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What is TQM?
Meeting quality expectations as defined by the customer
Integrated organizational effort designed to improve quality of processes at every business level
Defining Quality – 5 Ways
1. Conformance to specs - designer based
2. Fitness for use - user based definition
Does product/service meet tolerances defined by designers? E.g. 20 min wait for pizza (average) + 10 min acceptable (?) delay. What about a customer? Is a 30 min. delay acceptable?
Evaluates performance for intended use. E.g. Jeep vs. Jaguar on mountain roads?
3. Value for price paid - user based def.
Evaluation of usefulness vs. price paid. E.g. receive the same value but at a lower price
excellent warranty service 5.user based def.user based definition e. Psychological criteria . ambiance. prestige.g. Quality of support after sale.Defining Quality – 5 Ways 4.g. E. friendly staff may leave the impression of higher quality Case: Gold Coast Advertising 4 . Support services .
Evolution of TQM – New Focus 5 .
Focus on Customer Identify and meet customer needs Stay tuned to changing needs.TQM Philosophy – What‟s Different? 1. fashion styles 96% of customers do not complain (stop buying and/or tell others 9-11 people). e.g. satisfied customers 1 person Fixing the problem after the complaint customers become more loyal than if they had not had the problem in the first place It costs more to obtain a new customer than to retain one Customers increase their spending the longer they buy from a company 6 .
Continuous Improvement Continuous learning and problem solving (jap.TQM Philosophy – What‟s Different? 2.) Kaizen: requires that the company continually strive to do better through learning and problem solving (“small doses of medicine are better than one large dose”) Perfection can NEVER be achieved 7 .
TQM Philosophy – What‟s Different? 2.6 defects per one thousand => 2. Continuous Improvement Continuous learning and problem solving 6 sigma: 3.600 per million 52. only 68 passengers per year will have misplaced luggage 3 sigma: 2.000 passengers per year will have misplaced luggage 8 . Example: If 20 mln passengers per year pass through London‟s Heathrow Airport.4 defects per one million.
Employee Empowerment (they are expected to seek out. and correct problems) Inspection (before) vs..TQM Philosophy – What‟s Different? 3. packaging department is an internal customer of assembly department) Employees no longer afraid of reporting problems 9 .g. prevention & problem solving (now) 5. Focus on both external (who purchase company‟s goods/services) and internal customers (e. identify. Quality at the Source 4.
Team Approach – Quality Circles (“two heads are better than one”) Teams formed around processes – 8 to 10 people Meet weekly to analyze and solve problems Studying practices at “best in class” companies. receiving inspection 10 7. Benchmarking 8. e.g.TQM Philosophy– What‟s Different? (continued) 6. many companies use Amex to benchmark conflict resolution Certifying suppliers vs. Managing Supplier Quality .
Just-in-Time „Pull‟ system of production/purchasing Customer starts production with an order Involves „vendor partnership programs‟ to improve quality of purchased items Reduces all inventory levels Inventory hides process & material problems 11 Improves process & product quality .TQM Philosophy– What‟s Different? (continued) 9.
Just-In-Time (JIT) Example Work in process inventory level (hides problems) Unreliable Vendors Scrap Capacity Imbalances 12 .
Unreliable Vendors Scrap Capacity Imbalances 13 .Just-In-Time (JIT) Example Reducing inventory reveals problems so they can be solved.
14 . Quality Failure Costs (Internal & External Failure) Early detection/prevention is less costly May be less by a factor of 10 Case: Delta Plastics Inc. (A): Question 1. Quality Control Costs (Prevention & Appraisal) II.Cost of Quality – 4 Categories I. Identify the different costs of quality described in the case.
Quality Function Deployment Used to translate customer preferences to design 3. Seven Tools of Quality Control Tools typically taught to problem solving teams 15 . never ending problem solving process 2. Plan-Do-Study-Act Cycle (PDSA) Also called the Deming Wheel after originator Circular.Ways of Improving Quality 1.
PDSA Details Plan Do Evaluate current process Collect procedures. data. implement new process Study Act 16 . identify problems Develop an improvement plan. performance objectives Implement the plan – trial basis Collect data and evaluate against objectives Communicate the results from trial If successful.Ad 1.
PDSA (continued) Cycle is repeated After act phase. start planning and repeat process 17 .
Voice of the engineer 1. Customer-based benchmarks 18 . Voice of the customer 2.Ad 2. QFD Details Process used to ensure that the product meets customer specifications (Example: Student‟s backpack) 3.
QFD . Technical Benchmarks 19 .House of Quality Adding trade-offs. Trade-offs 6. Targets 5. targets & developing product specifications 4.
Seven Problem Solving Tools (i) Cause-and-Effect Diagrams (ii) Flowcharts (iii) Checklists (iv) Control Charts (v) Scatter Diagrams (vi) Pareto Analysis (vii) Histograms 20 .Ad 3.
21 .Cause-and-Effect Diagrams Called Fishbone Diagram Focused on solving identified quality problem Used to find problem sources/solutions Steps Identify the problem to correct Draw main causes for problem as „bones‟ Ask „What could have caused problems in these areas?‟ Repeat for each sub-area.
Problems with Airline Customer Service 22 .Fishbone Chart .
Material.Problems with Getting to Work on Time Consider the everyday task of getting to work on time or arriving at your first class on time in the morning. Machinery. Manpower 23 . Draw a fish-bone chart showing reasons why you might arrive late in the morning. 4 M: Method.Fishbone Chart .
Flowcharts Used to document the detailed steps in a process Often the first step in Process Re-Engineering 24 .
per operator 25 . per machine. per shift.Checklist Simple data check-off sheet designed to identify type of quality problems at each work station.
Control Charts Important tool used in Statistical Process Control The UCL and LCL are calculated limits used to show when process is in or out of control 26 .
Scatter Diagrams A graph that shows how two variables are related to one another Data can be used in a regression analysis to establish equation for the relationship 27 .
6. 2. 15 Employee turnover (new hires + terminations) Weeks 1 – 8: 1. 10. 3. 6. 37. 5. 35. 41. 8. 12. 5 28 . 28. 44 With defects: 5. 11. 40. 5.example No. 4. of shipments: Weeks 1 – 8: All shipmnts: 23. 31.Linear regression . 14.
Pareto Analysis Technique that displays the degree of importance for each element Named after the 19th century Italian economist Often called the 80-20 Rule Principle is that quality problems are the result of only a few problems e.g. 80% of the problems caused by 20% of causes 29 .
What do you conclude? Reason for Delay Frequency 11 10 Awaiting engineering decision No schematic available Test equipment down Delay in inspection Inadequate parts Lack of personnel available 22 15 40 3 30 .Pareto Analysis Develop a Pareto analysis of the following reasons of delay in a production process.
by percent total defects .Pareto Analysis of Wine Glass Defects (Total Defects = 77) 70 Frequency (Number) 88% 54 72% 93% 97% 100% 100% Cumulative Percent 31 60 50 40 30 20 10 0 80% 60% 40% 12 5 4 Contamination 20% 2 0% Misc. Scratches Porosity Nicks Causes.
Histograms A chart that shows the frequency distribution of observed values of a variable like service time at a bank drive-up window Displays whether the distribution is symmetrical (normal) or skewed 32 .
Quality Awards and Standards Malcolm Baldrige National Quality Award The Deming Prize ISO 9000 Certification ISO 14000 Standards 33 .
MBNQA. 3M. service. Ritz-Carlton Typical winners have scored around 700 points 34 . and small business Past winners.What Is It? Award named after the former Secretary of Commerce – Reagan Administration Intended to reward and stimulate quality initiatives Given to no more that two companies in each of three categories. FedEx. manufacturing. IBM.
The Deming Prize Given by the Union of Japanese Scientists and Engineers since 1951 Named after W. Edwards Deming who worked to improve Japanese quality after WWII Not open to foreign companies until 1984 Florida Power & Light was first US company winner 35 .
ISO Standards ISO 9000 Standards (published in 1987): Certification developed by International Organization for Standardization Set of internationally recognized quality standards Companies are periodically audited & certified ISO 9000:2000 Quality Management Systems (QMS) – Fundamentals and Standards ISO 9001:2000 QMS – Requirements (customer) ISO 9004:2000 QMS .Guidelines for Performance responsibility 36 ISO 14000: Focuses on a company‟s environmental .
ISO Standards (1) Design/Development -> (2) Procurement -> (3) Production -> (4) Installation -> (5) Servicing ISO 9001: 2000 (1) (5) ISO 9002. ISO 9003: withdrawn. incorporated into ISO 9001: 2000 ISO 10011: Guidelines for Auditing & Quality Management 37 .
Juran Armand V. Feigenbaum Phillip Crosby Kaoru Ishikawa Genichi Taguchi 38 .Quality Gurus Walter A. Edwards Deming Joseph M. Shewhart W.
Why TQM Efforts Fail Lack of a genuine quality culture Lack of top management support and commitment Over.and under-reliance on SPC methods 39 .
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