1

What is TQM?

Total Quality Management is a

1. methodology and

2. set of techniques

that focuses companies and enterprises in the role of customer

satisfaction on their business success.

2

TQM Principles

• Customer defines quality

• Top management must lead effort

• View quality as a strategic issue

• Quality is everyone’s responsibility

• Focus on continuous quality improvement

• Employees/Management must cooperate to establish quality

• Use Statistical quality control methods

• Training and education are fundamental to all the above

3

Plan-Do-Check-Act Cycle (PDCA)

• The Plan-Do-Check-Act Cycle, also called the – Deming Wheel or the

– Shewart Cycle

is an approach to continuous process improvement.

• It simple means that you plan an improvement, implement it, check that it is having the correct effect and if not you act on it and start again.

• It is particularly useful when an organisation goes through incremental change.

4

Plan-Do-Check-Act (PDCA) Cycle

Check Act

Do Plan

Time

Qua

lity

leve

l

Problem-solving process Deming Wheel

5

Problem-solving process Deming Wheel Plan• Select a process needing improvement• Document process• Analyse data• Set improvement goals• Discuss alternatives• Assess benefits and costs• Develop a plan and improvement measures.

   Do • Implement plan• Monitor improvements.

Check• Analyze data to evaluate effectiveness of the plan.

Act• Document and disseminate improved process as a standard

procedure

6

Deming’s Principles1. Create constancy of purpose for improvements of product and service2. Everyone adopt the new philosophy3. Cease dependence on mass inspection4. End practice of awarding business on price tag alone5. Improve constantly and forever the system of production and service6. Institute modern methods of training on the job7. Institute modern methods of supervising8. Drive out Fear9. Break down staff barriers (between departments)10. Eliminate numerical goals for the workforce11. Eliminate work standards and numerical quotas12. Remove barriers to pride of workmanship13. Institute a vigorous program of education and improvement14. Create a structure in top management that will push every day on

above 13 points

7

The Costs of Poor Quality

1. Prevention Cost

2. Appraisal costs

3. Internal Failure costs

4. External costs

8

1. Prevention

Costs in this category include time, effort, and money to:

  Redesign the processes to remove causes of defects

  Redesign the product to make it simpler, easier to produce

  Train employer

  Train supplier

9

2. Appraisal

Costs incurred to identify and assess quality problems

  Inspection

  Quality audits

  Statistical quality control programs

10

3. Internal failure

• Costs from defects discovered before the product or service is sold

• Yield Losses — The material costs associated with scrap losses

• Rework — Time, space, and capacity to store, reroute to correct defects

11

4. External failure

Costs when a defect is discovered after the customer has received the product or service

    Loss of market share

    Warranty service

    Litigation

    Increased regulation

12

What are the “hidden” costs of internal and external failures?

• More labor

• More machine capacity

• Increased work-in-process inventory

• Extended lead times

• Increased chance of defects reaching the

customer

• Increased pressure to produce more to

make up for defects

• Reduced employee morale

• More defects

 

13

Tools of TQM

• Tools for generating ideas– Check sheet

– Scatter diagram

– Cause and effect diagram (Fishbone chart)

• Tools to organize data– Pareto charts

– Process charts (Flow diagrams)

• Tools for identifying problems– Histograms

– Statistical process control chart

14

Check Sheet

Month Lost Departure Mechanical Overbooked Other

Luggage Delay Failure

January 1 2 3 3 1

February 3 3 0 1 0

March 2 5 3 2 3

April 5 4 4 0 2

May 4 7 2 3 0

June 3 8 1 1 1

July 6 6 3 0 2

August 7 9 0 3 0

September 4 7 3 0 2

October 3 11 2 3 0

November 2 10 1 0 0

December 4 12 2 0 1

Total 44 84 24 16 12

• A simple checklist that is used to record when something occurs. This is used to identify symptoms and/or potential cases for a problem

15

Scatter Diagrams

• depict relationships between paired data

5 10 15 20 25

A

ve. N

o. o

f D

efec

ts 0

1

0

20

3

0

40

|

|

|

|

Linear Relationship

Thousand Lines of Code

16

Cause and Effect Diagram

• Also called the Ishikawa Diagram, or Fishbone Diagram.

• Problem analysis technique which attempts to identify the root causes for a problem thereby allowing a group to work towards solving the "real" problems and not just symptoms.

• A line is drawn across the middle of a sheet of paper to a box on the right hand side. In that box, the problem statement is written.

• Major possible categories of cause are distributed along the line.

• From these, lines are drawn sloping to the left.

• From these lines, contributing issues for each category are placed.

• From these, additional lines can be drawn. the final result is a tree with all potential causes identified.

17

Creating Fishbone DiagramsAs a group:1. Establish problem (effect)

-state in clear terms-agreed upon by entire group

2. Problem becomes the “head” of the fish-draw line to head (“backbone”)

3. Decide major causes of the problem- by brainstorming- if the effect or problem is part of a process the major steps in the process can be used

4. Connect major causes to backbone of the fish with slanting arrows5. Brainstorm secondary causes for each of the major causes6. Connect these secondary causes to their respective major causes7. Repeat steps 5 & 6 for sub-causes dividing with increased specificity

- usually four or five levels

8. Analyze and evaluate causes and sub-causes– may require the use of statistical, analytical, and graphical tools

9. Decide and take action

18

Example (1 of 4)

• Step 1 & 2:

Poor Service(“backbone”)

(“head”)

19

Example (2 of 4)

• Step 3 & 4:

Poor Service

Responsiveness

Reliability

Appearance

Attention

20

Example (3 of 4)

• Step 5, 6, & 7:

Poor Service

ResponsivenessAppearance

Attention Reliability

time

courtesy

personnelfacility

equipment

One on one service

dependability

accuracy

21

Example (4 of 4)

• Step 8 & 9:– Use tools to analyze and evaluate causes

• Pareto diagrams, charts, and graphs

• Statistical analysis for causes in processes

– Decide and take action• Use fishbone diagram, analysis and evaluations to find causes that

can be fixed

• Take action to eliminate and fix problem causes

22

Exercise

• Create a Fishbone (cause and effect, Ishikawa) Diagram for the following:

‘ Management at Ham Industries has noticed that the productivity of its workers is well below the standard. After interviewing its employees, it was noticed that a vast majority felt dissatisfied and unhappy with their work. Your boss has asked you and a group of your peers to find the causes of worker dissatisfaction . Include all possible causes to at least the secondary level.’

23

Cause and Effect Diagram

Product Quality

Order Fulfillment

Service

Distribution System

Order Processing System

Customers are dissatisfied

24

Fishbone Chart: Airline Customer Service

25

Cause-and-Effect Chart for Flight Departure Delay (Fishbone Chart)

Equipment Personnel

Procedure

Material

Other

Aircraft late to gateLate arrival

Gate occupied

Mechanical failuresLate pushback tug

WeatherAir traffic

Late food serviceLate fuel

Late baggage to aircraft

Gate agents cannot process passengers quickly enoughToo few agents

Agents undertrainedAgents undermotivated

Agents arrive at gate late

Late cabin cleaners

Late or unavailable cockpit crewsLate or unavailable cabin crews

Poor announcement of departuresWeight an balance sheet late

Delayed checkin procedureConfused seat selection

Passengers bypass checkin counterChecking oversize baggage

Issuance of boarding pass

Acceptance of late passengersCutoff too close to departure time

Desire to protect late passengersDesire to help company’s income

Poor gate locations

DelayedFlightDeparture

26

Pareto Diagrams

• measures the distribution of quality losses

A B C D E

61%

4%5%13%

17%

% E

RR

OR

S

27

Pareto Chart

• A Pareto chart is usually used to identify the principle drivers to a problem.

• A checksheet is used to count how often a particular item occurs usually as a cause to a problem (e.g. missing account number on check leads to miss-filing).

• The items are then charted by the percentage of the occurrences in decreasing order.

• The resulting chart shows which items had the most influence on the problem. This goes along with the 80-20 rule which states that 80% of the problem are attributable to only 20% of the causes.

28

Pareto Analysis of Wine Glass Defects (Total Defects = 75)

54

124 3 2

72%

88%93% 97% 100%

0

10

20

30

40

50

60

70

Scratches Porosity Nicks Contamination Misc.

Causes, by percent total defects

Freq

uenc

y (N

umbe

r)

0%

20%

40%

60%

80%

100%

Cum

ulat

ive

Perc

ent

72% 16% 5% 4% 3%

29

Pareto Chart

PARETO CHART

0

0.1

0.2

0.3

0.4

0.5

TYPE OF PROBLEM

% O

F P

RO

BL

EM

OC

CU

RA

NC

ES

P

ER

YE

AR

30

Flowcharts / Flow Diagram

i.e., how a process flows

1 2 3 4

1a

yes

no

31

Produce GoodProvide Service

Stop Process

Yes

NoAssign.

Causes?Take Sample

Inspect Sample

Find Out WhyCreate

Control Chart

Start

Flowchart e.g. Statistical Process Control Steps

32

Passenger Arrives

Ticket No Wait for For Flight Appropriate

Flight

Yes

Check Yes Excess Luggage Carry-on

No

IssueBoarding Pass

PassengerBoards Airplane

33

Histogram

• Bar chart showing the number of occurrences of some event often derived from the results of a check sheet.

• It could be a real world event, like late deliveries by month for a year, or it could be the number of time a proposed solution is suggested.

• It allows a quick prioritisation based on frequency.

34

Histogram

• a graphic summary of dispersion

5 10 15 20 25

Num

ber

0

10

2

0

30

4

0

|

|

|

|

Suggested Mean

Length

35

Histrogram of Lost Luggage

0

0.5

1

1.5

2

2.5

3

3.5

1 2 3 4 5 6 7

Occurrences per Month

Fre

qu

en

cy

36

Brainstorming

• A technique used to generate ideas about a topic.

• Its most common uses are to generate ideas about potential solutions to a problem or the factors influencing something.

• The most common approach is for a group to assign a recorder who records the ideas verbatim.

• The group then takes turns stating their idea,

• This continues until everyone runs out of ideas.

• Brainstorming becomes a problem if a group gets too large (>15) so breaking into manageable groups is advisable