26 July 2005 Total Quality Management Group 3

TOTAL QUALITY MANAGEMENT

Engineering 7943: Production and Operations Management

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OUTLINE

• Definition• History• Customer Satisfaction• Continuous Improvement of Performance• Employee Involvement• Implementation• Barriers• Benefits

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DEFINITION

• Quantitative methods and human resources

• Three elements– Customer satisfaction– Continuous improvement of performance– Employee involvement

• Includes customers and employees

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HISTORY

• Emerged from the quality movement

• 1920s - 1930s: Shewhart’s Statistical Quality/Process Control

• 1940s - 1960s: Deming and Juran

• 1961: Feigenbaum, Total Quality Control

• 1970s: Crosby, zero defects, quality is free

• 1983: Feigenbaum, re-released Total Quality Control

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CUSTOMER SATISFACTION

• Customer obsession– Number one priority

• Experiencing the process– Management acting as consumer / customer

• Profiling– Questionnaires– Surveys– Personal visits– Focus groups

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CUSTOMER SATISFACTION

• Quality and reliability

• Follow-up consultation

• Kansei

• Importance of value

• Psychological impression– Websites– Availability– Delivery

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CONTINUOUS IMPROVEMENT

• Japanese word kaizen, meaning incremental change

• Use, Statistical Process Control and Quality Teams

• USA-PDCA method

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UNDERSTAND (USA-PDCA)

• Know customers, both internal and external

• Know customer needs– Who are the customers of a process?– What products or services does the process

supply?– What are the customer needs?– To what extend does the product or service

meet customer expectations for quality?

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SELECT (USA-PDCA)

• Identify discrepancies

• Discrepancy if a product fails or exceeds expectations

• Prioritize

• Select

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ANALYZE (USA-PDCA)

• Current State Analysis and Cause Analysis with flow charts and statistical quality control (SQC, similar to SPC)

• SQC: control charts, histograms, scatter diagrams, pareto charts, fishbone diagrams, and check sheets

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PLAN (USA-PDCA)

• PDCA cycle, begins when the cause of a variation has been identified; eliminate or emulate

• Plan: Brainstorm, choose and develop a plan

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DO (USA-PDCA)

• Carry out the plan

• Can be done on experimental basis

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CHECK (USA-PDCA)

• Use SPC to analyse performance

• If not solved, loop back to the plan or analyze stage

• If solved, move to the adopt phase

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ADOPT (USA-PDCA)

• Implement the solution across the entire organization

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REPEAT

• PDCA cycle may be repeated many times for an individual process

• The USA process should be updated or repeated after major changes or time increments

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EMPLOYEE INVOLVEMENT

• Foster employee ownership

• Management system supportive of collaboration

• Relying on quality at the source, not inspection

• Employees involved in improving processes

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QUALITY TEAMS

• Several volunteer employees responsible for a specific process

• Undertake continuous improvement tasks, utilizing statistical process control to verify improvements

• Recognise employees for contributions

• Do not work well without managerial support or statistical process control

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SELF-MANAGED TEAMS

• Hard to implement

• Employees must be willing to take on more responsibility

• If completed successfully, can be highly efficient

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SUGGESTION SYSTEM

• Support of management and supervisors

• Clear submission and rejection procedures

• Reasons for rejecting made clear

• Recognition when a suggestion is implemented

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IMPLEMENTATION

• Requires systematic, integrated, consistent, organization wide approach

• Determine specific changes necessary to create and maintain TQM

• Requires a change in three dimensions– Physical methods (process , technology)– Culture (norms, values, beliefs)– Political System (decision making systems, power base)

• TQM should be– purpose oriented– evolve from an organization's strategic plan– based on the expectations held by the customers

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IMPLEMENTATION (CONT’D)

• Differs from one organization to the next• Common Aspects for TQM implementation:

– Assessment of Current State– Determination and application of Plan of Action– Training

• Quality of leadership is fundamental in facilitating change

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ASSESSMENT OF CURRENT STATE

• Helps predict likelihood of successful implementation • Essential information regarding

– Organization’s history– Current needs– Existing employee quality of life– Precipitating events leading up to TQM

• Organization should be “basically healthy” before attempting TQM– Significant problems endanger success

• unstable funding base• weak administrative systems• lack of managerial skills• poor employee morale

• Level of stress on organization may be desirable to initiate TQM

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ACTION PLANNING

• Method to determine and implement desired TQM changes• Involves entire organization• General steps for Action Planning

– Define objective

– Determine specific goals to support objective

– Develop strategy

– Determine and apply tactics and operations necessary for success

• Integrate action into organization’s culture• Continuously collect data regarding improvement to ensure success

of plan

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TRAINING

• Comprehensive training program necessary to create and maintain TQM

• Institutionalized in entire organization• Focuses on specific behaviors and skills required for

TQM environment• Training begins with management and moves down

through organization as necessary• Candidate list for TQM training include

– Action Planning– Leadership– Team Building– Tools and Techniques

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ROLE OF MANAGEMENT

• Leadership is key element in successful implementation of large-scale change

• Leaders– Show need and set vision– Take a long-term perspective– Motivate others to stick with the process– Are persistent, using constant reinforcement

• Leadership style should be participative

• Leaders expect a long term process, including a transition period

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SUGGESTIONS

• Don’t “Do TQM”• TQM should not exist as a separate entity of

organization• Employees should be involved in decisions whenever

possible• TQM should not have an end

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BARRIERS

• Lack of management commitment• Inability to change organizational culture• Improper planning• Lack of continuous training and education• Incompatible organizational structure• Insufficient resources• Use of prepackaged program• Ineffective measurement techniques• Inadequate attention to customers• Inappropriate conditions for implementation • Inadequate use of teamwork

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BENEFITS

• Customer satisfaction

• Intangible and tangible

• Product quality– Less waste and rework– Higher profits

• Employee involvement– Training– Quality of life