Operations Management with TQM

Module 6

Introduction to Total Quality

Management

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Introduction
Total Quality Management (TQM) is an
enhancement to the traditional way of doing
business. It is a proven technique to guarantee
survival in world-class competition. Only by
changing the actions of management will the
culture and actions of an entire organization be
transformed.

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Introduction
TQM is for the most part common sense.
Analyzing the three words, we have:
Total—Made up of the whole.
Quality—Degree of excellence a product or service
provides.
Management—Act, art, or manner of handling,
controlling, directing, etc.

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Definition of Total Quality
Management:
Total Quality Management - is defined as both
a philosophy and a set of guiding principles that
represent the foundation of a continuously
improving organization. It is the application of
quantitative methods and human resources to
improve all the processes within an organization and
exceed customer needs now and in the future. TQM
integrates fundamental management techniques,
existing improvement efforts, and technical tools
under a disciplined approach.
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Basic Concepts of TQM:
1. Management must participate in the
quality program. A quality council must be
established to develop a clear vision, set long-term
goals, and direct the program. Quality goals are
included in the business plan. An annual quality
improvement program is established and involves
input from the entire work force. Managers
participate on quality improvement teams and also
act as coaches to other teams.

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Basic Concepts of TQM:
2. TQM program is its focus on the customer.
An excellent place to start is by satisfying internal
customers. We must listen to the “voice of the
customer” and emphasize design quality and defect
prevention. Do it right the first time and every time,
for customer satisfaction is the most important
consideration.

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Basic Concepts of TQM:
3. Effective involvement of the entire work
force. TQM is an organization-wide challenge that
is everyone’s responsibility. All personnel must be
trained in TQM, statistical process control (SPC),
and other appropriate quality improvement skills so
they can effectively participate on project teams.

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Basic Concepts of TQM:
4. Continuous improvement of the business
and production process. Quality improvement
projects, such as on-time delivery, order entry
efficiency, billing error rate, customer satisfaction,
cycle time, scrap reduction, and supplier
management, are good places to begin. Technical
techniques such as SPC, benchmarking, quality
function deployment, ISO 9000, and designed
experiments are excellent for problem solving.

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Basic Concepts of TQM:
5. Treating suppliers as partners. On the
average 40% of the sales is purchased product or
service; therefore, the supplier quality must be
outstanding. A partnering relationship rather than
an adversarial one must be developed. Both parties
have as much to gain or lose based on the success or
failure of the product or service.

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Basic Concepts of TQM:
6. Establish performance measures for the
processes. Performance measures such as uptime,
percent nonconforming, absenteeism, and customer
satisfaction should be determined for each
functional area. These measures should be posted
for everyone to see. Quantitative data are necessary
to measure the continuous quality improvement
activity.

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Old & New Culture in Quality

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Gurus of Total Quality Management:
1. Dr. Walter Shewhart
• Shewhart’s control charts are widely used to monitor
processes. Problems are framed in terms of special cause
(assignable cause) and common cause (chance-cause).
• The Shewhart Cycle – PDCA Problem Solving Process:
• Plan – what changes are desirable? What data is needed?
• Do – carry out the change or test decided upon
• Check – observe the effects of the change or the test
• Act – what we learned from the change should lead to improvement or
activity
• Referred to as the “Father of Statistical Quality Control”
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Gurus of Total Quality Management:
2. Philip Crosby
The Four Absolutes of Quality Management:
a. Quality is conformance to requirements
b. Quality prevention is preferable to quality
inspection
c. Zero defects, is the quality performance standard
d. Quality is measured in monetary terms – the price
of non-conformance.

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Gurus of Total Quality Management:
3. Dr. Armand Feigenbaum
• Developed Total Quality Control (TQC) philosophy
• Quote: “Quality is everybody’s job, but because it is
everybody’s job, it can become nobody’s job without the
proper leadership and organization.”
Steps to quality:
• Quality leadership
• Modern quality technology
• Organizational commitment

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Gurus of Total Quality Management:
4. Dr. Kaoru Ishikawa
• Known as father of Japanese quality control effort
• Established concept of Company Wide Quality Control
(CWQC) – participation from the top to the bottom of an
organization and from the start to the finish of the product
life cycle
• Started Quality Circles – bottom-up approach –
members from within the department and solve problems on
a continuous basis
• The fishbone diagram is also called Ishikawa diagram in
his honor.
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Gurus of Total Quality Management:
5. Dr. Joseph Juran
• Juran’s Quality Trilogy (compared to financial
management):
a. Quality planning (financial budgeting) – create
process that will enable one to meet the desired goals
b. Quality control (cost control) – monitor and
adjust the process
c. Quality improvement (profit improvement) –
move the process to a better and improved state of
control through projects
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Quality Management Tools:
1. Check List Sheet - A structured, prepared form for
collecting and analyzing data; a generic tool that can be
adapted for a wide variety of purposes. Employees refer
to check list to understand whether the changes
incorporated in the system have brought permanent
improvement in the organization or not?
2. Pareto Chart - A bar graph that shows which
factors are more significant. Pareto Chart often
represented by both bars and a line graph identifies the
most common causes of problems and the most
frequently occurring defects.
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Quality Management Tools:
3. Cause-and-Effect Diagram - (also called
Ishikawa or fishbone diagrams): Identifies many
possible causes for an effect or problem and sorts ideas
into useful categories. The cause-and-effect diagram
plays a crucial role in identifying the root cause of a
particular problem and also potential factors which
give rise to a common problem at the workplace.

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Quality Management Tools:
4. Histogram - commonly used graph for showing
frequency distributions, or how often each different
value in a set of data occurs. Histogram helps identify
the cause of problems in the system by the shape as
well as width of the distribution.

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Quality Management Tools:
5. Control Chart - Graph used to study how a
process changes over time. Comparing current data to
historical control limits leads to conclusions about
whether the process variation is consistent (in control)
or is unpredictable (out of control, affected by special
causes of variation).

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Continuous Improvement Strategies:
1. Plan-Do-Check-Act (PDCA): This is a four-step quality
model that focuses on achieving continuous improvement
by following four specified steps within a cycle.
2. Kaizen: This Japanese-derived term is used to describe
a long-term approach towards implementing small
changes that add up to bigger results. Within Kaizen, each
employee is fully involved to help ensure improvement
within all processes. Some common highly coveted traits
of Kaizen include personal discipline, quality circles, and
teamwork.
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Continuous Improvement Strategies:
3. 5S: The 5S philosophy centers on maintaining a clean and
organized workspace to promote greater efficiency,
functionality, and higher levels of production.
4. Value Stream Mapping: This helpful planning
technique looks inward at the design and flow of how
information is shared and how processes are conducted.
A highly-detailed flow chart is commonly utilized to
isolate all steps within a specific process, so areas can be
identified for improvement or needed changes. This is a
great tool to help identify areas of waste, reduce process
times, and to improve overall current processes.
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Continuous Improvement Strategies:
5. Lean: Lean or Lean Manufacturing focuses mainly
on preserving quality, with less work by eliminating
waste. Some common “wastes” that are identified for
improvement include waste of time, waste of money,
and waste of resources. Some benefits of lean include a
boost in employee morale, streamlined and more
efficient processes, and overall improvements in
customer satisfaction.

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Types of Quality Problems
1. Compliance problems - occur when a structured
system having standardized inputs, processes, and
outputs is performing unacceptably from the user’s
viewpoint. These problems are identified by comparing
with standards or by feedback from the internal or
external customer.

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Types of Quality Problems
2. Unstructured problems - resemble compliance
problems except that they are not specified by
standards. The absence of standards may be due to
system immaturity or to the need for flexibility in
system performance.
3. Efficiency problems - occur when the system is
performing unacceptably from the viewpoint of its
owners or operators. In other words, the end user is
satisfied; however, the process is more costly than
desired, or working conditions are not acceptable.
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Types of Quality Problems
4. Process-design problems - involve the
development of new processes and revision of
existing processes. Many business and production
processes have not been well designed or have
become obsolete with advances in technology.
5. Product-design problems - involve the
development of new products and the
improvement of existing products. A major focus is
to prevent process and end user problems by
relying on customer needs.
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