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

2. 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

3. 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

4. (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

5. 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

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

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

8. 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

9. 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

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

11. 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

12. 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.

13. The difference between TQM and non TQM Companies
IBM in Ontario ordered a batch of components specifying an SQL of 3 defective parts per 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.

14. Extra Slides

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

16. 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

17. 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:

18. 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:

19. 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:

20. 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.

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

22. 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