TOTAL QUALITY MANAGEMENT TQM Total Quality Management n

TOTAL QUALITY MANAGEMENT (TQM)

Total Quality Management n n n 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.

Elements of TQM n Leadership n n Employee involvement n n Top management vision, planning and support. All employees assume responsibility for the quality of their work. Product/Process Excellence n Involves the process for continuous improvement.

Elements of TQM n Continuous Improvement n n 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” n Design quality n n Specific characteristics of a product that determine its value in the marketplace. Conformance quality n The degree to which a product meets its design specifications.

A fundamental concept of TQM n n “A set of inter-related resources and activities which transform inputs into outputs. ” “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. ”

DIMENSIONS OF QUALITY OR QUALITY CHARACTERISTICS what the customer looks in a product. DIMENSIONS OF QUALITY FOR PRODUCTS & SERVICES Performance Features Reliability Conformance Durability Serviceability

THE COST OF QUALITY PREVENTION COSTS Quality planning costs Product design costs Process costs Training costs Information costs

THE COST OF QUALITY (CONT. ) INTERNAL FAILURE COSTS Scrap costs Rework costs Process failure costs Process downtime costs Price reduction

THE COST OF QUALITY (CONT. ) EXTERNAL FAILURE COSTS Customer complaint costs Product return costs Warranty claim costs Product liability costs Lost sales costs

TQM PRINCIPLES Customer-defined quality Management leadership toward quality Strategic quality planning Employee responsibility Continuous quality improvement Cooperation between the employees and the management Use of statistical quality control Training

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

Gap Expectations > perceptions Expectations = perceptions Perceived quality is poor Source: Slack et al. 2004 Gap Customers’ perceptions of the product or service Customers’ expectations for the product or service Customers’ perceptions of the product or service Customers’ expectations of the product or service 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 Expectations < perceptions Perceived quality is good

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 Source: Parasuraman, Zeithman and Berry. 1985

1. Pareto Chart A method for identifying causes of poor quality No. of Occurrences per Month 100 80 60 40 20 ABC Classification of Defects Group A: Critical Defects Group B: Moderate Defects Group C: Minor Defects ประเภทขอบกพร

2. A Process Chart A diagram showing job operations or a process Brush Body Fibers Fill Box Trim Make Inspect Plastic Sheet Insert Close Wrap Inspect Master Box Fold Up Reserve Pallet Master Pack Stack Deliver

Obstacles to Implementing TQM Lack of a company-wide definition of quality. n Lack of a formalized strategic plan for change. n Lack of a customer focus. n Poor inter-organizational communication. n Lack of real employee empowerment. n Lack of employee trust in senior management. n View of the quality program as a quick fix. n Drive for short-term financial results. n Politics and turf issues. n

Performance PDCA Cycle repeated to create continuous improvement Plan Act Do Check “Continuous” improvement Time

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 Source: BS EN ISO 9001: 2000

3. A Check Sheet A list of causes of quality problems with the number of defects resulting from each cause Defects 1 2 3 Cracks Dents / / Hairlines // / / // Hour 4 5 6 / / 7 /// //// 8 / /

4. A Histogram No. of Occurrences A bar chart showing the frequency of occurrence of causes of defects Dispersion Length

5. A Scatter Diagram A graph showing how two process variables relate to each other Productivity Absentees

6. A Control Chart and Statistical Process Control (SPC) Monitoring of a production process using the statistical quality control technique UCL LCL

7. A Fishbone Diagram A chart showing the different categories of problem causes. Causes Materials Method Effect Quality Problems Manpower Machine