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Total Quality Process
(TQP)

© Operational Excellence Consulting. All rights reserved.
Objectives
By the end of this program, you would be able to:
• Explain the Principles of Quality
• Define the Four Key Activities for managing quality
• Explain the need for a culture change, starting at the top
• Demonstrate a personal commitment to total quality
• Describe how to create quality awareness and educate employees
on quality management and improvement
• Describe how to put the systems for TQP into motion, including
measuring quality
• Identify ways to sustain TQP activities
• Understand a manager‟s role in quality improvement
© Operational Excellence Consulting. All rights reserved.

3
1
Introduction to TQP

© Operational Excellence Consulting. All rights reserved.
Goals of Productivity
• High-quality products and services
• Bigger market share
• Higher standard of living

© Operational Excellence Consulting. All rights reserved.

7
Understanding the Principles of
Quality
• Vision
• Benefits of quality
improvement
• Five Quality Principles

© Operational Excellence Consulting. All rights reserved.

9
Eliminating Waste
“Eliminating what is
not wanted or
needed is profitable
in itself.”
~ Philip Crosby

© Operational Excellence Consulting. All rights reserved.

11
Impact of Problem Solving
Sporadic Departure
from Standard

Performance

Original Zone of
Control

Problem Solving
(Process Improvement)

Holding the Gain - Control

New Zone of
Control

Time
© Operational Excellence Consulting. All rights reserved.

13
Activity: Benefits of Quality
Improvement
Time: 5 mins

1.

List any areas where your company currently has
strengths in quality

2.

List any areas where your company has
weaknesses in quality

3.

What benefits of quality improvement can you see
for your company?

© Operational Excellence Consulting. All rights reserved.

15
The success of a Quality transformation
starts from process changes
Culture

Attitude
The way we think
Behavior

The way we act
Work Systems
& Processes
The changes we make
© Operational Excellence Consulting. All rights reserved.

17
Five Quality Principles
The five quality principles form the basis for
managing and improving quality in a
company:
1. All work is a process

2. Quality means meeting requirements
3. We focus on processes by measuring
4. Our quality standard is 100% right

5. The system for quality is prevention
Source: Adapted from the Four Quality Absolutes by Philip Crosby
© Operational Excellence Consulting. All rights reserved.

19
Definition of Quality
• Quality means meeting requirements
• The word “quality” means different things to
different people
 For example, “quality” may mean “expensive” to one
customer. To another, the word may mean “durable”.

• To improve quality, we need a simple, clear
definition that means the same thing to
everyone

© Operational Excellence Consulting. All rights reserved.

21
Quality Standard
• Our quality standard is 100%
right
 Zero defect
 6 sigma quality (3.4 ppm)

 An attitude for continuous
improvement

© Operational Excellence Consulting. All rights reserved.

23
2
4 Key Activities

© Operational Excellence Consulting. All rights reserved.
4 Key Activities
1. Make a commitment
2. Plan for Quality management
3. Put Quality systems in motion
Vision, Mission,
Shared Values & Five
Quality Principles

4. Keep Quality going

Quality
Management
Act

Plan

Check

Do

Quality
Improvement

© Operational Excellence Consulting. All rights reserved.

27
Make a Commitment

1.1 Starting at the Top
• Establish a Quality vision
• Participate in the Quality management process
• Demonstrate a personal commitment

• Communication by senior leaders

© Operational Excellence Consulting. All rights reserved.

29
Plan for Quality Management

2. Plan for Quality Management
2.1 Form a Quality Management Team
2.2 Create awareness
2.3 Educate everyone

2.4 Prepare for goal setting

© Operational Excellence Consulting. All rights reserved.

31
Plan for Quality Management

2.2 Create Quality Awareness
• Make everyone aware of the commitment to
Quality
• Responsibilities:
 Provide employees with reading and viewing materials
supporting Quality efforts
 Publicize through intranet, newsletters, emails, etc.
 Participate in awareness events, e.g. poster/slogan
competition
 Communicate with customers and suppliers

© Operational Excellence Consulting. All rights reserved.

33
Plan for Quality Management

2.3 Quality Education Process
• Process control
 Plan-Do-Check-Act (PDCA)

• Quality improvement tools
 Process analysis tools

 Measurement tools

Senior
Management

 Problem solving tools

Quality
Management

Act
Check

 Team-building tools

Plan
Do

Quality
Improvement
Front Lines
Focus

© Operational Excellence Consulting. All rights reserved.

35
Plan for Quality Management

Activity: Communication
• Discuss and list ideas for developing
and communicating plans for the
Quality initiative.

© Operational Excellence Consulting. All rights reserved.

Time: 10 mins

37
Put Systems in Motion

3.1 Set Up Work Process
Measurements
• To identify whether or not work processes are
meeting requirements
• Help departments identify what to measure
 Input/Output criteria (SIPOC)

• Introduce a company-wide measurement chart
 Organization scorecard

• Review results and publicize success stories

© Operational Excellence Consulting. All rights reserved.

39
Put Systems in Motion

3.2 Measure Quality
• Measure defects, e.g. COPQ

• Explain to key staff how quality is measured
• Use these measurements to manage the quality
improvement process

• Tips for measurements:
 Use the Pareto principle
 No need to be 100% accurate

 System should provide a good, overall picture

© Operational Excellence Consulting. All rights reserved.

41
Put Systems in Motion

Why Measure COQ?
• Gain senior management commitment - $$$

• A scorecard with a common unit of
measurement ($, or as % of sales)
• An effective tool to measure and prioritize
improvement efforts
• Allocate resources for quality improvement
• Help set and monitor departmental quality
improvement targets
• Determine effectiveness of the quality plan
© Operational Excellence Consulting. All rights reserved.

43
Put Systems in Motion

What COQ Is Not
• Cost of quality is NOT the price of creating a quality
product or service. It is the cost of NOT creating a
quality product or service.
• Every time work is redone, the cost of quality increases.
Examples include:
 The reworking of a manufactured item
 The retesting of an assembly
 The rebuilding of a tool
 The correction of a bank statement
 The reworking of a service, such as the reprocessing of a loan
operation or the replacement of a food order in a restaurant
© Operational Excellence Consulting. All rights reserved.

45
Put Systems in Motion

Cost of Conformance (COC)
• The costs incurred in ensuring that things
are done right the first time
• Examples:








Quality training
Quality auditing
Inspections and tests
Process capability studies
Vendor assurance
Continuous improvement programs
Customer satisfaction surveys
© Operational Excellence Consulting. All rights reserved.

47
Put Systems in Motion

3.3 Form Quality Action Teams for
Solving Problems
• To systemize corrective and preventive actions
• Appoint a “Quality Coordinator” to:
 Receive quality improvement requests

 Determine the necessary skills and identify employees
for ad hoc quality improvement
 Assign problems to specific QATs
 Monitor the status of team activities
 Follow up with teams to ensure problems are solved

© Operational Excellence Consulting. All rights reserved.

49
Keep Quality Going

4. Keep Quality Going
• Ensure activities are ongoing so as to sustain the
Quality implementation
process
• Review and recognize
Quality Management
Team success

© Operational Excellence Consulting. All rights reserved.

51
Keep Quality Going

4.2 Review Quality Management
Team Success
• To renew and improve the Quality Management
Team
• Recognize QMT success
• Identify and select new members for the QMT
• Train and educate new members
• Recognize outgoing members for their
participation

© Operational Excellence Consulting. All rights reserved.

53
3
TQP Toolkit

© Operational Excellence Consulting. All rights reserved.
Hoshin Kanri (Policy Deployment)
• A planning tool that helps us identify the key
focal points and strategies we will use to steer
us towards our vision.
• Focus on vital few goals
• Enables everyone to „see‟
where we‟re going and
our plans to get there
• Build plan and strategies
as a team
• Shared responsibility for
getting results
© Operational Excellence Consulting. All rights reserved.

57
Eight Steps of Problem Solving
1

Select the Theme

2

Plan the Schedule

3

Grasp the Present Situation

4

Establish the Target

5

Analyze the Cause & Identify Corrective Action

6

Implement Corrective Action

DO

7

Evaluate the Result

CHECK

8

Standardize & Follow-up

ACT

© Operational Excellence Consulting. All rights reserved.

PLAN

59
Problem Solving Tools
• Not the intent of this presentation to go into the
details of problem solving tools, as the main
focus is on the overall Total Quality Process
• However, we will highlight two of the most
important tools:
 Pareto Chart
 Case & Effect Diagram
(Note: For details on the PDCA problem solving process and tools, please visit our
website for the specific presentation deck.)
© Operational Excellence Consulting. All rights reserved.

61
Example: Pareto Chart
Pareto Chart
Pizza Defects

35

120%

30

Occurences

25
80%
20
60%
15
40%
10
20%

5

-

Wrong Toppings ColdPizza Late
Pizza
Wrong Crust
Tastes Forgot Breadsticks No Change in Box
Bad
Driver Had Smashed Wrong Price
Driver Rude All other

Quantity

29

25

22

13

10

7

4

3

2

1

25%

46%

64%

75%

84%

90%

93%

96%

97%

98%

100%

% of Total

25%

21%

19%

11%

8%

6%

3%

3%

2%

1%

0%

2

Cum %

Cumulative Percent

100%

2%

Time Period:

January-02

© Operational Excellence Consulting. All rights reserved.

63
Cause & Effect Diagram
Causes (Xs)

Manpower

Method

Effect (Y)

Machine

cause

Problem
Statement

Environment

Measurement

Material

© Operational Excellence Consulting. All rights reserved.

65
4
Strategies for Success

© Operational Excellence Consulting. All rights reserved.
3 Cornerstones
• Problem solving
 We have covered this earlier, and so we will focus on
the next two cornerstones

• Project Management
• Change management

© Operational Excellence Consulting. All rights reserved.

69
Project Management
• Key elements:
 Project charter
 Project plan

 Project execution and monitoring
 Project close out

© Operational Excellence Consulting. All rights reserved.

71
Understanding Responses to Change
It is key to understand and leverage is the rate and pace
at which people adapt to change
Enrollment Curve

Source: Atlanta Consulting Group
© Operational Excellence Consulting. All rights reserved.

73
10 Steps to Dealing with People
Challenges
1. Develop a Team Charter
2. Select appropriate team members
3. Inform everyone who is either involved in the
project or impacted by the project
4. Develop team ground rules at the first meeting
5. Make sure everyone understands their role

© Operational Excellence Consulting. All rights reserved.

75
Moving Towards a Quality Culture
Culture

Attitude
The way we think

Behavior
Work
Processes &
Systems

The way we work

The changes we make
through TQP
© Operational Excellence Consulting. All rights reserved.

77
Keys To Success
• As a team – be open minded and supportive

• Understand TQP concepts
• Effectively use Quality management and
improvement and tools

• Keep it simple
• Becoming a truly quality-oriented organization is
a journey and will not be made without some
discomfort

© Operational Excellence Consulting. All rights reserved.

79
The Attitude
“Whether you think
you can, or you
think you
can’t, you’re right.”
- Henry Ford

© Operational Excellence Consulting. All rights reserved.

81
END OF PRESENTATION
For more information about our
services, please visit

www.oeconsulting.co
m.sg

© Operational Excellence Consulting. All rights reserved.

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Total Quality Process (TQP)

  • 1. Total Quality Process (TQP) © Operational Excellence Consulting. All rights reserved.
  • 2. Objectives By the end of this program, you would be able to: • Explain the Principles of Quality • Define the Four Key Activities for managing quality • Explain the need for a culture change, starting at the top • Demonstrate a personal commitment to total quality • Describe how to create quality awareness and educate employees on quality management and improvement • Describe how to put the systems for TQP into motion, including measuring quality • Identify ways to sustain TQP activities • Understand a manager‟s role in quality improvement © Operational Excellence Consulting. All rights reserved. 3
  • 3. 1 Introduction to TQP © Operational Excellence Consulting. All rights reserved.
  • 4. Goals of Productivity • High-quality products and services • Bigger market share • Higher standard of living © Operational Excellence Consulting. All rights reserved. 7
  • 5. Understanding the Principles of Quality • Vision • Benefits of quality improvement • Five Quality Principles © Operational Excellence Consulting. All rights reserved. 9
  • 6. Eliminating Waste “Eliminating what is not wanted or needed is profitable in itself.” ~ Philip Crosby © Operational Excellence Consulting. All rights reserved. 11
  • 7. Impact of Problem Solving Sporadic Departure from Standard Performance Original Zone of Control Problem Solving (Process Improvement) Holding the Gain - Control New Zone of Control Time © Operational Excellence Consulting. All rights reserved. 13
  • 8. Activity: Benefits of Quality Improvement Time: 5 mins 1. List any areas where your company currently has strengths in quality 2. List any areas where your company has weaknesses in quality 3. What benefits of quality improvement can you see for your company? © Operational Excellence Consulting. All rights reserved. 15
  • 9. The success of a Quality transformation starts from process changes Culture Attitude The way we think Behavior The way we act Work Systems & Processes The changes we make © Operational Excellence Consulting. All rights reserved. 17
  • 10. Five Quality Principles The five quality principles form the basis for managing and improving quality in a company: 1. All work is a process 2. Quality means meeting requirements 3. We focus on processes by measuring 4. Our quality standard is 100% right 5. The system for quality is prevention Source: Adapted from the Four Quality Absolutes by Philip Crosby © Operational Excellence Consulting. All rights reserved. 19
  • 11. Definition of Quality • Quality means meeting requirements • The word “quality” means different things to different people  For example, “quality” may mean “expensive” to one customer. To another, the word may mean “durable”. • To improve quality, we need a simple, clear definition that means the same thing to everyone © Operational Excellence Consulting. All rights reserved. 21
  • 12. Quality Standard • Our quality standard is 100% right  Zero defect  6 sigma quality (3.4 ppm)  An attitude for continuous improvement © Operational Excellence Consulting. All rights reserved. 23
  • 13. 2 4 Key Activities © Operational Excellence Consulting. All rights reserved.
  • 14. 4 Key Activities 1. Make a commitment 2. Plan for Quality management 3. Put Quality systems in motion Vision, Mission, Shared Values & Five Quality Principles 4. Keep Quality going Quality Management Act Plan Check Do Quality Improvement © Operational Excellence Consulting. All rights reserved. 27
  • 15. Make a Commitment 1.1 Starting at the Top • Establish a Quality vision • Participate in the Quality management process • Demonstrate a personal commitment • Communication by senior leaders © Operational Excellence Consulting. All rights reserved. 29
  • 16. Plan for Quality Management 2. Plan for Quality Management 2.1 Form a Quality Management Team 2.2 Create awareness 2.3 Educate everyone 2.4 Prepare for goal setting © Operational Excellence Consulting. All rights reserved. 31
  • 17. Plan for Quality Management 2.2 Create Quality Awareness • Make everyone aware of the commitment to Quality • Responsibilities:  Provide employees with reading and viewing materials supporting Quality efforts  Publicize through intranet, newsletters, emails, etc.  Participate in awareness events, e.g. poster/slogan competition  Communicate with customers and suppliers © Operational Excellence Consulting. All rights reserved. 33
  • 18. Plan for Quality Management 2.3 Quality Education Process • Process control  Plan-Do-Check-Act (PDCA) • Quality improvement tools  Process analysis tools  Measurement tools Senior Management  Problem solving tools Quality Management Act Check  Team-building tools Plan Do Quality Improvement Front Lines Focus © Operational Excellence Consulting. All rights reserved. 35
  • 19. Plan for Quality Management Activity: Communication • Discuss and list ideas for developing and communicating plans for the Quality initiative. © Operational Excellence Consulting. All rights reserved. Time: 10 mins 37
  • 20. Put Systems in Motion 3.1 Set Up Work Process Measurements • To identify whether or not work processes are meeting requirements • Help departments identify what to measure  Input/Output criteria (SIPOC) • Introduce a company-wide measurement chart  Organization scorecard • Review results and publicize success stories © Operational Excellence Consulting. All rights reserved. 39
  • 21. Put Systems in Motion 3.2 Measure Quality • Measure defects, e.g. COPQ • Explain to key staff how quality is measured • Use these measurements to manage the quality improvement process • Tips for measurements:  Use the Pareto principle  No need to be 100% accurate  System should provide a good, overall picture © Operational Excellence Consulting. All rights reserved. 41
  • 22. Put Systems in Motion Why Measure COQ? • Gain senior management commitment - $$$ • A scorecard with a common unit of measurement ($, or as % of sales) • An effective tool to measure and prioritize improvement efforts • Allocate resources for quality improvement • Help set and monitor departmental quality improvement targets • Determine effectiveness of the quality plan © Operational Excellence Consulting. All rights reserved. 43
  • 23. Put Systems in Motion What COQ Is Not • Cost of quality is NOT the price of creating a quality product or service. It is the cost of NOT creating a quality product or service. • Every time work is redone, the cost of quality increases. Examples include:  The reworking of a manufactured item  The retesting of an assembly  The rebuilding of a tool  The correction of a bank statement  The reworking of a service, such as the reprocessing of a loan operation or the replacement of a food order in a restaurant © Operational Excellence Consulting. All rights reserved. 45
  • 24. Put Systems in Motion Cost of Conformance (COC) • The costs incurred in ensuring that things are done right the first time • Examples:        Quality training Quality auditing Inspections and tests Process capability studies Vendor assurance Continuous improvement programs Customer satisfaction surveys © Operational Excellence Consulting. All rights reserved. 47
  • 25. Put Systems in Motion 3.3 Form Quality Action Teams for Solving Problems • To systemize corrective and preventive actions • Appoint a “Quality Coordinator” to:  Receive quality improvement requests  Determine the necessary skills and identify employees for ad hoc quality improvement  Assign problems to specific QATs  Monitor the status of team activities  Follow up with teams to ensure problems are solved © Operational Excellence Consulting. All rights reserved. 49
  • 26. Keep Quality Going 4. Keep Quality Going • Ensure activities are ongoing so as to sustain the Quality implementation process • Review and recognize Quality Management Team success © Operational Excellence Consulting. All rights reserved. 51
  • 27. Keep Quality Going 4.2 Review Quality Management Team Success • To renew and improve the Quality Management Team • Recognize QMT success • Identify and select new members for the QMT • Train and educate new members • Recognize outgoing members for their participation © Operational Excellence Consulting. All rights reserved. 53
  • 28. 3 TQP Toolkit © Operational Excellence Consulting. All rights reserved.
  • 29. Hoshin Kanri (Policy Deployment) • A planning tool that helps us identify the key focal points and strategies we will use to steer us towards our vision. • Focus on vital few goals • Enables everyone to „see‟ where we‟re going and our plans to get there • Build plan and strategies as a team • Shared responsibility for getting results © Operational Excellence Consulting. All rights reserved. 57
  • 30. Eight Steps of Problem Solving 1 Select the Theme 2 Plan the Schedule 3 Grasp the Present Situation 4 Establish the Target 5 Analyze the Cause & Identify Corrective Action 6 Implement Corrective Action DO 7 Evaluate the Result CHECK 8 Standardize & Follow-up ACT © Operational Excellence Consulting. All rights reserved. PLAN 59
  • 31. Problem Solving Tools • Not the intent of this presentation to go into the details of problem solving tools, as the main focus is on the overall Total Quality Process • However, we will highlight two of the most important tools:  Pareto Chart  Case & Effect Diagram (Note: For details on the PDCA problem solving process and tools, please visit our website for the specific presentation deck.) © Operational Excellence Consulting. All rights reserved. 61
  • 32. Example: Pareto Chart Pareto Chart Pizza Defects 35 120% 30 Occurences 25 80% 20 60% 15 40% 10 20% 5 - Wrong Toppings ColdPizza Late Pizza Wrong Crust Tastes Forgot Breadsticks No Change in Box Bad Driver Had Smashed Wrong Price Driver Rude All other Quantity 29 25 22 13 10 7 4 3 2 1 25% 46% 64% 75% 84% 90% 93% 96% 97% 98% 100% % of Total 25% 21% 19% 11% 8% 6% 3% 3% 2% 1% 0% 2 Cum % Cumulative Percent 100% 2% Time Period: January-02 © Operational Excellence Consulting. All rights reserved. 63
  • 33. Cause & Effect Diagram Causes (Xs) Manpower Method Effect (Y) Machine cause Problem Statement Environment Measurement Material © Operational Excellence Consulting. All rights reserved. 65
  • 34. 4 Strategies for Success © Operational Excellence Consulting. All rights reserved.
  • 35. 3 Cornerstones • Problem solving  We have covered this earlier, and so we will focus on the next two cornerstones • Project Management • Change management © Operational Excellence Consulting. All rights reserved. 69
  • 36. Project Management • Key elements:  Project charter  Project plan  Project execution and monitoring  Project close out © Operational Excellence Consulting. All rights reserved. 71
  • 37. Understanding Responses to Change It is key to understand and leverage is the rate and pace at which people adapt to change Enrollment Curve Source: Atlanta Consulting Group © Operational Excellence Consulting. All rights reserved. 73
  • 38. 10 Steps to Dealing with People Challenges 1. Develop a Team Charter 2. Select appropriate team members 3. Inform everyone who is either involved in the project or impacted by the project 4. Develop team ground rules at the first meeting 5. Make sure everyone understands their role © Operational Excellence Consulting. All rights reserved. 75
  • 39. Moving Towards a Quality Culture Culture Attitude The way we think Behavior Work Processes & Systems The way we work The changes we make through TQP © Operational Excellence Consulting. All rights reserved. 77
  • 40. Keys To Success • As a team – be open minded and supportive • Understand TQP concepts • Effectively use Quality management and improvement and tools • Keep it simple • Becoming a truly quality-oriented organization is a journey and will not be made without some discomfort © Operational Excellence Consulting. All rights reserved. 79
  • 41. The Attitude “Whether you think you can, or you think you can’t, you’re right.” - Henry Ford © Operational Excellence Consulting. All rights reserved. 81
  • 42. END OF PRESENTATION For more information about our services, please visit www.oeconsulting.co m.sg © Operational Excellence Consulting. All rights reserved.