Quality Total Management
TQM
Dr. Hesham A. Aziz
Hesham A. Aziz
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Total Quality Management
TQM
TQM
- TQM is an enhancement to the traditional way of doing business.
- TQM is involve in designing a system that integrate production
process
( Quality management ) and the whole organization (all employees)
- Everyone in the organization is responsibility for the quality.
- People come to work not only to do their jobs, but also to think
about how to improve their jobs. ( required cultural change)
Total
Quality
= Made up of the whole
= Degree of excellence a product or service
provides.
Management = Act, art, or manner of handling,
controlling, directing, etc.
Concept of TQM
Integrating the separate components
Strategy
Leadership
Commitment
Managing
Suppliers
Organizational structure
Provision of resources
Customers
TQM
People
Systems
Attitudes
Behavior
Involvement
Empowerment
ISO 9000
The relationship between TQM and ISO 9000
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TQM implementation strategy
TQM
Customers
Employees
Communication
Involvement
Development
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External/Internal
Requirements
Processes
Correction
Prevention
Permanence
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Performance as a function of a combination of variables
Performance =
f
( Individual
X
Intrinsic factors
Aptitudes
Attitudes
Knowledge
Skill
Physical
Temperament
Motivation
Etc.
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X
Organization )
Extrinsic factors
Organizational policies
Systems
Culture
Resources available
Structure
Processes
Leadership style of boss
Reward & punishment systems
Situational factors.
Etc
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CULTURAL CHANGE
From
Grapevine and secrecy
Control of staff
Inspection & Firefighting
Internal focus on rules
Cost and schedule
Stability seeking
Adversarial relations
Allocating blame
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To
Open communications
Empowerment
Prevention
External focus on customer
Quality of conformance
Continuous change and improvement
Co-operative relations
Solving problems at their roots
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THE PROCESS
People
Equipment
Complaints, dissatisfaction
ls
Pro
c
Ser ess/P
Fin
vic rod
ea
u
al t
udi ct
e st
ts
of
pro
du
ct/
ser
vic
e
tro
In
pr
oc
e
ss
co
n
l
tia ign
ns
ote s de
p
of ces
ew
n ro
vi
tio p
re
is/
ica ring
f
s
nti du
aly
e
n
Id res
sa
u
il
es
Fa
oc
Pr
Warranty , reliability
INFORMATION ABOUT
PERFORMANCE
ACTION ON THE
PROCESS
Materials
Methods
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Environment
RE MOTS UC
OUTPUT
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Comparison between old and new culture with typical Quality elements
Quality Element
Quality management
Total Quality Management
(TQM)
Definition
Product oriented
Customer oriented
priorities
Second to service and cost
First among equals of service and
cost
Decisions
Short-term
Long-term
Emphasis
Detection
Prevention
Errors
Operations
System
Responsibility
Quality control
Everyone
Problem Solving
Managers
Teams
Procurement
Price
Life-cycle costs, partnership
Managers Role
Plan, assign, control, and
enforce
Delegate, coach, facilitate, and
monitor
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Levels of Difficulty in Managing Quality
ISO 9000
TQM
Writing a Policy
Defining Procedures
Following them
Getting everyone else to follow them
Everyone wants to follow them
Becoming a prevention orientated continuously
improving organization
Levels of difficulty in implementing quality stategies.
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Differences between ISO 9000 and
TQM.
ISO 9000
TQM
* Not necessarily customer focused
* Definitely customer focused.
* Not integrated with corporate strategy.
* Integral to company strategy.
* Technical systems and procedures focused.
* Philosophy, concepts, tools and techniques
focused.
* Employee involvement not necessary.
* Emphasis on employee involvement and
empowerment.
* No focus on continuous improvement ISO
* Continuous improvement and TQM
synonymous. TQM a never ending journey.
9000 a destination.
* Can be departmentally focused.
* Organization wide- all departments,
function and levels.
* Quality Department responsible for Quality. * Everyone responsible for quality.
* More likely to preserve the status quo.
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* Involves process and culture change.
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What is Total Quality Management?
TQM is a philosophy of managing a set of business practices
that emphasizes
Continuous improvement in all phases of operations,
100 percent accuracy in performing activities,
Involvement and empowerment of employees at all
levels,
Team-based work design,
Benchmarking, and
Fully satisfying customer
expectations
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Goals of Quality Improvement Programs
Defect-free manufacture
Superior product quality
Superior customer service
Total customer satisfaction
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Popular TQM Approaches
Popular
Demings
14 Points
The Juran
Trilogy
Crosbys 14
Quality Steps
1992
Baldridge
Award Criteria
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Components of
Popular TQM Approaches
Demings 14 Points
1. Constancy of purpose
2. Adopt the philosophy
3. Dont rely on mass
inspection
4. Dont award business
on price
5. Constant improvement
6. Training
7. Leadership
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8. Drive out fear
9. Break down barriers
10. Eliminate slogans and
exhortations
11. Eliminate quotas
12. Pride of workmanship
13. Education and
retraining
14. Plan of action
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Components of
Popular TQM Approaches
The Juran Trilogy
Quality Planning
Set goals
Quality Control
Evaluate
performance
Identify customers
Compare to goals
and their needs
and adapt
Develop products
and processes
Quality
Improvement
Establish
infrastructure
Identify projects
and teams
Provide resources
and training
Establish controls
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Components of
Popular TQM Approaches
Crosbys 14 Quality Steps
1. Management
commitment
2. Quality improvement
teams
3. Quality measurement
4. Cost of quality
evaluation
5. Quality awareness
8. Supervisor training
9. Zero-defects day
10. Goal-setting
11. Error cause removal
12. Recognition
6. Corrective action
13. Quality councils
7. Zero-defects committee
14. Do it over again
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Components of
Popular TQM Approaches
1992 Baldridge Award Criteria (1000 points)
1. Leadership
points)
2. Information &
analysis
(80
points)
3. Strategic quality
planning
(60
points)
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4. Human resource
development
(150 points)
(90
Quality
7. Customer focus &
satisfaction (300
points)
5. Management of
process quality (140
points)
6. Quality & operation
results
(180
points)
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Twelve Aspects Common to TQM and Continuous
Improvement Programs
1. Committed leadership
7. Open organization
2. Adoption and
communication of TQM
8. Employee
empowerment
3. Closer customer
relationships
9. Zero-defects mentality
4. Closer supplier
relationships
5. Benchmarking
10. Flexible manufacturing
11. Process improvement
12. Measurement
6. Increased training
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Characteristics of TQM/Continuous
Improvement Programs
Valuable competitive asset in a companys resource
portfolio
Have hard-to-imitate aspects
Require substantial investment of
management time and effort
Expensive in terms of training and meetings
Seldom produce short-term results
Long-term payoff a instilling TQM culture
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TQM vs. Process Reengineering
Reengineering
Aims at quantum gains of
30 to 50% or more
TQM
Stresses incremental progress
Techniques are not mutually exclusive
Reengineering - Used to produce a good basic design
yielding dramatic improvements
TQM - Used to perfect process, gradually improving
efficiency and effectiveness
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Using Best Practice Programs
as an Implementation Tool
Select indicators of successful strategy execution
Benchmark against best practice
companies
Reengineer business processes
Build a TQ culture
Requires top management commitment
Install TQ-supportive employee practices
Empower employees to do the right things
Provide employees with quick access to required information
Preach that performance can be improved
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TQM Structure
- Any TQM system has to have a formal structure in order to function.
- Most TQM system comprise eight major components:
1. Commitment Phase
(developing internal resolve).
2. Mission Phase
(defining objectives and strategy)
3. Customer Phase
(identifying what the customer wants);
4. Process Phase
( tactical analysis )
5. Vision Phase
( generation of eventual outcomes ).
6. Risk management Phase ( risk assessment and management
strategy)
7. Planning Phase
8. Implementation Phase
( tactical more and monitoring)
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1- Commitment Phase
- Where the organization makes a high level of commitment to
implement the TQM approach.
- Common reasons include :
1.
2.
3.
4.
5.
Changed perception of customer demands and expectations;
Changing organizational structures and policy;
The introduction of new high specification products;
The introduction of revised industry standards;
The introduction of new technology and altered production processes.
2- Mission Phase:
- Defining the aims and objectives of the TQM system in terms of a
strategic outcome.
- Breakdown the mission into individual components that are definable
and achievable for each section of the process.
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3- Customer Phase
- The organization reviews its current customers and searches potential new
customer.
- Customer research and marketing are vitally important.
- Existing customer base can change.
4- Process Phase
- TQM assumes the most defects arise form the process rather from the
people who operate the process.
- Matching production system with customer expectations.
- Required details and expressive research ( Consult designers or
manufacturer).
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5- Vision Phase
- It takes the customer and process phase results an establish the out comes
as firm parameters.
- Projecting alternative scenarios of customer requirements and alterations to
the process.
- The outcome usually meets the most customer expectation within the limits
of the process system (company vision).
6- Planning Phase
- TQM has to be planned in all levels of the organization.
- The implementation process has to be carefully planned.
- Create tactical response planning to allow for unforeseen or non-quantified
eventualities.
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7- Risk Management Phase
- Detail risk assessment is required.
- Link with the planning phase to put in place for risk of failure at any stage.
8- Break through and Implementation Phase
- It is the central to TQM.
- It involves clear communication of the whole TQM system to each and
ever member of the organization with clear objectives.
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Group quality
Steering committee
Consultant
Regional/Local
Subsidiaries steering
groups
Trainers
and
Facilitators
Task teams
Example TQM organizational structure
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Start
Step 1
Gather the facts
Where are we now?
Step 2
Draw up an
Improvement plan
Step 6
Review and restart
Step 3
Broadcast the plan to
Every person in the organization
Step 5
Make improvements
to the system
Step 4
Form TQM task teams
End
Example quality improvement process
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Step 1. Gather the Facts: Where Are We Now?
Quality now
What do our customers really want?
How do our customers define quality?
How effective is our quality system relative to BS5750 and ISO9000?
How is quality measured and monitored?
Who is responsible for quality standards?
Where does quality need to be improved?
Quality future
What will our customers want in the future?
How will they define quality then?
How are our competitors responding?
What environmental factors could influence?
How will we have to respond?
Internal attitude survey
Why do departments exist ?
How do these goals relate to company objectives?
How do we measure achievement of goals?
How do groups communicate?
Do departments research ways of improving service to each other?
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Communications
- Review of existing communication systems;
- Feedback from those on the receiving end;
- Evaluation of whether methods are impersonal, inconsistent,
undermining or inefficient.
- implementing training and development.
Survey results
Survey are often used to establish answers to the following:
What is important to customers?
How do customers perceive the company?
Where we are wasting money?
How do staff feel about the partnership between themselves and
the company?
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Step 2 Draw Up an Improvement Plan?
- Workshops are often used to develop an accurate and agreed
improvement plan.
- These are often known as TQM focus workshops.
- They use brainstorming and discussion techniques to develop a
group decision on the most effective method of achieving the
improvement targets.
Step 3. Broadcast the Plan to Every Person in the
Organization
-The improvement plan has to be broadcast to everyone in the
organization.
-Through TQM implementation meetings and seminars.
Step 4. Form TQM Task Teams
- At each level through the organization.
- Review their own performance and make recommendations.
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Step 5. Make Improvements to the System
-The take teams make a recommendation for improving the
situation.
-The teams effectively develop a set of quality objectives.
Step 6. Review and Restart
- The review process is an evaluation of the improved system as
compared with the original one.
-The feedback process and will determine what quality
improvements will be implemented during the next phase .
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Benefits from Successful TQM
12345678-
Reduction in customer complains.
Reduction in cost of Quality.
Increased market share and reduced cost.
Reduced defects increased customer satisfaction.
Increased efficiency.
Increased profit, productivity and market share.
Saving from improved communications and co-operation.
Increased return on investment.
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TQM Advantages:
Increased organizational awareness.
Increased appreciation.
Increased efficiency.
Improved communications.
Improved employee performance.
Improved operational systems.
Improved external relationships.
Improved reputation.
Opening potential new markets.
TQM disadvantages
Cost
Inconvenience.
Selling.
Distribution.
Training.
Dilation.
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Thank You
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