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Part One The Foundations A Model for TQM Week # 1 & 2 Understanding quality Prepared by: Khalid Dahleez Faculty of Commerce the Islamic University of Gaza – PowerPoint PPT presentation

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Title: Part One The Foundations A Model for TQM Week # 1 &


1
Part One The Foundations A Model for TQM
Week 1 2 Understanding quality Prepared by
Khalid Dahleez Faculty of Commerce the Islamic
University of Gaza This material was collected
from different sources
2
Focus on the issues
Be on time
Participate positively
Keep confidences
3
Chapter Outline
  • 1.1 Quality and competitiveness
  • 1.2 Understanding and building the quality chains
  • 1.3 Managing processes
  • 1.4 Quality starts with Marketing
  • 1.5 Quality in all functions

4
What is Quality?
5
1.1 Quality and competitiveness
  • Reputation
  • for quality, reliability, price, and delivery
    all things we compete on
  • Lessons to be learned about reputation from this
    story
  • Competitive elements of quality, reliability,
    delivery, and price.
  • It takes a long time to change the poor
    reputation for quality.
  • Reputations, good or bad, can quickly become
    national reputations
  • The management of the competitive weapons can be
    learned and used to turn round a poor reputation.

6
1.1 Quality and competitiveness
  • What is quality?
  • meeting the customer requirements
  • What is reliability?
  • It is the ability of product and service to
    continue to meet the customer requirements
  • Quality is meeting the customer requirements, and
    this is not restricted to the functional
    characteristics of the product or services.

7
Definition of Quality
  • Quality is also defined as excellence in the
    product or service that fulfills or exceeds the
    expectations of the customer.
  • There are 9 dimensions of quality that may be
    found in products that produce customer-satisfacti
    on.
  • Though quality is an abstract perception, it has
    a quantitative measure- Q (P / E ) ,
    where Qquality, P
    performance(as measured by the Mfgr.), and E
    expectations( of the customer).

8
  • Quality is not fine-tuning your product at the
    final stage of manufacturing, before packaging
    and shipping .
  • Quality is in-built into the product at every
    stage from conceiving specification design
    stages to prototyping testing and manufacturing
    stages.

9
What is Quality
  • FEIGENBAUM (1983) DEFINED QUALITY AS FOLLOWS
  • Quality is total composite product (goods and
    services) characteristics, through which the
    product in use will meet the needs and
    expectations of the customers.
  • Concept of quality must start with identification
    of customer quality requirements and must end
    only when the finished product is placed into the
    hands of the customer who remains satisfied
    through various stages of relationship with the
    seller
  • American Society of Quality Control (ASQC) and
    American National Standard Institute (ANSI)
    defined
  • Quality is totality of features and
    characteristics of product (goods and services)
    that bears on its ability to satisfy given needs

10
Definitions
  • ISO 90002000
  • Quality is the degree to which a set of inherent
    characteristics fulfils requirements.
  • Quantified
  • QP/E P-Performance, E-Expectations
  • Joseph M. Juran Quality is fitness for use or
    purpose

11
Definitions
  • Philips B Crosby

Quality is Conformance to requirements
  • W. Edwards Deming
  • A predictable degree of uniformity and
    dependability
  • at low cost and suited to market
  • Bill Conway
  • Development, manufacture, administration and
    distribution of consistently low cost and
    products and services that customers need and
    want.

12
Approaches to define Quality
  • Transcendent Approach
  • Quality is absolute and universally recognisable.
  • It is common notion used by laymen
  • There is no subjective judgement and is estimated
    by looking at the product
  • Product Based Approach
  • Attributes of a particular product in a specific
    category
  • These attributes are accepted as bench of quality
    by the industry
  • Others in the same industry try to produce close
    to this quality

13
Approaches to define Quality
  • User Based Approach
  • Defined as Fitness for use
  • Viewed from users perspective and is dependent
    on how well does the product meet needs of the
    consumer.
  • Also known as Customer Oriented Approach
  • Production Based Approach
  • An outcome of engineering or operational
    excellence and is measured in terms of quality of
    conformance
  • The producer has specifications and produces the
    product as per the specifications

14
Approaches to define Quality
  • Value Based Approach
  • Quality is viewed in context of price
  • Quality is satisfactory, if it provides desired
    performance at an acceptable price
  • Customer looks at the total value proposition and
    not the price alone

15
Value-based Approach
  • Manufacturing Dimensions
  • Performance
  • Features
  • Reliability
  • Conformance
  • Durability
  • Serviceability
  • Aesthetics
  • Perceived quality
  • Service Dimensions
  • Reliability
  • Responsiveness
  • Assurance
  • Empathy
  • Tangibles

16
Attributes / Dimensions of Quality
  • Performance - main characteristics of the
    product/service
  • Aesthetics - appearance, feel, smell, taste
  • Special Features - extra characteristics
  • Conformance - how well product/service conforms
    to customers expectations
  • Reliability - consistency of performance

17
Attributes / Dimensions of Quality(Contd)
  • Durability - useful life of the product/service
  • Perceived Quality - indirect evaluation of
    quality (e.g. reputation)
  • Serviceability - service after sale

18
Service Quality
  • Convenience
  • Reliability
  • Responsiveness
  • Time
  • Assurance
  • Courtesy
  • Tangibles

19
Examples of Service Quality
20
Challenges with Service Quality
  • Customer expectations often change
  • Different customers have different expectations
  • Each customer contact is a moment of truth
  • Customer participation can affect perception of
    quality
  • Fail-safing must be designed into the system

21
Examples of Quality Dimensions
22
Examples of Quality Dimensions (Contd)
23
Evolution of Quality Management
Total Quality Management
24
Evolution of Quality Management
  • Mass Inspection
  • Inspecting
  • Salvaging
  • Sorting
  • Grading
  • Rectifying
  • Rejecting
  • Quality Control
  • Quality manuals
  • Product testing using SQC
  • Basic quality planning
  • Quality Assurance
  • Emphasis on prevention
  • Proactive approach using SPC
  • Advance quality planning
  • Total Quality Control
  • All aspects of quality of inputs
  • Testing equipments
  • Control on processes

25
Quality Management Evolution
Incorporates QC/QA activities into a company-wide
system aimed at satisfying the customer. (involves
all organizational functions)
Total Quality Management
Proactive Approach
Prevention Stop defects at source. Zero defects
4
Quality Assurance
Planned and systematic actions to insure that
products or services conform to company
requirements
3
Reactive Approach
Operational techniques to make inspection more
efficient to reduce the costs of quality.
(example SPC)
Quality Control
Detection Finding Fixing mistakes
2
Inspection
Inspect products
1
26
The Acceptance Inspection Model
Process
Acceptance Sampling
Inspection
Pass the Inspection?
NO
YES
Reject, Scrap, Rework, Repair
Acceptance
Next Process
27
Quality Control
  • Quality Control (QC) - the operational
    techniques and activities that are used to fulfil
    requirements for quality.
  • The purpose of quality control is to uncover
    defects and have them corrected so that
    defect-free products will be produced.
  • Quality control is limited to looking at products
    .
  • Quality control is testing the final product
    against product quality standards.
  • Quality control is operational techniques that
    are used to fulfill requirements for product
    quality.

28
Quality Control
It is that part of Quality Management focused on
fulfilling requirements of the Customers for the
quality products.
A Simplest Form of Quality Control is-
Requirements
Yes
Conforms
Plan
Check
Do
Remedial Action
No
Product Or Service
Corrective Action
29
Quality Assurance
  • Quality Assurance (QA) - all planned and
    systemic activities necessary to provide adequate
    confidence that a product or service will satisfy
    given requirements for quality.
  • Quality assurance is oriented toward preventing
    defects.
  • It is defined by those activities that modify the
    development processes to prevent the introduction
    of defects.
  • Quality assurance is more concerned with the
    processes that produce the final product, and
    making sure that quality is part of each phase.
  • QA is about maturing the process towards minimum
    defect.
  • It is about balancing methodology, leadership,
    and technology.
  • It is about taking into account human factors
    as well as technological ones.

30
Total Quality Assurance
Total Quality Assurance
Total Quality Management
Total Quality Management
Quality Assurance (Process improvement)
Quality Assurance
Quality Control
Quality Control (Correction of Defects)
Inspection
Inspection (Sorting out good from bad products)
The Phases of Development of Quality Assurance
Systems
31
Evolution of Quality Management
  • Company wide Quality Control
  • Measured in all functions connected with
    production such as
  • RD
  • Design
  • Engineering
  • Purchasing,
  • Operations etc
  • Total Quality Management
  • Measured in all aspects of business,
  • Top management commitment
  • Continuous improvement
  • Involvement participation of employees

32
Evolution of Quality Management
33
TQM Evolution
34
What is Total Quality Management (TQM)?
35
TQM
  • Made up of the whole

Degree of excellence a product or service provides
Art of Planning, Organizing, Controlling etc.
Therefore, TQM is the art of managing the whole
to achieve excellence.
36
Meaning of TQM
All persons
System
Of all divisions
TQM means
At every stratum
MBO, Kaizen, QC Circle, 5S, TPM
Method
SQC,SPC, FMEA, MSA, OEE
Q(Quality)Quality improvement
C(Cost)Cost reduction
D(Delivery)Delivery execution
Purpose
S(Safety)Safety maintenance
M(Morale)Morale boosting
E(Environmental)Environmental protection
37
Definition of TQM
Systematic activities of operating the whole
units of a company effectively and efficiently to
supply goods and services of quality satisfactory
to customers at right time and at right price,
thus contributing to attaining Business
Purposes. TQM is integrated organisational
approach in delighting customers (both internal
and external) by meeting their expectations on a
continuous basis through everyone involved in the
organisation, working on continuous improvement
in all products, services, and processes along
with proper problem solving methodology.
38
Definition of TQM
"TQM is a management approach for an
organization, centered on quality, based on the
participation of all its members and aiming at
long-term success through customer satisfaction,
and benefits to all members of the organization
and to society.
Total Quality Management (TQM) is a management
strategy aimed at embedding awareness of quality
in all organizational processes.
  • Total Quality Management means that the
    organization's culture is defined by and supports
    the constant attainment of customer satisfaction
    through an integrated system of tools,
    techniques, and training. This involves the
    continuous improvement of organizational
    processes, resulting in high quality products and
    services.

39
Whats the goal of TQM?
  • Do the right things right the first time, every
    time.

40
Pillars of TQM
1- Customer Focus Studying customer needs,
gathering customer requirements, and measuring
and managing customer satisfaction. Customer
satisfaction is seen as the company's highest
priority. The company believes that it will only
be successful if its customers are satisfied.
2- Process Management Develop a production
process that reduce the product variations.
Applying the same process the same product
should be produces with the same level of quality
every time. Teams are process-oriented, and
interact with their internal customers to deliver
the required results. Management's focus is on
controlling the overall process, and rewarding
teamwork.
41
Pillars of TQM
3- Employee Empowerment (Human side of Quality)
TQM environment requires a committed and
well-trained work force that participates fully
in quality improvement activities. On-going
education and training of all employees supports
the drive for quality. 4- Continuous
Improvement TQM recognizes that product quality
is the result of process quality. As a result,
there is a focus on continuous improvement of the
company's processes. This will lead to an
improvement in process quality. In turn this will
lead to an improvement in product quality.
Measurement and analysis id the tool that has
been used for that.
42
Pillars of TQM
  • Reduce rework activities ?(Cost
    reduction)
  • Shorter development cycle ?(Cost
    reduction)
  • Increased customer satisfaction ?(Quality
    improvement)

43
TQM six basic Concepts
  • Management commitment to TQM principles and
    methods long term Quality plans for the
    Organization
  • Focus on customers internal external
  • Quality at all levels of the work force.
  • Continuous improvement of the production/business
    process.
  • Treating suppliers as partners
  • Establish performance measures for the processes.

44
Another way to put it
  • At its simplest, TQM is all managers leading and
    facilitating all contributors in everyones two
    main objectives
  • (1) total client satisfaction through quality
    products and services and
  • (2) continuous improvements to processes,
    systems, people, suppliers, partners, products,
    and services.

45
Continuous Improvement versus Traditional Approach
Continuous Improvement
Traditional Approach
  • Customer focus
  • Cross-functional teams
  • Focus on what and how
  • Long-term focus
  • Continuous improvement
  • Process improvement focus
  • Incremental improvements
  • Problem solving
  • Market-share focus
  • Individuals
  • Focus on who and why
  • Short-term focus
  • Status quo focus
  • Product focus
  • Innovation
  • Fire fighting

46
BASIC PRINCIPLES/APPROACHES OF TQM
47
Understanding and building the quality chains
  • A Customers impression of quality begins with
    the initial contact with the company and
    continues through the life of the product.
  • Customers look to the total package - sales,
    service during the sale, packaging, deliver, and
    service after the sale.
  • Quality extends to how the receptionist answers
    the phone, how managers treat subordinates, how
    courteous sales and repair people are, and how
    the product is serviced after the sale.
  • All departments of the company must strive to
    improve the quality of their operations.

48
Understanding and building the quality chains
  • Meeting the customer requirements within the
    organization.
  • Failure (QC manager and others)
  • Failure? not doing it right the first time at
    every stage of the process.
  • Throughout and beyond all organizations
    -manufacturing service- there is a series of
    quality chains of customer and supplier.
  • Quality chains may be broken at any point,
    customer? not satisfied.

49
Understanding and building the quality chains
  • To achieve quality throughout an organization,
    each person in the quality chain must interrogate
    every interface as follows
  • Customers
  • who are my immediate customers?
  • what are their true requirements?
  • how can I measure my ability to meet the
    requirements?
  • Suppliers
  • who are my immediate suppliers?
  • what are my true requirements?

50
Understanding and building the quality chains
  • The concept of internal and external
    customers/suppliers forms the core of total
    quality.
  • Quality has to be managed it will not just
    happen.
  • Failure to meet the requirements in any part of
    quality chain leads to yet more failure.
  • The price of quality is the continual examination
    of the requirements and our ability to meet them?
    continuing improvement philosophy.

51
Customer types
  • External and Internal customers
  • External current, prospective and lost
    customers
  • Internal Every person in a process is a
    customer of the previous operation.( applies to
    design, manufacturing, sales, supplies etc.)
    Each worker should see that the quality meets
    expectations of the next person in the
    supplier-to-customer chain
  • TQM is commitment to customer-focus - internal
    and external customers.

52
Customer/supplier chain

Outputs to external customers
Inputs from external customers
Internal customers
53
Internal customer/Supplier relationships
  • Questions asked by people to their internal
    customers
  • What do you need from me?
  • What do you do with my output?
  • Are there any gaps between what you need and what
    you get?
  • Good team-work and inter-Departmental harmony is
    required. Also the leaders role in supervising
    the internal customer-supplier chain.

54
Internal\External Customers
55
Understanding and building the quality chains
  • Meeting the requirements
  • the first item on the list of things to do is
    find out what requirements are.
  • If we are dealing with a customer/supplier
    relationship, the supplier must understand not
    only the needs of the customer but also the
    ability of his own organization to meet them.
  • Internal supplier/customer relationships are
    often the most difficult to manage in terms of
    establishing the requirements.

56
Customer satisfaction
  • Customer is the Boss or King
  • Customer dictates the market trends and direction
  • Customer not only has needs to be supplied( basic
    performance functions)
  • Also he wants what he wants!( additional
    features satisfy him and influence his purchase
    decision)
  • Hence the Suppliers and Manufacturers have to
    closely follow at the heel of the customer.

57
Customer Satisfaction Organizational Diagram

CUSTOMERS
Front-line Staff
Functional Department Staff
Sr. Mgrs
CEO
58
What is customer satisfaction?
  • Is it due to Product quality?
  • Is it due to pricing?
  • Is it due to good customer service ?
  • Is it due to company reputation?
  • Is it something more?

59
Integrated Quality
60
Understanding and building the quality chains
  • To understand how quality may be built into a
    product or service, at any stage, it is necessary
    to examine the three distinct, but interrelated
    aspects/parameters of quality
  • Quality of Design
  • Quality of Conformance
  • Quality of Use

61
Understanding and building the quality chains
  • Quality of Design Is the extent to which the
    design reflects a products or service that
    satisfies the customer need or expectations.
  • TV chair example
  • Quality of design is a measure of how well the
    product or service is designed to achieve the
    agreed requirements.
  • The most important feature of the design, with
    regard to achieving quality, is the
    specification.
  • Specifications must also exist at the internal
    supplier/customer interfaces.
  • There must be an agreement that the operating
    departments can achieve that requirement.

62
Understanding and building the quality chains
  • Quality of conformance to design Is the extent
    to which the product or service conforms to the
    design standard
  • What the customer actually receives should
    conform to the design.
  • The conformance check makes sure that things go
    according to plan.
  • Organizations may use the simple matrix to assess
    how much time spent doing the right things right.

Things we do
Right
Wrong
X
Right
The way we do them
X
?
Wrong
63
Understanding and building the quality chains
  • Quality of Use
  • Is the extent to which a product is easy to
    use, reliable and maintainable.

64
How Work Gets Done in an Organization?
  • Inputs Delivered by suppliers
  • Processes Steps to transform inputs
  • Outputs Goods and Services valued by customers
  • Quality of outputs depends on the correct
    execution of FIRST two steps. A mistake anywhere
    in the process affects everyone in one way to
    another.

65
Managing processes
  • Have we done the job correctly?
  • This is not quality control, it is detection.
  • This process detection- happens at the end of
    the processes.
  • Are we capable of doing the job correctly?
  • We should realize that an answer will only be
    obtained by means of satisfactory methods,
    materials, equipment, skills and instruction, and
    a satisfactory process.

66
Managing processes
  • What is a process?
  • A process is the transformation of a set of
    inputs, which can include actions, methods and
    operations, into outputs that satisfy customer
    needs and expectations, in the form of products,
    information, services or generally- results.
  • To produce an output meets the requirements, it
    is necessary to define, monitor and control the
    inputs to the process.
  • Every single task throughout an organization must
    be viewed as a process.

67
Managing processes
68
Managing processes
  • If our process is capable of meeting the
    requirements, Do we continue to do the job
    correctly?, this needs to monitor and control
    the process.

69
Managing processes
  • Quality control
  • The activities and techniques employed to achieve
    and maintain the quality of a product, process,
    or service.
  • A set of activities designed to evaluate a
    developed work product.
  • It is concerned with finding and eliminating
    causes of quality problem.
  • Finding defects in specific deliverables.
  • It is product oriented.
  • Focuses on employed activities and techniques.
  • Examples (testing, monitoring, .)

70
Managing processes
  • Quality assurance
  • The prevention of quality problems through
    planned and systematic activities (including
    documentation).
  • A set of activities designed to ensure that the
    development and/or maintenance process is
    adequate to ensure a system will meet its
    objectives.
  • Ensure that the process is defined and
    appropriate.
  • Process-oriented.
  • Aims at preventing quality problems.
  • Examples (development of methodology standards,
    establishment of QMS, ..)

71
Quality starts with Marketing
  • Marketing is responsible for determining the key
    characteristics that determine the suitability of
    the product or service in the eyes of the
    customer.
  • Excellent communication between customers and
    suppliers is the key to total quality.
  • Requirements must be communicated properly
    throughout the organization in the form of
    specifications which can be used as the basis
    for the design .

72
Quality starts with Marketing
  • The information requirements include
  • Characteristics of performance reliability
  • Aesthetic characteristics
  • Any obligatory regulations or standards governing
    the nature of the product or service
  • Marketing must also establish systems for
    feedback of customer information and reaction,
    and these systems should be designed on a
    continuous monitoring.

73
Quality starts with Marketing
  • In reviewing of market readiness of a new product
    or service. Items that require some attention
    include assessment of
  • The suitability of the distribution
    customer-service system
  • training of personnel in the field
  • Availability of spare parts or staff support
  • Evidence that the organization is capable of
    meeting customer requirements

74
User purchase perceptions- from survey
  • Performance
  • Features
  • Service
  • Warranty
  • Price
  • Reputation
    ( refer
    pgs.72 and 73, Besterfield)

75
Customer satisfaction/dissatisfaction feedback
  • Customer feedback has to be continuously sought
    and monitored - not one-time only!( Pro-active!
    Complaints are a reactive method of finding out
    there is a problem)
  • Customer feedback can be relayed to Mfgr.
  • Performance comparison with competitors can be
    known
  • Customers needs can be identified
  • Relative priorities of quality can be obtained
    from the horses mouth!
  • Areas for improvement can be noted.

76
Customer feedback methods
  • Comment cards enclosed with warranty card when
    product is purchased.
  • Customer survey and questionnaire
  • Customer visits
  • Customer focus groups
  • Quarterly reports
  • Toll-free phones
  • e-mail, Internet news groups, discussion forums
  • Employee feedback
  • Mass customization.

77
Customers- Handle with care!
  • Employers dont pay wages but it is the customer
    who pays the wages!
  • So take good care of your customers.
  • Customer-care centers not just profit-centers!
  • The entire organization must in effect revolve
    around the customer whether the customer is
    being well served and if he is really pleased,
    contented and satisfied with the service you have
    to offer.

78
Quality in all functions
  • For an organization to be truly effective, each
    part of it must work properly together.
  • Errors have a way of multiplying.
  • Business employs so many different specialist
    skills that everyone has to rely on the
    activities of others in doing their jobs.
  • The commitment of all members of an organization
    is a requirement of company-wide quality
    improvement.

79
Effects of poor Quality
  • Low customer satisfaction
  • Low productivity, sales profit
  • Low morale of workforce
  • More re-work, material labor costs
  • High inspection costs
  • Delay in shipping
  • High repair costs
  • Higher inventory costs
  • Greater waste of material

80
Benefits of Quality
  • Higher customer satisfaction
  • Reliable products/services
  • Better efficiency of operations
  • More productivity profit
  • Better morale of work force
  • Less wastage costs
  • Less Inspection costs
  • Improved process
  • More market share
  • Spread of happiness prosperity
  • Better quality of life for all.

81
Summary Slide
  • The following Slides are for understanding only
    (subject to indirect Questions)
    26,27,28,29,36,45,54,56,57,58,59,74,75,76,77
  • Other slides are required and subjects to any
    type of Questions
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