TQM in Practice

Quality & Productivity Society of Pakistan

Get to Know You

Name
Education
Organization
Experience
Be on time Focus on the issues

Keep confidences Participate positively

Adult Rules
 You can sleep
 Phone on silent mode

 Drink / Toilet
 Learning
Objectives
What is Quality?

Purpose of TQM

What is TQM

TQM Evolution

Major Contributors to TQM

TQM Principles

TQM Applications / Tools

Current Global Scenario

How do you feel if you receive
a defective product?

How do people feel if they receive

a defective product?

Although it is one of the many distributed

products, it is the only one for the person who
received .
What is Quality?
Quality

Fitness for Use

(Juran 1988)
Quality

 Quality is conformance to requirements

or specifications (Crosby 1979)

 Quality is fitness for use (Juran 1988)

 Qualityshould be aimed at the needs of

the consumer, present and future
(Deming, 1986)
DEMING SAID…

“Reduced variation
is Quality.”
Integrated Quality
Customer

Customer Customer
Selling Price
Requirements Schedule

Quality
Quality Cost
Cost Delivery
Delivery

Process
Production Cost Process Speed
Capability

Supplier
Customers
“Anyone who thinks customers
are not important should try
doing BUSINESS without
them for a week”

Source : Unknown
Types of Customers
 External Customers
 Final Customers/End-Users
 Intermediate
 Internal Customers
Business Purposes

● By materializing permanent, continuous

customer satisfaction, ensure long-term,
healthy profit for the business and
promote the growth
● The “purposes” include the satisfaction
of employees, convenience to the
societies, and improved profits to
business associates, shareholders and all
other parties related to the business.
Competitive Advantage

 The ability of a firm to win consistently over the

long term in a competitive situation.
 Competitive advantage is created through the
achievement of five qualities

 Superiority  Non-substitutability
 Inimitability  Appropriability
 Durability
Why TQM is Required
1 Production of perfect, defect-free products
2 Development of new products/new technologies
3 Reduction of production costs
4 Labor-saving via introduction of advanced production technologies

5 Consumption of less material and energy in production

6 Elevation of customer satisfaction (CS)
7 Prevention of product-liability (Warranties)
8 Improvement of financial structure
9 Environmental protection, pollution prevention
10 Tributes to mankind, elevation of employee satisfaction (ES)

Competitive Advantage
Total Quality
Management
TQM
Total Made up of the whole

Quality Degree of excellence a

product or service
provides

Art of Planning,
Management Organizing,
Controlling etc.

Therefore, TQM is the art of managing

the whole to achieve excellence.
excellence
Meaning of TQM
All
All persons
persons
System
System Of
Of all
all divisions
divisions
At
At every
every stratum
stratum
MBO,
MBO, Kaizen,
Kaizen, QC
QC Circle,
Circle, 5S,
5S, TPM
TPM
Method
TQM

Method
TQM means

SQC,SPC,
SQC,SPC, FMEA,
FMEA, MSA,
MSA, OEE
OEE
Q(Quality):
Q(Quality):Quality
Quality improvement
improvement
means

C(Cost):
C(Cost):Cost
Cost reduction
reduction
D(Delivery):
D(Delivery):Delivery
Delivery execution
execution
Purpose
Purpose
S(Safety):
S(Safety):Safety
Safety maintenance
maintenance
M(Morale):
M(Morale):Morale
Morale boosting
boosting
E(
E(Environmental):
Environmental):Environmental
Environmental protection
protection
Definition of TQM

Systematic activities of operating the

whole units of a company effectively
and efficiently to supply goods and
services of quality satisfactory to
customers at right time and at right
price, thus contributing to attaining
Business Purposes.
History of TQM
Three Major Mfg Systems
from 1800 to 2000
Machine tools, specialized machine tools, Taylorism, SPC, CNC,
CAD/CAM

1800 1900 2000

Interchangeab Mass Toyota

le Parts at U.S. Productio Production
Armories n at Ford System
Key Elements for New Mfg Systems

Element/ Need of Society Enabling Technology Leader

System
Interchange-able Military Machine Roswell Lee/
Parts Tools, John
Division of Hall
Labor
Mass Trans- Moving Henry
Production portation Assembly Ford
Line,etc
Toyota Production Post War CNC, Integration of Taiichi
System Labor Ohno
TQM Evolution

Evolution

TQM
Quality
Assurance
Quality
Control

Foreman
Operator
1900 1918 1920 1940 1980
TQM Gurus
Major Contributors to the
development of TQM
 Dr Edwards Deming
 Dr Joseph Juran
 Philip Crosby
 Armand Feigenbaum
 Prof. Kaori Ishikawa
 Genichi Taguchi
 Masaaki Imai
Deming
 Statistician
by training
 Contributions include
 14points for Management
 The PDCA cycle (Shewhart cycle)
Juran
 Involvement of people within
Quality
 Placed emphasis on training process
supervision and operators
 Primary focus to reduce Cost of
Quality
 Juran suggests a 10 point plan
Crosby
 First
to popularize Quality for top
management
 Claimed that all Quality improvement pay for
themselves I.e. that Quality is Free
 Defines quality as conformance to requirements

 The only performance indicator is the cost of

quality
 The only performance standard is zero defects
Feigenbaum
 Originator of ‘Total Quality’ concept
 Definition of Quality costs (1956)
Appraisal costs
Prevention costs

Failure costs

 Developed 10 benchmarks for quality

success
Ishikawa

 Developed several tools and

techniques for application
 Ishikawa cause and effect diagram
 Defined the seven basic tools of quality
management
Taguchi
 Developed concept of the ‘Loss Function’
 Deviation from target value causes losses
 Internal - increased cost of manufacture, increased
cost of supply
 External - Customer dissatisfaction, warranty costs,
loss of reputation & ultimately loss of market
 Taguchi implies that Design has a vital Quality
function
Imai
 Known for the
development of ‘Kaizen
philosophy (1986)

Focus of improvement
activities to the factory
shop floor
TQM as All-Around Activities
Activities Conducive to Better
Corporate Management

TQM Various Activities

ISO 9001, 14001, 17025,
Strategic
ISO/TS 16949, SA 18001 etc.
Business
Policy KAIZEN, 5S, QCC
Management

day-to-day
Business Fusion MBO, COQ
Management TQM Elements
TPM, SPC
Management

Strategic QC JIT
Circle
Activities Six Sigma
Improvement in the Quality of
Corporate Management
and so on
Application by Management
 Manycompanies now interested in process
improvement
 Statistical Process Control (SPC)
 Six-sigma quality improvement programmes
 Benchmarking process performance
 Business Process Re-engineering
Break
TQM Application
 TQM FOR TOP
MANAGEMENT

Strategic Quality Management

(SQM)
Competitive Advantage
 Determine
strategic intent
Strategic
Management
Define
organizational mission Process
Analyze environment

Set objectives

Determine Assess
requirements resources

Develop action plans

Implement plans

Strategic
Planning Feedback
Monitor outcomes
KPIs Associated with the Cost Leadership Strategy
Objective Setting through SWOT

SWOT ANALYSIS

Internal Strengths Weaknesses

External Opportunities Threats

SWOT
1. In-House Wastage
2. In-House Rework
3. In-House Rejections
4. Warranty – OEMs & Dealers
5. Receiving Inspection Rejection
TQM AWARDS &
FRAME WORKS
Certifications

•ISO 9001:2000
•ISO 14001:2004
•ISO 22000:2005
•OHSAS 18001:2007
•SA 8000
•ISO 17025
•ISO/TS 16949
 Awards

•Malcolm Baldrige National Quality Award

•EFQM
•Deming Award
•Corporate Excellence Award – MAP
 Operational Excellence

•Lean Management
•Six Sigma
•Total Productive Maintenance
 TPM

Ms uo mon ot u A

nezi a K

a net ni a M de nnal P

na net ni a Mytil a u Q

5S
gni ni ar T
PILLARS OF TPM

MPT eci ff O

a, htl ae H, yt ef a S
 Elements of OEE

Overall Equipment Effectiveness =

Availability x Performance x Quality
Yield

Availability = Operating Time

Total Time Available

Performance = Ideal Cycle time x No. of Parts Produced

Operating Time

Quality = Good Parts

.
Total Parts Produced
 TQM FOR
WORK FORCE

KAIZENs – KAIZEN Blitz

QC Circles
Poke Yoke
 3
KAIZEN
System
 KAIZE
N
KAIZEN Form, Manual & Criteria
KAIZEN Awareness Sessions
Two Monthly Routine KAIZEN Ceremony
Cash Award & Certificate

Bi-Annual Best KAIZEN Ceremony

Cash Award
Shield

Aim is Thinking
Workers
 It’s not the tip
of the iceberg
It’s what you
that’s the problem….can’t see…
 Principle of iceberg

Iceberg over water surface

10% Visible to managers

Water surface

30% Visible to foremen

60% Visible to workers

Iceberg under water

Examples
Examples
 5
QC Circles
QC
Circles

QC Circle Registration Form

QC Story Awareness Sessions
Bi - Annual Routine QC Circles Ceremony
Cash Award
Certificate

Annual Best QC Circle Ceremony

Cash Award
Shield
Aim is Let’s Join
Hand
 TQM FOR
BUSINESS
PARTNERS
Vendor Development Activity
What we Discussed
What is Quality?

Purpose of TQM

What is TQM

TQM Evolution

Major Contributors to TQM

TQM Principles

TQM Applications / Tools

JURAN SAID…

“All quality
improveme
nt occurs
on a
project-by-
project