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Total Quality Management


Process Variation Exercise. Total Quality Management ... 6.0 Process Management (100) 7.0 Business Results (450) Business Results (450) ... – PowerPoint PPT presentation

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Title: Total Quality Management

Total Quality Management
  • TQM
  • Deming, Crosby, Juran
  • TQM Tools and Techniques
  • Case 7.1
  • Process Variation Exercise

Total Quality Management
  • The integration of all processes and functions of
    the firm in the task of ensuring a products
    quality throughout its life cycle.
  • Measurement of Success
  • 100 Customer Satisfaction
  • Method of Achievement
  • Continuous Improvement

Key Issues in TQM
  • Requires a cultural change based on a management
    philosophy of meeting customer requirements
    through continuous improvement.
  • Delco - lip service
  • GM - more work for same pay
  • Top Management must support TQM

TQM MGT Statistics
  • Top managers serve as role models
  • Use of quality processes and tools
  • Encourage communication
  • Put money where mouth is
  • invest in training
  • rewards

Mechanisms of Change
  • Training
  • Communications
  • Recognition
  • Teamwork
  • Customer Satisfaction Programs

Axioms of TQM
  • Commitment to Quality
  • Extensive Use of Scientific Tools, Technologies
    and Methods
  • Total Involvement in the Quality Undertaking
  • Continuous Improvement

Demings Deadly Sins
  • Lack of Constancy
  • Concentration on Short-Term Profits
  • Over-reliance on Performance Appraisals
  • Job Hopping
  • Overemphasis on Visible Figures

  • Defined Quality and Cost of Quality
  • Quality Habit
  • Quality Trilogy
  • University Breakthrough Sequence

Deming vs. Juran
Crosbys Absolutes for Quality Management
  • Quality is Conformance to Requirements, Not
  • Quality Systems Amount to Prevention
  • Zero Defects Define the Performance Standard
  • Measurement of Quality is the Price of

TQM Process Tools
  • Check Sheets
  • Pareto Analysis
  • Cause and Effect (Fishbone) Diagrams
  • Process Flow Diagrams
  • Histograms
  • Process Capability Measures
  • Control Charts
  • Scatterplots
  • Plan-Do-Check-Act Cycles
  • Brainstorming

Process Capability Measure Cp
  • Cp Specification width / Process width
  • An indication of the variability of a process
  • Specification width (S) the interval between
    the lower and upper limits on performance data
    for a product or process
  • Process width (P) the interval between the
    lower an upper ends of the distribution of
    process performance data
  • In general - larger Cp indicates a more reliable
    and predictable process

Process Capability Measure Cpk
  • Adjusts for any difference between the center of
    a distribution and the midpoint of the
  • Cpk (1-K)Cp, where K absD-Xbar/(S/2)
  • 1- (absD-Xbar/(S/2)S/P
  • D the design center of the specification
  • Xbar process average
  • Effectively measures both variability and
  • High Cpk indicates low variance and a properly
    centered distribution of performance data

TQM Design Tools
  • QFD
  • House of Quality
  • Concurrent Engineering
  • Hoshin Management

TQM Design Tools QFD
  • Quality Function Deployment - a set of methods to
    identify all of the major requirements of a
    firms customers and to evaluate how well the
    designs of product and OM processes meet or
    exceed those requirements
  • QFD links four matrices
  • 1. Customer requirements planning matrix
  • 2. Technical features deployment matrix
  • 3. Process plan and quality control charts
  • 4. Translate critical process and product
    parameters into specifications for operations for
    plant personnel

TQM Design Tools House of Quality
Technical Features
Voice of the Customer
Relationship between Customer Desired Traits and
Technical Features
Importance of Traits to Customer
Assessment of Competition
Importance of Technical Features
TQM Design Tools House of Quality Steps for
  • 1. Identify Customer Attributes
  • 2. Identify Supporting Technical Characteristics
  • 3. Correlate Customer Attributes with Supporting
    Technical Features
  • 4. Assign Priorities to Customer Requirements and
    Technical Features
  • 5. Evaluate Competitors Stances and Products
  • 6. Identify Technical Characteristics to Deploy
    in the Final Product Design

TQM Design Tools Hoshin Management
  • Work towards dramatic, strategic breakthroughs
    for the organization
  • 5 Key principles
  • 1. A planning and implementation process is
    defined to foster continuous improvement
    throughout the PDCA cycle
  • 2. Identify key functions and systems within the
    firm that need to be improved for the firm to
    achieve its strategic objectives
  • 3. It encourages appropriate cross-functional and
    vertical participation in planning to execution
    for achieving yearly objectives
  • 4. All planning and execution are based on fact
  • 5. Goals and action plans reflect the true
    capabilities of the organization

Implementing TQM
  • Define the mission
  • Identify the system output
  • Identify customers
  • Determine customer requirements
  • Develop a customer specification that details
    customer requirements and expectations.
  • Determine the activities required to fulfill
    customer requirements and expectations

TQM Implementation
  • Baldrige Award initiated in 1987
  • Sets a national set of standards that can be used
    as a benchmark for TQM.
  • Hundreds of thousands of major firms use the
    Baldrige criteria as a guide for quality
    improvement programs.
  • A formula or template for TQM

Baldrige Award
  • not a contest
  • not prescriptive
  • not a guarantee of high quality
  • Customers dictate it
  • Formalized system in place
  • not a contest
  • not prescriptive
  • not a guarantee of high quality

Baldrige Award
  • To raise the consciousness of U.S. business
    leaders regarding the issue of quality.
  • To provide a comprehensive framework for
    measuring the quality efforts of U.S.
  • To provide U.S. business with a template for a
    thorough TQM system.

Baldrige Award
  • Winners include
  • Motorola (1988)
  • Xerox (1989)
  • Wallace Company (1990) defunct
  • It takes 8 to 12 years to develop a quality
    system that is competitive for the award

Baldrige Award 7 Categories
  • 1.0 Leadership (110)
  • 2.0 Strategic Planning (80)
  • 3.0 Customer and Market Focus (80)
  • 4.0 Information and Analysis (80)
  • 5.0 Human Resource Development (100)
  • 6.0 Process Management (100)
  • 7.0 Business Results (450)

Business Results (450)
  • Customer Satisfaction Results (130)
  • Financial and Market Results (130)
  • Human Resource Results (35)
  • Supplier and Partner Results (25)
  • Company Specific Results (130)

Quality Function Deployment
  • Incorporate the voice of the customer into the
    design process.

ISO 9000
  • A generic term for a series of standards
    sponsored by the Organization for
  • Specifies the quality systems to be established
    by manufacturing and service firms.
  • A system for establishing, documenting, and
    maintaining a system for ensuring the quality of
    the output of a process.

ISO 9000
  • Certification represents a commitment
  • Certification is by facility
  • review the facility,s quality manual
  • audit the facilitys process
  • unannounced audits
  • annual re-certification

ISO 9000
  • Means of gaining access to EC markets
  • Competitive requirement
  • Customers dictate it
  • Formalized system in place
  • not a contest
  • not prescriptive
  • not a guarantee of high quality

  • Baldrige - You have to demonstrate results and
  • ISO - just looks for a system
  • Both are stepping stones to becoming a TQM