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TQM – Unit I Page 1
SCHOOL OF MECHANICAL ENGINEERING
DEPARTMENT OF MECHANICAL ENGINEERING
SPR1402 - TOTAL QUALITY MANAGEMENT
Definition of quality – Dimensions of quality – Quality planning – Quality costs – Analysis techniques for quality costs – Basic concepts of total quality management – Historical review – Principles of TQM – Leadership – Concepts – Role of senior management – Quality council – Quality statements – Strategic planning – Deming philosophy – Barriers to TQM implementation
UNIT – I – Introduction – SPR
TQM – Unit I Page 2 Total Quality Management (TQM) is an enhancement to the traditional way of doing business. Total - Made up of the whole Quality - Degree of Excellence a Product or Service provides. Management - Art of handling, controlling, directing etc. TQM is the application of quantitative methods and human resources to improve all the processes within an organization and exceed customer needs now and in the future. DEFINING QUALITY: Quality can be quantified as follows Q=P/E Where Q = Quality P = Performance E = Expectation DIMENSIONS OF QUALITY: Dimension Meaning and Example Performance Primary product characteristics, such as the brightness of the picture Features Secondary characteristics, added features, such as remote control Conformance Meeting specifications or industry standards, workmanship Reliability Consistency of performance over time, average time of the unit to fail Durability Useful life, includes repair
TQM – Unit I Page 4
QUALITY COSTS
Quality costs are defined as those costs associated with the non- achievement of product/service quality as defined by the requirements established by the organization and its contracts with customers and society. Quality costs is a cost for poor product of service. ELEMENTS OF QUALITYCOST: Cost of prevention Cost of appraisal Cost of internal failures Cost of external failures. ANALYSIS OF QUALITY COSTS: Trend analysis Pareto analysis
1. PREVENTION COST Marketing /Customer / User. Product / Service / Design Development. Purchasing Operations (Manufacturing or Service) Quality Administration. 2. APPRAISAL COST Purchasing Appraisal Costs. Operations Appraisal Cost
External Appraisal Costs Review of Test and Inspection Data Miscellaneous Quality Evaluations
3. INTERNAL FAILURE COST Product or Service Design Failure Costs (Internal) Purchasing Failure Costs Operations (Product or Service) Failure Costs
4. EXTERNAL FAILURE COST
Complaint Investigations of Customer or User Service Returned Goods Retrofit and Recall Costs Warranty Claims Liability Costs Penalties Customer or User Good will Lost Sales ANALYSIS TECHNIQUES OF QUALITY COST The purpose of quality cost analysis is to determine the cost of maintaining a certain level of quality. Such activity is necessary to provide feedback to management on the performance of quality assurance and to assist management in identifying opportunities.
Trend Analysis is one where Time-to-Time comparisons can be made which illustrates Figure1. 1 Trend Analysis - Watches PARETO ANALYSIS: Joseph Juran observed that most of the quality problems are generally created by only a few causes. For example, 80% of all internal failures are due to one (or) two manufacturing problems. Identifying these “vital few” and ignoring the “trivial many” will make the corrective action give a high return for a low money input.
Figure 1. 2. Pareto Diagram BASIC CONCEPTS OF TOTAL QUALITY MANGEMENT: Top Management commitment to quality in all aspects Customers focus of the organisation Process focus and improvement Measurement of Performance Employee involvement and empowerment Continuous Improvement Bench Marking Teams Supplier Teaming Training of employees Inventory management Communication Quality cost
SIX BASIC CONCEPTS OF TOTAL QUALITY MANAGEMENT
1. Management Commitment
2. Customer Focus
3. Involvement and utilization of entire work force
4. Continuous Improvement
5. Treating Suppliers as Partners
6. Establish Performance Measures for the processes
GURUS OF TQM :
SHEWHART - Control chart theory PDCA Cycle DEMING - Statistical Process Control JURAN - Concepts of SHEWHART Return on Investment ( ROI ) FEIGANBAUM
- Total Quality Control Management involvement Employee involvement Company wide quality control
ISHIKAWA (^) - Cause and Effect Diagram Quality Circle concept CROSBY - “Quality is Free” Conformance to requirements TAGUCHI - Loss Function concept Design of Experiments OBSTACLES IN IMPLEMENTING TQM : Lack of Management Commitment Inability to change organizational culture Improper Planning Lack of continuous training and education Incompatible organizational structure and isolated individuals and departments Ineffective measurement techniques and lack of access to data and results. Paying inadequate attention to internal and external customers Inadequate use of empowerment and teamwork Failure to continually improve BENEFITS OF TQM: Improved quality Employee participation Team work Working relationship Customer satisfaction Employee satisfaction Productivity Communication
CHARACTERISTICS OF QUALITY LEADERS:
1. They give priority attention to external and internal customers and their needs.
- They empower, rather than control, subordinates.
- They emphasis improvement rather than maintenance.
- They emphasis prevention.
- They emphasis collaboration rather than competition.
- They train and coach, rather than direct and supervise.
- They learn from the problems.
- They continually try to improve communications.
- They continually demonstrate their commitment to quality.
- They choose suppliers on the basis of quality, not price.
- They establish organizational systems to support the quality effort. 12.They encourage and recognize team effort. LEADERSHIP CONCEPTS: A leader should have the following concepts
- People, Paradoxically, need security and independence at the same time.
- People are sensitive to external and punishments and yet are also strongly self- motivated.
- People like to hear a kind word of praise. Catch people doing something right, so you can pat them on the back.
- People can process only a few facts at a time; thus, a leader needs to keep things simple.
- People trust their gut reaction more than statistical data.
- People distrust a leader’s rhetoric if the words are inconsistent with the leader’s actions. THE 7 HABITS OF HIGHLY EFFECTIVE PEOPLE:
- Be Proactive
- Begin with the End in mind
- Put First Things First
- Think Win – Win
- Seek First to Understand, then to Be Understood
- Synergy
- Sharpen the Saw (Renewal)
ROLE OF SENIOR MANAGEMENT
- Management by Wandering Around (MBWA).
- Strategy of problem solving and decision making.
- Strong information base.
- Recognition and Reward system.
- Spending most of the time on Quality.
- Communication.
- Identify and encourage potential employee.
- Accept the responsibility.
- To play a role model. 10.Remove road blocks. 11.Study TQM and investigate how TQM is implemented elsewhere. 12.Establish policies related to TQM. 13.Establish “priority of quality” and customer satisfaction as the basic policy. 14.Assume leadership in bringing about a cultural change. 15.Check whether the quality improvement programmes are conducted as planned. 16.Become coaches and cheer leaders to implement TQM. 17.Generate enthusiasm for TQM activities.
- Visit other companies to observe TQM functioning.
- Attend TQM training programme. 20.Teach others for the betterment of society and the surroundings. QUALITY COUNCIL A quality council is established to provide overall direction. The council is composed of Chief Executive Officer Senior Managers Coordinator or Consultant A representative from the Union Duties of the council are Develop the core values, vision statement, mission statement and quality policy statement Develop the strategic long term plan with goals and Annual Quality Improvement Program with objectives
It describes the function of the organization. It provides a clear statement of purpose for employees, customers and suppliers A simpler mission statement is To meet customers transportation and distribution needs by being the best at moving their goods on time, safely and damage free QUALITY POLICY STATEMENT: It is guide for everyone in the organization as to how they should provide products and services to the customers. Common characteristics are Quality is first among equals Meet the needs of the internal & external customers Equal or exceed competition Continuously improve the quality Utilize the entire workforce STRATEGIC QUALITY PLANNING Goals – Long term planning (Eg: in the war) Objectives – Short term planning (Eg: Capture the bridge) Goals should Improve customer satisfaction, employee satisfaction and process Be based on statistical evidence Be measurable Have a plan or method for its achievement Have a time frame for achieving the goal Finally, it should be challenging yet achievable SEVEN STEPS TO STRATEGIC QUALITY PLANNING: Customer needs Customer positioning Predict the future Gap analysis
Closing the gap Alignment Implementation TQM IMPLEMENTATION: Begins with Management Commitment Leadership is essential during every phase of the implementation process and particularly at the start Senior Management should develop an implementation plan. Timing of the implementation process is very important
- Create and publish the Aims and Purposes of the organization.
- Learn the New Philosophy.
- Understand the purpose of Inspection.
- Stop awarding business based on price alone.
- Improve constantly and forever the System.
- Institute Training.
- Teach and Institute Leadership.
- Drive out Fear, Create Trust and Create a climate for innovation.
- Optimize the efforts of Teams, Groups and Staff areas.
- Eliminate exhortations for the Work force.
- Eliminate numerical quotas for the work force.
- Eliminate Management by objectives.
- Remove Barriers that rob people of pride of workmanship.
- Encourage Education and Self-improvement for everyone. Take action to accomplish the transformation.
PART-B
- What is the quality cost? Explain the techniques used for quality cost
- Explain the principles of TQM
- Explain the Deming’s Philosphy
- Explain the barriers to TQM Implementation
- Explain the concepts of Leadership
TQM – Unit II Page 1
SCHOOL OF MECHANICAL ENGINEERING
DEPARTMENT OF MECHANICAL ENGINEERING
SPR1402 - TOTAL QUALITY MANAGEMENT
Customer satisfaction – Customer perception of quality – Customer complaints – Service quality – Customer retention – Employee involvement – Motivation, empowerment, teams, recognition and reward – Performance appraisal – Benefits – Continuous process improvement – Juran trilogy – PDSA cycle – 5S – Kaizen – Supplier partnership – Partnering
- Sourcing – Supplier selection – Supplier rating – Relationship development – Performance measures – Basic concepts – Strategy – Performance measure.
UNIT – II – TQM Principles – SPR
