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Quality Management


... were more than 510,616 businesses certified in 161 countries. ... Magazine: http://www.qualitymag.com/CDA/ArticleInformation/news/news_item/0,6407,1195 29,00.html ... – PowerPoint PPT presentation

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Title: Quality Management

Quality Management
  • TQM, Six Sigma, ISO

  • Quality is concerned with quality assurance and
    process improvement in manufacturing and service
    sectors (including the public sector).
  • the use of sound measurement methods, statistical
    analysis and process improvement techniques to
    significantly improve quality on the shop floor
    and in manufacturing and service (etc) planning.

Quality management
  • Quality management is concerned with compliance
    with quality standards, certification and

Total Quality Management - TQM
  • popular "quality management" concept.
  • assuring product or service quality.
  • business philosophy - a way of doing business.
  • describes ways to managing people and business
    processes to ensure complete customer
    satisfaction at every stage.
  • often associated with the phrase - "doing the
    right things right, first time".

Main features of TQM
  • views quality entirely from the point of view
    of the customer.
  • All businesses have many types of customer.
  • customer can be someone "internal" to the
    business (e.g. a production employee working at
    the end of the production line is the "customer"
    of the employees involved earlier in the
    production process).

  • customer can also be external to the business.
  • normal customers.
  • When you fly with an airline you are their
  • When Tesco's buys products from food
    manufacturers, it is a customer.
  • TQM recognises that all businesses require
    "processes" that enable customer requirements to
    be met.

TQM focus...
  • TQM focuses on the ways in which these processes
    can be managed - with two key objectives
  • 1 100 customer satisfaction
  • 2 Zero defects

Importance of Customer - Supplier Relationships -
Quality Chains
  • TQM focuses on importance of relationship between
    customers (internal and external) and supplier.
  • These are "quality chains which can be broken at
    any point by one person or one piece of equipment
    not meeting the requirements of the customer.
  • Failure to meet requirements in any part of
    quality chain multiplies, and failure in one part
    of system creates problems elsewhere, leading to
    yet more failure and problems, and so the
    situation is exacerbated.

  • ability to meet customers (external and
    internal) requirements is vital.
  • To achieve quality throughout organisation, every
    person in quality chain needs training to ask
    following questions about every customer-supplier
  • Customers Who are my customers? What are
    their real needs and expectations? How can I
    measure my ability to meet their needs and

  • Do I have the capability to meet their needs
    and expectations? (If not, what must I do to
    improve this capability?)
  • Do I continually meet their needs and
    expectations? (If not, what prevents this from
    happening when the capability exists?)
  • How do I monitor changes in their needs and

  • Who are my internal suppliers? What are my
    true needs and expectations? How do I
    communicate my needs and expectations to my
    suppliers? Do my suppliers have the capability
    to measure and meet these needs and
    expectations? How do I inform them of
    changes in my needs and expectations?

Main Principles of TQM
  • The main principles underlying TQM are summarised
  • Prevention Prevention is better than cure. In the
    long run, it is cheaper to stop products defects
    than trying to find them
  • Zero defects The ultimate aim is no (zero)
    defects - or exceptionally low defect levels if a
    product or service is complicated
  • Getting things right first time Better not to
    produce at all than produce something defective

  • Quality involves everyone Quality not just
    concern of production or operations department -
    involves everyone, including marketing, finance
    and human resources
  • Continuous improvement Businesses always
    looking for ways to improve processes to help
  • Employee involvement Those in production and
    operations have vital role to play in spotting
    improvement opportunities for quality and
    identifying quality problems

Introducing TQM into a Business
  • TQM not an easy concept to introduce into
    businesses - particularly those not traditionally
    concerned with understanding customer needs and
    business processes.
  • In fact - many attempts to introduce TQM fail!
  • One of reasons for challenge of introducing TQM
    is that it has significant implications for the
    whole business.

Involvement, but...
  • For example, it requires that management give
    employees a say in the production processes that
    they are involved in.
  • In a culture of continuous improvement, workforce
    views are invaluable.
  • The problem is - many businesses have barriers to
  • For example, middle managers may feel that their
    authority is being challenged.

  • So "empowerment" is a crucial part of TQM.
  • The key to success is to identify the management
    culture before attempting to install TQM and to
    take steps to change to the new required
    management style.
  • Since culture is not the first thing that
    managers think about, this step has often been
    missed or ignored with resultant failure of a TQM

TQM focus...
  • TQM also focuses the business on the activities
    of the business that are closest to the customer
    - e.g. the production department, the employees
    facing the customer.
  • This can cause resentment amongst departments
    that previously considered themselves above the
    shop floor.

  • The American Society for Quality (ASQ) is an
    association for quality professionals.
  • The organization focuses on customer
    satisfaction, root cause analysis and continual
  • The organization teaches the importance of stable
    top management support to drive continual
  • They are pushing Six Sigma and ISO 9000

  • ASQ membership steeply rose from 1984 to 1995.
  • during the Total Quality Management (TQM)
  • Times have changed, and the TQM movement probably
    does not fit anymore,
  • but the ideas generated by the quality
    visionaries are timeless

ASQ focus...
  • ASQ has a manufacturing focus
  • It has developed programs to deploy quality in
    the healthcare industry with great success.
  • Other areas such as engineering, project
    management, marketing and customer support offer
    opportunities for ASQ

ISO 9000
  • ISO 9000 is the international standard for
    quality management,
  • It is becoming a worldwide standard.
  • December 2001 there were more than 510,616
    businesses certified in 161 countries.
  • The 10 industrialized nations accounted for
    nearly 62 of that total

ISO 9000 certification
  • Certification/registration takes place when an
    independent and competent body certifies that a
    product, process, service or system conforms to
    specific requirements.
  • With ISO 9000, registration and certification are
    used interchangeably, and bodies that issue
    conformity certificates are referred to as
    registrars in the USA, and elsewhere as
    certification or registration bodies.

ISO 9000 registration
  • Since the registrar is independent of both the
    organization seeking certification (the first
    party) and its customers (second parties),
  • the registration process is known as third-party
  • and its value is based on the proven competence
    of the registrar.

Known brands...
  • multinational organizations normally prefer known
    brand names such as Bureau Veritas (France),
    Lloyd's Register (UK), SGS (Switzerland), T
    (Germany) or American National Standards
    Institute (United States)
  • smaller companies may prefer local registrar,
    able to provide a more personalized service.
  • organizations shopping for a registrar should
    consider the following factors

Factors in choosing a registrar
  • Price. Some registrars base their rates on the
    organization size while others may charge a daily
  • Location. Registrar located close to the
    organization preferred to a distant registrar.
  • Compatibility. Is registrar familiar with nature
    of organization's business and comfortable with
    its culture?

Prior to Audit
  • prior to an on-site audit
  • a review of the company's quality manual to see
    whether it meets requirements.
  • Organisations need to ensure any issues raised by
    the auditor are addressed by either changing
    procedures or documents
  • Preassessment. Organisation pays for practice
    audit. Registrar can be directed to areas that
    the company wants covered to address potential
    weak points.

European and US documentation
  • European documentation procedures tend to be more
    elaborate, so organisations spend more, on
    average, on ISO 9000 implementation than American
  • Approx 3 times more?
  • For many years, the Japanese evinced little
    interest in ISO 9000 registration, preferring the
    total quality management (TQM) approach with a
    focus on continuous improvement.

Revised ISO 9000
  • ISO's revised ISO 9000 2000 incorporated TQM
    principles and is changing the thinking process.
  • Intended to be applicable to all organizations,
    regardless of type, size or product category.
  • Is a move from conformance thinking to
    performance thinking.
  • Old standard presence of 20 elements was
    evaluated now it must be determined whether the
    processes are effective.

ISO and Deming
  • It has been recommended that companies use Dr. W.
    Edwards Deming's built-in "plan-do-check-act"
    cycle in the procedure
  • to establish a plan and then take corrective
    measures when quality results such as warranty
    costs or defects exceed set objectives.
  • Thus, the standard is moving organizations toward
    Japanese-style continuous improvement.

Measuring customer satisfaction
  • Another requirement is measuring customer
  • Most US companies developing questionnaires to
    assess whether customers are satisfied with
    products and services.
  • European registrars are wary of paperwork created
    by questionnaires, and some prefer instead to
    develop a set of indices to measure customer

Objective evidence
  • "I just need objective evidence that customers
    have processes for assessing customer
    satisfaction, even if it means that they just
    record telephone calls made to customers,
    Cwiekowski, Great Western Registrar LLC
  • 90 of registered companies indicated they would
    make the transition to ISO 9001 2000 before the
    December 2003 deadline.

Malcolm Baldrige National Quality Award
  • the Baldrige Program has produced a widespread
    positive impact on the quality performance of
    U.S. companies.
  • The quality literature-- for example, J.M. Juran
    -- feel that the criteria used for judging the
    Baldrige competition have become the leading
    model defining the concepts of continuous
    improvement and total quality management (TQM).

Baldrige criteria
  • the Baldrige criteria are widely used by
    companies nationwide to conduct self-audits, and
    to develop and guide their own TQM policies,
  • whether they enter the competition or not.
  • Been nearly two million requests for Baldrige
    application forms and criteria.

Successful companies tactics
  • With a focused, rapid deployment of a Six Sigma
    plan, a major (US) financial services company was
    able to save 75 million in productivity
    benefits, reduce customer complaints by 29 and
    increase stock value by 52.

Leading companies...
  • Leading companies establish internal quality
    awards to promote the benchmarking function.
  • For example, one company honours an employee
    annually with its Quality Award.
  • Recipients receive a celebration within their

Top companies
  • Top companies divide benchmarking data according
    to audience.
  • For example, a leading telecom equipment
    manufacturer separates benchmarking information
    into administrative and technical categories.
  • The administrative information is then posted on
    internal electronic message boards, whereas the
    technical information is more specifically
    targeted to key stakeholders.

The quality journey...
  • The great leaders of the quality revolution of
    the 1980s focused on improving the
    competitiveness of American organizations and did
    all they could to spread the word.
  • Many companies start a quality journey by
    latching onto a quality trend.
  • Such as TQM

Quality trends, circles, ISO, ...
  • Quality trends part of US business culture.
  • But...
  • Quality circles, total quality management (TQM),
  • ISO, QS, Baldrige and now Six Sigma,
  • have all had their day as the quality solution.
  • Employees are tired of this years solution.
  • Quality programs constantly change.

  • Difficult to develop quality system that can show
    significant resultsand without significant
    results, management loses support from employees.
  • This is the case with Six Sigma, as with all
    previous repackaged quality programs

Quality-improvement methods and techniques
  • There are tried-and-true quality-improvement
    methods and techniques
  • Companies need to make them a part of the
    companys culture and stay focused on the tasks
    that lead to a healthier business, not the
    certificate on the wall or the colour of the

Taguchi the Loss Function.
  • Quality is the gap between how good something is
    and how good it possibly could be,
  • and we should continually focus on narrowing that
  • the state of the quality profession is there a
    gap between what quality professionals are
    contributing and what they could be contributing
    to their organizations ?

Quality gap...
  • focus of quality movement shifted away from the
    great quality visionaries.
  • in their place is inappropriate level of
    attention to things such as ISO
  • -- marketing driven, time consuming standard
    doing poor job assuring that companies meet a
    relatively low quality hurdle.
  • Has quality profession evolved from being change
    agents to compliance officers?

Any Questions
  • Taken from
  • Quality Initiatives Increase Savings, Quality
    Magazine http//www.qualitymag.com/CDA/ArticleInf
  • About Quality, Quality Magazine http//www.qual
  • Probing the Limits Could Deming Have Been
    Wrong? , Quality Magazine http//www.qualitymag
  • Six Sigma? No Thanks, Quality
    Magazine http//www.qualitymag.com/qty/cda/artic
  • Probing the Limits Wake Up ASQ!, Quality
    Magazine http//www.qualitymag.com/qty/cda/arti
  • ISO 9000 for a Small Planet, http//www.quality
  • No Respect, Quality Magazine http//www.qualit
  • Still Passionate for Quality?, Quality Magazine
  • tutur2u total quality management
    -tqm http//www.tutor2u.net/business/production/q
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