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Nashua Xerox Motorola Intel Dayton-Hudson Corning Hewlett-Packard
Chapter 2 1
Ford Motor Company had operating losses of $3.3 billion between 1980 and 1982. Xerox market share dropped from 93% in 1971 to 40% in 1981. Attention to quality was seen as a way to combat the competition.
Total Quality Management
TQM: A Buzzword Losing Popularity
For many companies, the term TQM is associated with corporate programs (mid 1980s ~ early 1990s) aimed at implementing employee teams and statistical process control. Unfortunately, many companies were dissatisfied with the perceived results of these programs, concluding TQM does not work. Question: Why were they dissatisfied? Were they justified?
Total Quality Management
.TQM Total .act.made up of the whole Quality . controlling. Therefore. TQM is the art of managing the whole to achieve excellence excellence. directing. Total Quality Management .degree of excellence a product or service provides Management . art or manner of planning.
What does TQM mean? Total Quality Management means that the organization's culture is defined by and supports the constant attainment of customer satisfaction through an integrated system of tools. This involves the continuous improvement of organizational processes. Total Quality Management . and training. techniques. resulting in high quality products and services.
´ This boosts Customer satisfaction immensely and increases efficiency of the Business operations. Specification or Standard stipulated) Excellence that is better than a minimum standard.What s the goal of TQM? ³Do the right things right the first time. Total Quality Management . Clearing the bar (ie. every time.
and (2) continuous improvements to processes. Total Quality Management . and services. suppliers.Another way to put it At it s simplest. systems. TQM is all managers leading and facilitating all contributors in everyone s two main objectives: (1) total client satisfaction through quality products and services. products. people. partners.
Productivity and TQM Traditional view: ± Quality cannot be improved without significant losses in productivity. TQM view: ± Improved quality leads to improved productivity. Total Quality Management .
We must speak with data and facts not just opinions. Preventing variability is the key to producing high quality. Improving quality requires the establishment of effective metrics. Top management must provide leadership and support for all quality initiatives.Basic Tenets of TQM 1. 3. The customer makes the ultimate determination of quality. 2. Quality goals are a moving target. thereby requiring a commitment toward continuous improvement. 5. 4. Total Quality Management .
Total Quality Management Customers Culture . techniques. and solving quality problems Quality for the customer as a driving force and central concern. expressed by leaders. Shared values and beliefs.The three aspects of TQM Counting Tools. that define and support quality. and training in their use for analyzing. understanding.
Total Quality Management . continuous commitment to improvement.Total Quality Management and Continuous Improvement TQM is the management process used to make continuous improvements to all functions. The foundation of total quality is a management philosophy that supports meeting customer requirements through continuous improvement. TQM represents an ongoing.
Continuous Improvement versus Traditional Approach Traditional Approach Continuous Improvement Market-share focus Individuals Focus on who and why Short-term focus Status quo focus Product focus Innovation Fire fighting Customer focus Cross-functional teams Focus on what and how Long-term focus Continuous improvement Process improvement focus Incremental improvements Problem solving Total Quality Management .
and service after the sale. ± Customers look to the total package . All departments of the company must strive to improve the quality of their operations. how courteous sales and repair people are. how managers treat subordinates. and how the product is serviced after the sale. Total Quality Management . packaging.Quality Throughout A Customer s impression of quality begins with the initial contact with the company and continues through the life of the product. deliver. service during the sale. ± Quality extends to how the receptionist answers the phone.sales.
Value-based Approach Manufacturing Dimensions ± ± ± ± ± ± ± ± Service Dimensions ± ± ± ± ± Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived quality Reliability Responsiveness Assurance Empathy Tangibles Total Quality Management .
Definitions Quality is excellence that is better than a minimum standard.Quality . It is conformance to standards and fitness of purpose ISO 9000:2000 definition of qualityIt is the degree to which a set of inherent characteristics fulfills requirements. Quality is fitness for use of the product Joseph Juran. .
Quality and customer expectations Quality is also defined as excellence in the product or service that fulfills or exceeds the expectations of the customer.Q= (P / E ) . P= performance(as measured by the Mfgr. where Q=quality. and E = expectations( of the customer).). . Though quality is an abstract perception.it has a quantitative measure. There are 9 dimensions of quality that may be found in products that produce customersatisfaction.
to Customer Aesthetics of product Reputation.The 9 Dimensions of Quality Performance Features Conformance ----------------------------Reliability Durability Service ----------------------------Response./Dealer Performance Cost Service Features .of Mfgr.of Dealer/ Mfgr.
TQM six basic Concepts Management commitment to TQM principles and methods & long term Quality plans for the Organisation Focus on customers internal & external Quality at all levels of the work force. Continuous improvement of the production/business process. . Treating suppliers as partners Establish performance measures for the processes.
.Benefits of Quality Higher customer satisfaction Reliable products/services Better efficiency of operations More productivity & profit Better morale of work force Less wastage costs Less Inspection costs Improved process More market share Spread of happiness & prosperity Better quality of life for all.
TQM implementation Begins with Sr. Managers and CEO s Timing of the implementation process Formation of Quality council Union leaders must be involved with TQM plans implementation Everyone in the organisation needs to be trained in quality awareness and problem solving Quality council decides QIP projects. .
Losses.results in less Productivity. .Quality Costs Good Quality leads to more Productivity » Sales. Profits and Efficiency with Losses amounting to 20% or more of the Sales revenue generated . Bad Quality . and increased Operational efficiency and min. Profits. Sales .
programmed.Service etc. Internal failure Quality costs.budgeted etc. It adds to other costs in Design.Production. with Design.Sales . Purchase. External failure Quality costs Returned goods.Purchase --------------------------------------------------------------------------- [. Quality costs in all depts. Service etc. Warranty.] .Rework of products Appraisal costs Inspectors and Inspection costs Prevention costs-assoc.Quality Costs Quality cost is the cost of bad Quality of product and services that rebounds to the Manufacturer. can be measured .Sales.Accepted Quality Level ( AQL) eg. 3-4 defects per million ( six Sigma process) or zero-defect manufacturing process.
.Customer satisfaction Internal and external customer Customer is the Boss or King Customer dictates the market trends and direction Customer not only has needs to be supplied( basic performance functions) Also he wants what he wants! ( additional features satisfy him and influence his purchase decision) Hence the Suppliers and Manufacturers have to closely follow at the heel of the customer.
Customer Satisfaction Organisational Diagram CUSTOMERS Front-line Staff Functional Department Staff Sr. Mgrs CEO .
data.Services. Outputs need performance measures main outcome being customer satisfaction.etc.Stores & Purchase. Inputs of the ProcessManpower.(feedback is used to improve the process) .Marketing.materials.money. Outputs.data etc. Processes for improvement.eg.Continuous Process Improvement Process refers to business and production activities of an Organisation. Design & Manufacturing.etc.Products.
Purchase.are areas where non-conformance can be reduced and processes improved .Stores etc. Sales.Design.Continuous Process Improvement Process refers to business and production activities of an organisation Business processes-Manufacturing.
PROCESS People Equipment Method Environment Matterials Procedures FEEDBACK OUTPUT Infornmation Data Product Service.etc.etc.Continuous Process Improvement INPUT Materials Money Data. O/P CONDITIONS .
and cost reduction (improvement) .CONTROL AND IMPROVEMENT Based on financial processes .Juran s Trilogy Three components . expense measurement(control).PLANNING.such as budgeting(planning).
Standard ( Personal cleanliness ) Shitsuke .Set ( Systematic or Orderliness ) Seiso .Shine ( Sweep or clean-up ) Seiketso .The 5S Method .Sort ( Proper arrangement ) .Sustain ( Self-discipline ) Seiko Seiton .
Kaizen Technique Kaizen. Break the complex process into sub-processes and then improve the sub-processes.or sophisticated equipment and techniques. Continuous improvements in small increments make the process more efficient .controllable and adaptable. .defines the managements role in continuously encouraging and implementing small improvements in the individual & organization. Does not rely on more expense.
The TQM System Objective Continuous Improvement Principles Customer Focus Process Improvement Total Involvement Elements Leadership Education and Training Supportive structure Communications Reward and recognition Measurement Total Quality Management .
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