CHAPTER 1: TQM EVOLUTION

Page 2
The Importance of Quality: The Japanese Chain Reaction
Improve Quality
Costs decreases due to fewer defects,
Lesser rework, fewer delays and better use
Of Men, Machine and Materials
Improve Productivity
Capture market with better quality
and lower price
Stay in business
Provide more jobs
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The century of Quality
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Page 4
History of quality management
To know the future, know the past!
1900-MANPOWER PREDOMI NANCE
Before Industrial Revolution, skilled craftsmen
served both as manufacturers and inspectors,
building quality into their products through their
considerable pride in their workmanship.
Industrial Revolution changed this basic concept
to interchangeable parts. Likes of ;
F. W. Taylor (scientific management fame)
emphasized on the use of scientific standards
equitably to managers as well as workers.
Page 5
Industrial Revolution

mass production
unit verification
defective product

Taylor's conception of work

Measurement, comparison and
verification activities

Focus on the quantity produced


1920 - Inspection
Page 6
Sampling inspection
Use of statistical tools
First concerns regarding
prevention:
identification of causes for
defective products
Focus on the finished product

1930 Statistical Control


Late 1930s

Quality standards and approaches are introduced in France and Japan
It is the beginning of SQC , Reliability and Maintenance Engineering
Page 7
Seven Basic Quality Tools:
Flowcharts and Process Maps
Check lists
Cause-effect diagrams
Pareto diagrams
Histograms
Scatter diagrams
Control charts



1930 Statistical Control
Page 8 8
History of quality management
Statistical approaches to quality control started at
Western Electric with the separation of inspection
division. Pioneers like Dr. Walter Shewhart, Deming
W.Edwards and Joseph M. Juran were all
employees of Western Electric.
Dr. Walter Shewart (1891-1967) developed the Plan, Do,
Check Act (PDCA) cycle for continuous improvement which is
in use even today
After World War II, under General MacArthur's Japan
rebuilding plan, Deming and Juran went to Japan.
- Deming W, Edwards (1900-1993) modified PDCA cycle of
Shewart to the Plan, Do, Study and Act (PDSA). He also
advocated the extensive used of statistical quality control theory
to Japanese industry along with Juran.
Page 9
History of quality management

Deming stressed the importance of suppliers and
customers for the business development and
improvement.
He believed that people do their best and it is the system
that must change to improve quality.
His 14 Points for Management formed the basis for his
advise to top Japanese management.

Page 10
W. EDWARDS DEMINGS 14 POINTS
Create constancy of purpose towards improvement
of product and services.
Adopt the new philosophy. We can no longer live
with commonly accepted levels of delays,
mistakes, defective workmanship.
Cease dependence on mass inspection. Require,
instead, statistical evidence that quality is built in.
End the practice of awarding business on the basis
of price tag.
1)
2)
3)
4)
Page 11
W. Edwards Demings 14 Points
Find problems. It is managements job to work
continually on the system.
Institute modern methods of training on the job.
Institute modern methods of supervision of
production workers. The responsibility of foremen
must be changed from numbers to quality.
Drive out fear that everyone may work effectively
for the company.
5)
6)
7)
8)
Page 12
Break down barriers between departments.
Eliminate numerical goals, posters and slogans for
the workforce asking for new levels of productivity
without providing methods.
Eliminate work standards that prescribe numerical
quotas.
Remove barriers that stand between the hourly
worker and his right to pride of workmanship.
9)
10)
11)
12)
W. Edwards Demings 14 Points
Page 13
Institute a vigorous programme of education and
retraining.
Create a structure in top management that will
push everyday on the above 13 points.
13)
14)
W. Edwards Demings 14 Points
Page 14
PLAN
CHECK
DO ACT
The Deming Cycle or PDCA Cycle
Plan a change to the process. Predict
the effect this change will have and
plan how the effects will be measured
Implement the change
on a small scale and
measure the effects
Adopt the change as a
permanent modification
to the process, or
abandon it.
Study the results to
learn what effect the
change had, if any.
Page 15
History of quality management
Joseph M. Juran (1904), developed the Statistical
Quality Handbook for Western Electric Company. He
identified Fitness of quality and popularized the
same
Juran travelled to Japan to teach is own theories- that
hands-on management was necessary at all levels of
corporation to ensure quality control and that
problems are opportunities to make improvements.
His approach is still known today as the Juran Trilogy;
quality planning, quality control and quality improvement


Page 16
History of quality management
In Japan the following individual took seed from this
training and went on to developed their own major
contributions to what is now Total Quality
Management:

Kaoru Ishikawa (1915-1989), strongly advocated
the use of cause and effect diagram to provide a
true representation of the organizational impact and
procedures. He developed Fishbone or Ishikawa
diagram for cause and effect analyis.
Taichi Ohno, known as the father of just-inTime
production. He is also the co-creator of Toyota
Production System (TPS)
Page 17
History of quality management


Shigeo Shingo worked with Ohno on the TPS
process and developed some of its popular concepts
including poka-yoke (which means mistake-proof in
Japanese and refers to taking human judgement out of
some types of production, thereby minimizing human
errors)
Page 18
History of quality management
Next 20 odd years, when top managers in USA
focused on marketing, production quantity and
financial performance, Japanese managers
improved quality at an unprecedented rate.
Market started preferring Japanese products and
American companies suffered immensely.
America woke up to the quality revolution in early
1980s. Ford Motor Company consulted Dr.
Deming to help transform its operations.
(By then, 80-year-old Deming was virtually unknown
in USA. Whereas Japanese government had
instituted The Deming Prize for Quality in 1950.)
Page 19
History of quality management
Managers started to realize that quality of
management is more important than
management of quality. Birth of the term Total
Quality Management (TQM).
TQM Integration of quality principles into
organizations management systems.
Early 1990s: Quality management principles
started finding their way in service industry. FedEx,
The Ritz-Carton Hotel Company were the quality
leaders.
TQM recognized worldwide: Countries like
Korea, India, Spain and Brazil are mounting efforts
to increase quality awareness.
Page 20
The Deming 14 Point Philosophy
The Deming Philosophy
Definition of quality, A product or a service possesses quality if it helps
somebody and enjoys a good and sustainable market.

Improve quality
Decrease cost because
of less rework, fewer
mistakes.
Productivity improves
Capture the market
with better quality
and reduced cost.
Stay in
business
Long-term
competitive
strength
Page 21
Demings 14 Point Management

1. Create and publish to all employees a statement
of the aims and purposes of the company. The
management must demonstrate their commitment
to this statement.
2. Learn the new philosophy.
3. Understand the purpose of inspection to
reduce the cost and improve the processes.
4. End the practice of awarding business on the
basis of price tag alone.
5. Improve constantly and forever the system of
production and service.

Page 22
6. Institute training
7. Teach and institute leadership.
8. Drive out fear. Create an environment of innovation.
9. Optimize the team efforts towards the aims and
purposes of the company.
10. Eliminate exhortations for the workforce.
11. Eliminate numerical quotas for production.
12. Remove the barriers that rob pride of workmanship.
13. Encourage learning and self-improvement.
14. Take action to accomplish the transformation.
Page 23
Quality Trilogy
1. Quality planning: Process of preparing to meet
quality goals. Involves understanding customer
needs and developing product features.
2. Quality control: Process of meeting quality
goals during operations. Control parameters.
Measuring the deviation and taking action.
3. Quality improvement: Process for breaking
through to unprecedented levels of
performance. Identify areas of improvement and
get the right people to bring about the change.
Jurans Quality Trilogy
Page 24
Quality Trilogy
1. Quality planning: Process of preparing to meet
quality goals. Involves understanding customer
needs and developing product features.
2. Quality control: Process of meeting quality
goals during operations. Control parameters.
Measuring the deviation and taking action.
3. Quality improvement: Process for breaking
through to unprecedented levels of
performance. Identify areas of improvement and
get the right people to bring about the change.
Jurans Quality Trilogy
Page 25
1. Balance Scorecard Robert Kaplan and David
Norton, suggest that a businesss executive team
measure progress in four areas that are equally
important
knowledge
financial performance
Internal business process and
Learning/growth
Using the knowledge to focus the entire organization and its
various programs on balancing the scorecard

Major Quality Concepts
Page 26
2. ISO Standards - The International Standardization
Organization (ISO).
- headquartered in Switzerland
- more than 100 nations are members, that define
and agree on, and abide by a wide rang of product
and process safety and quality standards
- the idea behind ISO certification is that products
made in different nations be compatible for use in
others.
- this allows manufacturers to buy parts from
suppliers in other countries.


Major Quality Concepts
Page 27
- The Quality Management Systems (QMS)
standards are know as ISO 9000 family of
standards; (ISO 9000-2000, ISO 9001-2000, ISO
9004-2000); the environmental management system
are ISO 14000 and so on.

3. Just-in-Time a manufacturing theory of producing
just enough product to fill current orders as they are
due. just in time for them to be used

Major Quality Concepts
Page 28

4. Kaizen a Japanese term fro unending
improvement
-Kaizen represents a system in which management
encourages and implements small, incremental
improvements, involving employees as team members
and creating a culture of workers who all striving to do
better
- it focuses on simplifying complex process and training
employees to measurable improve them.
Major Quality Concepts
Page 29
5. Quality Circles based on a Japanese method of
grouping people together in Quality Control (QC),
meetings where they shared their expertise and worked
to solved a problem or improve process.

6. Six Sigma created by Motorola in 1980s. The name
refers to a scientific way of describing quality based on
variations that occur in any process-plus or minus three
sigmas. Sigma is the Greek letter that signifies the
standard deviations in a mathematical formula.
-the sigma level quantifies defects per million opportunities
(DPMO)
Major Quality Concepts
Page 30

7. TOTAL QUALITY MANAGEMENT a comprehensive,
organization-wide effort to improve the quality of
products and services, applicable to all organizations.

- TQM quality is managed by the total effort of an
organization, and that each department or phase of
production is responsible for making its part of the
product or services as flawless as possible before
passing it on the next user or phase.
Major Quality Concepts
Page 31

7. TOTAL QUALITY MANAGEMENT a management
philosophy, a paradigm, a continuous improvement
approach to doing business through a new management
model

- TQM quality is managed by the total effort of an
organization, and that each department or phase of
production is responsible for making its part of the
product or services as flawless as possible before
passing it on the next user or phase.
Major Quality Concepts