. Elements of TQM
Continual improvement
Competitive benchmarking
Employee empowerment
Team approach
Decisions based on facts
Knowledge of tools
Suppliers quality

5. Continual improvement;
Elements of TQM
Continual improvement;
Improve all factors related to input-process-output.
It covers equipment, material, people, and methods.
Just because there is no problem doesn’t mean it can’t be improved.
Competitive benchmarking;
Identify companies that are best in something.
study what they do, learn how to improve your operations.
Need not to be in the same field, Xerox used a mail order company, to benchmark its order processing.
We could also have internal benchmarking

6. Employee involvement and empowerment;
Elements of TQM
Employee involvement and empowerment;
Responsibility for improvement and authority to make changes provides high motivation in workers.
Personal communication in all levels
Team approach;
Use teams for problem solving.
Take advantage of group synergy.
Promote spirit of cooperation.
Decisions based on facts
rather than opinions
Statistical thinking

7. Elements of TQM Knowledge of tools; Supplier quality;
Pictorial representation
Tabular representation
Simplification
Supplier quality;
Suppliers are an integral part of the TOM.
Make them small in number with full responsibility.
Develop long term relationships.
Eliminate the need to inspect deliveries from suppliers.

8. Kaizen : Continuous Improvement
Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs.
Kaizen: Japanese word for continuous improvement.

9. The PDSA Cycle : The essence of Kaizen
Conceptual basis for process improvement.
Representing the process with a cycle is to show its continuing nature.
If successful communicate
the new methods to all
related employees.
Implement training for
new method.
Plan
Study a current process
Then develop a plan for
improvement
Act
If not successful,
develop a new plan Do
Implement the plan
in small scale ( on a
portion of the system)
Document any change
made during this phase
Study
Evaluate the results.
Check how the results
match the original goals of
the plan

10. The PDSA Cycle
Process Improvement
Problem Solving
Plan
Act Do
Study

11. Process Improvement
Process improvement is a basic tool in CI, It is composed of process mapping, process analysis, and process re-design.
Process mapping; develop a flow chart for the process; show basic steps, inputs and outputs, people involved, decision made, information required, time, cost, space, waste, turnover, quality, morale.
Process analysis; Is the flow logical? is there any missing step? is there any unnecessary and extra step? could it be eliminated? does it add value? is there any waste? can we reduce the time and cost, combine some steps? 5W2H
Process re-design; document the improvements, measure reductions in time, cost, space, waste, …and improvement in quality, morale.

12. Problem Solving
Systematic problem solving is a basic tool in Continuous Improvement. Its steps are as follows
Define the problem and establish an improvement goal
Collect data
Analyze the problem
Generate potential solutions
Choose the preferred solution
Implement the solution
Monitor the solution to see if it accomplishes the goal

13. for the quality of his/her work.
Quality at Source
The philosophy of
making each worker
responsible
for the quality of his/her work.

14. Basic Tools for Process Improvement
Check sheets
Flowcharts
Scatter diagrams
Histograms
Pareto analysis
Control charts
Cause-and-effect diagrams
5W2H

15. Check Sheet
A simple formatted page or a table for record and organize data to
identify and analyze a problem.
Check sheets are designed based on the purpose of the user.
The following format is to identify the number, type, and timing of
error. After recording, then we should study why they happen.
Monday
Billing Errors
Wrong Account
Wrong Amount
A/R Errors

16. Check Sheet
The following format is to identify the location of defects on a
product ( gloves).
After collecting data,
then we should
analyze the reason
for these defects.

17. flowchart A pictorial representation of a process.
Rectangle for processes or procedures, diamond for decisions or check
points, arrows for flow of information or work flow,

18. Scatter Diagram Shows the relationship between two or more variables
# of errors / hr
Humidity

19. Histogram
Histogram is useful in getting a sense of the distribution of the
variable of interest.
Frequency
Repair time

20. Pareto Analysis 80% of the problems may be attributed to 20% of the
Smeared
print
Number of defects
Off center
Missing
label
Loose
Other
80% of the problems may be attributed to 20% of the
causes.

21. Control Chart (SPC)
A statistical chart to see whether a process is in control or not.
It is similar to Tracking Signal.
If the process is in control, then the value of the corresponding
variable is around the mean value with random variations.
If the variable is out of UCL or LCL, then it is out of control.
Also if we could extract a pattern out of it, again it is out of control.
In any of the above cases we should check why the process is
out of control.
970
980
990
1000
1010 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
UCL
LCL

22. Variable Control Chart
Control Chart (SPC)
Variable Control Chart
X-bar Chart
R Chart
Attribute Control Chart
P Chart
C Chart

23. Tracking Improvements
UCL
LCL
Process not centered
and not stable
Process centered
and stable
Additional improvements
made to the process

24. Cause and Effect Diagram
Materials
Methods
Equipment
People
Environment
Cause

25. Cause and Effect Diagram : Flight Departure Delay
Equipment
Personnel
Procedure
Material
Other
Aircraft late to gate
Late arrival
Gate occupied
Mechanical failures
late pushback tug
Weather
Air traffic
Late food service
Late fuel
Late baggage to aircraft
Gate agents cannot process passengers quickly enough
Too few agents
Agents undertrained
Agents undermotivated
Agents arrive at gate late
Late cabin cleaners
late or unavailable cockpit crews
Late or unavailable cabin crews
poor announcement of departures
weight an balance sheet late
Delayed check-in procedure
Confused seat selection
Passengers bypass checkin counter
Checking oversize baggage
Issuance of boarding pass
Acceptance of late passengers
cutoff too close to departure time
Desire to protect late passengers
Desire to help company’s income
Poor gate locations
Delayed
Flight
Departures

26. 5W2H What What is being done? Why Why it is necessary?
Where Where is it being done?
Why it is done there?
Should we do it somewhere else?
When When it is done
Should we do it at another time?
Who Who is doing it?
Could someone else do it better?
How How is it being done?
Is there a better method?
How much How much time does it take?
How much does it cost?
What would the new cost be?