The Total Quality Approach to Quality Management

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Chapter 1 The Total Quality Approachto Quality
Management
Course Instructor Dr. Syed M. Ahmed,
Ph.D. College of Engineering Computing Florida
International University, Miami, Florida
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Lecture Outline

• What is Quality?
• The Total Quality Approach
• Two Views of Quality
• Elements of Total Quality
• The Deming Cycle
• Jurans Contributions
• Crosbys Contributions
• Total Quality Efforts Succeed
• Six-Sigma Concept
• The Future of Quality Management

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What is Quality? (1)

• FEDEX - Performance to the standard expected by
  the customer
• General Services Administration - Meeting the
  customers need the first time and every time
• BOEING - Providing customers with products and
  services that consistently meet their needs and
  expectations.
• US Department of Defense - Doing the right thing
  right the first time, always striving for
  improvement, and always satisfying the customer.
• Quality can be defined in terms of the agent. Who
  is the judge of quality?

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What is Quality? (2)

• Quality involves meeting or exceeding customer
  expectations.
• Quality applies to products, services, people,
  processes, and environments.
• Quality is an ever-changing state (i.e., what is
  considered quality today may not be good enough
  to be considered quality tomorrow).

Quality is a dynamic state associated with
products, services, people, processes and
environments that meets or exceeds expectations.
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The Total Quality Approach (1)

• Total quality is an approach to doing business
  that attempts to maximize the competitiveness of
  an organization through the continual improvement
  of the quality of its products, services, people,
  processes and environments.

Customer focus
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The Total Quality Approach (2)

• Characteristics of the Total Quality
• Strategically based
• Customer focus (internal and external)
• Obsession with quality
• Scientific approach to decision making and
  problem solving
• Long-term commitment
• Teamwork
• Continual process improvement
• Education and training
• Freedom through control
• Unity of purpose
• Employee involvement and empowerment

Customer focus
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The Total Quality Approach (3)
Historic Development of Total Quality Approach
Customer focus
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The Total Quality Approach (4)
Japanese Strategies

• The upper managers personally take charge of
  leading the revolution.
• All levels and functions under go training in
  managing for quality.
• Quality improvement should be taken at a
  continuing, revolutionary pace.
• The workforce is enlisted in quality improvement
  through the Quality Control (QC) concept.

Customer focus
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Two Views of Quality (1)
Total Quality View
Traditional View

• Process performance defective parts per million
  produced.
• Continuous improvement of products, processes and
  people.
• Employees are empowered to think and make
  recommendations.
• At least 10 improvements per employee per year
• Focus on long term profits and continual
  improvement.

• Process performance defective parts per hundred
  produced.
• Focused on after-the-fact inspections of
  products.
• Employees are passive workers who followed
  orders.
• One improvement per year per employee
• Focus on short term profits

Customer focus
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Two Views of Quality (2)
Total Quality View
Traditional View
Productivity versus quality
Lasting productivity gains are made only as a
result of quality improvements.
Productivity and quality are always in conflict.
You cannot have both.
Customer focus
How quality is defined
Meeting customer specifications.
Satisfying customer needs and exceeding customer
expectations.




How quality is measured
Establishing an acceptable level of
nonconformance and measuring against the bench
mark.
Establishing high-performance bench marks for
customer satisfaction and then continually
improving performance.
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Two Views of Quality (3)
Total Quality View
Traditional View
How quality is achieved
Quality is determined by product design and
achieved by effective control techniques.
Quality is inspected into the product.
Customer focus
Attitude towards defects
Defects are an expected part of producing a
product.
Defects are to be prevented using effective
control systems.




Quality as a function
Quality is a separate function.
Quality should be fully integrated throughout the
organization, i.e. it should be every bodys
responsibility.
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Two Views of Quality (4)
Total Quality View
Traditional View
Responsibility for quality
80 quality problems are managements fault.
Employees are blamed for quality.
Customer focus
Supplier relationships
Supplier relationships are short term and cost
driven.
Supplier relationships are long term and quality
oriented.




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Elements of Total Quality (1)
Strategically Based

• Comprehensive strategic plan with following
  elements vision, mission, broad objectives and
  following activities
• Provides sustainable competitive advantage in the
  marketplace.

Customer Focus

• Customer is the driver.
• External customers define the quality of the
  product or service delivered.
• Internal customers define the quality of people,
  processes, and environment associated with the
  products or services.

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Elements of Total Quality (2)
Obsession with Quality

• All personnel at all levels approach all aspects
  of the job from the perspective of How can we do
  this better?.
• Good enough is never good enough.

Scientific Approach

• Hard data are used in establishing benchmarks,
  monitoring performance, and making improvements.
• Decision making and problem solving is based on
  scientific principals.

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Elements of Total Quality (3)
Long-term Commitment

• Quality improvement is NOT another management
  innovation but a whole NEW way of doing business
  that requires an entirely new corporate culture.

Teamwork

• Internal competitiveness vs. External
  competitiveness

Continual Process Improvement

• Continually improve systems (environments) where
  products are developed and services are delivered
  by people.

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Elements of Total Quality (4)
Education and Training

• Best way to improve people on a continual basis.
• Train hardworking people How to work smart?

Freedom through Control

• Involving and empowering employees to
  simultaneously bring more minds to bear on the
  decision-making process and increase the
  ownership employees feel about decisions that are
  made.
• Well-planned and carried-out controls (not loss
  of management control).

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Elements of Total Quality (5)
Unity of Purpose

• Internal politics have no place in a total
  quality organization, rather collaboration is the
  norm.
• Unity of purpose has nothing to do with Labor
  Unions.

Employee Involvement and Empowerment

• Basis for involving employees 1. to increase the
  likelihood of a good decision or a better plan
  2. to promote ownership of decisions by involving
  the people who will have to implement them.
• Empowerment means not just involving people but
  involving them in ways that give them a real
  voice.

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The Deming Cycle (1)

• Conduct consumer research and use it in planning
  the product (PLAN).
• Produce the product (DO).
• Check the product to make sure it was produced in
  attendance with the plan (CHECK).
• Market the product (ACT).
• Analyze how the product is received in the market
  in terms of quality, cost and other criteria
  (ANALYZE)

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Demings Fourteen Points (2)
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Demings Seven Deadly Diseases (3)
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Jurans Contributions (1)
Jurans Three Basic Steps to Progress
Jurans Ten Steps to Quality Improvement
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Jurans Contributions (2)
The Pareto Principle
80/20 Rule 80 of the trouble comes from 20 of
the problems.
The Juran Trilogy
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Jurans Contributions (3)
Quality Planning

• Determine who the customers are
• Identify customers needs.
• Develop products with features that respond to
  customer needs.
• Develop systems and processes that allow the
  organization to produce these features.
• Deploy the plans to operational levels.

Quality Control

• Assess actual quality performance.
• Compare performance with goals.
• Act on differences between performance and goals.

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Jurans Contributions (4)
Quality Improvement

• Develop the infrastructure necessary to make
  annual quality improvements.
• Identify specific areas in need of improvement,
  and implement improvement projects.
• Establish a project team with responsibility for
  completing each improvement project.
• Provide teams with what they need to be able to
  diagnose problems to determine root causes,
  develop situations, and establish control that
  will maintain gains made.

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Crosbys Contributions
Crosbys Quality Vaccine Ingredients

• Determination.
• Education.
• Implementation.

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Total Quality Efforts Succeed
The successful organizations avoid these errors

• Senior management delegation and poor leadership.
• Team mania.
• Deployment process.
• Taking a narrow, dogmatic approach.
• Confusion about the differences among education,
  awareness, inspiration, and skill building

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Six Sigma Concept (1)
A Six-step Protocol for Process Improvement

• Identify the product characteristics wanted by
  the customers.
• Classify the characteristics in terms of their
  criticality.
• Determine if the classified characteristics are
  controlled by part and/or process.
• Determine the maximum allowable tolerance for
  each classified characteristic.
• Determine the process variation for each
  classified characteristic.
• Change the design of the product, process, or
  both to achieve a Six Sigma processes performance.

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Six Sigma Concept (2)
Histogram of a 3-Sigma Process
Histogram of a 6-Sigma Process
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Six Sigma Concept (3)
What is Six Sigma?
Six Sigma is an extension of total quality
management which has the aim of taking process
and product quality to levels where all customer
requirements are met.
How is Six Sigma Achieved?

• By improving process performance.
• Or, Without improving the process at all if the
  specifications describing acceptable product can
  be loosened enough to correspond to the original
  processs 6 sigma points.

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Six Sigma Concept (4)
Histogram of a 6-sigma process achieved by
broadening the specification range for product
acceptability
Histogram is shifted 1½ Sigma from its ideal
position to account for long-term variation.
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The Future of Quality Management (1)
Future Trends

• Demanding global customers.
• Shifting customer expectations.
• Opposing economic pressures.
• New approaches to management.

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The Future of Quality Management (2)
Quality Management Characteristics for the Future

• A total commitment to continually increasing
  value for customers, investors, and employees.
• A firm understanding that quality is defined by
  customers, not the company.
• A commitment to leading people with a bias for
  continuous improvement and communication.
• A recognition that sustained growth requires the
  simultaneous achievement of four objectives all
  the time, forever (a) customer satisfaction, (b)
  cost leaderships, (c) effective human resources,
  and (d) integration with the supplier base.
• A commitment to fundamental improvement through
  knowledge, skills, problem solving and teamwork.

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Questions/Queries?