UNIT-2-TQM PDF

BA 26 Operations Management (Total Quality Management) BA 26 FACULT-IN-CHARGE ___________________________________________________ Instructor, Business Administration Department College of Business, Economics and Accountancy  UNIT II. TOTAL QUALITY MANAGEMENT Topic...

BA 26 Operations Management (Total Quality Management) BA 26 FACULT-IN-CHARGE ___________________________________________________ Instructor, Business Administration Department College of Business, Economics and Accountancy  UNIT II. TOTAL QUALITY MANAGEMENT Topics Covered: A. Defining Quality, Product Quality and Service Quality B. Dimensions of Quality 1. Product Quality 2. Service Quality C. Total Quality Management 1. What is TQM 2. Importance of TQM 3. Perspectives of TQM - Managerial Perspectives - Critical Perspectives 4. Philosophies and Advocates of TQM  Learning Outcomes At the end of the unit, the students must have: 1. defined quality; 2. familiarized the dimensions of quality product and service quality; 3. Appreciated the meaning and importance of TQM; 4. gained deep understanding on the different perspectives of managing quality; 5. identified significant philosophies and advocates of TQM A. Defining Quality, Product Quality and Service Quality What’s in your mind when you say quality? Quality can be a confusing concept because people view quality based on their own individual perspectives or criteria. Did you know that..  “Quality is job one” “Quality is a job one” “Quality never goes out of style” Americans defined quality based on the following criteria: Perfection Consistency Eliminating waste Speed and delivery Compliance with policies and procedures Providing a good, usable product Doing it right the first time Delighting or pleasing customers Total Customer Service and satisfaction  What is quality? Quality is the degree to which a set of inherent characteristics fulfills requirements. - ISO 9000:2000  Incorporating features to meet Product consumer needs and provide customer satisfaction by improving Quality products and making them free from defects. DEFINING PRODUCT AND SERVICE QUALITY Service An assessment of how well a delivered service conforms to the Quality client's expectations. Dimensions of Quality Quality is viewed from different dimensions: The eight (8) Dimensions of Product Quality by Garvin’s The five (5) Service Dimension – the acronym R A T E R The Strategic Dimensions of Quality  Performance Features The basic operating Characteristics characteristic of a supporting the product like basic performance acceleration in an of a product or GARVIN’S 8 automobile service. QUALITY DIMENSIONS Reliability The likelihood of a Conformance product falling or Ability to meet malfunctioning established during a specified standards. time period.  Serviceability Durability Ease, courtesy and A measure of a competence of product’s life. repair. GARVIN’S 8 QUALITY DIMENSIONS Perceived Quality Aesthetics Primarily based on How a product the reputation of looks, feels, sounds the product or or tastes. brand. KEY DIMENSIONS OF PRODUCT QUALITY DIMENSIONS EXAMPLE 1. Performance Will the product do the intended job? 2. Features What does the product do? 3. Reliability How often does the product fail? 4. Conformance Is the product made exactly as the intended? 5. Durability How long does the product last? 6. Serviceability How easy is it to repair the product? 7. Aesthetics What does the product look like? 8. Perceived Quality What is the reputation of the company  Reliability Assurance The ability to give what was promised, The knowledge and dependably and courtesy KEY DIMENSIONS accurately. OF SERVICE Tangibles Empathy QUALITY These are the physical This is the measure of facilities and caring and individual equipment, and the attention given to (R A T E R) look of personnel. customers. Responsiveness This is the willingness to aid customers and make available prompt service. Total Quality Management 1. What is TQM ? 2. Core Values of TQM 3. Importance of TQM 4. Perspectives of TQM - Managerial Perspectives - Critical Perspectives 5. Philosophies and Advocates of TQM  What is Total Quality Management? A cooperative form of doing business that relies on the talents and capabilities of both labor and management to continually improve quality and productivity. Analyzing the three words such as: Total Quality Management Made up of the whole Degree of excellence a Coordination of tasks product or service to achieve a goal provides  Methods and processes are Every employees in designed to meet the company the needs of internal receives training in and external quality. CORE VALUES customers. OF TQM The company promotes Managers measure cooperation with progress with vendors, suppliers feedback based on and customers to the data. improve quality and hold down costs. Managerial and Critical Perspectives of TQM David Garvin, a Business School Professor, described the Perspectives of Quality, in his book Managing Quality There are four managerial perspectives of quality: product-based; the manufacturing- based, the value-based and the user-based and four critical ones are the transcendental, the social constructivist, the discursive and the slogan (David Garvin) Managerial perspectives view quality as a self-contained entity or process that can be planned, managed, controlled with the help of technical and managerial knowledge. Critical perspectives assert that quality is a complex and multifaceted concept which escapes a definitive definition.  Manufacturing- Product-based based MANAGERIAL PERSPECTIVES OF QUALITY Value-based User-based  MANAGERIAL DEFINITION PERSPECTIVES OF QUALITY 1. Product-based This perspective views quality as a precise and measurable variable. 2.Manufacturing-based This perspective defines quality as the degree to which a specific product conforms to a design or specification. 3. Value-based This perspective considers quality as being the degree of excellence at an acceptable price or the control of variability at an acceptable cost. 4. User-based This perspective focuses on the capacity of a good/service to satisfy or exceed the wants of a specific customer.  Social- Transcenden constructiv tal ist CRITICAL PERSPECTIVES OF QUALITY Discursive Slogan  CRITICAL PERSPECTIVES DEFINITION OF QUALITY 1. Transcendental This approach considers quality as synonymous with ‘innate excellence’. On one hand, quality is universally and absolutely recognizable, on the other hand, it escapes precise definitions and measurements. 2.Social-constructivist This suggests that the meaning of quality are constructed and negotiated within a particular context and depend on existing power relations. 3. Discursive This approach makes language central to the social construction of quality. It is through and with language that people in organizations make meaning, construct and negotiate certain realities. 4. Slogan Organizations’ obsession with quality and the consequent abuse of the term has lead to a situation where quality has become a mere slogan. Integrating Perspectives on Quality Figure 1 shows the quality perspectives in the value chain. Why should you implement a Total Quality Management (TQM) program to achieve quality assurance? There is one simple answer; when properly planned and implemented TQM will provide substantive benefits to your business. Importance of Total Quality Management 1. Quality Products and Services TQM ensures quality products and services. The quality of a product can be measured by its performance, durability and reliability. As such, quality differentiates an organization from its competitors. 2. Customer Satisfaction TQM provides the quality assurance that customers will get what they expect, as well as a process for managing unsatisfied customers, make needed corrections and prevent similar reoccurrences. 3. Waste Reduction TQM enables employees to work closely with suppliers and incorporate “Just in Time” philosophy. 4. Increased Profits It ensures increased revenues and higher profitability for the organization. As a result, employees also enjoy prompt payments of salaries, increased benefits and morale to work. 5. Business efficiency and effectiveness TQM places a focus on internal processes, including: How consistently processes deliver desired outcomes (effectiveness) The productivity of a process compared to the resources used (efficiency)  In summary, when the importance of TQM are employed, profitability is increased while waste are minimized. Teamwork is boosted, staff are motivated to perform their duties and the company achieves long term efficiency and effectiveness. Philosophies and Advocates of TQM DID YOU KNOW that….? …it was the Japanese who first coined the term TQM. It was then developed by the so-called quality gurus. Each “guru” stressed a different set of issues which puts quality at the heart of everything that is done by an operation. Let us know them on the next slides! 1. The Deming Philosophy William Edwards Deming was an American engineer, statistician, professor, author and management consultant. Educated initially as an electrical engineer and later specializing in mathematical physics. He recognized the importance of viewing management processes statistically.  Appreciation for a System Deming’s System of Profound Knowledge It is an effective theory of Theory of management that provides a Knowledge Psychology framework of action for any leader wishing to transform a thriving organization, with the aim for everybody to win. Understanding Variation Appreciation of a System Knowledge of Variation Understanding the overall processes The range and causes of variation in involving suppliers, producers and quality and use of statistical sampling in customers of goods and services. measurements. Theory of Knowledge Psychology Emphasizes that knowledge is not Understanding of people and its possible without theory. interaction between managers, customers and other circumstances. Deming’s 14 points date back several decades when many organizations were ruled by autocratic managers driven by short-term profits. He then proposed the 14 points for achieving excellence. 1. Create consistency of purpose 2. Adopt new philosophies 8. Drive out fear 3. Cease inspection, require evidence 9. Eliminate boundaries 4. Improve quality of supplies 10. No slogans 5. Continuously improve production 11. No numerical standards 6. Ensure employees are educated 12. Cultivate pride in work 7. Supervisors must help staff 13. Encourage self improvement 14. Commit to quality 2. The Juran Philosophy Joseph Juran was an engineer and management consultant specializing in managing quality. He taught quality principles to the Japanese in the 1950’s. He founded the Quality Trilogy and Three Steps to Progress among others.  Quality Quality Planning Control The Juran Trilogy is a universal way of thinking about quality. Quality Improvement Juran’s Three Basic Steps to Progress are broad steps that, in Juran’s opinion, companies must take if they are to achieve world-class quality. Achieve structured improvements on a Create commitment and Establish an extensive continual basis with leadership on the part of training program. dedication and a sense higher management. of urgency. 3. The Crosby Philosophy Philip Crosby was a businessman and author who contributed to management theory. Crosby's principle, Doing It Right the First Time, was his answer to the quality crisis. The essence of his philosophy is expressed in what he called the Absolutes of Quality Management and the Basic Elements of Improvement.  Quality is Create quality by conformance to prevention, not requirements appraisal. Crosby says that “any money spent on quality improvement is a money well-spent.” Therefore, he cited FOUR ABSOLUTES OF QUALITY MANAGEMENT. Measurement of Performance quality is the price standard should of non- be “Zero Defects.” conformance. Crosby’s 14 steps to Quality Improvement 1. Management Commitment 2. Quality Improvement Team 8. Quality Education 3. Quality Measurement 9. Zero Defects Day 4. Cost of Quality Evaluation 10. Goal Setting 5. Quality Awareness 11. Error Cause Removal 6. Corrective Action 12. Recognition 7. Zero Defects Planning 13. Quality Councils 14. Do It All Over Again Similarities and Differences Deming Juran Crosby Quality Quality is a never-ending process Quality arises from reducing variance Language Statistics should Employees speak in their own be the common language language Philosophies PCDA Cycle Quality 4 Absolutes of 14 points Trilogy Quality Mgt. System of Profound Three Basic 14 Steps to Knowledge Steps to Quality Progress Improvement Nature of Social Focused on Organization-wide, Organizations Responsibility and parts of the team building moral conduct; the organization, approach problems with not whole industry are problems with society  WRAP UP Good quality of products always gives every organization a strong edge over its competitors. TQM says that quality management is never a temporary phase that ends when it achieves its targets. It is, in fact, a permanent process that happens all the time.  “Quality is never an accident; it is always the result of high intention, sincere effort, intelligent direction and skillful execution.” - William A. Foster QUESTIONS/CLARIFICATIONS?  REFERENCES Books Lindsay, W.M., Evans J.R (2014) Total Quality Management. Cengage Learning. Learning Resource Package Unit II Total Quality Management Online References Saini, V. (2017) Concepts of Quality, Total Quality and Total Quality Management. Retrieved from http://www.ddegjust.ac.in/2017/Uploads/11/POM-324.pdf Total Quality Management. Retrieved from https://www.managementstudyguide.com/total-quality-management-models.htm  That’s a wrap! You are now ready to unlock your quality principles in the 1st Activity. Activity I. Bringing Quality Principles to Life Like Socrates said many years ago, “the unexamined life is not worth living.” In order to unlock your quality principles and improve your habits, you need to take a step back and examine the kind of life you are living. Directions: Over the next paragraphs are 9 guide questions to ask yourself in order to live a life with meaning. To do this, choose 3 questions and answer it based on your perspective. Ideally, you will want to revisit them often and note your response to see whether you’re improving. This way you become your own mentor, coach and counsellor. This is a process to help you discover your own power to navigate life and tap your hidden potential. Activity I. Bringing Quality Principles to Life Guide Questions Description 1. What do you value? If life change dramatically today, what would you hold most dear? Our lives become richer when we challenge ourselves to reflect those values daily in the choices we make, the more we connect with what matters most to us, the better our lives become. 2. What unique gift do people receive What is it like to be you? by just being around you? What is like for others who are around you when you are in that state? You are unique— the more you are able to connect with the essence of who you are—and accept and let it shine, the better your life becomes. 3. What do you stand for? What is your personal message—the thing that answer dilemmas in your life — that can help others the most? Living a quality life is about spreading our unique message and wisdom in whatever form. Activity I. Bringing Quality Principles to Life Guide Questions Description 4. Who do you love most? Who are the people you love and care about? The more we put our full energies into our relationships with these people—striving to be the best parent, son/daughter and friend we can be—the better our lives become. 5. What do you want to create? What is something you want to create for others to enjoy? Having a project that gives a sense of purpose improves the quality of life. It doesn’t have to be a job or business. It might be a garden or an artistic project. Whatever it is, make time for whatever your soul is calling you to create. 6. Is your social circle influencing your Are they people that encourage you to be a better version of yourself? life positively? The circle of friends you keep around you influences your behavior Want to be successful? Hang out with successful people. Activity I. Bringing Quality Principles to Life Guide Questions Description 7. Do you care more about how your life Asking yourself if you care more about how your life looks or how it looks or how it feels? feels will help remind you that living a fake life to impress others is a walk down a treacherous path. 8. Are you living a lifestyle that promotes Asking yourself this question allows you to make choices that allow physical, mental and spiritual wellbeing? you to live a healthy life and enables to channel your focus to your mental and spiritual wellbeing, two elements of wellness that are often neglected. 9. What are you doing to make yourself Are you recognizing the opportunities given to you? available to new opportunities? According to Woody Allen, the best ways to improve your life is just to open yourself up to the opportunities that cross your path Use the format below. NAME: CLASS SCHEDULE: COURSE & YEAR: COURSE SUBJECT: TITLE OF ACTIVITY: Activity 1- Bringing Quality Principles to Life STUDENT NUMBER: Guide Questions Answers 1. 2. 3.  Get in Touch With Us Visit Study Send us a message or visit us Learn City of Batac, Ilocos Norte, Philippines (63) 77-600-0459 Have fun at MMSU www.mmsu.edu.ph facebook.com/MMSUofficial @MMSUofficial