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Chapter 5 TOTAL QUALITY MANAGEMENT (TQM) 1 Prepared & customized by : Dr.Ali Zahrawi ali.zahrawi@khawarizm i.com

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Page 1: TOTAL QUALITY MANAGEMENT (TQM) 1 Prepared & customized by : Dr.Ali Zahrawi ali.zahrawi@khawarizmi.com

Chapter 5Chapter 5

TOTAL QUALITY MANAGEMENT (TQM)

1

Prepared & customized by : Dr.Ali [email protected]

Page 2: TOTAL QUALITY MANAGEMENT (TQM) 1 Prepared & customized by : Dr.Ali Zahrawi ali.zahrawi@khawarizmi.com

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Total Quality Management (TQM)

• Total - made up of the whole

• Quality - degree of excellence a product or service

provides

• Management - act, art or manner of planning,

controlling, directing,….

Therefore, TQM is the art of managing the whole to achieve excellence.

CHAPTER 5 -- Total Quality Management

Page 3: TOTAL QUALITY MANAGEMENT (TQM) 1 Prepared & customized by : Dr.Ali Zahrawi ali.zahrawi@khawarizmi.com

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What does TQM mean?

• Total Quality Management means that the

organization's culture is defined by and supports the

constant attainment of customer satisfaction through

an integrated system of tools, techniques, and training.

• This involves the continuous improvement of

organizational processes, resulting in high quality

products and services.

CHAPTER 5 -- Total Quality Management

Page 4: TOTAL QUALITY MANAGEMENT (TQM) 1 Prepared & customized by : Dr.Ali Zahrawi ali.zahrawi@khawarizmi.com

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What’s the goal of TQM?What’s the goal of TQM?“Do the right things right the first time, every

time.”

TQM is all managers leading and facilitating all contributors in

everyone’s two main objectives:

(1) total client satisfaction through quality products and

services; and

(2) continuous improvements to processes, systems, people,

suppliers, partners, products, and services.CHAPTER 5 -- Total Quality Management

Page 5: TOTAL QUALITY MANAGEMENT (TQM) 1 Prepared & customized by : Dr.Ali Zahrawi ali.zahrawi@khawarizmi.com

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Basic Beliefs of TQM

1. The customer makes the ultimate determination of quality.

2. Top management must provide leadership and support for all

quality initiatives.

3. Preventing variability is the key to producing high quality.

4. Quality goals are a moving target, thereby requiring a

commitment toward continuous improvement.

5. Improving quality requires the establishment of effective

metrics. We must speak with data and facts not just opinions.

CHAPTER 5 -- Total Quality Management

Page 6: TOTAL QUALITY MANAGEMENT (TQM) 1 Prepared & customized by : Dr.Ali Zahrawi ali.zahrawi@khawarizmi.com

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The three aspects of TQM

CHAPTER 5 -- Total Quality Management

Counting

Customers

Culture

Counting

Customers

Culture

Tools, techniques, and training in their use for analyzing, understanding, and solving quality problems

Quality for the customer as a driving force and central concern.

Shared values and beliefs, expressed by leaders, that define and support quality.

Page 7: TOTAL QUALITY MANAGEMENT (TQM) 1 Prepared & customized by : Dr.Ali Zahrawi ali.zahrawi@khawarizmi.com

CHAPTER 5 -- Total Quality Management 7

Modern History of Quality Management• Frederick W. Taylor wrote Principles of Scientific Management in 1911.

• Walter A. Shewhart used statistics in quality control and inspection, and showed that productivity improves when variation is reduced (1924); wrote Economic Control of Manufactured Product in 1931.

• W. Edwards Deming and Joseph M. Juran, students of Shewhart, went to Japan in 1950; began transformation from “shoddy” to “world class” goods.

• In 1960, Dr. K. Ishikawa formalized “quality circles” - the use of small groups to eliminate variation and improve processes.

• In the late ‘70’s and early ‘80’s:– Deming returned from Japan to write Out of the Crisis,

and began his famous 4-day seminars in the United States– Phil Crosby wrote Quality is Free– NBC ran “If Japan can do it, why can’t we?” – Motorola began 6 Sigma

Page 8: TOTAL QUALITY MANAGEMENT (TQM) 1 Prepared & customized by : Dr.Ali Zahrawi ali.zahrawi@khawarizmi.com

CHAPTER 5 -- Total Quality Management 8

1. Create constancy of purpose for improvement

2. Adopt a new philosophy

3. Cease dependence on mass inspection

4. Do not award business on price alone

5. Work continually on the system of production and service

6. Institute modern methods of training

7. Institute modern methods of supervision of workers

8. Drive out fear

9. Break down barriers between departments

10. Eliminate slogans, exhortations, and targets for the work force

11. Eliminate numerical quotas

12. Remove barriers preventing pride of workmanship

13. Institute a vigorous program of education and retraining

14. Take action to accomplish the transformation

Deming’s 14 Points*

Page 9: TOTAL QUALITY MANAGEMENT (TQM) 1 Prepared & customized by : Dr.Ali Zahrawi ali.zahrawi@khawarizmi.com

CHAPTER 5 -- Total Quality Management 9

PLAN

CHECK

DO

ACT

The Deming Cycle or PDCA CyclePlan a change to the process. Predict the effect this change will have and plan how the effects will be measured

Implement the change on a small scale and measure the effects

Adopt the change as a permanent modification to the process, or abandon it. Study the results to learn what

effect the change had, if any.

Page 10: TOTAL QUALITY MANAGEMENT (TQM) 1 Prepared & customized by : Dr.Ali Zahrawi ali.zahrawi@khawarizmi.com

CHAPTER 5 -- Total Quality Management 10

Elements for Success• Management Support• Mission Statement• Proper Planning• Customer and Bottom Line Focus• Measurement• Empowerment• Teamwork/Effective Meetings• Continuous Process Improvement• Dedicated Resources

Page 11: TOTAL QUALITY MANAGEMENT (TQM) 1 Prepared & customized by : Dr.Ali Zahrawi ali.zahrawi@khawarizmi.com

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Total Quality Managementand Continuous Improvement

• TQM is the management process used to make continuous improvements to all functions.

• TQM represents an ongoing, continuous commitment to improvement.

• The foundation of total quality is a management philosophy that supports meeting customer requirements through continuous improvement.

CHAPTER 5 -- Total Quality Management

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Continuous Improvement versus Traditional Approach

• Market-share focus

• Individuals

• Focus on ‘who” and “why”

• Short-term focus

• Status quo focus

• Product focus

• Innovation

• Fire fighting

• Customer focus

• Cross-functional teams

• Focus on “what” and “how”

• Long-term focus

• Continuous improvement

• Process improvement focus

• Incremental improvements

• Problem solvingCHAPTER 5 -- Total Quality Management

Traditional Approach Continuous Improvement

Page 13: TOTAL QUALITY MANAGEMENT (TQM) 1 Prepared & customized by : Dr.Ali Zahrawi ali.zahrawi@khawarizmi.com

CHAPTER 5 -- Total Quality Management 13

Measurement

Measu

rem

ent

Measu

rem

ent

Measurement

Empowerment/ Shared Leadership

Process Improvement/

Problem Solving

Team Management

Customer Satisfaction

Business Results

The Continuous Improvement Process

. . .

Page 14: TOTAL QUALITY MANAGEMENT (TQM) 1 Prepared & customized by : Dr.Ali Zahrawi ali.zahrawi@khawarizmi.com

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Value-based Approach• Manufacturing

Dimensions– Performance– Features– Reliability– Conformance– Durability– Serviceability– Aesthetics– Perceived quality

• Service Dimensions– Reliability– Responsiveness– Assurance– Empathy– Tangibles

CHAPTER 5 -- Total Quality Management