Conceptual Framework TQM-II
Transcript of Conceptual Framework TQM-II
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Some Models
Prof. Sunil SharmaFaculty of Management Studies,
University of Delhi,DELHI-110007.
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Definition of QualityASQ Definition
It refers to totality of features and characteristics of aproduct or service that bears on its ability to satisfystated or implied needs.
Groocock combines ASQ and EOQC definition withthat ofJuran(Fitness for Use) and Crossby(Conformance to requirements)The degree of
conformance of all the relevant features andcharacteristics of the product to all of the aspects of acustomers need,limited by the price and delivery she
would accept
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Evolution of TQM QC-----SQC-----TQC-----QA-----TQM
QCrefers to operational techniques and activities
aimed both at monitoring a process and eliminatingcauses of unsatisfactory performance of relevant stageof quality loop in order to result in economiceffectiveness.
SQC refers to use of statistical distributions tomeasure the chance and degree of conformance of RM,processes and products to previously agreed specs.
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TQC refers to a management framework to ensurecontinuing excellence. It is referred to as CWQC inJapan.The emphasis is on total control of qualityorganisation wide (across all levels and allfunctions)and looks at the process of servingcustomers (internal and external).It is infact,statistical control of quality applied to the totaloperations of an organisation including all steps ofplanning,design.production,service,marketing,financeand even administration.
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QAis nothing but TQC conducted in a systematic manner.QA contains all those planned and systematic actionsrequired to provide adequate confidence that a product or
service will satisfy given requirements for quality QAbuilds-in quality through a set of documentation or a
system at all stages.
TQMthen refers to Company-wide quality assurancefrom supplier to customer (external and internal) usingdocumented systems approach and control of process
variability in a team spirit with top managementcommitment. In a way, in a way, it is strategic qualitymanagement.
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Juran(1988)Jurans ten steps to quality improvement are: (i) Build awareness of opportunities to improve, (ii) Set goals for improvement,
(iii) Organise to reach goals, (iv) Provide training, (v) Carry out projects to solve problems, (vi) Report progress, (vii) Give recognition,
(viii) Communicate results, (ix) Keep score, and (x) Maintain momentum by making annual
improvement, part of the regular systems andprocesses of the company.
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Quality trilogyJuran
Quality planning----Quality control---Quality
improvement Similarly, three dimensions of Qualityby Gitlow-
Quality ofdesign,
Quality ofconformance; and
Quality ofperformance.
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Crosby (1984)Crosby proposed four absolutes of quality.
(i) Quality is definedas conformance to
requirements, not goodness. (ii) The system for achieving quality isprevention, not appraisal.
(iii) The performance standard is zero-defects,
not thats close enough. (iv) The measurement of quality is the price of
non-conformance, not indexes.
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Demings 14 points(1982)Deming, the world quality guru, proposed the following fourteenpoints as a foundation of TQM. The points are applicable to services, as
well.
(i) Create consistency of purpose with a plan. (ii) Adopt the new philosophy of quality (as means of
survival and global competitiveness).
(iii) Cease dependence on mass inspection.
(iv) End practice of choosing suppliers based on price, rather
focus on need for a long-term relationship. (v) Identify problems and work, continuously, to improve
the system, i.e. study the process itself, not the defects detected, duringinspection for quality improvement.
(vi) Adopt modern methods of training on job.
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Demings 14 points contd. (vii) Change the focus from production numbers (quantity) to
quality. (viii) Drive out fear (from employees).
(ix) Break down barriers between departments through opencommunication. (x) Stop requesting improved productivity from workers without
providing such methods (management systems) to achieve it. (xi) Eliminate work-standards that prescribe numerical quotas at
the expense of quality. (xii) Remove barriers to pride of workmanship. (xiii) Institute vigorous education and training not only in specific
jobs but also in tools and techniques of QC. (xiv) Create a structure in top management that will emphasise the
preceding thirteen points, every day, by transformation in management-styleand nurturing a quality-culture.
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Feigenbaum (1988)Feigenbaum of General Systems Company Inc. gave7 characteristics of managing TQ-
(i) Total Quality is not a technical function or
department but a systematic process that extends throughoutthe company. (ii) Total Quality must be organised to recognise that
while it is everybodys job in the company, it will becomenobodys job unless quality process in the company is correctlystructured to support both the quality work of individuals and
the quality teamwork among departments. (iii) Total Quality improvement must take place in
marketing, development and engineering, in manufacturing and,particularly, in services, not merely in production for factory
workers only.
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Feigenbaum contd. (iv) Total Quality must be perceived to be what the
buyer wants and needs to satisfy his requirements not what thecompany needs to satisfy its requirements for marketing andproduction-efficiency.
(v) Total Quality improvement requires applications ofnew technology, ranging from quality design techniques tocomputer-aided quality management, measurement and control.
(vi) Total Quality improvement is achieved onlythrough the help and participation from all the men and womenin the workforce not from just a few specialists.
(vii) For Total Quality attainment, the company has toestablish a clear, customer-oriented, quality management systemthroughout the organisation which people can understand,believe in and want to be part of.
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Some common pointsDespite some differences among these quality Gurus namelyCrosby, Deming and Feigenbaum, a number of common pointsarise:
(i) Inspection is never the answer to qualityimprovement. Prevention rather than correction is always thestrategy.
(ii) Involvement of and leadership by top managementare essential to the development of quality-culture.
(iii) A programme for quality requires organisation-wideefforts across all departments and all levels, aided by long-termcommitment and necessary investment in education andtraining in tools and techniques by management.
(iv) Quality always comes first and other factors aresecondary.
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Quality leadership- The concept of quality leadership has got the following characteristics
It recognises as Dr Joseph Juran has argued that, at least,8085% of failures in any organisation are the fault of systems
controlled by the management. Only fewer than 1520% of theproblems are actually worker-related. In quality leadership, the focusis, thus, on constantly and rigorously improving every system, not onblaming people.
It asserts that work can be studied, analysed, scientifically dissected
and improved (work simplification). Processes must be standardised and standardised procedures must be
followed until a better way is developed. Variations must be reduced inoutput. Opportunity must be provided for everyone to contribute inimproving the processes and eliminating problems. Then, everyonemust follow the new method until it can be further improved (MethodsEngineering).
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Quality leadership (Joiner ,1988) It has a customer focus, an obsession with quality, as defined by
the customer.
It recognises that there are both external customers and internal
customers, some employees depending on the work of others to be ableto perform their jobs properly.
It demands improved relations with suppliers, a true workingpartnership which, in most cases, will require a single or limitedreliable supplier(s) for each item.
It emphasises on process improvements rather than individualaccountability.
Communication systems are to be adopted to the needs and flowof the work, not to the needs and structure of the hierarchy.
There should be constancy of purpose throughout the
organisation in an environment which nurtures total commitmentfrom all employees.
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Crosby Deming-conformance to reqmts.-- Sr Mgt responsible for quality
-Predictable degree of uniformityand dependability--Sr mgt is responsible for 94% ofquality problems. Performance std. is ZD
General approach Prevention
not inspection-Rejects statistically acceptablelevels of quality
- Improvement basis is aprocess,not a programimprovement goal
-Quality improvement teams-Cost of non-conformance-Qualityis free.
-Reqmts for supplier, vendorrating,Most faults due topurchasers themselves.
Reduce variability by continuous
improvement. Statistical methods of QC must be
used.
Continuous improvement toreduce variation.
Employee participation indecision making
No .Optimum cost of impvt.
Inspection too late, allows defectsto enter system,Statisticalevidence reqd.Vendor rating
notremd;critical of most systems.
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Juran Quality described as Fitness for use.
Less than 20% of quality problems are due to workers.
Avoid compaigns to do perfect work.
General management approach to quality-especially human elements. Recommends SPC but warns,it can lead to too driven an approach.
Project-by-project team approach; set goals.
Team and quality circle approach.
Quality is not free; there is an optimum.
Purchasing problems complex. Carry out formal surveys.
Recommends vendor rating systems.
Single source of supply not recommended as it doesnt offercompetition vs. Deming who supports single source of supply.
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EIGHT CRITICAL FACTORS FOR TQM SYSTEM
A plan to keep improving all operations continuouslyA system for measuring these improvements accurately
A strategic plan based on benchmarks that compare the companys performance
with the worlds best
A close partnership with suppliers and customers that feeds improvements back
into operations
A deep understanding of the customers so that their wants can be translated into
products
A long-lasting relationship with customers, going beyond the delivery of the product
to include sales, service, and ease of maintenance
A focus on preventing mistakes rather than merely correcting them
A commitment to improving quality that runs from the top of the organization to
the bottom
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Building Blocks Model (Zairi,1991)
SP
C,
SQC,
ISO9000Systems
User-
SupplierChain
ManagementControlSystem
OPT/MRPII/JIT
ProcessFlexibility
FMS/AMT/CIM/CAD/CAM
WorkPlaceDesign
Layo
ut,Safety,
MethodsDesigning
Quality Planning
Leadership
Vision For World Class Competitiveness
TQ : The Pillars
TQ : The Pillars
Continuous Improvement Value Management at Each Stage
Employee Involvement
TQ : The Foundation
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Oakland Model (2000)
Team
ToolsSystems
Process
Commitment
Cultu
re
Com
municationCS
ustomerupplier
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MALCOLM BALDRIGE AWARD CRITERIA
Maximum score Percent
age of
sub-
total1. Leadership
150
1. Leadership of top-ranking managers
50
2. Policy
30
3. Management control system and quality improvementprocess 30
4. Allocation and utilization of resources
20
5. Responsibility to society
10
6. Unique and creative leadership technique
10
15%
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MBNQA Contd.
2.Information and analysis
75
1. Utilization of analysis technique or system
152. utilization of information about product quality and
servicing quality 10
3. Customer data and analysis
20
4. Analysis of quality and data of subcontractor
10
5. Analysis of quality and data of distributor or sales agent
106. Employee-related data and analysis
5
7. Unique and innovative analysis of information
5
7.5%
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MBNQA Contd3.Quality of strategy planning75
1. Operation target and strategy target
20
2. Function of planning
20
3. Quality improvement plan30
4. Unique and innovative planning for strategy
5
7.5%
4. Utilization of human resources
150
1. Control and operation
30
2. Quality-consciousness and participation of employees
50
3. Training and education concerning quality
30
4. Personnel assessment, motivation, award system
30
5. Unique and innovative strategy concerning utilization of
human resource 10
15%
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MBNQA Contd.5. Quality assurance of product and servicing150
1. Reflection of customers opinion on product and
servicing 20
2. Development of new product and new servicing
20
3. Design of new product and new servicing30
4. measurement, standardization, data system
10
5. Engineering
10
6. Audit
15
7. Recording10
8. Safety, health and sanitation, environment
10
9. Assurance/effectiveness
15
10. Unique and innovative approach to quality assurance of
product and servicing 10
15%
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MBNQA Contd.6. Result of quality assurance of product and servicing
100
1. Reliability and achievement of product and servicing
25
2. Reduction of scrap, rework, rejection concerning
product and servicing 20
3. Reduction of complaint and claim suit concerning
quality 25
4. Reduction of assurance- or site-related assistance
operation 20
5. Innovative index and economic gain for quality
improvement 10
10%
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MBNQAContd.7. Customer satisfaction
300
1. Quality of product and servicing from customers
viewpoint 1002. Comparison of competitiveness of product and servicing
50
3. Customer servicing and countermeasure for complaint
75
4. Assurance from customers viewpoint
50
5. Unique (or innovative) technique to grasp customer
satisfaction 25
30%
Total 1000 100%
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DEMING PRIZE
1. Policy 1. Policies pursued for management quality,
and quality control
2. Method of establishing policies
3. Justifiability and consistency of policies
4. Utilization of statistical methods
5. Transmission and diffusion of policies
6. Review of policies and the results
achieved
7. Relationship between policies and long-
and short-term planning
2.
Organization and its
Managem
ent
1. Explicitness of the scopes of authority
and responsibility2. Appropriateness of delegations of
authority
3. Interdivisional cooperation
4. Committees and their activities
5. Utilization of staff
6. Utilization of activities
7. Quality control diagnosis
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DEMING PRIZE contd.3. Education and
Dissemination
1. Education programs and results
2. Quality- and control-consciousness, degrees of
understanding of quality control
3. Teaching of statistical concepts and methods, and
the extent of their dissemination4. Grasp of the effectiveness of quality control
5. Education of related company (particularly those
in the same group, sub-contractors, consigness,
and distributers)
6. QC circle activities
7. System of suggesting ways of improvements and
its actual conditions
4. Collection,
Dissemination
and Use of
Information of
Quality
1. Collection of external information
2. Transmission of information between divisions
3. Speed of information transmission (use of
computers)
4. 4. Data processing statistical analysis of
information and utilization of the results
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Deming Prize contd.5. Analysis 1. Selection of key
problems and
themes
2. Propriety of the
analyticalapproach
3. Utilization of
statistical
methods
4. Linkage with
proper technology
5. Quality analysis,
process analysis6. Utilization of
analytical results
7. Assertiveness of
improvement
suggestions
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Deming Prize contd.6.Standard
ization
1. Systematization of standards
2. Method of establishing, revising, and abolishing standards
3. Outcome of the establishment, revision, or abolition of standards
4. Contents of the standards
5. Utilization of statistical methods
6. Accumulation of technology
7. Utilization of standards
7.
Control
1. Systems for the control of quality and such related matters as cost and quantity
2. Control items and control points
3. Utilization of such statistical control methods as control charts and other
statistical concepts
4. Contribution to performance of QC circle activities5. Actual conditions of control activities
6. State of maters under control
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Deming Prize contd.8. QualityAssuran
ce
1. Procedure for the development of
new products and services (analysis
and upgrading of quality, checking
of design, reliability, and other
properties)
2. Safety and immunity from product
liability3. Customer satisfaction
4. Process design, process analysis,
and process control and
improvement
5. Process capability
6. Instrumentation, gauging, testing,
and inspecting7. Equipment maintenance, and
control of subcontracting,
purchasing, and services
8. Quality assurance system and its
audit
9. Utilization of statistical methods
10. Evaluation and audit of quality
11. Actual state of quality assurance
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Deming Prize contd.
9. Results 1. Measurements of
results
2. Substantive results
in quality, services,
delivery time, cost,
profits, safety,environments, etc.
3. Intangible results
4. Measures for
overcoming defects
10. Planning for the Future 1. Grasp of the present
state of affairs and
the concreteness ofthe plan
2. Measures for
overcoming defects
3. Plans for further
advances
4. Linkage with the
long-term plans
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Comparison BALDRIGE VS.DEMING AWARD CRITERIA
Baldrige Deming
1. Leadership 1. Policy
2. Information and analysis 2.Organisation and management3. StategicQualityPlanning 3.Education and training
4.HRD&management 4.Collection, dissemination and
use of information on quality
5. Management of process quality 5.Analysis
6. Quality and operations results 6.Standardisation
7. Customer focus and satisfaction 7.Control
8 Quality Assurance
9. Results
10. Planning for future
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EFQM ModelPeople
Management
Policy andStrategy
Resources
PeopleSatisfaction
CustomerSatisfaction
Impact onSociety
Leadership
Processes
BusinessResults
Source: EFQM
The European quality award assessment model