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8/14/2019 TQM final,RAMAN ROY JIMS
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Meaning of QUALITY
The term quality refers to the degree to whicha product conforms to specifications andworkmanship standards.
Product quality refers to the composite ofengineering and manufacturing characteristics
that determine the degree to which theproduct in use meets the expectations of thecustomers.
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Quality - Definitions
Quality is excellence that is better than aminimum standard.It is conformance to standards and fitness
of purpose ISO 9000:2000 definition of quality- It
is the degree to which a set of inherentcharacteristics fulfills requirements.
Quality is fitness for use of the productJoseph Juran.
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Dimensions of Quality
Performance: products primary operating characteristics
Features: secondary, extra characteristics
Reliability: consistent performance within a specified period.
Conformance: degree to which design and characteristics
meet specific standards.
Durability: length of a product/services useful life.
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Serviceability: speed, courtesy, competence and ease
of repair. Aesthetics: looks, taste, feel, sound, smell of a
product/service.
Perceived Value: quality conveyed via marketing,
brand name.
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QUALITY IS .the QUALIFIER
Doing it right first time and all the time.
This boosts Customer satisfaction immensely
and increases efficiency of the Business
operations.
Clearing the bar (ie. Specification or Standard
stipulated) Excellence that is better than a
minimum standard.
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TOTAL QUALITY MANAGEMENT
TQM is a management philosophy of meeting therequirements of customers in better waysthrough continuous improvement in the quality
of work of all the employees.
It involves the integration of all functions andprocesses within an organisation in order to
obtain continuous improvement in thequality of products and services.
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ELEMENTS OF TQM
The main characteristics of TQM are as
follows:
Customer satisfaction
Continuous improvement
Employee involvement
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PHASES OF TQM
FirstPhase
Creation of a proper cultural environment forinstituting statistical process control.
Every emplyee is trained in the philosophy of TQM
Second
phase
It involves problem solving. Process studies, brainstorming and other techniques are used.
Skills of working in teams are taught.
Thirdphase
It involves actual applications of statistical processcontrol to the problems of quantity.
Stress is on employee training and skill development.
Fourthphase
Makes use of advanced techniques to obtainoptimum results.
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TQM six basic Concepts
Management commitment to TQM principles and
methods & long term Quality plans for the
Organisation
Focus on customers internal & externalQuality at all levels of the work force.
Continuous improvement of the production/business
process. Treating suppliers as partners
Establish performance measures for the processes.
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Effects of poor Quality
Low customersatisfaction
Lowproductivity
Low morale ofworkforce
More rework,material, labor
costs
Highinspection
costs
Higher repaircost
Greater wasteof material
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Benefits of Quality
Higher customer satisfaction
Reliable products and services
Better efficiency of operations
More productivity and profit
Better morale of workforce
Less wastage costs
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Less inspection costs
Improved process
More market share
Spread of happiness and prosperity
Better quality of life for all
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7 Habits of highly effective people
( Stephen Covey)
Be pro-active
Begin with the end in mind
Put first things first
Think win-win
Seek first to understand,then to be understood
Synergy
Sharpen the saw
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Role of TQM leaders
All are responsible for quality improvement especially the
senior management & CEOs Senior management must practice MBWA
Ensure that the teams decision is in harmony with the qualitystatements of the organisation
Senior TQM leaders must read TQM literature and attend
conferences to be aware of TQM tools and methods Senior managers must take part in award and recognition
ceremonies for celebrating the quality successes of theorganisation
Coaching others and teaching in TQM seminars
Senior managers must liaise with internal ,external andsuppliers through visits,focus groups,surveys
They must live and communicate TQM.
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TQM implementation
Begins with Sr. Managers and CEOs
Timing of the implementation process
Formation of Quality council
Union leaders must be involved with TQM plans implementation
Everyone in the organisation needs to be trained in qualityawareness and problem solving
Quality council decides QIP projects.
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Quality Council
The quality council includes CEO and Senior managers of thefunctional areas -research,manufacturing,finance,sales,marketing etc. and one co-ordinator and a unionrepresentative.
Duties- To develop the Quality statements eg. Vision, Mission,Quality policy statements, Core values etc.
To develop strategic long-term plans and annual qualityimprovement programme.
Make a quality training programme
Monitor the costs of poor quality.
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Determine the performance measures for the organisation
Always find projects that improve the processes and producecustomer satisfaction.
Establish work-group teams and measure their progress.
Establish and review the recognition and reward system forthe TQM system
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Quality statements
Vision statement- a short declaration of whatthe organisation hopes to be tomorrow
Mission statement a statement of purposewho we are,who are our customers,whatwe do , and how we do it.
Quality policy is a guide for everyone in theorganization ,how they should provide productsand services to the customers.
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Strategic Quality Goals and Objectives
Goals must be focused
Goals must be concrete
Goals must be based on statistical evidence
Goals must have a plan or method with
resources
Goals must have a time-frameGoals must be challenging yet achievable
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Strategic Planning
Strategic business planning is similar to strategicquality planning.
7 steps to strategic planning
Customer needs
Customer positioning
Predict the future
Gap analysis
Closing the gap Alignment
Implementation
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Quality Costs
Good Quality
leads to more Productivity, sales, profits and
increased operational efficiency and minimise
losses.
Bad Quality -
results in less productivity, sales, profits and
efficiency
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Quality cost is the cost of bad Quality of product andservices that rebounds to the Manufacturer.
It adds to other costs in Design,Purchase,Production,Sales , Service etc. Quality costs
in all depts. can be measured , programmed,budgetedetc.
External failure Quality costs Returned goods,Warranty,Service etc.
Internal failure Quality costs- Rework of products
Appraisal costsInspectors and Inspection costs
Prevention costs-assoc. with Design,Sales,Purchase
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Quality Cost Programme
Identifies the magnitude of Quality loss in
financial terms- ie. Rs., $ etc.
Reveals the Management commitment to Quality.
Identification of Quality improvement areas by
studying Quality costs
Identification of hidden losses in all the processes
Comprehensive system that improves Quality byfinding source of the problem and correcting it.
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Customer satisfaction
Customer is the QUEEN
Customer dictates the market trends and direction
Customer not only has needs to be supplied( basicperformance functions)
Also he wants what he wants!( additional features
satisfy him and influence his purchase decision)
Hence the Suppliers and Manufacturers have to closelyfollow at the heel of the customer.
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Customer Satisfaction Organisational
Diagram
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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?
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Customer types
External
current Prospective
Lost customers
Internal
Every person in aprocess is acustomer ofprevious operation
Manufacturing,sales
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Customer/supplier chain
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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 isrequired. Also the leaders role in supervising the
internal customer-supplier chain.
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TQM and customer quality percepts
TQM is quality management and management of qualitythere is no full stop and no break in the chain.
Continuous process (quality) improvement is all its about.
Why? One important reason is the customer quality level isnot static and his expectations keep changing and hisdemands too.
Also plant process dynamics- how to achieve maximumefficiency , optimizing cost and performance in the processoperations, minimizing waste etc.
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User purchase perceptions
Performance Features Service
Warranty Price Reputation
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Customer satisfaction/
dissatisfaction feedback Customer feedback has to be continuously sought and
monitored - not one-time only!( Pro-active! Complaints are areactive method of finding out there is a problem)
Customer feedback can be relayed to Manufacturer.
Performance comparison with competitors can be known
Customers needs can be identified
Relative priorities of quality can be obtained from the horsesmouth.
Areas for improvement can be noted.
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Customer feedback methods
Comment cards enclosed with warranty card when product ispurchased.
Customer survey and questionnaire
Customer visits
Customer focus groupsQuarterly reports
Toll-free phones
e-mail, Internet newsgroups,discussion forums
Employee feedbackMass customization.
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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 centres not just profit-centres.
The entire organization must in effect revolve aroundthe customer whether the customer is being wellserved and if he is really pleased, contented andsatisfied with the service
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SERVICE QUALITY
( i ) Organisation
Identify each market segment
Write down the requirements
Communicate the requirements
Organise processes
Organise physical spaces
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(ii) Customer Care
Meet the customers expectations
Get the customers point of view
Deliver what is promised
Make the customer feel valued
Respond to all complaints
Over-respond to the customer
Provide a clean and comfortable customerreception area.
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(iii) Communication
Optimize the trade-off between time andpersonal attention
Minimize the number of contact points Provide pleasant,knowledgable and
enthusiastic employees
Write documents in customer-friendlylanguage.
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(iv) Front-line people
Hire people who like people
Challenge them to develop better methods
Give them the authority to solve problems
Serve them as internal customers
Be sure they are adequately trained
Recognise and reward performance
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(v)Leadership
Lead by example
Listen to the front-line people
Strive for continuous process improvement
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Customer Care
Keep promises to customers
Return customer calls promptly
Allot staff to handle customer problems
Treat customers with courtesy,respect and professionalism
always Evaluate customer satisfaction regularly
Search for customer-related improvements continuously
Deliver Products/Service promptly and efficiently
Give every customer complete and personal attention.
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Customer Retention
Customer satisfaction should lead to customer loyalty andcustomer retention.
This is the acid test and bottom line- when the customer
repeatedly comes back to you for repeat orders and topurchase new products mfgrd. by you. (In spite of stiffcompetition and multiple Suppliers/Sources! )
Firm orders received or cash payments registered , marketshare, customer referrals and customer retention are anindication of your customer success and penetration .
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Empowerment
To invest people with authorityto tap the potential
in every worker (avoid the wastage of unrealised
capacity)
People have the ability, confidence and commitmentto take the responsibility and ownership to improve
the process, and initiate the necessary steps to
satisfy customer requirements within well-defined
boundaries in order to achieve organisational goals.
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Conditions for empowerment
Everyone must understand the need forchange.
The system needs to change to the newparadigm.
The organisation must enable itsemployees.
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Continuous Process Improvement
Process refers to business and production activities of anOrganisation.
Processes for improvement- eg. Design &
Manufacturing,Marketing,Stores & Purchase,etc.
Inputs of the Process- Manpower,materials,money,data,etc.
Outputs- Products,Services,data etc. Outputsneed performance measures main outcome being customersatisfaction.(feedback is used to improve the process)
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Process refers to business and production
activities of an organisation
Businessprocesses-Manufacturing,Design,
Sales,Purchase,Stores etc.are areas where
non-conformance can be reduced and
processes improved
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Five ways to Improve a Process
Reduce resources
Reduce errors
Meet or exceed expectations of
internal/external customers
Make the process safer
Make the process more satisfying to theperson doing it.
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Four Improvement Strategies
Repair Refinement
Renovation Re-invention
TQM i i l f h J
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TQM principles from the Japanese
The 3 K Method
Kimerareta KotooWhat has been decided
Kimerareta Tori must be followed
Kichim to Mamorukoto as per standard.
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The 5S Method
Seiko - Sort ( Proper arrangement )
Seiton - Set ( Systematic or
Orderliness )
Seiso - Shine ( Sweep or clean-up )
Seiketso - Standard ( Personal
cleanliness )
Shitsuke - Sustain ( Self-discipline )
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PDSA cycle- seven steps or phases
Identify the opportunity
Analyze the current process
Develop the optimal solution(s)
Implement changes
Study the results
Standardise the solution
Plan for the future.
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