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SUSTAINABLE DEVELOPMENT OF TOTAL QUALITY MANAGEMENT THROUGH DEMING’S PDSA CYCLE

SUSTAINABLE DEVELOPMENT OF TOTAL QUALITY MANAGEMENT THROUGH DEMING’S PDSA CYCLE. Author: Dr. G. Karuppusami. Abbreviations. 2. What is Quality?. Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy implied or stated needs.

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SUSTAINABLE DEVELOPMENT OF TOTAL QUALITY MANAGEMENT THROUGH DEMING’S PDSA CYCLE

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  1. SUSTAINABLE DEVELOPMENT OF TOTAL QUALITY MANAGEMENT THROUGH DEMING’S PDSA CYCLE Author: Dr. G. Karuppusami

  2. Abbreviations 2

  3. What is Quality? Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy implied or stated needs. ANSI/ASQC STD A3-1987.

  4. What is Quality? • Feigenbaum (1951) and Abbott (1955) defined quality as ‘value’, • Levitt (1972) as ‘conformance to specifications’, • Juran et al. (1974) as ‘fitness for use’, • Crosby (1979) as ‘conformance to requirements’, • Taguchi (1981) as ‘the losses a product imparts to the society from the time the product is shipped’, • Reeves and Bednar, (1994) as ‘the extent to which a product or service meets and/or exceeds a customer’s expectations’ which reflects a shift in focus to customer satisfaction.

  5. Total quality management • Ho (1997) defines the term TQM as: ‘Total = everyone associated with the company is involved in continuous improvement (including its’ customers and suppliers if feasible); Quality = customers’ expressed and implied requirements are met fully; Management = executives are fully committed’.

  6. Motivation for the study The business units are ever increasingly forced to achieve world-class manufacturing capabilities in order to compete and, in many cases, to achieve in the market. One of the means to achieve the world-class manufacturing capability is through the practices of Total Quality Management (Joseph, et al., 1999)

  7. Full TQM (OR) Partial TQM? • The problem with TQM is not whether companies have been converted to the philosophy: many surveys have shown the philosophy being embraced by organizations (Yong & Wilkinson, 1999). The issue relates more acutely to whether these supposedly TQM companies are actually practicing ‘total or partial TQM’ (Wilkinson et al., 1998).

  8. Some obstacles to achieving TQM • Lack of top management support • Lack of customer focus • Lack of employee empowerment • Lack of training

  9. Criteria for the study ‘Quality is one of the twentieth century’s most important management ideas’ (Feigenbaum, 1999) ‘You can’t manage what you don’t measure’ (Wert, 2003)

  10. Critical Success Factors (CSFs) of TQM • CSFs are the critical areas of managerial planning and action that must be practiced to achieve effective quality management in a business unit (Saraph et al., (1989) • CSFs are critical and absolutely essential for the success of TQM. The process stands a good chance of ending in failure if these factors are not part of the management process.

  11. CSFs reported by Saraph et al., (1989) • The role of management leadership and quality policy • Role of quality department • Training • Product / service design • Supplier quality management • Process management • Quality data and reporting • Employee relations

  12. Quality Related Action Programs (QAPs) • Critical success factors of TQM are latent variables, which means they cannot be measured directly. Hence Quality-related Action Programs (QAPs) are generated that represent manifestations of these CSFs. QAPs are the quality management prescriptions.

  13. QAPs of CSF ‘The role of top management leadership and quality policy’ • Top management responsibility for quality performance • Performance evaluation based on quality • Acceptance of responsibility for quality by major dept heads • Degree of participation by dept heads in quality improvement process • Consideration of quality as first priority • Discussion of quality related issues in meetings • Extent to which quality goals and policies are understood • Degree of comprehensiveness of quality plan

  14. CSFs and QAPs of TQM TQM

  15. Sustainable development of TQM • Quinn (2000) describes sustainability as the development that meets present needs without compromising the ability of future generations to meet their own needs. • Without sustainability, there is little benefit to be gained from TQM (Curry et al., 2002). • The focus of maintaining competitive advantage and performance does not simply emphasize the present time, but also the future (Zairi, 2002).

  16. Sustainable development of TQM Sustainability is defined as ‘the ability of an organization to adapt to change in the business environment to capture contemporary best practice methods and to achieve and maintain superior competitive performance’ (Zairi & Liburd 2001).

  17. PDSA Cycle for sustainable development of TQM Step 1: Plan for TQM ACT PLAN Step 4: Take necessary actions to improve the less developed programs of TQM Step 2: Implement TQM DO STUDY Step 3: Study and measure the level of TQM implementation

  18. TQM Implementation Index (TQMII) TQM Implementation Index (TQMII) can be interpreted as the level of TQM implementation of a company on a unit scale. Input is the company’s total quality effort. Output is the level of the performance of the plant. TQMII measures how well a company has implemented its TQM.

  19. Framework for TQMII calculation • The set of CSFs and QAPs implemented by the company. • The list of departments involved in the quality programs. • The level of quality consciousness of the departments. • The degree to which critical quality factors and quality action programs applied.

  20. TQM Implementation space Department, m TQMIIimk Quality Consciousness, k Critical success factor, QAP i

  21. Notations • i = Index of QAPs • Dm = Departments • m = Index of departments • Zm = Ideal weight factor assigned department • Wm = Revised normalized weight of department • Vim = Actual performance of quality-related action programme i in department m

  22. TQMII Algorithm Algorithm developed by Kumar et.al.(2004) is adopted. TQMII algorithm for the firm (or) CSF is as follows. i = 1, 2, 3…..I; m = 1, 2, 3 …. M, I = Total number of QAPs of the firm or CSF

  23. Presentation of a Case Study to illustrate TQMII

  24. Case Study • The suggested PDSA model for TQM implementation was applied to an automotive ancillary company located in South India. • The company is the largest manufacturer of automotive horns in India and has ISO 9002, ISO 14001, ISO/TS 16949:1999 certifications. • Thirteen CSFs and 85 QAPs were selected by the expert committee.

  25. Case Study – CSFs selected • Role of top management and quality policy • Supplier quality management • Customer focus • Process management • Product / service design • Quality data and reporting • Training • Employee relations • Role of quality department • Benchmarking • Information technology analysis • Lean manufacturing • Continuous improvement

  26. TQMII Calculation – Step 1 (Table 1) 1. Compute each department’s normalized quality consciousness weight The calculation for the first the department ‘D1’ is as follows; W1= 10×(0.5×2 + 1×4 + 2.5×6 + 3×8 + 3×10) = 7.4 10×10

  27. TQMII Calculation – Step 2 (Table 1) 2. Compute each department’s quality consciousness state efficiency. The calculation for the first the department ‘D1’ is as follows; QCSE1= (0.5×2 + 1×4 + 2.5×6 + 3×8 + 3×10) = 0.74 10×10

  28. TQMII Calculation – Step 3 (Table 2) 3. Compute TQMII of QAPs i = 1, 2, 3…..I; m = 1, 2, 3 …. M TQMII of QAP 1 is as follows = (9×7.4 + 10×6 + 7×5.81 + 10×5.46 + 10×7.92 + 10×7.7 + 8×5.22 + 9×4.74 + 5×6.86) 10(10 + 10 + 7 + 7 + 9 + 10 + 9 + 6 + 7) = 0.65

  29. TQMII Calculation – Step 4 (Table 2) 4. Calculate TQMII of the CSF or firm as a whole. I = Total number of QAPs of the firm or CSF, i = 1, 2, 3…..I; m = 1, 2, 3 …. M,

  30. Table 1 Department consciousness matrix

  31. Table 2. TQMII Calculation

  32. Table 2. TQMII Calculation contd…

  33. TQMII of the selected organization The combined level of TQM implementation index in the selected organization was assessed as 0.460 on a unit scale

  34. Recommendations as a result of the Study Link the department quality consciousness state efficiency of TQM implementation program to annual incentive scheme. Arrange training program for all the least developed QAPs. Encourage exchange of information and data among departments regarding TQMII. Obtain expert advice about the list of CSFs and QAPs selected for the TQMII analysis. Integrate the TQM programs with the procedures of ISO 9002, ISO 14001, ISO/TS 16949:1999 certifications.

  35. Conclusions • The problem areas of TQM implementation correctly identified by the proposed PDSA method. • The model allows tracking of TQM programs and departments that are substantially impacting the TQM implementation in the company. • Specific recommendations were proposed to bring about improvements in those least developed TQM programs.

  36. References

  37. References contd…

  38. Quality is a Journey, not a Destination

  39. Thanks

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