TQM and Continuous

Improvement
1. Signs of Un-quality
2. Quality Defined
3. Implications of Quality
4. The Malcom Baldrige Quality
Award
5. International Quality Standards
6. TQM Defined
7. Traditional vs. TQM Culture
8. Components of TQM
 Signs of Un-Quality
Process
Time
Increases

Experienced
Micro-
Workers
Management
Leave

Customer
Number of
Complaints
Meetings
Increase
Increases
 Quality. . .

. . . is a dynamic state associated

with products, services, people,
processes, and environments that
meet or exceed current
expectations.
Further Definitions
User-based
Manufacturing-based
Product-based
Implications of
Quality
 Baldrige Award Criteria Framework
Goal
System
•Customer
Management Satisfaction
“Driver”
of Process •Customer
Quality Customer satisfaction
Focus and relative to
Human Satisfaction competitors
Senior Resource •Market Share
Executive Development
Leadership and Measures of
Management Quality and Progress
Operational
Strategic Results
Quality •Product and
Planning service quality
•Internal quality
and productivity
Information •Supplier quality
and Analysis
 Baldrige Award Winners
Motorola’s quality control problems:
۰poorly designed assemblies
۰incorrect parts ordered or
shipped by suppliers
۰defective or damaged parts
from suppliers
۰machinery incapable of
operating within control limits
۰insufficient training
 Baldrige Award Winners
Leadership through quality was a long-term
process meant to change the way our people
worked and managed so they could
continuously improve the way they met the
requirements of the customers.
The Baldrige process is valuable because it
forces you to look at your company the way
the customer sees it - not the way you think
it is.
Xerox
 Baldrige Award Winners
Eight great benefits Baldrige has brought:
1. More aggressive, strategic goal setting.
2. Enhanced quality awareness.
3. Improved customer awareness.
4. Better benchmarking.
5. Development of new, quality-driven operations.
6. Improved supplier management.
7. Stronger employee participation and recognition.
8. Problem-solving through teambuilding.
 International
Quality Standards
ISO 9000
ISO 14000
 TQM: A Definition
TQM is a team-based cooperative
form of doing business that relies
on talents and capabilities to
continually improve quality and
productivity.
 Two Key
Philosophies:
۰Continuous Improvement
۰Customer Satisfaction
 Traditional vs. TQM Culture
Aspect Traditional TQM
Mission Maximize ROI Customer Satisfaction
Short term, Long and short term,
Inconsistent consistent

Open, encourages
Management Not always open
employee input

Issue orders, Coach, remove barriers,

enforce build trust

Customer Not highest priority, Highest priority,

Requirements may be unclear identify and understand
 Traditional vs. TQM (cont.)
Aspect Traditional TQM
Assign blame, Identify and
Problems
punish resolve

Not systematic, Systematic,

individuals teams

Improvement Erratic Continual

Adversarial Partners
Narrow, Broad, more
Jobs
specialized general

Focus Product Process

 Components of
TQM
Continuous improvement
 Ten Commandments of
Continuous Improvement
1. Put the customer first.
2. Innovate constantly.
3. Design quality into products
and services.
4. Improve everything, continually.
5. Create and support a safe and
open work environment.
 Ten Commandments of CI
(cont.)
6. Do not shoot the messenger.
7. Stop imitating the Japanese.
8. Use time wisely.
9. Do not sacrifice long-term
improvements for short-term profits.
10. Quality is not enough.
 Continuous
Improvement:
Components of
TQM
Components of
TQM
 Benchmarking
۰What Organization Does It the Best?
۰How Do They Do It?
۰How Do We Do It Now?
۰How Can We Change to Match
or Exceed the Best?
 Components of
TQM
Continuous improvement

Competitive benchmarking

 Components of
TQM
Continuous improvement
Employee empowerment
Competitive benchmarking


 Components of
TQM
Continuous improvement
Employee empowerment
Competitive benchmarking



 Tools of TQM
Check sheets
Scatter diagrams
Cause-and-effect diagrams
Pareto charts
Flow charts
Histograms
Statistical process control