Conceptual Framework TQM-II

  • Upload
    a-k

  • View
    226

  • Download
    0

Embed Size (px)

Citation preview

  • 7/30/2019 Conceptual Framework TQM-II

    1/34

    Some Models

    Prof. Sunil SharmaFaculty of Management Studies,

    University of Delhi,DELHI-110007.

  • 7/30/2019 Conceptual Framework TQM-II

    2/34

    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

  • 7/30/2019 Conceptual Framework TQM-II

    3/34

    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.

  • 7/30/2019 Conceptual Framework TQM-II

    4/34

    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.

  • 7/30/2019 Conceptual Framework TQM-II

    5/34

    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.

  • 7/30/2019 Conceptual Framework TQM-II

    6/34

    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.

  • 7/30/2019 Conceptual Framework TQM-II

    7/34

    Quality trilogyJuran

    Quality planning----Quality control---Quality

    improvement Similarly, three dimensions of Qualityby Gitlow-

    Quality ofdesign,

    Quality ofconformance; and

    Quality ofperformance.

  • 7/30/2019 Conceptual Framework TQM-II

    8/34

    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.

  • 7/30/2019 Conceptual Framework TQM-II

    9/34

    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.

  • 7/30/2019 Conceptual Framework TQM-II

    10/34

    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.

  • 7/30/2019 Conceptual Framework TQM-II

    11/34

    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.

  • 7/30/2019 Conceptual Framework TQM-II

    12/34

    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.

  • 7/30/2019 Conceptual Framework TQM-II

    13/34

    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.

  • 7/30/2019 Conceptual Framework TQM-II

    14/34

    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).

  • 7/30/2019 Conceptual Framework TQM-II

    15/34

    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.

  • 7/30/2019 Conceptual Framework TQM-II

    16/34

    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.

  • 7/30/2019 Conceptual Framework TQM-II

    17/34

    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.

  • 7/30/2019 Conceptual Framework TQM-II

    18/34

    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

  • 7/30/2019 Conceptual Framework TQM-II

    19/34

    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

  • 7/30/2019 Conceptual Framework TQM-II

    20/34

    Oakland Model (2000)

    Team

    ToolsSystems

    Process

    Commitment

    Cultu

    re

    Com

    municationCS

    ustomerupplier

  • 7/30/2019 Conceptual Framework TQM-II

    21/34

    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%

  • 7/30/2019 Conceptual Framework TQM-II

    22/34

    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%

  • 7/30/2019 Conceptual Framework TQM-II

    23/34

    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%

  • 7/30/2019 Conceptual Framework TQM-II

    24/34

    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%

  • 7/30/2019 Conceptual Framework TQM-II

    25/34

    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%

  • 7/30/2019 Conceptual Framework TQM-II

    26/34

    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%

  • 7/30/2019 Conceptual Framework TQM-II

    27/34

    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

  • 7/30/2019 Conceptual Framework TQM-II

    28/34

    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

  • 7/30/2019 Conceptual Framework TQM-II

    29/34

    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

  • 7/30/2019 Conceptual Framework TQM-II

    30/34

    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

  • 7/30/2019 Conceptual Framework TQM-II

    31/34

    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

  • 7/30/2019 Conceptual Framework TQM-II

    32/34

    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

  • 7/30/2019 Conceptual Framework TQM-II

    33/34

    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

  • 7/30/2019 Conceptual Framework TQM-II

    34/34

    EFQM ModelPeople

    Management

    Policy andStrategy

    Resources

    PeopleSatisfaction

    CustomerSatisfaction

    Impact onSociety

    Leadership

    Processes

    BusinessResults

    Source: EFQM

    The European quality award assessment model