Total Quality Management Models

Total Quality Management is a combined effort of both top level

management as well as employees of an organization to formulate effective
strategies and policies to deliver high quality products which not only meet
but also exceed customer satisfaction.

Total Quality management enables employees to focus on quality than

quantity and strive hard to excel in whatever they do. According to total
quality management, customer feedbacks and expectations are most
essential when it comes to formulating and implementing new strategies to
deliver superior products than competitors and eventually yield higher
revenues and profits for the organization. There are many models of total
quality management and it is really not necessary that every organization
should select and implement the same model.

Following are the various models of total quality management:

The Deming chain Reaction

 Producing high quality products and services is key for any

organization that wishes to stay in business.

 An importamt goal for any organization is to produce trouble-free

products and servives and delightful products and services. By doing
so, loyalty is created, reduces costs, and allow the firm to further
delight the customers.

 Demings point with the deming chain reaction is to show how

quality improvement impacts the bottom line.

The Jurans trilogy

 Quality planning

 Quality control

 Quality improvement

Jeffrey Angelo Reandelar

MBBA – Strategic Management
  Integrated Model of TQM

Sohal, Tay and Wirth have discussed quality in terms of TQC rather that TQM
but refer control to the management of quality at varius stage of the process.
There are five elements in this model:

 Customer focus

 Management Commitment

 Total Participation: Total employment involvement

 Statistical quality Control

 Systematic Problem Solving process

The successful implementation of Total quality Management model needs

extensive planning and most importantly participation of every single
member who is benefitted out of the organization(Management, suppliers,
clients and even customers). Without the participation of each and every
employee, total quality management model would be a complete failure.

5S HOUSE KEEPING
This is a house keeping technique used to establish and maintain a
productive and quality environment in an organization. This method is
invented in Japan which will give safer, more efficient and more productive
operation results in boosting of morale of workers, job involvement and
satisfaction and ownership of their responsibilities.

Jeffrey Angelo Reandelar

MBBA – Strategic Management
The Seven Traditional tools of Quality Control
There are seven basic quality tools, which can assist an organization
for problem solving and process improvements. The first guru who proposed
seven basic tools was Dr. Kaoru Ishikawa in 1968, by publishing a book
entitled “Gemba no QC Shuho”(Guide to Quality Control) that was concerned
managing quality through techniques and practices for Japanese firms. It was
intended to be applied for “self-study, training of employees by foremen or in
QC reading groups in Japan. It is in this book that the seven basic quality
control tools were first proposed.
1) Check sheets; 2) Graphs (Trend Analysis); 3) Histograms; 4) Pareto
charts; 5) Cause-and-effect diagrams; 6) Scatter diagrams; 7)
Control charts

1. Check Sheets/Tally Sheet

 The function of a check sheet is to present information in an efficient,
graphical format.
 A check sheet is a table or a form used to systematically register data
as it is collected.
Jeffrey Angelo Reandelar
MBBA – Strategic Management
  Check sheets help organize data by category
 Main applications of a check sheet include registering how often
different problems occur and registering the frequency of incidents that
are believed to cause problems.

2. Histograms

 Oakland (2003) stated that histograms show, in a very clear pictorial

way, the frequency with which a certain value or group of values
occurs.
 They can be used to display both attribute and variable data, and are
an effective means of letting the people who operate the process know
the results of their efforts.

3. Scatter Diagrams

 A scatter diagram is a tool for analyzing relationships between two

variables. One variable is plotted on the horizontal axis and the other
is plotted on the vertical axis.
 The pattern of their intersecting points can graphically show
relationship patterns. Most often a scatter diagram is used to prove or
disprove cause-and-effect relationships.
 While the diagram shows relationships, it does not by itself prove that
one variable causes the other.
 In addition to showing possible cause and-effect relationships, a scatter
diagram can show that two variables are from a common cause that is
unknown or that one variable can be used as a surrogate for the other.

Control Charts

 A control chart is a statistical tool used to distinguish between variation

in a process resulting from common causes and variation resulting
from special causes. It presents a graphic display of process stability
or instability over time.

Jeffrey Angelo Reandelar

MBBA – Strategic Management
  One goal of using a Control Chart is to achieve and maintain process
stability.
What are the types of Control Charts?
 There are two main categories of Control Charts, those that display
attribute data, and those that display variables data.
 Attribute Data: This category of Control Chart displays data that result
from counting the number of occurrences or items in a single category
of similar items or occurrences. These “count” data may be expressed
as pass/fail, yes/no, or presence/absence of a defect.
 Variables Data: This category of Control Chart displays values
resulting from the measurement of a continuous variable. Examples of
variables data are elapsed time, temperature, and radiation dose.

4. Pareto Analysis

• Pareto analysis is used to differentiate between the vital few and the
trial many.
• It is based on the concept that 80% of the problems come from 20% of
the items.
• Pareto analysis shows where process improvement should begin- those
problem area with the greater frequency

5. Case And Effect Diagram

 A Cause-and-Effect Diagram, also known as a "Fishbone Diagram“ or

the Ishikawa diagram is a graphical technique for grouping people's
ideas about the causes of a problem.
 The cause and effect diagram is used to explore all the potential or real
causes (inputs) that result in a single effect (output).
 Causes in a cause & effect diagram are frequently arranged into four
major categories:
 manpower, methods, materials, and machinery (for manufacturing)
 equipment, policies, procedures, and people (for administration and
service).

Jeffrey Angelo Reandelar

MBBA – Strategic Management
 6. Stratification / Flow chart

 It can be used to great effect in combination with other techniques,

including histograms and scatter diagrams. If, for example, three shift
teams are responsible for a certain product output ‘stratifying’ the data
into the shift groups might produce histograms that indicate ‘process
adjustments’ were taking place at shift changeovers.

Bench Marking
Benchmarking is a systematic method by which organization can measure
themselves against the best industry practices.  Essence of BM is the
process of borrowing ideas and adapting them to gain competitive
advantage.
Reasons for Bench Marking
 To achieve Business & Competitive Objectives.
 Goals & Objectives Based on External Environment.
 Cost Efficient.
 Continuous Improvement & New Development.

BENEFITS OF BM

 Best Practices incorporated into the process

 Motivation for creativity & innovation
 Technological Breakthrough in one’s industry
 Better professional growth Meet effectively customer requirements
 Assist in attaining competitive position

FMEA ( Failure Mode Effective Analysis)

Failure Mode Effect Analysis is an analytical technique that goes in for

combining Technology and Experience of people to identify foreseen failures
in a product or process and planning to eliminate the Failure.
Definition

Jeffrey Angelo Reandelar

MBBA – Strategic Management
FMEA is a group of activities to understand and evaluate potential failure of
product or process and its effects, and identify actions that eliminate or
reduce the potential failures.
Failure Rate:
 Products follow a pattern of failure.
 There is no information about the reliability (i.e. Failure) of the product.
 Failure Rate is a constant known period of failure that can be found out
using Exponential Distribution
Rt = e – λt Rt = Reliability of survival
Rt = e - t / θ t = Time for operation without failure
λ = Failure rate θ = Mean time to Failure

Problem:
Failure Rate λ = .0002 per hour
What is the probability that it will survive or reliable during the first 200
hours of operations?

Solution:

Rt = e – λt
= 1– (200) (0.0002)
= 96.00 % Reliability of survival

Jeffrey Angelo Reandelar

MBBA – Strategic Management