Tqm Tools & Tech

Embed Size (px)

Citation preview

  • 8/13/2019 Tqm Tools & Tech

    1/12

    1

    TOTAL QUALITY MANAGEMENT TOOLS AND TECHNIQUES:

    THE QUEST FOR AN IMPLEMENTATION ROADMAP1

    Seyed Mohammadbagher Jafari*

    Graduate School of Management

    Universiti Putra Malaysia, 43400 UPM, Selangor, Malaysia

    E-mail: [email protected]

    Mostafa Setak

    Industrial Engineering Department, K.N.Toosi University of Technology,

    No. 7, 4th

    floor, Pardis st., Molla Sadra Ave., Vanak sq., Tehran, Iran.

    E-mail: [email protected]

    *Corresponding Author

    ABSTRACT

    Total Quality Management (TQM) has been recognized and used during the last decades byorganizations all over the world to develop a quality focus and improve organizational

    performance. TQM is necessary to reach competitiveness; however, the way to achieve this is

    not easy. TQM consists of a wide range of concepts regarding to quality. Most of the studiesin TQM implementation focus on the concept of TQM. There are few studies in the literature

    that directly suggest an implementation roadmap of TQM tools and techniques and TQMimplementation is still problematic for many organizations. In order to respond to the quest

    for a clear implementation methodology, this study tries to suggest an implementation

    roadmap for TQM tools and techniques based on DMAIC methodology. The proposed

    roadmap includes 6 steps and its developmental sequences start with steps that begin from

    process documentation and lead to accomplishment of more complex and modern quality

    tools and techniques that guide organization to a high level of institutionalized quality.

    Keywords:Total Quality Management,TQM, Implementation Roadmap, TQM Tools, TQMTechniques, DMAIC methodology

    INTRODUCTION

    Quality management has long been recognized as a source of competitive advantage and oneof the most important drivers of global competition (Prajogo & Sohal, 2003). A few

    researchers tried to identify the impact of TQM implementation on firms performances inboth industrialized (Ahire, Waller, & Golhar, 1996; Prabhu, Appleby, & Yarrow, 2000;

    Prajogo & Sohal, 2003) and developing countries (Arumugam, Ooi, & Fong, 2008; Das, Paul,

    Swierczek, & Laosirihongthong, 2006). Punnakitikashem et al. (2010) stated that the majorityof these studies concluded that TQM positively impacts firm performances depending on thedegree of its implementation. In spite of this, TQM implementation is still problematic for

    many organizations (Hansson & Klefsj, 2003) and yet firms report less than optimal results

    (Jayaram, Ahire, & Dreyfus, 2010)

    1This article financially supported by the Islamic Union of Iranian Students Association (in Malaysia).

    Proceedings of the AGBA 7th World Congress, Malaysia 13 Dec 2010

    mailto:[email protected]:[email protected]:[email protected]:[email protected]
  • 8/13/2019 Tqm Tools & Tech

    2/12

    2

    Total Quality Management (TQM) is a management strategy aimed at embedding awareness

    of quality in all organizational processes (Siddiqui, Haleem, & Wadhwa, 2009). TQM definedby the Deming Prize Committee of the Union of Japanese Scientists and Engineers (JUSE,

    2010) as: a set of systematic activities carried out by the entire organization to effectivelyand efficiently achieve the organizations objectives so as to provide products and services

    with a level of quality that satisfies customers, at the appropriate time and price.

    There are many proposed tools and techniques to achieve the TQM promises. Generally, atechnique can be considered as a number of activities performed in a certain order to reach the

    values (Hellsten & Klefsj, 2000). On the other hand, tools sometimes have statistical basis to

    support decision making or facilitate analysis of data.

    Bunney and Dale (1997) reported that on the subject of quality management, there are many

    studies that agree on the vital role of the use and selection of quality management tools and

    techniques to support and develop the quality improvement process. However, they

    emphasized that organizations do encounter a range of difficulties in their use and application

    of quality management tools and techniques.

    It is hardly surprising that research and theory in TQM implementation are still at a very earlystage in the West (Dale, Y.-Wu, Zairi, Williams, & Van Der Wiele, 2001; Sitkin, Sutcliffe, &

    Schroeder, 1994) and the gap in the TQM implementation literature is obvious. Most of the

    studies in TQM implementation focus on the concept of TQM. There are very few studies inthe literature that directly suggest an implementation roadmap of TQM tools and techniques

    and usually they are not a complete roadmap. Therefore, in this research, firstly, the literatureon the current proposed tools and techniques for TQM implementation reviewed and then

    based on the result of this review, a comprehensive roadmap for TQM implementationproposed that covers all the cited tools and techniques.

    LITERATURE REVIEW

    Researchers and practitioners have acknowledged the need to understand causal relationships

    among various elements of total quality management (Ahire & Ravichandran, 2002). Bunney

    and Dale (1997) stated that the introduction of the quality management tools and techniques

    depend, to a certain extent, on the phase of the improvement process. The introduction of

    TQM can take place in three phases (I) diagnosis and preparation, (II) management focus

    and commitment, and (III) intensive improvement. The diagnostic and preparation phase of

    TQM requires the introduction of a number of fact finding tools, some of which are cost of

    quality and Departmental Purpose Analysis (DPA). The management focus and

    commitment phase requires the use of data analysis tools (e.g. cause & effect analysis, flow

    charts and Pareto analysis) to identify problem areas, quantify their effects and prioritize the

    need for solution. During the intensive improvement phase the introduction of more complex

    tools (e.g. statistical process control (SPC) and failure mode and effects analysis (FMEA))

    help to facilitate company-wide improvement.

    Bunney and Dale (1997)also categorized TQM tools and techniques in two different ways,first in five categories regarding to their application and second in seven categories regarding

    to the function that they can be used. Table 1 shows the TQM tools regarding to theirapplication.

    Proceedings of the AGBA 7th World Congress, Malaysia 13 Dec 2010

  • 8/13/2019 Tqm Tools & Tech

    3/12

    The following table shows TQM tools and techniques within each function of a company

    operation.

    In another study, Hellsten and Klefsj (2000) suggested a new definition for TQM. Theirstudy indicates that TQM can be defined as a management system, which consists of three

    interdependent units, namely core values, techniques and tools. The idea is that the core

    values must be supported by techniques, such as process management, benchmarking, and

    customer focused planning, or improvement teams, and tools, such as control charts, the

    quality house or Ishikawa diagrams, in order to be part of a culture. They emphasized that this

    systematic definition will facilitate for organizations the understanding and implementation of

    TQM. Therefore, the implementation work should begin with the acceptance of the core

    values that characterizing the culture of organization. The next step is to continuously choose

    Table 1: Analysis of Application of Tools and Techniques (Bunney & Dale, 1997)

    Table 2: Analysis of Tools and Techniques Used within each Function (Bunney & Dale, 1997)

    Proceedings of the AGBA 7th World Congress, Malaysia 13 Dec 2010

  • 8/13/2019 Tqm Tools & Tech

    4/12

    techniques that are suitable for supporting the selected values. Ultimately, suitable tools have

    to be identified and used in an efficient way in order to support the chosen techniques. Figure

    1 illustrates this definition (The techniques and tools in the figure are just examples and not a

    complete list).

    According to Hellsten and Klefsj (2000) the basis for the culture of the organization are the

    core values. Another component is techniques, i.e. ways to work within the organization to

    reach the values. A technique consists of a number of activities performed in a certain order.The important concept here is that TQM really should be looked on as a system. The values

    are supported by techniques and tools to form a whole. We have to start with the core valuesand ask: Which core values should characterize our organization? When this is decided, we

    have to identify techniques that are suitable for our organization to use and support ourvalues. Finally, from that decision the suitable tools have to be identified and used in an

    efficient way to support the techniques (see Figure 2).

    Hellsten & Klefsj (2000) indicated, as an example, Benchmarking should not be used

    without seeing the reason for using that technique and an organization should not use just

    control charts without seeing the core value behind the choice and a systematic

    implementation roadmap of the techniques and tools. It is, of course, important to note that a

    particular technique can support different core values and the same tool can be useful within

    many techniques.

    Figure 1: TQM as a Management System Consists of Values, Techniques and Tools

    (Hellsten & Klefsj, 2000)

    Figure 2: TQM Implementation Steps (Hellsten & Klefsj, 2000)

    Proceedings of the AGBA 7th World Congress, Malaysia 13 Dec 2010

  • 8/13/2019 Tqm Tools & Tech

    5/12

  • 8/13/2019 Tqm Tools & Tech

    6/12

    In another study in this area, Fazel & Salegna (1996) tried to group major TQM tools and

    techniques into six major categories as determined by their primary area of implementation

    focus:

    1) customer-based;2) management-based;3) employee-based;4) supplier-based;5)process-based; and6)product-based.

    Table 3 shows this classification.

    The above mentioned categories are described below (Salegna & Fazel, 1996):

    1)Customer-based strategies should be the focal point of every TQM programme, aroundwhich all other strategies are formulated. Customer satisfaction is only likely to be

    achieved and maintained when the customer plays an active role in the

    organizations process of quality improvement. Major techniques used to

    accomplish this are customer needs analysis, customer surveys and quality function

    deployment.

    2) Management-based strategies are also extremely important for the successfulimplementation of TQM. TQM initiatives are not likely to succeed without strong

    leadership and support from top management. The goals and the benefits of

    Figure 3: Steps in Application of Deming's PDCA Technique and Associated Tools(Ahmed & Hassan, 2003)

    Proceedings of the AGBA 7th World Congress, Malaysia 13 Dec 2010

  • 8/13/2019 Tqm Tools & Tech

    7/12

    7

    implementing TQM must clearly be communicated by top management to the

    workforce. The alignment of the reward structure with the goals of the organizationis also vital to the organizations success in achieving these goals.

    3) Employee-based strategies provide a means of increasing the participatory role ofworkers. Strategies such as empowerment, teamwork and cross-training may result

    in employees having increased decision making authority, greater jobresponsibilities, and increased motivation and sense of pride in their work. Quality

    programmes may also benefit from employee suggestions resulting from othergroup activities including quality teams, quality circles, the nominal group

    technique and brainstorming.

    4) Supplier-based strategies provide a means of increasing an organizations likelihood ofhaving suppliers who are reliable and willing to work towards the organizations

    goals of providing a quality product. Given the trend towards companies reducing

    the number of suppliers and cultivating long-term relationships with the remaining

    ones, these strategies are particularly important today.

    Implementation Strategy Tools and Techniques

    1) Customer-based Customer survey

    Customer need analysis

    Quality function deployment

    2) Management-based reward structure Communication

    Leadership

    3) Employee-based teamwork EmpowermentCross-training

    Quality circlesQuality teams

    BrainstormingNominal group technique

    4) Supplier-based supplier research Supplier trainingSupplier documentation

    Supplier certification

    5) Process-based statistical process

    control

    Quality improvement process

    Just-in-time

    Lead time reduction

    Benchmarking

    Quality cost analysis

    Quality audits

    Quality assessment

    Process documentationISO 9000

    Work flow analysis

    6) Product-based standardization Benchmarking

    Design of experimentsConcurrent engineering

    Product flow analysis

    Table 3: TQM Tools and Techniques Categories (Salegna & Fazel, 1996)

    Proceedings of the AGBA 7th World Congress, Malaysia 13 Dec 2010

  • 8/13/2019 Tqm Tools & Tech

    8/12

    5) Process-based strategies focus on improving processes by reducing waste, defect rates,cycle time, and providing feedback on the performance of the process.

    Benchmarking, SPC and JIT are some of the most popular techniques employed by

    companies to achieve these goals.

    6) Product-based strategies are directly focused on the quality of the product, its physicalcharacteristics and its manufacturability.

    THE PROPOSED ROADMAP FOR TQM IMPLEMENTATIONAccording to Hammer & Goding (2001) DMAIC methodology provides a structured

    framework for solving business problems by assuring correct and effective process execution.This methodology has 6 phases in which, in the case of Six Sigma, teams take total employee

    involvement approaches to complete the cycle of process management and use self-diagnosisskills to fulfill the goals of each phase. The business will naturally reach the Six Sigma

    quality, when all key processes within a business are completed for each of these five eachphases (Byrne, 2003). Figure 4 shows the DMAIC methodology.

    However, in the case of TQM, the factors that affecting TQM tools selection are many and it

    should be considered before any implementation plan. These factors are:

    the availability of resources within the company to facilitate tools successfulintroduction;

    the objective of using quality management tools such as solving a simple problem orreaching to a high level in quality;

    the product characteristics; and current product and process improvement or new product introduction.

    Some tools or techniques appear simple over others in their development and interpretation.

    The purpose of each of them is distinct and problem specific. Certainly, not all tools or

    techniques are required in one firm. SPC tools are very basic and can be applied for both short

    and long term goals. Some of the tools and techniques are commonly (even frequently) used,

    for example Pareto chart, cause & effect diagram, histogram or quality control charts for

    quality performance monitoring and improvement, and some others can be used less

    frequently (such as Benchmarking, QFD). Some of the techniques are used, for example,

    QFD, FMEA, and design for manufacturability (DfM), in the design and development

    Figure 4: DMAIC Methodology (Hammer & Goding, 2001)

    Proceedings of the AGBA 7th World Congress, Malaysia 13 Dec 2010

  • 8/13/2019 Tqm Tools & Tech

    9/12

  • 8/13/2019 Tqm Tools & Tech

    10/12

    10

    The next step is to collect the required data and measuring the process. Collecting and

    analyzing data are key steps in process improvement. Collecting process performance datahelp answering questions such as (Ehresman, 1995):

    What is happening? How is the process performing? Is the process improving? Is the process satisfying customer requirements?

    The best tools for this purpose is check sheet, Pareto chart, histogram, scatter diagram, runchart and statistical process control (SPC). The data collected by these tools can be used to

    measure the process. According to Ehresman (1995) process measurements serve as a meansto listen to a process. When appropriately analyzed and interpreted, the measurements provide

    accurate, meaningful and timely process performance feedback. The measurements can tellyou a lot about the process. Process measurements are useful for many purposes including

    those listed below:

    understanding what is happening; provide objective performance feedback;

    evaluate the need for improvement; evaluate the impact of changes; and set schedules and performance targets.

    The third step in the proposed roadmap is to use problem finding and solving tools. Problem

    solving requires a structured approach. Without such an approach, efforts often are random

    and/or misguided. The five steps listed below can be applied to any type of problem,

    regardless of its complexity (Ehresman, 1995):

    1) define a problem;2) identify the root cause;3) select the best solution;4) develop an action plan; and5) verify plan results.

    The proper techniques for this goal are cause & effect diagram, relationship diagram,

    brainstorming, reversal and characteristic changing. These techniques can be applied todetermine and eliminate the root cause of a problem. Key element of any problem-solving

    effort are identifying the root cause and generating a list of possible solution ideas.Continuous quality improvement is the next step. In this step all the above mentioned steps

    will be repeated and more tools and techniques will be used to ensure continuousimprovement. The most common tools and techniques in this step are control charts, FMEA,

    and fault tree analysis.

    After the above steps quality stabilization within company and making quality everyones job

    is necessary. Quality is not a part of everyones job. Everyone doesnt do quality for a whileand then get back to his/her real job. Quality is everyones job (Ehresman, 1995). The best

    tool that can assist every organization in its effort to make quality everyones job is ISO9000

    series. A key aim of TQM is customer satisfaction. The focus of customer satisfaction, in turn,

    is to understand and meet or exceed customer requirements. A system is required to ensurethat the requirements are continually and consistently adhered to. This system contains

    documentation so requires that anyone assigned to perform a job can be trained in the same

    precise manner as the previous person on that job. There can be no decline in quality just

    because the person performing the process has changed. The existence or need for quality

    Proceedings of the AGBA 7th World Congress, Malaysia 13 Dec 2010

  • 8/13/2019 Tqm Tools & Tech

    11/12

    11

    systems certainly is not new; companies around the world have been developing their own

    quality systems for years. ISO9000 is series of international quality standards that widelyaccepted and is the best tools for ensuring that quality is everyones job (Martnez-Costa,

    Choi, Martnez, & Martnez-Lorente, 2009; Van der Wiele, Dale, & Williams, 1997).

    However, in addition to the above mentioned tools and techniques, there are numerous

    techniques which are technical and engineering related and have specific applications toproduct design and development. Usually these tools and techniques cover all functionswithin the organization and need more effort to implement and to lead organization to a high

    level of quality. Six Sigma, 5Ss housekeeping, total productive maintenance (TPM), reward

    system, suggestion system, electronic data exchange (EDI), computer aided (product/process)

    design (CAD), computer aided manufacturing (CAM), design for manufacture and assembly

    (DFMA), finite element analysis (FEA), computer numerical control (CNC), computer

    integrated manufacturing (CIM) and just-in-time (JIT) are within this category.

    CONCLUSIONThe correct selection and use of tools and techniques is a vital component of any successful

    TQM implementation plan. The TQM tools and techniques can be divided into simple tools

    for solving a special problem and complex one that cover all functions within the company.Before any implementation the availability of resources within the company, the usage and

    scope of each tools and techniques and the product characteristics should be considered

    carefully. In order to response to the quest for a comprehensive methodology for TQM toolsand techniques implementation, a roadmap with 6 steps proposed in this research. The

    developmental sequences of this roadmap start with steps that begin from processdocumentation and lead to accomplishment of more complex and modern quality tools and

    techniques that guide organization to a high level of quality. This roadmap can help allorganizations intending to reach to a high level of institutionalized quality.

    ReferencesAhire, S., & Ravichandran, T. (2002). An innovation diffusion model of TQM

    implementation.Engineering Management, IEEE Transactions on, 48(4), 445-464.

    Ahire, S., Waller, M., & Golhar, D. (1996). Quality management in TQM versus non-TQM

    firms: an empirical investigation. International Journal of Quality & Reliability

    Management, 13(8), 8-27.

    Ahmed, S., & Hassan, M. (2003). Survey and case investigations on application of quality

    management tools and techniques in SMIs. International Journal of Quality &

    Reliability Management, 20(7), 795-826.

    Arumugam, V., Ooi, K., & Fong, T. (2008). TQM practices and quality management

    performance: An investigation of their relationship using data from ISO 9001: 2000

    firms in Malaysia. The TQM Journal, 20(6), 636-650.

    Bunney, H., & Dale, B. (1997). The implementation of quality management tools andtechniques: a study. The TQM Magazine, 9(3), 183-189.

    Byrne, G. (2003). Ensuring optimal success with Six Sigma implementations. Journal ofOrganizational Excellence, 22(2), 43-50.

    Dale, B. G. (2003).Managing Quality(4th ed.). Oxford: Wiley-Blackwell.Dale, B. G., Y.-Wu, P., Zairi, M., Williams, A., & Van Der Wiele, T. (2001). Total quality

    management and theory: An exploratory study of contribution. Total QualityManagement & Business Excellence, 12(4), 439-449.

    Proceedings of the AGBA 7th World Congress, Malaysia 13 Dec 2010

  • 8/13/2019 Tqm Tools & Tech

    12/12

    12

    Das, A., Paul, H., Swierczek, F., & Laosirihongthong, T. (2006). A measurement instrument

    for TQM implementation in the Thai manufacturing industry. International Journal ofInnovation and Technology Management, 3(4), 117.

    Ehresman, T. (1995). Small Business Success Through TQM: ASQC Quality Press,Milwaukee, WI.

    Hammer, M., & Goding, J. (2001). Putting six sigma in perspective. Quality, 40(10), 58-62.

    Hansson, J., & Klefsj

    , B. (2003). A core value model for implementing total qualitymanagement in small organisations. The TQM Magazine, 15(2), 71-81.

    Hellsten, U., & Klefsj, B. (2000). TQM as a management system consisting of values,

    techniques and tools. The TQM Magazine, 12(4), 238-244.

    Jayaram, J., Ahire, S., & Dreyfus, P. (2010). Contingency relationships of firm size, TQM

    duration, unionization, and industry context on TQM implementation--A focus on

    total effects.Journal of Operations Management, 28(4), 345-356.

    JUSE (2010). THE DEMING PRIZE GUIDE 2010: Union of Japanese Scientists and

    Engineers

    Martnez-Costa, M., Choi, T. Y., Martnez, J. A., & Martnez-Lorente, A. R. (2009). ISO

    9000/1994, ISO 9001/2000 and TQM: the performance debate revisited. Journal of

    Operations Management, 27(6), 495-511.

    Prabhu, V., Appleby, A., & Yarrow, D. (2000). The impact of ISO 9000 and TQM on bestpractice/performance. The TQM Magazine, 12(2), 84-92.

    Prajogo, D., & Sohal, A. (2003). The relationship between TQM practices, quality

    performance, and innovation performance: An empirical examination. InternationalJournal of Quality & Reliability Management, 20(8), 901-918.

    Punnakitikashem, P., Laosirihongthong, T., Adebanjo, D., & McLean, M. (2010). A study ofquality management practices in TQM and non-TQM firms: Findings from the

    ASEAN automotive industry. International Journal of Quality & ReliabilityManagement, 27(9), 1021-1035.

    Rao, A., Carr, L. P., Dambolena, I., Kopp, R. J., Martin, J., Rafii, F., et al. (1996). TotalQuality Management: Cross Functional Perspective. New York: Wiley.

    Salegna, G., & Fazel, F. (1996). An integrative approach for selecting a TQM/BPR

    implementation plan.International Journal of Quality Science, 1(3), 6-23.

    Scheuermann, L., Zhu, Z., & Scheuermann, S. (1997). TQM success efforts: use more

    quantitative or qualitative tools?Industrial Management & Data Systems, 97(7), 264-

    270.

    Siddiqui, F., Haleem, A., & Wadhwa, L. (2009). Role of Supply Chain Management in

    Context of Total Quality Management in Flexible Systems: A State-of the-Art

    Literature Review. Global Journal of Flexible Systems Management, 10(3), 1-10.

    Sitkin, S., Sutcliffe, K., & Schroeder, R. (1994). Distinguishing control from learning in total

    quality management: a contingency perspective. Academy of Management Review,

    19(3), 537-564.

    Spring, M., McQuater, R., Swift, K., Dale, B., & Booker, J. (1998). The use of quality tools

    and techniques in product introduction: an assessment methodology. The TQMMagazine, 10(1), 45-50.

    Van der Wiele, A., Dale, B., & Williams, A. (1997). ISO 9000 series registration to totalquality management: the transformation journey. International Journal of Quality

    Science, 2(4), 236-252.

    Proceedings of the AGBA 7th World Congress, Malaysia 13 Dec 2010