Total Quality Management Instructor: Hank Sobah

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Total Quality ManagementInstructor Hank Sobah

• Quality Basics

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Elements of a Quality System

• Quality offers organizations significant
  opportunities for improvement, including
• reduced costs
• increased sales
• better performance to schedule
• more satisfied customers.
• A successful quality system does more than ensure
  the quality of products and services it drives
  vigorous operations and leads to a healthy bottom
  line.

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Elements of a Quality System

• Successful quality systems share
• basic common elements
• Management, Customer Focus
• Design, Purchasing, Production
• Education and Training, Statistics
• Participative Management, Technology
• Quality Cost, Auditing
• Ongoing Improvement

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Management

• A quality system cannot succeed
• without the active and continuous involvement of
  line and staff managers.
• Successful quality systems require a partnership
  in responsibility for improving quality and
  achieving results.
• Everyone shares the responsibility for quality

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Customer Focus

• Every organization needs to know its customers.
  Successful organizations tell customers what
  their products are supposed to doand then ask
  them how well the products performed.

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Design

• Quality has to be designed into a product or
  service. An organization can only do that by
  bringing design and development personnel in on
  the quality effort along with marketing,
  production, and customer support.

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Purchasing

• Suppliers are partners, not adversaries in the
  quality effort.
• Smart organizations evaluate a suppliers price
  and quality, and, if necessary, help them improve
  their quality system.

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Production

• Production equals people working with processes
  to produce goods and services.
• Employees need training, tools, and clear work
  instructions to efficiently produce high quality
  designs.

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Education and Training

• Everyone has an influence on qualityline
  workers, middle management, support staff, and
  senior executives.
• They all benefit from training in the principles
  of quality.

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Participative Management

• Providing skills and training is not enough
  managers must encourage staff to solve problems
  independently.
• Managers needs to tap into a companys most
  valuable resource, employees, to boost
  productivity and cut costs.

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Statistics

• Decision makers need to know the risks involved
  in their decisions.
• Successful organizations know statistics can be
  the difference between failure and success in
  controlling processes and solving problems.

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Technology

• Advances in computerization and robotics promise
  huge gains in productivity
• IF automated systems are not producing products
  that must be reworked.

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Quality Costs

• Organizations can spend money on quality by
  investing in good quality or by paying for poor
  quality.
• Successful ones invest in good quality because
  they know it costs much less over the long term.

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Auditing

• An effective quality audit provides companies
  with solid information about how people, systems,
  and products are performing in terms of quality.

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Ongoing Improvement

• The secret to success in quality is preventing
  problems.
• To help improve quality and prevent problems
  before they occur, quality teams can be
  established to bridge departmental barriers.

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Total Quality Management

• A management approach centered on quality
• Based on organization-wide participation
• Aimed at long-term success through customer
  satisfaction.
• TQM focuses on customers
• internal those within the organization, the
  next party in the work process
• external - end users, stakeholders, regulatory
  agencies.
• Customer Satisfaction Fluctuates so
• Continuous Improvement is critical to survival.
• Continuous Improvement applies to processes and
  the people who operate them as well as products.

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Total Quality Management (2)

• The plan-do-check-act (PDCA) cycle is
• Well-known model for continuous process
  improvement.
• A four-step process also referred to as the
  Shewhart cycle, the Deming cycle (for W. Edwards
  Deming), and the PDSA cycle (with the S standing
  for study).
• A Plan to effect improvement is developed.
• The plan is carried out, preferably on a small
  scale.
• The effects of the plan are observed.
• Results are studied to determine what was learned
  and what can be predicted.

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TQM Emphasizes Participation

• Every activity contributes to or detracts from
  quality and productivity. Leadership from
  management and employee involvement are crucial
  for success.
• Managements role in TQM is to develop a quality
  strategy aligned with organizational business
  objectives and based on customer and stakeholder
  needs. After that strategy is defined, managers
  must participate in its deployment regularly and
  at every level.
• Employee involvement can take several forms.
  Typically, quality improvement requires teams
  involving employees across functional boundaries.
  
• When employees are involved in quality, their
  organizations are more likely to make
  well-informed quality decisions and feel
  responsible for those decisions.
• Organizations empower employees by allowing them
  to make decisions that improve work processes
  within defined boundaries.

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Process Definition

• An activity or group of activities that takes an
  input, adds value through the use of resources,
  and provides an output to internal or external
  customers. The value added by a process comes in
  exchange for the resources it uses, including
  people, equipment, material, money, and time.

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Process Cycle Time

• The time it takes to complete a process from
  beginning to end. To a large degree, cycle time
  is a quality standard imposed by customers who
  expect products and services to be delivered on
  demand. Reducing cycle time helps eliminate
  costly rework and frees resources for other
  processes.

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Process - Variation

• All processes have variation caused by common or
  special causes. Unchecked variation can result in
  defects and customer dissatisfaction. Common
  causes result in normal process variation that
  can be improved only by a fundamental change in
  the process. Special (or assignable) causes are
  attributed to something outside the normal
  process they result in abnormal process
  variation, which must be eliminated. Before a
  process can be improved, any special causes of
  variation must be identified and eliminated.

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Process Management

• The collection of practices used to implement and
  improve quality management and process
  effectiveness across an organization. It focuses
  on the overall effectiveness of cross-functional
  processes rather than the outputs of individual
  functions. Process management treats the
  organization as a group of interrelated processes
  that ultimately affect quality

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Quality Deployment

• Quality Culture
• For an organization to make long-lasting changes,
  a culture change must also take place. A quality
  culture exhibits four characteristics
• Leadership
• Quality Management
• Organizational Learning
• Ethics

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Leadership

• Executives and managers must demonstrate a
  personal commitment to quality. Lukewarm support
  from top management can be the kiss of death for
  a quality program.

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Quality Management

• Practices must reduce barriers to change, such as
  traditional thinking, reliance on fire fighting,
  and policies that impede communication and
  learning and rob people of pride in their work.
  Quality management must promote decision making
  and problem solving that is driven by customer,
  date, and proven cause-and-effect relationships.

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Organizational Learning

• Quality principles must be translated into
  corporate policies and practices that spread new
  quality ideas across organizational boundaries.

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Code of Ethics

• A firm code of ethics specifies generally
  accepted standards of professional conduct useful
  to the organization and its customers.

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TQM Requires Clear Strategy

• A good quality strategy is integrated with an
  organizations overall business strategy and
  should include
• a vision statement (where an organization wants
  to go),
• mission statement (where the organization is),
• goals (endpoints or conditions the organization
  works toward to close the gap between vision and
  mission),
• and objectives (expectations stated in
  quantitative terms to help achieve goals).

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Quality Plan

• A quality plan outlines how an organization will
  meet its goals and objectives.
• Simply, a quality plan should answer three
  questions
• What specific quality work needs to be done?
• How is it to be done?
• What are the outputs?

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Quality Planning

• The planning process often begins with a quality
  assessment, identifying
• Business practices
• Attitudes
• Activities that are enhancing or inhibiting
  quality improvement.

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Quality Planning Tools

• Tools and techniques that can be used include
• Self-evaluation
• Organizational assessment
• Customer surveys
• Benchmarking.

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The Quality Function

• Is defined as the entire collection of activities
  through which an organization achieves fitness
  for use.
• It is supported by systems thinking, the belief
  that an organization is an interrelated system
  that cannot be divided into independent parts.

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DEFINITIONS (from ASQ Quality Digest Readers)

• Quality itself has been defined as fundamentally
  relational
• 'Quality is the ongoing process of building and
  sustaining relationships by assessing,
  anticipating, and fulfilling stated and implied
  needs.
• Even other quality definitions that arent
  explicitly relational are implicitly relational.

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DEFINITIONS (from ASQ Quality Digest Readers)

• Why do we try to do the right thing right, on
  time, every time? To build and sustain
  relationships.
• Why do we seek zero defects and conformance to
  requirements (or their modern counterpart, six
  sigma)? To build and sustain relationships.
• Why do we seek to structure features or
  characteristics of a product or service that bear
  on their ability to satisfy stated and implied
  needs? (ANSI/ASQC.) To build and sustain
  relationships.

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DEFINITIONS (from ASQ Quality Digest Readers)

• The focus of continuous improvement is the
  building and sustaining of relationships. It
  would be difficult to find a definition of
  quality that did not have a fundamental express
  or implied focus on building and sustaining
  relationships.
• --from Winder, Richard E. and Judd, Daniel K.,
  1996, ORGANIZATIONAL ORIENTEERING

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DEFINITIONS (from ASQ Quality Digest Readers)

• Quality is the customers' perception of the value
  of the suppliers' work output.
• The word "Quality" represents the properties of
  products and/or services that are valued by the
  consumer.
• Quality is a momentary perception that occurs
  when something in our environment interacts with
  us, in the pre-intellectual awareness that comes
  before rational thought takes over and begins
  establishing order. Judgment of the resulting
  order is then reported as good or bad quality
  value.

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DEFINITIONS (from ASQ Quality Digest Readers)

• There are two definitive types of "quality".
• Quality of design
• Quality of the process
• Whether you are in discrete manufacturing,
  process manufacturing or a service related
  industry you have design issues of usability,
  comfort, and tolerance of durability beyond
  prescribed use and identity of "status" of design
  quality.
• The ability to live up to the "quality of design"
  is maintained by the "quality of the process"

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DEFINITIONS (from ASQ Quality Digest Readers)

• My definition of Quality is "Reducing the
  variation around the target".
• All your actions aimed at the translation,
  transformation and realization of customer
  expectations , converting them to requirements,
• Quality is doing the right things right and is
  uniquely defined by each individual.

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DEFINITIONS (from ASQ Quality Digest Readers)

• The degree to which something meets or exceeds
  the expectations of its consumers.
• "Conformance to Valid Requirements"
• Quality is meeting the customer's needs in a way
  that exceeds the customer's expectations.
• "Quality is nothing more or less than the
  perception the customer has of you, your
  products, and your services"!
• Definition of Quality "WOW"

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DEFINITIONS (from ASQ Quality Digest Readers)

• Definition depends on the purpose and for whom
  you are talking
• If you talk for your customers, then it is what
  ever he says it is, what he expect from the
  product or service.
• If you talk to your company, to your people, then
  I follow the Kano Model. There are three parts
  of Quality
• The Basic Q. What absolutely must be. w/o the
  customers is dissatisfied.
• The Customer expected Q. achieve all and the
  customer is satisfied. I.e Six Sigma helps to do
  that.
• The exciting Q. The customer does not know it
  exists, yet it is possible. This becomes
  tomorrow's expectation.

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DEFINITIONS (from ASQ Quality Digest Readers)

• Quality is the extent to which products,
  services, processes, and relationships are free
  from defects, constraints, and items which do not
  add value for customers."
• A Strategic, Systems Approach to Continuous
  Improvement,
• Clean, precise and flawless
• A perceived degree of excellence with a minimum
  usually set forth by the customer.

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DEFINITIONS (from ASQ Quality Digest Readers)

• Quality is a perceived degree of excellence with
  a minimum usually set forth by the customer.
• When the customer returns and the product
  doesn't.
• When something is what you expect it to be then
  it is perceived as quality.
• Thus, quality is a fulfillment of expectation.

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DEFINITIONS (from ASQ Quality Digest Readers)

• There are two forms of quality, and therefore two
  definitions and two forms of measurement.
• OBJECTIVE quality is the degree of compliance of
  a process or its outcome with a predetermined set
  of criteria, which are presumed essential to the
  ultimate value it provides. Example proper
  formulation of a medication.
• SUBJECTIVE quality is the level of perceived
  value reported by the person who benefits from a
  process or its outcome. It may subsume various
  intermediate quality measures, both objective and
  subjective. Example pain relief provided by a
  medication

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DEFINITIONS (from ASQ Quality Digest Readers)

• Satisfy or exceed customer expectations at the
  minimum possible cost
• Quality is to reach the costumer needs at low
  rates (costs) to the company and achieving
  employee satisfaction.
• Quality is an ever evolving perception by the
  customer of the value provided by a product.
• It is not a static perception that never changes
  but a fluid process that changes as a product
  matures (innovation) and other alternatives
  (competition) are made available as a basis of
  comparison.

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DEFINITIONS (from ASQ Quality Digest Readers)

• "Variation is the enemy of Quality
• "Uniformity is the enemy of Knowledge".
• Quality means best for certain conditions...(a)
  the actual use and (b) the selling price.
  (Feigenbaum, 1983)
• Quality, It's a Way of Life.
• Quality Is Our Most Important Product.
• Quality is a degree of excellence... (Webster)