tqm pak aims

8/3/2019 TQM Pak Aims

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OPERATIONS MANAGEMENT

O M

By: ZAHID HUSSAINM Phil: Total Quality Management

Lead Auditor 5-SIRCA Lead Auditor ISO-9001-2000

IRCA Lead Auditor ISO-14000-2004IRCA Lead Auditor OHSAS 18000-2007

B. Sc Engineering (Chemical)



Total Quality Management



Dr. Edward W. Deming (Management Philosophy

and Systems) (1900-1993)The Statistician USA

Dr. Joseph M. Juran (Quality Trilogy)

(1904-2008 -103years age)- USA-industrial engineer

Dr. Philip CrosbyZero defects and Cost of

quality) (1926 -2001)Age 75) USA.

Dr. Kaoru Ishikawa Simple tools, QCC, Company-

wide quality) (1915-1989)Age-74, Japan,Mechanical Engineer

Dr. Genichi Taguchi (Loss Function), 1924- 198965 years, Japan, TextileEngineer

Leaders in Quality Revolution



Total Quality Management Total:

Made up of the whole

Quality: Degree of excellence of a product orservice provider

Management: Act, Art or manner of handling,

controlling, Directing etc.

TQM is the art of managing the whole to achieve excellence

•TQM is the concept of:• reducing costs,

• improving overall efficiency and• having a policy of customer satisfaction,• right first time operations and• continuous quality improvement throughout thecompany• utilizing the whole workforce



Gurus

Principles andPractices

ShewhartDemingJuran

IshikawaCrosbyTaguchi

People and Relationships:Leadership

Customer SatisfactionEmployee Involvement

Supplier Partnership

Tools andTechniques

Product orService

Realization

BenchmarkingQuality Management SystemsQuality Function Deployment

Statistical Process ControlTaguchi’s Quality Engineering

Customer

Approach:Continuous Process Improvement

Measure:

Performance Measures

TQM Frame Work



Q=P/E

–Q= Quality

–P=performance –E=Expectations

Quality Measurement?



Dimensions of Quality inManufacturing Sector

DIMENSION MEANING

Performance Primary product characteristics, such as thebrightness of the picture

Features Secondary characteristics, added features,such as remote control

Conformance Meeting specifications or industry standards

Reliability Consistency of performance over time

Durability Useful life, includes repair



Dimensions of Quality inManufacturing Sector

DIMENSION MEANINGServiceability Resolution of problems and complaints, ease

of repair, speed & competence of repair

Responsiveness Human-to-human interface, such as Meet the

dealer with good manners

Aesthetics Sensory characteristics (which means itappeals you) , such as exterior finish

Reputation Past performance and other intangibles, such

as being ranked first

Empathy Intellectual & emotional awareness andunderstanding of another person's thoughts,feelings, and behavior emphasizes

understanding



Dimensions of Quality inService Sector

Time (Response time)

Timeliness (The length of time between the referenceperiod to which the information pertains and the date onwhich the information becomes available)

Completeness (Some time it is possible that data is notavailable but considered complete as it meets the customerrequirement. i.e. data mandatory and optional requirementi.e. customer mailing address and office address)

Consistency (Data across the organization should be insynch with each other i.e. a credit card is cancelled andinactive but card billing status is “Due’ or agent is inactivewith disbursement account active)



Dimensions of Quality inService Sector

Accuracy (The degree to which the information correctlydescribes what it is designed to measure i.e. The address of customer is real in database, thermostat showing real temp)

Accessibility (The accessibility of data products reflects

how readily the data can be located and accessed from withinorganization data holdings. It depends upon the opportunityto know that the data is available and how to access it- Accessibility at Need to know basis)

Responsiveness (Human-to-human interface, such asMeet the dealer with good manners)



TOTAL QUALITY Total Quality can be achieved by Total Quality Culture (TQC)

It is the sum of norms beliefs and values thatregulate the behavior of individual and groupwithin an organization.

Objective of TQC:1.How to achieve quality.2.How to maintain quality.

3.How to improve quality on continuous basis.TQC Stands on three Pillars1.Building quality Policy2.Quality System

3.Quality Management



TOTAL QUALITY Total Quality can be achieved by Total Quality Culture (TQC)

Education & Training ---- Employees participation ---- Empowerment



Types of Quality Efforts Deming identified three types of quality essentials.

Quality of design or redesign Quality of conformance

Quality of performance.

Quality of Design

The extent to which the design reflects a product orservice that satisfies the customer needs orexpectations.

Aim is to yield products to meet the market need ata given cost.

Customer needs are determined by consumerresearch and by analysis of feedback from salespersons.



Types of Quality Efforts

Quality of Conformance

The ability and extent to which the product or serviceconforms to the design standard expectations.

Aim is to reduce the variability in products w.r.tspecifications.

Quality of Performance

Focus on performance of the product or services in

the marketplace.

Tools to measure the quality of performance are Analysis of service calls

Customer satisfaction surveys

Analysis of reasons why customers do not purchase.

Maintenance and reliability studies.



Cost of Quality

The Iceberg Model of Cost of Quality

In manufacturing company for each known $1 of scrap and rework thereis an additional $6 to $7 in "hidden" costs.



Cost of Quality

The sum of the above costs. This represents the differencebetween the actual cost of a product or service and what thereduced cost would be if there were no possibility of substandard service, failure of products or defects in their

manufacture.



Cost of Quality• Prevention Cost

• Appraisal Cost• Failure Cost- (Internal – External)

The sum of the above costs. This represents thedifference between the actual cost of a product or

service and what the reduced cost would be if therewere no possibility of substandard service, failure of products or defects in their manufacture.

Total Quality cost: P+A+IF+EF

Actual cost of quality of product: 10+10+5+20= 45

Reduced cost of product with no loss: 10+10+0+0= 20

Actual cost of product – reduced cost of product= 45-20=25

Cost of poor quality: 25



Cost of Quality

Prevention Cost:

The cost of all activities specifically designed toprevent poor quality in product and services.

– Marketing research, customer perception

survey. – New product design reviews

– Quality Education & Training

– Quality Planning/ Manufacturing, ServicesProcess validation, Specific training

– Quality Improvement meetings

– Supplier capability Survey



Appraisal Cost:

– “The cost associated with Measuring,Evaluating or Auditing products or services toassure conformance to quality standards and

performance requirements” Calibration cost.

Incoming material inspection.

In-process and final inspection.

Verification and checking activities

Cost of Quality



Cost of lost opportunity:

– “Cost associated with loosing some vitalopportunity”

Revenue lost by order cancellation

Losing to competitor because of notmeeting customer requirement.

Reduced repeated order

Company bad name

Cost of Quality



The 1-10-100 Rule• A defect caught in requirements phase costs a factor of 1 (1x) to fix.

•A defect caught in construction costs 10 times as much as in requirements.

• A defect caught in production costs up to 100 times as much as in requirements.

An ounce of prevention s worth a pound of cure.”



Which Quality Approach?

Performance Excellence Malcolm Baldrige Quality Award

EFQM Excellence Model / EQA

(European Foundation for Quality Management)

National Awards:

– Pakistan Quality Award (in process)

– Australian / Singapore Quality Award ISO –9000:2008 International QMS Award



Malcolm Baldrige National Quality Award Performance Excellence

Annual award forperformanceexcellence of USorganizations.

The Baldrige Award isnamed after the lateSecretary of Commerce MalcolmBaldrige in US.

Organizations thatapply for the Baldrige Award are judged byan independent boardof examiners.



Malcolm Baldrige National Quality Award Performance Excellence

Started on Aug-1987. manufacturers, servicebusinesses and small businesses. Education & healthcare categories were added in

1999. Nonprofit category was added in 2007. Six categories are involved , i.e. manufacturing,

services, small biz, health care, education Non profitorg.

Three awards are given per year. Since 1988, 75 organizations have received Baldrige

Awards. The Baldrige program is managed by the Commerce

Department’s National Institute of Standards and

Technology (NIST) in conjunction with the private



M.B. Quality Award Categoriesand Point values

1. Leadership (11 %)

2. Strategic Planning (8 %)

3. Customer and Market Focus (8 %)4. Information & Analysis (8 %)

5. HR Focus (10 %)

6. Process Management (10 %)7. Business Results (45%)



Baldrige Criteria for Performance Excellence Framework

1

Leadership

11 %

2

Strategic

Planning

8 %

3

Customer &

Market Focus

8 %

5

HR Development

& Management

10%

6

ProcessManagement

10%

7

Business

Results- 45%

4

Information & Analysis ( 8 %)

Customer and Market Focused

Strategy and Action Plans

Values, direction,innovation, societalresponsibilities

Needs,expectations,

determinesatisfaction

Customer focus design,

product, service delivery,support, related processdesign , implementationmonitoring to achievebetter performance

Improvement inkey business areas,

financialperformance,Operationalperformance



QUESTIONS

tqm pak aims

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