The Total Quality Approach To Quality Management 245s4b

Chapter 1:

The Total Quality Approach to Quality Management

Objectives:

1.Learn what is Quality and Total Quality Approach. 2.Know the historic development of Total Quality 3.Examine the Key Elements of Total Quality 4.To know the Total Quality Pioneers

The Total Quality Approach to Quality Management “There are only three types of people: those who makes things happen, those who watch things happen, and those who say, „What happened?‟” -

Ann Landers

What is QUALITY? Definition of Quality of different people and different organization: • Fred Smith (CEO of FedEx): - performance to standard expected by the customer • GSA: - meeting the customer’s needs the first time every time. • Boeing: - providing our customers with products and services that consistently meet their needs and expectations. • U.S. Department of Defense (DOD): - doing the right thing right the first time.

Although no universally accepted definition of quality exist, common elements can be extracted: • Quality involves meeting or exceeding customer expectations

• Quality applies to products, services, people, processes and environment • Quality is an ever-change state

What is TOTAL QUALITY APPROACH?

Total quality is an approach to doing business that attempts to maximize the competitiveness of an organization through the continual improvement of the quality of its product, services, people, process, and environment.

Total Quality Approach: How it is achieved? The total quality approach has the following characteristics: 1. 2. 3. 4.

Strategically based Customer focused (internal/external) Obsession with quality Scientific approach to decision making and problem solving 5. Long-term commitment 6. Team Work 7. Continual process involvement 8. Education and training 9. Freedom through control 10.Unity of purpose 11. Employee empowerment

Historic Development of Total Quality

Total Quality Pioneers

People who contributed in meaningful ways to the development of the various concepts of total quality

W. Edward Deming Joseph M. Juran Philip B. Crosby

Total Quality Pioneers

1. W. Edwards Deming William Edwards Deming (October 14, 1900 - December 20, 1993) was an American statistician, college professor, author, lecturer, and consultant. Deming is widely credited with improving production in the United States during World War II, although he is perhaps best known for his work in Japan. There, from 1950 onward he taught top management how to improve design (and thus service), product quality, testing and sales (the latter through global markets). Deming made a significant contribution to Japan's becoming renowned for producing innovative high-quality products. Deming is regarded as having had more impact upon Japanese manufacturing and business than any other individual not of Japanese heritage

Total Quality Pioneers Deming Major Contribution to Quality 1. The Deming Cycle

The plan–do–check–act cycle is a fourstep model for carrying out change. Just as a circle has no end, the PDCA cycle should be repeated again and again for

continuous improvement.

1. The Deming Cycle

When to Use the PDCA

• As a model for continuous improvement. • When starting a new improvement project. • When developing a new or improved design of a process, product or service. • When defining a repetitive work process. • When planning data collection and analysis in order to and prioritize problems or root causes. • When implementing any change.

1. The Deming Cycle

Procedure Plan. Recognize an opportunity and plan a change. Do. Test the change. Carry out a small-scale study. Check. Review the test, analyze the results and identify what you’ve learned.

Act. Take action based on what you learned in the study step: If the change did not work, go through the cycle again with a different plan. If you were successful, incorporate what you learned from the test into wider changes. Use what you learned to plan new improvements, beginning the cycle again.

Deming Major Contribution to Quality 2. Deming’s 14 Points Deming offered fourteen key principles for management for transforming business effectiveness. In summary: 1. Create constancy of purpose for the improvement of product and service, with the aim to become competitive, stay in business, and provide jobs. 2. Adopt a new philosophy of cooperation (win-win) in which everybody wins and put it into practice by teaching it to employees, customers and suppliers. 3. Cease dependence on mass inspection to achieve quality. Instead, improve the process and build quality into the product in the first place. 4. End the practice of awarding business on the basis of price tag alone. Instead, minimize total cost in the long run. Move toward a single supplier for any one item, based on a longterm relationship of loyalty and trust. 5. Improve constantly, and forever, the system of production, service, planning, of any activity. This will improve quality and productivity and thus constantly decrease costs. 6. Institute training for skills. 7. Adopt and institute leadership for the management of people, recognizing their different abilities, capabilities, and aspiration. The aim of leadership should be to help people, machines, and gadgets do a better job. Leadership of management is in need of overhaul, as well as leadership of production workers.

Deming Major Contribution to Quality 8. Drive out fear and build trust so that everyone can work more effectively. 9. Break down barriers between departments. Abolish competition and build a win-win system of cooperation within the organization. People in research, design, sales, and production must work as a team to foresee problems of production and use that might be encountered with the product or service.

10. Eliminate slogans, exhortations, and targets asking for zero defects or new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force. 11. Eliminate numerical goals, numerical quotas and management by objectives. Substitute leadership. 12. Remove barriers that rob people of joy in their work. This will mean abolishing the annual rating or merit system that ranks people and creates competition and conflict.

13. Institute a vigorous program of education and self-improvement. 14. Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job.

Deming Major Contribution to Quality 3. Seven Deadly Diseases

1. Lack of constancy of purpose. 2. Emphasis on short-term profits. 3. Evaluation by performance, merit rating, or annual review of performance. 4. Mobility of management. 5. Running a company on visible figures alone. 6. Excessive medical costs. 7. Excessive costs of warranty, fueled by lawyers who work for contingency fees.

Deming philosophy synopsis The philosophy of W. Edwards Deming has been summarized as follows: "Dr. W. Edwards Deming taught that by adopting appropriate principles of management, organizations can increase quality and simultaneously reduce costs (by reducing waste, rework, staff attrition and litigation while increasing customer loyalty). The key is to practice continual improvement and think of manufacturing as a system, not as bits and pieces.“ In the 1970s, Dr. Deming's philosophy was summarized by some of his Japanese proponents with the following 'a'-versus-'b' comparison: (a) When people and organizations focus primarily on quality, quality defined by the following ratio:

, then quality tends to increase and costs fall over time. (b) However, when people and organizations focus primarily on cost, then costs tend to rise and quality declines over time.

Total Quality Pioneers

2. Joseph M. Juran Joseph Moses Juran (b. December 24, 1904) is an American industrial engineer and philanthropist. Juran is known as a business and industrial quality "guru," while making significant contributions to management theory, human resource management and consulting as well. He wrote several books, and is known worldwide as one of the most important 20th century thinkers in quality management.

Total Quality Pioneers Juran’s Major Contributions to Quality 1. Juran Basic Steps to Progress

1. Achieve structured improvements on a continual basis combined with dedication and a sense of urgency

2. Establish an extensive training program 3. Establish commitment and leadership on the part of higher management

Total Quality Pioneers Juran’s Major Contributions to Quality 2. Juran Ten Steps to Quality Improvement 1. Build awareness of the need and opportunity to improve 2. Set goals for that improvement 3. Create plans to reach the goals 4. Provide training 5. Conduct projects to solve problems 6. Report on progress

7. Give recognition for success 8. Communicate results 9. Keep score 10. Maintain momentum

Total Quality Pioneers Juran’s Major Contribution to Quality 3. The Pareto Principle According to this principle, organization should concentrate their energy on eliminating the vital few sources that cause the majority of problems.

This principle is sometimes called the 80/20 rule. 80% of the trouble comes from 20% of the problems. Named from the economist Vilfredo pareto.

Total Quality Pioneers Juran’s Major Contribution to Quality 4. The Juran Trilogy

Quality Planning involves developing the products, systems, and processes needed to meet or exceed customer expectations. 1. Determine who the customers are 2. Identify customer needs 3. Develop products with features that respond to customer needs. 4. Develop systems and processes that allow the organization to produce these features. 5. Deploy the plans to operational levels

Total Quality Pioneers Juran’s Major Contribution to Quality 4. The Juran Trilogy

Quality Control . The control of quality involves the following processes: 1. Assess actual quality performance

2. Compare performance with goals 3. Act on differences between performance and goals.

Total Quality Pioneers Juran’s Major Contribution to Quality 4. The Juran Trilogy Quality Improvement. The improvement of quality should be ongoing and continual. 1. Develop the infrastructure necessary to make annual quality improvements. 2. Identify specific areas in need of improvement, and implement improvement projects. 3. Establish a project team with responsibility for completing each improvement project 4. Provide teams with what they need to be able to diagnose problems to determine root causes, develop solutions, and establish controls that will maintain gains made.

Total Quality Pioneers

3. Philip B. Cosby (June 18, 1926–August 18, 2001) Philip b. Cosby is the youngster among the big three quality experts. His corporate background includes 14 years as director of ITT. He left ITT in 1979 to form Philip Cosby Associates, an international consulting firm on quality improvement, which he ran until 1992. Crosby, who defines quality simply as conformance, is best known for his advocacy of ZERO Defects management and prevention as opposed to statistically acceptable levels of quality.

Total Quality Pioneers

3. Philip B. Cosby (June 18, 1926–August 18, 2001) Crosby's response to the quality crisis was the principle of "doing it right the first time" (DRIFT).

He would also include four major principles. First, quality is "conformance to requirements, second, management system is prevention, third, the performance standard is zero defects , and the measurement system is the cost of quality.“ Crosby's prescription for quality improvement was a 14 step program. His belief was that a company that established a quality program will see savings that pays off the quality program and even more than expected. ("quality is free").

Total Quality Pioneers

3. Philip B. Cosby (June 18, 1926–August 18, 2001) Crosby's response to the quality crisis was the principle of "doing it right the first time" (DRIFT).

He would also include four major principles. First, quality is "conformance to requirements, second, management system is prevention, third, the performance standard is zero defects , and the measurement system is the cost of quality.“ Crosby's prescription for quality improvement was a 14 step program. His belief was that a company that established a quality program will see savings that pays off the quality program and even more than expected. ("quality is free").

Total Quality Pioneers Cosby’s Major Contribution to Quality 1. Crosby’s Quality Vaccine:

1. Determination 2. Education 3. Implementation

Total Quality Pioneers Cosby’s Major Contribution to Quality 2. Crosby’s 14 Steps to Quality Improvement:

1. Make it clear that management is committed to quality for the long term 2. Form cross-departmental quality teams 3. Identify where current and potential problem exist 4. Assess the cost of quality and explain how it is used as a management tool 5. Increase the quality awareness and personal commitment of all employees 6. Take immediate action to correct problems identified 7. Establish a zero defect program

Total Quality Pioneers Cosby’s Major Contribution to Quality 2. Crosby’s 14 Steps to Quality Improvement: 8. Train supervisors to carry out their responsibilities in the quality program 9. Hold a Zero Defects Day to ensure all employees are aware there is a new direction 10. Encourage individuals and teams to establish both personal and team improvement goals

11. Encourage employees to tell management about obstacles they face in trying to meet quality goals 12. Recognize employees who participate 13. Implement quality councils to promote continual communication 14. Repeat everything to illustrate that quality improvement is a neverending process.