Total Quality Management
Faculty: J.M.Pant
Management Consultant, Trainer and Visiting Professor For any query, contact Mob: 9811030273; e-mail:
[email protected];
[email protected]
J.M.Pant, Faculty
Total Quality Management
1. Main concerns of Manufacturers and Customers Manufacturer Customer Quality Quality Cost Price Productivity Availability Concerns of manufacturer and customer are generally not the same. Customer usually has no concern for company productivity and cost. Quality is the only common concern
J.M.Pant, Faculty
Total Quality Management
2. What is Total Quality Management (TQM) The elements of TQM as the name suggests are : Total Quality Management Total implies Complete - 100% All areas and functions All activities All employees - everyone All time - always
J.M.Pant, Faculty
Total Quality Management
3. Quality target is 100%, not even 99.9% because even
99.9% might mean many dissatisfied customers every year, defective components entering assembly, accidents etc. Quality definition Old view : Quality relates to products manufactured exactly to specifications. New view : Total Quality relates to products that totally satisfy our customer needs and expectations in every respect on a continuous basis. Quality then is to satisfy customer needs....it is in fact to delight customers.
J.M.Pant, Faculty
Total Quality Management
4. Who is our customer
The next person(individual or functional group) in the workplace; the receiver of output and the next to act on it. A customer may be either external or internal. Example : Next in process customer
Marketing Design Manufacturing Machine Shop Assembly Testing Sales Design Manufacturing Sales Assembly Testing Despatch Product user
J.M.Pant, Faculty
Total Quality Management
5. Management implies :
Quality does not happen on its own. It requires to be planned and managed. It is a management function, though it involves everyone. Therefore it needs a systematic approach.
TQM = Sum of TOTAL + QUALITY + MANAGEMENT
J.M.Pant, Faculty
Total Quality Management
6. TOTAL QUALITY MANAGEMENT is a thought revolution in management where the entire business is operated with customer orientation in all activities all the time by every one in the organization. TQM is an integrated system and methodology throughout the organization that help to design, produce and service quality products or services which are most economical for their value, most useful and always satisfactory to the customer.
J.M.Pant, Faculty
Total Quality Management
7.
– – – – – –
Elements of TQM 7.1 Top management commitment
Management responsibility Support all TQM activities Appointment of management representative Customer feedback and complaints Quality reviews Shareholder delight
7.2
Delight the customer
– Customer satisfaction, customer delight – Internal customers – Customer focus, customer orientation
J.M.Pant, Faculty
Total Quality Management
7.
– – – – – – – –
Elements of TQM 7.3 People based management
Total Employee Involvement Employee delight Team work People make quality Education and Training Effective communication Internal audits Review of non conformities
J.M.Pant, Faculty
Total Quality Management
7.
Elements of TQM 7.4 Management by fact
– Process orientation – Measurement, Observation, Experimentation
7.5
– – – –
Continuous improvement
Continuous improvement cycle (PDCA) Kaizen 5S Prevention of repetitive occurrence
J.M.Pant, Faculty
PDCA Cycle
4. Act
Institutionalize improvement; continue cycle.
1. Plan
Identify problem and develop plan for improvement.
How to improve next time?
What to do? How to do?
2. Do
Implement plan on a test basis.
3. Study/Check
Assess plan; is it working?
Things as per plan?
Do as planned
J.M.Pant, Faculty
Problem Solving Cycle
PDCA for problem solving
What Plan Why How Definition of problem Analysis of Problem Identification Of causes Planning Countermeasures Implementation Confirmation Of result Standardization
J.M.Pant, Faculty
Do Check Action
Total Quality Management
7.
– – – –
Elements of TQM 7.6 Appropriate technology
JIT Automation Fool proofing TPM
7.7
Statistical process control 7.8 Problem solving tools/techniques including Seven QC tools 7.9 Benchmarking
J.M.Pant, Faculty
Total Quality Management
7.
Elements of TQM 7.10 Quality Function deployment – Identify customer expectations – Derive measurable parameters – Set standards for these
7.11
Monitor variability in parameters 7.12 Move towards zero variability
J.M.Pant, Faculty
Total Quality Management
7. Elements of TQM 7.13 Institute all pervasive system – ISO 9001:2000 – TS 16949 – ISO 14000 series, ISO 14001
7.14
Supplier Control
– Approval of supplier for purchase – Technical support and vendor development – Supplier delight – Qualify suppliers and certify for direct line feed
J.M.Pant, Faculty
Total Quality Management
7.
Elements of TQM 7.15 Reduce cost of quality – Internal failure – External failure – Appraisal – Prevention 7.16 Developing a quality culture – Change in mind set – Being proactive
J.M.Pant, Faculty
Cost of
Financial Data
Sales Operation Costs Material Costs Overhead Costs Gen. & Admin. Costs
uality
Measurement of a Company’s Health
%
50 40 30 20 10
Percentage of Sales Dollar
Factory Data
Defect Reports Labor Hours Recode/Redesign Customer Complaints
5
J.M.Pant, Faculty
Cost of
Iceberg
uality
Bugs Returned Goods Recode Defects Warranty Costs Product Liability Missed Deadlines Complaint Handling Bad Market Reviews Poor Documentation Software Patches
J.M.Pant, Faculty
Interface Errors
Quotation Errors Configuration Errors Help Desk Training
Process Slowdown
Field Service Lost Market Share
Cost of
Is Cost related to Prevention of NonConformance ?
uality
PREVENTION
Element Decision Flow
YES
NO
Is Cost related to Evaluating the Conformance ?
YES
APPRAISAL
Is Non-Conformance found prior to Shipment ?
NO
Is Cost related to Non-conformance ?
INTERNAL FAILURE YES
YES
NO
Not a Quality Cost
NO EXTERNAL FAILURE J.M.Pant, Faculty
Cost of
uality
APPRAISAL Unit Testing Regression Testing Automated Test Tools User Interface Reviews EXTERNAL FAILURE Returned Goods Liability Costs Help Desk Lost Sales/Market Share
Examples of Elements
PREVENTION Design Quality Progress Reviews Requirements Documentation QA Training Process Engineering
INTERNAL FAILURE Recode/Repair Labor Defect Tracking & Reports Requirement Changes Down Equipments
J.M.Pant, Faculty
Cost of
uality
Strategy Premise
The Strategy is based on the premise that:
For each failure there is a root cause. Causes are preventable. Prevention is always cheaper.
J.M.Pant, Faculty
Cost of
uality
Appraisal Prevention
Total Sales
Cost of Quality%
TOTAL SALES
Internal Failures External Failures
J.M.Pant, Faculty
C O Q (Rs.Rs.Rs.)
COST OF QUALITY
OPTIMUM QUALITY COST MODEL
COST/ GOOD UNIT
OPTIMAL POINT
TOTAL COST FAILURE COSTS
PREVENTION & APPRAISAL COSTS 0 % GOOD
J.M.Pant, Faculty
100
Target Specification Example
A study found U.S. consumers preferred Sony TV’s made in Japan to those made in the U.S. Both factories used the same designs & specifications. The difference in quality goals made the difference in consumer preferences. F re q .
Japanese factory (Target-oriented) U.S. factory (Conformanceoriented)
LSL
T a rg e t
USL
J.M.Pant, Faculty
X
Benchmarking
How
do today's business leaders sustain their competitive edge? By staying abreast of the latest, best practices and learning to apply them to every aspect of their organization. Whether you work in accounts payable, travel & entertainment, planning & budgeting, inventory management or payroll, learning about, customizing and implementing the best practices is the surest way to enhance the efficiency and effectiveness of your work.
J.M.Pant, Faculty
Benchmarking
Benchmarking
concept
What are others’ Performance levels? How did they get there? Creative Adaptation
What is our Performance level? How do we do it?
Breakthrough Performance
J.M.Pant, Faculty
Benchmarking
Implicit
in benchmarking are two key elements: Measuring performance in numerical terms (metrics). Requires some sort of units of measure. – The numbers achieved by the best in class benchmark are the target. – Organization seeking improvement plots its own performance against the target. – Think of measures of performance in your manufacturing unit? service unit? For HR processes?
J.M.Pant, Faculty
Benchmarking
requires that managers understand why their performance differs. – Bench markers must develop a thorough and indepth knowledge of both their own processes and the processes of the best-in-class organization. – An understanding of the differences allows the managers to organize their improvement efforts to meet the goal. Benchmarking is about setting goals and about meeting them by improving processes.
Benchmarking
J.M.Pant, Faculty
Benchmarking Process
Decide
what to benchmark Understand current performance Plan Study others Learn from the data Use the findings
J.M.Pant, Faculty
Benchmarking Process
Decide
what to benchmark Think about the critical success factors and the mission.
– Which processes are causing the most trouble? – Which processes contribute most to customer
satisfaction and which are not performing up to expectations? – What are the competitive pressures impacting the organization the most? – What processes have the most potential for differentiating our organization from the competition?
J.M.Pant, Faculty
STANDING IN THE MARKETPLACE
<Example>Rating for each attribute and weighted rating to be entered in the cells for company X and the competitors
Weight Company X Competitor A Competitor B
Attribute Safety
Performance
Quality Service Ease of Use
Reliability
J.M.Pant, Faculty
STANDING IN THE MARKETPLACE
<Example>For a service unit
Company X Competitor A Competitor B
Satisfaction with ..Weightage Greeting with a smile Processing transactions without error Easy to read and understand bank statements Prompt response
J.M.Pant, Faculty
STANDING IN THE MARKETPLACE
<Example>automobile manufacturer experiencing a drop in market share
Attribute Weightage Comparison to competition % Superior Quality of equipment Quality and availability of spare parts Quality of field repair service
J.M.Pant, Faculty
Competitive
Inferior
Types Of Benchmarking
1.
– –
Internal
Comparison within the organization of similar activities. Data easy to obtain
1.
– –
Competitive
Organization’s survival depends on its performance relative to competition Through surveys, reports, customers, suppliers, buying customers product to take apart and test.
J.M.Pant, Faculty
Types Of Benchmarking
3.
Process.
–
–
–
Many processes are common across industry boundaries, and innovations from other types of organizations can be applied across industries. It is relatively easy to find organizations with world class operations through published information, suppliers and consultants. For example, processes of payroll and accounts receivable, order processing, design, logistics etc..
J.M.Pant, Faculty
Types Of Benchmarking
3.
Process.
– <Examples> – Southwest Airlines benchmarked turnaround
time with auto racing pit crews. – Motorola looked to Domino’s Pizza and Federal Express for the best ways to speed up delivery systems.
J.M.Pant, Faculty
Benchmarking Process
Identifying
the best firms to benchmark
– There is no existing magic list of best-in-class
companies. – Hierarchy of best practices
World Class Any organization, India Industry-wide, Sector-wide Competitor Internally
J.M.Pant, Faculty
Benchmarking Process
Studying
Others
Information available internally Public information Questionnaires Site visits Focus groups – Panels of benchmarking partners brought together to discuss areas of mutual interest.(customers, suppliers, members of professional organizations, people with previous benchmarking activity experience, consultants).
J.M.Pant, Faculty
Benchmarking Process
Learning
Is
from the data
there a gap between the organization’s performance and the performance of the best-inclass organizations? What is the gap? How much is it? Why is there a gap? What does the best-in-class do differently that is better? If best-in-class practices were adopted, what would be the resulting improvement?
J.M.Pant, Faculty
Benchmarking Process
Using
Two
the findings
groups must agree on the change
– The process owners-people who will run the process – Top management-who will enable the process and
provide the necessary resources
If
best-in-class practices were adopted, what would be the resulting improvement? Current practices can’t change the best-in-class results but changing the process can.
J.M.Pant, Faculty
Benchmarking Process
Using
the findings
When acceptance is gained, new goals based on the benchmark findings are set. The generic steps for the development and execution of action plans are:
– – – – – – –
Specify tasks Sequence tasks Determine resource needs Establish task schedule Assign responsibility for each task Describe expected results Specify methods for monitoring results
J.M.Pant, Faculty
Quality Function Deployment
Dr
Mizuno of Tokyo Institute of Technology is credited with initiating the QFD system. First application of QFD was at Mitsubishi Heavy Industries in Kobe shipyard in 1972. After 4 years implemented by Toyota in production of mini-vans. QFD introduced in U.S in 1984 by Dr Clausing of Xerox.
J.M.Pant, Faculty
Quality Function Deployment
Benefits
of QFD: Improves customer satisfaction
– Defines requirements in a set of basic needs and
compares it to all competitive information. – Management can then place resources where they will be the most beneficial in improving quality.
Reduces
implementation time
– Fewer engineering changes needed – Critical to quality issues are identified and monitored
from product inception to production.
J.M.Pant, Faculty
Quality Function Deployment
Benefits
of QFD: Promotes team work
– Horizontal deployment of communication channels – Avoids misinterpretation, opinions and miscues.
Provides
documentation
– Database for future design or process improvements is
created.
– Serves as a training tool for new engineers.
J.M.Pant, Faculty
Quality Function Deployment
QFD
is a planning tool used to fulfill customer expectations. Focuses on Voice of the customer. Market research attempts to capture the voice of customer but they sometimes conflict, and lack clarity. This is where voice of the customer gets lost and voice of the organization enters.
J.M.Pant, Faculty
Quality Function Deployment
Voice of Customer
Solicited Quantitative Structured Unsolicited Qualitative Random Trade visits Customer visits Consultants
Focus groups Customer Complaint reports; lawsuits Customer surveys; market surveys; trade trials; customer audits; product purchase (buy back) survey
Sales force; training programs; conventions; trade journals; suppliers; academic; employees
J.M.Pant, Faculty
Quality Function Deployment
Voice
of customer: What does the customer really want? What are the customer’s expectations? Are the customer’s expectations used to drive the design process? What can the design team do to achieve customer satisfaction?
J.M.Pant, Faculty
Quality Function Deployment
Voice
of customer: Once the customer expectations and needs have been identified and researched, QFD team processes the information. The Affinity diagram is ideally suited for most QFD applications. QFD team:
– Designing a new product – Improving an existing product
J.M.Pant, Faculty
Quality Function Deployment
QFD
team
Team
members from Marketing, Design, Quality, Finance and Production. For existing product, team may have fewer members. Time commitment and inter team communication is a must. Regular team meetings. Team focus on quality management goal.
J.M.Pant, Faculty
Quality Function Deployment
Affinity Diagram Gathers large amount of data and organizes data into groupings based on their natural interrelationships. – Used when thoughts are too widely dispersed or numerous to organize – New solutions are needed Steps
– Phrase the objective – Record all responses – Group the responses – Organize groups in an affinity diagram
J.M.Pant, Faculty
Mapping the Voice of Customer
Affinity diagram – Scrambled ideas
What are the issues involved in missing shipping dates? Not enough fork trucks
Engineering changes Insufficient training Overcrowded dock Error on bill of lading Computer crashes Teams not used No place for returns Inexperienced supervisors Shipping turnover
J.M.Pant, Faculty
Mapping the Voice of Customer
Affinity diagram – Ordered ideas
What are the issues involved in missing shipping dates?
Facilities
Overcrowded dock No place for returns
People
Insufficient training Teams not used Shipping turnover
System
Computer crashes Engineering changes Error on bill of lading
Not enough fork trucks Inexperienced supervisors
J.M.Pant, Faculty
Quality Function Deployment
Prepare
an affinity diagram for: Improvement of the cafetaria Reducing equipment downtime Reducing congestion on roads Making Delhi more safe Increasing literacy in India Improving quality of PG management /engineering/ medical education
J.M.Pant, Faculty
House of Quality
The
primary planning tool used in QFD is the house of quality. The house of quality translates the voice of the customer into design requirements that meet specific target values and matches those against how an organization will meet those requirements.
J.M.Pant, Faculty
Interrelationship between technical descriptors
Technical descriptors (voice of the organization)
)
Relationship between requirements and descriptors
r r e mt s u C o
t f o eci o V (
Prioritized technical descriptors
J.M.Pant, Faculty
Prioritized customer requirements
Quality Function Deployment
QFD
(Fig A)
Process features Product features
Process Control features
Process features
Customers’ needs Customers
Product features Customers needs
J.M.Pant, Faculty
Quality Function Deployment
Fig
B is a matrix of customer needs (“customer requirements”) and product features (“technical requirements”) for paper being supplied to a commercial printer. Note the additional requirements on importance weighting, correlations between requirements, units of target values (e.g millimeters for width and thickness) and competitive evaluations. Fig B is also called as the House of Quality.
J.M.Pant, Faculty
Quality Function Deployment
House of Quality (Fig B)
Correlations entered In squares like: Strong positive, positive, Negative, Strong negative Technical requirements Importance to customer Customer requirements Paper width Paper thickness Coating thickness Tensile strength Paper color
Competitive evaluation X = Us
A = Competitor A B = Competitor B ( 5 is best) 1 2 3 4 5
Paper will not 3 tear
X
A B A X B B A X
Relationships Consistent Strong=9 finish Medium = 3 No ink bleed Small=1
Prints clearly
1 2 3
X AB
J.M.Pant, Faculty
Quality Function Deployment
House of Quality (Fig B)
Correlations entered In squares like: Strong positive, positive, Negative, Strong negative Technical requirements Importance to customer Customer requirements Peper width Paper thickness Coating thickness Tensile strength Paper color
Competitive evaluation X = Us
A = Competitor A B = Competitor B ( 5 is best) 1 2 3 4 5
Importance weighting
3
W:mm B X A
27
T: mm
36
microns
27
Kg per sq cm
9
Approved panel
X
A B A X B B A X
Relationships Target Values Strong=9 Medium = 3 Technical 5 evaluation 4 Small=1
3 2 1
A X B
B A X
A X B
X B A
X AB
J.M.Pant, Faculty
Total Quality Management
Change in mind set for variability reduction Conventional TQM way
Meet specifications
Move to target value
High tech machines needed Even with old machines through better setting, maintenance and employee training Managers think and plan MBO Profit by driving task completion Managers guide and lead Workers think, plan and do Kaizen (continuous improvement) Quality is the path of profit
J.M.Pant, Faculty