Quality Management-mba Study Notes 1l2po

Page 1 of 49 MBA 4.4: QUALITY MANAGEMENT Module 1 Evolution of Quality management; concepts and objectives of quality management; Zero defects; Acceptance sampling; Quality Inspection; Quality assurance; Quality circles; training for quality; concept and tools of Six Sigma. Evolution of Quality Management The Quality Gurus TQM evolved and it is worth considering the beliefs of the main quality gurus who have added to the mix, starting with Deming himself. Edward Deming Deming's concepts of process management began with the use of statistical quality control. His real contribution was his ability to cut through academic theory and present ideas in a simple way that was meaningful and practical right down to the shop floor. He interpreted quality in of reliability, dependability, predictability and consistency of product and service. He saw quality improvement as being analogous to reduction in process variation. By reducing this with the help of statistical control methods, variation in product quality is also reduced. The fact that processes are now under better control also means lower cost and improved productivity. Deming's approach started with understanding the causes of two types of variation, 1 1. External influences on the process which he described as uncontrolled variation due to "special causes". Examples are changes of operation, procedures, and raw materials. All these interrupt the normal pattern of operation. 2 2. Controlled variations which are due to chance, random, or "common causes". All of these by definition are due to the process itself, its design or installation. For Deming, quality improvement must begin with identification of the two types of variation. The next stage is to eliminate the "special causes" and only then work on the "common causes". Identification and elimination of these is assisted by the use of Statistical Process Control (SPC) and various forms of simple control charts designed to be used on a shop floor environment. Management improves the process by re-deg it to improve it's capability to meet customer needs. Deming also stressed the crucial importance of the need for a deep understanding of businesses work processes. Without this, true progress will not be made. Over the years Deming thoughts expanded, to cover issues of managing people, leadership and training in order to achieve quality goals Joseph Juran Juran published "The Quality Control Handbook" in 1950 which became the standard reference book on quality world-wide. Juran developed his TQM philosophy around his "quality trilogy" 1 • Quality planning: the process for preparing to meet the quality goals 2 • Quality control: the process for meeting quality goals through operations 3 • Quality improvement: the process for break through levels of performance Both he and Deming correctly stressed the need to involve people throughout the organization in quality improvement but in particular that most quality issues are down to management

Page 2 of 49 dealing with systems. The emphasis is on getting the system correct rather than blaming failure on operator error. Juran particularly emphasized the use of quality teams and training them in measurement and problem solving. Kaoru Ishikawa Ishikawa is regarded as the father of the quality circle approach which was involved building shop floor teams. His legacy is more directly linked to hands on, practical techniques and promoted many of the tools and techniques of measurement, analysis and problem solving commonly used as part of the TQM armoury. These include:  Pareto analysis  Fishbone diagram (otherwise known as an Ishikawa diagram)  Stratification  Histograms  Control Charts  Scatter diagrams Philip Crosby Crosby did much to popularize the use of TQM. He first designed a highly successful programme for ITT for whom he worked before setting up his own quality college and consultancy firm. His training programme has been widely used by a large number of US. and U.K. companies. Again, like other practitioners, his training is targeted at the Management team as whole and not just quality control specialists. Crosby presented his "4 Absolutes of Quality" as the cornerstones of his approach 1 1. Quality is defined as conformance to requirements, not just as goodness 2 2. Quality is achieved through prevention not appraisal 3 3. The quality performance standard is "zero defects" and is not defined by AQLs which allow and build in acceptable levels of errors and inefficiencies 4 4. Quality is measured by the price of non-conformance Crosby spread the word that, as in the title of his most popular book, "Quality is Free". He believes that by setting up processes that are designed to prevent errors, by having people trained and motivated to operate them as designed, not only will quality improve, the costs of production will be reduced. Introduction Before the concepts and ideas of TQM were formalized, much work had taken place over the centuries to reach this stage. This section charts the evolution, from inspection through to the present day concepts of total quality. From inspection to total quality During the early days of manufacturing, an operative’s work was inspected and a decision made whether to accept or reject it. As businesses became larger, so too did this role and full time inspection jobs were created. Accompanying the creation of inspection functions, other problems arose: • More technical problems occurred, requiring specialized skills, often not possessed by production workers • The inspectors lacked training • Inspectors were ordered to accept defective goods, to increase output • Skilled workers were promoted into other roles, leaving less skilled workers to perform the operational jobs, such as manufacturing.

Page 3 of 49 These changes led to the birth of the separate inspection department with a “chief inspector”, reporting to either the person in charge of manufacturing or the works manager. With the creation of this new department, there came new services and issues, e.g., standards, training, recording of data and the accuracy of measuring equipment. It became clear that the responsibilities of the “chief inspector” were more than just product acceptance, and a need to address defect prevention emerged. Hence the quality control department evolved, in charge of which was a “quality control manager”, with responsibility for the inspection services and quality control engineering. In the 1920’s statistical theory began to be applied effectively to quality control, and in 1924 Shewhart made the first sketch of a modern control chart. His work was later developed by Deming and the early work of Shewhart, Deming, Dodge and Romig constitutes much of what today comprises the theory of statistical process control (SPC). However, there was little use of these techniques in manufacturing companies until the late 1940’s. At that time, Japan’s industrial system was virtually destroyed, and it had a reputation for cheap imitation products and an illiterate workforce. The Japanese recognized these problems and set about solving them with the help of some notable quality gurus – Juran, Deming and Feigenbaum. In the early 1950’s, quality management practices developed rapidly in Japanese plants, and become a major theme in Japanese management philosophy, such that, by 1960, quality control and management had become a national preoccupation. By the late 1960’s/early 1970’s Japan’s imports into the USA and Europe increased significantly, due to its cheaper, higher quality products, compared to the Western counterparts. In 1969 the first international conference on quality control, sponsored by Japan, America and Europe, was held in Tokyo. In a paper given by Feigenbaum, the term “total quality” was used for the first time, and referred to wider issues such as planning, organization and management responsibility. Ishikawa gave a paper explaining how “total quality control” in Japan was different, it meaning “company wide quality control”, and describing how all employees, from top management to the workers, must study and participate in quality control. Company wide quality management was common in Japanese companies by the late 1970’s. The quality revolution in the West was slow to follow, and did not begin until the early 1980’s, when companies introduced their own quality programmes and initiatives to counter the Japanese success. Total quality management (TQM) became the centre of these drives in most cases. In a Department of Trade & Industry publication in 1982 it was stated that Britain’s world trade share was declining and this was having a dramatic effect on the standard of living in the country. There was intense global competition and any country’s economic performance and reputation for quality was made up of the reputations and performances of its individual companies and products/services. The British Standard (BS) 5750 for quality systems had been published in 1979 and in 1983 the National Quality Campaign was launched, using BS5750 as its main theme. The aim was to bring to the attention of industry the importance of quality for competitiveness and survival in the world market place. Since then the International Standardization Organization (ISO) 9000 has become the internationally recognized standard for quality management systems. It comprises a number of standards that specify the requirements for the documentation, implementation and maintenance of a quality system. TQM is now part of a much wider concept that addresses overall organizational performance and recognizes the importance of processes. There is also extensive research evidence that demonstrates the benefits from the approach. As we move into the 21st century, TQM has developed in many countries into holistic frameworks, aimed at helping organizations achieve excellent performance, particularly in customer and business results. In Europe, a widely adopted framework is the so-called “Business Excellence” or “Excellence” Model, promoted by

Page 4 of 49 the European Foundation for Quality Management (EFQM), and in the UK by the British Quality Foundation (BQF).” Concepts and Objectives of Quality Management The concept of quality as we think of it now first emerged out of the Industrial Revolution. Previously goods had been made from start to finish by the same person or team of people, with handcrafting and tweaking the product to meet 'quality criteria'. Mass production brought huge teams of people together to work on specific stages of production where one person would not necessarily complete a product from start to finish. In the late 1800s pioneers such as Frederick Winslow Taylor and Henry Ford recognized the limitations of the methods being used in mass production at the time and the subsequent varying quality of output. Taylor established Quality Departments to oversee the quality of production and rectifying of errors, and Ford emphasized standardization of design and component standards to ensure a standard product was produced. Management of quality was the responsibility of the Quality department and was implemented by Inspection of product output to 'catch' defects. Application of statistical control came later as a result of World War production methods. Quality management systems are the outgrowth of work done by W. Edwards Deming, a statistician, after whom the Deming Prize for quality is named. Quality, as a profession and the managerial process associated with the quality function, was introduced during the second-half of the 20th century, and has evolved since then. Over this period, few other disciplines have seen as many changes as the quality profession. The quality profession grew from simple control, to engineering, to systems engineering. Quality control activities were predominant in the 1940s, 1950s, and 1960s. The 1970s were an era of quality engineering and the 1990s saw quality systems as an emerging field. Like medicine, ing, and engineering, quality has achieved status as a recognized profession. Definition Quality is customer satisfaction. According to ISO 8402, quality is “the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.” Broadly Quality is; 1. Fitness for use 2. Grade 3. Degree of preference 4. Degree of excellence 5. Conformity of requirements Universal process of managing quality 1. Quality planning Establish quality goals, identify customers, discover customer needs, develop product features, develop process features, establish process controls and transfer to operations

Page 5 of 49 2. Quality Control Choose control subjects, choose units to measure, set goals, create a sensor, measure actual performance, interpret the difference and take action on the difference. 3. Quality improvement Prove the need, identify projects, organize project teams, diagnose the causes, provide remedies which prove that the remedies are effective, deal with resistance, change and control, and hold the gains. Concepts To have a systematic approach to TQM, it is necessary to develop a conceptual model. Generally, a model is a sequence of steps arranged logically to guide the implementation of a process in order to achieve the ultimate goal. Recognized practices were included to develop a step by step guideline which is universally applicable.

THE TQMEX MODEL The TQMEX model advocates an integrated approach for managing quality in order to the transition to systems management. This is an ongoing process of continuous improvement that begins when the company commits itself to managing by quality Japanese 5 –S Practice Operations Management Business Process Reengineering Quality Control Circles (QCCs) Quality Management System (QMS)

Quality Management

Total Productive Maintenance (TPM) Total Quality Management (TQM) 1. Japanese 5-S Practice The 5-S practice is a technique used to establish and maintain quality environment in an organization. The 5-S stands for five Japanese words –Seiri (structurise), Seiton (systemize), Seiso (sanitise), Seiktsu (standardize), and Shitsuke (self-discipline). The 5-S practice is not only in improving their physical environment, but also their thinking processes. The “5-S” practice is a well-recognized methodology used by the Japanese to improve the work environment. A well-recognized methodology to improve work environment, the concept is fast catching up in many western countries. It has now evolved into a formal technique, which the Japanese believe is useful not just for improving the physical environment, but also for improving Total Quality Management (TQM) processes as well. Many everyday problems could be solved through adoption of this practice. It is also seen that many companies have

Page 6 of 49 included a few aspects of the “5-S” in their routine processes without being aware of its existence as a formal technique. In fact, the “5-S” can be applied to activities in all walks of life. The term “5-S” represents five words in Japanese namely, Seiri, Seiton, Seiso, Seiketsu and Shitsuke. The English equivalents for these are Structurise, Systemize, Sanitise, Standardize and Self-Discipline. In other words, these “5-S” mean Organization, Neatness, Cleaning, Standardization and Discipline. Organization (Seiri) Organization is about sorting items (like tools, parts and materials), which are essential for a job from those that are not. Efforts should be made to select only the vital few and place them at convenient locations. The essence of organization is defined by:     

Discard unwanted things Organize the storage of parts, files and other items Deal with the causes of defects, noise and leaks Treat defects, leaks and breakages Aim for the policy of “one is best” ---one-location file, one-stop service for customers etc. Neatness (Seiton) Neatness determines the rate at which things can be located or placed. It eliminates the time wasted in locating and placing things in an organisation. In simple , it emphasizes on:       

Clearly designated names and places Functional placement of parts, tools and materials Quick (30-second) and easy retrieval of documents, parts and tools Neat and easy-to-read notice boards (with special attention to removal of old and obsolete boards) Filing standards and controls Zoning and placement marks Arrangement for first-in, first out

Cleaning (Seiko) In any organisation, cleaning involves delegating individual areas of responsibility. Every individual should be thoroughly aware of his duties and responsibilities. In doing this, it is important that all assignments be absolutely clear and that there are no undefined, unallocated, or grey areas. This can be done by:    

Asg individual cleaning responsibilities Adopting simple methods for cleaning and inspection Regular cleaning activities Cleaning even the less-noticed places

Standardization (Seiketsu) 

This emphasizes strict and continual maintenance of organisation, cleanliness and neatness. It includes personal and environmental cleanliness. It also implies standardizing the principles of “5-S” practice. By maintaining standardized conditions

Page 7 of 49 using visual management, employees are motivated to act fast in any circumstance. This necessitates:      

Certification of inspections using labels, tags, etc. “Danger” warning marks and signs Colour coding of files, pipes and containers Responsibility labels Preventing noise and vibrations Directional markings on pipes and gangways

Discipline (Shitsuke) Discipline involves instilling the ability of doing things as per the defined rules and regulations. This helps in building good habits like framing and following rules. Discipline, an integral part of industrial safety emphasizes on:      

Following safety rules Wearing safety helmets, gloves, shoes while at work Executing individual responsibilities Good communication practices Practicing dealing with emergencies Checking and following “5-S” practices always

Many successful organisations found that by developing a high quality work environment and instilling discipline in the form of procedures and work instructions, the employees devoted more energy and time to achieve results. The ‘5-S practice’ has now become a highly appreciated technique in business, which not only helps to impress the customers but also to establish effective quality processes for good services and products. 2. Business Process Reengineering Business process reengineering (BPR) is a management approach aiming at improvements by means of elevating efficiency and effectiveness of the processes that exist within and across organizations. The key to BPR is for organizations to look at their business processes from a "clean slate" perspective and determine how they can best construct these processes to improve how they conduct business. Business process reengineering is also known as BPR, Business Process Redesign, Business Transformation, or Business Process Change Management. Definition Hammer and Champy (1993) define BPR as," the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, quality, service, and speed." 3. Quality Control Circles To involve employees in productivity and efficiency improvement activities, a team-based environment must be developed in which they can participate actively in improving their process, product, or service performance. One such employee participation program is quality control circles (QCCs). QC-circle activities are usually directed towards improvements in the workplace. They focus on such areas as:  Cost

Page 8 of 49  

Safety Productivity

The Seven Quality Control Tools Prof. Karou Ishikawa, known as the father of QCCs, developed seven QC tools. Based on his experience, he identified a set of tools, which can be used by teams and individuals to interpret data and deriver maximum information from it. These seven effective tools, which can offer any organization the means to collect, present, and analyze most of its data and problems. They are:       

Process flowcharts Check sheet Histogram Pareto analysis Cause and effect analysis Scatter diagram Control charts

4. Quality Management Systems Implementing a Quality Management System (QMS) within an organisation needs to be a decision by top management. The objective of the quality system needs to be clearly defined so that the system can be effective. The design and implementation of a quality management system will vary depending on the type, size and products of the organisation. Each company will have its own objective, however most companies’ objective is to increase profitability. A Quality Management System will assist by:

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managing costs and risks increasing effectiveness and productivity

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identifying improvement opportunities

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increasing customer satisfaction

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A well managed quality system will have an impact on:

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customer loyalty and repeat business market share

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operational efficiencies

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flexibility and ability to respond to market opportunities

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effective and efficient use of resources

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cost reductions

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competitive advantages

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participation and motivation of human resources

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industry reputation

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control on all processes

The objectives of your Quality Management System should mirror the above in some form. Requirements:      

ISO 9001:2000 requires a quality system to be documented, tested, measured and assessed. Management commitment is essential for the implementation and ongoing success of the Quality Management System. QMS objectives must be measurable and reflect the overall company objectives. The QMS must be able to be managed properly, adequate resources must be allocated. The system must be reviewed regularly and measured for effectiveness, adjustments must be made to reflect major changes to the organisation and business practices. The system must be practical and accessible to all employees within the organisation.

Accreditation:  It is not essential to gain accreditation for a Quality Management System to work effectively. It depends on the organisation if they wish to gain accreditation, however the benefits should be considered:  Your company will be recognized as an organisation that is committed to providing quality products, improvement and customer satisfaction.  You will gain respect through the industry as a fully accredited quality company. 5. Total Productive Maintenance TPM is a Japanese idea that can be traced back to 1951 when preventive maintenance was introduced into Japan from the USA. Nippondenso, part of Toyota, was the first company in Japan to introduce plant wide preventive maintenance in 1960. In preventive maintenance operators produced goods using machines and the maintenance group was dedicated to the work of maintaining those machines. However with the high level of automation of Nippondenso maintenance became a problem as so many more maintenance personnel were now required. So the management decided that the routine maintenance of equipment would now be carried out by the operators themselves. (This is Autonomous maintenance, one of the features of TPM). The maintenance group then focused only on 'maintenance' works for upgrades. The maintenance group performed equipment modification that would improve its reliability. These modifications were then made or incorporated into new equipment. The work of the maintenance group is then to make changes that lead to maintenance prevention. Thus preventive maintenance along with Maintenance prevention and Maintainability Improvement were grouped as Productive maintenance. The aim of productive maintenance was to maximize plant and equipment effectiveness to achieve the optimum life cycle cost of production equipment. Nippondenso already had quality circles which involved the employees in changes. Therefore, now, all employees took part in implementing Productive maintenance. Based on these developments Nippondenso was awarded the distinguished plant prize for developing and implementing TPM, by the Japanese Institute of Plant Engineers (JIPE). This Nippondenso of the Toyota group became the first company to obtain the TPM certifications.

Page 10 of 49 TPM has five goals: 1. Maximize equipment effectiveness. 2. Develop a system of productive maintenance for the life of the equipment, 3. Involve all departments that plan, design, use, or maintain equipment in implementing TPM. 4. Actively involve all employees. 5. Promote TPM through motivational management. TPM identifies the 16 types of waste and then works systematically to eliminate them by making improvements. TPM has 8 pillars of activity, each being set to achieve a “zero” target. These pillars are: 1. Focused improvement (Kobetsu-Kaizen): for eliminating waste 2. Autonomous maintenance (Jishu-Hozen): in autonomous maintenance, the operator is the key player. It involves daily maintenance activities carried out by the operators themselves that prevent the deterioration of the equipment. 3. Planned maintenance: for achieving zero breakdowns 4. Education and training: for increasing productivity 5. Early equipment/product management: to reduce waste occurring implementation of a new machine or the production of a new product

during

the

6. Quality maintenance (Hinshitsu-Hozen): This is actually “maintenance for quality”. It includes the most effective quality tool of TPM: “poka-yoke”, which aims to achieve zero loss by taking necessary measures to prevent loss. 7. Safety, hygiene, and environment: for achieving zero work-related accidents and for protecting the environment. 8. Office TPM: for involvement of all parties to TPM since office processes can be improved in a similar manner as well. TPM Success Measurement - A set of performance metrics which is considered to fit well in a Lean/TPM environment is Overall Equipment Effectiveness, or OEE. 6. Total Quality Management Total Quality Management (TQM) is a business management strategy aimed at embedding awareness of quality in all organizational processes. TQM has been widely used in manufacturing, education, call centers, government, and service industries, as well as NASA space and science programs. TQM is composed of three paradigms:  

Total: Involving the entire organization, supply chain, and/or product life cycle Quality: With its usual definitions, with all its complexities

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Management: The system of managing with steps like Plan, Organize, Control, Lead, Staff, provisioning and organizing.

As defined by the International Organization for Standardization (ISO): "TQM is a management approach for an organization, centered on quality, based on the participation of all its and aiming at long-term success through customer satisfaction, and benefits to all of the organization and to society." ISO 8402:1994 One major aim is to reduce variation from every process so that greater consistency of effort is obtained. In Japan, TQM comprises four process steps, namely: 1. Kaizen – Focuses on "Continuous Process Improvement", to make processes visible, repeatable and measurable. 2. Atarimae Hinshitsu – The idea that "things will work as they are supposed to" (for example, a pen will write). 3. Kansei – Examining the way the applies the product leads to improvement in the product itself. 4. Miryokuteki Hinshitsu – The idea that "things should have an aesthetic quality" (for example, a pen will write in a way that is pleasing to the writer). TQM requires that the company maintain this quality standard in all aspects of its business. This requires ensuring that things are done right the first time and that defects and waste are eliminated from operations. Definition Total Quality Management is the organization wide management of quality. Management consists of planning, organizing, directing, control, and assurance. Total quality is called total because it consists of two qualities: quality of return to satisfy the needs of the shareholders, and quality of products. Zero Defects "Zero Defects" is Step 7 of "Philip Crosby's 14 Step Quality Improvement Process". Although applicable to any type of enterprise, it has been primarily adopted within industry supply chains wherever large volumes of components are being purchased (common items such as nuts and bolts are good examples). The principles of the methodology are four-fold: 1. Quality is conformance to requirements Every product or service has a requirement: a description of what the customer needs. When a particular product meets that requirement, it has achieved quality, provided that the requirement accurately describes what the enterprise and the customer actually need. This technical sense should not be confused with more common usages that indicate weight or goodness or precious materials or some absolute idealized standard. In common parlance, an

Page 12 of 49 inexpensive disposable pen is a lower-quality item than a gold-plated fountain pen. In the technical sense of Zero Defects, the inexpensive disposable pen is a quality product if it meets requirements: it writes, does not skip nor clog under normal use, and lasts the time specified.

2. Defect prevention is preferable to quality inspection and correction The second principle is based on the observation that it is nearly always less troublesome, more certain and less expensive to prevent defects than to discover and correct them. 3. Zero Defects is the quality standard The third is based on the normative nature of requirements: if a requirement expresses what is genuinely needed, then any unit that does not meet requirements will not satisfy the need and is no good. If units that do not meet requirements actually do satisfy the need, then the requirement should be changed to reflect reality. 4. Quality is measured in monetary – the Price of Nonconformance (PONC) The fourth principle is the key to the methodology. Phil Crosby believes that every defect represents a cost, which is often hidden. These costs include inspection time, rework, wasted material and labor, lost revenue and the cost of customer dissatisfaction. When properly identified and ed for, the magnitude of these costs can be made apparent, which has three advantages. First, it provides a cost-justification for steps to improve quality. The title of the book, "Quality is free," expresses the belief that improvements in quality will return savings more than equal to the costs. Second, it provides a way to measure progress, which is essential to maintaining management commitment and to rewarding employees. Third, by making the goal measurable, actions can be made concrete and decisions can be made on the basis of relative return. Acceptance Sampling Acceptance sampling is an important field of statistical quality control that was popularized by Dodge and Romig and originally applied by the U.S. military to the testing of bullets during World War II. If every bullet was tested in advance, no bullets would be left to ship. If, on the other hand, none were tested, malfunctions might occur in the field of battle, with potentially disastrous results. Definition of Lot Acceptance Sampling Dodge reasoned that a sample should be picked at random from the lot, and on the basis of information that was yielded by the sample, a decision should be made regarding the disposition of the lot. In general, the decision is either to accept or reject the lot. This process is called Lot Acceptance Sampling or just Acceptance Sampling. "Attributes" (i.e., defect counting) will be assumed Acceptance sampling is "the middle of the road" approach between no inspection and 100% inspection. There are two major classifications of acceptance plans: by attributes ("go, no-go") and by variables. The attribute case is the most common for acceptance sampling, and will be assumed for the rest of this section.

Page 13 of 49 Important point A point to is that the main purpose of acceptance sampling is to decide whether or not the lot is likely to be acceptable, not to estimate the quality of the lot. Scenarios leading to acceptance sampling Acceptance sampling is employed when one or several of the following hold:  Testing is destructive  The cost of 100% inspection is very high 

100% inspection takes too long

Acceptance Quality Control and Acceptance Sampling It was pointed out by Harold Dodge in 1969 that Acceptance Quality Control is not the same as Acceptance Sampling. The latter depends on specific sampling plans, which when implemented indicate the conditions for acceptance or rejection of the immediate lot that is being inspected. The former may be implemented in the form of an Acceptance Control Chart. The control limits for the Acceptance Control Chart are computed using the specification limits and the standard deviation of what is being monitored. Control of product quality using acceptance control charts According to the ISO standard on acceptance control charts (ISO 7966, 1993), an acceptance control chart combines consideration of control implications with elements of acceptance sampling. It is an appropriate tool for helping to make decisions with respect to process acceptance. The difference between acceptance sampling approaches and acceptance control charts is the emphasis on process acceptability rather than on product disposition decisions. Quality inspection It is the act of monitoring or observing, (usually involving sampling and related sampling plans), a process, procedure, or service to insure compliance with the operational definition and to insure that all customer requirements or internal prerequisites are meet. These activities may include the collecting data using stratified sampling from the item being inspected. Usually execute by the QA, (quality assurance), departments, but not always. Typically employs the use of a control charts using collected data to evaluate the process using statistical process control. It may also require gauge R&R to guarantee that results are consistent and reliable between the measurement device and the person doing the inspection. Quality Inspections can use discrete/attribute data or variable data in the measurements. Quality Assurance Quality assurance is the process of ing or determining whether products or services meet or exceed customer expectations. Quality assurance is a process-driven approach with specific steps to help define and attain goals. This process considers design, development, production, and service. The most popular tool used to determine quality assurance is the Shewhart Cycle, developed by Dr. W. Edwards Deming. This cycle for quality assurance consists of four steps: Plan, Do, Check, and Act. These steps are commonly abbreviated as PDCA.

Page 14 of 49 The four quality assurance steps within the PDCA model stand for:    

Plan: Establish objectives and processes required to deliver the desired results. Do: Implement the process developed. Check: Monitor and evaluate the implemented process by testing the results against the predetermined objectives Act: Apply actions necessary for improvement if the results require changes.

PDCA is an effective method for monitoring quality assurance because it analyzes existing conditions and methods used to provide the product or service customers. The goal is to ensure that excellence is inherent in every component of the process. Quality assurance also helps determine whether the steps used to provide the product or services are appropriate for the time and conditions. In addition, if the PDCA cycle is repeated throughout the lifetime of the product or service, it helps improve internal company efficiency. Quality assurance demands a degree of detail in order to be fully implemented at every step. Planning, for example, could include investigation into the quality of the raw materials used in manufacturing, the actual assembly, or the inspection processes used. The Checking step could include customer , surveys, or other marketing vehicles to determine if customer needs are being exceeded and why they are or are not. Acting could mean a total revision in the manufacturing process in order to correct a technical or cosmetic flaw. Competition to provide specialized products and services results in breakthroughs as well as long-term growth and change. Quality assurance verifies that any customer offering, regardless if it is new or evolved is produced and offered with the best possible materials, in the most comprehensive way, with the highest standards. The goal to exceed customer expectations in a measurable and able process is provided by quality assurance. Quality Circles A Quality Circle is a volunteer group composed of workers (or even students) who meet to discuss workplace improvement, and make presentations to management with their ideas, especially relating to quality of output in order to improve the performance of the organization, and motivate and enrich the work of employees. Typical topics are improving occupational safety and health, improving product design, and improvement in manufacturing process. The ideal size of a quality circle is from eight to ten . Quality circles have the advantage of continuity; the circle remains intact from project to project. Concept and tools of Six Sigma Concept Six Sigma is a business management strategy, originally developed by Motorola, which today enjoys wide-spread application in many sectors of industry. Six Sigma seeks to identify and remove the causes of defects and errors in manufacturing and business processes. It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization ("Black Belts" etc.) who are experts in these methods. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified financial targets (cost reduction or profit increase).

Page 15 of 49 Six Sigma was originally developed as a set of practices designed to improve manufacturing processes and eliminate defects, but its application was subsequently extended to other types of business processes as well. In Six Sigma, a defect is defined as anything that could lead to customer dissatisfaction. The particulars of the methodology were first formulated by Bill Smith at Motorola in 1986. Six Sigma was heavily inspired by six preceding decades of quality improvement methodologies such as quality control, TQM, and Zero Defects, based on the work of pioneers such as Shewhart, Deming, Juran, Ishikawa, Taguchi and others. Like its predecessors, Six Sigma asserts that –  

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Continuous efforts to achieve stable and predictable process results (i.e. reduce process variation) are of vital importance to business success. Manufacturing and business processes have characteristics that can be measured, analyzed, improved and controlled. Achieving sustained quality improvement requires commitment from the entire organization, particularly from top-level management.

Features that set Six Sigma apart from previous quality improvement initiatives include –  

A clear focus on achieving measurable and quantifiable financial returns from any Six Sigma project. An increased emphasis on strong and ionate management leadership and .

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A special infrastructure of "Champions," "Master Black Belts," "Black Belts," etc. to lead and implement the Six Sigma approach.

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A clear commitment to making decisions on the basis of verifiable data, rather than assumptions and guesswork.

The term "Six Sigma" is derived from a field of statistics known as process capability studies. Originally, it referred to the ability of manufacturing processes to produce a very high proportion of output within specification. Processes that operate with "six sigma quality" over the short term are assumed to produce long-term defect levels below 3.4 defects per million opportunities (DPMO). Six Sigma's implicit goal is to improve all processes to that level of quality or better. Six Sigma is a ed service mark and trademark of Motorola, Inc. Motorola has reported over US$17 billion in savings from Six Sigma as of 2006. Other early adopters of Six Sigma who achieved well-publicized success include Honeywell International (previously known as Allied Signal) and General Electric, where the method was introduced by Jack Welch.[8] By the late 1990s, about two-thirds of the Fortune 500 organizations had begun Six Sigma initiatives with the aim of reducing costs and improving quality.[9] In recent years, Six Sigma has sometimes been combined with lean manufacturing to yield a methodology named Lean Six Sigma.

Page 16 of 49 Six Sigma has two key methodologies: DMAIC and DMADV both inspired by Deming's Plan-DoCheck-Act Cycle. DMAIC is used to improve an existing business process; DMADV is used to create new product or process designs. DMAIC The basic methodology consists of the following five steps:  

Define process improvement goals that are consistent with customer demands and the enterprise strategy. Measure key aspects of the current process and collect relevant data.



Analyze the data to cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered.



Improve or optimize the process based upon data analysis using techniques like Design of Experiments.



Control to ensure that any deviations from target are corrected before they result in defects. Set up pilot runs to establish process capability, move on to production, set up control mechanisms and continuously monitor the process.

DMADV The basic methodology consists of the following five steps:  

Define design goals that are consistent with customer demands and the enterprise strategy. Measure and identify CTQs (characteristics that are Critical to Quality), product capabilities, production process capability, and risks.



Analyze to develop and design alternatives, create a high-level design and evaluate design capability to select the best design.



Design details, optimize the design, and plan for design verification. This phase may require simulations.



the design, set up pilot runs, implement the production process and hand it over to the process owners.

DMADV is also known as DFSS, an abbreviation of "Design for Six Sigma".[9] Implementation roles One of the key innovations of Six Sigma is the professionalizing of quality management functions. Prior to Six Sigma, quality management in practice was largely relegated to the production floor and to statisticians in a separate quality department. Six Sigma borrows martial arts ranking terminology to define a hierarchy (and career path) that cuts across all business functions and a promotion path straight into the executive suite.

Page 17 of 49 Six Sigma identifies several key roles for its successful implementation. Executive Leadership includes the CEO and other of top management. They are responsible for setting up a vision for Six Sigma implementation. They also empower the other role holders with the freedom and resources to explore new ideas for breakthrough improvements. 



Champions are responsible for Six Sigma implementation across the organization in an integrated manner. The Executive Leadership draws them from upper management. Champions also act as mentors to Black Belts. Master Black Belts, identified by champions, act as in-house coaches on Six Sigma. They devote 100% of their time to Six Sigma. They assist champions and guide Black Belts and Green Belts. Apart from statistical tasks, their time is spent on ensuring consistent application of Six Sigma across various functions and departments.



Black Belts operate under Master Black Belts to apply Six Sigma methodology to specific projects. They devote 100% of their time to Six Sigma. They primarily focus on Six Sigma project execution, whereas Champions and Master Black Belts focus on identifying projects/functions for Six Sigma.



Green Belts are the employees who take up Six Sigma implementation along with their other job responsibilities. They operate under the guidance of Black Belts.

Tools of Six Sigma  

Affinity Diagram Brainstorming



Calculators



Cause & Effect / Ishikawa / Fishbone



Charters



Control Charts



Contract Management Software



Creativity / Out of the Box Thinking



Design Of Experiment



Document Control



Flow Chart / Flow Charting



FMEA / Risk Assessment



Glossaries



Histogram



Kano Analysis



Organizing Data



Online Statistics Textbooks

Page 18 of 49 

Pareto



Poka Yoke (Mistake Proofing)



Process Map / Process Mapping



Project Charters



Quality Function Deployment / House of Quality



Scatter Diagram / Plot



SIPOC Diagram



Six Sigma Report Templates



Software



and Restraint



Surveys



Thinking Out Of The Box END OF MODULE 1

Module 2 Statistical Quality Control; basic concepts; product control; process control; variations in quality; control charts; types of control charts – mean charts, range charts, P-charts, np chart, C charts; application of control charts. Statistical Quality Control Basic Concepts Statistical Quality Control or Statistical Process Control (SPC) is an effective method of monitoring a process through the use of control charts. Control charts enable the use of objective criteria for distinguishing background variation from events of significance based on statistical techniques. Much of its power lies in the ability to monitor both process center and its variation about that center. By collecting data from samples at various points within the process, variations in the process that may affect the quality of the end product or service can be detected and corrected, thus reducing waste as well as the likelihood that problems will be ed on to the customer. With its emphasis on early detection and prevention of problems, SPC has a distinct advantage over quality methods, such as inspection, that apply resources to detecting and correcting problems in the end product or service. In addition to reducing waste, SPC can lead to a reduction in the time required to produce the product or service from end to end. This is partially due to a diminished likelihood that the final product will have to be reworked, but it may also result from using SPC data to identify bottlenecks, wait times, and other sources of delays within the process. Process cycle time reductions coupled with improvements in yield have made SPC a valuable tool from both a cost reduction and a customer satisfaction standpoint. Statistical Process Control was pioneered by Walter A. Shewhart in the early 1920s. W. Edwards Deming later applied SPC methods in the United States during World War II, thereby

Page 19 of 49 successfully improving quality in the manufacture of munitions and other strategically important products. Deming was also instrumental in introducing SPC methods to Japanese industry after the war had ended. Shewhart created the basis for the control chart and the concept of a state of statistical control by carefully designed experiments. While Dr. Shewhart drew from pure mathematical statistical theories, he understood that data from physical processes seldom produces a "normal distribution curve" (a Gaussian distribution, also commonly referred to as a "bell curve"). He discovered that observed variation in manufacturing data did not always behave the same way as data in nature (for example, Brownian motion of particles). Dr. Shewhart concluded that while every process displays variation, some processes display controlled variation that is natural to the process (common causes of variation), while others display uncontrolled variation that is not present in the process causal system at all times (special causes of variation). Product Control Process Control Process control is a statistics and engineering discipline that deals with architectures, mechanisms, and algorithms for controlling the output of a specific process. For example, heating up the temperature in a room is a process that has the specific, desired outcome to reach and maintain a defined temperature (e.g. 20°C), kept constant over time. Here, the temperature is the controlled variable. At the same time, it is the input variable since it is measured by a thermometer and used to decide whether to heat or not to heat. The desired temperature (20°C) is the set point. The state of the heater (e.g. the setting of the valve allowing hot water to flow through it) is called the manipulated variable since it is subject to control actions. A commonly used control device called a programmable logic controller, or a PLC is used to read a set of digital and anaputs, apply a set of logic statements, and generate a set of analog and digital outputs. Using the example in the previous paragraph, the room temperature would be an input to the PLC. The logical statements would compare the set point to the input temperature and determine whether more or less heating was necessary to keep the temperature constant. A PLC output would then either open or close the hot water valve, an incremental amount, depending on whether more or less hot water was needed. Larger more complex systems can be controlled by a Distributed Control System (DCS) or SCADA system. In practice, process control systems can be characterized as one or more of the following forms: 

Discrete – Found in many manufacturing, motion and packaging applications. Robotic assembly, such as that found in automotive production, can be characterized as discrete process control. Most discrete manufacturing involves the production of discrete pieces of product, such as metal stamping.



Batch – Some applications require that specific quantities of raw materials be combined in specific ways for particular durations to produce an intermediate or end result. One example is the production of adhesives and glues, which normally require the mixing of

Page 20 of 49 raw materials in a heated vessel for a period of time to form a quantity of end product. Other important examples are the production of food, beverages and medicine. Batch processes are generally used to produce a relatively low to intermediate quantity of product per year (a few pounds to millions of pounds). 

Continuous – Often, a physical system is represented though variables those are smooth and uninterrupted in time. The control of the water temperature in a heating jacket, for example, is an example of continuous process control. Some important continuous processes are the production of fuels, chemicals and plastics. Continuous processes, in manufacturing, are used to produce very large quantities of product per year (millions to billions of pounds).

Applications having elements of discrete, batch and continuous process control are often called hybrid applications. Variations in Quality Control Charts In statistical process control, the control chart, also known as the 'Shewhart chart' or 'process-behavior chart' is a tool used to determine whether a manufacturing or business process is in a state of statistical control or not. If the chart indicates that the process is currently under control then it can be used with confidence to predict the future performance of the process. If the chart indicates that the process being monitored is not in control, the pattern it reveals can help determine the source of variation to be eliminated to bring the process back into control. A control chart is a specific kind of run chart that allows significant change to be differentiated from the natural variability of the process. This is key to effective process control and improvement. The control chart is one of the seven basic tools of quality control (along with the histogram, Pareto chart, check sheet, cause-and-effect diagram, flowchart, and scatter diagram). A control chart consists of the following:  



Points representing measurements of a quality characteristic in samples taken from the process at different times [the data] A centre line, drawn at the process characteristic mean which is calculated from the data Upper and lower control limits (sometimes called "natural process limits") that indicate the threshold at which the process output is considered statistically 'unlikely'

The chart may contain other optional features, including:  



Upper and lower warning limits, drawn as separate lines, typically two standard deviations above and below the centre line Division into zones, with the addition of rules governing frequencies of observations in each zone Annotation with events of interest, as determined by the Quality Engineer in charge of the process's quality

Page 21 of 49 

If the process is in control, all points will plot within the control limits. Any observations outside the limits, or systematic patterns within, suggest the introduction of a new (and likely unanticipated) source of variation, known as a special-cause variation. Since increased variation means increased quality costs, a control chart "signaling" the presence of a special-cause requires immediate investigation.



The control limits tell you about process behavior and have no intrinsic relationship to any specification targets or engineering tolerance. In practice, the long-term process mean (and hence the centre line) may not coincide exactly with the ideal value (or target) of the quality characteristic because equipment simply can't deliver the process characteristic at the desired level or because it's too costly to put the process on target.



Control charts omit specification limits or targets because of the tendency of those involved with the process (e.g., machine operators) to focus on performing to specification when in fact the least-cost course of action is to keep process variation as low as possible. Attempting to make a process whose natural centre is not the same as the target increases process variability and costs significantly and is the cause of much inefficiency in operations. Process capability studies do examine the relationship between the natural process limits (the control limits) and specifications, however.



The purpose of control charts is to allow simple detection of events that are indicative of actual process change. This can be difficult where the process characteristic is continuously varying; the control chart provides statistically objective criteria of change. When change is detected then if the change is good its cause should be identified and possibly become the new way of working, where the change is bad then its cause should be identified and eliminated. The purpose in adding warning limits or subdividing the control chart into zones is to provide early notification if something is amiss. Instead of immediately launching a process improvement effort to determine whether special causes are present, the Quality Engineer may temporarily increase the rate at which samples are taken from the process output until it's clear that the process is truly in control. Note that with three sigma limits, one expects to be signaled approximately once out of every 370 points on average, just due to common-causes.

The control chart is intended as a heuristic. Deming insisted that it is not a hypothesis test and is not motivated by the Neyman-Pearson lemma. He contended that the dist nature of population and sampling frame in most industrial situations compromised the use of conventional statistical techniques. Deming's intention was to seek insights into the cause system of a process ...under a wide range of unknowable circumstances, future and past.... He claimed that, under such conditions, 3-sigma limits provided ... a rational and economic guide to minimum economic loss... from the two errors: 1. Ascribe a variation or a mistake to a special cause when in fact the cause belongs to the system (common cause). (Also known as a Type I error) 2. Ascribe a variation or a mistake to the system (common causes) when in fact the cause was special. (Also known as a Type II error) Types of Control charts Mean Chart In this chart the sample means are plotted in order to control the mean value of a variable

Page 22 of 49 P-chart A p-chart is an attributes control chart used with data collected in subgroups of varying sizes. Because the subgroup size can vary, it shows a proportion on nonconforming items rather than the actual count. P-charts show how the process changes over time. The process attribute (or characteristic) is always described in a yes/no, /fail, go/no go form. For example, use a p-chart to plot the proportion of incomplete insurance claim forms received weekly. The subgroup would vary, depending on the total number of claims each week. Pcharts are used to determine if the process is stable and predictable, as well as to monitor the effects of process improvement theories. P-charts can be created using software programs like SQack and CHART runner. Use p-charts when you can answer yes to these questions: 1. Do you need to assess system stability? 2. Is the data a count of nonconforming items per subgroup? 3. Can the counts be converted to proportions? 4. Are there only two outcomes to any given check? 5. Is the time order of subgroups preserved? np chart The use of attribute control charts arises when items are compared with some standard and then are classified as to whether they meet that standard or not. The Np control chart is used to determine if the rate of nonconforming product is stable, and will detect when a deviation from stability has occurred. There are those who argue that there should only be an Upper Control Limit (UCL), and NOT a Lower Control Limit (LCL) since rates of nonconforming product outside the LCL is actually a good thing. However, if we treat the LCL violations as another search for an assignable cause, we could learn where lower nonconformity rates lie and perhaps eliminate them further. There is a difference between a "P Chart" and an "Np Chart". A P chart is one that shows the fraction defective (p), whereas the Np chart shows the NUMBER of defectives (Np). They are practically the same thing with the exception that an Np chart is used when the size of the subgroup (N) is constant, and a P chart is used when it is NOT constant. Steps in Constructing an np Chart  STEP #1 - Collect the data recording the number inspected (N) and the number of defective products (Np). Divide the data into subgroups. Usually, the data is grouped by date or by lot numbers. The subgroup size (N) should be over 50, and it is strongly recommended you stick with the constant sample size of 100 for subgroups.  STEP #2 - Record the number of defectives on a chart or spreadsheet, along with the subgroup size. 

STEP #3 - Record the number of defectives for each subgroup and record on the data sheet. Then total both columns, from our example above you can see we had 272 defects, and 25 groups of 100 = 2500 total parts.

Page 23 of 49 Use the following formula to determine your Pbar, (P) and to determine the percentage defective:

NP = number of defectives Total Parts Inspected

= Np N

To indicate as a percentage, multiply your answer by 100.  STEP #4 - Compute the Control Limits using the formula below:



STEP #5 - Draw in the Control Limits and plot the number of defective parts listed in our chart above. Connect the dots and observe the chart to determine if there are any points out of the control limits.

So that you can fully understand what the graph looks like as plotted, I have attached the actual graph of this exercise for you, using the data from the chart above. Notice that there is one point that is actually over the Upper Control Limit and thus indicates a point "out-ofcontrol".

C chart PURPOSE Generates a (Poisson) counts control chart. The purpose of a c chart is to determine the stability of "counted" data when the opportunity is large compared to the actual number of defects (e.g. injuries per month or falls per month). DESCRIPTION A C chart is a data analysis technique for determining if a measurement process has gone out of statistical control. The C chart is sensitive to changes in the number of defective items in the measurement process. The “C” in C CONTROL CHART stands for “counts” as in defectives per lot. The C control chart consists of:  Vertical axis = the number defective for each sub-group;  Horizontal axis = sub-group designation. The C chart assumes that each sub-group has an equal sample size (this sample size does not need to be specified). A sub-group is

Page 24 of 49  

Typically a time sequence (e.g., the number of defectives in a daily production run where each day is considered a sub-group). If the Times are equally spaced, the horizontal axis variable can be generated as a sequence (e.g., LET X = SEQUENCE 1 N where N is the Number of sub-groups).

In addition, horizontal lines are drawn at the mean number of defectives and at the upper and lower control limits. NOTES  The distribution of the number of defective items is assumed to be Poisson. This assumption is the basis for the calculating the upper and lower control limits.  The U CONTROL CHART is similar to the C CONTROL chart. The distinction is that the C CONTROL CHART is used when the material being measured is constant in area and the sub-groups have equal size. The U CONTROL CHART is used when either of these assumptions is not valid.  The attributes of the 4 traces that make up the C control chart are controlled by the standard LINES, CHARACTERS, SPIKES, and BAR commands. Trace 1 is the response variable, trace 2 is the mean line, and traces 3 and 4 are the upper and lower control limits.  Some analysts prefer to draw the response variable as a character or a spike rather than a connected line. Application of control charts Control charts are graphic illustrations of data collected from a process over time, thereby providing running records of performance. Examples of ing processes where control charts are useful include the issuance of invoices and other ing documents, the preparation of tax returns, and various auditing processes. Benefits of using control charts to monitor ing processes include higher quality services, reduced costs, and higher profitability. How Control Charts Work Control charts are useful for analyzing and controlling repetitive processes because they help to determine when corrective actions are needed. Because they display running records of performance, control charts provide numerous types of information to management. For example, control charts are useful for: 1. Pinpointing errati or unpredictable processes; 2. Obtaining warning of impending trouble, such as an unexpected change in a process; 3. Evaluating product (service) consistency over time; 4. Decreasing performance variability in a process, thereby decreasing the level of postprocess inspection of the output generated by the process; 5. Determining the cause of trouble when a process is generating output which has errors and mistakes; and 6. Knowing when a process is doing the best that can be expected from it. (1)

Page 25 of 49 A control chart is a graph that contains a centerline, and upper and lower control limits. The centerline represents the process average. The control limits represent the upper and lower boundaries of acceptability around the centerline. The horizontal axis represents sample numbers or points in time, and the vertical axis represents measurements from samples. Control charts are usually based on data collected from samples of a process. After a sufficient number of samples are drawn and the data is plotted on a control chart, the stability of the process is evaluated. A process which is stable is deemed to be "in control" whereas an "out of control" process is unstable, and therefore, unpredictable. Many ing and financial processes which are repetitive in nature can also be evaluated using similar charts. These processes might include: 1. Number of invoices processed per period; 2. Time required preparing a monthly statement; 3. Average age of s receivable; 4. Number of purchase discounts lost; and 5. Sales returns per salesperson, when commissions are based on the amount of gross sales. Once ants learn the basics of statistical quality control and how easy control charts are to prepare, they can readily identify other repetitive processes involved in the ing function in which control charts will be useful as a control technique. Benefits of Understanding Control Charts Because many manufacturers are now using control charts to evaluate their processes, ants have to understand statistical process control if they are going to continue to provide maximum services to their employers or clients. In addition, ants will undoubtedly find many uses for control charts within their departments or firms. If the quality of ing processes is improved by using statistical methods, firms should experience higher profitability. This increase in profitability will occur because of an increase in the quality of ing services and a reduction in the costs incurred to provide the services. To remain competitive in today's environment, all departments, including ing, must try to provide high quality services and products at the lowest possible cost.

END OF MODULE 2

Module 3 Total Quality Management: Strategic Quality Planning; Organizing for TQM; Training for TQM; Kaizen; benchmarking; TQM in service organization; Implementing TQM. Quality standards: ISO 9000; Quality system under ISO 9000; ISO 14000; ISO certification process; Quality awards: Balding Award; Deming’s Prize

Page 26 of 49 Total Quality Management Total Quality Management (TQM) has been one of the most influential methods used in managing business processes over the last 30 years. It has been incorporated as a vital component, in the management systems of some of the world's most successful enterprises. In trying to define TQM is it is well worth considering the relevance and meaning of the three words in its title. Total - The responsibility for achieving Quality rests with everyone a business no matter what their function. It recognizes the necessity to develop processes across the business, that together lead to the reliable delivery of exact, agreed customer requirements. This will achieve the most competitive cost position and a higher return on investment. Quality - The prime task of any business is to understand the needs of the customer, then deliver the product or service at the agreed time, place and price, on every occasion. This will retain current customers, assist in acquiring new ones and lead to a subsequent increase in market share. Management - Top management lead the drive to achieve quality for customers, by communicating the business vision and values to all employees; ensuring the right business processes are in place; introducing and maintaining a continuous improvement culture. To gain an understanding of TQM, it is worth looking at how it developed and the impact of some of the main management "gurus" over the years. What is total quality management? ISO 8402:1994 defines total quality management (TQM) as a management approach of an organisation centred on quality, based on the participation of all its and aiming at long-term success. This is achieved through customer satisfaction and benefits to all of the organisation and to society. In other words, TQM is a philosophy for managing an organisation in a way which enables it to meet stakeholder needs and expectations efficiently and effectively, without compromising ethical values. TQM is a way of thinking about goals, organisations, processes and people to ensure that the right things are done right first time. This thought process can change attitudes, behaviour and hence results for the better. What TQM is not? TQM is not a system, a tool or even a process. Systems, tools and processes are employed to achieve the various principles of TQM.

What does TQM cover? The total in TQM applies to the whole organisation. Therefore, unlike an ISO 9000 initiative which may be limited to the processes producing deliverable products, TQM applies to every

Page 27 of 49 activity in the organisation. Also, unlike ISO 9000, TQM covers the soft issues such as ethics, attitude and culture. What is the TQM philosophy? There are several ways of expressing this philosophy. There are also several gurus whose influence on management thought in this area has been considerable, for example Deming, Juran, Crosby, Feigenbaum, Ishikawa and Imai. The wisdom of these gurus has been distilled into eight principles defined in ISO 9000:2000. The principles of quality management: There are eight principles of quality management: 



  

  

Customer-focused organisation - organisations depend on their customers and therefore should understand current and future customer needs, meet customer requirements and strive to exceed customer expectations Leadership - leaders establish unity of purpose, direction and the internal environment of the organisation. They create the environment in which people can become fully involved in achieving the organisation's objectives Involvement of people - people at all levels are the essence of an organisation and their full involvement enables their abilities to be used for the organisation's benefit Process approach - a desired result is achieved more efficiently when related resources and activities are managed as a process system approach to management - identifying, understanding and managing a system of interrelated processes for a given objective contributes to the effectiveness and efficiency of the organisation continual improvement - continual improvement is a permanent objective of an organisation factual approach to decision making - effective decisions are based on the logical and intuitive analysis of data and information mutually beneficial supplier relationships - mutually beneficial relationships between the organisation and its suppliers enhance the ability of both organisations to create value

How does TQM differ from the EQA model? The European Quality Award model is used to assess business excellence. Business excellence is the result of adopting a TQM philosophy and realigning the organisation towards satisfying all stakeholders (customers, owners, shareholders, suppliers, employees and society). The quality award criteria offer measures of performance rather than a methodology. Why should a company adopt TQM? Adopting the TQM philosophy will:     

make an organisation more competitive establish a new culture which will enable growth and longevity provide a working environment in which everyone can succeed reduce stress, waste and friction build teams, partnerships and co-operation

Page 28 of 49 When should a company adopt TQM? TQM can be adopted at any time after executive management has seen the error of its ways, opened its mind and embraced the philosophy. It cannot be attempted if management perceives it as a quick fix, or a tool to improve worker performance. How should a company adopt TQM? Before TQM is even contemplated TQM will force change in culture, processes and practice. These changes will be more easily facilitated and sustained if there is a formal management system in place. Such a system will provide many of the facts on which to base change and will also enable changes to be implemented more systematically and permanently. The first steps In order to focus all efforts in any TQM initiative and to yield permanent benefits, a company must answer some fundamental questions:      

What What What What What What

is its purpose as a business? is its vision for the business? is its mission? are the factors upon which achievement of its mission depends? are its values? are its objectives?

A good way to accomplish this is to take top management off site for a day or two for a brainstorming session. Until management shares the same answers to these questions and has communicated them to the workforce there can be no guarantee that the changes made will propel the organisation in the right direction. Methodology There are a number of approaches to take towards adopting the TQM philosophy. The teachings of Deming, Juran, Taguchi, Ishikawa, Imai, and Oakland etc can all help an organisation realign itself and embrace the TQM philosophy. However, there is no single methodology, only a bundle of tools and techniques. Examples of tools include:     

flowcharting statistical process control (SPC) Pareto analysis cause and effect diagrams employee and customer surveys

Examples of techniques include:  

benchmarking cost of quality

Page 29 of 49   

quality function deployment failure mode effects analysis design of experiments

Measurements After using the tools and techniques an organisation needs to establish the degree of improvement. Any number of techniques can be used for this including self-assessment, audits and SPC. Pitfalls TQM initiatives have been prone to failure because of common mistakes. These include:     

allowing external forces and events to drive a TQM initiative an overwhelming desire for quality awards and certificates organising and perceiving TQM activities as separate from day-to-day work responsibilities treating TQM as an add-on with little attention given to the required changes in organisation and culture senior management underestimating the necessary commitment to TQM

Strategic Quality Planning Strategic quality planning is a business planning methodology used to formulate, deploy, and achieve business objectives by concentrating resources on priority items. It does not take the place of strategic planning, but instead offers the bridge from strategy to actions by linking business activities to the long term view of the company. (a.k.a. policy management, policy deployment, Hoshin planning)

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Benefits 1. Built upon a thorough understanding of the business, leveraging both the voice of the customer and the voice of the business 2. Requires establishing champions, indicators, targets, methods to improve, and asg responsibilities. 3. Emphasis on the results but possessing an extreme curiosity of how the results were achieved Organizing for TQM Training for TQM In the 80's and 90's TQM was promoted in the U.S.A. through the "Baldridge Award" and in Europe through the European Quality Award. The main elements in the practice of TQM can be highlighted by the principles they used for auditing companies. These can be summed up as follows: 1 • The customer defines quality and this is the start point 2 • The senior management team is responsible for taking the lead in setting the company strategy, values and culture with regard to quality 3 • Quality depends upon the design and execution of systems and processes to a high standard 4 • A key part of the philosophy is that of the need for continuous improvement and the need to reach for continually higher standards. 5 • Leadership in quality can only be achieved through management setting clear goals and forming the strategic and operational plans to achieve them. 6 • Understand the processes that drive your business and base your decisions on facts 7 • Involve employees at all levels in quality improvement activities through appropriate education, training and communication 8 • Key parts of quality systems include deg quality into processes and error prevention 9 • The shortening of response times for all processes is an objective of improvement efforts 10 • Companies should communicate with and involve their suppliers in achieving their quality targets TQM programmes adopt a similar approach to that below 1 1. Gain top level commitment in the business 2 2. Create the awareness of the need and opportunity for quality improvement and set goals 3 3. Organize to achieve these goals, for example establishing a quality council, quality improvement teams or project teams. 4 4. Train everyone in the organization, starting with the management team on the philosophy and tools and techniques 5 5. Put the resources behind applying them Quality programmes typically include:

Page 31 of 49 1 • Identifying and confirming customer requirements and identifying problems and opportunities in meeting these. Gain understanding in the concept of the internal customer and meeting their requirements. 2 • Tools for understanding processes. For example, process modeling tools. How to build error prevention into work processes 3 • Measurement tools, including check sheets, run charts, sampling and data collection. The use of discreet or continuous data 4 • Calculating the "cost of quality" or "price of non-conformance" which defines the cost saving opportunity 5 • Information analysis techniques such as run charts, Pareto charts, cause and effect diagrams, flow charts 6 • Problem solving techniques such as brainstorming, tree diagrams 7 • Improvement Planning through teams and planning tools such as Gantt charts and other project planning techniques. 8 • Controlling the work processes. The use of simple Statistical Process Control techniques and control charts which can be used by shop floor personnel 9 • Communicate the results, recognize people who have been involved in success and incorporate improvements into the companies processes and systems 10 • Maintain the commitment to continuous improvement. After each success, go back and look for more! Over time the use of benchmarking and balanced scorecard has also been incorporated into TQM programmes by a number of companies. Business Systems Many of the practitioners of TQM have successfully incorporated it into their culture, business systems and processes. It has provided a means of planning and controlling their business and auditing its performance. Below is an example of how such a business system might look. Evaluating TQM Evidence and reports of the success of TQM over the years have been mixed. After the strong uptake in the USA during the second half of the 80's and the early 90's there were signs of discontent and waning of interest. This may have been a result of what was perceived as the poor fit between TQM and the new industrial imperatives of the 1990's. An article in the Economist observes "The most ardent adherents of quality are finding that TQM does not readily blend with wave after wave of restructuring, downsizing and re-engineering. And the challenge of developing products and bringing them, to market even more swiftly, especially in industries were prices are tumbling, such as computers, adds to the strain on TQM" The experience of downsizing, business re-engineering undoubtedly created job insecurity and de-motivation amongst employees, thereby undermining the employee involvement essential to any successful TQM programme. The experience of companies such as Xerox and BA who both were regarded as having successful TQM programmes found it difficult to maintain the level of commitment from their staff which is one of the pre-requisites of continuing its TQM programme. Many companies found themselves in a position where they believed it necessary to make major structural changes to their organizations in a relatively short space of time. IBM, for example halved their workforce in a period of ten years. The comparison between re-

Page 32 of 49 engineering/downsizing/de-layering on the one hand and TQM on the other is an interesting one. Both types of process are aimed at meeting customer requirements in a cost effective manner. Both concentrate on the processes necessary to deliver the outputs to customers. They strongly diverge however in their strategies for change with TQM adopting the continuous improvement route and re-engineering utilizing immediate, radical, mega-change. There have been debates about the success or otherwise of TQM programmes over the years. Studies have been carried out, for example by the by the US General s Office covering American companies and in the UK by The Bradford Management Centre. These have found that companies that had fully adopted Total Quality Management programmes produced significantly better bottom line results than comparable companies who had not taken that approach. A number of studies by academics and consultants also identified that a common cause of failure of Total Quality Management programmes was simply down to either poor management or a lack of commitment to quality. There were, and still are, a large number of company directors who believe that "quality is not their responsibility". Total Quality Management today Whilst the number of companies today who are openly practicing major programmes under the banner of Total Quality Management has greatly declined from the late 80's and early 90's, its philosophy and management tools it utilizes are just as evident. To many companies, it has become the way they manage and not "an external programme" which was one of the objectives and measure of its success. Likewise, companies recognizing the need to improve their business performance are customizing Total Quality Management principles and practices to suit their own particular needs and circumstances and building their own internal programmes. This has avoided the potential dangers of the "grand programme" and jargon that can alienate the employees. Alongside this is the success of 6 Sigma programmes which bear great similarity in of their objectives, people involvement and the tools and techniques used. In fact, some believe 6 Sigma to be a form of Total Quality Management. The principles of Total Quality Management are as relevant to work process management today as they have ever been, particularly when considered alongside learning from other techniques such as lean manufacturing. It is essential that programmes are structured to meet the needs and situations of individual companies. Whilst some may benefit from a fully integrated programme, others have realized that there are significant payoffs to be gained from a more modest or tailored approach designed to solve specific problems or achieve defined, targeted improvements. The scope and scale are up to the client company to choose. Kaizen Kaizen ("improvement") is a Japanese philosophy that focuses on continuous improvement throughout all aspects of life. When applied to the workplace, Kaizen activities continually improve all functions of a business, from manufacturing to management and from the CEO to the assembly line workers. By improving standardized activities and processes, Kaizen aims to eliminate waste. Kaizen was first implemented in several Japanese businesses during the country's recovery after World War II, including Toyota, and has since spread to businesses throughout the world. Kaizen is a daily activity, the purpose of which goes beyond simple productivity improvement. It is also a process that, when done correctly, humanizes the workplace, eliminates overly hard work ("muri"), and teaches people how to perform experiments on their work using the scientific method and how to learn to spot and eliminate waste in business processes.

Page 33 of 49 To be most effective kaizen must operate with three principles in place:  

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consider the process and the results (not results-only) so that actions to achieve effects are surfaced; systemic thinking of the whole process and not just that immediately in view (i.e. big picture, not solely the narrow view) in order to avoid creating problems elsewhere in the process; and A learning, non-judgmental, non-blaming (because blaming is wasteful) approach and intent will allow the re-examination of the assumptions that resulted in the current process.

People at all levels of an organization can participate in kaizen, from the CEO down, as well as external stakeholders when applicable. The format for kaizen can be individual, suggestion system, small group, or large group. At Toyota, it is usually a local improvement within a workstation or local area and involves a small group in improving their own work environment and productivity. This group is often guided through the kaizen process by a line supervisor; sometimes this is the line supervisor's key role. While kaizen (at Toyota) usually delivers small improvements, the culture of continual aligned small improvements and standardization yields large results in the form of compound productivity improvement. Hence the English usage of "kaizen" can be: "continuous improvement" or "continual improvement." This philosophy differs from the "command-and-control" improvement programs of the midtwentieth century. Kaizen methodology includes making changes and monitoring results, then adjusting. Large-scale pre-planning and extensive project scheduling are replaced by smaller experiments, which can be rapidly adapted as new improvements are suggested. Implementation The Toyota Production System is known for kaizen, where all line personnel are expected to stop their moving production line in case of any abnormality and, along with their supervisor, suggest an improvement to resolve the abnormality which may initiate a kaizen. The cycle of kaizen activity can be defined as:

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standardize an operation → measure the standardized operation (find cycle time and amount of in-process inventory) →

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gauge measurements against requirements →

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innovate to meet requirements and increase productivity →

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standardize the new, improved operations →

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Continue cycle ad infinitum.

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This is also known as the Shewhart cycle, Deming cycle, or PDCA.

Page 34 of 49 Masaaki Imai made the term famous in his book, Kaizen: the Key to Japan's Competitive Success. Kaizen and Management Management has two major components: 1. Maintenance, and 2. Improvement. The objective of the maintenance function is to maintain current technological, managerial, and operating standards. The improvement function is aimed at improving current standards. Under the maintenance function, the management must first establish policies, rules, directives and standard operating procedures (SOPs) and then work towards ensuring that everybody follows SOP. The latter is achieved through a combination of discipline and human resource development measures. Under the improvement function, management works continuously towards revising the current standards, once they have been mastered, and establishing higher ones. Improvement can be broken down between innovation and Kaizen. Innovation involves a drastic improvement in the existing process and requires large investments. Kaizen signifies small improvements as a result of coordinated continuous efforts by all employees. Process-Oriented Thinking vs. Result-Oriented Thinking Kaizen concentrates at improving the process rather than at achieving certain results. Such managerial attitudes and process thinking make a major difference in how an organization masters change and achieves improvements. Quick and Easy Kaizen Quick and Easy Kaizen (or Mini-Kaizen) is aimed at increasing productivity, quality, and worker satisfaction, all from a very grassroots level. Every company employee is encouraged to come up with ideas – however small – that could improve his/her particular job activity, job environment or any company process for that matter. The employees are also encouraged to implement their ideas as small changes can be done by the worker him or herself with very little investment of time. Quick and easy Kaizen helps eliminate or reduce wastes, promotes personal growth of employees and the company, provides guidance for employees, and serves as a barometer of leadership. Each kaizen may be small, but the cumulative effect is tremendous. Benchmarking Benchmarking (also "best practice benchmarking" or "process benchmarking") is a process used in management and particularly strategic management, in which organizations evaluate various aspects of their processes in relation to best practice, usually within their own sector. This then allows organizations to develop plans on how to adopt such best practice, usually with the aim of increasing some aspect of performance. Benchmarking may be a one-off event, but is often treated as a continuous process in which organizations continually seek to challenge their practices. Benchmarking in simplistic is the processes where you compare your process with that of a better process and try to improve the standard of the process you follow to improve quality of the system, product, services etc. A process similar to benchmarking is also used in technical product testing and in land surveying. See the article benchmark for these applications.

Page 35 of 49 In South Korea, The imitation brand commodity etc. is called "Me Too Commodity ", and there is an opinion assumed that it is a result of the benchmarking.”Benchmarking: A continuous, systematic process of evaluating and comparing the capability of one organization with others normally recognized as industry leaders, for insights for optimizing the organizations processes." Performance analysis forms the basis for your current process improvement which enables you to make better software tomorrow. Performance benchmarking removes misconceptions, and lets us see the actual need for improvement. Types of Benchmarking 

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Process benchmarking - the initiating firm focuses its observation and investigation of business processes with a goal of identifying and observing the best practices from one or more benchmark firms. Activity analysis will be required where the objective is to benchmark cost and efficiency; increasingly applied to back-office processes where outsourcing may be a consideration. Financial benchmarking - performing a financial analysis and comparing the results in an effort to assess your overall competitiveness.

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Performance benchmarking - allows the initiator firm to assess their competitive position by comparing products and services with those of target firms.

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Product benchmarking - the process of deg new products or upgrades to current ones. This process can sometimes involve reverse engineering which is taking apart competitors products to find strengths and weaknesses.

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Strategic benchmarking - involves observing how others compete. This type is usually not industry specific meaning it is best to look at other industries.

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Functional benchmarking - a company will focus its benchmarking on a single function in order to improve the operation of that particular function. Complex functions such as Human Resources, Finance and ing and Information and Communication Technology are unlikely to be directly comparable in cost and efficiency and may need to be disaggregated into processes to make valid comparison.

Advantages of benchmarking Benchmarking is a powerful management tool because it overcomes "paradigm blindness." Paradigm Blindness can be summed up as the mode of thinking, "The way we do it is the best because this is the way we've always done it." Benchmarking opens organizations to new methods, ideas and tools to improve their effectiveness. It helps crack through resistance to change by demonstrating other methods of solving problems than the one currently employed, and demonstrating that they work, because they are being used by others. Procedure There is no single benchmarking process that has been universally adopted. The wide appeal and acceptance of benchmarking has led to various benchmarking methodologies emerging. The most prominent methodology is the 12 stage methodology by Robert Camp (who wrote the first book on benchmarking in 1989). The 12 stage methodology consisted of 1. Select subject ahead 2. Define the process

Page 36 of 49 3. Identify potential partners 4. Identify data sources 5. Collect data and select partners 6. Determine the gap 7. Establish process differences 8. Target future performance 9. Communicate 10. Adjust goal 11. Implement 12. Review/recalibrate. The following is an example of a typical shorter version of the methodology: 1. Identify your problem areas - Because benchmarking can be applied to any business process or function, a range of research techniques may be required. They include: informal conversations with customers, employees, or suppliers; exploratory research techniques such as focus groups; or in-depth marketing research, quantitative research, surveys, questionnaires, re engineering analysis, process mapping, quality control variance reports, or financial ratio analysis. Before embarking on comparison with other organizations it essential that you know your own organization's function, process; base lining performance provides a point against which improvement effort can be measured. 2. Identify other industries that have similar processes - For instance if one were interested in improving hand offs in addiction treatment s/he would try to identify other fields that also have hand off challenges. These could include air traffic control, cell phone switching between towers, transfer of patients from surgery to recovery rooms. 3. Identify organizations that are leaders in these areas - Look for the very best in any industry and in any country. Consult customers, suppliers, financial analysts, trade associations, and magazines to determine which companies are worthy of study. 4. Survey companies for measures and practices - Companies target specific business processes using detailed surveys of measures and practices used to identify business process alternatives and leading companies. Surveys are typically masked to protect confidential data by neutral associations and consultants. 5. Visit the "best practice" companies to identify leading edge practices - Companies typically agree to mutually exchange information beneficial to all parties in a benchmarking group and share the results within the group. 6. Implement new and improved business practices - Take the leading edge practices and develop implementation plans which include identification of specific opportunities, funding the project and selling the ideas to the organization for the purpose of gaining demonstrated value from the process. Cost of benchmarking Benchmarking is a moderately expensive process, but most organizations find that it more than pays for itself. The three main types of costs are: 

Visit Costs - This includes hotel rooms, travel costs, meals, a token gift, and lost labor time.

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Time Costs - of the benchmarking team will be investing time in researching problems, finding exceptional companies to study, visits, and implementation. This will take them away from their regular tasks for part of each day so additional staff might be required.

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Benchmarking Database Costs - Organizations that institutionalize benchmarking into their daily procedures find it is useful to create and maintain a database of best practices and the companies associated with each best practice now.

The cost of benchmarking can substantially be reduced through utilizing the many internet resources that have sprung up over the last few years. These aim to capture benchmarks and best practices from organizations, business sectors and countries to make the benchmarking process much quicker and cheaper. Technical benchmarking or Product Benchmarking The technique initially used to compare existing corporate strategies with a view to achieving the best possible performance in new situations (see above), has recently been extended to the comparison of technical products. This process is usually referred to as "Technical Benchmarking" or "Product Benchmarking'. Its use is particularly well developed within the automotive industry ("Automotive Benchmarking"), where it is vital to design products that match precise expectations, at minimum possible cost, by applying the best technologies available worldwide. Many data are obtained by fully disassembling existing cars and their systems. Such analyses were initially carried out in-house by car makers and their suppliers. However, as they are expensive, they are increasingly outsourced to companies specialized in this area. Indeed, outsourcing has enabled a drastic decrease in costs for each company (by cost sharing) and the development of very efficient tools (standards, software). TQM in service organization Each organization must tailor its approach to exploit strengths and concentrate on weaknesses. Activities that are necessary include: 1. A realization that in a global marketplace, customer satisfaction is the key to survival and success. 2. Understanding that quality improvement is key to increased customer satisfaction, increased productivity and reduced cost. Have a clear well-defined objective. 3. The commitment of a leader to the philosophy of TQM. 4. A change in the organization's culture to accept the tenets of TQM. Beware of people who use quality to establish fiefdoms and people who remain in powerful positions but don't get with the program. 5. Training from top to bottom. Use the "five-why". Use statistics wisely and where appropriate. 6. Try not to do too much too soon. 7. Don't take a cookie-cutter approach. Limit the number of consultants and train your employees internally. 8. Focus on the low-hanging fruit. Implementing TQM To be successful implementing TQM, an organization must concentrate on the eight key elements: 1. Ethics

Page 38 of 49 2. Integrity 3. Trust 4. Training 5. Teamwork 6. Leadership 7. Recognition 8. Communication This paper is meant to describe the eight elements comprising TQM. Key Elements TQM has been coined to describe a philosophy that makes quality the driving force behind leadership, design, planning, and improvement initiatives. For this, TQM requires the help of those eight key elements. These elements can be divided into four groups according to their function. The groups are: I. Foundation - It includes: Ethics, Integrity and Trust. II. Building Bricks - It includes: Training, Teamwork and Leadership. III. Binding Mortar - It includes: Communication. IV. Roof - It includes: Recognition. I. Foundation TQM is built on a foundation of ethics, integrity and trust. It fosters openness, fairness and sincerity and allows involvement by everyone. This is the key to unlocking the ultimate potential of TQM. These three elements move together, however, each element offers something different to the TQM concept. 1. Ethics - Ethics is the discipline concerned with good and bad in any situation. It is a twofaceted subject represented by organizational and individual ethics. Organizational ethics establish a business code of ethics that outlines guidelines that all employees are to adhere to in the performance of their work. Individual ethics include personal rights or wrongs. 2. Integrity - Integrity implies honesty, morals, values, fairness, and adherence to the facts and sincerity. The characteristic is what customers (internal or external) expect and deserve to receive. People see the opposite of integrity as duplicity. TQM will not work in an atmosphere of duplicity. 3. Trust - Trust is a by-product of integrity and ethical conduct. Without trust, the framework of TQM cannot be built. Trust fosters full participation of all . It allows empowerment that encourages pride ownership and it encourages commitment. It allows decision making at appropriate levels in the organization, fosters individual risk-taking for continuous improvement and helps to ensure that measurements focus on improvement of process and are not used to contend people. Trust is essential to ensure customer satisfaction. So, trust builds the cooperative environment essential for TQM. II. Bricks Basing on the strong foundation of trust, ethics and integrity, bricks are placed to reach the roof of recognition. It includes: 4. Training - Training is very important for employees to be highly productive. Supervisors are solely responsible for implementing TQM within their departments, and teaching their employees the philosophies of TQM. Training that employees require are interpersonal skills,

Page 39 of 49 the ability to function within teams, problem solving, decision making, job management performance analysis and improvement, business economics and technical skills. During the creation and formation of TQM, employees are trained so that they can become effective employees for the company. 5. Teamwork - To become successful in business, teamwork is also a key element of TQM. With the use of teams, the business will receive quicker and better solutions to problems. Teams also provide more permanent improvements in processes and operations. In teams, people feel more comfortable bringing up problems that may occur, and can get help from other workers to find a solution and put into place. There are mainly three types of teams that TQM organizations adopt: A. Quality Improvement Teams or Excellence Teams (QITS) - These are temporary teams with the purpose of dealing with specific problems that often re-occur. These teams are set up for period of three to twelve months. B. Problem Solving Teams (PSTs) - These are temporary teams to solve certain problems and also to identify and overcome causes of problems. They generally last from one week to three months. C. Natural Work Teams (NWTs) - These teams consist of small groups of skilled workers who share tasks and responsibilities. These teams use concepts such as employee involvement teams, self-managing teams and quality circles. These teams generally work for one to two hours a week. 6. Leadership - It is possibly the most important element in TQM. It appears everywhere in organization. Leadership in TQM requires the manager to provide an inspiring vision, make strategic directions that are understood by all and to instill values that guide subordinates. For TQM to be successful in the business, the supervisor must be committed in leading his employees. A supervisor must understand TQM, believe in it and then demonstrate their belief and commitment through their daily practices of TQM. The supervisor makes sure that strategies, philosophies, values and goals are transmitted down through out the organization to provide focus, clarity and direction. A key point is that TQM has to be introduced and led by top management. Commitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent with the objectives of the company and in creating and deploying well defined systems, methods and performance measures for achieving those goals. III. Binding Mortar 7. Communication - It binds everything together. Starting from foundation to roof of the TQM house, everything is bound by strong mortar of communication. It acts as a vital link between all elements of TQM. Communication means a common understanding of ideas between the sender and the receiver. The success of TQM demands communication with and among all the organization , suppliers and customers. Supervisors must keep open airways where employees can send and receive information about the TQM process. Communication coupled with the sharing of correct information is vital. For communication to be credible the message must be clear and receiver must interpret in the way the sender intended. There are different ways of communication such as: A. Downward communication - This is the dominant form of communication in an organization. Presentations and discussions basically do it. By this the supervisors are able to make the employees clear about TQM. B. Upward communication - By this the lower level of employees are able to provide suggestions to upper management of the affects of TQM. As employees provide insight and constructive criticism, supervisors must listen effectively to correct the situation that comes about through the use of TQM. This forms a level of trust between supervisors and employees.

Page 40 of 49 This is also similar to empowering communication, where supervisors keep open ears and listen to others. C. Sideways communication - This type of communication is important because it breaks down barriers between departments. It also allows dealing with customers and suppliers in a more professional manner. IV. Roof 8. Recognition - Recognition is the last and final element in the entire system. It should be provided for both suggestions and achievements for teams as well as individuals. Employees strive to receive recognition for themselves and their teams. Detecting and recognizing contributors is the most important job of a supervisor. As people are recognized, there can be huge changes in self-esteem, productivity, quality and the amount of effort exhorted to the task at hand. Recognition comes in its best form when it is immediately following an action that an employee has performed. Recognition comes in different ways, places and time such as,  Ways - It can be by way of personal letter from top management. Also by award banquets, plaques, trophies etc.  Places - Good performers can be recognized in front of departments, on performance boards and also in front of top management.  Time - Recognition can give at any time like in staff meeting, annual award banquets, etc. We can conclude that these eight elements are key in ensuring the success of TQM in an organization and that the supervisor is a huge part in developing these elements in the work place. Without these elements, the business entities cannot be successful TQM implementers. It is very clear from the above discussion that TQM without involving integrity, ethics and trust would be a great remiss, and in fact it would be incomplete. Training is the key by which the organization creates a TQM environment. Leadership and teamwork go hand in hand. Lack of communication between departments, supervisors and employees create a burden on the whole TQM process. Last but not the least; recognition should be given to people who contributed to the overall completed task. Hence, lead by example, train employees to provide a quality product, create an environment where there is no fear to share knowledge, and give credit where credit is due is the motto of a successful TQM organization. Quality standards ISO 9000 ISO 9000 is a family of standards for quality management systems. ISO 9000 is maintained by ISO, the International Organization for Standardization and is istered by accreditation and certification bodies. Some of the requirements in ISO 9001 (which is one of the standards in the ISO 9000 family) include  a set of procedures that cover all key processes in the business;  monitoring processes to ensure they are effective;  keeping adequate records;  checking output for defects, with appropriate and corrective action where necessary;  regularly reviewing individual processes and the quality system itself for effectiveness; and  facilitating continual improvement

Page 41 of 49 Quality System under ISO 9000 A company or organization that has been independently audited and certified to be in conformance with ISO 9001 may publicly state that it is "ISO 9001 certified" or "ISO 9001 ed." Certification to an ISO 9000 standard does not guarantee the compliance (and therefore the quality) of end products and services; rather, it certifies that consistent business processes are being applied. Indeed, some companies enter the ISO 9001 certification as a marketing tool. Although the standards originated in manufacturing, they are now employed across a wide range of other types of organizations. A "product", in ISO vocabulary, can mean a physical object, or services, or software. In fact, according to ISO in 2004, "service sectors now by far for the highest number of ISO 9001:2000 certificates - about 31% of the total." The system standards describe what requirements need to be met, not how they are to be met. This allows for diverse organizations to apply the same standards in a manner that reflects the reality of their business structure. In essence, allowing each organization to meet the system requirements by implementing the standards in a manner that suits its own unique needs. Increasingly, certification to an internationally recognized quality management standard like one from the ISO 9000 series is becoming an important part of distinguishing an organization from its competition. The ability to be audited by an independent, third party organization is the foundation of its acceptance worldwide. Companies may now objectively determine an organizations capacity to supply goods or services that meet the specified requirements of the customer. This can attract more business as customers, both new and old; can have increased confidence in your organization's ability to meet their expectations. Often, just having an ISO 9000 certification will automatically qualify an organization as a potential supplier to companies that demand strict conformance to specified requirements. These standards have now become accepted around the world as the benchmark for all quality management systems. ISO 14000 The ISO 14000 environmental management standards exist to help organizations minimize how their operations negatively affect the environment (cause adverse changes to air, water, or land) and comply with applicable laws and regulations. ISO 14001 is the international specification for an environmental management system (EMS). It specifies requirements for establishing an environmental policy, determining environmental aspects and impacts of products/activities/services, planning environmental objectives and measurable targets, implementation and operation of programs to meet objectives and targets, checking and corrective action, and management review. ISO 14000 is similar to ISO 9000 quality management in that both pertain to the process (the comprehensive outcome of how a product is produced) rather than to the product itself. The overall idea is to establish an organized approach to systematically reduce the impact of the environmental aspects which an organization can control. Effective tools for the analysis of environmental aspects of an organization and for the generation of options for improvement are provided by the concept of Cleaner Production. As with ISO 9000, certification is performed by third-party organizations rather than being awarded by ISO directly. The ISO 19011 audit standard applies when auditing for both 9000 and 14000 compliance at once.

Page 42 of 49 ISO certification process ISO does not itself certify organizations. Many countries have formed accreditation bodies to authorize certification bodies, which audit organizations applying for ISO 9001 compliance certification. Although commonly referred to as ISO 9000:2000 certifications, the actual standard to which an organization's quality management can be certified is ISO 9001:2000. Both the accreditation bodies and the certification bodies charge fees for their services. The various accreditation bodies have mutual agreements with each other to ensure that certificates issued by one of the Accredited Certification Bodies (CB) are accepted world-wide. The applying organization is assessed based on an extensive sample of its sites, functions, products, services and processes; a list of problems ("action requests" or "non-compliances") is made known to the management. If there are no major problems on this list, the certification body will issue an ISO 9001 certificate for each geographical site it has visited, once it receives a satisfactory improvement plan from the management showing how any problems will be resolved. An ISO certificate is not a once-and-for-all award, but must be renewed at regular intervals recommended by the certification body, usually around three years. In contrast to the Capability Maturity Model there are no grades of competence within ISO 9001. Quality awards Baldrige Award The Malcolm Baldrige National Quality Award was created by Public Law 100-107, signed into law on August 20, 1987. The Award Program, responsive to the purposes of Public Law 100107, led to the creation of a new public-private partnership. Principal for the program comes from the Foundation for the Malcolm Baldrige National Quality Award, established in 1988.

The Award is named for Malcolm Baldrige, who served as Secretary of Commerce from 1981 until his tragic death in a rodeo accident in 1987. His managerial excellence contributed to long-term improvement in efficiency and effectiveness of government. The Findings and Purposes Section of Public Law 100-107 states that:" 1. The leadership of the United States in product and process quality has been challenged strongly (and sometimes successfully) by foreign competition, and our Nation's productivity growth has improved less than our competitors' over the last two decades. 2. American business and industry are beginning to understand that poor quality costs companies as much as 20 percent of sales revenues nationally and that improved quality of goods and services goes hand in hand with improved productivity, lower costs, and increased profitability. 3. Strategic planning for quality and quality improvement programs, through a commitment to excellence in manufacturing and services, are becoming more and more essential to the well-being of our Nation's economy and our ability to compete effectively in the global marketplace.

Page 43 of 49 4. Improved management understanding of the factory floor, worker involvement in quality, and greater emphasis on statistical process control can lead to dramatic improvements in the cost and quality of manufactured products. 5. The concept of quality improvement is directly applicable to small companies as well as large, to service industries as well as manufacturing, and to the public sector as well as private enterprise. 6. In order to be successful, quality improvement programs must be management-led and customer-oriented, and this may require fundamental changes in the way companies and agencies do business. 7. several major industrial nations have successfully coupled rigorous private-sector quality audits with national awards giving special recognition to those enterprises the audits identify as the very best; and 8. A national quality award program of this kind in the United States would help improve quality and productivity by: a. Helping to stimulate American companies to improve quality and productivity for the pride of recognition while obtaining a competitive edge through increased profits; b. Recognizing the achievements of those companies that improve the quality of their goods and services and providing an example to others; c. Establishing guidelines and criteria that can be used by business, industrial, governmental, and other organizations in evaluating their own quality improvement efforts; and d. Providing specific guidance for other American organizations that wish to learn how to manage for high quality by making available detailed information on how winning organizations were able to change their cultures and achieve eminence." Following the receipt of the Award applications, the first step of the Award process review cycle begins with the Independent Review, in which of the Board of Examiners are assigned to each of the applications. Each application is evaluated independently by Examiners, who write observations relating to the Scoring System. All applicants are then sent through a Consensus Review. A team of Examiners, led by a Senior Examiner, conducts a series of reviews, first managed virtually through a secure Web site and eventually concluded through a focused conference call. The purpose of this series of reviews is for the team to reach consensus on comments and scores that capture the team’s collective view of the applicant’s strengths and opportunities for improvement based on the inputs from the Independent Review. After the Consensus Review process, the of Judges selects applicants to receive site visits based upon the scoring profiles. If an applicant is not selected for Site Visit Review, one of the Examiners on the Consensus Team edits the final consensus report, which becomes the report. Site visits are conducted for the highest-scoring applicants to clarify any uncertainty or confusion the Examiners may have regarding the written application and to that the information in the application is correct.

Page 44 of 49 After the site visit is completed, the team of Examiners prepares a final site visit scorebook. Applications, consensus scorebooks, and site visit scorebooks for all applicants receiving site visits are forwarded to the of Judges. The Judges make final recommendations on which applicants should receive the Award. Following the Judges’ review and recommendations of Award recipients, the Site Visit Team Leader edits the final site visit scorebook, which becomes the report. The Malcolm Baldrige National Quality Award is given by the United States National Institute of Standards and Technology. Through the actions of the National Productivity Advisory Committee chaired by Jack Grayson, it was established by the Malcolm Baldrige National Quality Improvement Act of 1987 - Public Law 100-107 and named for Malcolm Baldrige, who served as United States Secretary of Commerce during the Reagan istration from 1981 until his 1987 death in a rodeo accident. APQC organized the first White House Conference on Productivity, spearheading the creation and design of the Malcolm Baldrige National Quality Award in 1987, and tly istering the award for its first three years. The program recognizes quality service in the business, health care, education, and nonprofit sectors and was inspired by the ideas of Total Quality Management or TQM. This is the only quality award that is actually awarded by the President of the United States. This award and the Ron Brown Award are the two U.S. presidential awards given to corporations. The original stated purposes of the award were to:  promote quality awareness  recognizing quality achievements of the US companies  publicize successful quality strategies The current award criteria are stated to have three important roles in strengthening US competitiveness:  To help improve organizational performance practices, capabilities and results  To facilitate communication and sharing of the best practice information among US organizations of all types  To serve as a working tool for understanding and managing performance and for guiding planning and opportunities for learning The criteria are designed to help organizations use an aligned approach to organizational performance management that results in:  Delivery of ever-improving value to customers, contributing to market success  Improvement in overall organizational effectiveness and capabilities  Organizational and personal learning The seven categories of the criteria are: 1. Leadership 2. Strategic Planning 3. Customer & Market Focus 4. Measurement, Analysis and Knowledge Management 5. Workforce Focus 6. Process Management 7. Results

Page 45 of 49 The award is presented to companies in three categories: manufacturing, service and small businesses. Evaluations done on a 1000 point system categorized under seven parts as given below. Deming’s Prize The Deming prize, established in December 1950 in honor of W. Edwards Deming, was originally designed to reward Japanese companies for major advances in quality improvement. Over the years it has grown, under the guidance of Japanese Union of Scientists and Engineers (JUSE) to where it is now also available to non-Japanese companies, albeit usually operating in Japan, and also to individuals recognized as having made major contributions to the advancement of quality. The awards ceremony is broadcast every year in Japan on national television. Two categories of awards are made annually, the Deming Prize for Individuals and the Deming Application Prize. The W. Edwards Deming Institute states that The Deming Prize is awarded to companies, or divisions of companies, which have demonstrated a distinctive performance improvement through the application of TQM in a given year. The Deming Prize is also awarded to companies that improved their application of quality control and quality management with the pursuit of TQM in a given year. The Deming Application Prize Checklist 1. Policies (1) Quality and quality control policies and their place in overall business management. (2) Clarity of policies (targets and priority measures) (3) Methods and processes for establishing policies (4) Relationship of policies to long - and short - term plans (5) Communication (deployment) of policies, and grasp and management of achieving policies (6) Executives and managers leadership 2. Organization (l) Appropriateness of the organizational structure for quality control and status of employee involvement (2) Clarity of authority and responsibility (3) Status of interdepartmental coordination (4) Status of committee and project team activities (5) Status of staff activities (6) Relationships with associated companies (group companies, vendors, contractors, sales companies, etc.) 3. Information (l) Appropriateness of collecting and communicating external information (2) Appropriateness of collecting and communicating internal information (3) Status of applying statistical techniques to data analysis (4) Appropriateness of information retention (5) Status of utilizing information (6) Status of utilizing computers for data processing

Page 46 of 49 4. Standardization (l) Appropriateness of the system of standards (2) Procedures for establishing, revising and abolishing standards (3) Actual performance in establishing, revising and abolishing standards (4) Contents of standards (5) Status of utilizing and adhering to standards (6) Status of systematically developing, accumulating, handing down and utilizing technologies 5. Human resources (l) Education and training plans and their development and results utilization (2) Status of quality consciousness, consciousness of managing jobs, and understanding of quality control (3) Status of ing and motivating self-development and self-realization (4) Status of understanding and utilizing statistical concepts and methods (5) Status of QC circle development and improvement suggestions (6) Status of ing the development of human resources in associated companies 6. Quality assurance (l) Status of managing the quality assurance activities system (2) Status of quality control diagnosis (3) Status of new product and technology development (including quality analysis, quality deployment and design review activities) (4) Status of process control (5) Status of process analysis and process improvement (including process capability studies) (6) Status of inspection, quality evaluation and quality audit (7) Status of managing production equipment, measuring instruments and vendors (8) Status of packaging, storage, transportation, sales and service activities (9) Grasping and responding to product usage, disposal, recovery and recycling (l0) Status of quality assurance (11) Grasping of the status of customer satisfaction (l2) Status of assuring reliability, safety, product liability and environmental protection 7. Maintenance (l) Rotation of management (PDCA) cycle control activities (2) Methods for determining control items and their levels (3) In-control situations (status of utilizing control charts and other tools) (4) Status of taking temporary and permanent measures (5) Status of operating management systems for cost, quantity, delivery, etc. (6) Relationship of quality assurance system to other operating management systems 8. Improvement (l) Methods of selecting themes (important activities problems and priority issues) (2) Linkage of analytical methods and intrinsic technology (3) Status of utilizing statistical methods for analysis (4) Utilization of analysis results (5) Status of confirming improvement results and transferring them to maintenance/control activities (6) Contribution of QC circle activities

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9. Effects (l) Tangible effects (such as quality, delivery, cost, profit, safety and environment) (2) Intangible effects (3) Methods for measuring and grasping effects (4) Customer satisfaction and employee satisfaction (5) Influence on associated companies (6) Influence on local and international communities l0. Future plans (l) Status of grasping current situations (2) Future plans for improving problems (3) Projection of changes in social environment and customer requirements and future plans based on these projected changes (4) Relationships among management philosophy, vision and long-term plans (5) Continuity of quality control activities (6) Concreteness of future plans THE DEMING APPLICATION PRIZE CHECKLIST (FOR SENIOR EXECUTIVES) l. Understanding (l) Are the objectives of quality control and enthusiasm introduction and promotion clearly defined and well understood? (2) How well do they understand quality control, quality assurance, reliability, product liability, etc.? (3) How well do they understand the importance of the statistical way of thinking and the application of quality control techniques? (4) How well do they understand QC circle activities? (5) How well do they understand the relationship of quality control and the concepts and methods of other management activities? (6) How enthusiastic are they in promoting quality control? How well are they exercising leadership? (7) How well do they understand the status and the characteristics of their company's quality and quality control? 2. Policies (l) How are quality policies and quality control policies established? Where and how do these policies stand in relation to overall business management? (2) How are these policies related to short- and long-term plans? (3) How are these policies deployed throughout the company for their achievement? (4) How do they grasp the status of policy achievement? Are they taking appropriate corrective actions when needed? (5) How do they grasp priority quality issues (priority business issues)? Do they make effective use of diagnostic methods such as top management diagnosis? (6) How well are targets and priority measures aligned with policies? (7) What kind of policies do they employ for establishing cooperative relationships with associated companies? 3. Organization (l) How is the company organized and managed to human resources effectively and efficiently practice quality control? (2) How are the authorities and responsibilities in the organization established?

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Is the allocation of human resources suitable for the organization? How do they strive to make employers happy and satisfied? How do they grasp and evaluate employees capability and motivation levels? How do they strive interdepartmental cooperation? How do they utilize committees and project teams? (7) How do they relate to associated companies? 4. Human resources (l) How clear is the philosophy for hiring, development developing and utilizing human resources? (2) How appropriate are the employee education and training plans? Are the necessary budget and time allocated? (3) How do they communicate the policies for quality control education and training and how do they grasp the status achieving their policies? (4) How do they provide education and training specific to the company's business needs? (5) How well do they understand the importance of employee self- and mutual-development? How do they this effort? (6) How do they strive to develop QC circle activities? (7) How interested are they in developing human resources in associated companies? 5. Implementation (l) What kind of measures do they have for the effective evaluation and efficient implementation of quality control? (2) How well is the overall coordination of quality control and other management systems? (3) How do they grasp the status of improvement in the business processes and the individual steps of these processes so as to provide products and services that satisfy the customer needs? Are they taking necessary corrective actions? (4) How well are the systems for developing new products and services, new technologies and new markets established and managed? (5) How well are the necessary resources secured and allocated for establishing and operating management and information systems? (6) How do they grasp the effects and contributions of quality control to the improvement of business performance? (7) How do they evaluate their employee’s efforts? 6. Corporate social (l) Is the company structured to ensure responsibilities appropriate profits for a long time? (2) How well do they regard employer well being (wage levels, working hours, etc.)? (3) How well do they regard employee self-realization? (4) How well do they strive for co-existence and co-prosperity with associated companies? (5) How well does the company contribute to the local community? (6) How well does the company exert efforts to protect the environment? (7) How well does the company positively impact the international community? 7. Future visions (l) How do they assure the continuity of and future plans quality control? (2) How do they anticipate and cope with changes in surrounding business environment and progress in science and technology? (3) How do they grasp and cope with changes in customer requirements?

Page 49 of 49 (4) How do they consider their employees and help them achieve happiness and satisfaction? (5) How do they consider and manage relationships with associated companies? (6) How do they plan for the future to cope with the items above? (7) How do they utilize quality control to achieve the future plans? END OF MODULE 3