Total Quality Management TQM

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Total Quality Management - TQM

Total Quality Management - TQM
The quality journey continues…….. Author: Dr Rhys Rowland-Jones

Standards in Action
www.bsieducation.org/standardsinaction

Total Quality Management - TQM

Session Plan
• • • • Introduction to concepts of TQM Standards and TQM TQM Reasons for failure Measurement of Quality

Standards in Action
www.bsieducation.org/standardsinaction

Total Quality Management - TQM

Total Quality Management
• • • • • TQM is a philosophy which applies equally to all parts of the organization. TQM can be viewed as an extension of the traditional approach to quality. TQM places the customer at the forefront of quality decision making. Greater emphasis on the roles and responsibilities of every member of staff within an organization to influence quality. All staff are empowered.

Standards in Action
www.bsieducation.org/standardsinaction

Total Quality Management - TQM

Total Quality Management
Doing things right…..

….FIRST time.
Standards in Action
www.bsieducation.org/standardsinaction

Internetix (2005)

Total Quality Management - TQM

British Standards on TQM
BS 7850-1:1992 • Total quality management. Guide to management principles. BS 7850-2:1994, ISO 9004-4:1993 • Total quality management. Guidelines for quality improvement.
Standards in Action
www.bsieducation.org/standardsinaction

Total Quality Management - TQM

Elements of TQM
• • • Leadership
– Top management vision, planning and support.

Employee involvement
– All employees assume responsibility for the quality of their work.

Product/Process Excellence
– Involves the process for continuous improvement.

Standards in Action
www.bsieducation.org/standardsinaction

Total Quality Management - TQM

Elements of TQM
• Continuous Improvement
– A concept that recognizes that quality improvement is a journey with no end and that there is a need for continually looking for new approaches for improving quality.



Customer Focus on “Fitness for Use”
– Design quality
• Specific characteristics of a product that determine its value in the marketplace.

– Conformance quality
• The degree to which a product meets its design specifications.

Standards in Action
www.bsieducation.org/standardsinaction

Total Quality Management - TQM

A fundamental concept of TQM from BS 7850 - a ‘Process’
• “A set of inter-related resources and activities which transform inputs into outputs.” (ISO 8402). • “Any activity that accepts inputs, adds values to these inputs for customers, and produces outputs for these customers. The customers may be either internal or external to the organization.” (BS 7850)

Standards in Action
www.bsieducation.org/standardsinaction

Total Quality Management - TQM

"The Simple Process"
Controls

Inputs

Proces s

Outputs

Resources

(Source: BS 7850: 1992, “Total Quality Management”)

Standards in Action
www.bsieducation.org/standardsinaction

Total Quality Management - TQM

Changing Role of the Process Owner
Process 1 Input from supplier As customer Process owner Output As supplier Input As customer Process owner As supplier Output to customer Process 1

(Source: BS 7850: 1992, “Total Quality Management”)
Standards in Action
www.bsieducation.org/standardsinaction

Total Quality Management - TQM

TQM & organizational Cultural Change
Traditional Approach Lack of communication Control of staff Inspection & fire fighting Internal focus on rule Stability seeking Adversarial relations Allocating blame
Standards in Action
www.bsieducation.org/standardsinaction

TQM Open communications Empowerment Prevention External focus on customer Continuous improvement Co-operative relations Solving problems at their roots

Total Quality Management - TQM

Perceived quality is governed by the gap between customers’ expectations and their perceptions of the product or service

Customers’ expectations for the product or service

Customers’ expectations of the product or service

Gap

Gap

Expectations > perceptions

Expectations = perceptions

Perceived quality is poor
Standards in Action
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Perceived quality is good
Source: Slack et al. 2004

Customers’ expectations for the product or service

Customers’ perceptions of the product or service

Expectations < perceptions

Customers’ perceptions of the product or service

Customers’ perceptions of the product or service

Total Quality Management - TQM

Additional views of Quality in Services
• Technical Quality versus Functional Quality
– Technical quality — the core element of the good or service. – Functional quality — customer perception of how the good functions or the service is delivered.

• Expectations and Perceptions
– Customers’ prior expectations (generalized and specific service experiences) and their perception of service performance affect their satisfaction with a service.
• Satisfaction = (Perception of Performance) – (Expectation)

Standards in Action
www.bsieducation.org/standardsinaction

Total Quality Management - TQM
Previous Experience Word of mouth communications Image of product or service

A “Gap” model of Quality

Customer’s expectations concerning a product or service Customer’s own specification of quality Gap 1

Customer’s perceptions concerning the product or service Gap 4

The actual product or service

Management’s concept of the product or service Gap 2

organization’s specification of quality

Gap 3

Standards in Action
www.bsieducation.org/standardsinaction

Source: Parasuraman, Zeithman and Berry. 1985

Total Quality Management - TQM

Continuous Improvement
• Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs. Kaizen: Japanese word for continuous improvement.



Standards in Action
www.bsieducation.org/standardsinaction

Total Quality Management - TQM

Implementing TQM
• Successful Implementation of TQM
– Requires total integration of TQM into day-to-day operations.

• Causes of TQM Implementation Failures
– Lack of focus on strategic planning and core competencies. – Obsolete, outdated organizational cultures.

Standards in Action
www.bsieducation.org/standardsinaction

Total Quality Management - TQM

Obstacles to Implementing TQM
• • • • • • • • • Lack of a company-wide definition of quality. Lack of a formalized strategic plan for change. Lack of a customer focus. Poor inter-organizational communication. Lack of real employee empowerment. Lack of employee trust in senior management. View of the quality program as a quick fix. Drive for short-term financial results. Politics and turf issues.

Standards in Action
www.bsieducation.org/standardsinaction

Total Quality Management - TQM

Some criticisms of TQM
1. 2. 3. 4. Blind pursuit of TQM programs Programs may not be linked to strategies Quality-related decisions may not be tied to market performance Failure to carefully plan a program

Standards in Action
www.bsieducation.org/standardsinaction

Total Quality Management - TQM

PDCA Cycle repeated to create continuous improvement
Performance

Plan Act Do Check

“Continuous” improvement
Time

Standards in Action
www.bsieducation.org/standardsinaction

Total Quality Management - TQM

Recognizing and rewarding Quality
• Promotion of high quality goods and services
– Malcolm Baldrige National Quality Award (MBNQA) (United States) – Deming Prize (Japan) – European Quality Award (European Union) – ISO9000 certification

Standards in Action
www.bsieducation.org/standardsinaction

Total Quality Management - TQM

The integrated framework of the Baldrige Award criteria

Source: 2004 Criteria for Performance Excellence, U.S. Dept. of Commerce, Baldrige National Quality Program, National Institute of Standards and Technology, Gaithersburg, MD 20899. (www.quality.nist.gov)

Standards in Action
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Total Quality Management - TQM

Continual improvement of the quality management system Continual improvement of the quality management system
Customers (and other interested parties) Customers (and other interested parties)

Management responsibility

Resource management
Requirements

Measurement, analysis and improvement

Satisfaction

Input
Key: Value adding activity information flow

Product realisation

Product

Output

Standards in Action
www.bsieducation.org/standardsinaction

Source: BS EN ISO 9001:2000

Total Quality Management - TQM

Overview of the EFQM Excellence Model

Standards in Action
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Total Quality Management - TQM

Quality Award common elements
• • • • • All take holistic approach Customers/people Measurable characteristics Visible Basis taken from TQM

Standards in Action
www.bsieducation.org/standardsinaction

Total Quality Management - TQM

Summary
• • • • TQM – a way of working Involves everyone High prominence on ‘customer’ Awards based upon TQM

Standards in Action
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