SESSION 6

TOTAL QUALITY MANAGEMENT

By: ZAHID HUSSAIN
M Phil: Total Quality Management B. Sc Engineering (Chemical) Quality Trainer Lead Auditor 5-S IRCA Lead Auditor ISO-9001-2000 IRCA Lead Auditor ISO-14000-2004 IRCA Lead Auditor OHSAS 18000-2007

Leaders in Quality Revolution

Dr Walter A Shewhart (Statistical Process Control) (1891-1967- 76 years age) PhD in Physics USA Dr. Kaoru Ishikawa Simple tools, QCC, Companywide quality) (1915-1989)

Age-74, Japan, Mechanical Engineer

Dr. Edward W. Deming (Management Philosophy and Systems) (1900-1993) Dr. Genichi Taguchi (Loss Function), 1924- 1989

The Statistician USA

Dr. Joseph M. Juran (Quality Trilogy)

65 years, Japan, Textile Engineer

Mr. Philip Crosby Zero defects and Cost of quality) (1926 -2001)

(1904-2008 -103 years age)- USAindustrial engineer

Age 75) USA.

Dr. Feigenbaum PhD Economics (First line supervision leadership, Company wide quality control, (1944 -

1993) Age 49) USA.

Dr. Edward Deming

(Management Philosophy and systems)

(How complex organizations work, Long-term improvements in quality and efficiency)

Prophet of the Quality (According to Japanese) Non Faulty System Continual Improvement (PDCA Cycle) System of Profound Knowledge Appreciation for a system Understanding Variation Theory of Knowledge Knowledge of Psychology

( ideas to improve products or processes based on current knowledge and theories.

theories can be wrong so we must actively check to find out if they are correct. PDCA)

( Study of the human mind, including how people act and interact in different situations )

Three Levels of Quality

Organizational Level
Meeting external customer requirements

Process Level
Linking external & internal customer requirements

Performer Level
Meeting internal customer requirements

Deming Chain Reaction

Improve Quality
Cost Decrease Productivity Improves

Increase Market Share with Better and Lower Price

Stay in Business Provide jobs and more jobs

Quality & Profitability

Improve Quality of Design Improve Quality of Conformance

Higher Perceived Value

Higher Price Lower Manufacturing and Service Cost Increase Revenue

Increase Market Share

Higher Profitability

DEMING: 14 Points
1. MANAGEMENT COMMITMENT: Create constancy of purpose towards improvement of product and service, with the aim to become competitive, stay in business, and to provide jobs.
Constancy of purpose means: innovate -- spend resources for long term planning vs. quick profits Invest in research and education No innovation without research, and no research without training & education Continuous improvement of the right products (and/or the right type of service) in the right market Invest in maintenance -- malfunctions in machinery, process, and tools introduce defects only top management can establish the constancy of purpose Make policy ,establish a set of core values ,adopt and publish the mission Leadership, fire prevention vs. fire fighting, do long term planning where do we want to be in certain future period from now? by which method? And provide a road map for the organization to follow

DEMING: 14 Points
2. LEARN THE NEW PHILOSOPHY: Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change. Customer-centric , Looks after the need of the customers,

Don't accept poor quality, poor workmanship,

Negativism is unacceptable, Set a pattern of continuing improvement

Use measurement, recognize the economic loss for any deviation from target value
Customers don't often complain, they just switch Management must face the challenge, must learn their responsibilities, and

give the leadership for change

DEMING: 14 Points
3. UNDERSTAND INSPECTION: Cease (Stop) dependence on inspection
to achieve quality. Eliminate the need for inspection on a mass basis by creating quality into the product in the first place.

inspection is used because experience has indicated a high error rate for the underlying processes. If the error rate is reduced sufficiently, it will no longer be necessary to inspect every action. Unfortunately, when error rates increases, trained workers and management is to spend more time checking for errors instead of attempting to improve the underlying processes: 4. END PRICE TAG DECISIONS: End the practice of awarding business
on the basis of price tag. Instead minimize total cost. Move towards a single supplier for any one item, on a long term relationship of loyalty and trust.

5. IMPROVE CONSTANTLY: Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs.
6. IMPROVE JOB SKILLS: Institute training on the job. (Training manuals and

DEMING: 14 Points
7. INSTITUTE LEADERSHIP: The aim of supervision should be to help people and
machines and gadgets to do a better job. Supervision of management is in need of overhaul as well as supervision of production workers.

strategic vision, a leader to accomplish transformation in the organization. He possesses knowledge, personality, and persuasive power, a coach who removes obstacles, Leaders must know the work that they supervise, "Follow me" should help people, machines and gadgets to do a better job, provide training or instruction; never stop learning not afraid of the responsibility, listen and learn without passing judgment Engages in informal, unplanned conversation with every team member at least once a year to listen and understand their aims, hopes, and fears
Supervisor Says. ---"keep quiet" about problems. Managers resolve conflict either through coercion or compromise. Leader gets conflict out into the open so that differences can be addressed and win-win solutions can be pursued in place of win-lose decisions.

DEMING: 14 Points
8. DRIVE OUT FEAR: Drive out fear, so that everyone may work effectively for the company Fear will cause people to play defense. Fear will inhibit them from sharing with management a real view and will make them unwilling to risk new ideas. Continuous improvement need accurate data, If afraid workers will see the bad consequences of providing accurate data,

9. OPTIMIZE TEAM EFFORTS: Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee (predict) problems of production and in use that may be encountered with the product or service.

10. ELIMINATE SLOGANS: Deming attacks, without naming it, Crosby's

Zero Defects Program.--system causes errors not workers
Eliminate slogans, exhortations, and targets for the work force that ask for zero defects and new levels of productivity. - true change requires deep management commitment, not superficial slogans [let people create their own slogans, if they want them] - slogans are no substitute for training or knowledge

DEMING: 14 Points
11. EMLIMINATES NUMERICAL QUOTAS & GOALS (Controversial) quotas take accountability of numbers, not quality or methods -- the responsibility of supervisors must be changed from sheer numbers to quality, quotas, such as "measured day work" or "rates" can cause high cost of quality. Quality is compromised to meet quota, the result is loss, dissatisfaction, and turnover.

12 REMOVE BARRIERS TO PRIDE IN WORKMANSHIP: a). Remove barriers that rob the hourly worker of his right to joy of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality. b). Remove barriers that rob people in management and in engineering of their right to joy of workmanship. This means abolishment of the annual merit rating 13. INSTITUTE EDUCATION: Institute a vigorous (forceful) program of education and self-improvement. 14. TAKE ACTION: Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job.

DEMING: 7 Deadly Diseases

Lack of constancy of purpose Emphasis on short term profit Evaluation by performance rating, Merit rating, or annual performance review Mobility of Management Running a company only on visible data Excessive Medical Cost Excessive Cost of Warranty

QUESTIONS