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Chapter 1 - FOUNDATION OF TQM
Transcript of Chapter 1 - FOUNDATION OF TQM
Foundation of TQM DR. W. EDWARDS DEMING
• Pioneered Statistical Process Control (SPC) at Bell Laboratories. Together with Dr. Walter Shewhart, both spent much time together during the late 1920s, 1930s, and 1940s.
• He developed the following 14 points as a theory for management for improvement of quality, productivity, and competitive position 1. Create and Publish the Aims and Purposes of the Organization
Must include investors, customers, suppliers, employees, the community, and a quality philosophy.
Must develop a long-term view of at least ten years and plan to stay in business by having long range goals
2. Learn the New Philosophy
must seek never ending improvement and not accept nonconformance to standards
customer satisfaction is the top priority
must concentrate on defect prevention rather than defect detection 1..A committed and involved management to provide long-term top-to-bottom organizational support. Historical Background of TQM THE DEMING PHILOSOPHY 14 POINTS A business organization can not start the transformation to TQM until it is aware that the quality of the product or service must be improved. Awareness comes in when a business organization loses market share or realizes that quality and productivity go hand-in-hand. It also happens if TQM is mandated by the customer or if management realizes that TQM is a better way to operate a business and compete in domestic and foreign markets.
Automation and other productivity enhancement might not help a business organization if it is unable to market its product or service because of poor quality.
Quality and productivity are not exclusive. Thus, improvements in quality can directly lead to increase productivity and other benefits. Table 1.2 shows this concept. TRANSFORMATION TO TQM INDUSTRIAL REVOLUTION
o W.A Shewhart
o H.F Dodge and H. G. Romig
o American Society for Quality Control
o W. Edwards Deming
o Joseph M. Juran
o first quality control circles
-By the late 1970s and early 1980s
o U.S. managers
o quality renaissance began
-In the 1980s
o automotive industry
Statistical Process Control (SPC)
o Malcolm Baldrige National Quality Award
o Genechi Taguchi
design of experiments (DOE)
-in the 1990s
o car manufacturing industry
o ISO 9000 DEFINITION OF TQM Therefore,
•TQM is the art of managing the whole to achieve excellence.
•Total Quality Management (TQM) is an improvement to the traditional way of doing business. Three words TOTAL
Made up of the whole.
Act, art, or manner of handling, controlling, directing etc. QUALITY
Degree of excellence a product or service provides. The golden rule:
“Do unto others as you would have them do unto you.”
-Confucius MEANING OF QUALITY
When “quality” is used, we usually think of an excellent product or service that satisfies or exceeds our expectations. These expectations are based on the intended
use and the selling price.
Quality can be quantified as follows:
Q = P/E
Where : Q = Quality
P = performance
E = expectations
If Q is greater than 1.0, then the customer has a good feeling about the product or service. Of course, the determination of P and E will most likely be based on the perception of the organization determining performance and the customer determining expectations.
According to ANSI/ASQC standard A3-1987, “quality” is the totality of features and characteristics of a product or service that bear on its ability to satisfy implied or stated needs. Table 1.3 reveals nine (9) dimensions of quality with their meanings and expectations in terms of a slide projector, according to Garvin.
These dimensions are somewhat independent; therefore, a product can be excellent in one dimension and average or poor in other. Very few, if any, products excel in all nine dimensions. 3. Understand the Purpose of Inspection
The objective of inspection is to improve the process and reduce its cost.
Mass inspection is managing for failures and defect prevention is managing for success. 4. Stop Awarding Business Based on Price Alone
Business organizations must stop awarding based on low bid because price has no meaning without quality.
The aim is to have suppliers for each item to develop a long-term relationship of loyalty and trust.
Purchasing agencies must be trained in statistical process control and require it from suppliers. 5. Improve Constantly and Forever the System
Actively find and correct problems so that quality and productivity are continually improved to reduce the cost.
Prevent problems before they will happen. 6. Institute Training
Every personnel must be oriented to the business organization’s philosophy of commitment to never ending improvements. 7. Teach and Institute leadership
One of the responsibilities of management is to improve supervision.
Supervisors should create a positive and supportive one where pride in workmanship can flourish. 8. Drive Out Fear, Create Trust, and Create Climate for Innovation
Management must encourage transparency, effective communication and teamwork.
Fear is caused by a general feeling of being powerless to control important aspects of one’s life.
When employees are treated with love and dignity, fear can be eliminated; they will work for the general good of the business organization. end.. GROUP 1
Acuña, Rose Ann
Guardiano, Rachel Faith
Velez, Edwin 9. Optimize the Efforts of Teams, Groups and Staff Areas
Management must optimize the efforts of teams, work groups, and staffs areas to realize the aims and purposes of the business organization. 10. Eliminate Exhortations for the Work Force
Exhortations that ask for increased productivity without providing specific improvements methods may hinder business organization’s success. 11. Eliminate Numerical Quotas foe Work Force and Management by Objectives
11.1 Eliminate Numerical Quotas for the Work Force
Instead of quotas, management must learn and adopt methods and tools for improvement.
11.2 Eliminate Management by Objective
Instead of Management by Objective (MBO), management must learn the capabilities of
the processes and how to improve them. 12. Remove Barriers that Rob people of Pride of Workmanship
Reasons why workers are losing pride in their workmanship:
•Workers o not know how to relate to the organization’s vision an mission.
•They are being blamed for system problems.
•Poor designs lead to the production of “junk”.
•Inadequate training is provided.
•Punitive supervision exists.
•Inadequate or ineffective equipment is provided for performing the required work. 13. Encourage Education and Self-improvement for Everyone.
What a business organization needs are employees that are improving with education. A long-term commitment to continuously train and educate employees must be made by management. 14. Take Action to Accomplish the Transformation
Management has to adopt the main responsibility for the continuous improvement of the process. IMPEDIMENTS OF TQM comfortable with their present condition.
satisfied with the amount of work being performed, the profits realized, and the perception that the customers are satisfied
they begin to lose market share. It is also possible that they might unknowingly be practicing TQM.
Once a business organization embarks on TQM, there will be a resistance to change.
People become accustomed to doing things in a particular way and it becomes the preferred way.
People become closed to innovations, and TQM is viewed as another thing that is deemed to fail.
Managers fear diminished authority and responsibility. Also, time spent on daily business hinders TQM implementation. It is hard for individuals to change their way of doing things; it is much more difficult for a business organization to make a cultural change.
Thus, a considerable amount of training in the six stated concepts is needed to overcome these impediments to TQM. Also, the channels of communication will need to be improved and developed. Six Basic Concepts of TQM, According to Bill Creech: 2.Unwavering focus on the customer, both internally and externally. 3.Effective involvement and utilization of the entire work force. 4.Continuous improvement of the business and production process 5.Treating suppliers as partners. 6.Establish performance measures for the process. Table 1.1 Old and New Cultures