Intro To TQM
Intro To TQM
Intro To TQM
1. INTRODUCTION
DEFINITION
Total Quality Management (TQM) is an enhancement to the traditional
way of doing business. 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. TQM is for
the most part common sense. Analyzing the three words, we have.
BASIC APPROACH
TQM requires six basic concepts:
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1. A committed and involved management to provide long-term
top – to – bottom or- ganizational 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.
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3. 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. Including internal customers, and for
that matter, internal suppliers on project teams is an excellent approach.
Those affected by the plan must be involved in its development and
implementation. They understand and process better than anyone else.
Changing behavior is the goal. People must come to work not only to do their
jobs, but also to think about how to improve their jobs. People must be
empowered at the lowest possible level to perform processes in an optimum
manner.
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Quantitative data are necessary to measure the continuous quality
improvement activity.
Table 1-1
NEW AND OLE CULTURES
Quality Element Previous State TQM
Definition Product – oriented Customer – oriented
Priorities Second to service and cost First among equals of
Service and cost
Decisions Short – term Long – term
Emphasis Detection Prevention
Errors Operations System
Responsibility Quality control Everyone
Problem Solving Managers Teams
Procurement Price Life-cycle costs, partnership
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Manager’s role Plan, assign, control, Delegate, coach, facilitate,
And enforce And mentor
Shewhart
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 (See Chapter 18). 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
(see Chapter 6).
Deming
W. 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 crudities 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 (see Chapter2). He has authored a number of books including Out of
the Crisis and Quality, Productivity, and competitive Position as well as 161
scholarly studies.
Juran
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
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involvement. He recommended project improvement based on return on
investment to achieve breakthrough results. The Juran Trilogy (See chapter
6) for managing quality is carried out by the three interrelated processes of
planning, control, and improvement. In 1951, the first edition of Juran’s
Quality Control Handbook was published.
Feiganbaum
Armand V. Feigenbaum, PhD, argues that total quality control1 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. In
addition to customer satisfaction, some of Feigenbaum’s quality principles are
genuine management involvement, employee involvement, first - line
Su-pervision leadership, and company –wide quality control. In 1951, he
authored Total quality Control.
Ishikawa
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 (see Chapter
18), which is sometimes called an Ishikawa diagram. He developed the
quality circle concept (see Chapter 4) in Japan, whereby work groups,
including their supervisor, were trained in SPC concepts. The groups then
met to identify and solve quality problems in their work environment.
Crosby
Phillip B. Crosby authored his first book, Quality is Free, in 1979,
which was translated into 15 languages. It sold 5 million copies and changed
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The term total quality control was used rather than TQM during the early years of the movement.
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the way management looked at quality. He argued that “doing it right the first
time” is less expensive than the costs of detecting and correcting
nonconformities. In 1984, he authored Quality without Tears, which
contained his four absolutes of quality management. These absolutes are;
quality is conformance to requirements, prevention of nonconformance is the
objective not appraisal, the performance standard is zero defects not “that’s
close enough”, and the measurement of quality is the cost of nonconformance.
Taguchi
Genichi Taguchi, PhD, developed his loss function concept that
combined cost, target, and variation into one metric. Because the loss
functions is reactive, he developed the signal to noise ratio as a proactive
equivalent. The cornerstone of Taguchi’s philosophy is the robust design of
experiments. These concepts are described in Chapter 20.
TQM FRAMEWORK
Figure 1-1 shows the framework for the TQM system. It begins with
the knowledge provided by gurus of quality: Shewhart, Deming, Juran,
Figenbaum, Ishikawa, Crosby, and Taguchi. As the figure shows, they
contributed to the development of principles and practices and / or the tools
and techniques. Chapters 2 through 7 provide information on principles and
practices, and there are given at the bottom of the figure. Chapters 8 through
20 provide information on tools and techniques and their titles are given in the
upper right of the figure. Some of these tools and techniques are used in the
product and/or
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Benchmarking
Shewhart Information Technology
Deming Quality Management Systems
Juran Environmental Management System
Figenbaum Quality Function Deployment
Ishikawa Quality by Design ]
Crosby Failure Mode & Service Liability
Taguchi Total Productive Maintenance
Management Tools
Statistical Process Control
Experimental Design
Tools and Taguchi’s Quality Engineering
Gurus Techniques
Principles Product or
And Service Customer
Practices Realization
AWARENESS
An organization will not being the transformation to TQM until it is
aware that the quality of the product or service must be improved. 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.
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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. The Japanese learned this fact from practical experience. Prior to
World War II, they could sell their products only at ridiculously low prices,
and even then it was difficult to secure repeat sales. Until recently,
corporations have not recognized the importance of quality. However, a new
attitude has emerged – quality first among the equals of cost and service. To
sum it up the customer wants value.
Table 1-2
Gain in Productivity with Improved Quality
Item Before Improvement After Improvement
10% Nonconforming 5%Nonconforming
Relative total cost for 20 1.00 1.00
units
Conforming units 18 19
Relative cost for 0.10 0.05
nonconforming units
Productivity increase (100)(1/18) = 5.6%
Capability increase (100)(1/18) = 5.6%
Profit increase (100)(1/18) = 5.6%
Adapted from W. Edwards Deming, Quality, Productivity, and
Competitive position (Cambridge, Mass.: Massachusetts Institute of
Technology, Center for Advanced Engineering studies, 1982).
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improvement projects are achieved with the same work force, same overhead,
and no investment in new equipment.
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.
DEFINING 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. For example,
a customer expects a different performance from a plain steel washer than
from a chrome – plated steel washer because they are a different grade. When
a product surpasses our expectations we consider that quality. Thus, it is
somewhat of an intangible based on perception. Quality can be quantified as
follows:
Q=P/E
Where Q = quality
P = performance
E = expections
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If Q is greater than 1.0, than the customer has a good feeling about the
product or service. Of course, the determination of P and E will most likely
be based on perception with the organization determining performance and
the customer determining expectations.
Quality has nine different dimensions. Table 1-3 shows these nine
dimensions of quality with their meanings and explanations in terms of a slide
projector.
Table 1-3
The 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
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control
Conformance Meeting specifications, or industry standards, workmanship
Reliability Consistency of performance over time, average time for the
unit to fail
Durability Useful, life includes repair
Service Resolution of problems and complaints, ease of repair
Response Human – to – human interface, such as the courtesy of the
dealer
Aesthetics Sensory characteristics, such as exterior finish
Reputation Past performance and other intangibles, such as being ranked
first
Adapted from David A. Garvin, Managing Quality: The Strategic and
Competitive Edge (New York: Free press, 1988).
HISTORICAL REVIEW
The history of quality control is undoubtedly as old as industry itself.
During the Middle Ages, quality was to a large extent controlled by the long
periods of training required by the guilds. This training instilled pride in
workers for quality of a product.
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The concept of specialization of labor was introduced during the
Industrial Revolution. As a result, a worker on longer made the entire
product, only a portion. This change brought about a decline in
workmanship. Because most products manufactured during that early period
were not complicated, quality was not greatly affected. In fact, because
productivity improved there was a decrease in cost, which resulted in lower
customer, expectations. As products became more complicated and jobs more
specialized, it became necessary to inspect products after manufacture.
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In1960, the first quality control circles were formed for the purpose of
quality improvement. Simple statistical techniques were learned and applied
by Japanese workers.
By the late 1970s and early 1980s, U.S. managers were making
frequent trips to Japan to learn about the Japanese miracle. These trips were
really not necessary – they could have read the writings of Deming and Juran.
Nevertheless, a quality renaissance began to occur in U.S. products and
services, and by the middle of 1980 the concepts of TQM were being
publicized.
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OBSTACLES
Implementation of TQM is described in the next chapter, on
leadership. This section gives information concerning the obstacles
associated with implementation.
Robert Galvin of Motorola said that only the CEO can ensure, even in
times of great pressure, that quality and customer satisfaction are preserved.
In a survey of 188 quality professionals, 66% reported that management’s
compensation is not linked to quality goals such as failure costs, customer,
and cycle time reduction.3
2
Robert J. Masters, ‘Overcoming the Barriers to TQM’s Succes,” Quality Progress (May 1996):
53-55.
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Nabil Tamimi and Rose Sebastiancelli, “The Barriers to Total Quality Management,” Quality
progress (June 1998): 57-60.
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Inability to Change organizational Culture
Changing an organization’s culture is difficult and will require as mush
as five years. Individuals resist change – they become accustomed to doing a
particular process and it become the preferred way. Management must
understand and utilize the basic concepts of change. They are:
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 form a state of
fear to trust.
Improper planning
All constitutes 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
4
Gary Salegna and Farzaneh Fasel, “Obstacles to Implementing Quality”, Qulaity progress (July
2000): 53-57.
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financial or sales goals. Peterson Products, a metal stamping firm near
Chicago, improved on- time delivery, which resulted in a 25% increase in
sales. Focus on quality and the other goals will follow.
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At Spartan Light Metal products, Inc. in Sparta, IL product support
teams composed of three members from design, quality, and production are
assigned to each customer segment.
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Willard I. Zangwill, “Ten Mistakes CEO’s Make about Quality”, Quality progress (June 1994):
43-48.
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Inadequate Use of Empowerment and Teamwork
Teams need to have the proper training and, at least in the beginning, a
facilitator. Whenever possible, the team’s recommendations should be
followed. Individuals should be empowered to make decisions that affect the
efficiency of their process or the satisfaction of their customers. Solar
Turbines, Inc. flattened its organization by restructuring into work teams and
delegating authority to the point of customer contact or to the work
performed.
BENEFITS OF TQM
According to a survey of manufacturing firms in Georgia, the benefits
of TQM are improved quality, employee participation, teamwork, working
relationships, customer satisfactions, employee satisfaction, productivity,
communication, profitability, and market share.7
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and five years after winning the award. No difference was shown between the
two groups prior to the award. However, as shown below the award group far
outstripped the control group during the five –year period after the award.
The study also showed that stock price performance for the award
winners was 114% while the S&P was 80%. In addition, the study showed
that small organizations out performed larger organizations. Recent studies
have shown that only about 30% of manufacturing organizations have
successfully implemented TQM.8
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Kevin B. Hendricks and Vinod R. Singhai, “Don’t Count TQM Out”, Quality progress (April
1999): 35-42.
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Malcolm Baldrige National Quality Award, 1988 Manufacturing Category Recipient, NIST/
Baldrige Home page, Internet.
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managers literally carry with them the corporate objective of “total customer
satisfaction” – it’s on a printed card in their pockets. Corporate officials and
business managers wear pagers to make themselves available to customers,
and they regularly visit customers businesses to find out other likes and
dislikes about Motorola products and services. The information, along with
data gathered through an extensive network of customer surveys, complaint
hotlines, field audits, and other customer feedback measures, guides planning
for quality improvement and product development. Pagers supplied to
Nippon Telegraph and Telephone is a major share of that market.
Key initiatives are six – sigma quality and reducing total cycle time.
Six sigma is a statistical measure that translates into a target of no more than
3,4 defects per million products and included customer service. Motorola’s
cycle-time reductions is even more ambitious; the clock starts ticking the
moment the product is conceived. This calls for an examination of the total
system, including design, manufacturing, marketing, and administration.
EXERCISES
1. Describe how the golden rule does or does not influence each of the
six concepts of TQM.
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2. Of the six basic TQM concepts, which were the most effective in
World war II? Explain.
3. Which of the gurus would be the father of quality control? Which
had the greatest impact on management? Which is noted for robust
design?
4. Select a product or service and describe how the dimensions of
quality influence its acceptance.
5. Working as an individual or in a team of there or more people,
determine two or more obstacles to implementing TQM in one or
more of the organizations listed below:
(a) Large bank
(b) Health – care facility
(c) University academic department
(d) University nonacademic department
(e) Large department store
(f) Grade school
(g) Manufacturing facility
(h) Large grocery store.
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