Historical Perspective of TQM

1
Historical Perspective of TQM

• Prior to 19th Century - Apprenticeships used to
  ensure good quality
• Early 20th Century - Western Electric Co. and
  American Bell Telephone (ATT) commit to
  inspection of telephone networking equipment
• 1920s - Shewart introduces control charts
• 1940s - Military requires sampling inspection
  plans developed by Deming, Dodge, Romig, and
  Juran
• 1950s - Computers Introduced
• 1980s - Malcolm Baldrige Award, ISO 9000,
  Statistical process control requirements

2
Total Quality Management

• A new, more powerful technology of management,
  often called... A Thought Revolution in
  Management
• A management philosophy which uses appropriate
  tools to increase and improve decision-making
  capabilities
• Focuses on the process, not just the results
• Continuous improvement rather than management by
  exception

3
Total Quality Management

• Participative and Inclusive. Seeks ideas from all
  sources and emphasizes that everyone is
  responsible for improving quality.
• Small group improvement activities (i.e.
  employees in new relationships with each other)
• Active suggestion systems (i.e. employees in new
  relationships with the process)
• Customer (i.e. employees in new relationships
  with the customer)
• Most effective when management leads the way with
  Follow Me... examples. Managers act as role
  models and leaders to emphasize culture of
  problem solving.

4
Total Quality Management

• Recognize Customer Satisfaction is top priority
  in all business aspects
• Understand the real economics of merely
  conforming to requirements vs. continuous
  improvement
• Treat problems as opportunities for improvement
• Use TQM tools to
• Solve rather than manage problems
• Identify Special vs. Common causes before
  taking action

5
The Meaning of Quality
Producers Perspective
Consumers Perspective
Quality of Conformance
Quality of Design
Production
Marketing

• Quality characteristics
• Price

• Conformance to
• specifications
• Cost

Fitness for Consumer Use
6
Failure Costs

• Cost of Internal Failure
• Rework
• Scrap
• Repair
• Cost of External Failure
• Warranty
• Product Liability
• Image

7
Conformance Costs

• Cost of Appraisal
• Inspection
• Testing
• Cost of Prevention
• Process Control
• Worker Training
• Maintenance

8
Two Views of Quality Related Costs

• The Economic Quality Level (EQL) suggests that as
  quality improves, conformance costs will increase
  faster than failure costs will decrease.
• The Zero Defects (ZD) concept suggests that as
  quality improves, conformance costs will increase
  slower than failure costs will decline.

9
Quality Related Costs

• As quality improves
• How rapidly do failure costs decrease?
• How rapidly do conformance costs increase?
• The more you try to inspect in quality the
  higher appraisal costs will be.
• Statistical Process Control has the same
  effective cost regardless of the underlying
  quality level.

10
Variation

• Variation is a primary cause of quality problems.
• TQM includes use of techniques for identifying
  and eliminating variation.
• The goal of SPC is to assess when the variation
  in a process is changing.

11
The Deming Wheel(or P-D-C-A Cycle)
Identify problem Develop plan for improvement
1. Plan
Institutionalize improvement Continue cycle
4. Act
Implement plan on test basis
2. Do
3. Study / Check
Is the plan working
12
Methods of Reducing Variation

• Standardize Parts
• Simplify Procedures
• Go / No Go Gauges
• Alignment Pins
• Shingo Systems
• prevent likely errors by making them readily
  detectable
• Poke-a-yoke systems