prelim

• Total Quality Management (TQM)


  The continual process of detecting and reducing or eliminating errors in manufacturing, streamlining supply chain management, improving the customer experience, and ensuring that employees are up to speed with training. It aims to hold all parties involved in the production process accountable for the overall quality of the final product or service
• Understanding Total Quality Management (TQM)


  A structured approach to overall organizational management focusing on improving the quality of an organization's outputs, including goods and services, through the continual improvement of internal practices
• Primary Principles of Total Quality Management

  • Customer-focused process consistently improving business operations
  • Ensuring all associated employees work toward improving product or service quality and procedures
  • Fact-based decision making using performance metrics
  • High levels of organizational communication encouraged for maintaining employee involvement and morale
• Industries Using Total Quality Management

  • Manufacturing
  • Banking and finance
  • Medicine
• What Does Total Quality Management Do?

  1. Determining a quality policy

  2. Creating and implementing quality planning and assurance

  3. Quality control and quality improvement measures
• Example of TQM in Practice

  • Toyota's implementation of the Kanban system for just-in-time (JIT) inventory process
• Key Principles of TQM

  • Customer focus: Quality is determined by the customer
  • Employee involvement: Every person in an organization has a responsibility for the quality of products and services
• Employee involvement

  1. Every person in an organization has a responsibility for the quality of products and services

  2. Employees need to feel empowered to make their own decisions for investment
• Centered on process

  • A TQM system requires a clear focus on processes and process-led thinking
  • Effective monitoring of every step is essential for assessing, maintaining, and improving quality
• Integrated system


  • An organization should have an integrated system for effective total quality management
  • The system should be understood and applied across all functions and departments
• Strategic & systematic approach

  • A strategic plan outlining how an organization intends to achieve its mission and business goals is critical
  • Quality should be a core component of the strategic plan
• Decision-making based on facts


  • Business performance assessment should be based on facts such as sales data, revenue figures, and customer retention rates
  • Opinions of customers, employers, and suppliers should not inform decisions
• Communication


  • Effective communication is essential during significant changes for business improvement
  • All staff should be made aware of the strategy, timescales, and reasons for implementation
• Continuous improvement


  • Applying DMAIC and Lean Six Sigma principles instills a culture of continuous improvement
  • Employees are driven to constantly seek new ways to be more competitive and deliver high-quality products
• The quality department in many companies is only responsible for the quality of products, with its focus typically limited to the supply chain
• In recent years, the role of the quality department and function is carried out by all departments in a TQM system
• Managing quality in a TQM system ensures moving from a product focus to enterprise-focus thinking
• Other benefits of TQM

  • Reduce risk and mitigate risk when designing new products and processes
  • Resolve problems before and during operations
  • Improve supplier performance
  • Control processes to avoid risk when scaling up
  • Increase productivity for all employees
  • Reduce the total cost of quality, not just the costs of poor quality products
• TQM IMPLEMENTATION AND SYSTEMS

  1. There is no one solution for every situation or workplace when planning and implementing a total quality management system

  2. Each organization is unique in terms of culture, management practices, and processes used
• GENERIC STRATEGY MODEL FOR IMPLEMENTING TQM SYSTEMS

  1. Top management commits to TQM as one of the organization's strategies

  2. The organization assesses current culture, customer satisfaction, and quality management systems

  3. Core values and principles are identified and communicated

  4. A TQM master plan is developed

  5. Customer demands are identified and products/services aligned to meet them

  6. Critical processes are mapped to meet customer needs

  7. Teams for process improvement are formed

  8. TQM effort momentum is managed by the steering committee

  9. Managers contribute through hoshin planning, training, coaching, etc.

  10. Daily process management and standardization occur

  11. Progress is evaluated and the plan revised as needed

  12. Constant employee awareness and feedback are provided with a reward/recognition process
• SIX-SIGMA


  • Six-Sigma is a newer concept than Total Quality Management but not its replacement
  • TQM delivers superior quality manufactured goods
• Total Quality Management System Strategies


  • Six-Sigma
  • Lean Manufacturing
  • MBNQA
  • ISO 9001
  • Strategy 1: The TQM element approach
  • Strategy 2: The guru approach
  • Strategy 3: The organization model approach
  • Strategy 4: The Japanese total quality approach
  • Strategy 5: The award criteria approach
• Six-Sigma

  • Relatively newer concept than Total Quality Management
  • Results in better results compared to TQM
  • Incorporates many small changes in systems for effective results and better customer satisfaction
• Lean Manufacturing


  • Focuses on minimizing waste within manufacturing systems while maximizing productivity
  • Benefits include reduced lead times, reduced operating costs, and improved product quality
• MBNQA

  • Established by the U.S. Congress in 1987 to raise awareness of quality management
  • Recognizes U.S. companies with successful quality management systems
• ISO 9001


  • Sets out steps necessary to adopt a quality management system
  • Designed to help organizations meet the needs and expectations of customers and other interested parties
• Strategy 1: The TQM element approach

  Takes key business processes and/or organizational units and uses TQM tools to foster improvements
• Strategy 2: The guru approach


  Uses teachings and writings of leading quality thinkers to determine deficiencies and make appropriate changes
• Strategy 3: The organization model approach

  Visits successful TQM organizations to develop an organizational model adapted for their specific organization
• Strategy 4: The Japanese total quality approach


  Examines implementation techniques and strategies of Deming Prize-winning companies to develop a long-range master plan
• Strategy 5: The award criteria approach


  Uses quality award criteria to identify areas for improvement and focuses on meeting specific award criteria
• History of Total Quality Management began as a term coined by the Naval Air Systems Command to describe its Japanese-style management approach to quality improvement
• The history of total quality management (TQM) began initially as a term coined by the Naval Air Systems Command to describe its Japanese-style management approach to quality improvement
• Principles and practices of TQM draw on knowledge of

  • The behavioral sciences
  • The analysis of quantitative and nonquantitative data
  • Economics theories
  • Process analysis
• Some of the first seeds of quality management were planted as the principles of scientific management swept through U.S. industry


  1920s
• Businesses clearly separated the processes of planning and carrying out the plan, and union opposition arose as workers were deprived of a voice in the conditions and functions of their work
• The Hawthorne experiments in the late 1920s showed how worker productivity could be impacted by participation
• Walter Shewhart developed the methods for statistical analysis and control of quality


  1930s
• W. Edwards Deming taught methods for statistical analysis and control of quality to Japanese engineers and executives. This can be considered the origin of TQM


  1950s
• Joseph M. Juran taught the concepts of controlling quality and managerial breakthrough


  1950s