Total Quality Management TQM Bus 341 Ali albdour

Compulsory book: Total Quality Management (TQM) Bus 432 1 - Quality Management for Organizational Excellence: Introduction to Total Quality, by Goatish, D. and Davis, S. , Published by Prentice Hall, 6 th edition. (2010). • Supplementary References: Quality Management, by Summers, D. , Published by Prentice Hall, 2 nd edition. (2009)- up to 5 th edition. Dr. ali albdour 2

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About the book: This book features a straightforward, practical look at applying theories and principles of total quality in the real world. Current and comprehensive, it covers every aspect of total quality -including several that receive little or no attention in other total quality books — helping professionals understand that in order to compete in the global arena, businesses must achieve consistent peak performance, continual improvement, and maximum competitiveness. The sixth edition has been updated to include coverage of Lean and Lean Six Sigma. Key topics covered include global competitiveness; strategic management; ethics and corporate social responsibility; partnering and strategic alliances; quality culture; customer satisfaction and retention; employee empowerment; leadership; teamwork; communication; education and training; overcoming negativity; the ISO 9000 quality management system; tools and techniques; and implementing total quality management Dr. ali albdour 4

Course Description: This course concentrates on the establishment and development of a quality management system at business organizations. It includes the basic pillars that constitute a TQM model and their implementation at manufacturing or service sectors. International Quality Management Systems and quality award models will be provided on this course. Dr. ali albdour 5

Course Objectives: ü Explain the function of quality management and how it is integrated into the organizational chart and business plan. ü Provide the basic pillars that constitute Total Quality Management TQM and how the organization implements such pillars. ü Emphasize quality management as a field of professional practice. ü Provide recognized international quality systems; ISO 9000; Quality Management Systems and ISO 14000; Environmental Management Systems. ü Introduce tools that are used to implement quality management systems at any organization. ü Explain international quality awards models and their applications and implementations; Malcolm Baldrige, EFQM Excellence, King Abdul Aziz Quality Award. Dr. ali albdour 6

Course Outcomes: ü By the end of this course, students should be able to: ü Understand the development of quality management and its different definitions and approaches. ü Comprehend the basic pillars of Total Quality Management; top management commitment, customer focus, education and training, benchmarking, quality culture, employee participation and empowerment and measurements of quality. ü Use the Statistical Process Control and the qualitative methods in order to improve quality and reliability. ü Acquire basic knowledge needed to implement quality management systems and environmental management systems; ISO 9000 and ISO 14000. ü Understand implement the major international quality awards; Malcolm Baldrige, EFQM Excellence, along with King Abdul Aziz Quality Award. ü Be aware of ethics and social responsibility issues especially those related to auditing for quality systems and conflict of interests. 7 Dr. ali albdour

Time table for distributing Theoretical course contents Week No 1 1 1 1 Subject Remarks 1 -Evolution and definitions of quality management 2 -Top management commitment 3 -Customer focus and satisfaction 4 -Education and training 5 -Quality culture 6 -Benchmarking 1 st Test 7 -Employee empowerment 8 -Measuring quality 9 -Statistical Process Control (SPC) 10 -Qualitative methods for quality 11 -Continuous improvement models; Juran Trilogy, Kaizen, and PDCA Schwartz Deming Model 12 -ISO 9000 Quality Management Systems 13 -ISO 14000 Environmental Management Systems 14 -Malcolm Baldrige Quality Award 15 -EFQM Excellence Model 16 -King Abdul Aziz Quality Award 2 nd test 17 -Ethics and Social responsibility Final Exam Dr. ali albdour 8

Assessment Methods 5. Schedule of Assessment Tasks for Students During the Semester Assessment task (eg. essay, test, group project, Week due ment examination etc. ) 1 2 3 Proportion of Final Assessment First Exam 6 25% Second Exam 11 25% Homework and reports 4 Participation 5 Final Exam © 2003 Thomson. TM/South-Western Throughout the semester 16 5% 5% 40% Slide 9

1 -Evolution and definitions of quality management Dr. ali albdour 10

1 - Evolution and definitions of quality management: history of quality management The roots of Total Quality Management can be traced to early 1920's production quality control ideas, and notably the concepts developed in Japan beginning in the late 1940's and 1950's, pioneered there by Americans Feigenbum, Juran and Deming Dr. ali albdour 11

TQM- book The total quality concept as an approach to doing business began to gain wide acceptance in the United States in the late 1980 s and early 1990 s. However, individual elements of the concept—such as the use of statistical data, Six Sigma, Lean, teamwork, continual improvement, customer satisfaction, and employee involvement—have been used by visionary organizations for years. It is the pulling together and coordinated use of these and other previously disparate elements that gave birth to the comprehensive concept known as total quality. This chapter provides an overview of that concept, laying the foundation for the study of all remaining chapters. Dr. ali albdour 12

1 - Evolution and definitions of quality management: quality management gurus and theories • Quality Management resulted mainly from the work of the quality gurus and their theories: the American gurus featured in the 1950's Japan: Joseph Juran, W Edwards Deming, and Armand Feigenbum; the Japanese quality gurus who developed and extended the early American quality ideas and models: Kaoru Ishikawa, Genichi Taguchi, and Shigeo Shingo; and the 1970 -80's American Western gurus, notably Philip Crosby and Tom Peters, who further extended the Quality Management concepts after the Japanese successes. . . More about the Quality Management gurus and their theories, including the development and/or use of the Plan, Do, Check, Act (PDCA) cycle, Pareto analysis, cause and effect diagrams, stratification, check-sheets, histograms, scatter-charts, process control charts, system design, parameter design, tolerance design ('Taguchi methodology'), Quality Improvement Teams (QIT), Just In Time (JIT), Management By Walking About (MBWA), Mc. Kinsey 7 -S Framework, etc Dr. ali albdour 13

Definitions: Total Quality Management has many definitions. Gurus of the total quality management discipline like Deming, Juran, Crosby, Ishikawa and Feigenbaum defined the concept in different ways but still the essence and spirit remained the same. According to Deming, quality is a continuous improvement process towards predictable degree of uniformity and dependability. Deming also identified 14 principles of quality management to improve productivity and performance of the organization. Juran defined quality as “fitness for use. ” According to him, every person in the organization must be involved in the effort to make products or services that are fit for use. Dr. ali albdour 14

Proverbs- book There are really only three types of people: 1. those who make things happen, 2. those who watch things happen, 3. and those who say, “What happened? ” Dr. ali albdour 15

• WHAT IS Quality……. . ? Dr. ali albdour 16

What is Quality- Chapter 1 - book WHAT IS QUALITY? To understand total quality, we must first understand quality. Customers that are businesses will define quality very clearly using specifications, standards, and other measures. This makes the point that quality can be defined and measured. Although few consumers could define quality if asked, all know it when they see it. This makes the critical point that quality is in the eye of the beholder. With the total quality approach, customers ultimately define quality. People deal with the issue of quality continually in their daily lives. We concern ourselves with quality when grocery shopping, eating in a restaurant, and making a major purchase such as an automobile, a home, a television, or a personal computer. Perceived quality is a major factor by which people make distinctions in the marketplace. Whether we articulate them openly or keep them in the back of our minds, we all apply a number of criteria when making a purchase. The extent to which a purchase meets these criteria determines its quality in our eyes. Dr. ali albdour 17

Example-book One way to understand quality as a consumer-driven concept is to consider the example of eating at a restaurant. How will you judge the quality of the restaurant? Most people apply such criteria as the following: ü Service ü Response time ü Food preparation ü Environment or atmosphere ü Price ü Selection Dr. ali albdour 18

From preceding example: book • This example gets at one aspect of quality—the results aspect. Does the product or service meet or exceed customer expectations? This is a critical aspect of quality, but it is not the only one. Total quality is a much broader concept that encompasses not just the results aspect but also the quality of people and the quality of processes. Quality has been defined in a number of different ways by a number of different people and organizations. Consider the following definitions: • ■ Fred Smith, CEO of Federal Express, defines quality as “performance to the standard expected by the customer. ” 1 • ■ The General Services Administration (GSA) defines quality as “meeting the customer’s needs the first time and every time. ” 2 • ■ Boeing defines quality as “providing our customers with products and services that consistently meet their needs and expectations. ” 3 • ■ The U. S. Department of Defense (DOD) defines quality as “doing the right thing right the first time, always striving for improvement, and always satisfying the customer. ” 4 Dr. ali albdour 19

Definitions: Crosby defines quality as conformance to requirements. His focus has been on zero defects and doing it right the first time. Ishikawa also emphasized importance of total quality control to improve organizational performance. According to him quality does not only mean the quality of product, but also of after sales service, quality of management, the company itself and the human life. Feigenbaum defined total quality as a continuous work processes, starting with customer requirements and ending with customer’s satisfaction. Dr. ali albdour 20

Definitions-book: In his landmark book Out of the Crisis, quality pioneer W. Edwards Deming has this to say: Quality can be defined only in terms of the agent. Who is the judge of quality? In the mind of the production worker, he produces quality if he can take pride in his work. Poor quality, to him, means loss of business, and perhaps of his job. Good quality, he thinks, will keep the company in business. Quality to the plant manager means to get the numbers out and to meet specifications. His job is also, whether he knows it or not, continual improvement of leadership. 5 Dr. ali albdour 21

Definition-book Ishikawa’s Definition of Quality Any discussion of the Japanese quality gurus must include Ishikawa defines quality as follows: (1) quality and customer satisfaction are the same thing: and (2) quality is a broad concept that goes beyond just product quality to also include the quality of people, processes, and every other aspect of the organization. Dr. ali albdour 22

Quality & similarity-book Although there is no universally accepted definition of quality, enough similarity does exist among the definitions that common elements can be extracted: 1. Quality involves meeting or exceeding customer expectations. 2. Quality applies to products, services, people, processes, and environments. 3. Quality is an ever-changing state (i. e. , what is considered quality today may not be good enough to be considered quality tomorrow). Dr. ali albdour 23

Quality, Value, and Organizational Excellence-book It is important for quality professionals to understand how quality fits into the bigger picture of providing superior value to customers. Organizations survive and thrive in a globally competitive marketplace by providing superior value to customers. Achieving organizational excellence is about developing the ability to consistently provide superior value to customers over the long term. Superior value has three basic elements: superior quality, superior cost, and superior service. In order to achieve organizational excellence—the level of performance necessary for long- term success in a global environment—it is necessary to consistently provide superior value to customers. Quality is obviously one of the key elements in providing superior value. But total quality is even more than that. Total quality is a broad-based approach that encompasses all three of the elements of superior value. Continually improving the quality of products, processes, services, and costs is what total quality is all about—hence the name total quality. Organizations that effectively apply the total quality approach to management are the ones most likely to achieve organizational excellence Dr. ali albdour 24

What is Total Quality (TQ)? Dr. ali albdour 25

THE TOTAL QUALITY APPROACH DEFINED- book Just as there are different definitions of quality, there are different definitions of total quality. For example, the DOD defines the total quality approach as follows: • TQ consists of continuous improvement activities involving everyone in the organization—managers and workers—in a totally integrated effort toward improving performance at every level. This improved performance is directed toward satisfying such cross -functional goals as quality, cost, schedule, mission need, and suitability. TQ integrates fundamental management techniques, existing improvement efforts, and technical tools under a disciplined approach focused on continued process improvement. The activities are ultimately focused on increased customer/user satisfaction. 8 Dr. ali albdour 26

Historical Background-book The total quality movement had its roots in the time and motion studies conducted by Frederick Taylor in the 1920 s. Table 1– 1 is a timeline that shows some of the major events in the evolution of the total quality movement since the days of Taylor is now known as “the father of scientific management. ” Dr. ali albdour 27

History…book Table 1– 1 Selected Historic Milestones in the Quality Movement in the United States Year Milestone • 1911 Frederick W. Taylor publishes The Principles of Scientific Management, giving birth to such techniques as time and motion studies. • 1931 Walter A. Shewhart of Bell Laboratories introduces statistical quality control in his book Economic Control of Quality of Manufactured Products. • 1940 W. Edwards Deming assists the U. S. Bureau of the Census in applying statistical sampling techniques. • 1941 W. Edwards Deming joins the U. S. War Department to teach quality control techniques. • 1950 W. Edwards Deming addresses Japanese scientists, engineers, and corporate executives on the subject of quality. • 1951 Joseph M. Juran publishes the Quality Control Handbook. • 1961 Martin Company (later Martin-Marietta) builds a Pershing missile that has zero defects. Dr. ali albdour 28

Table 1– 1 • 1970 Philip Crosby introduces the concept of zero defects. • 1979 Philip Crosby publishes Quality Is Free. • 1980 The television documentary If Japan Can. . . Why Can’t We? airs, giving W. Edwards Deming renewed recognition in the United States. • 1981 Ford Motor Company invites W. Edwards Deming to speak to its top executives, which begins a rockybut productive relationship between the automaker and the quality expert. 1982 W. Edwards Deming publishes Quality, Productivity, and Competitive Position. • 1984 Philip Crosby publishes Quality Without Tears: The Art of Hassle-Free Management. • 1987 • The U. S. Congress creates the Malcolm Baldrige National Quality Award. • • Motorola introduces the Six Sigma method. • 1988 Secretary of Defense Frank Carlucci directs the U. S. Department of Defense to adopt total quality. • 1989 Florida Power and Light wins Japan’s coveted Deming Prize, the first non-Japanese company to do so. • 1993 The total quality approach is widely taught in U. S. colleges and universities. • 2000 The ISO 9000 standard is rewritten to incorporate total quality concepts. • 2001 E-commerce (information quality) and mass customization are important considerations. • 2009 Six Sigma and Lean are widely practiced concepts. Dr. ali albdour 29

• The Deming Cycle- book Summarized in Figure 1– 3, the Deming Cycle was developed to link the production of a product with consumer needs and focus the resources of all departments (research, design, production, marketing) in a cooperative effort to meet those needs. The Deming Cycle proceeds as follows: 1. Conduct consumer research and use it in planning the product (plan). 2. Produce the product (do). 3. Check the product to make sure it was produced in accordance with the plan (check). 4. Market the product (act). 5. Analyze how the product is received in the marketplace in terms of quality, cost, and other criteria (analyze). Dr. ali albdour 30

PDCA Cycle 1. Plan 4. Act Identify problem and develop plan for improvement. Institutionalize improvement; continue cycle. How to improve next time? What to do? How to do? 3. Study/Check 2. Do Assess plan; is it working? Implement plan on a test basis. Things as per plan? Do as planned Dr. ali albdour 31

Deming Circle For Quality Improvement: Dr. ali albdour 32

Deming’s 14 Points v Deming offered 14 key principles for management to follow for significantly improving the effectiveness of a business or organization 1. Create constancy of purpose for improvement 2. Adopt a new philosophy 3. Cease dependence on mass inspection 4. Do not award business on price alone 5. Work continually on the system of production and service 6. Institute modern methods of training 7. Institute modern methods of supervision of workers 8. Drive out fear 9. Break down barriers between departments 10. Eliminate slogans, exhortations, and targets for the work force 11. Eliminate numerical quotas 12. Remove barriers preventing pride of workmanship 13. Institute a vigorous program of education and retraining 14. Take action to accomplish the transformation Dr. ali albdour 33

Deming’s Deadly Diseases Deming’s seven deadly diseases of Management describe the most serious barriers that management faces to improving effectiveness and continual improvement. 1 - Lack of constancy of purpose. 2. Emphasis on short-term profits. 3. Evaluation of performance, merit rating, or annual review. 4. Mobility of management. 5. Running a company on visible figures alone. 6. Excessive medical costs for employee health care. 7. Excessive costs of warranties. Dr. ali albdour 34

Juran’s Trilogy • Systematic approach to carrying out Juran s methodology for managing for quality. • Active leadership, starting at the top, is essential • Consists of three interrelated qualityoriented processes— – quality planning, – quality control, and – quality improvement Dr. ali albdour 35

Juran Trilogy – Relevant Activites • • Identifying customers , Establishing measurements, and Diagnosing causes. Juran compares the activities of the trilogy with those of financial operations. Money is the language of management and, in his terms, quality planning is analogous to budgeting, quality control to cost control, and quality improvement to cost reduction. Dr. ali albdour 36

The Pareto Principle- book The Pareto principle, named after economist Vilfredo Pareto, is more commonly known in quality circles as the 80/20 rule. This rule is used variably to contend that 80% of the quality issues in an organization are caused by 20% of the problems or that 80% of the problems can be traced to a few critical sources (the 20%). Joseph Juran is credited with applying what was originally an economic principle to management and quality. He advised organizations to focus the bulk of their improvement efforts on identifying and eliminating these few critical sources of problems. Dr. ali albdour 37

Quality Control- & Q improvement-book Quality Control The control of quality involves the following processes: 1. Assess actual quality performance. 2. Compare performance with goals. 3. Act on differences between performance and goals. Quality Improvement The improvement of quality should be ongoing and continual: 1. Develop the infrastructure necessary to make annual quality improvements. 2. Identify specific areas in need of improvement, and implement improvement projects. 3. Establish a project team with responsibility for completing each improvement project. 4. Provide teams with what they need to be able to diagnose problems to determine root causes, develop solutions, and establish controls that will maintain gains made. Dr. ali albdour 38

Obstacles to the Success of Total Quality- book Researchers identified five obstacles commonly inhibit the success that organizations experience when attempting to adopt the total quality model: (1) inadequate human resource development and management, (2) lack of planning for quality, (3) lack of leadership for quality, (4) inadequate resources for quality, and (5) lack of customer focus. Dr. ali albdour 39