Total Quality Management versus Six Sigma.docx

Total Quality Management versus Six Sigma.docx

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TotalQualityManagementversusSixSigma

DonnaN.Anderson

April26,2004

OperationsandQualityManagement

MANA6333Spring2004

ProfessorMichaelJ.Thompson

TotalQualityManagementversusSixSigma

Inthe1950s,theJapaneseaskedW.EdwardsDeming,anAmericanstatisticianandmanagementtheorist,tohelpthemimprovetheirwartorneconomy.ByimplementingDeming'sprinciplesoftotalqualitymanagement（TQM）,Japanexperienceddramaticeconomicgrowth.Inthe1980s,whentheUnitedStatesbegantoseeareductioninitsownworldmarketshareinrelationtoJapan,AmericanbusinessrediscoveredDeming.Totalqualitymanagementexpertsorgurus,JosephJuranandPhilipCrosby,alsocontributedtothedevelopmentofTQMtheories,models,andtools.TQMisnowpracticedinbusinessaswellasingovernment,themilitary,education,andinnon-profitorganizations.

TQMis"asystemofcontinuousimprovementemployingparticipativemanagementandcenteredontheneedsofcustomers".KeycomponentsofTQMareemployeeinvolvementandtraining,problemsolvingteams,statisticalmethods,long-termgoalsandthinking,andrecognitionthatthesystem,notpeople,producesinefficiencies.TQMisseenasprimarilyamanagement-ledapproachinwhichtopmanagementcommitmentisessential.Theemphasisisonqualityinallaspectsandfunctionsofthecompanyoperation,company-wide,notjustthemanufacturingfunctionorprovisionofamajorservicetotheexternalend-customer.Employeeawarenessandmotivationareessential.Thechartbelowdepictshowthemanagementprocessconstantlystrivesforcontinuousimprovement,delivercustomervalue,andexcellence.

Allareresponsibleforensuringqualityintermsof'satisfyingthecustomer'inalltheydo,andtheapproachisoneofpreventionoferrorsandfaultsratherthandetectionandcorrection.Typically,culturalchangeinthecompanyfromaninspectiontoapreventionapproach,andtooneofinvolvementisseenasrequired.Organizationalchangeisalsoneeded.Astrongemphasisistypicallyalsoplacedonmeetingthecustomers'requirementsandidentifyinginternalcustomers.Withallofthesenecessarychanges,thisleadsustotheBasicPrinciplesofTQM:

Approach/ManagementLed;Scope/Countrywide;Scale/Everyoneisresponsibleforquality;Philosophy/Preventionnotdetection;Standard/Rightfirsttime;Control/Costofquality;andTheme/Ongoingimprovement.

InOutofCrisis,Dr.Demingoutlineshisfourteenpointsformanagement.Heunderstoodthatmanagersofpeopleneedtounderstandthatallpeoplearedifferent.Notrankpeoplebutunderstandthatlargelytheareathatheworksin,andistheresponsibilityofmanagementgovernstheperformanceofanyone.BelowwecanseewhatDr.Demingtaughtinhisstyleofmanagement.

Deming’s14PointsForImplementingQualityImprovement:

1.Createconstancyofpurposetowardimprovementofproductandservice,withtheaimtobecomecompetitiveandtostayinbusiness,andtoprovidejobs.

2.Adoptthenewphilosophy.Weareinaneweconomicage.Westernmanagementmustawakentothechallenge,mustlearntheirresponsibilities,andtakeonleadershipforchange.

3.Ceasedependenceoninspectiontoachievequality.Eliminatetheneedforinspectiononamassbasisbybuildingqualityintotheproductinthefirstplace.

4.Endthepracticeofawardingbusinessonthebasisofpricetag.Instead,minimizetotalcost.Movetowardasinglesupplierforanyoneitem,onalong-termrelationshipofloyaltyandtrust.

5.Improveconstantlyandforeverthesystemofproductionandservice,toimprovequalityandproductivity,andthusconstantlydecreasecosts.

6.Institutetrainingonthejob.

7.Instituteleadership.Theaimofsupervisionshouldbetohelppeopleandmachinesandgadgetstodoabetterjob.Supervisionofmanagementisinneedofoverhaulaswellassupervisionofproductionworkers.

8.Driveoutfear,sothateveryonemayworkeffectivelyforthecompany.

9.Breakdownbarriersbetweendepartments.Peopleinresearch,design,sales,andproductionmustworkasateam,toforeseeproblemsofproductionandinusethatmaybeencounteredwiththeproductorservice.

10.Eliminateslogans,exhortations,andtargetsfortheworkforceaskingforzerodefectsandnewlevelsofproductivity.Suchexhortationsonlycreateadversarialrelationships,asthebulkofthecausesoflowqualityandlowproductivitybelongtothesystemandthusliebeyondthepoweroftheworkforce.

11.a.Eliminateworkstandards（quotas）onthefactoryfloor.Substituteleadership.

b.Eliminatemanagementbyobjective.Eliminatemanagementbynumbers,numericalgoals.Substituteleadership.

12.a.Removebarriersthatrobthehourlyworkerofhisrighttoprideofworkmanship.Theresponsibilityofsupervisorsmustbechangedfromsheernumberstoquality.

b.Removebarriersthatrobpeopleinmanagementandinengineeringoftheirrighttoprideofworkmanship.Thismeans,interalia,abolishmentoftheannualmeritratingandofmanagementbyobjective.

13.Instituteavigorousprogramofeducationandself-improvement.

14.Puteverybodyinthecompanytoworktoaccomplishthetransformation.Thetransformationiseverybody'sjob.

IfacompanyworkshardtoimplementDr.Deming’sideasonquality,theyarelikelytoseeanimprovementintheirallaroundenvironment.Trainingemployeesinordertofillapositionskillfullyandefficiently,benchmarkingtoidentifyareasthatneedimprovement,andrethinkingtheirapproachtoperformanceappraisal,areallindicationsoftotal-qualitymanagementthatcanresultinasuccessfulenterpriseforallthoseinvolved.

Crosby'snameisbestknowninrelationstotheconceptsofdoitrightthefirsttimeandzerodefects.Zerodefectsmeansthatthecompany'sobjectiveis'doingthingsrightfirsttime'.Thiswillnotpreventpeoplefrommakingmistakes,butwillencourageeveryonetoimprovecontinuously.Heconsiderstraditionalqualitycontrol,acceptablequalitylimitsandwaiversofsub-standardproductstorepresentfailureratherthanassuranceofsuccess.Crosbythereforedefinesqualityasconformancetotherequirements,whichthecompanyitselfhasestablishedforitsproducts,baseddirectlyonitscustomers'needs.Hedoesnotbelievethatworkersshouldtakeprimeresponsibilityforpoorquality;thereality,hesays,isthatyouhavetogetmanagementstraight.IntheCrosbyschemeofthings,managementsetsthetoneonqualityandworkersfollowtheirexample;whilstemployeesareinvolvedinoperationaldifficultiesanddrawthemtomanagement'sattention,theinitiativecomesfromthetop.

Theultimategoalistotrainallthestaffandgivethemthetoolsforqualityimprovement,toapplythebasicpreceptofPreventionManagementineveryarea.Healsoviewsqualityimprovementasanongoingprocesssincetheworkitselfimpliesatemporarysituation.Crosby’sQualityImprovementProcessisbaseduponthe

FourAbsolutesofQualityManagement:

1.Qualityisdefinedasconformancetorequirements,notas'goodness'or'elegance'.

2.Thesystemforcausingqualityisprevention,notappraisal.

3.TheperformancestandardmustbeZeroDefects,not"that'scloseenough".

4.ThemeasurementofqualityisthePriceofNonconformance,notindices.

JMJuranseesqualityplanningaspartofthequalitytrilogyofqualityplanning,qualitycontrolandqualityimprovement.Thekeyelementsinimplementingcompany-widestrategicqualityplanningareinturnseenasidentifyingcustomersandtheirneeds;establishingoptimalqualitygoals;creatingmeasurementsofquality;planningprocessescapableofmeetingqualitygoalsunderoperatingconditions;andproducingcontinuingresultsinimprovedmarketshare,premiumprices,andareductionoferrorratesintheofficeandfactory.

Juran's'QualityPlanningRoadMap'consistsofthefollowingsteps:

1.Identifywhoarethecustomers.

2.Determinetheneedsofthosecustomers.

3.Translatethoseneedsintoourlanguage.

4.Developaproductthatcanrespondtothoseneeds.

5.Optimizetheproductfeaturessoastomeetourneedsaswellascustomerneeds.

6.Developaprocess,whichisabletoproducetheproduct.

7.Optimizetheprocess.

8.Provethattheprocesscanproducetheproductunderoperatingconditions.

9.TransfertheprocesstoOperations.

IllustrationofQualityTrilogyviaaControlChart:

Juranconcentratesnotjustontheendcustomer,butidentifiesotherexternalandinternalcustomers.

Therehasbeenamentionofsevendeadlysinstototalqualitymanagementeveryorganizationshouldnotdeviatefrom:

Flighttonowhere; Onesizefitsall; SubstitutingTQMforleadership; Inside-Outindicators; Mandatoryreligion;Qualitykeptasaseparateactivity;andTeachingtothetest. MaintainingfocusandlinkingyourorganizationbacktothefourprinciplesofTQMwillassistyouinreachingyourgoalsandthevisionthatyouhavesetforth.

SixSigmaisamanagementphilosophydevelopedbyMotorolathatemphasizessettingextremelyhighobjectives,collectingdata,andanalyzingresultstoafinedegreeasawaytoreducedefectsinproductsandservices.TheGreeklettersigmaissometimesusedtodenotevariationfromastandard.ThephilosophybehindSixSigmaisthatifyoumeasurehowmanydefectsareinaprocess,youcanfigureouthowtosystematicallyeliminatethemandgetasclosetoperfectionaspossible.SixSigmaisacorporatequalityprogram,onethatemphasizesidentifyingandavoidingvariation.

Theterm“SixSigma”isastatisticaltermthatrefersto3.4defectspermillionopportunities（or99.99966percentaccuracy）,whichisascloseasanyoneislikelytogettoperfect.A