LECTURE 4: METHODS OF TOTAL QUALITY MANAGEMENT

SIT DOLOR AMET

OUTLINE

 METHODS OF TOTAL QUALITY MANAGEMENT CONT.

 The quality control story

 Scatter-diagram
 Histogram
 Check sheets
 SWOT
 The Cause-Effect diagram – Read this for yourself
 Run/Control charts
 Surveys
 Flow charts
 Failure mode analysis etc.
 QUALITY CONTROL STORY – KAORU ISHIKAWA
 Quality control story or Performance storyboard is a TQM tool used to collect and analyze
data on production and service delivery processes.

 Its aim is to address production and service delivery problems in a structured manner, by
determining the root causes of the problems.

 It also at identifying cases – e.g. the causes of product defects or failures, by detailing
the loses that arises from each identified problem.
 It uses method and technique such as observation and brainstorming in collective meetings
to detail the cost and losses in a matrix diagram.

 Quality control uses several steps – draws on previous/pass production & services delivery
experiences to identify problems and address them. E.g. What has been the experiences
in the past years?
 METHODS OF TOTAL QUALITY MANAGEMENT CONT.
 Quality control story – Steps;
 Plan: 1. Deciding on a theme (establishing goals – Problem
identification);
2. Clarifying the reasons for the problem identified;
3. Assessing the present situation (Is it still a problem?);
4. Analysis (probing into the causes – effect diagram);
5. Establishing corrective measures;  PDCA

 Do: 6. Implementation (Team-work for actions)

 Check: 7. M & E of the results (effective & efficiency of actions)
 Action: 8. Standardization – introduction of standard procedures
9. After-thought and reflection of the problems;
10. Planning for the future
METHODS OF TOTAL QUALITY MANAGEMENT CONT.

 SCATTER-DIAGRAM:

 The scatter diagram is a tool used to determine the correlation (relationship) between two
characteristics (variables) in the production and delivery process.

 The aims of the scatter-diagram are to verify or confirm an assumption;

 To test the correlation between process factors and characteristics of products
 Suppose you want to know whether there is a relationship between out-door delivery of
fast food and customers’ patronage.
 Taking stock the daily delivery of fast-food, and compare with daily number of
customers
METHODS OF TOTAL QUALITY MANAGEMENT CONT.

 Scatter-diagram – determination of significance – Implications

 Scatter-diagram can be conducted with the use of statistical tools e.g. SPSS and graphs

 In both cases the same indicators are used to determine the significance of the result.

 For the result to be classified as a strong correlation, the result of the data points must be
tightly grouped in a linear pattern.

 The more loosely grouped, the lesser the correlation, also termed weak correlation.

 When a pattern has no discernible linear component, it is said to show no correlation.

 Note: customer survey data is a major input for the development of scatter-diagram
SCATTER-DIAGRAM - STRENGTH OF THE CORRELATION
Daily customer turn-out

No. of fast food delivery per day

 METHODS OF TOTAL QUALITY MANAGEMENT CONT.

 Histogram – Implications

 A histogram is a graphic method used to track the frequency of occurrence of production

problems or defects.

 E.g. How often does defects occur in a given production process and service provision?

 The histogram can be constructed after you have collected the data, e.g. data from check
sheet or data from surveys of customers.

 The histogram methods is significant both internally and externally.

 Internally, it is relevant for providing a pictorial track of production related problems,
daily, monthly, yearly records.
 Externally, it is relevant for providing a pictorial track on customers/clients’
experiences and satisfactions of product & delivery process.
 METHODS OF TOTAL QUALITY MANAGEMENT CONT.

Histogram – Implications
 Example: Pepsodent: feedback on external customer experiences
& satisfaction
 1 – Size/quantity

 2 – Appropriateness of ingredients

 3 – Friendly to user

No. of customers
 4 – Physical outlook

 5 – Package durability

 6 – Color/aesthetic

 7 – Availability in retailers
 8 – Price

 9 – Customer services
Product attributes
 10 – Inefficacy for user/fit for purpose
METHODS OF TOTAL QUALITY MANAGEMENT CONT.

 Check sheet

 The purpose of the check sheet is to make it easy to collect data for specific purposes and to be
presented in a way that facilitates conversion from data to useful information.

 Check sheet method can be used for organizational internal/self-assessment of commitment to

total quality management principles, production and services’ delivery processes.
 It can be used to record the number of mistakes and defected products identified in the
production line daily, weekly and monthly.

 Check sheets can be apply to any working environment—not just to the factories/manufacturing
firms.
E.g. Check sheet – Organization/firm Internal Assessment
Remarks
 METHODS OF TOTAL QUALITY MANAGEMENT

 SWOT – method for analysing the strength, weaknesses, opportunities and threats of
organization or production processes or services delivery to inform decision-making.

 Strength – Internal factors

 Weakness – Internal factors
 Opportunities – External factors
 Threats – External factors
 METHODS OF TOTAL QUALITY MANAGEMENT

 The Run chart/trend chart: can be used to record the output results of a production or
service delivery processes over time.

 In the production process, it is used to track the percentage defective products for a
given process, e.g. direct production, packaging, packing process, transporting
process.
 The aim of the Run chart/trend chart is to identify and address problems/ production
stage or steps that influence product defects.

 For examples, in a pen manufacturing firm, the focus will be on the number of faulty
pens or breakages recorded at the various stages/chain etc.
RUN CHART/CONTROL
 Run chart/control used a sampling system to track the quality of product
manufactured, through inspections in percentages.
 For example, for every lot of 1,000 pens manufactured, 50 are sampled and
immediately inspected.
 If more than one defective pen is found in each of the 50 samples, then the whole lot
of 1,000 is subjected to inspection.
 A chart is therefore drawn to show the number of manufactured products and the
number of defects.
 A follow-up assessment is then made to identify the causes of the defect in the
production process.
 Data from the sample is plotted on a run chart.
RUN CHART/CONTROL
 METHODS OF TOTAL QUALITY MANAGEMENT CON'T.

 Flowchart: is a graphic representation of a production/services delivery process by

different operating teams as standard for communicating various actions, inputs,
outflows.
 It simply involves asking several different team members, line workers who know the
process to flowchart it independently.
 Another strategy is to ask team members to chart how the process actually works and
then chart how they think it should work.
 If their charts are not the same, one significant problem is revealed at the outset; there is
not a common understanding of the way the process works – e.g. manufacturing chain or
service delivery chain.
METHODS OF TOTAL QUALITY MANAGEMENT CON'T.

 FACTORS TO CONSIDER IN FLOWCHARTING:

 Flowcharting method uses the team, which is made up of the people who worked or
have been working within the process and those who provide input to or take output
from the process.

 It is important to note that to be effective, the completed flowchart must accurately

reflect the way the process actually works, not how it should work.

 After a process has been flowcharted, it can be studied to determine which aspects have
problems and where improvements can be made.
 Comparing the two versions can be an effective way to identify causes of problems and
to suggest improvement possibilities or building of capacities through further training.
 METHODS OF TOTAL QUALITY MANAGEMENT CONT.

 SURVEYS: - Market surveys

 The purpose of a survey is to obtain relevant information from sources that otherwise
would not be heard from—at least not in the context of providing helpful data.
 Surveys can be conducted internally as a kind of employee feedback on problem areas or
as internal customer feedback on products or services.
 They can also be conducted with external customers, your customers of product/service,
to gain information about how your products or services rate in the customers’ eyes.
 The customer (internal or external) orientation of the survey is important because the
customer, after all is the only authority on the quality of your goods and services.
 Some companies conduct annual customer satisfaction surveys.
 These firms use the input from customers for quality improvement
 FAILURE MODE AND EFFECTS ANALYSIS
 FMEA is a method used to identify all the possible types (modes) of failures
that could occur or arise in product manufacturing process before they occur.
 The FMEA identify likely problems/failures based on pass production and
manufacturing experiences.
 Once the possible “failure modes” have been identified, the “effects analysis” is done
to understand the potential consequences of the failures.
 Next, the consequences of each potential failure are ranked by;
✓ Seriousness/Criticality to the customer

✓ Probability of the fault’s occurrence

✓ Probability of the fault’s detection by the systems

✓ Responsible for defect prevention or detection

  A big Note:
 Quality control/improvement tools are not solutions themselves but rather virtue for
decision-making to improve upon the situation identified