Total Quality Management in a Day

Total Quality Management

Presented at: A Manufacturing Organization in Noida

Date: 29/Nov/2012

Location: Noida, U.P., India

Duration: 8 Hours

© sevenSolutions

Index

1. Introduction to TQM (30 min)

2. Need and Applicability of TQM (60 min)

3. Key Elements of TQM (90 min)

4. TQM and Six Sigma (60 min)

Lunch Break (30 min)

5. TQM and Manufacturing (60 min)

6. TQM Practices Overview and a Case Study (90 min)

7. Change Management and TQM DNA (60 min)

© sevenSolutions Slide:2

Index

1. Introduction to TQM (30 min)









Introduction to TQM

What is Total Quality Management?

Quality is defined differently and even named and termed differently. Let’s see some definitions

ISO 8402: 1994 – All Activities of the overall management function that determine the quality policy,
objectives and responsibilities, and implement them by means such as quality control, quality
assurance and quality improvement within the quality system

Japan Industrial Standard: - As a system of techniques for economically producing goods and services that meets the
customer requirements.

Fiegenbaum: - Total Quality Control is an effective system for integrating the Quality Development Quality
Maintenance, and Quality Improvement efforts of the various groups in an organization so as to enable marketing
and engineering production and service at the most economical levels which allows for full customer satisfaction.

So, we can define Total Quality Management as follows:

TQM is an integrated approach to management for continuous improvement in quality of products manufactured or
services rendered. “Integrated” means it is a combination of more than one approach of quality combined in a
cohesive manner so that the output or the result is as desired.


TQM vs. Other Quality Tools

ISO for example has different standards for different purposes, for security management, for
product quality etc. Implementing ISO involves going through certain guided principles to
ensure that correct approach is taken while rendering services with lesser effort to focus on
the final product.

ITIL (Information Technology Infrastructure Library) is a set of standards for quality.
However, they are applicable to IT related products and services only.

COPC (Customer Operations Performance Center) CSP (Customer Service Provider) and
VMO (Vendor Management Organization) are quality standards specifically designed for the
processes that are outsourced to a call centre and for the call centre itself.

Six Sigma is used when either there is a defect in existing process or we want process to
perform at a higher performance level. So, the approach, is limited to the
departments/persons/processes involved in the process and at end. It has a definite
problem statement and a defined solution.


TQM vs. Other Quality Tools

TQM is an effective System of Quality Development, Quality Maintenance and Quality
improvement efforts involving all the departments and groups in an organization to allow
economy in production of goods or rendering of services along with complete customer
satisfaction.

TQM is an older approach that paved way for Six Sigma later on.

Six Sigma and TQM go hand in hand, however differ in their origin and approach. TQM was
originally conceived by some American Management Gurus, like W. Edwards Deming,
Joseph M. Juran and Armand Vallin Feigenbaum.

In fact, Armand was the inventor of TQM.


Ingredients of TQM

TQM is an effective System of Quality Development, Quality Maintenance and Quality
improvement efforts involving all the departments and groups in an organization to allow
economy in production of goods or rendering of services along with complete customer
satisfaction.

So, the basic ingredients of TQM are:

Quality of Products or Processes is responsibility of all involved in the creation and
consumption of the same.

Aimed at Economy in the cost level

Aimed at Satisfaction at the consumption level


Index

1. Introduction to TQM (30 min) 









Index










Need and Applicability of TQM

E.g., if a company is engaged in Networking, Storage, Power and Procurement Solutions Providing. It may
face several challenges, in installation of a solution, the AMC part of it, Crisis handling etc. Generally, the
responsibility does not get over where the user procures your product or installs of a solution and signs up for
maintenance.
To understand how TQM can help in all these activities, let’s look at a diagram now.

Engineers

Maintenance

Finance

Communications


Applicability of TQM

Issue: Payment Delays
Solution: Six Sigma
Issue: Defect in Installation
Solution: Six Sigma

Issue: Software Dev
Solution: ITIL

Engineers

Issue:
Maintenance System
Issue: Credit card Security Delivery
Solution: PCI-DSS Solution: ISO

Issue: Contact Center Efficiency
Solution: COPC
Finance

Communications


Applicability of TQM

Engineers
There is no need of Issue Resolution

Maintenance
Total Quality Management covers all aspects from Top Down
and
Helps optimize cost, revenue and ensures Customer
satisfaction

Finance

Communications/BPO


Need of TQM

The need of TQM lies in the fact that it is the only Quality tool that can be:

1. Implemented over a larger area
2. Always the end result aimed at Customer or End User satisfaction
3. All Process from Conceiving Idea to Earning Revenue is taken care of
4. Aims are Long Term Success
5. Caters to Manufacturing Process that is more dynamic
Engineers
6. Creates Accountability in each entity
Maintenance

Finance

Communications/BPO


Relationship between TQM, JIT & TPM

Total Quality Management has a close relationship between the below two Quality Parameters

JIT – Just in Time
JIT is a manufacturing Program to identify and eliminate all kinds of waste
through Just in Time production and involvement of workforce. Two major
wastes are WIP inventory and unnecessary delay in flow time.
Implementation methodology are Set up time reduction and Pull System JIT
production.

TPM – Total Productive Maintenance TQM TPM

TPM is a manufacturing Program designed to maximise equipment
effectiveness, throughout its entire life through the participation and
motivation of entire workforce.

TQM – Total Quality Management includes the below in light ot JIT and TPM
TQM basic techniques include cross-functional product design, process management,
supplier quality management, and customer involvement.
JIT basic techniques include set-up time reduction, pull systems production, JIT delivery
by suppliers, equipment layout, and daily schedule adherence.
TPM basic practices are autonomous and planned maintenance, technology emphasis
and proprietary equipment development.

Relationship between TQM, JIT & TPM

The relationships between implementation of TQM, JIT, and TPM and their impact on
manufacturing performance was derived by authors , McKonea, Schroeder and Cua.

They derived 16 Principles which are essential elements of TQM, JIT and TPM.

1. Cross-Functional Product Design (TQM Principle)
2. Process Management (TQM Principle)
3. Supplier Quality Management (TQM Principle)
4. Customer Involvement (TQM Principle)
5. Information and Feedback (Common to all three)
6. Committed Leadership (Common to all three)
7. Strategic Planning (Common to all three)
8. Cross-Functional Training (Common to all three)
9. Employee Involvement (Common to all three)
10. Set-up time reduction (JIT Principle)
11. Pull System Production (JIT Principle)
12. Delivery by Supplies (JIT Principle)
13. Equipment Layout (JIT Principle)
14. Daily Schedule Adherence (JIT Principle)
15. Autonomous & Planned Maintenance (TPM Principle)
16. Technology Emphasis (TPM Principle)

The JIT and TPM Principles are applicable strictly to manufacturing industries. For us, with today’s scope,
we would discuss the 4 TQM and 5 Common Principles in detail.


Index


2. Need and Applicability of TQM (60 min) 








Index










Key Elements of TQM – TQM Structure in the Org.

Intl Quality Std.
Social Aspects

Environment

Technology
Legislation

Market

Others
Health
Quality Standards

Output
Input - Quality
- Supplier Business Process - Cost
- Resources - Delivery
- Service

Customer (Int./Ext.) Satisfaction

TQM Structure in the Org.

Management plans the activities
for TQM facilitation

Different applicable Quality
Standards are integrated into the
Process and Operation

The Quality Standards ensure
Supply Chain Management
to be correct and smooth

The Quality Standards also ensure
the final product to be as per
customer requirement or better

Correct inflow and outflow of
services and products keep
customers satisfied

So, overall Operation runs on its Optimum Capacity always,
so that Cost, Revenue and Customer Satisfaction
are always on minimum defect level


1 – Cross-Functional Product Design (TQM)

Cross-functional product design is a widely used method for involving different functional areas in new
product/process development.

It is used when either an existing product has to under go change or a new product is planned or
conceived to be launched.

The advantages are:

1. Previous Experience are used

2. Buy in of all departments ensures minimum
resistance and ease in change management

3. All factors, including Finance, Engineering, Cross Functional
Maintenance, Marketing, Operations etc. are taken
care of Interaction

4. Sustainability of the Product increases

5. Any setback in future is handled with planned
procedures


1 – Cross-Functional Product Design (TQM)

The Cross-Functional Product Design should be measured to eliminate chances of a Product design or
re-design to miss out on inputs of any Function and to ensure, it is adhered to, at first place.

Measurement Parameters are:

1. Direct labour employees are involved to a great extent (on
teams or consulted) before introducing new products or
making product changes.

2. Manufacturing engineers are involved to a great extent
before the introduction of new products.

3. There is little involvement of manufacturing and quality
people Cross Functional
in the early design of products, before they reach the plant. Interaction
4. Design is conceived in teams, with members from a variety
of areas
(marketing, manufacturing, etc.) to introduce new products.

5. The time to introduce new products is reduced by designing
product and process together.


2 – Process Management (TQM)

Process management is the application of knowledge, skills, tools, techniques and systems.
Its primary motive is to define, visualize, measure, control, report and improve processes.
The goal of PM is to meet customer requirements profitably.
It is also called BPM (Business Process Management) and
it is different from Program Management or Project Management.

The advantages are:

1. Processes are defined as per Quality
Parameters and has defined SOPs

2. There can be step-vise approach to a mature
Process Management (diagram)

3. It is an ongoing Process, and helps to keep
pace with the market change and demand

4. Defects are minimized, Cost and Revenue
Optimized and Customer Satisfaction
Maximized.


2 – Process Management (TQM)

Measuring Process Management is easy. Any PM methodology implemented will come with its own
Fail-safe mechanism and check points for checking its proper running.

However, to ensure that PM overall is followed in the organization, the following steps can be taken.


1. A large per cent of the equipment or processes on the shop
floor should be under
statistical quality control always

2. Extensive use of statistical techniques is done to reduce
variance in processes.

3. Variance creates defects in final products that increase
waste and cost.

4. Charts and Graphs are used to determine whether our
manufacturing processes are in control,
Trending’s are done and each repeatable process is gauged
to detect Variance.

5. All Processes are monitored using statistical process control

3 – Supplier Quality Management (TQM)

Supplier Quality Management ensures that the supplier of raw materials is certified for Quality, example
ISO certified. Or the Organization has its own Quality check mechanism that has certified the Supplier.
Some Management Guru’s have created a separate chain called SCM (Supply Chain Management)
that studies the efforts in improving the standards and maintaining the high standards of Supplier so that
the basic input to the Process Management is flawless and optimized.

The advantages are:

1. Quality of raw materials are ensured

2. Timely delivery is ensured

3. Cost effective inventory management can be
done

4. Supplier back up ensure least disruption in
production

5. Competitive price can be negotiated


3 – Supplier Quality Management (TQM)

To ensure that Supplier Quality Management is given priority, the following steps can be taken care of,
along with creating responsibility centers for maintaining the same.


1. Quality is the number one criterion in selecting
suppliers

2. Mostly those suppliers are used which are
certified by the organization

3. Suppliers are certified, or qualified, for quality
as per Market Standard


4 – Customer Involvement (TQM)

Customer Involvement signifies the inputs of end user being a criterion in deciding the future course of
action to improve quality and productivity. This steps means simply having an effective mode of
communication between the Organization and End User so that there is a periodic and frequent
interaction between them. The communication extracts useful information from the Customers regarding
their views on the product. The methodology should be such that elicits information without much of an
effort to the end user and should briefly point out and take views that are most beneficial as inputs to the
Manufacturing decision at a late stage.

The advantages are:

1. Expectations of customers are factored into
the design.

2. Re-work is minimized

3. Customers feel involved that boosts market

4. Pre-Assessment of market is determined

5. Anticipation is created in market that also
boosts future growth


4 – Customer Involvement (TQM)

Measurement of Customer Involvement is apparent if the feedback mechanism from Customers exist and
are checked seriously and regularly.

It also needs to be checked, how seriously customers take the mechanism and their responsiveness along
with the center of responsibility behind the mechanism.


1. Frequent and close contact with customers

2. Feedback on quality and delivery performance from customers

3. Highly responsiveness to customers’ needs

4. Regular survey of customers’ requirements


5 – Information and Feedback (Common)

Information and Feedback is not a strictly TQM practice, however it must be clubbed with TQM practices
as discussed until now. It is also important to JIT and TPM. This signifies that the information on
Productivity, Quality of manufacturing for last chain/process is available to the employees, especially to
the ones who are involved in the process of manufacturing. It also signifies that the frequency of machine
breakdowns, defect rates etc. information is readily available.

The advantages are:

1. First hand information on fail safe is available

2. Imperative Changes can be incorporated soon

3. Identifications of workable and non-workable feedback
can be differentiated and client expectation is set

4. Cyclic Process of Feedback getting into further
enhancement ensures the customer satisfaction to
increase


5 – Information and Feedback (Common)

Measuring Information and Feedback Principle is followed or not is very important. This paves way for the
TQM, TPM to be implemented without fail and any defect taken care of at its inception.

The different ways implementation of Information and Feedback Principle can be measured are as below.


1. Charts showing defect rates and schedule compliance are
posted on the shop floor

2. Charts plotting the frequency of hardware/software
breakdowns are posted on the shop floor

3. Information on quality performance is readily available
to employees

4. Information on productivity is readily available to employees


6 – Committed Leadership (Common)

As the name signifies, it states that the Leadership team is dedicated to the overall Vision of being a
Quality Leader. It signifies that the Leadership Team should have planned their approach to accommodate
Quality initiatives in the process of manufacturing.
Leadership should be actively involved in the pointers discussed until now and the ones we are going to
discuss henceforth. Leadership should be well informed before taking any decision regarding manufacturing
deviations or innovations.

The advantages are:

1. Confident Teams and Individuals

2. Dedication and Fear of low Quality ensured

3. No assumption based decisions and only parameter of
success is correct steps

4. Customer Satisfaction becomes guaranteed


6 – Committed Leadership (Common)

Committed Leadership is an aspect that is so easily seen in the Culture and DNA of an organization, that it
may not be measured. However, as per Quality Standards, since all characteristics should be measured,
so as Committed Leadership.


1. All major department heads within plant accept
their responsibility for quality

2. Plant management provides personal leadership
for quality products and quality improvement

3. All major department heads within our plant work
towards encouraging JIT production

4. Our top management strongly encourages employee involvement in the production process

5. Plant management creates and communicates a vision focused on quality improvements

6. Plant management is personally involved in quality improvement projects


7 – Strategic Planning (Common)

Strategy or Policies are made at the uppermost levels of Leadership. TQM wants that there should be a
Strategic Plan for the organization which is clear and motivated. Generally an organizations strategy
revolves around its Vision and Mission.
With a clear strategy, it is easy for the Management, Manufacturing Plant and other departments to
develop their own pointers to drive towards the common goal.
This requires a methodical approach, that is TQM or any other Quality initiative.

The advantages are:

1. Goal is defined

2. Misinterpretation of Key deliverables are avoided

3. Larger goal of the organization makes the smaller
missions well defined and time bound

4. Leadership’s ease of maneuvering the teams and
management is increased towards the Vision


7 – Strategic Planning (Common)

Measuring the Strategic Planning is significant, as its existence sometimes is not very clear that creates
scope of ambiguities. Also, existence of a Vision not necessarily means the Goal is well defined.


1. The manufacturing plant has a formal strategic planning process
which results in a written mission, long-range goals and
strategies for implementation

2. Plant management is not included in the formal strategic
planning process. It is conducted at higher levels in the corporation
(This is because, Plant Management needs to follow
the Strategy formed at the higher level)

3. Plant management routinely reviews and updates
a long-range strategic plan


8 – Cross-Functional Training (Common)

Employees or Plant Workers needs to be cross trained in handling multiple kinds of tasks. This ensures
two aspects. One, less tasks would be in pipeline due to unavailability of skilled employee, reducing waste
of time and probable materials. Two, less employees would be without work due to not being able to do
an available job when primary employee responsible for the job is not present, reducing waste of
time and probably material again.

The advantages are:

1. Minimization of wait time for backlog work

2. Minimization of idle time of skillset

3. Reduction of cost for dedicated skills

4. Multiple back ups and accountability

5. Less of human resource and more of skill banks


8 – Cross-Functional Training (Common)

Measurement of Implementation of Cross Functional Training is not just base lining that each of the
employee has additional skills other than her/his own.

It can be measured via the below guidelines.


1. Employees should receive training to
perform multiple tasks (Training)

2. Employees should learn how to perform
a variety of tasks/jobs (OJT)

3. Employees should be cross-trained so that
they can fill in for others if necessary (Back ups)

4. Employee should be made secondary back ups
for one Primary skill holder (Implementation)


9 – Employee Involvement (Common)

As per the name, it simply means that the employees are involved in problem solving and getting around
issues that may or are cause of production to go down or stop. Employee Involvement ensures that the
solution derived has the accent of employees and any issue faced by the employees in the production
are addressed automatically.

The advantages are:

1. Less Negative turnover

2. Skill bank enhancement

3. Increase in accountability of employees due to being
engaged in problem solving and product design

4. Solutioning is fast due to prior knowledge of product
engineering and quality enhancement


9 – Employee Involvement (Common)

Assessing Employee Involvement and its degree is essential for the Management to forecast employee
behaviour and plan in advance. Also, it ensures that employees are not working in Silos and each Product
design and enhancement has maximum ideas involved and accountability created.


1. During problem solving sessions, all team members’
opinions and ideas are considered before
making a decision

2. Teams are formed to solve problems

3. Many problems are solved through small group
sessions (say, in past 3 years)

4. Problem solving teams help improve manufacturing processes at this plant

5. Employee teams are encouraged to try to solve their problems as much as possible


TQC – Total Quality Control

TQC is nothing but TQM only. In definition and approach both are the same. Sometimes, TQM is called TQC
because TQM is an approach to Quality Control that goes beyond Statistical Measurement and Regulation.
It suggests that a complete overview and re-evaluation of the specification of a product is necessary,
rather than just considering a set of alterable features within an existing product.

If the original specification does not reflect the correct quality requirements,
quality cannot be inspected or manufactured into the product.


Index



3. Key Elements of TQM (90 min) 







Index










TQM and Six Sigma

Six Sigma is a methodology and TQM is an overall practice that encompasses several Statistical Quality
Methodology and Initiatives along with factoring human elements

TQM is a Framework of Principles and Systems Approach. All nine Elements we discussed for TQM,
there are few which can use Six Sigma as a method of usage. Generally, a Six Sigma approach covers
one or more areas of TQM Elements

As per Philip Crosby:
Pre-determined requirements, design activities and manufacturing practices are the basis
of quality product and quality definition with be ‘conformance to requirement’. This
definition ensures zero defect product as 100% conformance to requirement is the only
acceptable quality measure. So it is Management’s responsibility to create correct
requirements.

As per Joseph M. Juran:
Quality is the final product being in ‘conformance to specifications’ or ‘conformance to
standards’. However, in terms of manufacturing, this definition is not accurate to T because
at a Managerial Level, conformance to specification is only one of the many means to
reach at end product that is 100% defect free.


Other Definitions for Quality


TQM and its Principles in relation to 6σ

1. Quality Integration
Quality cannot be achieved by applying inspection at end of the process. Rather, Quality is achieved by
integrating all interdependent components and measuring quality for each of them.

2. Quality First (Prevention, not Inspection)
Quality is neither a holistic approach nor an audit mechanism. It has to be engineered into each micro
level elementary step and has to be integrated from the very beginning.

3. Customer Orientation
As per TQM, an Organization’s Objectives, Structural and Managerial process should be established to
serve the Customer.

3. Continuous Improvement
With increasing demands from Customer, Competitors with cutting edge technology and harsh political
conditions, the only means to survive is CI.

3. Fact based decisions
A Manufacturing business needs quicker decisions in the face of cost control and market penetration.
With Facts and Figures, decision taken is risk-proof to a great extent.


PDCA

PDCA Cycles are an approach to Operations and Manufacturing that constitutes Plan, Do, Check and Act

Which helps in Problem Identification, Displaying Improvement Areas, Clearing Ambiguities and
Acknowledging the Solution, finally, implementing it.

The PDCA Steps are:
1. Standardize an operation and activities.
2. Measure the standardized operation (find cycle time and amount of in-process inventory)
3. Gauge measurements against requirements
4. Innovate to meet requirements and increase productivity
5. Standardize the new, improved operations
6. Continue cycle ad infinitum


TQM System Approach

Quality Planning starts from Quality Control is specific to
Leadership, enforced by the Center of Excellence of QC
Management and Implemented by and forms major part ot
Engineers Routine Quality Job

Quality Improvement is a Cycle in which all
Departments and Individuals play equally
important role


TQM System Approach

1. Strategic Quality Management
Systematic approach for Setting and Meeting Quality Goals throughout the Organization

2. Quality Planning
Customer needs are to be determined and products needs to be developed to meet those needs

3. Quality Control
Evaluation of current Quality Standards to determine if they meet the requirements. If they do not,
to take necessary measures and if they do, for a longer span, to increase standards

3. Quality Improvement
The steps taken towards Organizational Change that is either planned or forecasted. The change is
for biological growth or more market share


Index




4. TQM and Six Sigma (60 min) 






… and the journey continues

Keeping in view the complexity of the approach and vastness of the subject, it would be unfair to point
out the next steps here, without being able to explain my point of view in person…

For the complete training and presentation, you just need toask@sevensolutions.in

Or choose any other medium from below and sS would be happy to help!

http://www.sevensolutions.in
+91 9810 77 5457


Total Quality Management in a Day

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