Total Quality Management

Introduction

TQM is an enhancement to the traditional way of

doing business.
It is proven technique to guarantee survival in
the world class competition.
By changing the actions of management, the
culture and actions of entire organization can be
transformed.

TQM and Reliability Engineering

Total Quality Management

TQM and Reliability Engineering

Total Quality Management

Word by Word Analysis
Total
Quality

Made up of whole
Degree of excellence a product or
service provides
Management
Art of handling or Manner of
handling
So, TQM is the art of managing the whole business to
achieve the excellence.

TQM and Reliability Engineering

TQM - Definition
TQM is defined as both philosophy and set of
rules that represent the foundation of a
continuously improving organization. It is the
application of quantitative methods and the
human resources to improve all the processes
with in an organization and exceed the
customer needs now and in the future.

TQM and Reliability Engineering

Basic Approach
TQM requires six basic concepts:

A committed and involved management to provide

long term top-to-botttom organizational support.
An unwavering focus on the customer.
Effective involvement and use of entire work force.
Continuous improvement of business and
production process.
Treating the suppliers as partners.
Establish performance measures for the process.
TQM and Reliability Engineering

1. A committed and

Management must participate in the quality

program.
A team to set clear vision, goal and to direct.
Quality goal inclusion in the business plan.
Conduct of QIP annually and take the input of
entire work force.
Managers as coach to improve quality.
Quality Improvement is a continual activity.
Communication to everyone.
TQM and Reliability Engineering

2. An unwavering focus

Focus on the customer is a key to a powerful TQM.

Satisfying the customer needs.
Listen to Voice of the customer.
Emphasize on design quality and defect free
services.
Concentrate on defect prevention.
Insist every one to attain 100 % customer
satisfaction.

TQM and Reliability Engineering

3. Effective involvement

TQM is organization wide challenge eveyones

responsibility.
Training on TQM, SPC and other QIPs and involve
them in project teams.
Inclusion of internal customers in project teams
Changing behavior is the goal.
Dont come to do your job, but to improve.
People to be trained at lowest possible level for
optimum performance.
TQM and Reliability Engineering

4. Continuous improvement

Continuous striving to improve all business and

production process.
Areas such as on-time delivery (OTD), order entry
efficiency, billing error rate, customer satisfaction,
cycle time and scrap reduction are best suitable to
begin with.
Some problem solving techniques are SPC, bench
marking, quality function deployment, ISO 9000.

TQM and Reliability Engineering

5. Treating suppliers as

More than 40% of the sales are purchased goods.

Supply quality should be outstanding.
A partnering relationship with the suppliers.
Profit or loss based on success of the goods sold.
Focus on quality rather than the cost.
Minimum suppliers maximum quality.

TQM and Reliability Engineering

6. Establish performace

Performance measures such as uptime, %

nonconforming, absenteeism and customer
satisfaction.
Communication to everybody.
Quantify the data for analysis.
Analysing the data periodically and find out the
lacking area.

TQM and Reliability Engineering

Comparison

Comparison b/w traditional Vs TQM

TQM and Reliability Engineering

TQM Framework

TQM and Reliability Engineering

Quality

TQM and Reliability Engineering

Quality - Definition

Quality An excellent product or service

It is based on intended use and selling price.
For eg.
difference between plain steel and chrome plated steel.

However, quality can be quantified as

Q=P/E
Where, Q Quality
P - Performance
E - Expectation

TQM and Reliability Engineering

Quality - Definition

Definition ISO 9000:2000

It is defined as the degree to which a set of
inherent characteristics fulfils the requirements.
Degree Quality can be used with adjectives like poor,
good, excellent
Inherent Something existing
Characteristics qualitative or quantitative
Requirements the need or expectation stated. Generally
stated by organisation

TQM and Reliability Engineering

Dimensions of quality

TQM and Reliability Engineering

Dimensions of quality

TQM and Reliability Engineering

Deming Philosophy
Intro

Totally 14 points available

Developed in 1950 and given in many seminars.
Adopted by leading CEOs in Japan

TQM and Reliability Engineering

TQM and Reliability Engineering

14 Points
1.Create and Publish aims and purposes of the
organization.

Management must demonstrate their commitment

to this statement constantly.
It includes investors, customers, suppliers,
employees.
This statement is the forever changing document
that requires input from everyone.

TQM and Reliability Engineering

14 points

Organization should develop a long term view for

at least 10 yrs and plan to stay in business by
setting long range goals.
Resources must be allocated for research training
and continuing education to achieve the goals.
Innovations must be promoted.
An organizational philosophy is developed to send
message that everyone is part of the organization.

TQM and Reliability Engineering

14 points
2. Learn the new Philosophy

Top management and everyone should learn the

new philosophy.
Organization must seek never ending
Improvements and refuse to accept
nonconformance.
Customer satisfaction is no.1 priority.
The organization must concentrate on defect
prevention rather than defect detection.
TQM and Reliability Engineering

14 points

Process has to be improved to enhance the quality

and increase the productivity.
Everyone in the organization including the union
must be involved in the quality journey.
The supplier must be helped to improve the quality
by giving statistical evidence of conformance.

TQM and Reliability Engineering

14 points
3. Understand the purpose of inspection

Management must understand that the purpose of

inspection to improve the process to reduce the
cost.
Mass inspection is costly and unreliable.
Statistical evidence is required of self and supplier.
Mass inspection is managing for failure and defect
prevention is managing for success.

TQM and Reliability Engineering

14 points
4. Stop awarding business based on price alone

Organization must stop awarding business based

on the low bid.
The goal is to have single supplier for each item to
develop a long term relationship of royalty and
trust, thereby improved products and services.
Purchasing agents must be trained in SPC.
They must follow the materials through out the
entire life cycle to examine the customer
expectations.
TQM and Reliability Engineering

14 points
5. Improve constantly and forever the system.

Management must take more responsibility for

problems actively finding and correcting.
If problems are founded out the quality and
productivity are continually and permanently
improved and cost are reduced.
Variation is expected, there must be continuous
striving for its reduction using control charts.
Responsibilities are assigned to teams to remove
the causes of problem and continually improve the
process.
TQM and Reliability Engineering

14 points
6. Institute Training

Each employee is oriented to organization

philosophy of commitment to never ending
improvements.
Management must allocate resources to train
employees to perform their jobs in the best
manner.
Everyone must be trained statistical methods and
these methods should be used to monitor the need
for further training.
TQM and Reliability Engineering

14 points
7. Teach and Institute leadership

Improving supervision is managements

responsibility.
Instead of focusing on a negative , fault finding
atmosphere , supervisor should create a positive
and supportive one where pride in workmanship
can flourish.
All communication must be clean from top
management to supervisors.

TQM and Reliability Engineering

14 points
8. Drive out fear, create trust and create climate
for Innovation

Management must encourage open effective

communication and team work.
Fear is caused by general feeling of being
powerless.
Lack of job security, possible , performance
appraisals, ignorance of organizational goals.
Driving the fear out of workplace involves
managing for success.
TQM and Reliability Engineering

14 points

Management begin with adequate training, proper

tools to accomplish the task good supervision for
the workers.
Good treatment of the people eliminate the fear
and people will work for the organization.

TQM and Reliability Engineering

14 points
9. Optimize the efforts of Teams, Groups and
Staff areas

Internal barriers everywhere (among all levels of

Mgmt).
External barriers exist (Customer and supplier)
Reasons:
Poor communication, ignorance of organizations
mission, competition fear, personal grudges.

Need long-term perspective to breakdown.

Different areas work together
TQM and Reliability Engineering

14 points
10. Eliminate exhortations for the work force

Expecting increased productivity with no specific

improvement methods
Goals should be set that are achievable and
support for long term success.
Improvements in the process cannot be made
unless the tools and methods are available.

TQM and Reliability Engineering

14 points

11a. Eliminate numerical quotas for the work

force

Management should learn the methods for

improvement.
Quotas and work standards focus on quantity
rather than quality.
Encouraging poor workmanship to meet the
quotas.
Quotas should be replaced with statistical methods
of process control.
TQM and Reliability Engineering

14 points

Management must provide and implement the

strategy for never ending improvements to reflect
the new policies.

Eliminate management by objective

Mgmt must learn the capabilities of the processes

and how to improve them.
Internal goals set by management without a
method are useless.

TQM and Reliability Engineering

14 points

Management must provide and implement the

strategy for never ending improvements to reflect
the new policies.

Eliminate management by objective

Mgmt must learn the capabilities of the processes

and how to improve them.
Internal goals set by management without a
method are useless.

TQM and Reliability Engineering

14 points
12. Remove barriers that rob people of pride of
workmanship

Workers do not know how to relate to the

organizations mission.
They are being blamed for system problems.
Poor design lead to the production of junk
Inadequate training.
Ineffective equipment for carrying out the required
work.
TQM and Reliability Engineering

14 points
13. Encourage education and self improvement
for everyone

A long term commitment to educate and train the

people.
14 points and organizations mission should be the
foundation for the education program.
Everyone to be retrained if the organization
requirement change to meet the chasing
environment.
TQM and Reliability Engineering

14 points
14. Take action to accomplish the transfomation

Take the inputs from everyone for never ending

improvement of an organization.
Organization to get the corporate structure to
implement the philosophy.
The organization should be committed, involved
and accessible to succeed in implementation of the
philosophy.

TQM and Reliability Engineering

Strategic Planning

It is a deliberate process
Used to develop a mission, vision, guiding
values, strategic objectives and specific
strategies for achieving the objectives.
Before going to strategic planning SWOT
analysis has to be done.

TQM and Reliability Engineering

SWOT What?

SWOT stands for

S
W
O
T

Strength
Weakness
Opportunities
Threats

SWOT is an analysis of Strength, Weakness,

Opportunities and Threats of an organization.

TQM and Reliability Engineering

SWOT Why?

What are organizations strengths?

What are organizations weakness?
What opportunities exist to improve an
organization?
What factors (External and Internal) constitute a
threat to the organization.

TQM and Reliability Engineering

What Next?

After SWOT, strategic plan search for answers

to the following

Who we are?
What are we known for?
What do we do better than 90% of our
competitors?
What do our competitors beat us on?
What do we wish to be known for?
Where are we headed as an organization?
Where do we wish to be headed?
TQM and Reliability Engineering

Components of strategy

Mission, Vision and guiding values

Product / Market scope
Competitive edge (Differentiation)
Supporting policies
Objectives
Organizational culture

TQM and Reliability Engineering

Vision Statement

The vision statement is a short declaration of

what an organization aspires to be tomorrow.
Successful visions are timeless inspirational
and become deeply shared within
organization.
We will be preferred provider of safe, reliable and cost
effective products and services that satisfy the electric
related needs of all customer segments
- Florida power & light company

TQM and Reliability Engineering

Mission Statement
Mission statement answers the following :
Who we are?
Who are the customers?
What we do?
How we do it?
Should be one paragraph or less in length and is easy
to understand and describe the function of
organization.
Clear statement of purpose of employees, customers
and suppliers.

TQM and Reliability Engineering

Mission Statement Example

To meet customers transportation and distribution needs
by being the best at moving their goods on time safely
and damage free

TQM and Reliability Engineering

Quality Policy Statement

It is a guide for everyone in the organization as to

how they should provide products and service to
the customers.
It should be written by the CEO with feedback
from the work force and be approved by the
quality council.

TQM and Reliability Engineering

Common Characteristics

Quality is first among equals.

Meet the needs of the internal and external
customers.
Equal and exceed the competition
Continually improve the quality
Include business and production practices
Utilize the entire work force.

Quality policy is a requirement of ISO 9000:2000.

TQM and Reliability Engineering

Goals & Objectives

Goals
Long term Planning
Objective
Short term planning

TQM and Reliability Engineering

Goal Setting

Needed to provide the focus such as improve

customers satisfaction and emp. Satisfaction.
Can change the leadership style from reward and
punishment to identify and improving the system.
It must be on statistical evidence.
Goals must be definitive, specific and
understandable using concrete results rather than
behaviors and attitudes.
Must have resources and methods
Must be challenging and acheivable.
TQM and Reliability Engineering

Strategic planning 7 steps

Discover the future need of customer

Customer positioning
Predict the future
Gap Analysis
Closing the gap
Alignment
Implementation

TQM and Reliability Engineering

7 steps

Customer Needs
Discover the needs of future customer
Who will they be?
Will your customer base change?
What will they want?
How will our organization meet and exceed
expectations?

TQM and Reliability Engineering

7 Steps

Customer Positioning

Planners determine where the organization wants

to be in relation to the customer.
They want to retain, reduce or expand the
customer base.
Products or services with poor quality performance
should be targeted for break through or
elimination.

TQM and Reliability Engineering

7 Steps

Predict the future

Planner should look whether their product or

service will affect their product or services
Tools such as demograpy, economic forecast and
technical assessment that help to predict the
future.
Rate of change should be continually increasing.

TQM and Reliability Engineering

7 Steps

Gap Analysis

Analyze the gap between current state and future

state of organization.
Analysis of core values is the technique for
analyzing the gap.

TQM and Reliability Engineering

7 Steps

Closing the Gap

Establishment of goals and increasing

responsibilities to close the gap.

TQM and Reliability Engineering

7 Steps

Alignment

Once the plan is developed it must be aligned with

mission, vision and core values and concepts of
the organizaiton.
It is mandatory.

TQM and Reliability Engineering

7 Steps

Implementation

Resource to collect data, designing changes and

overcoming the obstacles.
Monitor the progress being made.
The planning group should meet at least once a
year to assess progress and take any corrective
action.
TQM and Reliability Engineering

TQM Implementation

Implementation begins with senior management

and CEOs commitment.
Leadership is essential during every phase of
implementation phase.
Senior management needs to be educated in the
TQM concepts.
Managers should visit successful TQM
organizations, read selected articles and books.
Also attend seminars and conferences.

TQM and Reliability Engineering

Continues

Develop implementation plan.

Timing for implementation process has to be
studied.
Form the quality council.
Involvement of middle managers and first line
supervision.
Senior management should pave way for all level
managers and an opportunity.
Focusing on retreat.
TQM and Reliability Engineering

Continues

Discussion should be made with union.

Communication to entire organization.
Training in quality awareness and problem solving.
Customer, employee and supplier surveys must be
conducted to attitudes of stakeholders.

TQM and Reliability Engineering

Crossby

Management commitment
The quality improvement team
Quality measurement
The cost of quality
Quality awareness
Corrective action
Zero defects plannings
Supervision training
Zero defects day
TQM and Reliability Engineering

Continues

Goal setting
Error cause removal
Recognition
Quality council
Do it over again

TQM and Reliability Engineering

PDSA Cycle

Word by Word Analysis

P
D
S
A

Plan
Do
Study
Act

ACT

PLAN

STUDY

DO

TQM and Reliability Engineering

Continuous Process Improvement Cycle

1. Identify the
opportunity

7. Plan for the

future

6. Standardize the
solution

ACT

PLAN

STUDY

DO

5. Study the results

4. Implement

TQM and Reliability Engineering

2. Analyze the
Process

3. Develop the
optimal solutions