Total Quality Management

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Total Quality Management

Presented By:Honey Agarwal, Onkar Nath, Raghvendra, Ritu Rani, Sahil Goyal, Shashikant

Why TQM?
Ford Motor Company had operating losses of $3.3 billion between 1980 and 1982. Xerox market share dropped from 93% in 1971 to 40% in 1981. Attention to quality was seen as a way to combat the competition.

Total Quality Management
‡ Total - made up of the whole ‡ Quality - degree of excellence a product or service provides ‡ Management - act, art or manner of planning, controlling, directing,«. Therefore, TQM is the art of managing the whole to achieve excellence excellence.

Definition of TQM
TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society.

What¶s the goal of TQM?
³Do the right things right the first time, every time.´

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

Productivity and TQM
‡ Traditional view:
± Quality cannot be improved without significant losses in productivity.

‡ TQM view:
± Improved quality leads to improved productivity.

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
Adopt the change as a permanent modification to the process, or abandon it.

DO
Implement the change on a small scale and measure the effects

CHECK
Study the results to learn what effect the change had, if any.

Continuous Improvement versus Traditional Approach
Traditional Approach
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Market-share focus Individuals Focus on µwho´ and ³why´ Short-term focus Status quo focus Product focus Innovation Fire fighting

Continuous Improvement
‡ ‡ ‡ ‡ ‡ ‡ Customer focus Cross-functional teams Focus on ³what´ and ³how´ Long-term focus Continuous improvement Process improvement focus ‡ Incremental improvements ‡ Problem solving

LEARNING AND TQM
Learning Process Improvement Quality Improvement

Customer Satisfaction

Shareholder Satisfaction

Employee Satisfaction

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

Total Quality Management
1.Principle & Practices a. Leadership b. Customer Satisfaction c. Employee Involvement d. Continues Process Involvement e. Performance Measurement 2.Tools & Technique a. Benchmarking b. Environmental Mgnt. System c. Quality By Design d. Products Liability e. Total Productive Maintenance f. Quality Management

LEADERSHIP
Leader shapes the organizational value Promote the organizational value Protect the organizational value And Exemplify of the organizational value.

Six habits of leader
1. 2. 3. 4. 5. 6. Be proactive. Begin with the end in mind. Put first thing first . Think win win. Synergy. Sharpen the saw.

Customer satisfaction
‡ Types of customer.

Types of customer Internal external

Who purchase for own

Who influences the sale

Customer perception of quality
1. 2. 3. 4. 5. 6. Performance Feature Services Warranty Price Reputation

Employee involvement
1. Motivation
Self-actualization

Esteem

Social

Security

Survival

2. Empowerment 3. Team 4. Suggestion system 5. Recognition and reward 6. Performance appraisal

Performance measurement
It is the process where by an organization establishes the parameters within which programs, investments, and acquisitions are reaching the desired results. Challenge in performance measurement:1. Diversity of organization & professional. 2. Intangible & non financial measurement. 3. Change management practices.

Performance Measurement Guidelines
‡ ‡ ‡ ‡ ‡ ‡ Process Improvement. Employee Involvement. Reportable. Forward Looking. Optimization. Management Commitment.

Continuous Process Improvement
Quality is a never ending question and Continuous Process Improvement (CPI) is a never ending effort to discover and eliminate the main causes of problems. It accomplishes this by using small-steps improvements, rather than implementing one huge improvement.

CPI helps in:-Reduce Variation. -Remove Activities that have no value to the organization. -Improve Customer Satisfaction.

CPI Procedure:CPI has been described by using a number of models. ‡ ‡ ‡ ‡ ‡ Analysis Phase Design Phase Development Phase Implementation Phase Evaluation Phase

Benchmarking
It is a dynamic process of measuring one¶s products, services & practices against the best of the companies to identify the areas of improvement.

Analyzing the above definition leads to three key ingredients of it: - Whom to benchmark with? - What to benchmark? - Why the difference?

Benefits of Benchmarking:‡ Source of innovation ‡ Measurable goals & objectives. ‡ Understanding present performance in measurable terms. ‡ Awareness about the best practices. ‡ Accelerate positive change. ‡ Achievement pf standard of excellence. ‡ Provide SWOT analysis of of the company. ‡ Generate employee involvement.

Implementation of Benchmarking
‡ ‡ ‡ ‡ ‡ Planning stage Analysis stage Integration Stage Action Stage Maturity stage

ISO STANDARDS SERIES
‡ ORGANIZATIONAL EVALUATION STANDARDS. A) EMS B) Environmental Auditing C) Environmental performance evaluation.

PRODUCT EVALUATION STANDARDS. A) Environmental aspect in product standard. B) Environmental labeling. C) Life cycle assessment.

QUALITY BY DESIGN

Benefits :1) decrease in time to markrt. 2) faster product development 3) better quality. 4) less work in progress. 5) Increased productivity.

Tools:1) organizational tool. 2) product development tool. 3) production tool. 4) statistical tool.

PRODUCT LIABILITY

TOTAL PRODUCTIVE MAINTENANCE ‡ Total productive maintenance (TPM) keeping current plan and equipment at the highest productive level through cooperation of all areas of the organization

Need

‡ Training :- teach the philosophy to manager at all level , because company want to enhance there level of productivity. ‡ Improvement :- one of the first stapes for the team is to identify the current status, and improve them.

Goal
‡ goal should be set after the improvement, need are identified, and work together as a team and achieve the goal.

Quality management
‡ Quality should be perceived from the customer point of view ,the customer who decides to buy or not to buy product or service, according to his or her perception of quality.

Various dimension of quality
‡ Safety- how much care has the company taken to make the product safe for user before during after use . ‡ Performance- how well does the product performed with respect to it¶s . ‡ Feature- what special feature does the product have «..?e.g.. 1200 watts of sound , flat , picture in t.v. ‡ Serviceability- how easily cheaply and speedily can the product repair or service. Durability- how long can the product performed well without fault. ‡ Appearance- pleasant is the outward look , small , flat ,etc. ‡ Customer service- how is the behave seller with the costumer behave after and before sale the product .

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Quality is a Journey, not a Destination

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