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Total Quality Management

BUS 3 142


Strategic Quality Management

Jan 31, 2013
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Designing and Assuring Quality
Achieving quality results require INTENTIONAL planning and
execution

A business aligns its quality strategy with its overall strategy
Differentiation on Quality and features
Command price premiums
If competing on price, must attack costs and productivity
improved quality address both

Organizational Leaders create the atmosphere and priority for
quality
Quality is the RESULT of coordinated, fact-based, planning,
execution, problem solving, and continuous improvement
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Demings Plan-Do-Check-Act
"Continuous improvement is better than delayed perfection." - Mark Twain
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An Environment and Culture for Quality
The right LEADERSHIP is critical to building & sustaining a Quality organization
Establish quality as a Way of Life and not as a project or fad

Keep activities focused on superordinate goals
Customer and organization long term success
Honest and respectful work environment

Create an environment for Learning
Provide time and dollars for Training
Encourage diversity of opinions and problem solving approaches
Plan-Do-Check-Act

Be patient and dont expect immediate results

If employees are asked to make suggestions, implement the ideas
that are offered
Follow up to ensure results are achieved or if additional measures
may be required
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Beware of goals that are really Wants or Wishes
When goals are introduced without the systems, processes, and
resources to achieve them, one of three outcomes will follow:

People will achieve the goals and positive results

People will distort the data

People will distort the system
Adapted from Donald Wheeler in Foster, Quality Management, Fifth Edition, Prentice Hall
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Quality and Productivity
A ratio of Inputs and Outputs

Total-factor productivity

Improvement projects sometimes reduce productivity in the early
stages, before the longer term results are achieved
Learning curve
Resistance to change
One step back for two steps forward

Measure against objective standards
Yields
Cycle time
Inventory
Profit
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Money must be spent to enable Quality
Like any other business process, managing quality requires
investment and incurs costs. Diligent business case development,
project management, and cost management are necessary.
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Quality Cost Model (Lundvall-Juran Model)
Balances Prevention Costs and Failure Costs.
Can be useful in some cases, but NOT in matters of Safety or
other risk to Human Life
Foster, Quality Management, Fifth Edition, Prentice Hall
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Failure Costs (Table 4-4)
* Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall
Failure Costs
Scrap
Scrap disposition
Warranty
Customer Service - complaint handling
Escapes of poor quality goods
Machine downtime
Idle time
Troubleshooting
Re-stocking
Re-inspection
Re-work
Schedule disruption and delay
Buffer inventory
Latent inventory from undetected failures
Product redesign
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Appraisal Costs (Table 4-3)
* Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall
Appraisal Costs
Inspection by Inspectors
Inspection by Operators / Others
Setups for Inspections and Tests
Equipment & Materials for Inspections and Tests
Samples & evaluation materials
Laboratory acceptance testing
Audits
Data review
Supplier monitoring
Supplier rating
Supplier qualifying
Quality certification preparation (ISO and others)
Quality awards
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Costs of Prevention (Table 4-2)
* Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall
Prevention Costs
Developing a Quality System
Implementing a Quality System
Maintaining a Quality System
Production Process design
Preventative maintenance
Calibration and correlation
Supplier quality assurance
Supplier assessments
Training
Robust design
Defect data analysis for Corrective Action
Quality system audits
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Individual Leadership and Quality
As you develop EXPERTISE and CONFIDENCE in your profession,
you become more equipped to provide the vision, direction,
coaching, and challenge to your teams and organizations
When people look up to you, and want to follow you,
give them a GOOD REASON to follow
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Individual Leadership and Quality
Pick a leadership style that fits your personality and preferences

Dont assume that being the boss is a good enough reason to be followed

Power of Expertise
Be excellent at the content of the work being done by the people you lead
Use your leverage as a skilled leader to make a bigger difference over a
larger footprint
Equip and enable your team to do more than you could possibly do
yourself

Understand how Rewards and Feedback influence Performance & Quality
Dont be afraid to communicate unpleasant news it is feedback for
better performance
Mix positive comments with opportunities for improvement
Recognize that not all people are self-motivated, or are motivated by the
same levers
Measure the right things

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Leadership Skills (Table 4-1)
Quadrant 1: Quadrant 2: Quadrant 3: Quadrant 4:
Knowledge Communication Planning Vision
Acceptance of Diversity Assertiveness Structuring (for task Assessing the climate
Developing Competence Conflict management accomplishment) internal and external)
Health / wellness Team building Decision making Identifying opportunities
Learning style Trust building Evaluation skills
Time management Motivating others Task and time management
Ethics Recruiting others
Risk taking Effective speaking
Coping skills Effective writing
Effective listening
Image building
* Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall
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Foster, Quality Management, Fifth Edition, Prentice Hall
Supply Chain Strategic Quality Planning
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Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall
Supply Chain Strategic Quality Planning: Logistics
When shipments take place

Modes of transportation

How shipping practices can be optimized

Outsource warehousing and fulfillment or keep in-house

Product packaging
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Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall
Supply Chain Strategic Quality Planning: Suppliers
Preferred suppliers
Supplier selection
Supplier development
Sole sourcing / single sourcing / multiple sourcing
Technology linkage
Global sourcing
Supplier input to design
Supplier cost cutting

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Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall
Supply Chain Strategic Quality Planning: Inventory Mgmt
Distribution Network

Cost

Service levels

Lead Times

Product Life Cycles

Perishable and Hazardous Material

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Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall
Supply Chain Strategic Quality Planning: Information Flows
Data requirements
System requirements
Security
Reliability
Visibility upstream and downstream
Access upstream and downstream
Timing and governance
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Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall
Supply Chain Strategic Quality Planning: Products
Differentiation with competition
Variety
Manufacturability
Components
Life cycles
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Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall
Supply Chain Strategic Quality Planning: Services
Service definition along the supply chain
Customer requirements
Cost
Response time
Refurbished replacements
Repair vs. Replace