1. Total Quality Management
Operations Management
Quality
&
Total Quality Management

2. ? Quantitative requirements between supplier and customer Supplier
Due date
same
Due date
Cost
Profit
Cost
Colour
Colour ?
Shape
Shape
Weight
Weight
Noise
Noise
Touch
Touch

3. Who is really your customer?
Ταξινόμηση πελατών/καταναλωτών
Who is really your customer?

4. Customer Satisfaction: Integration
Company’s
processes
Human
resources
Customer’s
expectations
Customer satisfaction

5. Definition of Quality
QUALITY: Conformance to requirements
If a RR conforms to all requirements of a RR, then it is a quality car.
If a SKODA car conforms to all requirements of a SKONDA, then it is a quality car.

6. Definition of Quality CROSBY:
“Don’t talk about poor quality or high quality. Talk about conformance and
non-conformance.”
FEIGENBAUM :
"The total composite product and service characteristics of marketing, engineering, manufacturing and maintenance through which the product or service in use will meet the expectations of the customer."
JURAN:
"Quality is fitness for purpose or use.”
DEMING
Satisfying customer’s needs.
TAGUCHI
The loss which is imparted by the product or service to society from the time is created.
Be aware: requirements, purpose or use means those of the CUSTOMER

7. Managing Quality: GARVIN, D (1988)
the transcendent approach – a quality watch is a Rolex
the manufacturing based approach [free of errors, confirming precisely to design specs] – a watch though not the “best” available is defined as a “quality” product provided it has been built or delivered precisely to its design specs
the user-based approach [fit for its purpose] - a watch that is manufactured precisely to its design specs yet fails to pieces after 2 days is clearly not “fit for its purpose”
the product-based approach [precise and measurable set of characteristics] – a watch may be designed to run, without the need for servicing, for at least 5 years while keeping time correct to within 5 seconds
the value-based approach [cost & price] – compromise quality for price

8. Important as they affect the company’s profitability
Quality Costs
Important as they affect the company’s profitability
Quality Costs range between 10 – 20 % of sales (1985 study)
Quality Costs range between 4– 20 % of sales (Montgomery, 1996)
Crosby recommends that a proper managed quality <2.5%
sales (1979)
FEIGENBAUM’S 'HIDDEN PLANT‘
15-40% of resources producing scrap, re-work, detecting defects, replacing faulty products

9. Internal Failure Costs
Costs of Quality
External Failure
Costs
Appraisal Costs
Prevention Costs
Internal Failure Costs
Costs of
Quality

10. Conventional Quality Management (detection)
A conventional Quality Organization will include two sections:
Quality Assurance
Quality Control
Quality Assurance:
Quality Planning: - What features should be inspected
- Who should carry out the inspection
- When the inspection should be made
- What equipment should be used
- 100 % or sampling inspection
Failure Analysis: - Investigation of the causes of failure (i.e. failure due
to the design of the product/service or due to the
process, which produces it)
- What should be done in the event of non-conformance
(scrap or re-work?)
Vendor Appraisal:- Assessment of suppliers, materials & services

11. Conventional Quality Management (detection)
A conventional Quality Organization will include two sections:
Quality Assurance
Quality Control
Quality Control
Inspection: Inspection of
- incoming materials/services
- in process work, and
- final product to establish whether or not they
conform to requirements
Recording : - Compilation of numbers (statistics) indicating non-
conformance rates and trends
- Communication of the findings to key personnel

12. Total Quality Management (prevention)
Features commonly found in TQM programmes
TOTAL means that the idea of continuous improvement applies to all personnel (and not to QA or QC)
KAIZEN which refers to a concern for the quality of people’s lives and focuses on improvements resulting from an EDLESS series of small changes, directed towards the elimination of waste in all its forms.
CUSTOMER FOCUS
- external customer focus approach in quality (i.e. what the external customer perceives as quality)
- each individual is encouraged to identify his internal suppliers and customers
TRAINING is a major feature in moving to a TQM culture (firstly change the “mind-set” approach and then introduce the relevant tools and techniques)
LEADERSHIP “walk as you talk”

13. Total Quality Management (prevention)
Whole operation involved
Involves customers & suppliers
Staff empowerment
Quality strategy
Teamwork
Quality systems
Quality costing
Quality planning
TOTAL QUALITY MANAGEMENT
QUALITY ASSURANCE
QUALITY CONTROL
INSPECTION
Statistical methods
Process performance
Quality standards
Error detection
Rectification
(επανόρθωση)

14. Quality Guru W. DEMING - management comes before technology
- emphasizes the role of statistical and qualitative methods
J. JURAN - stresses the role of internal and external customer
- management involvement & commitment are stressed
A. FEIGENBAUM - emphasis on the importance of management
- promotes participation by all staff
P. CROSBY - clear methods which are easy to follow
- worker participation is recognized as important
K. ISHIKAWA - strong emphasis on the importance of people
- introduces the idea of quality circles management
G. TAGUCHI - strong on process control

15. A strategy for creative problems solving comprises the
TQM Tools & Techniques
A strategy for creative problems solving comprises the
following 6 steps:
Understand the “mess”
Find the facts
Identify specific problems
Generate ideas
Develop solutions
Implementation

16. TQM Tools & Techniques TOOLS:
Process flowcharts - Understand the “mess”
Check sheets - Find the facts
Histograms - Identify specific problems
Pareto analysis - Identify specific problems
Ishikawa - Generate ideas
Scatter diagram - Develop solutions
Control charts - Implementation
Poka Yoke – Failsafe measure
Quality circles

17. Quality Circles & Quality Improvements
TQM Tools & Techniques
Quality Circles & Quality Improvements
Credited to Ishikawa in the early 1960s based on Japanese culture
Small group of (~8) workers from the same work area
Membership is voluntary
Group (and not management) is responsible for choosing the problem to be worked on
Management fully supports Q circles.
BENEFITS
It replaces the adversarial relationship between management and workers with trust and co-operation
Increases employee morale and commitment to the goals of organization
Improves quality and productivity by fostering improvement and innovation
Reinforces the message that workers themselves should be responsible for the quality of their own work

18. Quality Circles & Quality Improvements
TQM Tools & Techniques
Quality Circles & Quality Improvements
PROBLEMS
Workers tend to believe that they are ideas not relevant to their way of working
Western management cannot accept that workers can take decisions for the company-future (while in Japan all good ideas are welcomed wherever they come from)
Workers believe that quality circles are a management tool to make people work more for the benefit of the company and for theirs.
Western workers see quality circles as an addition work for which they must be paid (not only for the participation but for the contribution of their ideas)

19. Quality Standards and Awards
ISO 9000
Based on UK’s BS 5750 series for quality systems
Published by the International Organization for Standards in 1987
Adopted by the EU in 1992 for the eradication of trade barriers among member countries
More than 250,000 around the world have become accredited.
Initially comprised five individual standards ISO 9000 – ISO 9004
1. ISO 9000: It provides an overview of the purpose and content of the series + guidance for the selection of rest
2. ISO 9001: Quality assurance model for organizations engaged in production, product design, development, testing, inspection, installation and service
3. ISO 9002: Quality assurance model for organizations engaged in production, testing, inspection, installation and service to customers’ specs
4. ISO 9003: Quality assurance model for organizations engaged in testing and inspection
5. ISO 9004: It provides guidance for internal use on how to facilitate the specs contained in ISO

20. Quality Standards and Awards
ISO 9000
REVESION: December 2000
ISO 9000:2000
ISO 9001: revised - core
ISO 9004: revised
ISO 9002: abandoned
ISO 9003: abandoned.
Revision changed from “procedure” focus to “business process” focus
Many of the themes of TQM were incorporated
The “voice of the customer” is an integral part of the standard
The 20 elements of the original standard have now been replaced by 4 sections:
- management responsibility
- resource management, product
- service realization
- measurement, analysis, improvement

21. Quality Awards THE DEMING PRIZE – JAPAN
Started in 1951 and opened to non-Japanese in 1984
It has 10 major criteria
Any employee can question a submission
Objective being to establish that the quality process is firmly established that improvement will continue long after the award
No restriction to the number of awards given but quite hard to get it
THE MALCOM BALDRIGE NATIONAL QUALITY AWARD – USA
Established in 1987 as a result of the country’s failing productivity and quality performance
Based on Deming prize
Small number applies as the requests and criteria are very tough
Some are using the guideline documentation as the basis to evaluate their existing quality systems and for designing and implementing TQM programmes.

22. Quality Awards
THE EUROPEAN QUALITY AWARD – EUROPE
Established in 1991 by the European foundation for Quality management
Award open to any company with at least 50 % of its business operation in W. Europe and has been operating there for at least 5 years
Awarded to the companies that best demonstrate:
- how TQM has improved customer satisfaction,
- employee well-being, and
- service to other stakeholders.
In Sept. 2000, it was awarded for the first time to a public sector organization (UK, Scotland)