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TQM

QUALITY BASICS

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Chapter 1

LO1: Relate the principles of 'Total QualityManagement' to organizational competitive strategy.


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DEFINING QUALITY

Whats your definition?

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DEFINING QUALITY

In technical usage, quality can have two meanings:

the characteristics of a product or service that bear onits ability to satisfy stated or implied needs, and

a product or service free of deficiencies

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DEFINING QUALITY - GURUS

Deming - non-faulty systems

Out of the Crisis

Juran - fitness for use

Quality Control Handbook Crosby - conformance to requirements

Quality is Free

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DEFINING QUALITY- DIFFERENT VIEWS

Customers view (more subjective) the quality of the design (look, feel, function)

product does whats intended and lasts

Producers view conformance to requirements (Crosby)

costs of quality (prevention, scrap, warranty)

increasing conformance raises profits

Governments view products should be safe

not harmful to environment5


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Quality =

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Performance

Expectation


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WHATIS QUALITY?

Quality you know what it is, yet you dont know what it

is. But thats self-contradictory. But some things are

better than others, that is, they have more quality. Butwhen you try to say what the quality is, apart from thethings that have it, it all goes poof! Theres nothing totalk about. ...

Robert M. Pirsig, Zen and the Art of Motorcycle Maintenance, p. 163

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WHATIS QUALITY?

Obviously, some things are better than others but

whats the betterness? So round and round you go,

spinning mental wheels and nowhere finding anyplace toget traction. What the hell is Quality? What isit?

Robert M. Pirsig, Zen and the Art of Motorcycle Maintenance, p. 164

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SOME DEFINITIONSOF QUALITY

Quality is conformance to requirements

-- Philip Crosby, Quality is Free 1979

The totality of features and characteristics of aproduct or service that bear on its ability to satisfystated or implied needs. --ASQC

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WHATIS QUALITY?

User-based: In the eyes of the beholder

Manufacturing-based: Right the first time

Product-based: Precise measurement

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FURTHER DEFINITIONS

Conformance to valid customer requirements

Goalpost View: Acceptable as long as it is within

acceptable limits

a predictable degree of uniformity anddependability, at low cost and suited to the market.

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VALUE-BASED APPROACH

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Manufacturingdimensions Performance

Features

Reliability

Conformance

Durability

Serviceability

Aesthetics

Perceived quality

Servicedimensions Reliability

Responsiveness

Assurance

Empathy

Tangibles


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SHIFTTO QUALITY

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Pre-World War II 1945 1990s

Isolated

Economies

Focus onquantity

Period ofchange fromquantity toquality

Global

Economy

Focus onquality


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HISTORYOF QUALITY PARADIGMS Customer-craft quality paradigm:

design and build each product for a particular customer. producer knows the customer directly.

Mass production and inspection quality paradigm: focus on designing and building products for mass

consumption. larger volumes will reduce costs and increases profits. push products on the customer (limit choices). quality is maintained by inspecting and detecting bad

products.

TQM or Customer Driven Quality paradigm: potential customers determine what to design and build. higher quality will be obtained by preventing problems

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NEEDFORA NEW STRATEGY

Foreign markets have grown

Import barriers and protection are not the answer.

Consumers are offered more choices

They have become more discriminating.

Consumers are more sophisticated

They demand new and better products.

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WHY QUALITY IMPROVEMENT?

Global Competition

Economic and political boundaries are slowly vanishing

The 1950s slogan Built by Americans for Americans is

very far from reality in the 2000s.

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WHY QUALITY IMPROVEMENT?

It pays

Less rework, fewer mistakes,

fewer delays, and better use of

time and materials

In United States today, 15 to 20%

of the production costs are

incurred in finding and correctingmistakes.

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QUALITY GURUS


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W. EDWARDS DEMING

WWII taught Quality Control for war effort

Ignored after the war

Japan wanted to learn from the US

Deming went to help with census Started teaching them quality control

1951 Deming Prize for high level of achievement inquality practices

1980 NBC If Japan CanWhy Cant We? US

discovers


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QUALITY PHILOSOPHY

A product or service possesses quality if it helps

somebody and enjoys a good and sustainablemarket.

Variation is the cause of poor quality

The Process

Product/service design

Manufacture/service delivery

Test

Sales

Market surveys

Redesign and improvement


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PLAN

CHECK

DOACT

The Deming Cycle or PDCA Cycle

Plan a change to the process. Predict the effectthis change will have and plan how the effects

will be measured

Implement the change on asmall scale and measure the

effects

Adopt the change as apermanent modification tothe process, or abandon it.

Study the results to learnwhat effect the change had, if

any.


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SYSTEMOF PROFOUND KNOWLEDGE

1. Appreciation for a system

1. Most organizational processes are cross-functional

2. Parts of a system must work together

3. Every system must have a purpose

4. Management must optimize the system as a whole

2. Understanding variation

1. Many sources of uncontrollable exist in any process

2. Excessive variation results in product failures, unhappy

customers, and unnecessary costs3. Statistical methods can be used to identify and quantify

variation to understand it and lead to improvements


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3. Theory of Knowledge

1. Knowledge is not possible without theory

2. Experience alone does not establish a theory, it onlydescribes

3. Theory shows cause-and-effect relationships that can beused for prediction

4. Psychology

1. Fear is not motivating

2. Managers should develop pride and joy in work

SYSTEMOF PROFOUND KNOWLEDGE


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IFYOUDONTGETIT

Systems:

See symptoms, not causes

Dont see effects of one part on the others

Variability

See trends where there are none, miss others

Psychology

Create cynicism, demoralization, guilt, resentment,burnout, craziness, and turnover

Theory of Knowledge

Problems remain unsolved, despite best efforts


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DEMINGS 14 POINTS

1. Create a vision and demonstratecommitment

1. Long-term vision

2.Companies purpose is to serve their customers andemployees, not simply for profit

3. Invest in innovation, training, research

4. Improve competitive position

5. Top management is responsible for this

6. Effective leadership begins with commitment


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14 POINTS

2. Learn the New Philosophy

1. Quota-driven, adversarial management wont work

2. That ignores importance of quality improvement

3. Labor and management have to cooperate to improve

the customers satisfaction

4. Keep training people turnover does exist

3. Understand Inspection

1. Routine inspection let someone else fix it

2. Increases costs in the end (no rework in services)

3. Inspect your own work and fix it


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4. DONT BUYONTHE COSTPER PART BASIS

1. Dont buy from several for competition

2. Increases variability3. Work with suppliers in long-term relationships

4. Improve quality with your suppliers

5. Also get volume discounts, fewer setups

6.Supplier-customer bond

14 Points


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5. IMPROVE CONSTANTLYAND FOREVER

1. Reduce causes of variation

2. Engage all employees1. How to do jobs more efficiently

2. More effectively

3. Continuous Process Improvement now is mandatory

14 Points


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6. INSTITUTE TRAINING

1. People are a valuable resource and want to do a good

job2. They need training to know how to do a good job

3. Invest in their future

4. Training should include tools for

1. Diagnosing2. Analyzing

3. Solving quality problems

4. Identify improvement opportunities

14 Points


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7. INSTITUTE LEADERSHIP

1. The job of management is leadership, not supervision.

2. If supervisors dont know the job, they cant lead

1. Focus on getting product out the door

3. Good supervisors are coaches, not prison guards

14 Points


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8. DRIVE OUT FEAR

1. Managers and workers must have mutual respect2. Pointing out quality problems will miss quotas

3. Deming story about not fixing a machine

4. Auto plant: workers knew more than the experts

14 Points


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9. OPTIMIZETHE EFFORTSOF TEAMS

1. People have to understand what customers want2. Union vs. Management

1. Management trying to exploit workers

2. Unions keeping to piece-rate known systems

14 Points


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10. ELIMINATE EXHORTATIONS

1. Do you work better with a poster on the wall?

2. Slogans assume quality problems caused by people

3. Deming thinks the system is responsible for problems

4. Workers demoralized when they cannot fix defects, andyet are held accountable

5. Workers attempts to fix problems only cause more

variation

14 Points


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11. ELIMINATE NUMERIC QUOTAS

1. They do not encourage improvement

1. If you do improve it, theyll just raise the quota2. Risk of missing quotas

3. Once you meet the standard, why try harder?

4. Arbitrary goals are demoralizing without a plan of how

you can reach those goals

5. Variability in system year-to-year

14 Points


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12. REMOVE BARRIERSTO PRIDEIN WORKMANSHIP

1. People are treated like a commodity

2. Work nights to make up for cut positions

3. Dont make your people compete against each other

4. Behavior driven by what boss wants, not Quality

14 Points


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13 EDUCATION & SELF-IMPROVEMENT

1. Not job-specific2. Many benefits, some specific to job, others broader

14 Points


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14. TAKE ACTION

1. Accomplish the Transformation2. Start the cultural change with top management

3. People will be skeptical until they start to see change

14 Points


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DEMINGS 7 DEADLY SINS

1. Lack of constancy of purpose

2. Emphasis on short term profits

3. Evaluation of performance, merit rating, or annualreview of performance

4. Mobility of management

5. Running a company on visible figures alone

6. Excessive medical costs for employee health carethat increase the final costs of goods and services

7. Excessive costs of warranty, fueled by lawyers whowork on the basis of contingency fees.


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JOSEPH JURAN

1951 Quality control handbook

Taught quality principles to Japanese in 1950s

Quality directed by senior management Train whole management hierarchy in quality

Strive for evolutionary changes in Quality

Report progress to executive levels

Involve the workforce in quality Quality part of reward/recognition structure


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JURAN TRILOGY QUALITY PLANNING

Determine who the customers are

Identify the customers needs

Develop products with features to respond to thecustomers needs

Develop systems and processes that allow theorganization to produce these features.

Deploy the plans to operational levels

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JURAN TRILOGY QUALITY CONTROL

Assess actual quality performance

Compare performance with goals

Act on difference between performance and goals

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JURAN TRILOGY QUALITY IMPROVEMENT

Develop the infrastructure necessary to makequality improvements

Identify specific areas in need of improvement, andimplement improvement projects

Establish a project team with responsibility forcompleting each improvement project

Provide teams with what they need to be able todiagnose problems to determine root causes,

develop solutions, and establish controls that willmaintain gains made

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PHILIP CROSBY

Corporate VP for Quality at International Telephoneand Telegraph, ITT for 14 years.

Quality is Free 1 million copies sold


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Quality is free . . . :

Quality is free. Its not a gift, but it is free.

What costs money are the unquality things --

all the actions that involve not doing jobs

right the first time.

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Philip Crosby


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CROSBYS 14 STEPS

1. Make it clear that management is committed toquality in the long term

2. Form cross-departmental quality teams

3. Identify where current and potential problemsexists

4. Assess the cost of quality and explain how it isused as a management tool

5. Increase the quality awareness and personalcommitment of all employees

6. Take immediate action to correct problemsidentified

7. Establish a zero defects program45


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CROSBYS 14 STEPS

8. Train supervisors to carry out their responsibilities in thequality program

9. Hold a Zero Defects Day to ensure all employees areaware there is a new direction

10. Encourage individuals and teams to establish bothpersonal and team improvement goals

11. Encourage employees to tell management aboutobstacles they face in trying to meet quality goals

12. Recognize employees who participate13. Implement quality councils to promote continual

communication

14. Repeat everything to illustrate that quality improvement46

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