Quality Management

1
Quality Management

• TQM, Six Sigma, ISO

2
Quality

• Quality is concerned with quality assurance and
  process improvement in manufacturing and service
  sectors (including the public sector).
• the use of sound measurement methods, statistical
  analysis and process improvement techniques to
  significantly improve quality on the shop floor
  and in manufacturing and service (etc) planning.

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Quality management

• Quality management is concerned with compliance
  with quality standards, certification and
  compliance

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Total Quality Management - TQM

• popular "quality management" concept.
• assuring product or service quality.
• business philosophy - a way of doing business.
• describes ways to managing people and business
  processes to ensure complete customer
  satisfaction at every stage.
• often associated with the phrase - "doing the
  right things right, first time".

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Main features of TQM

• views quality entirely from the point of view
  of the customer.
• All businesses have many types of customer.
• customer can be someone "internal" to the
  business (e.g. a production employee working at
  the end of the production line is the "customer"
  of the employees involved earlier in the
  production process).

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Customers...

• customer can also be external to the business.
• normal customers.
• When you fly with an airline you are their
  customer.
• When Tesco's buys products from food
  manufacturers, it is a customer.
• TQM recognises that all businesses require
  "processes" that enable customer requirements to
  be met.

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TQM focus...

• TQM focuses on the ways in which these processes
  can be managed - with two key objectives
• 1 100 customer satisfaction
• 2 Zero defects

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Importance of Customer - Supplier Relationships -
Quality Chains

• TQM focuses on importance of relationship between
  customers (internal and external) and supplier.
• These are "quality chains which can be broken at
  any point by one person or one piece of equipment
  not meeting the requirements of the customer.
• Failure to meet requirements in any part of
  quality chain multiplies, and failure in one part
  of system creates problems elsewhere, leading to
  yet more failure and problems, and so the
  situation is exacerbated.

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Customers

• ability to meet customers (external and
  internal) requirements is vital.
• To achieve quality throughout organisation, every
  person in quality chain needs training to ask
  following questions about every customer-supplier
  chain
• Customers Who are my customers? What are
  their real needs and expectations? How can I
  measure my ability to meet their needs and
  expectations?

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Questions...

• Do I have the capability to meet their needs
  and expectations? (If not, what must I do to
  improve this capability?)
• Do I continually meet their needs and
  expectations? (If not, what prevents this from
  happening when the capability exists?)
• How do I monitor changes in their needs and
  expectations?

11
Suppliers

• Who are my internal suppliers? What are my
  true needs and expectations? How do I
  communicate my needs and expectations to my
  suppliers? Do my suppliers have the capability
  to measure and meet these needs and
  expectations? How do I inform them of
  changes in my needs and expectations?

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Main Principles of TQM

• The main principles underlying TQM are summarised
  below
• Prevention Prevention is better than cure. In the
  long run, it is cheaper to stop products defects
  than trying to find them
• Zero defects The ultimate aim is no (zero)
  defects - or exceptionally low defect levels if a
  product or service is complicated
• Getting things right first time Better not to
  produce at all than produce something defective

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Quality/CI/Involvement

• Quality involves everyone Quality not just
  concern of production or operations department -
  involves everyone, including marketing, finance
  and human resources
• Continuous improvement Businesses always
  looking for ways to improve processes to help
  quality
• Employee involvement Those in production and
  operations have vital role to play in spotting
  improvement opportunities for quality and
  identifying quality problems

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Introducing TQM into a Business

• TQM not an easy concept to introduce into
  businesses - particularly those not traditionally
  concerned with understanding customer needs and
  business processes.
• In fact - many attempts to introduce TQM fail!
• One of reasons for challenge of introducing TQM
  is that it has significant implications for the
  whole business.

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Involvement, but...

• For example, it requires that management give
  employees a say in the production processes that
  they are involved in.
• In a culture of continuous improvement, workforce
  views are invaluable.
• The problem is - many businesses have barriers to
  involvement.
• For example, middle managers may feel that their
  authority is being challenged.

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Empowerment

• So "empowerment" is a crucial part of TQM.
• The key to success is to identify the management
  culture before attempting to install TQM and to
  take steps to change to the new required
  management style.
• Since culture is not the first thing that
  managers think about, this step has often been
  missed or ignored with resultant failure of a TQM
  strategy.

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TQM focus...

• TQM also focuses the business on the activities
  of the business that are closest to the customer
  - e.g. the production department, the employees
  facing the customer.
• This can cause resentment amongst departments
  that previously considered themselves above the
  shop floor.

18
ASQ...

• The American Society for Quality (ASQ) is an
  association for quality professionals.
• The organization focuses on customer
  satisfaction, root cause analysis and continual
  improvement
• The organization teaches the importance of stable
  top management support to drive continual
  improvement
• They are pushing Six Sigma and ISO 9000

19
ASQ...

• ASQ membership steeply rose from 1984 to 1995.
• during the Total Quality Management (TQM)
  movement.
• Times have changed, and the TQM movement probably
  does not fit anymore,
• but the ideas generated by the quality
  visionaries are timeless

20
ASQ focus...

• ASQ has a manufacturing focus
• It has developed programs to deploy quality in
  the healthcare industry with great success.
• Other areas such as engineering, project
  management, marketing and customer support offer
  opportunities for ASQ

21
ISO 9000

• ISO 9000 is the international standard for
  quality management,
• It is becoming a worldwide standard.
• December 2001 there were more than 510,616
  businesses certified in 161 countries.
• The 10 industrialized nations accounted for
  nearly 62 of that total

22
ISO 9000 certification

• Certification/registration takes place when an
  independent and competent body certifies that a
  product, process, service or system conforms to
  specific requirements.
• With ISO 9000, registration and certification are
  used interchangeably, and bodies that issue
  conformity certificates are referred to as
  registrars in the USA, and elsewhere as
  certification or registration bodies.

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ISO 9000 registration

• Since the registrar is independent of both the
  organization seeking certification (the first
  party) and its customers (second parties),
• the registration process is known as third-party
  assessment,
• and its value is based on the proven competence
  of the registrar.

24
Known brands...

• multinational organizations normally prefer known
  brand names such as Bureau Veritas (France),
  Lloyd's Register (UK), SGS (Switzerland), T
  (Germany) or American National Standards
  Institute (United States)
• smaller companies may prefer local registrar,
  able to provide a more personalized service.
• organizations shopping for a registrar should
  consider the following factors

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Factors in choosing a registrar

• Price. Some registrars base their rates on the
  organization size while others may charge a daily
  rate.
• Location. Registrar located close to the
  organization preferred to a distant registrar.
• Compatibility. Is registrar familiar with nature
  of organization's business and comfortable with
  its culture?

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Prior to Audit

• prior to an on-site audit
• a review of the company's quality manual to see
  whether it meets requirements.
• Organisations need to ensure any issues raised by
  the auditor are addressed by either changing
  procedures or documents
• Preassessment. Organisation pays for practice
  audit. Registrar can be directed to areas that
  the company wants covered to address potential
  weak points.

27
European and US documentation

• European documentation procedures tend to be more
  elaborate, so organisations spend more, on
  average, on ISO 9000 implementation than American
  companies.
• Approx 3 times more?
• For many years, the Japanese evinced little
  interest in ISO 9000 registration, preferring the
  total quality management (TQM) approach with a
  focus on continuous improvement.

28
Revised ISO 9000

• ISO's revised ISO 9000 2000 incorporated TQM
  principles and is changing the thinking process.
• Intended to be applicable to all organizations,
  regardless of type, size or product category.
• Is a move from conformance thinking to
  performance thinking.
• Old standard presence of 20 elements was
  evaluated now it must be determined whether the
  processes are effective.

29
ISO and Deming

• It has been recommended that companies use Dr. W.
  Edwards Deming's built-in "plan-do-check-act"
  cycle in the procedure
• to establish a plan and then take corrective
  measures when quality results such as warranty
  costs or defects exceed set objectives.
• Thus, the standard is moving organizations toward
  Japanese-style continuous improvement.

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Measuring customer satisfaction

• Another requirement is measuring customer
  satisfaction.
• Most US companies developing questionnaires to
  assess whether customers are satisfied with
  products and services.
• European registrars are wary of paperwork created
  by questionnaires, and some prefer instead to
  develop a set of indices to measure customer
  satisfaction.

31
Objective evidence

• "I just need objective evidence that customers
  have processes for assessing customer
  satisfaction, even if it means that they just
  record telephone calls made to customers,
  Cwiekowski, Great Western Registrar LLC
  (Phoenix)
• 90 of registered companies indicated they would
  make the transition to ISO 9001 2000 before the
  December 2003 deadline.

32
Malcolm Baldrige National Quality Award

• the Baldrige Program has produced a widespread
  positive impact on the quality performance of
  U.S. companies.
• The quality literature-- for example, J.M. Juran
  -- feel that the criteria used for judging the
  Baldrige competition have become the leading
  model defining the concepts of continuous
  improvement and total quality management (TQM).

33
Baldrige criteria

• the Baldrige criteria are widely used by
  companies nationwide to conduct self-audits, and
  to develop and guide their own TQM policies,
• whether they enter the competition or not.
• Been nearly two million requests for Baldrige
  application forms and criteria.

34
Successful companies tactics

• With a focused, rapid deployment of a Six Sigma
  plan, a major (US) financial services company was
  able to save 75 million in productivity
  benefits, reduce customer complaints by 29 and
  increase stock value by 52.

35
Leading companies...

• Leading companies establish internal quality
  awards to promote the benchmarking function.
• For example, one company honours an employee
  annually with its Quality Award.
• Recipients receive a celebration within their
  organization.

36
Top companies

• Top companies divide benchmarking data according
  to audience.
• For example, a leading telecom equipment
  manufacturer separates benchmarking information
  into administrative and technical categories.
• The administrative information is then posted on
  internal electronic message boards, whereas the
  technical information is more specifically
  targeted to key stakeholders.

37
The quality journey...

• The great leaders of the quality revolution of
  the 1980s focused on improving the
  competitiveness of American organizations and did
  all they could to spread the word.
• Many companies start a quality journey by
  latching onto a quality trend.
• Such as TQM

38
Quality trends, circles, ISO, ...

• Quality trends part of US business culture.
• But...
• Quality circles, total quality management (TQM),
• ISO, QS, Baldrige and now Six Sigma,
• have all had their day as the quality solution.
• Employees are tired of this years solution.
• Quality programs constantly change.

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Difficult...

• Difficult to develop quality system that can show
  significant resultsand without significant
  results, management loses support from employees.
  
• This is the case with Six Sigma, as with all
  previous repackaged quality programs

40
Quality-improvement methods and techniques

• There are tried-and-true quality-improvement
  methods and techniques
• Companies need to make them a part of the
  companys culture and stay focused on the tasks
  that lead to a healthier business, not the
  certificate on the wall or the colour of the
  belt.

41
Taguchi the Loss Function.

• Quality is the gap between how good something is
  and how good it possibly could be,
• and we should continually focus on narrowing that
  gap.
• the state of the quality profession is there a
  gap between what quality professionals are
  contributing and what they could be contributing
  to their organizations ?

42
Quality gap...

• focus of quality movement shifted away from the
  great quality visionaries.
• in their place is inappropriate level of
  attention to things such as ISO
• -- marketing driven, time consuming standard
  doing poor job assuring that companies meet a
  relatively low quality hurdle.
• Has quality profession evolved from being change
  agents to compliance officers?

43
Any Questions

• Taken from
• Quality Initiatives Increase Savings, Quality
  Magazine http//www.qualitymag.com/CDA/ArticleInf
  ormation/news/news_item/0,6407,119529,00.html
• About Quality, Quality Magazine http//www.qual
  itymag.com/FILES/HTML/QTY_about_us/1,6446,,00.html
  
• Probing the Limits Could Deming Have Been
  Wrong? , Quality Magazine http//www.qualitymag
  .com/qty/cda/articleinformation/features/bnp__feat
  ures__item/0,,102404,00en-uss_01dbc.html
• Six Sigma? No Thanks, Quality
  Magazine http//www.qualitymag.com/qty/cda/artic
  leinformation/features/bnp__features__item/0,,9948
  4,00en-uss_01dbc.html
• Probing the Limits Wake Up ASQ!, Quality
  Magazine http//www.qualitymag.com/qty/cda/arti
  cleinformation/features/bnp__features__item/0,,105
  764,00en-uss_01dbc.html
• ISO 9000 for a Small Planet, http//www.quality
  mag.com/qty/cda/articleinformation/features/bnp__f
  eatures__item/0,,98551,00en-uss_01dbc.html
• No Respect, Quality Magazine http//www.qualit
  ymag.com/qty/cda/articleinformation/features/bnp__
  features__item/0,,99000,00en-uss_01dbc.html
• Still Passionate for Quality?, Quality Magazine
  http//www.qualitymag.com/qty/cda/articleinforma
  tion/features/bnp__features__item/0,,98570,00en-u
  ss_01dbc.html
• tutur2u total quality management
  -tqm http//www.tutor2u.net/business/production/q
  uality_tqm.htm