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TQM 121211111152 Phpapp01
TQM 121211111152 Phpapp01
Preface
This is a PowerPoint file I created in order to help me in my studies. The material in these slides are a distilled version of the literature from 2 books 1. Total Quality Management 3rd Edition Besterfield, Michna, Besterfield, Sacre. 2. Total Quality Management Bharat Wakhlu
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Introduction Customer Satisfaction Leadership Employee Involvement
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Introduction
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Quality
Degree to which a set of characteristics fulfils requirements. Q=Performance/Expectations TQM; T = Total i.e. company-wide, suppliers, customers; M = Management i.e. art of directing and controlling
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inherent
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Dimensions of Quality
Dimension Meaning
Performance
Features Conformance
Reliability
Durability Service
Consistency of performance
Useful life Resolution of complaints
Response
Aesthetics Reputation
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Total Quality
1. Performance Superiority 2. Delight customers
Definition of TQM
TQM is the art of managing the whole to achieve excellence. TQM is a philosophy and a set of guiding principles that represent the foundation of a continually improving firm. It is the application of quantitative methods and HR to improve all processes within a firm and exceed customer needs now and in the future.
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2.
3.
4.
5.
6.
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Definition
Priorities Decisions
Product oriented
Second to service and cost Short term
Customer oriented
Equal to service and cost Long term
Emphasis
Errors Responsibility
Detection
Operations Quality Control
Prevention
System Everyone
Problem Solving
Procurement Managers Role
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Managers
Price Plan, assign, control, enforce
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Teams
Life cycle costs, Partnership Delegate, coach, facilitate, mentor
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CUSTOMER FOCUS
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Paradigms of TQM
Belief that people are a potential source of beneficial forces will lead to total quality Functional and Hierarchical divisions of a firm contribute to parochial thinking not good
Gurus of TQM
Shewhart 1. Economic Control of Quality of Mfg product 2. Control Chart Theory 3. Assignable and chance causes of variation 4. Rational Subgroups 5. PDSA cycle
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Gurus of TQM
Deming 1. Out of the Crisis 2. Quality, Productivity and Competitive Position 3. 14 points to improve q,p,c 4. Taught SPC and quality to Japanese
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Gurus of TQM
Juran 1. Jurans Quality control Handbook 2. Project Improvements based on ROI 3. Promoted commitment to quality at all levels 4. Juran Trilogy Planning, Control, Improvement
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Gurus of TQM
Feigenbaum 1. Total Quality Control 2. Customer Satisfaction 3. Genuine Management Involvement 4. Employee Involvement 5. Company wide total quality control 6. First line supervision leadership
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Gurus of TQM
Ishikawa 1. SPC texts in Japanese and English 2. Adapted TQC i.e. TQM in Japan 3. Fishbone diagram 4. Quality circles
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Gurus of TQM
Crosby 1. Quality is Free 2. Quality without tears 3. Do it right the first time 4. Zero defects
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Gurus of TQM
Taguchi 1. Loss Function 2. Quality Engineering 3. Robust design of parameters/tolerances
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Obstacles to TQM
1. 2. 3. 4. 5. 6. 7. 8. 9. Lack of management commitment Inability to change organization culture Improper planning Lack of continuous training and education Incompatible Org structure & isolated departments and individuals Ineffective measurement techniques Paying inadequate attention to customers Inadequate use of empowerment and teamwork Failure to continually improve
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Benefits of TQM
Improve quality Employee participation and satisfaction Teamwork and Working relationships Customer satisfaction Productivity Communication Profitability and Market Share
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Leadership
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Leader
A leader 1. Shapes 2. Promotes 3. Protects 4. Exemplifies the organizations values
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Staff
Lead Control Feedback
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Leadership Style
Best style
FEARFUL STYLE
RIGID STYLE
WHOLESOME STYLE
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4.
5. 6. 7.
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Deming Philosophy
Create and publish aims/purpose of firm Learn the new philosophy Understand purpose of inspection Stop awarding business on price alone Improve constantly and forever the system
Institute training
Teach and institute leadership
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Deming Philosophy
Drive out fear, create trust and a climate for innovation Optimize efforts of teams, groups and staff areas Eliminate exhortations for the work force Eliminate numerical quotas for workforce and MBO Remove barriers that rob people of pride of workmanship
Customer Satisfaction
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Customer Needs
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Notes
Customer Internal and External is the focus. Customer Satisfaction is subjective, hence hard to measure Customer Satisfaction should not be viewed in a vacuum
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Customer feedback
1. To discover customer dissatisfaction 2. Discover relative priorities of Quality
Modes of feedback
1. 2. 3. 4. Comment card Service industry Customer Questionnaire mail, telephone Focus groups like a GD Toll free telephone numbers complaints
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6. 7. 8. 9.
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Customer Complaints
Complain to Management 1%
Action
Do nothing 80%
Every complaint should be accepted, analyzed and acted upon because those who dont complain might have switched loyalty.
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Handling complaints
Accept feedback Empower front-line employees to resolve More inspection does not solve it; find the root cause Communicate complaint to everyone in firm Contact complainant and put mind at ease Be proactive about customer needs
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Employee Involvement
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Motivation
Maslows Hierarchy of needs Herzbergs 2-factor theory What employees want 1. Interesting Work 2. Appreciation 3. Involvement 4. Job Security
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2.
3. 4. 5. 6. 7. 8.
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Employee Surveys
1. 2. Quality Council creates Survey team Develop instrument (questionnaire).Constructs to be used are
1. 2. 3. 4. Personality Characteristics Management Styles Job attitudes The work
3.
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Suggestion Systems
Management must make it easy for employees to suggest improvements 1. Be progressive regularly ask employees
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Performance Appraisal
Purpose 1. Tells employee how they are performing 2. Basis for promotions and increments 3. Counseling 4. Opportunities Employee involvement is critical and appraisals must be continuous. Types Ranking, Narrative, Forced, Graphic
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Sporadic Waste
QUALITY PLANNING
20 10 0
Chronic Waste
0
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FEEDBACK
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PDSA Cycle
Plan
Act
Do
Study
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2 Analyze Process
6 Standardize solution
4 Implement
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1 Identify Opportunity
Identify problem Pareto analysis, Survey, Brainstorm, proposals Form team QC forms a multifunction team if required
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2 Analyze Process
Develop Process Flow diagram Define target performance measures Relevant Data collection Fishbone diagram
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4 Implement
Prepare implementation plan Obtain approval Implement process improvements
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6 Standardize solution
Positrol (Positive control) ensures important variables are kept under control Process Certification Operator Certification
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Kaizen
Process of continuous improvement in small increments without complex technology or high costs making processes better
Uses concepts like: Value/Non value added activities, Mudas, Motion studies, SOP, 5S, Visual Management, JIT etc
5S Sort, Simplify, Sweep, Standardize, Sustain
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Six Sigma
Uses Cp analysis as a way to measure progress We should reduce the process variability to keep process centered on the target . Process Capability Index = USL-LSL/6
Performance Measures
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Strategy
QC creates a total system of measures using info from stakeholders and firms VMG and values Ex: Quality % reduction in nonconformities % of certified suppliers
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Strategy
Cost % increase in inventory turnover % increase in output dollars per employee Similarly for innovation (NPD time), reliability (% processes having Cp=2), flexibility(setup time) etc. Tracked monthly to show trends, identify problems and allocate resources Depts create mechanisms and authorities to capture this data
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3. Capability Index
4. Taguchi Loss Function 5. Cost of poor quality 6. Malcolm Balridge National Quality Award
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Quality Costs
Those costs associated with the nonachievement of product or service quality as is required Quality cost programs quantifies this cost
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Quality Costs
Preventive cost: Cost used up in preventing recurrence of some failure. Ex: Customer surveys, Product testing, Quality audits Appraisal cost: Cost of assuring acceptability of product. Ex: laboratory support, measuring equipment, certifications
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Quality Costs
Internal Failure Cost: cost to evaluate, dispose off, & either correct or replace nonconforming products prior to customer delivery. Ex: rework and scrap, poor supply materials, internal failure labor loss External Failure Cost: After delivery. Ex: returned goods, updates, warranty claims, penalties, lost sales, liabilities, goodwill
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QMS
Registration under ISO involves assessment and periodic surveillance audit of the adequacy of a suppliers quality system by a 3rd party
Benefits of ISO 1. Customers are demanding compliance 2. To improve processes/systems 3. Global deployment of products 4. Snowball effect
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ISO 9000
Generic in nature It has 3 standards ISO 9000:2000 QMS fundamentals/vocabulary ISO 9000:2000 QMS requirements ISO 9000:2000 QMS guidelines for performance improvement
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6 Resource Management
Customer Satisfaction
7 Product Realization
Output Product
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Implementation
1. Top management commitment 2. Appoint management representative 3. Awareness 4. Appoint implementation team 5. Training 6. Time Schedule 7. Select element owners 8. Review present system 9. Write the documents 10. Install the new system 11. Internal audit 12. Management review 13. Preassessment 14. Registration 11/30/2013 Sourabh Jain
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Documentation
Policy
What will be done and why ?
Procedures
How
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Introduction
SPC is a technical tool for improving product and service quality. Pareto Diagram Process Flow Diagram Cause and Effect Diagram Check Sheets Histogram
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Pareto Diagram
Vital few and the useful many Ranks data classifications in descending order
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Pareto Diagram
Solving 50 % of vital few is better and easier than 50 % of useful many Never ending process
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Check Sheets
For ease of data collection Customized for situation
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Histograms
Graphically estimates Cp, relationships to specifications and target, shape of population and gaps in data Graphical and analytical
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Normal curve
Larger the Std Dev, flatter the curve (less data)
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Process Capability
= Rbar/d2 Cp = (USL-LSL)/6 USL-LSL=tolerance X X Cpk = min{(USL-Xbar) or (Xbar-LSL)}/3
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Cp and Cpk
1. Cp value does not change as process center changes 2. Cp=Cpk process is centered 3. Cpk<=Cp 4. Cpk>1 process conforms to specifications 5. Cpk<1 process not conforms to specifications 6. Cp<1 process not capable 7. Cpk=0 average =USL or LSL 8. Cpk <0 average outside specifications
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Scatter diagrams
For correlations
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