Total Quality Management (MIDTERM)

4. They emphasize prevention.

"An ounce of prevention is worth a pound of cure" is certainly true. It is also true that perfection can be the enemy of creativity. We can't always wait until we have created the perfect process or product. There must be a balance between preventing problems and developing better, but not perfect, processes.

Quality

. It is defined as the degree to which a set of inherent characteristics fulfills requirements.

A committed and involved management to provide long-term top-to-bottom organizational support.

A TQM basic concepts that is a Long-term top-to-bottom organizational success requires a dedicated and involved management team support.

An unwavering focus on the customer, both internally and externally.

A TQM basic concepts that is a constant attention to the needs of the client, both within and externally

Effective involvement and utilization of the entire work force.

A TQM basic concepts that is effective participation and use of the entire workforce.

Narayana Murthy, Chairman and Chief Mentor of Infosys

A great leader is one who is not only good in creating vision, creating the big picture, but also ensuring that he goes into the nitty-gritty, into the details of making sure that his vision is actually translated into reality through excellence of execution. In other words, great leaders have great vision, great imagination, great ideas but they also implement these ideas through hard work, commitment and flawless execution. In doing so, they motivate thousands of people."

Management must participate in the quality program.

A quality council must be established to develop a clear vision, set long-term goals, and direct the program.

Improved Quality, Employee Participation, Teamwork, Working Relationships, Customer Satisfaction, Employee Satisfaction, Productivity, Communication, Profitability, and Market Share.

According to a survey of manufacturing firms in Georgia, the benefits of TQM

Management

Act, art, or manner of handling, controlling, directing, etc.

TQM is an organization-wide challenge that is everyone's responsibility.

All personnel must be trained in TQM, statistical process control (SPC), and other appropriate quality improvement skills so they can effectively participate on project teams.

The key to an effective TQM program is its focus on the customer.

An excellent place to start is by satisfying internal customers. We must listen to the "voice of the customer" and emphasize design quality and defect prevention.

Awareness/ aware

An organization will not begin the transformation to TQM until it is ______that the quality of the product or service must be improved.

Hendricks and Singhai

Based in them TQM is a good investment as shown by a ten-year study

Organization's culture

Changing an _______________ is difficult and will require as much as five years.

Reliability

Consistency of performance over time, average time for the unit to fail

Quality

Degree of excellence a product or service provides.

Product Quality Service Quality

Dimensions of Quality

Genuine management involvement, employee involvement, first-line supervision leadership, and company-wide quality control

Feigenbaum's quality principles (GEFC)

Shewhart Ronald Fisher Deming Juran Feigenbaum Ishikawa Crosby Taguchi

Gurus of Total Quality Management (SRDJFICT)

Response

Human-to-human interface, such as the courtesy of the dealer

Total Quality Management

It is a proven technique to guarantee survival in world-class competition. Only by changing the actions of management will the culture and actions of an entire organization be transformed.

Total Quality Management

It is a tried-and-true method for ensuring survival in competition of the highest caliber. simply by altering the Management decisions will change an organization's culture and behavior as a whole.

Quality of customer service

It is the ability to satisfy customer depends on the quality of customer service.

8. They continually try to improve communications.

Leaders continually disseminate information about the TQM effort. They make it evident that TQM is not just a slogan. Communication is two way—ideas will be generated by people when leaders encourage them and act upon them.

2. They empower, rather than control, subordinates.

Leaders have trust and confidence in the performance of their subordinates. They provide the resources, training, and work environment to help subordinates do their jobs. However, the decision to accept responsibility lies with the individual.

6. They train and coach, rather than direct and supervise

Leaders know that the development of the human resource is a necessity. As coaches, they help their subordinates learn to do a better job.

3. They emphasize improvement rather than maintenance.

Leaders use the phrase "If it isn't perfect, improve it" rather than "If it ain't broke, don't fix it." There is always room for improvement, even if the improvement is small. Major breakthroughs sometimes happen, but it's the little ones that keep the continuous process improvement on a positive track.

9. They continually demonstrate their commitment to quality.

Leaders walk their talk—their actions, rather than their words, communicate their level of commitment. They let the quality statements be their decision-making guide.

Total

Made up of the whole. -it implies that all members of the organization make consisitent efforts to achieve the objective of customer delight through systematic efforts for improvement of the organization.

1. People change when they want to and to meet their own needs. 2. Never expect anyone to engage in behavior that serves the organization's values unless adequate reason (why) has been given. 3. For change to be accepted, people must be moved from a state of fear to trust. 3. Improper Planning 4. Lack of Continuous Training and Education 5. Incompatible Organizational Structure and Isolated Individuals and Departments 6. Ineffective Measurement Techniques and Lack of Access to Data and Results 7. Incompatible Organizational Structure and Isolated Individuals and Departments 8. Ineffective Measurement Techniques and Lack of Access to Data and Results 9. Failure to Continually Improve

Management must understand and utilize the basic concepts of change. They are:

Conformance

Meeting specifications or industry standards, workmanship

Performance Features Conformance Reliability Durability Service Response Aesthetics Reputation

Nine different dimensions of quality

Ineffective Measurement Techniques and Lack of Access to Data and Results

Part of basic concepts of change, that is a Key characteristics of the organization should be measured so that effective decisions can be made. In order to improve a process you need to measure the effect of improvement ideas.

Improper Planning

Part of basic concepts of change. All constituents of the organization must be involved in the development of the implementation plan and any modifications that occur as the plan evolves. Of particular importance is the two-way communication of ideas by all personnel during the development of the plan and its implementation. Customer satisfaction should be the goal rather than financial or sales goals.

Incompatible Organizational Structure and Isolated Individuals and Departments

Part of basic concepts of change. Differences between departments and individuals can create implementation problems.

Incompatible Organizational Structure and Isolated Individuals and Departments

Part of basic concepts of change. Differences between departments and individuals can create implementation problems. The use of multifunctional teams will help to break down long-standing barriers.

Failure to Continually Improve

Part of basic concepts of change. It is tempting to sit back and rest on your laurels. However, a lack of continuous improvement of the processes, product, and/or service will even leave the leader of the pack in the dust.

Ineffective Measurement Techniques and Lack of Access to Data and Results

Part of basic concepts of change. Key characteristics of the organization should be measured so that effective decisions can be made.

Lack of Continuous Training and Education

Part of basic concepts of change. Training and education is an ongoing process for everyone in the organization. Needs must be determined and a plan developed to achieve those needs.

Reputation

Past performance and other intangibles, such as being ranked first

Performance

Primary product characteristics, such as the brightness of the picture

1. Functionality 2. Reliability 3. Usability 4. Maintainability 5. Efficiency 6. Portability

Product Quality

Q = P / E where Q = quality P = performance E = expectations

Quality can be quantified as follows:

There must be a continual striving to improve all business and production processes.

Quality improvement projects, such as on-time delivery, order entry efficiency, billing error rate, customer satisfaction, cycle time, scrap reduction, and supplier management, are good places to begin.

Service

Resolution of problems and complaints, ease of repair

Features

Secondary characteristics, added features, such as remote control

Aesthetics

Sensory characteristics, such as exterior finish

1. A committed and involved management to provide long-term top-to-bottom organizational support. 2. An unwavering focus on the customer, both internally and externally. 3. Effective involvement and utilization of the entire work force. 4. Continuous improvement of the business and production process. 5. Treating suppliers as partners. 6. Establish performance measures for the processes.

TQM requires six basic concepts:

TQM

The purpose of __________ is to provide a quality product and/or service to customers, which will, in turn, increase productivity and lower cost.

Visionary Leadership Customer-Driven Excellence Organizational and Personal Learning Valuing Employees and Partners Agility Focus on the Future Managing for Innovation Management by Fact Social Responsibility Focus on Results and Creating Value Systems Perspective

These are built upon the following set of interrelated core values and concepts:

Performance measures such as uptime, percent nonconforming, absenteeism, and customer satisfaction should be determined for each functional area.

These measures should be posted for everyone to see. Quantitative data are necessary to measure the continuous quality improvement activity.

Durability

Useful life, includes repair

7. They learn from problems.

When a problem exists, it is treated as an opportunity rather than Msomething to be minimized or covered up. "What caused it?" and "How can we prevent it in the future?" are the questions quality leaders ask.

5. They encourage collaboration rather than competition.

When functional areas, departments, or work groups are in competition, they may find subtle ways of working against each other or withholding information. Instead, there must be collaboration among and within units.

Quality

When the expression "quality" is used, we usually think in terms of an excellent product or service that fulfills or exceeds our expectations. These expectations are based on the intended use and the selling price.

Leaders

_________ shape the organization's values, promote the organization's values, protect the organization's values and exemplify the organization's values.

Usability

a product should be easily usable. -The customer should be able to use the product easily without the help of experts.

values and concepts

are embedded beliefs and behaviors found in high-performing organizations. They are the foundation for integrating key business requirements within a result-oriented framework. A framework, that creates a basis for action and feedback.

Phillip B. Crosby

authored his first book, Quality is Free, in 1979, which was translated into 15 languages. It sold 1.5 million copies and changed the way management looked at quality. He argued that "doing it right the first time" is less expensive than the costs of detecting andcorrecting non conformities.

1. They give priority attention to external and internal customers and their needs.

behaviors or characteristics that successful quality leaders demonstrate. Leaders place themselves in the customers' shoes and service their needs from that perspective. They continually evaluate the customers' changing requirements.

Awareness

comes about when an organization loses market share or realizes that quality and productivity go hand-in-hand. It also occurs if TQM is mandated by the customer or if management realizes that TQM is a better way to run a business and compete in domestic and world markets.

Daimler Chrysler's CEO Bob Eaton

defines a leader as ". . . someone who can take a group of people to a place they don't think they can go."

James MacGregor Burns

describes a leader as one who instills purposes, not one who controls by brute force. A leader strengthens and inspires the followers to accomplish shared goals.

Genichi Taguchi, PhD

developed his loss function concept that combines cost, target, and variation into one metric. Because the loss function is reactive, he developed the signal to noise ratio as a proactive equivalent.

Quality

does not mean an expensive product; on contrary, it is fitness for use of the customer.

TQM

does not occur overnight; there are no quick remedies. It takes a long time to build the appropriate emphasis and techniques into the culture. Overemphasis on short-term results and profits must be set aside so long-term planning and constancy of purpose will prevail.

Quality is conformance to requirements, Prevention of non conformance is the objective not appraisal, The performance standard is zero defects not "that's close enough," The measurement of quality is the cost of Non conformance

four absolutes of quality management.

Service Quality

has additional features availing a seervice, the customer interacts more with the service provider. This depends to large extent on understanding the correct requirements of the customer through such interactions.

QUALITY

has always been a key strategic factor for business success but it is now more than ever required to compete successfully in the global markets of the twenty-first century.

Quality

has to be perceived by the customer. Perception of the supplier is also important but the customer experience of quality of a product or service is more important.

Armand V. Feigenbaum, PhD

he argues that total quality control2 is necessary to achieve productivity, market penetration, and competitive advantage. Quality begins by identifying the customer's requirements and ends with a product or service in the hands of a satisfied customer.

Ronald Fisher

he is not known as a quality guru. However, he created a solid foundation of statistical methods, such as design of experiments (DOE) and analysis of variance (ANOVA) in the 1930s. DOE is one of the most powerful tools used by many organizations in problem solving and process improvements.

Juran

he is one of the gurus, and he defined quality as fitness for use.

Robert Galvin of Motorola

he said that only the CEO can ensure, even in times of great pressure, that quality and customer satisfaction are preserved.

James MacGregor Burns

he says "Leaders and followers raise one another to higher levels of motivation and morality . . . leadership becomes moral in that it raises the level of human conduct and ethical aspiration of both the leader and the led, and thus has a transforming effect on both."

Total Quality Management

is an enhancement to the traditional way of doing business.

Total Quality Management

is an improvement over the conventional method of conducting business.

Service delivery

is another feature of service quality: Thus, the additional features of service quality are:

Total Quality Management

is customer oriented management philosophy and strategy. It is centered on quality so as to result in customer delight.

TQM

is defined as both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization.

Implementation of TQM

is described in the next chapter, on leadership. This section gives information concerning the obstacles associated with implementation.

TQM

is for the most part common sense.

Quality

is its suitability for use by the customer.

Leadership

is we, not me; mission, not my show; vision, not division; and community, not domicile."

Quality of service design

it is important that the service is designed as per the requirements of the specific customer.

Reliability

it is measured by means (average) time between failures. it is also an indicator of durability of products

Degree

means that quality can be used with adjectives such as poor, good, and excellent. Inherent is defined as existing in something, especially as a permanent characteristic.

Automation and other productivity enhancements

might not help a corporation if it is unable to market its product or service because the quality is poor.

TQM six basic concepts

outline an excellent way to run an organization.

Functionality

refers to the core feautures and characteristics of a product. The functions are those that satisfy stated or implied needs.

Maintainability

refers to the ease with which the product can be maintained in the original condition.

Walter A. Shewhart, PhD

spent his professional career at Western Electric and Bell Telephone Laboratories, both divisions of AT&T. He developed control chart theory with control limits, assignable and chance causes of variation, and rational subgroups. In 1931, he authored Economic Control of Quality of Manufactured Product, which is regarded as a complete and thorough work of the basic principles of quality control. He also developed the PDSA cycle for learning and improvement.

Kaoru Ishikawa, PhD

studied under Deming, Juran, and Feigenbaum. He borrowed the total quality control concept and adapted it for the Japanese. In addition, he authored SPC texts in Japanese and in English. Ishikawa is best known for the development of the cause and effect diagram which is sometimes called an Ishikawa diagram.

Ishikawa diagram

the cause and effect diagram sometimes called as an

On the average 40% of the sales dollar is purchased product or service

the supplier quality must be outstanding. A partnering relationship rather than an adversarial one must be developed.

Efficiency

this is applicable to most product. -it is the ratio of output to inputa. Example: The brightness of a la

Portability

this is important in the context of software. -it is defined as a set of attributes that bear on the ability of software to be transferred from one environment to another.

Quality of delivery

timeless, aesthetics, regulatory requirements, requirement of society and conformance to standards.

Edwards Deming, PhD

was a protégé of Shewhart. In 1950, he taught statistical process control and the importance of quality to the leading CEOs of Japanese industry. He is credited with providing the foundation for the Japanese quality miracle and resurgence as an economic power. Deming is the best-known quality expert in the world. His 14 points provide a theory for management to improve quality, productivity, and competitive position.

Joseph M. Juran, PhD

worked at Western Electric from 1924 to 1941. There he was exposed to the concepts of Shewhart. Juran traveled to Japan in 1954 to teach quality management. He emphasized the necessity for management at all levels to be committed to the quality effort with hands-on involvement. He recommended project improvements based on return on investment to achieve breakthrough results.