TQM & OM
TQM = Customer-Driven Quality Management
Customer Quality Measures
Customers typically relate quality to: 1) Feature-based measures (“have or have not”) determined by design diamond example: marquise shape diamond vs. round diamond 2) Performance measures (“range of values”) conformance to design or ideal value diamond example: 4Cs -- carat, clarity, color, cut In this class, we will focus more on analyzing performance measures.
costs of quality (prevention. feel.What are the Different Views of Quality?
Customer’s View (more subjective view):
Producer’s View (more objective view):
Transcendent view – image of excellence quality of the design (look.. Fitness for intended use – customer needs/expectations. writing quality procedures appraisal costs: inspecting and measuring product characteristics scrap and rework costs: internal costs of defective products warranty costs: external costs for product failures in the field
increasing quality conformance reduces product costs and raises 3 profits. # of defects per million products is a measure of conformance. e. consider both feature and performance measures to assess value. scrap & warranty costs). appraisal. Value = Quality / Price (value determined by individual customers)
conformance to requirements.
prevention costs: training. and function).
Mass production and inspection quality paradigm:
focus on designing and building products for mass consumption.
. quality is maintained by inspecting and detecting bad products. push products on the customer (limit customer choices). producer knows the customer directly.History of Quality Paradigms (producer / customer relationship)
Customer-craft quality paradigm:
design and build each product for a particular customer. major innovation to this paradigm: statistical process control
TQM or “Customer-Driven Quality” paradigm:
potential customers determine what to design and build. higher quality obtained by focusing on preventing problems and continuously reducing variability in all organizational processes.
(example: SPC) Inspect products
Detection Finding & Fixing Mistakes (REACTIVE)
. Quality Assurance (QA) 2. Total Quality Management (TQM) 2. Inspection
incorporates QC/QA activities into a company-wide system aimed at satisfying the customer.The Quality Hierarchy (Evolution)
Prevention stop problems at source. greater design emphasis (PROACTIVE)
4. operational techniques to make inspection more efficient & to reduce the costs of quality. (involves all organizational functions) planned and systematic actions to insure that products or services conform to company requirements (example: product quality plans). Quality Control (QC) 1.
Inspection Approach999 Out of 1000 Syndrome
People often think that doing something right 99 percent of time (99 out of 100) is good enough. there would be the following: 5.000 incorrect surgical operations per week 2 short or long landings per day at each major airport Others: ___________?
. However. at this level.
” Quality is meeting or exceeding customer expectations.Some Quality Definitions
“The totality of features and characteristics of a product or service that bears on its ability to satisfy given needs.
Types of Customers
•A process has customers. suppliers. and process managers!
THE NEXT PROCESS IS THE CUSTOMER!
Types of Customers
Immediate or Internal Customer
Need to define your customer needs and expectations. Always provide feedback to the previous process (supplier)
engineering. design. It views organizations as a collection of processes. production. customer service …) to focus on meeting customer needs and organizational objectives.
TQM is a management philosophy which seeks to integrate all organizational functions (marketing. It maintains that organizations must strive to continuously improve these processes by incorporating the knowledge and experiences of workers.
. every time. right the first time.The Simple Objective of TQM
“Do the right things.
TOTAL Everyone in the organization is responsible for quality. via mission. and above all. financial support. and everything in the organization is addressed for improvement. management involvement. and expectations. desires. strategic and systematic approach involving continuous performance improvement to provide goods and services that offer the highest value. QUALITY All products or services consistently meet or exceed customer needs. participative supervision. policies. communication. values. vision.TQM
DEFINITION OF TOTAL QUALITY MANGEMENT A customer focused. process improvement. MANAGEMENT The PLANNING & EXECUTION that makes it happen. rewards and recognition. goals. training and education.
Have external and internal customers define quality. instead of business-asusual and short-term results Align all production. plan and work for better performance and long term success. financial. and personnel systems with the organization’s mission. information. then make the changes that make economic sense Make quality a competitive strategy. vision. and goals
people. and make decisions. employees. systems. foster on-going teamwork between managers. use state-of-the-art technology. and suppliers.TQM Continued
Proactively lead and steer change. help improve processes. through culture. customers. design quality in the first time. and partnerships Enable employees to routinely solve problems. and on customer oriented outcomes instead of operational status quo. Focus on prevention instead of detection. unions. make improvement a habit. on doing it right the first time instead of doing it over. a never ending journey.
procedures. remove barriers to effective performance. strive for perfection. encourage innovation and better design. and equipment. quality.TQM Continued
Facilitate data gathering and process analysis. update methods. and product performance/reliability.
. tools. availability of product and service. Achieve total customer satisfaction where “value” is perceived as the combination of cost.
It requires a commitment toward sustained (strategic and systematic) continuous improvement.Some Basic Tenets of TQM
1. The customer determines quality. 2. 3. Prevention. Top Management must provide leadership and support for all (total) quality initiatives. We must speak with data not just opinions. Quality is a moving target. is the key to producing high quality. We must design quality into processes and reduce variability. People working within systems create quality through teamwork. 4. 6. not detection. Improving quality requires the establishment of effective quality metrics.
1980s) Kaoru Ishikawa (post WWII . Quality Innovators and the Main Years of their Work:
Walter Shewhart (1920s -1940s) W. Edwards Deming (post WWII through 1980s) Joseph M.S.1980s) Shigeo Shingo (post WWII . Juran (consultant post WWII through 1980s) Philip Crosby (1980s) Armand Feigenbaum (1970s .1980s) Genichi Taguchi (1960s .Innovators of Modern Quality Thinking
Japanese Quality Innovators:
engineering. subjective quality: quality is relative to how people perceive it. (value)
.) “founder of the control chart” (e.Walter A Shewhart
Pioneer of Modern Quality Control
recognized the need to separate variation into assignable and unassignable causes (defined “in control”. originator of the plan-do-check-act cycle.
defined quality in terms of objective and subjective quality
objective quality: quality of a thing independent of people. X-bar and R chart). and economics. perhaps the first to successfully integrate statistics.g.
break down departmental barriers (create win-win situations). abolish annual rating or merit system. Edwards Deming
Studied under Shewhart at Bell Laboratories Contributions:
well known for helping Japanese companies apply Shewhart’s statistical process control. cease mass production .
Main Contribution is his Fourteen Points to Quality
(some key points below)
create constancy of purpose. eliminate slogans .W. drive out fear and build employee trust.
. seek long-term supplier relationship (end low cost bidding).build quality into products.they provide no value in terms of improving quality. eliminate numerical goals.
The Deming Chain Reaction (proposed W. Edwards Deming)
Improve Quality Greater Market Share (products with higher quality at less cost)
Costs decrease: (less rework. fewer mistakes. better use of material and equipment)
Stay In Business
Provide Jobs and More Jobs
enlightened the world on the concept of the vital few. directed most of his work at executives and the field of quality management. quality control. developed the Juran Trilogy for managing quality:
. trivial many which is the foundation for pareto charts. Juran
also well-known for helping improve Japanese quality. and quality improvement.Joseph M.
appraisal.performance standard is zero defects.quality is defined by conformance to requirements.Other US Quality Innovators
Philip Crosby (quality management)
Four absolutes of quality including:
#1. #4 .system for causing quality is prevention not appraisal.. not close enough. #2 .g.measurement of quality is the cost of nonconformance
Stressed a systems approach to quality (all organizations must be focused on quality) Costs of quality may be separated into costs for prevention. and failures (e.
. scrap. #3 . warranty).
not short term profits.full participation. respect for humanity as a management philosophy . use facts and data to make presentations. next process is your customer. cross-functional management. cause-and-effect diagram) advanced the use of quality circles (worker quality teams).g.
. developed concept of Japanese Total Quality Control quality first .Kaoru Ishikawa
developed concept of true and substitute quality characteristics true characteristics are the customer’s view substitute characteristics are the producer’s view degree of match between true and substitute ultimately determines customer satisfaction.. advocate of the use of the 7 tools (e.
Shigeo Shingo (post WWII . referred to his system as a “zero defect” approach because Zero Defects is the ultimate goal.1980s)
advocated the replacement of statistical process control with source inspection (control quality at the source. Promoted the use of parameter design (application of Design of Experiments) or robust engineering.Other Quality Innovators
Genichi Taguchi (1960s .
. rather than through sampling inspections). set up poke-yoke devices (mistake proofing devices) such as sensors and monitors to identify defects at the point they occur.1980s)
quality loss function (deviation from target is a loss to society).