Total Quality Management

Total Quality Management

Session Objectives

By the end of this session, students will be able to:

Ø  Explain
the concept of total quality management

Definition:
Total Quality Management

•       Total
Quality Management (TQ, QM or TQM) and Six Sigma (6s) are sweeping “culture change”
efforts to position a company for greater customer satisfaction, profitability
and competitiveness.

•       TQ
may be defined as managing the entire organization so that it excels on all
dimensions of products and services that are important to the customer.

•       We
often think of features when we think of the quality of a product or service;
TQ is about conformance quality, not features.

Total Quality Is…

•       Meeting Our Customer’s Requirements

•       Doing Things Right the First Time; Freedom
from Failure (Defects)

•       Consistency (Reduction in Variation)

•       Continuous Improvement

•       Quality in Everything We Do

A Quality Management
System Is…

•       A
belief in the employee’s ability to solve problems

•       A
belief that people doing the work are best able to improve it

•       A
belief that everyone is responsible for quality

Elements
for Success

•       Management
Support

•       Mission
Statement

•       Proper
Planning

•       Customer
and Bottom Line Focus

•       Measurement

•       Empowerment

•       Teamwork/Effective
Meetings

•       Continuous
Process Improvement

•       Dedicated
Resources

The Continuous
Improvement Process

Modern
History of Quality Management

•       Frederick
W. Taylor wrote Principles of Scientific Management in 1911.

•       Walter
A. Shewhart used statistics in quality control and inspection, and showed that
productivity improves when variation is reduced (1924); wrote Economic
Control of Manufactured Product in 1931.

•       W.
Edwards Deming and Joseph M. Juran, students of Shewhart, went to Japan in 1950;
began transformation from “shoddy” to “world class” goods.

•       In
1960, Dr. K. Ishikawa formalized “quality circles” – the use of small groups to
eliminate variation and improve processes.

•       In
the late ‘70’s and early ‘80’s:

–      Deming
returned from Japan to write Out of the Crisis, and began his famous
4-day seminars in the United States

–      Phil
Crosby wrote Quality is Free

–      NBC
ran “If Japan can do it, why can’t we?”

–      Motorola
began 6 Sigma

History of
Quality Management

Deming’s 14 Points

 1.  Create constancy of purpose for improvement

 2.  Adopt a new philosophy

 3.  Cease dependence on mass inspection

 4.  Do not award business on price alone

 5.  Work continually on the system of production
and service

 6.  Institute modern methods of training

 7.  Institute modern methods of supervision of
workers

 8.  Drive out fear

 9.  Break down barriers between departments

10. Eliminate slogans, exhortations, and targets for the
work force

11. Eliminate numerical quotas

12. Remove barriers preventing pride of workmanship

13. Institute a vigorous program of education and retraining

14. Take action to accomplish the transformation

Deming’s Concept of “Profound Knowledge”

Ø  Understanding
(and appreciation) of Systems

                – Optimizing
sub-systems sub-optimizes the total system            

                – The
majority of defects come from systems, the responsibility of management (e.g.,
machines not in good order, defective material, etc.

Ø  Knowledge
of Statistics (variation, capability, uncertainty in data, etc.)

                – To
identify where problems are, and point managers and workers toward solutions

Ø  Knowledge
of Psychology (Motivation)

                –
People are afraid of failing and not being recognized, so they fear how data
will be used against them

Ø  Theory
of Knowledge

                – Understanding
that management in any form is a prediction, and is based on assumptions

History of
Total Quality

According to Dr. Joseph M. Juran (1991):

 “On the assembly line
at the Ford Motor Company in 1923, most of the workers producing Model T’s were
immigrants and could not speak English. 
Many were also illiterate.  
Workers learned their trade by modeling the actions of other
workers.  They were unable to plan,
problem-solve, and make decisions.  As a
result, the Taylor scientific school of management flourished, and MBAs and
industrial engineers were invented to do this work.  Today, however, the workforce is
educated.  Workers know what is needed to
improve their jobs, and companies that do not tap into this significant source
of knowledge will truly be at a competitive disadvantage.”

According to Phil
Crosby, Quality is . . . 

                An
attitude:

                                –
Zero Defects

                                –
Continuous Improvement

                A
measurement:

                                –
Price of Conformance, plus

                                –
Price of Nonconformance (defects)

TQ:
Transforming an Organization

What is Six
Sigma?

•         
A goal of near perfection in meeting customer
requirements

•         
A sweeping culture change effort to position a
company for greater customer satisfaction, profitability and competitiveness

•         
A comprehensive and flexible system for
achieving, sustaining and maximizing business success; uniquely driven by close
understanding of customer needs, disciplined use of facts, data, and
statistical analysis, and diligent attention to managing, improving and
reinventing business processes

Is 99%
Quality Good Enough?

•       22,000
checks will be deducted from the wrong bank accounts in the next 60 minutes.

•       20,000
incorrect drug prescriptions will be written in the next 12 months.

•       12
babies will be given to the wrong parents each day.

Six Sigma
Quality

                The
objective of Six Sigma quality is 3.4 defects per million opportunities!

But is Six
Sigma Realistic?

Six Sigma Improvement
Methods
DMAIC vs. DMADV

Six Sigma
DMAIC Process

Define:  Define
who your customers are, and what their requirements are for your products and
services – Their expectations.  Define
your team goals, project boundaries, what you will focus on and what you
won’t.  Define the process you are
striving to improve by mapping the process.

Measure: 
Eliminate guesswork and assumptions about what customers need and expect
and how well processes are working. 
Collect data from many sources to determine speed in responding to
customer requests, defect types and how frequently they occur, client feedback
on how processes fit their needs, how clients rate us over time, etc.  The data collection may suggest Charter revision.

Analyze: 
Grounded in the context of the customer and competitive environment,
analyze is used to organize data and look for process problems and
opportunities.  This step helps to identify
gaps between current and goal performance, prioritize opportunities to improve,
identify sources of variation and root causes of problems in the process.

Improve: 
Generate both obvious and creative solutions to fix and prevent
problems.  Finding creative solutions by
correcting root causes requires innovation, technology and discipline.

Control: 
Insure that the process improvements, once implemented, will “hold the
gains” rather than revert to the same problems again.  Various control tools such as statistical
process control can be used.  Other tools
such as procedure documentation helps institutionalize the improvement.

Six Sigma
DMADV Process

Design:  Develop detailed design for new process.  Determine and evaluate enabling
elements.  Create control and testing
plan for new design.  Use tools such as
simulation, benchmarking, DOE, Quality Function Deployment (QFD), FMECA
analysis, and cost/benefit analysis.

Validate:  Test detailed design with a pilot
implementation.  If successful, develop
and execute a full-scale implementation. 
Tools in this step include: 
planning tools, flowcharts/other process management techniques, and work
documentation.

SUMMARY

•       Total
Quality Management may be defined as managing the entire organization so that
it excels on all dimensions of products and services that are important to the
customer.

•       Elements
for Success are management support, mission statement, proper planing, customer
and bottom line focus, measurement, empowerment, teamwork/effective meetings, continuous
process improvement, dedicated resources