Operations Management 101: Quality Management - Total Quality Management, TQM Deming Juran Crosby 14 Points

What This Is

Total Quality Management (TQM) is a management approach that focuses on continuous improvement and customer satisfaction. It was pioneered by W. Edwards Deming, Joseph Juran, and Philip Crosby, who emphasized the importance of employee involvement, statistical process control, and a culture of quality. TQM aims to eliminate defects and variability in processes, resulting in higher productivity, reduced costs, and improved customer satisfaction. For example, Toyota's TQM approach has enabled the company to achieve a defect rate of less than 1 ppm (parts per million) in its manufacturing processes.

Key Formulas & Frameworks

• Deming's 14 Points:
  • Point 1: Create a constancy of purpose (focus on long-term quality and customer satisfaction)
  • Point 2: Adopt a new philosophy (emphasize quality and continuous improvement)
  • Point 3: Cease dependence on mass inspection (use statistical process control instead)
  • Point 4: End the practice of awarding business on price tag alone (consider total cost of ownership)
  • Point 5: Improve constantly and forever (emphasize continuous improvement)
  • Point 6: Institute training on the job (provide ongoing training and development)
  • Point 7: Institute leadership (empower employees to take ownership of quality)
  • Point 8: Drive out fear (create a culture of trust and open communication)
  • Point 9: Break down barriers between departments (encourage collaboration and cross-functional teams)
  • Point 10: Eliminate slogans, exhortations, and targets (focus on process improvement rather than slogans)
  • Point 11: Eliminate numerical targets for productivity and quality (focus on process improvement rather than numerical targets)
  • Point 12: Encourage education and self-improvement (emphasize ongoing learning and development)
  • Point 13: Institute a vigorous program of education and self-improvement (provide ongoing training and development)
  • Point 14: Put everybody in the company to work to accomplish the transformation (empower employees to take ownership of quality)
• Juran's Quality Trilogy:
  • Quality Planning: Define quality objectives and develop a quality plan
  • Quality Control: Monitor and control processes to ensure quality
  • Quality Improvement: Continuously improve processes to achieve quality objectives
• Crosby's Quality Management:
  • Definition of Quality: Conformance to requirements
  • Zero Defects: Aim for zero defects in all processes
  • Quality is Free: Quality is a cost of doing business, not an additional expense
• Six Sigma: A methodology for process improvement that aims to reduce defects to 3.4 ppm or less
• Pareto Analysis: A method for identifying the most common causes of defects or problems
• Fishbone Diagram: A tool for identifying the root causes of problems

Step-by-Step Application

1. Conduct a quality audit: Identify areas for improvement and assess current quality levels
2. Develop a quality plan: Define quality objectives and develop a plan to achieve them
3. Implement statistical process control: Use statistical methods to monitor and control processes
4. Conduct a Pareto analysis: Identify the most common causes of defects or problems
5. Develop a fishbone diagram: Identify the root causes of problems and develop a plan to address them
6. Implement a continuous improvement program: Encourage employees to identify and solve problems

Common Mistakes

• Mistake: Focusing on numerical targets for productivity and quality rather than process improvement
• Correction: Focus on process improvement and continuous learning
• Mistake: Not involving employees in the quality improvement process
• Correction: Empower employees to take ownership of quality and involve them in the quality improvement process
• Mistake: Not monitoring and controlling processes to ensure quality
• Correction: Implement statistical process control and monitor processes regularly

Exam / Certification Tips

• Be familiar with Deming's 14 Points: Understand the principles and apply them to real-world scenarios
• Know the difference between push and pull systems: Push systems focus on producing inventory, while pull systems focus on producing to demand
• Understand the concept of Cp and Cpk: Cp is the process capability index, while Cpk is the centering capability index
• Be familiar with the Six Sigma methodology: Understand the DMAIC (Define, Measure, Analyze, Improve, Control) framework and apply it to real-world scenarios

Quick Practice Problem

A company produces 100 units per hour and has a daily demand of 500 units. What is the takt time?

Answer: 0.6 hours (or 36 minutes)

Explanation: Takt time is the time available to produce one unit, which is calculated by dividing the available production time by the demand. In this case, the available production time is 8 hours (assuming a standard 8-hour workday), and the demand is 500 units per day. Therefore, the takt time is 8 hours / 500 units = 0.016 hours per unit, or 0.6 hours per unit.

Last-Minute Cram Sheet

• Deming's 14 Points: A set of principles for quality management
• Juran's Quality Trilogy: A framework for quality management that includes quality planning, quality control, and quality improvement
• Crosby's Quality Management: A philosophy that emphasizes conformance to requirements and zero defects
• Six Sigma: A methodology for process improvement that aims to reduce defects to 3.4 ppm or less
• Pareto Analysis: A method for identifying the most common causes of defects or problems
• Fishbone Diagram: A tool for identifying the root causes of problems
• Takt Time: The time available to produce one unit
• Cp and Cpk: Process capability and centering capability indices
• Push and Pull Systems: Production systems that focus on producing inventory or producing to demand
• Zero Defects: A philosophy that aims for zero defects in all processes