Total Quality Management QMT 2003 PDF

Total Quality Management QMT 2003 Introduction to Quality  Major Topics What is quality? Dimensions of quality Key elements of quality Core principles of quality Total Quality pioneers 2  QMT 2003 Course Assessments Plea...

Total Quality Management QMT 2003 Introduction to Quality  Major Topics What is quality? Dimensions of quality Key elements of quality Core principles of quality Total Quality pioneers 2  QMT 2003 Course Assessments Please add dates 3  What is quality? Quality involves meeting or exceeding customer expectations. Quality applies to products, services people, processes and environments. Quality is an ever-changing state (dynamic state) (i.e. what is considered good quality today is not good enough tomorrow) 4  Total Quality Quality guarantees superior value. Total quality guarantees improving the quality of products, processes, services and costs. Nowadays, adopting the total quality approach is a must to survive and compete. 5  Total Quality Management: TQM Total Quality management is defined as a continuous effort by the management as well as employees of a particular organization to ensure long term customer loyalty and customer satisfaction through the continual improvement of the quality of its products, services, people, processes and environments. TQM applies to all organizations, large and small, manufacturing and service, profit and non-profit. 6  Dimensions of Quality Goods: Performance: operating characteristics Features: options offered Reliability: probability product will fail within a specified time Durability: expected operational life Conformance: to design specifications Serviceability: how readily it can be repaired, the speed, competence and courtesy along repair Perceived quality: related to company’s reputation 7  Dimensions of Quality Services: Reliability: ability to perform the promised service accurately for a specified period of time Tangibles: are physical aspects of a service like appearance of facility, equipment, communication materials. Responsiveness: prompt service Assurance: trust and confidence Empathy: showing caring individualized attention to customers 8  CLASS DISCUSSION Form your groups As the Quality Manager in Carrefour, you need to develop a plan to increase the competitiveness of Carrefour in the UAE market. Discuss how you would improve the quality of your products and services in Carrefour Provide 3 suggestions per group Share your answer with the class 9 Done on 21 Aug 2024  11 Core Principles of Quality: 1.Customer-focused The customer ultimately determines the level of quality. No matter what an organization does to foster quality improvement—training employees or buying new measuring tools—the customer determines whether the efforts were worthwhile. 2. Total employee involvement - Empowerment All employees participate in working toward common goals. Self-managed work teams are one form of empowerment. 3. Process-centered 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 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. 10 10  11 Core Principles of TQM: 4. Integrated system where all functions are interconnected to achieve TQM. 5. Strategic approach to achieve an organization’s vision, mission, and goals. Strategic management, includes the formulation of a strategic plan that integrates quality as a core component. 6. Continual improvement drives an organization to always find ways to become more competitive and more effective at meeting stakeholder expectations. 7. Fact-based decision making To know how well an organization is performing, data on performance measures are necessary. This helps to improve decision making accuracy, achieve consensus, and allow prediction based on past history. 11 11  11 Core Principles of TQM: 8. Communications During times of organizational change, as well as part of day-to-day operation, effective communications plays a large part in maintaining morale and in motivating employees at all levels. Communications involve strategies, method, and timeliness. 9. Teamwork 10. Education and training The best way to improve people on a continual basis 11. Long-term commitment: a new culture needed 12 12  Key Elements of TQM * Foundation: Ethics. Integrity. Trust. *Bricks: Teamwork. Leadership. Recognition. *Binding Mortar Communication. Roof: Recognition 13 13  8 KEY ELEMENTS 14 14  Total Quality Pioneers The 3 major quality pioneers or contributors are : 1. Edwards Deming 2. Joseph Juran 3. Philip Crosby 15  Deming’s contributions: The Deming Cycle: PDCA Deming’s fourteen points Deming’s seven deadly diseases Note: Deming defined quality as “no variation” and “meeting customers’ needs”. 16  The Deming Cycle 1. Plan: conduct consumer research and use it in planning the product 2. Do: produce the product 3. Check: to make sure the product was produced as per plan 4. Act: market the product 5. Analyze how the product is received in the market in terms of quality, cost 17  Deming’s fourteen points 1. Create constancy of purpose toward improvement of products/services: research, innovation and continual improvement are a must 2. Find problems. It is management’s job to work continually on the system 3. Stop dependence on mass inspection. Instead, require statistical evidence that quality is built in 4. End the practice of awarding business on the basis of price 5. Improve continuously the system of production and services to reduce costs. 6. Institute training on the job 7. Institute leadership to help people work better 8. Drive out fear so everyone works 18  Deming’s fourteen points 9. Break barriers between departments for people to work as teams 10. Eliminate numerical goals, posters and slogans for the workforce asking for new levels of productivity without providing methods 11. Eliminate management by objectives. Replace by leadership 12. Remove barriers that deprive employees of their pride of workmanship. Often we do not provide people with the training, tools, leadership necessary. 13. Institute a strong program of education and self-improvement 14. Make the transformation everyone’s job and put everyone to work on it 19  Deming’s seven deadly diseases 1.Lack of constancy of purpose This philosophy must be widespread throughout the company. Employees require proof that the company is serious. 2. Emphasis on short-term profits 3. Evaluation of performance, merit rating, or annual review Management by objective (MBO) and management by the numbers fall in this category. Management by fear would be a better name as suggested Dr. Deming. It discourages risk-taking, builds fear, undermines teamwork, and pits (opposes) people against each other for the same rewards. 20  Deming’s seven deadly diseases 4. Mobility of top management : How can a manager really know a company when he is there for only two or three years? 5. Running a company on visible figures alone Visible figures are important. But the figures that are unknown are also important. It is impossible, for example, to measure the gains in quality that result from freeing a company of the Deadly Diseases. Only in time will these results become apparent. 6&7 They relate to Americans. 6. Excessive medical costs: embedded in the steel that goes into an automobile (payment of wages and salaries to people under treatment for injury on the job) 7. Excessive costs of liability, increased by lawyers that work on contingency fees 21 CLASS ACTIVITY ONE As the Quality Manager in McDonalds, you are assigned to come up with a new strategy to deal with the increase in competitiveness in the UAE fast food market. Discuss how you would apply the Deming Cycle in this case. Students in groups need to explain how to apply the Deming PDCA Cycle to increase McDonald’s competitiveness Provide 3 activities for each element in the PDCA cycle 22 23  Joseph M. Juran Defined quality as “fitness for use” Believed that “money is the language of management” 24  Joseph M. Juran His contributions to the quality philosophy: The Juran Trilogy Juran’s Ten Steps to Quality Improvement Juran’s three Basic steps to Progress The Pareto Principle 25  Joseph M. Juran The concept of his quality trilogy is that managing for quality consists of three basic processes: Quality planning (after research) Quality control Quality improvement 26  QUALITY TRILOGY Steps in Quality Planning (Juran) 1. Determine who the customers are 2. Identify customers’ needs 3. Develop products with features that respond to customer needs 4. Develop systems that allow the organization to produce these features 5. Deploy the plans to operational levels: Prove process capability 27  QUALITY TRILOGY Steps in Quality Control (Juran) 1. Assess actual quality performance 2. Compare quality with goals 3. Act on differences between performance and goals 28  Steps in Quality Improvement (Juran) 1. Develop the infrastructure necessary to make annual quality improvements 2. Identify specific areas in need of improvement, and implement improvement projects 3. Establish a project team for each project 4. Give teams what they need to understand root causes of problems, develop solutions and establish controls to maintain gains made. 29 30  Juran’s Ten Steps to Quality Improvement Juran’s Ten Steps to QI 1. Build awareness of the need for improvement 2. Set goals for improvement 3. Organize to reach the goals 4. Provide training 5. Carry out projects to solve problems 6. Report progress 7. Give recognition 8. Communicate results 9. Keep score 10. Maintain momentum by building improvement into the company’s regular systems 31  Juran’s 3 basic steps to progress: 1. Achieve structured improvements on a continual basis 2. Establish an extensive training program 3. Establish commitment and leadership on the part of higher management 32  Pareto Principle: This principle adopted by Juran is known in quality circles as the 80/20 rule. This rule is used to declare that 80% of quality issues are caused by 20% of the problems. Efforts need to be concentrated on eliminating the vital few sources (20%) that cause the majority of problems. 33  Philip Crosby’s Contributions He had a behavioral approach to QM. He started his career in quality later than Deming and Juran. He defined quality simply as conformance. He is best known for this advocacy of ZERO DEFECTS management and prevention as opposed to statistically acceptable levels of quality and for his Quality Vaccine 34  Crosby’s 14 steps to QI 1. Management is committed to a formalized quality policy- long term commitment to quality 2. Form a management level quality improvement team (QIT) with responsibility for quality improvement process planning and administration 3. Determine where current and potential quality problems lie 4. Evaluate the cost of quality and explain its use as a management tool to measure waste 5. Raise quality awareness and personal concern for quality amongst all employees 6. Take corrective actions, making sure to remove the root causes of problems 7. Establish a zero defects committee and programme 35  Crosby’s 14 steps to QI 8. Train all employees in quality improvement 9. Hold a Zero Defects Day to broadcast the change and as a management recommitment and employee commitment 10. Encourage individuals and groups to set improvement goals 11. Encourage employees to communicate to management any obstacles they face in attaining their improvement goals 12. Give formal recognition to all participants 13. Establish quality councils for quality management information sharing 14. Do it all over again – form a new quality improvement team 36  Crosby’s Four Absolutes of Quality Management 1. Quality must be defined as conformance to requirements, not just as a good thing to do 2. The best way to ensure quality is prevention, not inspection 3.The standard for quality must be zero defects, not “close is good enough” 4. Quality is measured by nonconformance 37  CLASS DISCUSSION Case Study: Carrefour While they dominate the European market, they are also number one in the Emirati market. The Emirati market is very competitive. There are many hypermarkets like Lulu, Emirates Market, Local Co-Ops in each Emirate, e.g. Spinney’s started opening its outlets in the UAE. Carrefour relies on good supply chain management especially from locally produced food. The company also distributes its own brands to add more variety in the store. The store is known to be more expensive than most of its competitors and because of its size, it is not able to operate in small communities. Discuss in your groups You are required to apply the “Juran 10 steps to QI” and apply it to Carrefour as a business 38 Example: Juran’s Ten Steps to QI – explain how can Carrefour apply the following 10 steps? 1. Build awareness of the need for improvement – how to build awareness? 2. Set goals for improvement – what types of goals? 3. Organize to reach the goals – how to reach goals? 4. Provide training – what sort of training required to achieve goals? 5. Carry out projects to solve problems 6. Report progress 7. Give recognition 8. Communicate results 9. Keep score 10. Maintain momentum by building improvement into the company’s regular systems 39  Juran 10 steps 1. Build awareness of need and opportunity for improvement Survey the employees, what are common errors / mistakes / deviations made? Determine how to ensure those mistake-causing steps aren't repeated Keep track of the number of mistakes being made, make sure they will be decreasing 2. Set goals for improvement Establish specific goals to be reached e.g. improve customer service, reduce stock loss Establish plans for reaching the goals Assign clear responsibility for meeting the goals Base the rewards on results achieved e.g. KPI 3. Organize to reach the goals Establish quality teams and nominate members Select projects Designate facilitators 4. Provide training Investment in appropriate staff education and training e.g. customer service, retail technology etc 5. Carry out projects to solve problems Tackle the chronic problems Solve a few vital problems create breakthroughs and boost staff morale 40  Juran 10 steps Report progress Progress expected and the actual progress achieved Act to improve the operational status to reduce variance Information on progress provides confidence on quality improvement projects Give recognition Morale booster  Communicate results Share Lessons learnt Be aware of the approach taken, lessons learnt Improvement outlook for people in other areas or departments, try to emulate success Keep score Track progress Report achievements, short-falls Maintain momentum by making annual improvement part of the regular processes People oriented Team-work 41