Total Quality Management TQM The quality journey continues

Total Quality Management - TQM The quality journey continues……. . Author: Dr Rhys Rowland-Jones Standards in Action www. bsieducation. org/standardsinaction

Total Quality Management - TQM Session Plan • • Introduction to concepts of TQM Standards and TQM Reasons for failure Measurement of Quality Standards in Action www. bsieducation. org/standardsinaction

Total Quality Management - TQM Total Quality Management • TQM is a philosophy which applies equally to all parts of the organization. • TQM can be viewed as an extension of the traditional approach to quality. • TQM places the customer at the forefront of quality decision making. • Greater emphasis on the roles and responsibilities of every member of staff within an organization to influence quality. • All staff are empowered. Standards in Action www. bsieducation. org/standardsinaction

Total Quality Management - TQM Total Quality Management Doing things right…. . …. FIRST time. Standards in Action www. bsieducation. org/standardsinaction Internetix (2005)

Total Quality Management - TQM British Standards on TQM BS 7850 -1: 1992 • Total quality management. Guide to management principles. BS 7850 -2: 1994, ISO 9004 -4: 1993 • Total quality management. Guidelines for quality improvement. Standards in Action www. bsieducation. org/standardsinaction

Total Quality Management - TQM Elements of TQM • Leadership – Top management vision, planning and support. • Employee involvement – All employees assume responsibility for the quality of their work. • Product/Process Excellence – Involves the process for continuous improvement. Standards in Action www. bsieducation. org/standardsinaction

Total Quality Management - TQM Elements of TQM • Continuous Improvement – A concept that recognizes that quality improvement is a journey with no end and that there is a need for continually looking for new approaches for improving quality. • Customer Focus on “Fitness for Use” – Design quality • Specific characteristics of a product that determine its value in the marketplace. – Conformance quality • The degree to which a product meets its design specifications. Standards in Action www. bsieducation. org/standardsinaction

Total Quality Management - TQM A fundamental concept of TQM from BS 7850 - a ‘Process’ • “A set of inter-related resources and activities which transform inputs into outputs. ” (ISO 8402). • “Any activity that accepts inputs, adds values to these inputs for customers, and produces outputs for these customers. The customers may be either internal or external to the organization. ” (BS 7850) Standards in Action www. bsieducation. org/standardsinaction

Total Quality Management - TQM "The Simple Process" Controls Inputs Process Outputs Resources (Source: BS 7850: 1992, “Total Quality Management”) Standards in Action www. bsieducation. org/standardsinaction

Total Quality Management - TQM Changing Role of the Process Owner Process 1 Input from supplier As customer Process owner Process 1 Output As supplier Input As customer Process owner As supplier Output to customer (Source: BS 7850: 1992, “Total Quality Management”) Standards in Action www. bsieducation. org/standardsinaction

Total Quality Management - TQM & organizational Cultural Change Traditional Approach TQM Lack of communication Open communications Control of staff Empowerment Inspection & fire fighting Prevention Internal focus on rule External focus on customer Stability seeking Continuous improvement Adversarial relations Co-operative relations Allocating blame Solving problems at their roots Standards in Action www. bsieducation. org/standardsinaction

Total Quality Management - TQM Expectations > perceptions Expectations = perceptions Perceived quality is poor Customers’ perceptions of the product or service Expectations < perceptions Perceived quality is good Standards in Action www. bsieducation. org/standardsinaction Customers’ expectations for the product or service Gap Customers’ perceptions of the product or service Customers’ expectations of the product or service Gap Customers’ perceptions of the product or service Customers’ expectations for the product or service Perceived quality is governed by the gap between customers’ expectations and their perceptions of the product or service Source: Slack et al. 2004

Total Quality Management - TQM Additional views of Quality in Services • Technical Quality versus Functional Quality – Technical quality — the core element of the good or service. – Functional quality — customer perception of how the good functions or the service is delivered. • Expectations and Perceptions – Customers’ prior expectations (generalized and specific service experiences) and their perception of service performance affect their satisfaction with a service. • Satisfaction = (Perception of Performance) – (Expectation) Standards in Action www. bsieducation. org/standardsinaction

Total Quality Management - TQM Previous Experience Word of mouth communications Image of product or service Customer’s perceptions concerning the product or service Customer’s expectations concerning a product or service A “Gap” model of Quality Gap 4 Customer’s own specification of quality Gap 1 organization’s specification of quality Management’s concept of the product or service The actual product or service Gap 3 Gap 2 Standards in Action www. bsieducation. org/standardsinaction Source: Parasuraman, Zeithman and Berry. 1985

Total Quality Management - TQM Continuous Improvement • Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs. • Kaizen: Japanese word for continuous improvement. Standards in Action www. bsieducation. org/standardsinaction

Total Quality Management - TQM Implementing TQM • Successful Implementation of TQM – Requires total integration of TQM into day-to-day operations. • Causes of TQM Implementation Failures – Lack of focus on strategic planning and core competencies. – Obsolete, outdated organizational cultures. Standards in Action www. bsieducation. org/standardsinaction

Total Quality Management - TQM Obstacles to Implementing TQM • • • Lack of a company-wide definition of quality. Lack of a formalized strategic plan for change. Lack of a customer focus. Poor inter-organizational communication. Lack of real employee empowerment. Lack of employee trust in senior management. View of the quality program as a quick fix. Drive for short-term financial results. Politics and turf issues. Standards in Action www. bsieducation. org/standardsinaction

Total Quality Management - TQM Some criticisms of TQM 1. 2. 3. 4. Blind pursuit of TQM programs Programs may not be linked to strategies Quality-related decisions may not be tied to market performance Failure to carefully plan a program Standards in Action www. bsieducation. org/standardsinaction

Total Quality Management - TQM Performance PDCA Cycle repeated to create continuous improvement Plan Act Do Check “Continuous” improvement Standards in Action www. bsieducation. org/standardsinaction Time

Total Quality Management - TQM Recognizing and rewarding Quality • Promotion of high quality goods and services – Malcolm Baldrige National Quality Award (MBNQA) (United States) – Deming Prize (Japan) – European Quality Award (European Union) – ISO 9000 certification Standards in Action www. bsieducation. org/standardsinaction

Total Quality Management - TQM The integrated framework of the Baldrige Award criteria Source: 2004 Criteria for Performance Excellence, U. S. Dept. of Commerce, Baldrige National Quality Program, National Institute of Standards and Technology, Gaithersburg, MD 20899. ( www. quality. nist. gov) Standards in Action www. bsieducation. org/standardsinaction

Total Quality Management - TQM Continual improvement of the quality management system Customers (and other interested parties) Management responsibility Measurement, analysis and improvement Resource management Satisfaction Requirements Input Key: Value adding activity information flow Product realisation Product Output Standards in Action www. bsieducation. org/standardsinaction Source: BS EN ISO 9001: 2000

Total Quality Management - TQM Overview of the EFQM Excellence Model Standards in Action www. bsieducation. org/standardsinaction

Total Quality Management - TQM Quality Award common elements • • • All take holistic approach Customers/people Measurable characteristics Visible Basis taken from TQM Standards in Action www. bsieducation. org/standardsinaction

Total Quality Management - TQM Summary • • TQM – a way of working Involves everyone High prominence on ‘customer’ Awards based upon TQM Standards in Action www. bsieducation. org/standardsinaction