Intro to TQM. TQM originates from a desire to improve and a necessity to compete.Product Designed-> Process Designed -> Product is ManufacturedTypically, management and engineers design the production system. . Intro to TQM. How does TQM fit in?Have those who are in the best position to know how
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1. ISQA 572/ 449 Models for Quality Control/ Process Control and Improvement Dr. David Raffo
Tel: 725-8508, Fax: 725-5850
Email: [email protected]
2. Intro to TQM TQM originates from a desire to improve and a necessity to compete.
Product Designed-> Process Designed -> Product is Manufactured
Typically, management and engineers design the production system.
3. Intro to TQM How does TQM fit in?
Have those who are in the best position to know how the system is working.
Use basic tools to use basic data and gain feed back on the process?
4. What is Quality? Quality of Conformance
Suitable for use by form, fit , function
Conformance to standard or specification
Reliability and Consistency
Quality of Design
Meets customer needs
Kinds of materials used
Tightness of tolerances
5. What is Quality? Customer Satisfaction
Providing features and functions to satisfy customer
Total Quality Management
Obsession with quality
Recognizing the structure in work
Freedom through control
Unity of purpose/teamwork
6. What is Quality? Customer Value
What do customers want?
How much are they willing to pay?
Why do they purchase one product or service over another?
Drive organization to provide products and services to meet or exceed customer expectations
7. Evolution of the Quality Movement
8. Quality Leaders Demming
Focus on management involvement and quality improvement
9. Deming’s 14 Points 1. Create constancy of purpose for improvement of product and service.
2. Adopt the new philosophy.
3. Cease dependence on mass inspection.
4. End the practice of awarding business on price tag alone.
5. Constantly and forever improve the system of production and service.
6. Institute modern methods of training on the job.
7. Institute modern methods of supervising.
10. Deming’s 14 Points 8. Drive out fear.
9. Break down barriers between departments.
10. Eliminate numerical goals for the work force.
11. Eliminate work standards and numerical quotas.
12. Remove barriers that hinder the hourly workers.
13. Institute a vigorous program of education and training.
14. Create a structure in top management that will push every day on the above 13 points.
11. Quality Leaders Juran
80% of quality defects are management controllable and it is management which needs to change most.
12. Juran’s 7 Points 1. Breakthrough in attitudes.
2. Identify the vital few projects.
3. Organize for breakthrough in knowledge.
4. Conduct the analysis.
5. Determine how to overcome resistance to change.
6. Institute the change.
7. Institute controls.
13. Quality Leaders Crosby
Zero Defects is the Quality Goal “Slogan”
Acceptable Quality Level (AQL) “Automobile”
14 Step program
14. Crosby’s 14 Step Program 1. Management commitment
2. Quality improvement team
3. Quality measurement
4. Cost of quality evaluation
5. Quality awareness
6. Corrective action
7. Zero-defects planning
15. Crosby’s 14 Step Program 8. Supervisory training
9. Zero-defects day
10. Goal setting
11. Error cause removal
13. Quality councils
14. Do it all over again
16. Comparative Assessment Matrix: Quality Management Tasks
17. Quality Leaders Taguchi
Must Design in Quality
Design of Experiments to reduce variation (Orthogonal Array 15/16)
Quality Loss Function
The “Hidden Plant” is the proportion of plant capacity that exists in order to rework unsatisfactory parts. Generally 15%-40%
18. Quality Leaders Shewhart
Formulas used for X-bar and R charts
7 Quality tools - histogram, check sheet, scatter diagram, flow chart, control chart, Pareto diagram, cause &effect diagram
19. Continuous Process Improvement Action is the bottom- line; PDCA cycle and TQM tools.
Involves integrating people, processes, and technology
Business Process Re-engineering Benchmarking Steps
Identify processes needing improvement
Identify world leader
Visit world leader
How to implement processes observed in one organization at another?
20. Steps in Quality Improvement Recognize Problem/ Est. Priorities (BS, PA)
Form Quality Improvement Teams
Define problem (Why-Why, Fishbone)
Analyzing problem/ process (Flowchart)
21. Steps in Quality Improvement Define possible causes
Check sheets, histograms
Control charts and run charts
Identify potential solutions
Make permanent, CPI
22. TQM Observations TQM approaches essentially:
Emphasize customer service
Seek to eliminate defects in production
Seek to empower employees as key actors and agents of change.
Management must support the improvement process or it will go nowhere
Improving the process is the central focus
23. Quality Certifications Examples of quality certifications and awards
Capability Maturity Model
Malcolm Baldridge, Demming Prize, etc.
24. A Commonly Used Standard ISO 9000
25. ISO 9000 Series of standards
Promoted strongly by the European Community
Intentionally vague (covers wide variety of businesses)
“Do what you say and say what you do”
Important for competitive purposes
Important spirit of law is followed
Get certified by external auditor
26. ISO 9000 Series ISO 9000 Quality Management & Quality Assurance Standards
Guidelines for selection & use
ISO 9001 Quality Systems
Model for quality assurance in design & development, production, installation & servicing
ISO 9002 Quality Systems
Model for quality assurance in production & installation
ISO 9003 Quality Systems
Model for quality assurance in final insp. & test
27. ISO 9000 Series ISO 9004 Quality Management & Quality System Guidelines
Marketing & marketing research
Inspection, test & examination
Handling, packaging & storage
Sales & distribution
Installation & operation
Technical assistance & maintenance
Disposal after use
28. Application to Software Capability Maturity Model
29. Motivation for Process Improvement Competition at home and abroad is driving the need to reduce costs, reduce cycle time and improve quality.
At the same time, systems are getting increasingly complex and the integration of hardware and software is more challenging.
Companies need to improve performance.
Key question is HOW?
31. Capability Maturity Model Provides a framework for process improvement
Processes are assessed to determine their current level of process maturity
Five levels of maturity
17 Key Process Areas (KPAs) related to essential core software development processes
Actions to be taken based on current state of the process
32. The Five Levels of Software Process Maturity
33. Implications Of Advancing Through CMM Levels
34. Visibility Into The Software Process At Each Maturity Level
35. Key Practice Areas Level 2 - Repeatable
Software requirements management
Software configuration management
Project monitoring and control
Level 3 - Defined
Organization process definition
Integrated software management
36. Key Process Areas Level 4 - Managed
Software quality management
Quantitative process management
Level 5 - Optimizing
Process change management
Technology change management
37. The CMM Structure
38. Process Improvement Benefits
39. Malcolm Baldrige Award Criteria Leadership
Information & Analysis
Strategic Quality Planning
Human Resource Utilization
Quality Assurance of Products & Services
40. Malcolm Baldrige National Quality Award Criteria 1.0 Leadership
1) Senior Executive Leadership
2) Quality Values
3) Management for Quality
4) Public Responsibility
2.0 Information & Analysis
1) Scope & management of quality data & information
2) Competitive comparisons & benchmarks
3) Analysis of quality data & information
3.0 Strategic Quality Planning
1) Strategic quality planning process
2) Quality goals & plans
4.0 Human Resource Utilization
1) Human resource management
2) Employee involvement
3) Quality education & training
4) Employee recognition & performance measurement
5) Employee well-being & morale
5.0 Quality Assurance of Products & Services
1) Design & introduction of quality products & services
2) Process quality control
3) Continuous improvement of processes
4) Quality assessment
6) Business process &support service quality
7) Supplier quality
41. Malcolm Baldrige National Quality Award Criteria 6.0 Quality Results
1) Product & service quality results
2) Business process, operational & support service quality results
3) Supplier quality results
7.0 Customer Satisfaction
1) Determining customer requirements & expectations
2) Customer relationship management
3) Customer service standards
4) Commitment to customers
5) Complaint resolution for quality improvement
6) Determining customer satisfaction
7) Customer satisfaction results
8) Customer satisfaction comparison
42. MBNQA Results - Employee Relations Average improvement of 1.4% in overall employee job satisfaction.
Above average industry attendance rates in 9 of 11 reporting companies.
Lower employee turnover than industry averages report in 7 of 11 participating companies.
Safety and health rates were better than industry averages in 12 of 14 companies.
Increase in the total number of quality improvement suggestions submitted in 5 of 7 companies.
43. MBNQA Results - Employee Relations Milliken’s suggestion system yielded 262,000 suggestions during 1989 with an 87% completion rate. In 1990 it rose to 472,884.
At Commercial Nuclear Fuel Division at Westinghouse, employee suggestions increased from 425 in 1985 to 2,000 in 1988.
Cadillac’s employee turnover rate has been cut in half. They also experienced a 33% improvement in injury and illness rates.
IBM Rochester’s safety record was 57% better, absenteeism rate was 48% less and turnover rate was 88% less.
44. MBNQA Results - Operating Procedures Average improvement in reliability was 11.3%.
On-time delivery improved 4.7% on an average annual basis.
Overall average annual order processing time improved 12%.
Overall reduction in errors was 10.3% on an annual basis.
Overall product lead time was reduced 5.8%.
Average annual inventory turnover increased 7.2%.
Quality costs improved 9% on an annual basis.
The range in annual average cost savings was $1.3 million to $116 million.
45. MBNQA Results - Operating Procedures Milliken improved from 75% on-time deliveries in 1984 to 99% in 1988; 60% reduction in cost of nonconformance; productivity increased 43% since 1983.
Since 1989, Motorola’s quality improvements have reduced by $250 million the cost incurred through internal and external failures. In the cellular telephone operation there was a 30 to 1 reduction in factory cycle time and a 90% reduction in defects/unit.
At Commercial Nuclear Fuel Division of Westinghouse, first time yields on fuel rods increased to 87% in 1987 from 50% in 1984.
46. MBNQA Results - Customer Satisfaction Customer satisfaction increased an annual average rate of 2.5%.
Complaints declined at an average annual rate of 11.6%.
Customer retention at Cadillac improved 24% between 1987 and 1990. Customer satisfaction with service has increased 17% since 1989.
Globe’s customer complaints went from 41 in 1985 to 4 in 1987.
At Federal Express, overall customer satisfaction for domestic service has averaged better than 95% since 1987; 94% for international service.
47. MBNQA Results - Financial Performance Market share increased 13.7% annually.
Sales per employee increased 8.6% annually.
Return in assets increased 1.3% annually.
Return on sales increased an average of 0.4%.
48. Quality Certifications Many good ideas
Process improvement and change are not easy.
Takes effort and perseverance
Mixed results for standard processes; Need application of the Spirit over the Formality