Quality Management

Lec # 14

Why Quality Management

Ford Motor Company had operating losses of $3.3
billion between 1980 and 1982.
Xerox market share dropped from 93% in 1971 to
40% in 1981.
Attention to quality was seen as a way to combat
the competition.

TOTAL QUALITY MANAGEMENT

Total - made up of the whole
Quality - degree of excellence a product or service
provides
Management - act, art or manner of planning,
controlling, directing,.
Therefore, TQM is the art of managing the whole
to achieve excellence.

TOTAL QUALITY MANAGEMENT

Total Quality Management means that the
organization's culture is defined by and supports
the
constant
attainment
of
customer
satisfaction through an integrated system
of tools, techniques, and training.
This involves the continuous improvement of
organizational processes, resulting in high
quality products and services

Productivity and TQM

Traditional view:
Quality cannot be improved without significant losses
in productivity.

TQM view:
Improved quality leads to improved productivity.
Important Link
http://www.iso.org/iso/home/standards/managementstandards/iso_9000.htm

Basic Tenets(asool) of TQM

The customer makes the ultimate determination of quality.

Top management must provide leadership and support for all quality initiatives.

Preventing variability is the key to producing high quality.

Quality goals are a moving target, thereby requiring a commitment toward

continuous improvement.
Improving quality requires the establishment of effective metrics. We must
speak with data and facts not just opinions.

Continuous Improvement versus Traditional

Approach
Traditional
Improvement

Market-share focus

Individuals

Focus on who and why

Short-term focus

Status quo focus

Product focus

Innovation

Fire fighting

Continuous
Improvement
Customer focus
Cross-functional teams
Focus on what and how
Long-term focus
Continuous improvement
Process improvement focus
Incremental improvements
Problem solving

Cost of Quality
Contractors pay a significant price for poor quality
resulting from accidents, waste, rework, inefficiencies,
poor
subcontractor
performance
and
poor
communication - these costs are estimated to be
between 5% to 30% of the construction cost of a
facility
Cost of nonconformance - includes both direct and
indirect costs of not doing things right the first time

Cost of Quality
Factors
Accidents
Omissions
Errors
Poor workmanship
Being late

Results
Rework
Recalls (Band krna)
Expediting (jaldi karna)
Removal of punch list items
Time extensions
Litigation( muqadma ka amal)
costs and damages
Penalties and liquidated (karobar
band krna) damages
Increased insurance costs

Total Quality Management Principles

Customer-Driven Organization
Organizations depend on their customers and
therefore should understand current and future
customer needs, meet customer requirements, and
strive to exceed customer expectations.
It requires 10 times as much money to attract a new
customer than it requires to keep a customer you
already have......keep the present customer happy.

Leadership
Leaders establish unity of purpose, direction, and the
internal environment of organization; they fully involve
people in achieving the organizations objectives.
The

difference

between

an

average

and

outstanding company is the leadership they have

an

Involvement of People
People are the essence of an organization and their
full involvement enables their knowledge and
experiences to be used for the organizations benefit
Employees are a companys greatest asset
An individual without information can not take
responsibility; an individual with information can and
will take responsibility

Process Approach
A desired result is achieved more effectively when related resources and
activities are managed as a process.
System Approach to Management
Identifying, understanding and managing a system of interrelated
processes for a given objective will contribute to the effectiveness and
efficiency of the organization

. Continual Improvement
Continual improvement is a permanent objective of the
organization.
In the race for quality, there is no finish line.
Quality comes from within; it comes from the hearts and the
minds of the people
Factual Approach to Decision Making
Effective decisions and actions are based on the analysis of
data and information

Mutually Beneficial Supplier Relationships

Mutually beneficial relationships are established to
enhance the ability of both organizations to create
value.

Tools of TQM
Check Sheet
1. Tabulates frequency of occurrence
2. Easy to use and understand
3.

Data gathered here can be used in other tools

Graph
1. Visual display of data
2. Major types
a) Line graph
b) Bar chart
c) Circle diagram (pie chart)

Tools of TQM
Histogram
1. Portrays frequency of occurrence
2. Shows various measures of central tendency

Pareto Chart
1.

Visually portrays problems and causes in order of severity or

frequency.

2. Helps determine which problems or cause to tackle first

Cause-and-effect diagram
2.

Portrays possible causes of a process problem.

3.

Helps determine root cause

Tools of TQM
Scatter diagram
1. Indicates the relationship between two variables.
2. Displays the strength of that relationship.

Control Chart
1. Monitors a process to determine magnitude of variation.
2. Estimates the parameters of a process.
3. Reduces the variability of a process.

Quality Process Component

A. Motivation
- based on recognition(pehchan), commendation(tareef),
recommendation(Tareef), repeat business, reward

B. Communication
- must be team-wide, involving all partners, as well as thorough,
honest, and complete

C. Commitment
- to the project, to the process, to all the partners, and to the
promised result

Quality Process Component (Contd)

D. Expectations
- realistic, reasonable, communicated, understood, and
accepted

E. Ability - adequate, understood, and consistent

F. Involvement - total, all-party, and consistent
G. Feedback
- thorough, understandable, and complete
Follow-up - complete and consistent, as well as long term

Barriers to TQM

A. Lack of trained workers/poorly installed equipment/poor

workmanship
B. Competitive markets
C. Poor plans and scheduling specifications/poorly defined
work scope
D. Bad attitudes
E. Lack of competent field managers

Benefits of TQM
A. Better defined project scope and objectives
B. Greater communication of objectives
C. Teamwork
D. Effective planning and scheduling
E. Appropriate Training
F. Improved quality of materials, equipment, and
workmanship

 THE END