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Total Quality Management - TQM




  Total Quality Management - TQM

                          The quality journey continues……..

                                        Author:
                                  Dr Rhys Rowland-Jones



 Standards in Action
 www.bsieducation.org/standardsinactio
 n
Total Quality Management - TQM



Session Plan
 •   Introduction to concepts of TQM
 •   Standards and TQM
 •   TQM Reasons for failure
 •   Measurement of Quality




 Standards in Action
 www.bsieducation.org/standardsinactio
 n
Total Quality Management - TQM



Total Quality Management

      •   TQM is a philosophy which applies equally to all parts of the
          organization.
      •   TQM can be viewed as an extension of the traditional approach
          to quality.
      •   TQM places the customer at the forefront of quality decision
          making.
      •   Greater emphasis on the roles and responsibilities of every
          member of staff within an organization to influence quality.
      •   All staff are empowered.




 Standards in Action
 www.bsieducation.org/standardsinactio
 n
Total Quality Management - TQM



                    Total Quality Management
                                Doing things right…..




                                         ….FIRST time.
 Standards in Action
 www.bsieducation.org/standardsinactio
 n
                                                         Internetix (2005)
Total Quality Management - TQM



British Standards on TQM
 BS 7850-1:1992
 • Total quality management.
   Guide to management principles.

 BS 7850-2:1994,

 ISO 9004-4:1993
 • Total quality management. Guidelines for quality
   improvement.

 Standards in Action
 www.bsieducation.org/standardsinactio
 n
Total Quality Management - TQM



Elements of TQM
 •   Leadership
       – Top management vision, planning and support.
 •   Employee involvement
       – All employees assume responsibility for the quality of their work.
 •   Product/Process Excellence
       – Involves the process for continuous improvement.




 Standards in Action
 www.bsieducation.org/standardsinactio
 n
Total Quality Management - TQM



Elements of TQM
         •    Continuous Improvement
               – A concept that recognizes that quality improvement is a journey
                 with no end and that there is a need for continually looking for new
                 approaches for improving quality.
         •    Customer Focus on “Fitness for Use”
               – Design quality
                      • Specific characteristics of a product that determine its value in the
                        marketplace.
               – Conformance quality
                      • The degree to which a product meets its design specifications.




 Standards in Action
 www.bsieducation.org/standardsinactio
 n
Total Quality Management - TQM



A fundamental concept of TQM
                from BS 7850 - a ‘Process’

 • “A set of inter-related resources and activities which
   transform inputs into outputs.” (ISO 8402).
 • “Any activity that accepts inputs, adds values to these
   inputs for customers, and produces outputs for these
   customers. The customers may be either internal or
   external to the organization.” (BS 7850)



 Standards in Action
 www.bsieducation.org/standardsinactio
 n
Total Quality Management - TQM



"The Simple Process"
                                              Controls




                        Inputs               Proces              Outputs
                                                s




                                             Resources



                     (Source: BS 7850: 1992, “Total Quality Management”)

 Standards in Action
 www.bsieducation.org/standardsinactio
 n
Total Quality Management - TQM


      Changing Role of the Process Owner
                              Process 1

            Input from        As customer
              supplier

                              Process owner                    Process 1
                                              Output   Input
                              As supplier                      As customer

                                                               Process owner
                                                                               Output to
                                                               As supplier      customer




             (Source: BS 7850: 1992, “Total Quality Management”)

 Standards in Action
 www.bsieducation.org/standardsinactio
 n
Total Quality Management - TQM


        TQM & organizational Cultural Change
Traditional Approach                     TQM
Lack of communication                    Open communications
Control of staff                         Empowerment
Inspection & fire fighting               Prevention
Internal focus on rule                   External focus on customer
Stability seeking                        Continuous improvement
Adversarial relations                    Co-operative relations
Allocating blame                         Solving problems at their roots

 Standards in Action
 www.bsieducation.org/standardsinactio
 n
Total Quality Management - TQM


      Perceived quality is governed by the gap between customers’
       expectations and their perceptions of the product or service




                                                                                                   product or service
                                                                                                   perceptions of the
                           Gap                                                        Gap
       expectations for
        the product or




                                           expectations of




                                                             perceptions of
                                           the product or




                                                             the product or




                                                                                                      Customers’
          Customers’




                                                                                 for the product
                                             Customers’




                                                               Customers’
                          perceptions of
                          the product or




                                                                                  expectations
            service

                            Customers’




                                                                                   Customers’
                                               service




                                                                 service




                                                                                    or service
                              service




           Expectations >                       Expectations =                     Expectations <
            perceptions                          perceptions                        perceptions

       Perceived quality                                                      Perceived quality is
       is poor                                                                             good
 Standards in Action
 www.bsieducation.org/standardsinactio          Source: Slack et al. 2004
 n
Total Quality Management - TQM



      Additional views of Quality in Services
 •   Technical Quality versus Functional Quality
       – Technical quality — the core element of the good or service.

       – Functional quality — customer perception of how the good functions or
         the service is delivered.

 •   Expectations and Perceptions
       – Customers’ prior expectations (generalized and specific service
         experiences) and their perception of service performance affect their
         satisfaction with a service.

             • Satisfaction = (Perception of Performance) – (Expectation)



 Standards in Action
 www.bsieducation.org/standardsinactio
 n
Total Quality Management - TQM

                    Previous              Word of mouth          Image of product
                   Experience            communications             or service



                                             Customer’s                    Customer’s
                                            expectations                   perceptions
                                           concerning a                  concerning the
                                         product or service             product or service
 A “Gap” model
    of Quality                           Customer’s own
                                                                                       Gap 4
                                         specification of
                                             quality
                                                                        The actual product
                                                              Gap 1         or service


             Management’s                  organization’s
             concept of the               specification of
           product or service                 quality
                                                                         Gap 3
                                 Gap 2

 Standards in Action
 www.bsieducation.org/standardsinactio
 n
                                          Source: Parasuraman, Zeithman and Berry. 1985
Total Quality Management - TQM



  Continuous Improvement
       •   Philosophy that seeks to make never-ending
           improvements to the process of converting inputs into
           outputs.
       •   Kaizen: Japanese
           word for continuous
           improvement.




 Standards in Action
 www.bsieducation.org/standardsinactio
 n
Total Quality Management - TQM



Implementing TQM
 • Successful Implementation of TQM
     – Requires total integration of TQM into day-to-day operations.


 • Causes of TQM Implementation Failures
     – Lack of focus on strategic planning and core competencies.
     – Obsolete, outdated organizational cultures.




 Standards in Action
 www.bsieducation.org/standardsinactio
 n
Total Quality Management - TQM



    Obstacles to Implementing TQM
    •   Lack of a company-wide definition of quality.
    •   Lack of a formalized strategic plan for change.
    •   Lack of a customer focus.
    •   Poor inter-organizational communication.
    •   Lack of real employee empowerment.
    •   Lack of employee trust in senior management.
    •   View of the quality program as a quick fix.
    •   Drive for short-term financial results.
    •   Politics and turf issues.


 Standards in Action
 www.bsieducation.org/standardsinactio
 n
Total Quality Management - TQM



          Some criticisms of TQM
   1.      Blind pursuit of TQM programs
   2.      Programs may not be linked to strategies
   3.      Quality-related decisions may not be tied to market
           performance
   4.      Failure to carefully plan a program




 Standards in Action
 www.bsieducation.org/standardsinactio
 n
Total Quality Management - TQM


   PDCA Cycle repeated to create continuous
   improvement
          Performance




                               Plan
                                      Do
                         Act
                               Check
                                           “Continuous”
                                           improvement


                                                      Time
 Standards in Action
 www.bsieducation.org/standardsinactio
 n
Total Quality Management - TQM



Recognizing and rewarding Quality
 • Promotion of high quality goods and services
     – Malcolm Baldrige National Quality Award (MBNQA) (United
       States)
     – Deming Prize (Japan)
     – European Quality Award (European Union)
     – ISO9000 certification




 Standards in Action
 www.bsieducation.org/standardsinactio
 n
Total Quality Management - TQM


The integrated framework of the Baldrige Award criteria




Source: 2004 Criteria for Performance Excellence, U.S. Dept. of Commerce, Baldrige National Quality Program, National Institute of Standards and Technology, Gaithersburg, MD 20899. (www.quality.nist.gov)




 Standards in Action
 www.bsieducation.org/standardsinactio
 n
Total Quality Management - TQM


     Continual improvement of the quality management system
     Continual improvement of the quality management system

          Customers                                                                   Customers
          (and other                        Management                                (and other
          interested                        responsibility                            interested
          parties)                                                                    parties)


                                                              Measurement,
                                   Resource
                                                              analysis and
                                   management                 improvement
                                                                                       Satisfaction

         Requirements

                           Input
                                                 Product                     Output
Key:                                                               Product
Value adding activity                           realisation
information flow



  Standards in Action
  www.bsieducation.org/standardsinactio                  Source: BS EN ISO
  n                                                      9001:2000
Total Quality Management - TQM


Overview of the EFQM Excellence Model




 Standards in Action
 www.bsieducation.org/standardsinactio
 n
Total Quality Management - TQM



Quality Award common elements
 •   All take holistic approach
 •   Customers/people
 •   Measurable characteristics
 •   Visible
 •   Basis taken from TQM




 Standards in Action
 www.bsieducation.org/standardsinactio
 n
Total Quality Management - TQM



Summary
 •   TQM – a way of working
 •   Involves everyone
 •   High prominence on ‘customer’
 •   Awards based upon TQM




 Standards in Action
 www.bsieducation.org/standardsinactio
 n

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Insurers' journeys to build a mastery in the IoT usage
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  • 1. Total Quality Management - TQM Total Quality Management - TQM The quality journey continues…….. Author: Dr Rhys Rowland-Jones Standards in Action www.bsieducation.org/standardsinactio n
  • 2. Total Quality Management - TQM Session Plan • Introduction to concepts of TQM • Standards and TQM • TQM Reasons for failure • Measurement of Quality Standards in Action www.bsieducation.org/standardsinactio n
  • 3. Total Quality Management - TQM Total Quality Management • TQM is a philosophy which applies equally to all parts of the organization. • TQM can be viewed as an extension of the traditional approach to quality. • TQM places the customer at the forefront of quality decision making. • Greater emphasis on the roles and responsibilities of every member of staff within an organization to influence quality. • All staff are empowered. Standards in Action www.bsieducation.org/standardsinactio n
  • 4. Total Quality Management - TQM Total Quality Management Doing things right….. ….FIRST time. Standards in Action www.bsieducation.org/standardsinactio n Internetix (2005)
  • 5. Total Quality Management - TQM British Standards on TQM BS 7850-1:1992 • Total quality management. Guide to management principles. BS 7850-2:1994, ISO 9004-4:1993 • Total quality management. Guidelines for quality improvement. Standards in Action www.bsieducation.org/standardsinactio n
  • 6. Total Quality Management - TQM Elements of TQM • Leadership – Top management vision, planning and support. • Employee involvement – All employees assume responsibility for the quality of their work. • Product/Process Excellence – Involves the process for continuous improvement. Standards in Action www.bsieducation.org/standardsinactio n
  • 7. Total Quality Management - TQM Elements of TQM • Continuous Improvement – A concept that recognizes that quality improvement is a journey with no end and that there is a need for continually looking for new approaches for improving quality. • Customer Focus on “Fitness for Use” – Design quality • Specific characteristics of a product that determine its value in the marketplace. – Conformance quality • The degree to which a product meets its design specifications. Standards in Action www.bsieducation.org/standardsinactio n
  • 8. Total Quality Management - TQM A fundamental concept of TQM from BS 7850 - a ‘Process’ • “A set of inter-related resources and activities which transform inputs into outputs.” (ISO 8402). • “Any activity that accepts inputs, adds values to these inputs for customers, and produces outputs for these customers. The customers may be either internal or external to the organization.” (BS 7850) Standards in Action www.bsieducation.org/standardsinactio n
  • 9. Total Quality Management - TQM "The Simple Process" Controls Inputs Proces Outputs s Resources (Source: BS 7850: 1992, “Total Quality Management”) Standards in Action www.bsieducation.org/standardsinactio n
  • 10. Total Quality Management - TQM Changing Role of the Process Owner Process 1 Input from As customer supplier Process owner Process 1 Output Input As supplier As customer Process owner Output to As supplier customer (Source: BS 7850: 1992, “Total Quality Management”) Standards in Action www.bsieducation.org/standardsinactio n
  • 11. Total Quality Management - TQM TQM & organizational Cultural Change Traditional Approach TQM Lack of communication Open communications Control of staff Empowerment Inspection & fire fighting Prevention Internal focus on rule External focus on customer Stability seeking Continuous improvement Adversarial relations Co-operative relations Allocating blame Solving problems at their roots Standards in Action www.bsieducation.org/standardsinactio n
  • 12. Total Quality Management - TQM Perceived quality is governed by the gap between customers’ expectations and their perceptions of the product or service product or service perceptions of the Gap Gap expectations for the product or expectations of perceptions of the product or the product or Customers’ Customers’ for the product Customers’ Customers’ perceptions of the product or expectations service Customers’ Customers’ service service or service service Expectations > Expectations = Expectations < perceptions perceptions perceptions Perceived quality Perceived quality is is poor good Standards in Action www.bsieducation.org/standardsinactio Source: Slack et al. 2004 n
  • 13. Total Quality Management - TQM Additional views of Quality in Services • Technical Quality versus Functional Quality – Technical quality — the core element of the good or service. – Functional quality — customer perception of how the good functions or the service is delivered. • Expectations and Perceptions – Customers’ prior expectations (generalized and specific service experiences) and their perception of service performance affect their satisfaction with a service. • Satisfaction = (Perception of Performance) – (Expectation) Standards in Action www.bsieducation.org/standardsinactio n
  • 14. Total Quality Management - TQM Previous Word of mouth Image of product Experience communications or service Customer’s Customer’s expectations perceptions concerning a concerning the product or service product or service A “Gap” model of Quality Customer’s own Gap 4 specification of quality The actual product Gap 1 or service Management’s organization’s concept of the specification of product or service quality Gap 3 Gap 2 Standards in Action www.bsieducation.org/standardsinactio n Source: Parasuraman, Zeithman and Berry. 1985
  • 15. Total Quality Management - TQM Continuous Improvement • Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs. • Kaizen: Japanese word for continuous improvement. Standards in Action www.bsieducation.org/standardsinactio n
  • 16. Total Quality Management - TQM Implementing TQM • Successful Implementation of TQM – Requires total integration of TQM into day-to-day operations. • Causes of TQM Implementation Failures – Lack of focus on strategic planning and core competencies. – Obsolete, outdated organizational cultures. Standards in Action www.bsieducation.org/standardsinactio n
  • 17. Total Quality Management - TQM Obstacles to Implementing TQM • Lack of a company-wide definition of quality. • Lack of a formalized strategic plan for change. • Lack of a customer focus. • Poor inter-organizational communication. • Lack of real employee empowerment. • Lack of employee trust in senior management. • View of the quality program as a quick fix. • Drive for short-term financial results. • Politics and turf issues. Standards in Action www.bsieducation.org/standardsinactio n
  • 18. Total Quality Management - TQM Some criticisms of TQM 1. Blind pursuit of TQM programs 2. Programs may not be linked to strategies 3. Quality-related decisions may not be tied to market performance 4. Failure to carefully plan a program Standards in Action www.bsieducation.org/standardsinactio n
  • 19. Total Quality Management - TQM PDCA Cycle repeated to create continuous improvement Performance Plan Do Act Check “Continuous” improvement Time Standards in Action www.bsieducation.org/standardsinactio n
  • 20. Total Quality Management - TQM Recognizing and rewarding Quality • Promotion of high quality goods and services – Malcolm Baldrige National Quality Award (MBNQA) (United States) – Deming Prize (Japan) – European Quality Award (European Union) – ISO9000 certification Standards in Action www.bsieducation.org/standardsinactio n
  • 21. Total Quality Management - TQM The integrated framework of the Baldrige Award criteria Source: 2004 Criteria for Performance Excellence, U.S. Dept. of Commerce, Baldrige National Quality Program, National Institute of Standards and Technology, Gaithersburg, MD 20899. (www.quality.nist.gov) Standards in Action www.bsieducation.org/standardsinactio n
  • 22. Total Quality Management - TQM Continual improvement of the quality management system Continual improvement of the quality management system Customers Customers (and other Management (and other interested responsibility interested parties) parties) Measurement, Resource analysis and management improvement Satisfaction Requirements Input Product Output Key: Product Value adding activity realisation information flow Standards in Action www.bsieducation.org/standardsinactio Source: BS EN ISO n 9001:2000
  • 23. Total Quality Management - TQM Overview of the EFQM Excellence Model Standards in Action www.bsieducation.org/standardsinactio n
  • 24. Total Quality Management - TQM Quality Award common elements • All take holistic approach • Customers/people • Measurable characteristics • Visible • Basis taken from TQM Standards in Action www.bsieducation.org/standardsinactio n
  • 25. Total Quality Management - TQM Summary • TQM – a way of working • Involves everyone • High prominence on ‘customer’ • Awards based upon TQM Standards in Action www.bsieducation.org/standardsinactio n