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
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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