Total Quality Management Toolbox

TOTAL QUALITY MANAGEMENT TOOLBOX

Total Quality Management (TQM)

Definition

An Organization wide program that integrates all
functions and processes of the business so that design,

planning, production, distribution and services are
focused on maximizing customer satisfaction through

continued improvement.

Gary Dessler, 9th Ed.pg.266

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Total Quality Management - Pyramid

TQM is an integrative management philosophy for the continuous improvement of
product and process quality

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Total Quality Management (TQM) Total

Definition Quality Manage-
ment
 Total

Quality Mangement involves everyone
and all tasks and activities of a company.

 Quality

Degree to which the product (or service)
fulfils customer requirements or was produced correctly.

 Management

Quality must be managed by planning , organizing , leading and
controlling.

 TQM

An integrative philosophy of management for continuously
improving the quality of products and processes.

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Importance of Good Quality

Good Quality leads to higher customer satisfaction and is rewarded by increased profits

Improved Quality Higher Customer Satisfaction Increased Profit
Increased Sales Volume
Company’s Reputation
Product Liability
Market Gains
Higher Price
Reduced Costs
Higher Productivity
Lower Rework / Scrap

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Determinants of Product Quality

An approach of the product quality determinants

Performance main product characteristics / everything works
Conformance specifications, standards and customer‘s expectations
Perceived quality indirect evaluation of quality, reputations and ratings
Aesthetics design, taste, soft touch, fit and finish, grade of material used
Reliability consistency of performance, infrequency of breakdowns
Special features extra characteristics
Service after sale warranties, maintenance and handling of complaints
Durability long life of the product, resistance
Safety risk of injury

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Determinants of Service Quality (Servqual)

A system approach of the customer satisfaction through the different attributes of service quality

Input Responsiveness Empathy Output
Availability / Access Assurance
(Customer Courtesy / Friendliness Credibility (Customer
requirements) Assurance / Security satisfaction)
Reliability
Communication Time
Courtesy
Competence Understanding customers
Tangibles

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Consequences of Poor Quality (Cost of poor Quality)

Products of poor quality may disappoint the buyer and leads to product failure

Loss of business Loss of reputation Higher Costs

The customer will not The customer will Poor Quality costs
buy the product again or any other complain about their bad experience money and reduces profitability.

product from the company. to friends and relatives.

A study showed: While a satisfied customer will tell a few people about his or her experience, a dissatisfied
person will tell an average of 19 others.

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The TQM System Model Customer
Focus
 Leading with objectives
 Customer oriented Total Planning
 Internal and external customer relations Involvement Process
 Zero- Error program
 Work in processes Continuous
 Continues improvement with measuring units Improvement
 Involvment of all employees
 trainings and further education
 frequent management audits

Process Process
Improvement Management

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DIN EN ISO 9001

The DIN EN ISO 9001 certification demonstrates that you have established an effective quality management
system

 ISO 9001 is a set of international standards for quality
management systems.

 Companies that meet the requirements of that standard
can receive IS0 9001 registration.

 ISO 9000 series consists of 3 documents:
 ISO 9000:2005; Fundamentals
 ISO 9001:2008; Requirements
 ISO 9004:2000; Guidelines for performance
improvements

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The 7 Classic Tools of Quality

The most common Quality Tools that can be used to solve the vast majority of quality-related issues

Pareto Chart Scatter Diagram Control Chart Flow Chart

Upper control limit

Frequency Percent
Variable 1

Lower control limit

AB C DE Variable 2 Time

Cause-and-effect Histogram Checklist / Check Sheet

Cause Effect Distribution Task / Process Step Count
Repeat Mon. Tues. Wed. Thu.
Materials Fri. Sat. Sun.

Methods Process 1

Count 1. TTaostkaDl escription D <Value
Wed. 2. TSacsokreDescription >
Type of Error / Reason
Mon. Tues. // Thu. Fri. 3. Ta2s2k Description D
1. Description of Type //// // // //// // //// / 4. Ta1s6k Description
Frequency 2. Description of Type // /// //// //// / Proc2e3ss 2 AN -
3. Description of Type //// / //// /// //// // 1. Task Description
4. Description of Type //// / /// //// / D <Value
… /// 19 >
… // 2. Task Description
… D <Value
Total Errors 3. Task Description >

… AN 

D

…

16 9 13 18 22 80

Manpower Machinery

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Pareto Chart

Pareto Charts rate issues according to importance and frequency by prioritizing specific problems or causes in a
manner that facilitates problem solving

500 100%

400 80%

300 60%

200 220 190 60 30 20 40%
20%
100 Equipment Transport Phone/Fax Supplies 0%
0
Salaries

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Pareto Chart

This sample slide shows two Pareto Charts to compare different types of customers experience

Complaints: Residential Complaints: Commercial

30 20

25

15

20
Calls
15 Percentage of Sales 10

10 7

10 5

5 7 5

0 f 4 2 3
n
o w 0 1
own
f

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Scatter Diagram

Scatter Diagrams illustrate positive and negative directions of relationships and to discover cause and effect
relationships, as well as bonds and correlations, between two variables

October
July
April

January
October

July
April
January

012345

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Control Chart

The Quality Control Chart shows a process over a specific period of time and identifies trends, shifts and
patterns

70

60 Abnormal variation Upper Control Limit
due to assignable sources (UCL)

Average range or quality 50 Normal variation

due to chance

40

Process Average
(or Target Value)

30

20

10 Out-of-control Point Abnormal variation Lower Control Limit
(Special Cause) due to assignable sources (LCL)

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Time

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General Flow Chart Symbols

Placeholder for your own sub headline

Placeholder Placeholder Placeholder Placeholder Placeholder Yes Placeholder Placeholder
Text Placeholder
Yes Placeholder
No Text Placeholder

No Placeholder COMPANYLOGO

 The text that you Yes Text
insert will retain the Text Text
same style and format
as the placeholder text. No

 The text that you
insert will retain the
same style and format
as the placeholder text.

Flow Chart Multi Document Card Merge
Terminator Punched Tape Stored Data
Symbols Preparation Or Delay
Manual Input Summing Junction Sequential Access Storage
Process Manual Operation Collate Magnetic Disk
Terminator Connector Sort Direct Access Storage
Decision Off-Page Connector Extract Display
Data
Predefined Process COMPANYLOGO
Internal Storage
Document

Fishbone Diagram (Cause and Effect / Ishikawa)

Ishikawas illustrate multiple levels of potential causes (inputs), and ultimate effects (outputs), of problems or
issues that may arise in the course of business

Cause Effect

Description 1 Description 2 Description 3

Placeholder Placeholder Placeholder Problem /
Placeholder Placeholder Placeholder Quality

Placeholder Placeholder Placeholder Characteristic
Placeholder Placeholder Placeholder
Effect that needs
improvement

Description 4 Description 5 Description 6

Developed by Dr. Kaoru Ishikawa in 1943 COMPANYLOGO

Histogram

A Histogram is a graphic summary of variation in a set of data that can be analyzed in order to make decisions
regarding them

40

34

30

29 29

20 22 22

14 14
10 11 11

8 8

0 24 42

200 250 300 350 400 450 500 550 600 650 700 750 800 850 900

Very effective for statistical or questionnaire results COMPANYLOGO

Check Sheet (Tally Sheet)

The Check Sheet is a simple document that is used for collecting data in real-time and at the location where the
data is generated

Product <product name> ID R123 Number Inspected 265
Stage Final Inspection Date 12th Jan Checked by John Doe

Fehlerart / Grund Mon. Tues. Count / Check Thu. Fri. Subtotal
Wed.
1. Description of Type //// // //// // //// / 22
//

2. Description of Type // /// // /// //// / 16

3. Description of Type //// / //// //// / //// // 23

4. Description of Type //// / /// //// // /// 19

…

…

…

Grand Total 16 9 13 18 22 80

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Check List

The items to be performed for a task are listed in a Check List to indicate as complete when each is
accomplished

Task / Process Step Repeat Mon. Tues. Wed. Count Fri. Sat. Sun.

Thu.

Process 1

1. Task Description D <Value>

2. Task Description D

3. Task Description AN -

4. Task Description D <Value>

Process 2

1. Task Description D <Value>

2. Task Description AN 

3. Task Description D

……

D = Daily AN = As Needed COMPANYLOGO

Data and Analysis

2D Pie Chart

A circular chart that is cut into slices that represent the frequency of the collected data.
The bigger the slice, the higher the number or percentage

 This is a placeholder text. This text can 1200 210 270 Description 1
be replaced with your own text. 500 Description 2
Description 3
 The text demonstrates how your own 800 Description 4
text will look when you replace the Description 5
placeholder with your own text. 1000 Description 6
Description 7
 If you don’t want to use the style and Description 8
size of the fonts as used in this
placeholder it’s possible to replace it
by selecting different options.

1300

1300

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3D Pie Chart

A circular chart that is cut into slices that represent the frequency of the collected data.
The bigger the slice, the higher the number or percentage

 This is a placeholder text. This text can 1200 210 270 Description 1
be replaced with your own text. Description 2
1300 500 Description 3
 The text demonstrates how your own Description 4
text will look when you replace the 1000 800 Description 5
placeholder with your own text. Description 6
Description 7
 If you don’t want to use the style and Description 8
size of the fonts as used in this
placeholder it’s possible to replace it 1300
by selecting different options.

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Column Chart

Column Charts are useful for showing data changes over a period of time or for illustrating comparisons among
items

70

60 65

50

50

40 45
40

30 35
30

20 25

20

10

0 Text 2 Text 3 Text 4 Text 5 Text 6 Text 7 Text 8
Text 1

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3D Column Chart

Column Charts are useful for showing data changes over a period of time or for illustrating comparisons among
items

65

50
45

40
35

30
25
20

Text 1 Text 2 Text 3 Text 4 Text 5 Text 6 Text 7 Text 8

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3D Column Chart

Column Charts are useful for showing data changes over a period of time or for illustrating comparisons among
items

20 25 35 30 45 50 65

40

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Box Plot / Whisker Plot (PowerPoint) H IJ

Each individual element summarizes the distribution of data within a data set COMPANYLOGO

80
70
60
50
40
30
20
10

0

ABCDE FG

Box Plot / Whisker Plot (Excel based)

Each individual element summarizes the distribution of data within a data set

100 64 86 71 87 56
87 31.5 33.5 30 58 27.5

80 -2 -37 -5 -18 12

60 Row 2 Row 3 Row 4 Row 5 Row 6
45
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40

20

0
-20 -15

-40

-60

Row 1

Box Plot / Whisker Plot (Excel based)

Each individual element summarizes the distribution of data within a data set

 This is a placeholder text. This text can be replaced with 50 43 Max. value
your own text. 45
40 32 Q3 = 3nd quartil (75%)
 The text demonstrates how your own text will look when 35 23 Q2 = Median (50%)
you replace the placeholder with your own text. 30 16 Q1 = 1st quartil (25%)
25
 If you don’t want to use the style and size of the fonts as 20 5 Min. value
used in this placeholder it’s possible to replace it by 15
selecting different options. 10 Row 1 COMPANYLOGO

5
0

Bar Chart

Bars charts are useful for displaying series as sets of horizontal bars which are proportional to the value of the
item it represents

Description 1 840 3347
Description 2 1808
Description 3
Description 4 1346
Description 5
Description 6 1431
Description 7
Description 8 2589 2992
Description 9 3365
Description 10
Description 11 5701
Description 12
Description 13 1660
Description 14
1214
1023

3358

1419

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Line Chart

Line Charts are useful for showing data changes over a period of time or for illustrating comparisons among
items

70

60

50

40

30

20

10

0 Text 2 Text 3 Text 4 Text 5 Text 6 Text 7 Text 8

Text 1

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ValuesRun Chart (Trend Chart)

A Run Chart is used to display observed data in a time sequence representing some aspect of the output of
manufacturing or other business process

9 Rate %
Rate % Run Alert

8 Mean Rate
7
6
5
4
3
2
1
0

Jan May Sep Jan May Sep
Subgroups

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Productivity Value (in %)Cusum Chart (Excel based)

The Cusum Chart (Cumulative Sum) is a sequential analysis technique used for monitoring change detection
(change in mean value) over time

120

100

80

60

40

20

0

-20

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Weeks

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ABC Analysis

ABC Analysis is methodology that gives a quickly and simple review of assortments of products in retail,
wholesale or manufacturing businesses

100

90

80

Turnover / Value in % 70

60

50

40

30

20 B C D

10 A

0 100

0 10 20 30 40 50 60 70 80 90

Range of Products / Quantity in %

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Radar Chart / Spider Chart Description 1 Series 1
40 Series 2
Enter your subheadline here 35
Description 12 30 Description 2
 This is a placeholder text. This text can Description 11 25 Description 3
be replaced with your own text. Description 10 20 Description 4
15
 The text demonstrates how your own 10
text will look when you replace the 5
placeholder with your own text. 0

 If you don’t want to use the style and
size of the fonts as used in this
placeholder it’s possible to replace it
by selecting different options.

Description 9 Description 5

Description 8 Description 6

Description 7

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Matrix Chart – L-Shaped

Enter your subheadline here

Customer A Customer B Customer C Customer D Customer E

Description 1
Description 2
Description 3
Description 4
Description 5
Description 6
Description 7
Description 8
Description 9
Description 10

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Priorities Matrix

The Prioritization Matrix helps to rank problems or issues by a particular criterion that is important to the
organization (to be filled out with the group)

Organization Quality Elements

Unit Quality Policy Organization Contract Purchasing Training
revision

(Quality) Management D

(Central) Quality P ID
Assurance Unit

Costing

Technical office

Purchasing P

Site management
Chief engineer
Site Manager

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Priorities Matrix

The Prioritization Matrix helps to rank problems or issues by a particular criterion that is important to the
organization (to be filled out with the group)

Criteria Frequency Importance Feasibility Total Points

Problem

Description 1 How frequently does Sum up all
the problem occur? the votes

Description 2 What are the problems that you
want to resolve first?

Description 3 Is it realistic that
we can resolve the problem?

Description 4

Description 5

….

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Matrix Chart – T-Shaped

Enter your subheadline here

Description 1 Model Model Model Model Model
Description 2 A B C D E
Description 3
Description 4

Large Volume
Small Volume

Description 5
Description 6
Description 7
Description 8
…

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Matrix Chart – X-Shaped

Enter your subheadline here

Text 1 Text 2 Text 3 Text 4 Text 5 Description 1 Text 6 Text 7 Text 8 Text 9 Text10
Description 2
Description 3
Description 4

Description 5
Description 6
Description 7
Description 8

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Matrix Chart – Y-Shaped

This Y-shaped matrix shows the relationships between customer requirements, internal process metrics and the
departments involved

Primary relationship  This is a placeholder text. This text can
Secondary relationship be replaced with your own text.
Minor relationship
 The text demonstrates how your own
text will look when you replace the
placeholder with your own text.

Production capacity  If you don’t want to use the style and
size of the fonts as used in this
placeholder it’s possible to replace it
by selecting different options.

Inventory levels

Order lead time

Carrier performance

Internal process matrix

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House of Quality (Quality Function Deployment / QFD)

House of Quality is a diagram, resembling a house, used for defining the relationship between customer desires
and the firm/product capabilities

++  Weak Relationship
++ Strong Positive Correlation
+ + Positive Correlation
‒ Negative Correlation
  Strong Negative Correlation
++  Objective is to minimize
 Objective is to maximize
+ X Objektive is to target
‒
 ++ ‒ Competitive Analysis
+‒
+

Colums 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Direction of Improvement  +  +  +   + +   + + +

Quality Characteristics
Row
Max Relationship 012345
Value in Row
Relative weight COMPANYLOGO
Weights /
Importance
Placeholder
Placeholder
Placeholder
Placeholder
Placeholder
Placeholder
Placeholder
Placeholder
Placeholder
Placeholder
Placeholder
Placeholder
Placeholder
Placeholder
Placeholder
Our Company
Competitor 1
Competitor 2
Competitor 3
Competitor 4
Competitor 5
Demanded Quality

1 xx xx   
2 xx xx ++  
3 xx xx
4 xx xx x ++ x ++
5 xx xx ++ 
6 xx xx 
7 xx xx 
8 xx xx
9 xx xx ++ 
10 xx xx 

++
x

Target or Limit Value

Difficulty xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx
Max Relationship Value in Column xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx

Weight / Importance xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx
Relative Weight xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx

Tree Diagram

A Tree Diagram can be used to map out the path and tasks that need to be accomplished in order to solve a
problem, achieve a goal or resolve an issue

Step 1 Step 2 Step 3 Step 4

Sub goals Task

Identify major tree headings Task tasks that must be accomplished in order to
reach the sub-goals,

Task

Identify your goal. Heading Task Additional activities can be accomplished in this step.
Task Additional activities
Task Additional activities

Heading Task Additional activities
Task Additional activities
Task Additional activities

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Process Decision Program Chart (PDPC)

The Process Decision Program Chart systematically identifies what might go wrong in a plan under development

Plan Element 1. Identify the high level
steps and sequence of the
Plan Element Plan Element Plan Element Plan Element plan.

PDPC Plan Plan Plan Plan Plan Plan Plan Plan Plan Plan Plan 2. Identify what could go
Element Element Element Element Element Element Element Element Element Element wrong.

3. Identify possible
countermeasures for each
potential problem.

Possible Possible Possible Possible
Problem Problem Problem Problem

Possible Possible Possible Possible Possible Possible Possible Possible
Counter- Counter- Counter- Counter- Counter- Counter- Counter- Counter-
measure measure measure measure measure measure measure measure

O O O O X X O O

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Concentration Diagram

The Defect Concentration Diagram can be used to analyze the causes of the product or part defects by showing

the location of errors

Sample product drawing Date 01/12/11  Define the fault or faults (or
Defective 18 whatever) being investigated.
Inspector <Name>
 Make a map, drawing, or picture.

 Mark on the diagram each time a fault
(or whatever) occurs and where it
occurs.

 After a sufficient period of time,
analyze it to identify where the faults
occur.

Defect Type Scratch Pit
Rust Burr

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Interrelationship Diagram

Interrelationship diagrams are used to define the roles among activities and maps out the links between
different items of a central issue or problem

 Items that have a high number of 'out' arrows are In = 0 Out = 1
important drivers.
We don´t know
 The number of arrows leading 'in' and 'out' of each item how to solve
are counted and tabulated. problems

 A high number of 'in' arrows suggests important outcomes. In = 1.5 Out = 1 In = 0.5 Out = 1.5

We don´t think it is We are afraid to
important to take action

resolve the issue

We change We don´t identify
priorities too our objective

frequently In = 4 Out = 0

In = 0 Out = 2.5 Outcome

Driver COMPANYLOGO

Interrelationship Diagram

Looking for cause / influence relationships between arrows

1A 2A 3A
E or B
or E or B
DC
EB DC
decision: A strongly influences C
DC decision: no influences
5A
decision: no influences EB 6A
EB
4A or
D or C
or DC
decision: D strongly influences C
EB decision: B strongly influences C

DC

decision: no influences

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Benchmarking Project 1 Activity Network Diagram

A- Develop broad plan 03 58 Enter your subheadline here
5

2

2 B – Get approval 58 7 10

34 C – Identity team 7 10 17 20

10

2 D – Train team 17 20 19 22

21 26 E – Develop 5 F – Conduct preliminary
19 24 detailed plan research

G – identity BM6 20 4 H – Identity key 19 22 23 26
partners and practice, measures
schedule visits 7 and documentation

38 42 I – Collect public 23 28 26 31
23 27 Data

3 K – Identity
current state
8

2 0 37 42 6 23 26 33 36
15 10
28 31
10 12 11 28 42 9

45 54 M – Visit BM 26 40 0 L – Analyze public data 39 42
39 48 partners N – Develop new process 33 36

6 11 13 14 15

0

0 12 2 51 54
39 42

O – Finalize new process 53 56
51 54
P – Get approval for
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53 56