TOTAL QUALITY MANAGEMENT: TQM Origins, Evolution & key elements

1. TOTAL QUALITY MANAGEMENT:TQMOrigins, Evolution & key elements

2. What is Quality? Quality is “fitness for use” (Joseph Juran) Quality is “conformance to requirements” (Philip B. Crosby) Quality of a product or services is its ability to satisfy the needs and expectations of the customer

3. Evolution of Quality Management Salvage, sorting, grading, blending, corrective actions, identify sources of non-conformance Inspection Develop quality manual, process performance data, self-inspection, product testing, basic quality planning, use of basic statistics, paperwork control. Quality Control Quality systems development, advanced quality planning, comprehensive quality manuals, use of quality costs, involvement of non-production operations, failure mode and effects analysis, SPC. Quality Assurance Policy deployment, involve supplier & customers, involve all operations, process management, performance measurement, teamwork, employee involvement. TQM

4. Deming’s view of a production as a system Receipt & test of materials Design & redesign Consumer Research Suppliers, materials & equipment Production, assembly, inspection Distribution Consumers Test of processes, machines, methods, cost

5. Deming’s Chain Reaction Improve Quality Provide jobs and more jobs Cost decreases because of less rework, fewer mistakes, fewer delays, snags, better use of machine time and materials Stay in business Productivity improves Capture the market with better quality and lower price

6. What is TQM? Concern for employee involvement and development Management by Fact Constant drive for continuous improvement and learning. Organisation response ability Passion to deliver customer value / excellence Result Focus Partnership perspective (internal / external) Actions not just words (implementation) Process Management

7. Approach Management Led Scope Company Wide Scale Everyone is responsible for Quality Philosophy Prevention not Detection Standard Right First Time Control Cost of Quality Theme On going Improvement BASIC PRINCIPLES OF TQM

8. W. Edwards Deming’s 14 Points 1) 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. 2) 3) 4)

9. W. Edwards Deming’s 14 Points 5) Find problems. It is management’s 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. 6) 7) 8)

10. W. Edwards Deming’s 14 Points 9) 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. 10) 11) 12)

11. W. Edwards Deming’s 14 Points 13) Institute a vigorous programme of education and retraining. Create a structure in top management that will push everyday on the above 13 points. 14)

12. The Deming Cycle or PDCA Cycle PLAN Plan a change to the process. Predict the effect this change will have and plan how the effects will be measured ACT DO Adopt the change as a permanent modification to the process, or abandon it. Implement the change on a small scale and measure the effects CHECK Study the results to learn what effect the change had, if any.

13. Deming’s System of Profound Knowledge Knowledge about variation Appreciation for system Theory about knowledge Knowledge of psychology

14. Customer Satisfaction Shareholder Satisfaction Employee Satisfaction LEARNING AND TQM Learning Process Improvement Quality Improvement

15. Philip Crosby’s Four Absolutes What is Quality? Definition : Conformance to requirements System of quality is prevention Performance Standard : Zero Defects Measurement : Price of non-conformance (PON) What system is needed to cause quality? What performance standard should be used? What measurement system is required?

16. Crosby’s Successful Company Characteristics of the Eternally Successful Organisation People do things right routinely Growth is profitable and steady Customer needs are anticipated Change is planned and managed People are proud to work there

17. Joseph M. Juran’s Quality Trilogy Quality Planning Establish quality goals Identify customer needs Translate needs into our language Develop a product for these needs Optimise product features for these needs Quality Control Prove the process can produce under operating conditions Transfer process to operation Quality Improvement Seek to optimise the process via tools of diagnosis

18. Juran’s Quality Planning Road Map 1) Identify who are the customers 2) Determine the customer’s needs 3) Translate the needs into our language 4) Develop a product to meet those needs 5) Optimise a product so as to meets our needs as well as the customer’s. 6) Develop a process which is able to produce the product 7) Optimise the process 8) Prove the process can make the product under operating conditions

19. Joseph M.Juran and the Cost Of Quality 2 types of costs: Unavoidable Costs: preventing defects (inspection, sampling, sorting, QC) Avoidable Costs: defects and product failures (scrapped materials, labour for re-work, complaint processing, losses from unhappy customers “Gold in the Mine”

20. Joseph M.Juran and the Cost Of Quality Costs Total Costs Unavoidable costs Avoidable costs 100% defective Point of “Enough quality”

21. FOUR KEY PRINCIPLES • Measure quality so you can affect it • Focus on a moving customer • Involve every employee • Think long term - Act short term

22. THE CASE FOR QUALITY 1 Success of competitors who take quality seriously 2 Rising expectations of customers 3 Quality differentiates companies from the competition 4 Narrowing of supplier bases by quality conscious companies .

23. THE CASE FOR QUALITY 5 Growing evidence that growth in market share comes from sustained quality. 6 Cost advantages 7 High cost of catastrophic failure 8 Inspection poor substitute for right first time

24. SEVEN DEADLY SINS OF TQM • Flight to nowhere • One size fits all • Substituting TQM for leadership • Inside - Out indicators • Mandatory religion • Quality kept as a separate activity • Teaching to the test

25. IS QUALITY A SOUND INVESTMENT? YearCompanyStock Growth (Oct 94) 1988 Motorola 373.0% 1988 Westinghouse (CNFD) - 49.6% 1989 Xerox (BPS) 75.9% 1990 General Motors 1.6% 1990 Federal Express 10.6% 1990 IBM (IBM Rochester) - 34.9% 1991 Selectron 526.9% 1992 AT&T (UCS) 32.2% 1992 AT&T (TSBU) 32.2% 1992 Texas Instruments (DS&E) 106.8% 1993 Zyta 8.4% 1994 Eastman Chemical 18.5% Total Stock Value £23016 (91.8% growth) Standard & Poor 500 Stock value £15911 (32.6% growth) Source: US Dept. of Commerce Study 1995

26. Quality is a Journey, not a Destination

27. Objectives Policy Management Responsibilities Responsibilities Management review Interface with customer System Structure Records Control Audit Personnel Material Resources Elements of the ISO 9000 Standards

28. The Role of Quality assurance. Q/A in project management. Contract & Procurement Q/A. Design Q/A. Procurement Q/A. Construction & Commissioning Q/A. Typical contents of different type of PQP. Contents of The DEP

29. Project Quality Plan • Definition • The project quality plan is a documented description of the project management system and must be approved by the AEM, in part to demonstrate his commitment to quality but primarily it is the means by which technical and administrative authorities are delegated through out the project. • All projects shall have quality plan. • Project engineer shall develop and update the PQP. • .

30. Relationships between project quality plans PQP ADCO PQP Designer PQP construction contractor Suppliers quality plans

31. Confirm project objectives Student / Supervisor Plan the project allocate resources Supervisor Identify critical activities Student Define standards and controls Student Audits Supervisor Student Close-out Preparation of a project quality plan

32. 1. COVER SHEET + REVISION CONTROL 1.1 Document purpose 1.2 Policy statement 2.INTRODUCTION 2.1 Background 2.2 Project Scope 2.3 Project Objectives & Constraints 2.4 QA Standards (Consider putting in Document purpose) CONTENTS OF TYPICAL PROJECT QUALITY PLAN

33. 3. EXECUTION STRATEGY 3.1 Project Management risks. 3.2 Critical Activities. 3.3 Control Strategy. 3.4 Cost & Schedule. 3.5 HSE Plan. 3.6 Commissioning & Hand-over. CONTENTS OF TYPICAL PROJECT QUALITY PLAN

34. 4.ORGANISATION, RESPONSIBILITES & INTERFACES 4.1 Table with names 4.2 External interfaces 4.3 Definition of specific roles and responsibilities. 5. QUALITY REFERENCE SYSTEM 5.1 Controlling Documents 5.2 Applicable Procedures (Check list based) 6.INTEGRATION OF CONTRACTORS & SUPPLIERS 6.1 Define Contractor interfaces. 6.2 Contractor + Supplier Quality System. CONTENTS OF TYPICAL PROJECT QUALITY PLAN

35. 7.AUDITS & REVIEWS This section should include schedule for all audits and reviews planned during the project execution period 8. QUALITY IMPROVEMENT 8.1 LESSONS LEARNT 8.2 CLOSE-OUT REPORT CONTENTS OF TYPICAL PROJECT QUALITY PLAN

36. PREPARATION & APPROVALS: PREPARE: Student APPROVE: Supervisor Timing The Student shall develop the PQP immediately after receiving the Assignment and agree the project. CONTENTS OF TYPICAL PROJECT QUALITY PLAN