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TOTAL QUALITY MANAGEMENT: TQM Origins, Evolution & key elements

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Title: TOTAL QUALITY MANAGEMENT: TQM Origins, Evolution & key elements


1
TOTAL QUALITY MANAGEMENTTQMOrigins,
Evolution key elements
2
What is Quality?
Quality is fitness for use (Joseph
Juran) Quality is conformance to
requirements (Philip B. Crosby) Quality of a
product or services is its ability to satisfy the
needs and expectations of the customer
3
Evolution of Quality Management
Salvage, sorting, grading, blending, corrective
actions, identify sources of non-conformance
Inspection
Develop quality manual, process performance data,
self-inspection, product testing, basic quality
planning, use of basic statistics, paperwork
control.
Quality Control
Quality systems development, advanced quality
planning, comprehensive quality manuals, use of
quality costs, involvement of non-production
operations, failure mode and effects analysis,
SPC.
Quality Assurance
Policy deployment, involve supplier customers,
involve all operations, process management,
performance measurement, teamwork, employee
involvement.
TQM
4
Demings view of a production as a system
Consumer Research
Design redesign
Receipt test of materials
Suppliers, materials equipment
Production, assembly, inspection
Distribution
Consumers
Test of processes, machines, methods, cost
5
Demings Chain Reaction
Improve Quality
Provide jobs and more jobs
Cost decreases because of less rework, fewer
mistakes, fewer delays, snags, better use of
machine time and materials
Stay in business
Productivity improves
Capture the market with better quality and lower
price
6
The Deming Cycle or PDCA Cycle
PLAN
Plan a change to the process. Predict the effect
this change will have and plan how the effects
will be measured
DO
ACT
Adopt the change as a permanent modification to
the process, or abandon it.
Implement the change on a small scale and measure
the effects
CHECK
Study the results to learn what effect the change
had, if any.
7
W. Edwards Demings 14 Points
1)
Create constancy of purpose towards improvement
of product and services. Adopt the new
philosophy. We can no longer live with commonly
accepted levels of delays, mistakes, defective
workmanship. Cease dependence on mass inspection.
Require, instead, statistical evidence that
quality is built in. End the practice of awarding
business on the basis of price tag.
2)
3)
4)
8
W. Edwards Demings 14 Points
5)
Find problems. It is managements job to work
continually on the system. Institute modern
methods of training on the job. Institute modern
methods of supervision of production workers. The
responsibility of foremen must be changed from
numbers to quality. Drive out fear that everyone
may work effectively for the company.
6)
7)
8)
9
W. Edwards Demings 14 Points
9)
Break down barriers between departments. Eliminate
numerical goals, posters and slogans for the
workforce asking for new levels of productivity
without providing methods. Eliminate work
standards that prescribe numerical quotas. Remove
barriers that stand between the hourly worker and
his right to pride of workmanship.
10)
11)
12)
10
W. Edwards Demings 14 Points
Institute a vigorous programme of education and
retraining. Create a structure in top management
that will push everyday on the above 13 points.
13)
14)
11
Demings System of Profound Knowledge
Knowledge about variation
Appreciation for system
Theory about knowledge
Knowledge of psychology
12
Joseph M. Juran and the Cost Of Quality
2 types of costs Unavoidable Costs preventing
defects (inspection, sampling, sorting,
QC) Avoidable Costs defects and product failures
(scrapped materials, labour for re-work,
complaint processing, losses from unhappy
customers
Gold in the Mine
13
Joseph M. Juran and the Cost Of Quality
Costs
Total Costs
Unavoidable costs
Avoidable costs
100 defective
Point of Enough quality
14
What is TQM?
Concern for employee involvement and development
Management by Fact
Constant drive for continuous improvement and
learning.
Organisation response ability
Passion to deliver customer value / excellence
Result Focus
Partnership perspective (internal / external)
Actions not just words (implementation)
Process Management
15
LEARNING AND TQM
Learning
Process Improvement
Quality Improvement
16
BASIC PRINCIPLES OF TQM
17
FOUR KEY PRINCIPLES
  • Measure quality so you can affect it
  • Focus on a moving customer
  • Involve every employee
  • Think long term - Act short term

18
THE CASE FOR QUALITY
1 Success of competitors who take quality
seriously
2 Rising expectations of
customers 3 Quality differentiates companies
from the competition 4 Narrowing of
supplier bases by quality conscious
companies .
19
THE CASE FOR QUALITY
5 Growing evidence that growth in market
share comes from sustained quality. 6 Cost
advantages 7 High cost of catastrophic
failure 8 Inspection poor substitute for right
first time
20
SEVEN DEADLY SINS OF TQM
  • Flight to nowhere
  • One size fits all
  • Substituting TQM for leadership
  • Inside - Out indicators
  • Mandatory religion
  • Quality kept as a separate activity
  • Teaching to the test

Booz-Allen Hamilton
21
IS QUALITY A SOUND INVESTMENT?
Year Company Stock Growth (Oct
94) 1988 Motorola 373.0 1988 Westing
house (CNFD) - 49.6 1989 Xerox
(BPS) 75.9 1990 General Motors
1.6 1990 Federal Express
10.6 1990 IBM (IBM Rochester) -
34.9 1991 Selectron
526.9 1992 ATT (UCS)
32.2 1992 ATT (TSBU)
32.2 1992 Texas Instruments (DSE)
106.8 1993 Zyta
8.4 1994 Eastman Chemical
18.5 Total Stock Value 23016 (91.8
growth) Standard Poor 500 Stock value 15911
(32.6 growth) Source US Dept. of Commerce
Study 1995
22
Project Quality Assurance Project Quality
Plan PQP
23
Project Quality Plan
  • Definition
  • The project quality plan is a documented
    description of the project management system and
    must be approved by the AEM, in part to
    demonstrate his commitment to quality but
    primarily it is the means by which technical and
    administrative authorities are delegated through
    out the project.
  • All projects shall have quality plan.
  • Project engineer shall develop and update the
    PQP.
  • .

24
Relationships between project quality plans
PQP ADCO
PQP Designer
PQP construction contractor
Suppliers quality plans
25
Preparation of a project quality plan
26
CONTENTS OF TYPICAL PROJECT QUALITY PLAN
  • 1. COVER SHEET REVISION CONTROL
  • 1.1 Document purpose
  • 1.2 Policy statement
  • 2.INTRODUCTION
  • 2.1 Background
  • 2.2 Project Scope
  • 2.3 Project Objectives Constraints
  • 2.4 QA Standards (Consider putting in Document
    purpose)

27
CONTENTS OF TYPICAL PROJECT QUALITY PLAN
  • 3. EXECUTION STRATEGY
  • 3.1 Project Management risks.
  • 3.2 Critical Activities.
  • 3.3 Control Strategy.
  • 3.4 Cost Schedule.
  • 3.5 HSE Plan.
  • 3.6 Commissioning Hand-over.

28
CONTENTS OF TYPICAL PROJECT QUALITY PLAN
  • 4.ORGANISATION, RESPONSIBILITES INTERFACES
  • 4.1 Table with names
  • 4.2 External interfaces
  • 4.3 Definition of specific roles and
    responsibilities.
  • 5. QUALITY REFERENCE SYSTEM
  • 5.1 Controlling Documents
  • 5.2 Applicable Procedures (Check list based)
  • 6. INTEGRATION OF CONTRACTORS SUPPLIERS
  • 6.1 Define Contractor interfaces.
  • 6.2 Contractor Supplier Quality System.

29
CONTENTS OF TYPICAL PROJECT QUALITY PLAN
  • 7.AUDITS REVIEWS
  • This section should include schedule for
  • PHSER HSEIA
  • HAZOP VE
  • TECHNICAL REVIEWS QA AUDITS
  • LESSONS LEARNT REVIEW.
  • 8. QUALITY IMPROVEMENT
  • 8.1 LESSONS LEARNT
  • 8.2 CLOSE-OUT REPORT

30
CONTENTS OF TYPICAL PROJECT QUALITY PLAN
  • PREPARATION APPROVALS
  • PREPARE PE, PM and / or Team Leaders
  • ENDORSE AEM
  • APPROVE EPM
  • Timing
  • The nominated PE, PM or Team leader shall
    develop the PQP
  • immediately after receiving the PID document and
    approval of the
  • project in the Business Plan.

31
Quality is a Journey, not a Destination
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