TOTAL QUALITY MANAGEMENT:

TQM


Origins, Evolution & key elements
What is Quality?
Quality is fitness for use
(Joseph Juran)
Quality is conformance to requirements
(Philip B. Crosby)
Quality of a product or services is its ability to satisfy
the needs and expectations of the customer
Evolution of Quality Management
Inspection
Quality
Control
Quality
Assurance
TQM
Salvage, sorting, grading, blending, corrective
actions, identify sources of non-conformance
Develop quality manual, process performance
data, self-inspection, product testing, basic
quality planning, use of basic statistics,
paperwork control.
Quality systems development, advanced quality
planning, comprehensive quality manuals, use of
quality costs, involvement of non-production
operations, failure mode and effects analysis, SPC.
Policy deployment, involve supplier & customers,
involve all operations, process management,
performance measurement, teamwork, employee
involvement.
Demings view of a production as a system
Consumer
Research
Design &
redesign
Receipt & test of
materials
Suppliers,
materials &
equipment
Production,
assembly,
inspection
Distribution
Consumers
Test of processes, machines,
methods, cost
Improve Quality
Productivity improves
Provide jobs and
more jobs
Demings Chain Reaction
Cost decreases because
of less rework, fewer
mistakes, fewer delays,
snags, better use of
machine time and
materials
Stay in business
Capture the market with
better quality and lower price
What is TQM?
Constant drive
for continuous
improvement and
learning.
Concern for
employee
involvement and
development
Management
by Fact
Result Focus
Passion to deliver
customer value /
excellence
Organisation
response
ability
Actions not just
words
(implementation)
Process
Management
Partnership
perspective
(internal /
external)
BASIC PRINCIPLES OF TQM
Approach Management Led
Scope Company Wide
Scale Everyone is responsible for Quality
Philosophy Prevention not Detection
Standard Right First Time
Control Cost of Quality
Theme On going Improvement
W. Edwards Demings 14 Points
Create constancy of purpose towards improvement
of product and services.
Adopt the new philosophy. We can no longer live
with commonly accepted levels of delays, mistakes,
defective workmanship.
Cease dependence on mass inspection. Require,
instead, statistical evidence that quality is built in.
End the practice of awarding business on the basis of
price tag.
1)
2)
3)
4)
W. Edwards Demings 14 Points
Find problems. It is managements job to work
continually on the system.
Institute modern methods of training on the job.
Institute modern methods of supervision of
production workers. The responsibility of foremen
must be changed from numbers to quality.
Drive out fear that everyone may work effectively for
the company.
5)
6)
7)
8)
Break down barriers between departments.
Eliminate numerical goals, posters and slogans for
the workforce asking for new levels of productivity
without providing methods.
Eliminate work standards that prescribe numerical
quotas.
Remove barriers that stand between the hourly
worker and his right to pride of workmanship.
9)
10)
11)
12)
W. Edwards Demings 14 Points
Institute a vigorous programme of education and
retraining.
Create a structure in top management that will push
everyday on the above 13 points.
13)
14)
W. Edwards Demings 14 Points
PLAN
CHECK
DO ACT
The Deming Cycle or PDCA Cycle
Plan 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.
Demings System of Profound Knowledge
Appreciation for
system
Knowledge
about variation
Theory about
knowledge
Knowledge of
psychology
Learning
LEARNING AND TQM
Process Improvement
Quality Improvement
Customer
Satisfaction
Shareholder
Satisfaction
Employee
Satisfaction
Philip Crosbys Four Absolutes
Definition : Conformance to
requirements
System of quality is
prevention
Performance Standard :
Zero Defects

Measurement : Price of non-
conformance (PON)
What is Quality?
What system is needed
to cause quality?
What performance
standard should be
used?
What measurement
system is required?
Crosbys Successful Company
Characteristics of the Eternally Successful
Organisation
People do things right routinely
Growth is profitable and steady
Customer needs are anticipated
Change is planned and managed
People are proud to work there
Joseph M. Jurans Quality Trilogy
Quality Planning
Establish quality goals
Identify customer needs
Translate needs into our
language
Develop a product for
these needs
Optimise product
features for these needs
Quality Control
Prove the process can
produce under
operating conditions
Transfer process to
operation
Quality
Improvement
Seek to optimise the
process via tools of
diagnosis
1) Identify who are the customers
2) Determine the customers needs
3) Translate the needs into our language
4) Develop a product to meet those needs
5) Optimise a product so as to meets our needs
as well as the customers.
6) Develop a process which is able to produce the
product
7) Optimise the process
8) Prove the process can make the product
under operating conditions
Jurans Quality Planning Road Map
Joseph M.Juran and the Cost Of Quality
2 types of costs:
Unavoidable Costs: preventing defects (inspection,
sampling, sorting, QC)
Avoidable Costs: defects and product failures
(scrapped materials, labour for re-work, complaint
processing, losses from unhappy customers
Gold in the Mine
Joseph M.Juran and the Cost Of Quality
100% defective Point of Enough
quality
Total
Costs
Unavoidable
costs
Avoidable
costs
Costs
FOUR KEY PRINCIPLES
Measure quality so you can affect it
Focus on a moving customer
Involve every employee
Think long term - Act short term
THE CASE FOR QUALITY
1 Success of competitors who take quality seriously

2 Rising expectations of customers

3 Quality differentiates companies from the
competition

4 Narrowing of supplier bases by quality conscious
companies

.
5 Growing evidence that growth in market
share comes from sustained quality.

6 Cost advantages

7 High cost of catastrophic failure

8 Inspection poor substitute for right first time
THE CASE FOR QUALITY
SEVEN DEADLY SINS OF TQM
Flight to nowhere
One size fits all
Substituting TQM for leadership
Inside - Out indicators
Mandatory religion
Quality kept as a separate activity
Teaching to the test
IS QUALITY A SOUND INVESTMENT?
Year Company Stock Growth (Oct 94)
1988 Motorola 373.0%
1988 Westinghouse (CNFD) - 49.6%
1989 Xerox (BPS) 75.9%
1990 General Motors 1.6%
1990 Federal Express 10.6%
1990 IBM (IBM Rochester) - 34.9%
1991 Selectron 526.9%
1992 AT&T (UCS) 32.2%
1992 AT&T (TSBU) 32.2%
1992 Texas Instruments (DS&E) 106.8%
1993 Zyta 8.4%
1994 Eastman Chemical 18.5%

Total Stock Value 23016 (91.8% growth)
Standard & Poor 500 Stock value 15911 (32.6% growth)
Source: US Dept. of Commerce Study 1995
Quality is a Journey,
not a Destination






































Records
Control
Audit
Management
Responsibilities
System
Structure
Resources
Personnel
Material
Responsibilities
Management review
Objectives
Policy
Interface with
customer
Elements of the ISO 9000 Standards

Contents of The DEP
The Role of Quality assurance.
Q/A in project management.
Contract & Procurement Q/A.
Design Q/A.
Procurement Q/A.
Construction & Commissioning Q/A.
Typical contents of different type of PQP.


Project Quality Plan
Definition

The project quality plan is a documented description
of the project management system and must be
approved by the AEM, in part to demonstrate his
commitment to quality but primarily it is the means by
which technical and administrative authorities are
delegated through out the project.

All projects shall have quality plan.

Project engineer shall develop and update the PQP.
.
Relationships between project quality plans
PQP
ADCO
PQP
Designer
PQP
construction
contractor
Suppliers
quality plans
Preparation of a project quality plan
Confirm project objectives
Plan the project allocate resources
Identify critical activities
Define standards and controls
Audits
Close-out
Student /
Supervisor
Supervisor
Student
Student
Supervisor
Student
CONTENTS OF TYPICAL PROJECT QUALITY PLAN
1. COVER SHEET + REVISION CONTROL

1.1 Document purpose
1.2 Policy statement

2.INTRODUCTION

2.1 Background
2.2 Project Scope
2.3 Project Objectives & Constraints
2.4 QA Standards (Consider putting in Document purpose)
CONTENTS OF TYPICAL PROJECT QUALITY PLAN
3. EXECUTION STRATEGY

3.1 Project Management risks.
3.2 Critical Activities.
3.3 Control Strategy.
3.4 Cost & Schedule.
3.5 HSE Plan.
3.6 Commissioning & Hand-over.

CONTENTS OF TYPICAL PROJECT QUALITY PLAN
4.ORGANISATION, RESPONSIBILITES & INTERFACES
4.1 Table with names
4.2 External interfaces
4.3 Definition of specific roles and responsibilities.

5. QUALITY REFERENCE SYSTEM
5.1 Controlling Documents
5.2 Applicable Procedures (Check list based)

6. INTEGRATION OF CONTRACTORS & SUPPLIERS
6.1 Define Contractor interfaces.
6.2 Contractor + Supplier Quality System.

CONTENTS OF TYPICAL PROJECT QUALITY PLAN
7.AUDITS & REVIEWS

This section should include schedule for all audits and reviews
planned during the project execution period

8. QUALITY IMPROVEMENT
8.1 LESSONS LEARNT
8.2 CLOSE-OUT REPORT

CONTENTS OF TYPICAL PROJECT QUALITY PLAN
PREPARATION & APPROVALS:

PREPARE: Student

APPROVE: Supervisor

Timing

The Student shall develop the PQP immediately after receiving the
Assignment and agree the project.