TQM-C1-Nature-of-Total-Quality PDF

N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Chapter 1 Nature of total quality management CBMEC 2: Operations Management Nourishing the mind, nurturing the heart,...

N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Chapter 1 Nature of total quality management CBMEC 2: Operations Management Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Lesson Objectives: At the end of the unit, I am able to: 1. Define key concepts related to TQM; 2. Examine the elements of TQM; 3. Know the principles of TQM and peculiarities of their implementation; 4. Identify the benefits of TQM in an organization’s successful operation; and 5. Determine the impact of quality on profitability Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Definition of Quality People have many ways to explain quality. All of them may have a point, as they each contain a key element of what quality means to users of products and services. 1. A degree of excellence 2. Conformance to requirements 3. Totality of characteristics which act to satisfy a need 4. Fitness for use 5. Fitness for purpose 6. Freedom from defects 7. Delighting customers. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Definition of Quality The following definitions look at quality from a management, quality assurance, product, marketing, manufacturing and economic point of view. An example of a quality process or product is fit for its purpose is if the Fit for purpose purpose of an aircraft is to be fast, efficient, comfortable and safe — then that's the definition of a quality aircraft. Quality is often measured in terms of conformance to Conformance to requirements requirements. Traditionally, product quality was thought of in terms of material Quality is proportional to cost costs. Economists tend to judge quality by the price consumers are Quality is price willing to pay. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Definition of Quality The following definitions look at quality from a management, quality assurance, product, marketing, manufacturing and economic point of view. Manufacturers are concerned both with the quality of products and the Quality is a standard quality of the manufacturing process itself. Quality is compliance to best known standards, processes and specifications. Quality is value for price. According to this definition a $3 Quality is value for performance disposable tooth brush may be higher quality than a $3000 golden tooth brush because it offers more value. Quality is a satisfying experience. Experience quality can also be Quality is an experience measured by bottom line metrics such as revenue, return visits and lifetime customer value. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Concept of quality in other fields of specialization In business, engineering and manufacturing, quality has a pragmatic interpretation as the non-inferiority or superiority of something. Consumers may focus on the specification quality of a product/service, or how it compares to competitors in the marketplace. Producers might measure the conformance quality, or degree to which the product/service was produced correctly. Support personnel may measure quality in the degree that a product is reliable, maintainable, or sustainable. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Concept of quality in other fields of specialization Quality Quality Production Checking Quality Control Management Assurance Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Types of Quality: PRODUCT QUALITY - Products that fit customer needs and fulfill customer expectations. It is the value of a product to customers. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Types of Quality: SERVICE QUALITY - The value of a service to customers. This is inherently subjective as it is driven by the needs, expectations and perceptions of customers. As such, it is typically measured by quantifying customer surveys. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Types of Quality: EXPERIENCE QUALITY - It is a measure of customer perceptions that can be applied to diverse services including areas such as medicine, technology, travel, entertainment and hospitality. The following are common types of experience quality. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Types of Quality: DATA QUALITY - The degree to which information fits its purpose. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Types of Quality: INFORMATION QUALITY - Value of information for specified purpose, including accuracy, precision, credibility, timeliness, completeness, relevance, uniqeness, and comprehensible. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Types of Quality: QUALITY OF LIFE - is the well-being of individuals, communities and societies. It is a comprehensive measure that can be used to evaluate efforts to improve cities and nations. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Factors Affecting Quality Market - Customers demand and get better products today. As markets broaden in scope, the scope of goods and services become more and more specialized. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Factors Affecting Quality Money - Quality costs have to be kept low which mean cost saving due to quality improvement has to be kept in prime focus. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Factors Affecting Quality Man - The rapid growth of technology and opening of new fields have created a great demand for workers with specialized knowledge. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Factors Affecting Quality Materials - Due to high material costs engineers have to constantly keep coming up with ways to bring down the cost of material used. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Factors Affecting Quality Machines - The demand to cut costs is forcing companies to use newer machines, which will deliver better quality and product using lesser cycle times. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Factors Affecting Quality Management - Today responsibility for product quality has to be distributed among, various functions. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Factors Affecting Quality Motivation - The increased complexity of the product means that every employee has to give his best quality is to be maintained. This requires that quality consciousness’s among employees are high. This can be achieved only through continuous education and motivation of the work force. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Factors Affecting Quality Modern method of information - the spread of computers, data collection, storage retrieval retrieved and transmission of information has become easy. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Concept of Total Quality Management (TQM) TQM is an art of managing the whole to achieve excellence. It a philosophy at the same time a set of benchmarks that represent the foundation of a continuously improving organization. An application of quantitative methods and human resources to improve all the processes within an organization and exceed customer needs at present and in the future. TQM integrates fundamental management techniques, existing improvement efforts and technical tools under a disciplined approach. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Concept of Total Quality Management (TQM) TQM is the foundation for activities, which include: Commitment by senior management and all employees Meeting customer requirements Reducing development cycle times Just in time/demand flow manufacturing Improvement teams Reducing product and service costs Systems to facilitate improvement Line management ownership Employee involvement and empowerment Recognition and celebration Challenging quantified goals and benchmarking Focus on processes / improvement plans Specific incorporation in strategic planning Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Elements of TQM: Explained Ethics - Ethics can be described as the understanding that an individual has about what they deem right or wrong, or good or bad at a workplace. Ethics form the gray decision area where an employee can decide as to what is good to be undertaken and what is bad that shouldn’t be undertaken Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Elements of TQM: Explained Integrity - Upholding values/virtues such as honesty, justice, morals, and sincerity. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Elements of TQM: Explained Trust - A sport team can only overcome obstacles and win if there’s relentless collaboration and trust among the team members. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Elements of TQM: Explained Training - It is essential for them to cascade to every employee within the organization the importance of the elements and the basic approach, that is, TQM. Training employees to enhance their interpersonal skills, their decision making and problem solving abilities, can benefit the implementation. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Elements of TQM: Explained Teamwork - With TQM needing the cooperation of the entire department or organization. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Elements of TQM: Explained Leadership - Essential at each and every stage within the framework. Providing an inspirational vision to the employees is what is expected of a leader. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Elements of TQM: Explained Communication - Effective communication enables employees to learn better and be able to express better. This facilitates innovative ideas and a proper medium to get them through. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Elements of TQM: Explained Recognition - Recognizing someone’s work is extremely important in nowadays’ competitive environment. Recognition promotes healthy competition in a bid to be acknowledged for the brilliant work put in. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Principles of Total Quality Management Organizations depend on their customers and should therefore understand current Consumer-focused organization and future customer needs, meet customer requirements, and strive to exceed customer expectations. People at all levels are the essence of an organization and their full involvement Employee involvement via effective enables their abilities to be used for the organization’s benefit. Employee leadership involvement in the development of products or services of an organization largely determines the quality of these products or services. A process is a series of steps that take inputs from suppliers (internal or external) and transforms them into outputs that are delivered to customers (again, either Process centered internal or external). The steps required to carry out the process are defined, and performance measures are continuously monitored in order to detect unexpected variation. It is important to have an integrated organization system that can be modeled for Integrated system the understanding and handling of the quality of the products or services of an organization Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Principles of Total Quality Management A critical part of the management of quality is the strategic and Strategic and Systematic systematic approach to achieving an organization’s vision, mission, and Approach goals. TQM requires that an organization continually collect and analyze data Factual Approach to decision- in order to improve decision making accuracy, achieve consensus, and making allow prediction based on past history Effective communications plays a large part in maintaining morale and Communication in motivating employees at all levels. Continual improvement drives an organization to be both analytical and Continual Improvement creative in finding ways to become more competitive and more effective at meeting stakeholder expectations. Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Basic approaches to TQM 1. A committed and involved management should provide long-term top-to-bottom organizational support. 2. An unwavering focuses on customers, both internally and externally. 3. Effective involvement and utilization of the entire work force. 4. Continuous improvement of business and production process. 5. Treating suppliers as partners. 6. Establish performance measures for the processes Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y IMPORTANCE/BENEFITS OF TQM Total Quality Management Nourishing the mind, nurturing the heart, leading the future  N u e v a E c i j a U n i v e r s i t y o f S c i e n c e a n d Te c h n o l o g y C o l l e g e o f M a n a g e m e n t a n d B u s i n e s s Te c h n o l o g y Things to avoid in TQM implementation 1. Lack of management commitment 2. Inability to change organizational culture 3. Improper planning 4. Lack of continuous training and education 5. Incompatible organizational structure and isolated individuals/department 6. Ineffective measurement techniques and lack of access to data and results 7. Paying inadequate attention to internal and external customers 8. Inadequate use of empowerment and teamwork 9. Failure to improve continually Nourishing the mind, nurturing the heart, leading the future