CHAPTER FIVE

TQM Tools and the Improvement Cycle

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 5.1. Measurement of quality

• Quality relates to so many things.

• Fundamentally, quality is about how good something

is.

• even more specifically, it’s about how good something

is relative to how good it should be.

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 5.1. Measurement of quality

• it can be useful to measure the quality of all kinds of

things we work on, like these:
Data quality e.g. financial data or performance data or HR
data
Product quality
Service quality (or customer experience)
Software quality e.g. a meditation app or KPI dashboard app
Process quality e.g. technical support process or delivery
process or manufacturing process

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 The Quality of Measuring Instruments: Definitions

• Reliability: Consistency - the extent to which the data

are consistent

• Validity: Accuracy- the extent to which the instrument

measures what it purports to measure

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 The Questions of Reliability
• To what degree does a subject’s measured performance remain
consistent across repeated testing ?

• How consistently will results be reproduced if we measure the

same individuals again?

• What is the equivalence of results of two measurement occasions

using “parallel” tests?

• To what extent do the individual items that go together to make up

a test or inventory consistently measure the same underlying
characteristic?

• How much consistency exists among the ratings provided by a

group of raters?

• When we have obtained a score, how precise is it?

5.2. Costs of quality
 Manufacturing a quality product, providing a quality service, or
doing a quality job is not enough.

 The cost of achieving these goals must be carefully managed, so

that the long-term effect of quality costs on business or
organization is a desirable one.

 A competitive product or service based on balance between

quality and cost factor is the principal goal of responsible
management.

 The objective is best accomplished with the aid of competent

analysis of the costs of quality (COQ).

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Costs of quality
• The analysis of quality related costs is a significant
management tool that provides:

• A method of assessing the effectiveness of the management

of quality.

• A mean of determining problems areas, opportunities,

savings, and action priorities.

• The costs of quality are no different from any other costs.

• The necessary activities will incur costs that may be

separated into prevention costs, appraisal costs and failure
costs, the so called P-A-F model first presented by
Feigenbaum.
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 Prevention costs

 These are associated with the design,

implementation and maintenance of the total
quality management system.

 Prevention costs are planned and are incurred

before actual operation. Prevention includes:

 Quality planning
 Quality assurance
 Inspection equipment
 Training
 Miscellaneous
 Resources devoted to prevention give rise to the
‘costs of doing it right the first time’.
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Appraisal costs
• These costs are associated with the supplier’s and
customer’s evaluation of purchased materials,
processes, intermediates, products and services to
assure conformance with the specified requirements.
Appraisal includes:
• Verification
• Quality audits
• Inspection equipment
• Vendor rating
• Appraisal activities result in the ‘costs of checking it
is right’.

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Internal failure costs
• These costs occur when the results of work fail to
reach designed quality standards and are detected
before transfer to the customer takes place. Internal
failure includes the following:
• Waste
• Scrap
• Rework of rectification
• Re-inspection
• Downgrading
• Failure analysis

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External failure costs
• These costs occur when products or services fail to
reach design quality standards but are not detected
until after transfer to the consumer. External failure
includes:
• Repair and servicing
• Warranty claims
• Complaints
• Returns
• Liability
• Loss of goodwill
• External and internal failure produce the ‘costs of
getting it wrong’.

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 External failure costs
• Every organization must be aware of the costs of
getting it wrong, and management needs to obtain
some idea how much failure is costing each year.

• There is an important relationship between the

quality related costs of prevention, appraisal, and
failure and increasing quality awareness and
improvement the organization.

• Where the quality awareness is low the total quality

related costs are high, the failure costs
predominating.
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5.3. Tools and techniques for quality improvement

Process flowcharting
• To ensure a full understanding of the inputs and flow of the
process.

• The process chart lists every step that is involved in the

manufacturing of a product or the delivery of a service.

• It is a good idea to draw the process chart using the standard

symbols because this aids clarity.

• A flow chart is similar to process chart and is often used when

there are decisions involved.

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• Certain standard symbols are used in the flowcharting:

End
Start

Process step
(operation) Decisio
n

Information Paperwork
block

Flow
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Start/
Finish Operation Operation Decision Operation

Operation Operation

Decision Start/
Finish

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Process mapping symbols

Process Store

Move Inspect

Delay Decision

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Check sheets or tally charts

• It is particularly useful for recording direct observations and

helping to gather in facts rather than opinions about the
process.

• The use of simple check sheets or tally charts aids the

collection of data of the right type, in the right form, at the
right time.

• The objectives of the data collection will determine the

design of the record sheet used.

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Histograms

• Histograms show, in a very clear pictorial way, the

frequency with which a certain value or group of
values occurs.

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15

10

0
1 2 6 13 10 16 19 17 12 16 2017 13 5 6 2 1

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Scatter diagrams

• It is frequently useful to establish the association, if any,

between two parameters or factors.

X
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Pareto analysis
• If symptoms or causes of defective output or some other
'effect' are identified and recorded, it will be possible to
determine what percentage can be attributed to any cause,
and the probable results will be that the bulk (typically 80 per
cent) of errors, waste, or 'effects' derive from a few of the
causes (typically 20 per cent).

• Pareto analysis begins by ranking problems from highest to

lowest.

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Pareto analysis example

NUMBER OF
CAUSE DEFECTS PERCENTAGE

Poor design 80 64 %
Wrong part dimensions 16 13
Defective parts 12 10
Incorrect machine calibration 7 6
Operator errors 4 3
Defective material 3 2
Surface abrasions 3 2
125 100 %

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 Percent from each cause

10
20
30
40
50
60
70

0
Po
or
W De
ro s ig
ng n
(64)

di
m
en
De sio
fe ns
ct
(13)
ive
pa
M rt s
ac
hi
ne
(10)
ca
li b
O ra
pe t io
ra ns
to
(6)

re
• Pareto analysis example (continued)

r ro
D rs
ef
ec
(3)

tiv

Causes of poor quality

e
m
Su at
er
r fa ia
ce ls
(2)

ab
ra
si
on
s
(2)

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Cause and effect analysis and brainstorming

• Brainstorming is a technique used to generate a large number of

ideas quickly, and may be used in a variety of situations.

• Cause and effect diagram, also known as the "Ishikawa diagram

" diagram and the "fishbone" diagram, is used to brainstorm out
possible contributing causes of a particular problem or defect.

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 • The Ishikawa diagram example

people machines
changes

data entry maintenance

scheduling
LATE
unclear Wrong parts DELIVERY
requirements supplied

methods materials

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 Control charts

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 5.4. Statistical process control (SPC)
• The responsibility for quality in any transformation
process must lie with the operators of that process.

• To fulfill this responsibility, however, people must be

provided with the tools necessary to:
Know whether the process is capable of meeting the
requirements.
Know whether the process is meeting the
requirements at any point in time.
Make correct adjustment to the process or its inputs
when it is not meeting the requirements.
The techniques of statistical process control (SPC) will
greatly assist in these stages.
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 Statistical process control (SPC) cont.
• To begin to monitor and analyze any process, it is necessary
first of all to identify what the process is, and what the inputs
and outputs are.

• In many situations it can be extremely difficult to define the

process.

• Once the process is specified, the inputs and suppliers,

outputs and customers can also be defined, together with the
requirements at each of the interfaces.

• Prevention of failure in any transformation is possible only if

the process definition, flow, inputs, and outputs are properly
documented and agreed.

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 Statistical process control (SPC)
• The documentation of procedures will allow reliable data
about the process itself to be collected, analysis to be
performed, and action to be taken to improve the process and
prevent failure or non-conformance with the requirements.

• SPC methods, backed by management commitment and good

organization, provide objective means of controlling quality
in any transformation process, whether used in the
manufacture of artefacts, the provision of services, or the
transfer of information.

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Statistical process control (SPC) cont.

• SPC is not only a toolkit, it is a strategy for reducing

variability, the cause of most quality problems:
variation in products, in times of deliveries, in ways
of doing things, in materials, in people's attitudes, in
equipment and its use, in maintenance practices, in
every thing.

• Total quality management requires that the

processes should be improved continually by
reducing variability.

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Statistical process control (SPC)
• It is worth repeating that SPC is not only about plotting charts
on the walls of a plant or office, it must become part of the
company-wide adoption of TQM and act as the focal point of
never-ending improvement.
The SPC system
A systematic study of any process though answering the
questions:
Are we capable of doing the job correctly?
Do we continue to do the job correctly?
Have we done the job correctly?
Could we do the job more consistently and on target?

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 Statistical process control (SPC)
• SPC techniques may be used to measure and control
the degree of variation of any purchased materials,
services, processes, and products, and to compare
this, if required, to previously agreed specifications.

• In essence, SPC techniques select a representative,

simple, random sample from the 'population', which
can be an input to or an output from a process.

• From an analysis of the sample it is possible to make

decisions regarding the current performance of the
process.

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 Quality improvement techniques in service
industries

• Organizations that embrace the TQM concepts should

recognize the value of SPC techniques in areas such as sales,
purchasing, invoicing, finance, distribution, training, and in
the service sector generally.

• Theses are outside the traditional areas for SPC use, but SPC
needs to be seen as an organization-wide approach to
reducing variation with the specific techniques integrated
into a program of change throughout.

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5.5. Quality improvement techniques in service
industries

• Some of the most exciting applications of SPC have emerged

from organizations and departments which, when first
introduced to the methods, could see little relevance in them
to their own activities. Following appropriate training,
however, they have learned how to, for example:
Pareto analyze errors on invoices to customers.
Brainstorm and cause and effect analyze reasons for late
payment.
Histogram defects in invoice matching and arrival of trucks
at certain times during the day.
Control chart the weekly demand of a product.

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 Quality improvement techniques in service
industries
• Distribution staff have used control charts to monitor the
proportion of late deliveries, and Pareto analyses to look at
complaints about the distribution system.

• Those organizations that have made most progress in

implementing continuous improvement have recognized at
an early stage that SPC is for the whole organization.

• Applying the methods and techniques outside manufacturing

will make it easier, not harder, to gain maximum benefit
from an SPC program.

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Quality improvement techniques in service
industries
• Sales, marketing and customer-service are areas often
resistant to SPC training on the basis that it is difficult to
apply.
• Personnel in these vital functions need to be educated in
SPC methods for two reasons:
1. They need to understand the way the manufacturing or
service producing processes in their organizations work.
2. They will be able to improve the marketing processes and
activities.
• SPC has considerable applications for non-manufacturing
organizations, including universities, hospitals,
schools……

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Adding the tools to the TQM model

• Having looked at some of the many tools and techniques of

measurement and improvement, we see that the generic term
‘tools’ may be added, as the second hard management
necessity, to the TQM model.

• The systems manage the processes, and the tools are used to
progress further round the improvement cycle by creating
better customer-supplier relationships, both externally and
internally.

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Thank You For your
Attention!