Total Quality Management: Module 2

• Module 2 introduces Total Quality Management (TQM)

Defining Quality

• Quality necessitates process improvements to surpass customer expectations
• Quality re-establishes pride and cultivates loyalty within companies
• Consistently improving systems rather than solely focusing on output achieves quality
• Observing quality through the customer lens is essential
• A basic tool for a natural property of any good or service that allows it to be compared with any other good or service of its kind
• Quality is the inherent properties that allows satisfying stated or implied needs
• A customer's perception of a good or service indicates its quality

Approaches to Quality Definition

• Transcendent approach states quality is indefinable but recognizable when experienced
• Product-Based approach measures quality using quantifiable attributes such as durability
• User-Based approach defines quality as products that best satisfy individual preferences
• Manufacturing-Based approach focuses on engineering and conforming to requirements, contrasting with Crosby's "quality is free" concept
• Value-Based approach defines quality through cost, price, and attributes, where the "best buy" is not always the highest quality

Quality Types

• Quality of Design entails product characteristics meeting customer requirements at an acceptable cost
• Quality of Conformance involves meeting design standards with reliability and uniformity
• Quality of Performance relates to how well a product functions when used, considering design and conformance

Quality Levels

Organizational Level

• Revolves around customer quality requirements
• A customer is anyone receiving the organization's product or service
• Issues include meeting/not meeting expectations, needed but unreceived products/services

Process Level

• The organization's units are categorized into functions like marketing, operations, and human resources
• Issues include products/services important to customers, key process inputs , and customer-drive performance standards

Performer/Job/Task Design Level

• Generates quality on the individual level in the context of the process and organizational quality
• The statistical tools for instance are not appreciated by workers because the tools are used at the individual level without being connected to the overall needs of the system
• Necessitates addressing requirements, measurement, and specific standards for each output of individual tasks
• Shaped by clarity of performance expectations, resources, feedback, and an individual's capacity

Major Contributors to TQM

• Total Quality Management coordinates efforts to improve customer satisfaction and employee involvement
• Enhances supplier partnerships and sustains continuous quality improvement
• TQM is a philosophy where long-term success relies on uniform quality commitment
• Quality concepts took root in Japan post-World War II
• W. Edwards Deming's ideas helped Japan's recovery, but were initially dismissed in the U.S.
• Deming's system, based on continuous improvement, transforms organizations through his Fourteen Points

Deming's Fourteen Points for Achieving TQM

• Create constancy of purpose for product and service improvement

• Adopt a new philosophy of "learning organizations" where mistakes and negativity are unacceptable

• Cease dependence on mass inspection by building quality into the product

• End business awarding based on price

• Constantly improve the production system

• Institute training for workers

• Institute leadership to help people do better jobs and to learn by objective methods

• Drive out fear to assure better quality and productivity

• Break down barriers between departments

• Eliminate slogans and numerical targets

• Eliminate numerical quotas

• Remove barriers to pride in workmanship

• Institute a program of education

• Take action to accomplish the transformation through a dedicated management team

• Deming emphasized customer surveys, production-line involvement, and teamwork

• Japan embraced his system, statistically monitoring customer satisfaction and producing better, cheaper goods

• Deming saw businesses as bedrock institutions

• Companies succeed long-term by enhancing employees' contributions

• Deming’s ideas were fully used in Japan during the 1950s and 1960s before they took hold in the U.S. due to economic pressure

• Ford Motor Co. embraced Deming's program after NBC highlighted his accomplishments in a documentary

• Deming, known as the Father of TQM, continued teaching seminars until his death in 1993

Joseph Juran

• Known for Juran's Trilogy, which consists of Quality Planning, Quality Control, and Improvement
• Published the Quality Control Handbook
• Defined the Cost of Quality as tangible and intangible costs
• Emphasized the Pareto Principle (80:20 rule) in quality management
• Juran traveled to Japan to conduct Quality Management for top and middle-level executives

Juran's Quality Trilogy

• An management approach composed of planning, control, and improvement

Quality Planning

• Developing products/processes to meet customer needs
• Establish quality goals

Quality Control

• It needs to evaluate actual quality performance
• Compare actual performance to quality goals
• Act on the difference

Quality Improvement

• Aims to raise quality performance by establishing infrastructure, identifying projects, forming teams, and providing resources

Cost of Quality

• It needs to be recorded, analyzed, and classified into failure, appraisal, and prevention costs.
• Failure Cost includes scrap, rework, corrective actions, warranty claims, customer complaints and loss of custom
• Appraisal Cost includes inspection, compliance auditing, and investigations
• Prevention Cost includes training, preventive auditing, and process improvement implementation

Pareto Principle

• Juran emphasized that 80% of problems are created by 20% causes
• Organizations should then in turn identify the causes and remove them

Quality Improvement 10 Steps

• Build awareness, set goals, create plans, prove training, solve problem conduct projects, report on progress, give recognition, communicate results, keep score, maintain momentum

Armand V. Feigenbaum

• Developer of "Total Quality Control"
• Established TQM principles
• "Total Quality Control" requires integrating quality development, maintenance, and improvement
• There is a hidden plant in every factory which wastes capacity

Philip Crosby

• He had practical concepts to define and communicate quality and quality improvement practices
• He wrote the bestseller called Quality is free
• Quality is a strategic imperative
• There is an focus on prevention, not inspection
• Management influences the tone of quality
• Non-conforming products are ones that management has failed to act upon

Crosby's 14 steps include

• Management commitment to defect prevention
• Establishing a cross-departmental Quality Improvement Team
• Quality measurement throughout the company
• Cost of Quality evaluation
• Quality awareness through training
• Establishing Ad-hoc Committee for Zero Defects
• Supervisor training on 14 steps
• Zero Defects Day
• Goal Setting
• Error Cause Removal
• Recognition
• Quality Councils
• Do it over again

Quality Paradigms

• Custom-Craft Paradigm focuses on product/service tailored to customer demands
• Mass Production
• Without direct involvement of customer
• Statistical Quality Control - Emphasizes production processes with low scrap
• Total Quality - Includes customer satisfaction, defect reduction, and quality planning
• Techno-Craft - It uses technology
• Cost of Quality is important to determining weather or not to use reasources

Quality Cost

Prevention

• It is planned and is to prevent failure problems
• Product or service requires establishments of qualifications for bound materials
• Quality Assurance- plannings and of the quality system
• Training- development, preparation, and programs

Appraisal

• Measuring used to related and monitor quality standards and performance requirements
• Verification- of inward bound material, process, products against contracted specifications
• Quality Audits- Confirmation that the quality system is operating correctly
• Supplier Rating- Appraisal and endorsement of supplier of products and services

Internal

• These used when service or product is delivered to the customer
• Waste- performance of needless work or holding of stock as an outcome of errors, poor organization, or communication
• Scrap-Faulty product or material that cannot be repaired and be use for the purpose
• Rework for Rectification- improvement of flawed material or errors
• Failures Analysis- is required ascertain of internal service product

External

• These cost are obtained to treat defects exposed by customers
• It occurs product or service that fails to attain design of standards are discovered after transfer to the customer
• Repairs and servicing
• Warrenty Claims
• Complaints
• Returns

Two Components of Cost Quality

Cost of Conformance

• Cost of making standards services
• A good amount spend such as prevention and appraisal cost

Cost of Non- Conformance

• There are failures costs linked with a process not functioning based on standards
• internal and external costs

Defining TQM

• Detects, reduces, and or limits errors in manufacturing
• Improves costumer experience
• Streamlining change management
• Employees and others are up to speed with training
• Aims to hold all parties involved

TQM Elements

Foundation

• Ethics, integrity, and trust foster fairness and sincerity
• Ethics - discipline concept in good and bad
• Integrity - honesty, morals, values
• Trust - by product of integrity and ethical conduct

Bricks

• Placement to reach recognition
• Training - It is employees can becomes highly productive
• Teamwork - it is a key elements to becomes successful

Three types of teams

• Quality improvement teams or excellence teams (QITs)
• Temporary teams to solve certain problems
• Natural work teams (NWTs) - teams that consists in small groups

Quality Circles

• Concepts like employee improvement in relation to tasks and responsibilities

• The teams generally works for one to two house

• Leadership - helps direct where needed

• Top management is required to introduce by led top management

• Management ensures that direction is followed in organization

Binding Mortar

• Communication helps binds everything together.
• Vital link connects all the TQM elements
• TQM needs demands communication for the organization numbers

Communication

• supervisors needs to keep open airways so employees can send and keep information related to the process

Ways and Communication

• Downward Communication
• Making sure managers follow the TQM
• Upwards Communication

Employees

• To propose managers of those employees should be help
• Sideways Communication
• Allow to cut down barriers between departments

Roof

• It is the last and final element in the entire system in a system the correct support is supported Time- it is the perfect time to recognize the employee

Core Concept For TQM

• Costumer Satisfcation
• All work in process
• Teamwork
• People make quality
• Prevention