Total Quality Management (TQM)

Sessions Plan

Session 1 : Definitions of TQM and benefits to the organization. Definition and Perception of Quality. Impact of Globalization Session 2 : Involvement and importance of human elements including leaders / managers. Session 3 : Customer requirements and segmentation effect on R&D, Production, Quality Assurance, Material Purchases, Sales & Marketing, Supply Chain and Administration. Session 4 : Quality Assurance associated costs and procedure for their reduction Session 5 : Quality control tools and techniques Session 6 : TQM umbrella and the resultant concepts. Prof. Anand Sharma 1

Total Quality Management (TQM)i

Sessions Plan

Session 7 : Techniques for quality standards Benchmarking, QMS & EMS, Six Sigma. Session 8 : Methods to implement TQM BPR, Kaizen, Value Engineering and Six Sigma. Session 9 : Improvements in Production/Purchase Poka-Yoke, MRP and Kanban systems. Session 10 : TQM plan and implementation procedure. Session 11 : Project Presentation by students BM & BPR Session 12 : Project Presentation by students Kaizen / Six Sigma

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Total Quality Management (TQM)

A management philosophy that seeks to integrate all organizational functions (marketing, finance, design, engineering, production and customer service etc.) to focus on meeting customer needs and organizational objectives.

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Total Made up of the whole Quality Degree of excellence a product or service provides Management Act, art or manner of handling, controlling and directing etc. TQM, therefore, is an art of managing the whole to achieve excellence.

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TOTAL involves the following :  Customer  Human Resources including Leadership  Research and Development  Production  Purchase and Vendors  Marketing and Sales  Supply Chain  Administration
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A step forward

Thrust and Quest to Marvel

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Objectives and Benefits of TQM  Higher customer satisfaction

 Higher operating efficiency  Better resource utilization  Higher productivity  Improved profits  Uniform quality of products / services  Reduced costs  Minimum scrap, rework and other losses  Better human efficiency and man-machine compatibility
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Impact of Globalization  Wide variety

 Intense competition  Economies of scale  Globalized markets  Tough delivery and services requirements  High flexibility  Price/Legal/commercial implications  Technology availability and up-gradation  Environmental Issues
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Definition of Quality Juran Fitness for use Deming Do the Right thing First Time and Every time Dimensions of Quality  Performance
 Range and Types of Features  Reliability and Durability  Maintainability and Serviceability  Sensory Characteristics such as Healthy food should be tasty  Ethical Profile and Image
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Quality is Achieved by

 Proper Attitude towards Excellence  Standards / Specifications  Methods  Procedures  Monitoring and Award systems

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Human Resources and Leadership

Human Assets Management
 Selection & Recruitment as per appropriate QR  Training Cultural and Job specific  Motivation  Job Description, Enlargement, Ownership and Career Path

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Leadership  Attention to needs  Empowerment  Emphasize prevention  Training and Coaching  Continuous Improvement including Communication and Team Work  Vendor Relationships  Organization Systems

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Characteristics of a Good Leader

 Leading from the Front  Foresighted  Focused  Knowledgeable  Pro-Active  Experienced  Intelligent and Innovative  Friendly  Positive Thinker

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Customers Requirement

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Q : Why do Golf balls have dimples ? A : It all happened by accident! In the early 1850s, British golfers using smooth balls discovered that they flew further after they had been nicked or marked during play. Soon players were deliberately carving patterns into balls, ranging from concentric circles to maps of the world. William Taylor patented the dimple design in 1905. This was the most aerodynamic pattern of all, able to increase a balls distance from 100 meters to more than 250 meters. By 1930, it was the industry standard. Smooth balls are slower because air flowing over them creates a wake behind, dragging them backwards. Dimples break up this air, sending it into various directions, reducing the wake and any subsequent drag.
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Customers Satisfaction
1. 2. 3. 4. 5. 6. Service Standards as per customer requirements Product / Service as per detailed market research Attention to training, hiring, attitude etc. Customer Service System Rapport and Relationships Infrastructural Support for After Sales Service 1. 2. 3. 4. 5. 6. Reliability Responsiveness Competence Access Courtesy and Communication Credibility

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Customers Satisfaction Level  Requirements and Segmentation  Customer Perception  Feedback  Complaints  Service Quality

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Quality Cost Analysis

1. External Failure Cost 1. Complaints Investigation 2. Return / Replacement 3. Warranty Expenses 4. Liability Legal Cases / Compensations for injury or business losses etc. 5. Goodwill
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2. Internal Failure Cost 1. Disposition Reject / Rework 2. Scrap Losses Labor / Material 3. Retest for recurring quality problems 4. Downtime 5. Inventory Safety Stocks 6. Excess Capacity Costs

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3. Appraisal Cost 1. Incoming Material Inspection 2. In-process Inspection and Testing 3. Maintenance of Testing Equipment 4. Evaluation of Stock Maintenance Cost

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4. Prevention Cost 1. Quality Planning 2. Product Design and Review 3. Process Design and Review 4. Job Design and Training 5. Process Control 6. Data Collection, Analysis and Reporting 7. Quality Improvement Programmes

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Statistical Quality Control Techniques : Acceptance Sampling Process Control Acceptance Sampling is a SQC technique used in deciding to accept or reject a shipment of input or output. Acceptance Sampling involves testing a random sample of existing goods and deciding whether to accept the lot or not on the basis of random sample. SPC involves testing a random sample of output from a process to determine whether the process is producing items within the prescribed range.
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Sampling Plan is a plan for acceptance sampling specifying the number of units to sample and the number of sample units that must conform to specifications. Types of Sampling Plans  Single Sampling based on single sample (n & c based)  Double Sampling two steps (decision on both) first small sample if inconclusive, then another sample  Multiple Sampling many samples of small sizes and decision on cumulative evidences
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Process Control Operating Characteristic Curve (OC Curve) AQL lots are defined as high quality if they contain no more than a specified levels of defectives is AQL LTPD lots rejected after this level (being treated as Highly Defective) Producers Risk Problem associated with rejecting a good quality lot, denoted by Consumers Risk - Problem associate with accepting a low quality lot, denoted by F.
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Shewarts Control Charts 1. Charts based on variables a) Mean Chart UCL (X) = X + 1.96 W / n LCL (X) = X 1.96 W / n b) Range Chart UCL (R) = D4 R LCL (R) = D3 R or UCL (X) = X + A2 R LCL (X) = X A2 R
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2. Charts based on attributes a) p chart UCL / LCL = p 3 p (1-p) / n b) c chart UCL / LCL = c 3 c

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Quality Improvement Tools

Vision Statement As per Business Dynamics BM Bench Marking BPR Business Process Engineering Kaizen Continuous Improvement Six Sigma Statistical Measurement VE Value Engineering and Analysis Poka Yoke Failsafing of Design and Implementation

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TQM Plan 1. Vision and Mission Statement 2. Market Research Customer Segmentation 3. Conversion of requirements into Product/Service
 Pareto analysis  Quality Function Deployment (QFD)  Identification of Quality Project  Design for Manufacturability, Reliability, Fail Safing, Safety, Aesthetics and Six Sigma.

(Using CE, VE/VA, FMEA, QC and BM)

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4. BPR (if necessary) or method design (including ISO) 5. Organization and Quality teams or Re-organization through quality manual. 6. Training of Manpower (5S, HAM, TPM) 7. Vendor Relationship (CVM) 8. Quality measurement/control 9. Marketing and feedback 10. PDCA cycle for CI/SS

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Elements of TQM

Continuous Improvement

Customer Focus

TQM Universal Responsibility

Prevention

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Plan
Objectives and Issues Alternatives and Plan Brain Storming/Team Work

Act

Demings PDCA Cycle

Do

Measure Parameter and Method Control Charts/Other Tools

Check
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Kaizen/CI
Umbrella
 Customer Satisfaction  Quality Circles  Suggestion System  Automation  Workplace Discipline (5S)  KANBAN  Just-In-Time (JIT)  Zero Defects  Labor Management  Cost Reduction  Safety

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Kaizen Measures
Policy Deployment Kaizen Policy throughout the company Control Points and Check Points Policy Audits Quality Deployment Design and Production Total Productive Maintenance (TPM) Training

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5 Steps to Kaizen Bliss

Steps
1. SEIRI Straighten Up 2. SEITON Put Things in Order 3. SEISO Clean Up 4. SEIKETSU Hygiene 5. SHITSUKE Discipline

Description
Segregating the necessary from the unnecessary, discarding unnecessary such as WIP, Tools, Defective Products or other Assets Things to be kept at proper place, where these are ready for use, in order to reduce idleness. Cleanliness maintained at the work place, to produce congenial work conditions and to ensure effective space management Maintenance of personal hygiene

Following Work place procedures for process compliance and self discipline for minimization of defects.

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TQM Concepts
 Responsibility with the Top Management  Customer focused Quality and Standards  Process designed for desired Quality Conformance  Prevention of Defects and not Detection  Continuous Improvement  Benchmarking  Value Improvement  Training and Synergy of Teams  Root Cause corrective action  Supplier Relationship

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Quantitative and Qualitative Standards

Quantitative Parameters 1. 2. 3. 4. 5. 6. Defect Rates Repair Time Waiting Time Turnover Rates Service Time Queue Lengths Qualitative Parameters 1. 2. 3. 4. 5. Customer Requirement Responsiveness Empathy Respect and Contact Conformance to Organizational Goals

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International Standards
Standards are documented agreements containing technical specifications or other precise criteria to be used consistently as rules, guidelines or definitions of characteristics to ensure that materials, products, processes and services are fit for their purpose. International standards contribute to making life simpler and to increasing the reliability and effectiveness of the goods and services we use. Why Required ? To facilitate trade organization activities in a harmonious way through procedures, work instructions and other documents.
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International Standards The international standards are formulated and issued by international organization for standardization (ISO), located in Geneva. ISO was established in 1947 by 60 founder countries as members with India as one of the founders. Standards are valid for 5 years. These standards are generic in nature and are non legal and non binding. There are ISO 9000 series and ISO 14000 series, known as Quality management Services (QMS) and Environmental Management Services (EMS) respectively.
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ISO 9001:2000 Series

ISO 9001:2000 specifies requirements for a quality management system for any organisation that needs to demonstrate its ability to consistently provide products meeting the customers requirements and regulatory requirements, so as to enhance customer satisfaction. The standard is used for certification / registration and contractual purposes by organisations seeking recognition of their quality management system. The standard is used to achieve a first level of performance. The practices described in ISO 9004:2000, may then be implemented to make the QMS increasingly effective, to achieve your organisational goals. Both standards are harmonised in a structure and terminology for smooth transition from one to another and are based on a process approach Prof. Anand Sharma 39

Major changes in ISO 9001:2000 (Customer Orientation)

 Process orientation for quality management systems is recommended  Continuous improvement of products, processes and the quality management system shall be the main objective of the top management.  The management shall control regularly main process outputs for quality Objectives shall refer to the functional levels and be controlled regularly by the management

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Quality Management Principles

 Principle 1 Customer focus  Principle 2 Leadership  Principle 3 Involvement of people  Principle 4 Process approach  Principle 5 System approach to management  Principle 6 Continual improvement  Principle 7 Factual approach to decision making  Principle 8 Mutually beneficial supplier relationship

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ISO 9000 and Small Businesses ISO has published a handbook titled ISO 9004 small businesses (ISBN 92-67-10238-9), which dispels the myth that ISO 9000 standards are for big companies only. Aimed at managers it explains the quality system standards in plain language, with the intention of putting improvements in performance, quality, customer satisfaction and market access within th easy reach of any manufacturing or service organisation, regardless of size, through implementation of an ISO 9000 quality system. For specific area applications, several industries have adopted their own requirements based on the ISO standards, such as QS 9000 (Auto Industry), AS 9000 (Aerospace Industry), TL 9000 (Telephone Industry).
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ISO 14000 Series These are also generic standards for environmental control systems, hence these are called EMS. ISO 14000 is a continuation of the ISO 9000 quality standards and hence it is expected that ISO 14001 will eventually become a requirement for attaining ISO 9001 recertification, thus many companies are setting goals to establish EMS that conform to ISO 14001 guidelines in order to remain competitive in the global market place. The certification process for both these standards (QMS & EMS) is the same.

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Requirements of ISO 14001 certification The key to a successful EMS is having documented procedures that are implemented and maintained in such a way that successful achievement of environmental goals commensurate with the nature and scale of activities is promoted. EMS must include appropriate monitoring and review to ensure effective functioning of the EMS and to identify and implement corrective measures in a timely manner. Based on the environmental aspects and impacts, goals and objectives are established consistent with the environmental policy of the area / country and then programs formulated for their implementations. Internal audits must be conducted regularly so as to identify and address any non conformances. Review ensures any changes required with change in the environment.
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Benefits of implementing EMS 1. Identifying areas for reduction in energy and other resource consumption. 2. Reducing environmental liability and risk, helping to maintain consistent compliance with legislative and regulatory requirements. 3. Benefiting from regulatory incentives that reward companies showing environmental leadership through certified compliance with international EMS standards 4. Preventing pollution and reducing waste, responding to pressure from customers and shareholders, improving community goodwill, profiting in the market for green products and responding to insurance company pressures for any short falls in implementation
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ISO Certification Procedure

 Awareness and understanding of the requirements of ISO specifications.  Consideration of the implication of ISO 9000 for the company by the top management and commitment to provide adequate resources for implementation.  Diagnosis of the gap between present quality system and ISO requirement.  Selection of the team of implementors including the management representative for co-ordination.  Writing standard operating procedures (Quality Manual) for implementation.  Training key personnel and internal quality auditors.
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 Taking corrective actions as reported by the internal quality audit team as per pre-determined auditing frequency.  Allow the system to function for 3-4 months and continuously monitor the working of the systems.  Select certifying body and apply for ISO certification.  Arrange pre assessment audit by the certifying body and take necessary action.  Compliance of third party audit by the certification body.  Certification followed by surveillance audit.

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