Mba Om 201-274 PDF

Quality Management for
Organizational Excellence
Lecture/Presentation Notes
By:
Dr. David L. Goetsch and
Stanley Davis
Based on the book
Quality Management for
Organizational Excellence
(Eighth Edition)
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seventeen: Quality Function
Deployment
• Matrix Number 5—Evaluates the
Correlation (supportive or impeding)
between the Technical Requirements
(HOWs).
 Each diagonal intersection of HOW
columns in the roof triangle is given a
plus sign (for supportive), or minus sign
(for impeding) correlation between the
two HOWs. If there is no correlation the
intersection is left blank.
Deployment
Deployment
 Examining each intersection assures
that all important factors are
considered.
• Matrix Number 6—Selecting Design
Targets of the Technical Requirements.
• The customer requirements describe
WHAT the customer needs, and the
design requirements tell HOW the
company is going provide the product
characteristics
Deployment
• Necessary to address those needs, and
these design targets specify HOW
MUCH of the characteristic needs to
be provided.
• Design Targets has 3 sections:
 Technical Priorities (from data already in
the HOQ).
 Technical Benchmarking (newly
developed data).
Deployment
 Design Target Values (developed from
the previous two).
Deployment
Eighteen: Optimizing and Controlling Processes
through Statistical Process Control (SPC)
• MAJOR TOPICS
 Statistical Process Control Defined
 Rationale for SPC
 Control Chart Development
 Management’s Role in SPC
 Role of the Total Quality Tools
 Authority over Processes and Production
 Implementation and Deployment of SPC
 Inhibitors of SPC
• Definition: SPC is a statistical method

of separating special-cause variation
from natural variation to eliminate the
special causes and establish and
maintain consistency in the process,
enabling process improvement .
• The origin of SPC was in the work of Dr.

Walter Shewhart at Bell Laboratories
1931. Although SPC was ignored in the
West after World War II, Japan adopted
and subsequently developed it into
total quality.
• The rationale for SPC includes the
following:
 Enables the control of process variation.
 Makes possible continual improvement

of the process.
 Results in predictability of processes.
 Results in elimination of waste.
 Makes less expensive inspection modes
possible.
• SPC is essential today to elevate the
quality of products and services while
lowering costs in order to compete
successfully in world markets.
• Control Chart Development:

• There are several types of control
charts, the choice of which being
determined by the kind of process
under consideration. Further, some
control charts are designed for
variables data (something measured),
others are concerned with attributes
data (something that can be counted).
• Different procedures are used for

developing these two types of control.
Both require Upper Control Limits (UCL)
and Lower Control Limits (LCL) and a
Process Average.
• Upper and Lower Control Limits and

Process Average calculations for
constructing the control chart are made
from the actual process data, which
must be of sufficient quantity, and
taken over a relatively short period.
• After drawing the blank control chart

with UCL, LCL and process average, the
data from which the calculations were
made are plotted on the chart. No data
points can penetrate UCL or LCL, and
there must be no long runs of data on
one side of the process average. That
will only be true if the process is free of
special causes of variation. If that is
the case, the chart is ready for use.
• Continual improvement of processes

requires that special causes be
eliminated first. Process improvement
narrows the shape of the process’s bell
curve, resulting in less variation.
• Continual improvement is a key

element of SPC and total quality. SPC
enhances the predictability of processes
and whole plants. Elimination of waste
is another key element of SPC. SPC
can help improve product quality while
reducing product cost.
• SPC makes sampling inspection more

reliable. SPC supports process auditing
as a substitute for more expensive
inspection. SPC requires a capability in
statistics, either in-house or through a
consultant. Process operators should
be key players in any SPC program.
Understanding the process is a
prerequisite to SPC implementation.
• All employees involved in SPC must be

trained for their involvement.
Measurement repeatability and
reproducibility is essential for SPC.
• Management’s role in SPC is similar to
its role in total quality overall:
commitment, providing training, and
involvement.
• The seven tools, augmented by

flowcharting, five-s, FMEA and DOE are
required for SPC. SPC and the operator
must have process-stop authority, SPC
implementation must be carried out in
an orderly, well thought-out sequence.
• SPC requires collaborative team
activity.
• The quality tools are used in SPC before

the control chart is developed as aids in
helping to eliminate special causes of
variability.
• Operators who use SPC must have the
authority to stop the production
process when SPC tells them something
is wrong.
• The three broad phases of the process

for implementing/deploying SPC are
preparation, planning, and execution.
Each of these phases consists of
several steps.
• Common inhibitors of SPC include

insufficient expertise/capabilities,
misdirected responsibility for SPC,
failure to understand the target
process, failure to have processes
under control, inadequate training and
discipline, measurement
repeatability/reproducibility, and low
production rates.
• Implementation and Deployment of

SPC
• Requires commitment and time of
management and other key personnel.
• Requires some expertise in statistics.
• Must be done in a well planned, orderly
process. (Roadmap on page 329)
• Inhibitors of SPC
• Lacking statistics expertise. May have

to bring in outside help.
• Assigning SPC responsibility to the
wrong person/group. The process
operator should “own” SPC on his
process.
• Failing to understand how the process
really works. Imperative that the
process be accurately flowcharted first.
• Trying to implement SPC while the

process still has special cause variation.
Process needs to be cleaned up as
much as possible before trying to make
control charts.
• Inadequate training and lack of
discipline in process operation. Users
need training, and process procedures
must be followed.
• Measurement repeatability and

reproducibility lacking.
Instrumentation and procedures must
be made repeatable and reproducible.
Otherwise data is not reliable.
Nineteen: Continual Improvement Methods
with Six Sigma, Lean, and Lean Six Sigma
• MAJOR TOPICS
 Rationale for Continual Improvement
 Management’s Role in Continual
Improvement
 Essential Improvement Activities
 Structure for Quality Improvement
 The Scientific Approach
 Identification of Improvement Needs
 Development of Improvement Plans

 Common Improvement Strategies
 Additional Improvement Strategies
 The Kaizen Approach
 Goldratt’s Theory of Constraints
 The CEDAC Approach
• The Lean Approach
• The Six Sigma Approach
• The Lean Sigma Approach
• The Theory of Contraints (TOC) and

Integrated TOC, Lean, Six Sigma (iTLS)
Approach
• The rationale for continual
improvement is that it is necessary in
order to compete in the global
marketplace. Just maintaining the
status quo, even if the status quo is
high quality, is like standing still in a
race.
• Management’s role in continual

improvement is leadership. Executive-
level managers must be involved
personally and extensively. The
responsibility for continual
improvement cannot be delegated.
• Essential improvement activities include
the following:
 Maintaining communication
 Correcting obvious problems
 Looking upstream for causes – not

symptoms
 Documenting problems and progress
 Monitoring change
• Structuring for quality improvement
involves the following:
 Establishing a quality council
 Developing a statement of
responsibilities
 Establishing the necessary
infrastructure
• Using the scientific approach means:

 Collecting meaningful data
 Identifying root causes of problems
 Developing appropriate solutions
 Planning and making changes.
• Ways of identifying improvement needs
include the following:
 Multivoting (brainstorming) for
improvement candidates
 Identifying customer needs

 Studying how employee time is spent.
 Localizing problems before trying to
solve them.
• Developing improvement plans involves
the following steps:
 Understanding the process (Flow chart
the process)
 Eliminating any obvious errors
 Removing slack from processes

(anything that serves no purpose)
 Reducing variation in processes (special
and common causes)
 Planning for continual improvement to
become a way-of-life.
• Commonly used improvement
strategies include the following:
 Describing the process and correcting
obvious problems
 Standardizing the process (make sure

the process procedures are followed)
 Eliminating errors and potential errors in
the process
 Streamlining the process (eliminating
non-value-adding steps)
 Reducing sources of variation
 Bringing the process under statistical
control
 Improving the design of the process.
• Additional improvement strategies

 Reducing leadtime
 Flowing production
 Using group technology
 Leveling production
 Synchronizing production
 Overlapping production
 Using flexible scheduling
 Using pull control

 Using visual control
 Using stockless production
• Additional improvement strategies
 Using jidoka
 Reducing setup time
 Controlling work-in-process
 Improving quality
 Applying total cost cycles

 Using cost curves
 Using supplier partners
 Applying total productive maintenance
• Kaizen is the name given by the
Japanese to the concept of continual
incremental improvement.
• It is a broad concept that encompasses

all of the many strategies for achieving
continual improvement and entails the
following five elements:
 Straighten up (getting rid of any tools,
materials, etc. not required)
 Put things in order (so when a tool is
needed, it is readily available)
 Clean up (keeping the workplace neat
and clean
 Standardize (on the best practices)

 Discipline (everyone adheres to the
work procedures)
• CEDAC is an acronym for Cause-and-
Effect Diagram with the Addition of
Cards. (This acronym is a registered
trademark of Productivity, Inc.)
• With CEDAC, a cause-and-effect

diagram is developed, but fact cards
about problems and improvement cards
containing ideas for solving the
problems are used.
• The Lean Approach is based on the
just-in-time Toyota Production System
(TPS).
• A Lean operation is one in which a

better product is developed or a better
service is delivered using less of
everything required (i.e. human,
financial, technological, and physical
resources). Lean is about being flexible
enough to get the right things, to the
right place, at the right time, in the
right amounts.
• Lean is focused on elimination of all

wastes, and continual improvement of
products and processes.
• Six Sigma is a statistically based
approach that targets the defect rate at
3.4 per million or less. Key elements of
Six Sigma include the DMAIC roadmap
and an infrastructure of Green Belts,
Black Belts, Master Black Belts, and
Champions.
• Like other approaches, Six Sigma aims

for quality improvement, but goes
further to tie these quality
improvement initiatives to the financial
elements of the organization.
• The Lean Six Sigma approach is not a
low calorie variation of Six Sigma, but a
linking of JIT/Lean and Six Sigma that
synergistically combine the benefits of
both.
• The Theory of Constraints (TOC) and

Integrated TOC, Lean, Six Sigma (iTLS)
approach. focuses on the few critical
elements that limit performance of the
organization by applying Theory of
Constraints tools, eliminates waste with
application of Lean tools, and reduces
variability to ensure process
performance and stability with Six
Sigma tools.
Twenty: Benchmarking
• MAJOR TOPICS
 Benchmarking Defined
 Benchmarking versus Reengineering
 Rationale for Benchmarking
 Prerequisites to Benchmarking
 Obstacles to Successful Benchmarking
 Role of Management in Benchmarking
 Benchmarking Approach and Process
• Benchmarking is a process for

comparing an organization’s operations
or processes with those of a best-in-
class performer.
• The objective of benchmarking is major
performance improvement for an
inferior process
• Benchmarking focuses on processes
and practices, not products.
• Benchmarking is done between

consenting organizations.
• Benchmarking partners are frequently
from different industries.
• Benchmarking is a component of total
quality.
• When continual incremental

improvement of a process isn’t enough,
benchmarking may be the best route
to the needed improvement.
• Benchmarking offers the best chance
for success, but if benchmarking is not
possible, process reengineering might
be considered.
• The rationale for benchmarking is that

it makes no sense to stay locked in an
isolated laboratory trying to invent a
new process when that process already
exists.
• Prerequisites to benchmarking include:
 Will and commitment by top
management.
 Alignment with vision and strategic
objectives.
 Openness to new ideas.

 Knowing which processes are the
important ones, and understanding
them.
 Processes documented.
• Obstacles to successful benchmarking
include:
 Lacking needed skills (analysis,
research, communication).
• The benchmarking approach and

process includes the following:
 Obtaining commitment of top
management.
 Baselining your processes
(Flowcharting).
 Identifying your weak processes and
documenting them.
 Selecting the processes to be
benchmarked.
 Forming the benchmarking teams.

 Researching the best-in-class.
 Selecting candidates for best-in-class
partnering.
 Forming benchmarking agreements with
partners.
 Collecting the process data/information.
 Analyzing the data and establishing the
performance gap.
 Planning action to close the gap or

surpass.
 Implementing the change(s) to the
process.
 Monitoring the results.
 Updating the benchmarks, and
continuing the cycle.
• Benchmarking teams must include
those who operate the processes.
• Benchmarking is not restricted within

industry boundaries, but only to best-
in-class processes.
• It is necessary for the benchmarker to
understand its own process before
comparing it with another.
• Because best-in-class is dynamic,
benchmarking should be seen as a
never-ending process.
• Management has a key role in the

benchmarking process, including
commitment to change, making funds
available, authorizing human resources,
being actively involved, and
determining the appropriate level of
disclosure.
Twenty One: Just-in-Time/Lean
Manufacturing (JIT/Lean)
• MAJOR TOPICS
 What Do We Call It?
 Just-in-Time/Lean Defined
 Rationale for JIT/Lean
 Development of JIT/Lean
 Relationship of JIT/Lean to Total Quality
and World-Class Manufacturing
 Benefits of JIT/Lean
 Requirements of JIT/Lean
 Automation and JIT/Lean
• JIT/Lean is a management philosophy
that seeks to eliminate all forms of
waste. As a production system,
JIT/Lean produces only what is needed,
when it is needed, in the quantity
needed.
• The root justification for JIT/Lean is
improved product quality with lower
costs.
• JIT/Lean began as a means of reducing
the seven wastes. JIT/Lean is a pull
system whose small lot production is
supported by reduced setup times.
Total productive maintenance and
statistical process control were
integrated to provide the necessary
production reliability and predictability.
• Continual improvement provides the
vehicle for the relentless attack on all
wastes and improvement of product
quality.
• JIT/Lean is at its best as a part of a
total quality system. Results can be
severely restricted when JIT/Lean is
operated without the total quality
umbrella.
• Inventory reduction, shortened cycle
time, continual improvement of
processes and products, and
elimination of wastes are all inherent
benefits of JIT/Lean.
• JIT/Lean has a different set of
requirements from traditional
production systems:
 New skills training
 Rationalizing production flow for the pull
system
 Empowering operators to take
advantage of JIT/Lean’s visibility
features
 Guarding against bottleneck
vulnerability through TPM
 Process capability study, SPC, and
continual improvement
 Small lot sizes and short setup times
 Close working relationships with
superior suppliers
• Although JIT/Lean is compatible with
automation, some of the world’s best
plants use JIT/Lean with very little
automation.
• World-class manufacturing employs
JIT/Lean as an integral part of a total
quality system, producing the highest
quality products at competitive prices.
It is not related to the presence or
absence of automation.
Twenty Two: Implementing Total
Quality Management
• MAJOR TOPICS COVERED
 Rationale for Change
 Requirements for Implementation
 Role of Top Management: Leadership
 Role of Middle Management
 Viewpoints of Those Involved
 Implementation Variation Among
Organizations
Quality Management
 Implementation Approaches to Be
Avoided
 An Implementation Approach that
Works
 Getting On With It
 What to Do in the Absence of
Commitment from the Top
 Implementation Strategies: ISO 9000
and Baldrige
Quality Management
• The traditional way of doing business
presents the following problems:
 We are bound to a short-term focus.
 Tends to be arrogant rather than
customer-focused.
 We seriously underestimate the
potential contribution of our employees,
particularly those in hands-on functions.
 The traditional approach equates better
quality with higher cost.
Quality Management
 The traditional approach is short on
leadership and long on bossmanship.
• The requirements for implementation
are as follows:
 Commitment by top management
 Creation of an organization-wide
steering committee
 Planning and publicizing
Quality Management
 Establishing an infrastructure that
supports deployment and continual
improvement
• The role of top management can be
summarized as providing leadership
and resources. The role of middle
management is facilitation.
• Implementation approaches that should
be avoided are as follows:
Quality Management
 Don’t train all employees at once.
 Don’t rush into total quality by putting
too many people in too many teams too
soon.
 Don’t delegate implementation
 Don’t start an implementation before
you are prepared.
Quality Management
• Although implementation must vary
with each organization, the 20
fundamental steps must be followed,
generally in the order given. Tailoring
to the organization’s specific culture,
values, strengths, and weaknesses is
done in the planning phase, steps 12
through 16.
• Implementation phases are as follows:
Quality Management
 Preparation phase
 Planning phase
 Execution phase
• Going through the ISO 9000
registration steps will give an
organization a good start on
implementing total quality.
Quality Management
• ISO 9000 is an international standard
for providers of goods and services that
sets broad requirements for the
assurance of quality and for
management’s involvement.
• The Malcolm Baldrige National Quality
Award evaluates candidates for the
award according to criteria in several
categories as follows:
 Leadership
Quality Management
 Strategic planning
 Customer focus
 Measurement, analysis, and knowledge
management
 Workforce focus
 Operation focus
 Results

Mba Om 201-274 PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Mba Om 201-274 PDF

Uploaded by

Copyright:

Available Formats

Quality Management for

• Definition: SPC is a statistical method

• The origin of SPC was in the work of Dr.

 Makes possible continual improvement

• Control Chart Development:

• Different procedures are used for

• Upper and Lower Control Limits and

• After drawing the blank control chart

• Continual improvement of processes

• Continual improvement is a key

• SPC makes sampling inspection more

• All employees involved in SPC must be

• The seven tools, augmented by

• The quality tools are used in SPC before

• The three broad phases of the process

• Common inhibitors of SPC include

• Implementation and Deployment of

• Lacking statistics expertise. May have

• Trying to implement SPC while the

• Measurement repeatability and

 Development of Improvement Plans

• The Theory of Contraints (TOC) and

• Management’s role in continual

 Looking upstream for causes – not

• Using the scientific approach means:

 Identifying customer needs

 Removing slack from processes

 Standardizing the process (make sure

• Additional improvement strategies

 Using pull control

 Applying total cost cycles

• It is a broad concept that encompasses

 Standardize (on the best practices)

• With CEDAC, a cause-and-effect

• A Lean operation is one in which a

• Lean is focused on elimination of all

• Like other approaches, Six Sigma aims

• The Theory of Constraints (TOC) and

• Benchmarking is a process for

• Benchmarking is done between

• When continual incremental

• The rationale for benchmarking is that

 Openness to new ideas.

• The benchmarking approach and

 Forming the benchmarking teams.

 Planning action to close the gap or

• Benchmarking is not restricted within

• Management has a key role in the

You might also like