Chapter 5 Total Quality Management

Operations Management by R. Dan Reid & Nada R. Sanders 3rd Edition © Wiley 2007

© 2007 Wiley

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Learning Objectives 
     

Explain the meaning of TQM Identify features of the TQM philosophy Describe the four dimensions of Quality Identify the costs of Quality Identify tools used for solving Quality problems Quality awards and Quality certifications Identify Quality leaders and their contributions

© 2007 Wiley

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What is TQM? 

Meeting quality expectations as defined by the customer Integrated organizational effort designed to improve quality of processes at every business level 

© 2007 Wiley

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price paid Quality of support after sale e.g.Defining Quality   5 Ways Conformance to specifications Does product/service meet targets and tolerances defined by designers? Evaluates performance for intended use Evaluation of usefulness vs. friendly staff 4  Fitness for use   Value for price paid   Support services   Psychological  © 2007 Wiley . Ambiance. prestige.

performance. waiting time. features  Service organizations produce intangible products that must be experienced  Quality often defined by perceptional factors like courtesy. Service Quality  Manufacturing quality focuses on tangible product features  Conformance. reliability.Manufacturing Quality vs. promptness. friendliness. consistency © 2007 Wiley 5 .

Evolution of TQM New Focus © 2007 Wiley 6 .

TQM Philosophy  What s Different? Focus on Customer   Identify and meet customer needs Stay tuned to changing needs. 6 sigma Inspection vs.g.g. external and internal © 2007 Wiley customers  7 . e. e. fashion styles Continuous learning and problem solving. Kaizen. prevention & problem solving  Continuous Improvement   Quality at the Source   Employee Empowerment Empower all employees.

receiving inspection 8  Team Approach    Benchmarking   Managing Supplier Quality  © 2007 Wiley . & implementation tools Teams formed around processes 8 to 10 people Meet weekly to analyze and solve problems Studying practices at best in class companies Certifying suppliers vs. and correction. assessment.TQM Philosophy What s Different? (continued)  Understanding Quality Tools  Ongoing training on analysis.

safety Responsiveness. operation. rapid repair. p. spare parts 9  Quality of conformance to design   Ease of use   Post-sale service  © 2007 Wiley ..Four Dimensions of Quality  Quality of design  Determining which features to include in the final design Production processes are set up to meet design specifications Instructions. maintenance.m.

 Quality control costs   Prevention costs Appraisal costs Internal failure costs External failure costs 10  Quality failure costs   © 2007 Wiley .Cost of Quality   Quality affects all aspects of the organization Quality has dramatic cost implications of.

Cost of Quality 4 Categories  Early detection/prevention is less costly  May be less by a factor of 10 11 © 2007 Wiley .

never ending problem solving process  Quality Function Deployment  Used to translate customer preferences to design  Seven Tools of Quality Control  Tools typically taught to problem solving teams 12 © 2007 Wiley .Ways of Improving Quality  Plan-Do-Study-Act Cycle (PDSA)   Also called the Deming Wheel after originator Circular.

PDSA Details  Plan    Evaluate current process Collect procedures. identify problems Develop an improvement plan. implement new process  13 . data. performance objectives Implement the plan trial basis  Do   Study  Collect data and evaluate against objectives  Act Communicate the results from trial © 2007 Wiley  If successful.

PDSA   (continued) Cycle is repeated After act phase. start planning and repeat process © 2007 Wiley 14 .

QFD Details  Process used to ensure that the product meets customer specifications Voice of the engineer Voice of the customer Customer-based benchmarks © 2007 Wiley 15 .

QFD .House of Quality  Adding trade-offs. targets & developing product specifications Trade-offs Targets Technical Benchmarks 16 © 2007 Wiley .

Seven Problem Solving Tools        Cause-and-Effect Diagrams Flowcharts Checklists Control Charts Scatter Diagrams Pareto Analysis Histograms © 2007 Wiley 17 .

Cause-and-Effect Diagrams   Called Fishbone Diagram Focused on solving identified quality problem © 2007 Wiley 18 .

Flowcharts   Used to document the detailed steps in a process Often the first step in Process Re-Engineering © 2007 Wiley 19 .

per shift. per machine.Checklist  Simple data check-off sheet designed to identify type of quality problems at each work station. per operator © 2007 Wiley 20 .

Control Charts   Important tool used in Statistical Process Control Chapter 6 The UCL and LCL are calculated limits used to show when process is in or out of control © 2007 Wiley 21 .

Scatter Diagrams   A graph that shows how two variables are related to one another Data can be used in a regression analysis to establish equation for the relationship © 2007 Wiley 22 .

80% of the problems caused by 20% of causes © 2007 Wiley 23 .Pareto Analysis     Technique that displays the degree of importance for each element Named after the 19th century Italian economist Often called the 80-20 Rule Principle is that quality problems are the result of only a few problems e.g.

Histograms  A chart that shows the frequency distribution of observed values of a variable like service time at a bank drive-up window Displays whether the distribution is symmetrical (normal) or skewed  © 2007 Wiley 24 .

Quality Awards and Standards  Malcolm Baldrige National Quality Award The Deming Prize ISO 9000 Certification ISO 14000 Standards    © 2007 Wiley 25 .

Quality Awards and Standards  Malcolm Baldrige National Quality Award (MBNQA) The Deming Prize ISO 9000 Certification ISO 14000 Standards    © 2007 Wiley 26 .

FedEx. and small business Past winners. Ritz-Carlton Typical winners have scored around 700 points © 2007 Wiley 27 .MBNQA. IBM. 3M. manufacturing. service.What Is It?      Award named after the former Secretary of Commerce Reagan Administration Intended to reward and stimulate quality initiatives Given to no more that two companies in each of three categories.

The Deming Prize  Given by the Union of Japanese Scientists and Engineers since 1951  Named after W. Edwards Deming who worked to improve Japanese quality after WWII   Not open to foreign companies until 1984 Florida P & L was first US company winner © 2007 Wiley 28 .

ISO Standards  ISO 9000 Standards:        Certification developed by International Organization for Standardization Set of internationally recognized quality standards Companies are periodically audited & certified ISO 9000:2000 QMS Fundamentals and Standards ISO 9001:2000 QMS Requirements ISO 9004:2000 QMS .000 companies have been certified   ISO 14000: © 2007 Wiley Focuses on a company s environmental responsibility 29 .Guidelines for Performance More than 40.

Juran Armand V. Edwards Deming Joseph M. Shewhart W.Quality Gurus         Figure 5-10 summarizes the contributions of the seven Quality Gurus Walter A. Feigenbaum Phillip Crosby Kaoru Ishikawa Genichi Taguchi © 2007 Wiley 30 .

and under-reliance on SPC methods   © 2007 Wiley 31 .Why TQM Efforts Fail  Lack of a genuine quality culture Lack of top management support and commitment Over.

prevention.Chapter 5 Highlights        TQM focuses on serving the customer s quality needs TQM uses continuous improvement. quality tools. employee empowerment. appraisal. Deming Prize. internal & external failures QFD and Seven Quality Tools used in managing quality The MBNQA. easy of use. conformance. quality at the source. post-sale support Quality costs. and ISO Certification help focus on quality improvement and excellence The seven Quality Gurus all made key contributions © 2007 Wiley 32 . and supplier certification Four dimensions: product/service design. teams. benchmarking.

like in a bibliography. double space between paragraphs.html   Find an article that tells how a firm uses one (or more) of the quality concepts in Chapter 5. Give the source. but library OK. Write a summary of the article:   One page single space paragraphs. Link on my website: http://www.edu/mgmt/blakeh/www. 33 © 2007 Wiley . but for extra credit! Research on TQM:   Internet probably best.csus.Chapter 5 Homework Hints   This is not required.

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