Total Quality Management: A Comprehensive Guide
Deming (1982) 14 —
Constancy of purposeThe new philosophy– Cease dependence on inspection–End ‘lowest tender’ contracts–Improve every process–Institute training on the job–Institute leadership–Drive out fear–Break down barriers–Eliminate exhortations–Permit pride of workmanship–Encourage education–Top management commitment Ql (1910)
Salvage Sorting= Corrective action =Identify sources of non-conformance=QC (1924)=
Quality manual Performance data Self-inspection Product testing Quality planning Use of statistics Paperwork control=QA (1950)
=Third-party approvals Systems audits Quality planning Quality manuals Quality costs Process control Failure mode and effect analysis Non-production operation=TOM (1980)
=Focused vision
Continuous improvements Internal customer
Performance measure Prevention Company-wide application Interdepartmental barriers Management leadershipJuran advocated 10 steps
Build awareness of the need and opportunity for improvement. ==Set goals for improvement. ==Organize to reach the goals (establish a quality council, identify problems, select projects, appoint teams, designate facilitators). ==Provide training. ==Carry out projects to solve problems. ==Report progress.== Give recognition. ==Communicate results. ==Keep score Maintain momentum by making annual improvement part of the regular systems and processes of the company.
Crosby (1982)
Definition of quality—conformance to requirements. Quality system—prevention. Quality standard—zero defects. Measurement of quality—price of non-conformance.
Management commitment
To make it clear where management stands on quality.
Quality improvement team
To run the quality improvement process.
Measurement
To provide a display of current and potential non-conformance problems in a manner thet permits objective.
Cost of quality
To define the ingredients of the cost of quality (COQ) and explain its use as a management tool.
Quality awareness
To provide a method of raising the personal concern felt by all employees toward the conformance of the product or service and the quality reputation of the company.
Corrective action
To provide a systematic method for resolving forever the problems that are identified through the previous action steps Zero defects:
To examine the various activities that must be conducted in preparation for formally launching zero-defects day.
Employee education
To define the type of training all employees need in order actively to carry out their role in the quality improvement process.
Planning and zero-defects day
To create an event that will let all employees realize, through a personal experience, that there has been a change.
Goal setting
To turn pledges and commitments into action by encouraging individuals to establish improvement goals for themselves and their groups.
Error-cause removal
To give the individual employee a method of communicating to management the situations that make it difficult for the employee to meet the pledge to improve.
Recognition
To appreciate those who participate.
Quality councils
To bring together the appropriate people to share quality management information on a regular basis.
Do it all over again
To emphasize that the quality improvement process is continuous.
Garvin (1984, 1988) five co-existing definitions:
Transcendent (excellence);
Product-based (amount of desirable attribute);
User-based (fitness for use);
Manufacturing-based (conformance to specification);
Value-based (satisfaction relative to price).
Garvin, Harvey and Green (1993) discrete and interrelated definitions of quality:
Exceptional Perfection Fitness for purpose Value for money Transformative 4 Philosophy, principles and concepts of TQM
A vital task for any management is to outline quality goals, quality policies and quality plans in accordance with the four sides of the TQM pyramid
. Quality goals
Signal to employees that the firm’s principal task is to satisfy its external customers and that this can only be achieved if the firm is able to exceed customers’ expectations.
The firm’s quality goals give all employees a clear indication of what is going to be achieved concerning quality.
Quality policies, on the other hand, describe in more detail how employees are to achieve that goal. ——–Action plans quality goals and quality policies must be followed by meaningful action plan. Short-term plans (one-year plans) Long-term plans, the latter often being three-year plans which are revised annually—–The annual quality audit gives top management the opportunity to put a number of important questions to departmental managers.
Apart from the usual questions about quality problems and defects, they should include the following four questions:
How have ‘customers’ been identified (both internal and external customers)?How have customers’ requirements and expectations been identified? How have managers and employees tried to satisfy customers? What do customers think of our products and services and how has this information been collected?
In the run-up to the action plan, management must answer the following questions:
Where are we now? (The present situation). Where do we want to be? (Vision).How do we get there? (Action plans). Know your own strengths and weaknesses; Know your competitors (opponents) and the best in the field; Learn from the best; Achieve leadership.
Internal benchmarking means comparing yourself with departments and divisions in the same organization.
This is normally the simplest form of benchmarking because data will always be available for the comparison.
Competitor-based benchmarking, the most difficult form of benchmarkingwhere the firm compares itself with its direct competitors.
In this case, data can be difficult to come by and must often be acquired by indirect means. This is not a problem in functional or generic benchmarking.
Functional benchmarking is based on the functions which the firm concerned is especially noted for, the idea being that the firm compares itself with the leading firm in these functions (e.G. The use of robots, atomization of the assembly lines, etc.). These firms can be direct competitors of the company concerned but will often not be.
Generic benchmarking includes procedures which are common on all types of companies, such as order-taking, the payment of wages, word processing and the like.
Deming point number 14: Management must agree about goals, conditions and obstacles to the introduction of TQM.
Management must have the courage to break with tradition
. In building up a new ‘quality organization’, management must appoint a manager for quality improvements who has direct access to top management. Management must, as quickly as possible, build up an organization to advice on the carrying out of continuous improvements throughout the firm.
Management must explain to employees why changes are necessary and that they will involve everybody in the company .
Management must explain that every activity and every job has its own customers and suppliers.
Management must ensure that every employee in the company participates actively in a team (work team, quality circle).
FOCUS ON THE CUSTOMER AND THE EMPLOYEE The new message in TQM is:
1-In addition to focusing on external customers and their expectations and demands, it is necessary to focus on so-called internal customer and supplier relations.2-To create customer satisfaction, it is not enough just to live up to the customer’s expectations.
The first point is meant to show that employees are part of the firm’s processes and that improving quality at lower and lower costs can only be achieved if a company has good, committed and satisfied employees.
The second point is attributed to Professor Noriaki Kano of Tokyo Science University, whose expanded concept of quality, formulated in 1984, contains the following five types of quality:
Expected quality, or must-be quality.2. Proportional quality.3. Value-added quality (‘exciting/charming quality’).4. Indifferent quality.5. Reverse quality FOCUS ON FACTS
The quality process starts with measurements What kind of measurements are needed then? We will deal briefly with three main groups:
External customers’ satisfaction (CSI=Customer Satisfaction Index).Internal customers’ satisfaction (ESI=Employee Satisfaction Index).Other quality measurements of the firm’s internal processes, often called ‘quality checkpoints’ and ‘quality control points’. Quality Cost. MEASUREMENT OF CUSTOMER SATISFACTION Parallel Organization levels:
Directors Divisions Departments Functions Groups Employees Quality Organization Duties:
TQM steering committee Divisional steering committee Quality Coordinators Quality instructors Team leaders Quality improvement team The powers and responsibilities of the quality organization are as follows: 1.
To set meaningful and ambitious quality goals for the individual team/employees.
2
To ensure that quality improvements are started and implemented in all parts of the organization, both by top-down and bottom-up initiatives.
CH 5Quality management systems and standardization
System Assumption:
A number of more or less interrelated elements each of which contributes to the maintenance of the total system
; Synergy, in that the totality of the system is greater than the sum of its component elements A boundary, which delineated the system and which may be open, partially open or closed in relation to exchanges between the system and its environment;
Sub-systems, comprising interrelations between particular elements within the total system and which themselves have the characteristics of a system;
A flow or process throughout the system; Feedback, which serves to keep the system in a state of dynamic equilibrium with respect to its environment.
Vision
: refers to the future desired state, the situation which is being sought, to which the organization and its personnel are committed. It provides a central focus against which the managerial process of planning, leading, organizing and controlling can be coordinated.
Mission
: represents a series of statements of discrete objectives, allied to vision, the attainment of all of which will ensure the attainment of the future desired state which is itself the vision.
Strategy
: comprises the sequencing and added specificity of the mission statements to provide a set of objectives which the organization has pledged itself to attain.
Values
: serve as a source of unity and cohesion between the members of the organization and also serve to ensure congruence between organizational actions and external customer demands and expectations.
Key issues: these are issues which must be addressed in pursuit of the quality which is demanded by customers to meet their needs and expectations.
Standardization is the basis of continuous improvements. Standardization only is not sufficient
It may take a while before the standard methods for control and prevention of defects are in fact practiced by everybody they concern.
Communication and motivation is the basis for everybody to practice the standardized methods and is also the basis for everybody trying continuously to improve existing standards.
There is no reason to try to find better methods before the existing know-how is being used by everybody it
Step 1=define the standard operation clearly and communicate it to all concerned;
Step 2=put into correct practice the established standard operation;
Step 3=improve the manufacturing method if a satisfactory quality level is not yet achieved;
Step 4=revise the standard operations
1-The different categories represent interrelationship of the counterparts Section A and Section B. These terms can be used to refer to individuals, groups, teams, sections within the organization etc
.2-
In the ‘known-practiced’ column, the respective party already knows the right methods to prevent defects and also executes them correctly
.3
In the ‘known-unpracticed’ column, the respective party knows the right methods but executes them insufficiently or not at all
.4
In the ‘unknown’ column, the respective party does not yet know the right methods to prevent defects.
5
In category I, everyone in both parties knows and correctly practices the best and most effective operation known at any given time. All standard operations must be included in this category.
6
In category II, everyone in both parties is informed of the standard operations but there is someone who does not practice them correctly. This includes the case where someone fails to adhere to standard operations out of carelessness.
7
In category III, one party knows but the other party does not know the right operations for preventing defects
.8
In category IV, no one in either party knows the right techniques yet. The technical problems which cause defects remain unsolved in this category What every manager should be sure of is that every employee knows: 1-
His or her own quality goals.
2-The causes of quality problems.
3-The necessary ‘countermeasures’, meaning the most efficient prevention.
To realize that standards usually include the following three items (Kondo, 1991):1-The objective of the work:
taking a production process as an example, this includes the quality specifications or quality standards for the intermediate or final products which must be made in the process.
2-Constraints on carrying out the work:
these consist of restrictions which must be adhered to in performing the work; items which ensure the safety of employees or assure product quality are the most important of these.
3-The means and methods to be employed in performing the work
The ISO people’ are not necessarily interested in such vital areas as:• Vision and strategies;• Sales and marketing activities;• Customer satisfaction;• Management accounting;• Company culture and employee satisfaction;• Continuous improvement;• Technology;• Business ethics;• Impact on society
Point of view 1 with ISO:1
It is allowable to use the ISO 9000 and the result of a certification in the best possible way
.2
A certification can be an excellent starting point for the support of a disciplined effort to get the best practice standardized as the foundation and necessary condition for continuous improvements.
1-Uniform criteria for external assessment of the quality management system of a company.
2
A third party certification may often result in a heavy decrease of second party audit.
3-A simplification and rationalization of new contract situations between customers and their suppliers.
Point of view 2 against ISO:1–
-ISO is gradually developing to become patented medicine for leaders and specialists who do not know the real requirements of a company.
2–
Nobody has, for instance, criticized the concept for not taking into consideration the company’s place in the right market.
3–
Today the concept is, as a rule, used uncritically without any explanation that it certainly also has its limitations.
4–
ISO is only a single medicine in the company’s cabinet and it should be used together with other tools in the correct order and in the right dosage to have the maximum effect. Otherwise, the organization lacks what it needs to survive. The medicine may become highly dangerous.
5–
ISO is easily applied and managed to create discipline in the production process without any involvement by the management worth mentioning.
6–
At the same time an organization is created in which necessary alterations at a later stage will be both costly and difficult to make.
7–
It is not only a question of the quality of a product. Quality applies to the same extent to the management, the culture of the company, the marketing etc.
ISO 9000 is very appropriate for the standardization process but the company will not make any progress without relying on excellent leadership—that is what we have named Total Quality Management.
—-6.2.1 ENABLERS—-
Criterion 1: Leadership
How the behavior and actions of the executive team and all other leaders inspire, support and promote a culture of Total Quality Management.
Criterion parts: 1a
How leaders visibly demonstrate their commitment to a culture of Total Quality Management
.1b
How leaders support improvement and involvement by providing appropriate resources and assistance.
1c
How leaders are involved with customers, suppliers and other external organizations.
1d
How leaders recognize and appreciate people’s efforts and achievements.
Criterion 2: Policy and strategy
How the organization formulates, deploys, reviews and turns policy and strategy into plans and actions.
Criterion parts:
2a
How policy and strategy are based on information which is relevant and comprehensive.
2b
How policy and strategy are developed.
2c
How policy and strategy are communicated and implemented.
2d
How policy and strategy are regularly updated and improved.
Criterion 3: People management
How the organization releases the full potential of its people.
Criterion parts:
3a
How people resources are planned and improved.
3b
How people capabilities are sustained and developed.
3c
How people agree targets and continuously review performance.
3d
How people are involved, empowered and recognized.
3e
How people and the organization have an effective dialogue.
3f
How people are cared for.
Criterion 4: Resources
How the organization manages resources effectively and efficiently.
Criterion parts: 4a. How financial resources are managed. 4b
How information resources are managed.
4c
How supplier relationships and materials are managed.
4d
How buildings, equipment and other assets are managed.
4e. How technology and intellectual property are managed
Criterion 5: Processes (Special to TQM)
How the organization identifies, manages, reviews and improves its processes.
Criterion parts: 5a
How processes key to the success of the business are identified.
5b
How processes are systematically managed.
5c. How processes are reviewed and targets are set for improvements.5d
How processes are improved using innovation and creativity.
5e
How processes are changed and the benefits evaluated.
—-6.2.2 RESULTS—-
Criterion 6: Customer satisfaction
What the organization is achieving in relation to the satisfaction of its external customers.
Criterion parts:
6a
The customers’ perception of the organization’s products, services and customer relationships.
6b
Additional measurements relating to the satisfaction of the organization’s customers.
Criterion 7: People satisfaction
What the organization is achieving in relation to the satisfaction of its people.
Criterion parts: 7a
The people’s perception of the organization.
7b
Additional measurements relating to people satisfaction.
Criterion 8: Impact on society
What the organization is achieving in satisfying the needs and the expectations of the local, national and international community at large (as appropriate). This includes the perception of the organization’s approach to quality of life, the environment and the preservation of global resources, and the organization’s own internal measures of effectiveness.
It will include its relations with authorities and bodies which affect and regulate its business.
Criterion parts: 8a
Society’s perception of the organization.
8b
Additional measurements of the organization’s impact on society.
Criterion 9: Business results
What the organization is achieving in relation to its planned business objectives and in satisfying the needs and expectations of everyone with a financial interest or other stake in the organization.
Criterion parts: 9a
Financial measurements of the organization’s performance.
9b
Additional measurements of the organization’s performance.
CH 7 Methods of Total Quality Management The problem-solving process called ‘the QC story’ results from the following 10 steps • Plan: 1. Deciding on a theme (establishing goals); 2. Clarifying the reasons this particular theme is chosen; 3. Assessing the present situation; 4. Analysis (probing into the causes); 5. Establishing corrective measures; • Do: 6. Implementation. • Check: 7. Evaluating the results. • Action: 8. Standardization; 9. After-thought and reflection, consideration of remaining problems; 10. Planning for the future.
A quality circle is: • A small group • Voluntarily carrying out quality control activities • Within its own work area. This small group, where each member participates, carries out: • Continuously • As part of the company’s total quality control activities • Quality and improvement • Within its own work area • Using quality control techniques.
(a) Traditional production1–
Number of defects per manufactured unit, both overall and for individual processes.
2–
Visible failure costs as a percentage of the production value for both internal and external failure costs.
3–
CSI (consumer satisfaction index) for internal customer relations.
4–
Average measures of individual production processes.
5–
Number of quality improvement proposals per employee.
6–
Number of defects per employee or production per employee. What is controlled here is whether some employees are ‘special causes’ who either need help themselves (negative deviation), or who can help other employees (positive deviation).
(b) Administration, sales and service1–
Number of defects per produced unit in the individual functions. The unit chosen can be an invoice, a sales order, an item in the accounts, an inventory order, a sales monetary unit, etc.
2–
Sales costs as a percentage of the invoiced sale.
3–
Production per employee.
4–
Sales per employee.
5–
CSI for the firm as a whole and possibly also for the more important products/services.
1-Educate your people in understanding the aims and principles of the different tools.2-Train your people in applying the tools.3-The best training is ‘on the job training’.
CHECK THE FLOW CHART 1–
Is it really a good flow?
2–
Where are the weak points in the process?
3–
What are the internal customer-supplier requirements of each step?
4–
What are their experiences?
5–
What are the external customer-supplier expectations, needs and requirements?
6–
How did we live up to these needs, expectations and requirements?
7–
How can we improve the process in order to improve customer satisfaction?
8–
How can we reduce waste?
1–Capability of processing verbal information.2–Capability of generating idea 3–Capability of providing a means of completing tasks.4–Capability of eliminating failures. 5–Capability of assisting the exchange of information.6–Capability of disseminating information to concerned parties. 7–Capability of ‘unfiltered expression’.
There are many uses of matrix diagrams in daily business life
• ORGANIZATIONAL
1–Initiative diagrams 2–Responsibility diagrams 3–Educational planning• PRODUCT DEVELOPMENT
1–Quality function deployment• MARKETING
1–Media planning 2–Planning of a parameter mix.
The procedure for constructing a matrix may be as follows: 1–
Define the problem and choose the team to solve it.
2–
Choose the variables to enter the solution.
3–
Decide upon the relevant matrix format (L, T, X).
4–
Choose symbols for the relationships.
5–
Fill in the matrix.
Procedure for the analysis of customer satisfaction will consist of the following steps: 1–
Determination of the customer and the process leading from the company to the customer;
2–
Pre-segmentation of the customers;
3–
Determination of relevant quality attributes (parameters);
4–
Choice of competitors;
5–
Design of questionnaire;
6–
Sampling;
7–
Post-segmentation of customers based on results;
8–
Determination of quality types;
9–
Construction of quality maps;
10–
Determination of cost points;
11–
Determination of sales points and customer loyalty;
12–
SWOT analysis;
13–
Determination of corrective actions.