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Total Quality Management. What is Quality?. Old Quality vs. New Quality.

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Old quality vs new quality
Old Quality vs. New Quality

  • Difference between old quality (Rolls Royce, personal banker, ...) and new quality is that old was the work of craftsmen and the new is the work of a system (Toyota, Big Mac, Boeing Aircraft, Disney World, ...). The old is expensive, made for the few, using skilled hands, is beautiful and functionally based. The new reduces cost, made for the many by intelligent minds and should drive the economy and make business more competitive.

Toyota Commercial


Why care about quality
Why care about quality

  • increase productivity

  • expand market share

  • raise customer loyalty

  • enhance competitiveness of the firm

  • at a minimum, serve as a price of entry


Achieving high quality is difficult
Achieving high quality Is Difficult

  • Only 36% of the firms felt that Total Quality programs boosted their ability to compete. Arthur D. Little Survey of 500 Firms

  • Over 50% of firms rated their efforts D or F relative to increasing customer satisfaction, increasing market share, or reducing their cost. Rath and Strong

  • Main Problem: Achieving high quality is as easy to understand as losing weight and quitting smoking and is as difficult to do.

    Steve Schwartz, IBM MDQ VP


Why quality is so difficult to do
Why Quality is so difficult to do?

  • Quality can only be defined in terms of an agent (a judge of quality).

  • One has to translate future needs of the user into measurable characteristics


Service industries are particularly difficult
Service Industries are particularly Difficult

Reasons:

  • High volume of transaction

  • Immediate consumption

  • Difficult to measure and control

  • More labor intensive

  • High degree of customization required

  • Image is a quality characteristic

  • Behavior is a quality characteristic


Quality gurus
Quality Gurus

  • Deming: The father of the quality movement. Scientific approach to quality

  • Juran: Quality by design

  • Crosby: Quality is free


Deming s seven deadly diseases
Deming’s “Seven Deadly Diseases”

  • Lack of Constancy of purpose

  • Emphasis on short term profits

  • Evaluation of performance, merit rating or annual review of performance

  • Mobility of management

  • Running the company on visible figures alone

  • Excessive medical costs

  • Excessive costs of warranty fueled by lawyers that work on contingency fees

    Interview with Deming


What is tqm
What is TQM??

The essence of Total Quality Management is a common sense dedication to understanding what the customer wants and then using people and science to set up systems to deliver products and services that delight the customer.

Greg Hughes

President

AT&T Transmission Systems


Basic concepts of tqm
Basic Concepts of TQM

  • Customer Focus

  • Continuous Process Improvement - Kaizen

  • Employee Empowerment – Everyone is responsible for quality

  • Quality is free - focus on defect prevention rather than defect detection for it is always cheaper to do it right the first time

  • Benchmarking – Legally stealing other people’s ideas

  • Customer-Supplier Partnerships

  • Management by fact..by numbers..by data – Balanced scoreboard (financial, customer, process, learning)


Quality in u s vs the japanese
Quality in U.S. vs. the Japanese

  • U.S. conforming to the requirements at the least cost

  • Japanese joint responsibility to make the end customer happy


I met the requirements

Requirement

Products

or

Test Results

OEM

Supplier

OEM

“ I met the requirements”

Combative non collaborative relationship


Creating the best vehicle systems with all the people all the suppliers all the time
“Creating the Best Vehicle/Systems with All the People All the Suppliers All the Time”

YOU meet the

requirements!

Let’s create

the best Vehicle and

Systems together.

SOR

Partnership - Collaborative relationship


Strength of usa vs japan
Strength of USA vs. Japan the Suppliers All the Time”

Concept

Good Innovative Ideas

Good Implementation

Strength of Japanese Mfg

Strength of USA Mfg

KAIZEN

Time

Good Ideas, Good Implementation are the goals of everyone in the automotive industry


Seven basic quality tools to improve process quality
Seven Basic Quality Tools To improve Process Quality the Suppliers All the Time”

  • Scatter Diagrams: Plot data on a chart – no attempt is made to classify the data or massage it

  • Pareto Charts: Organize data on a histogram based on frequency from most prevalent to least. Help identify major causes or occurrences (80:20 rule)

  • Check Sheets: Easy way to count frequency of occurrence by front line workers

  • Histograms: Categorize data is cells and plot (see if any patterns emerge)

  • Run Charts: Plot data as a function of time

  • Cause and effects Charts:fishbone diagrams are used to identify the root causes of a problem

  • Control Charts: are statistical tools used to determine if the variation in results is caused by common or special events


Failures in o rings
Failures in O-rings the Suppliers All the Time”


Graph fit of o ring failures
Graph Fit of O-ring failures the Suppliers All the Time”


Full o ring data including no failures
Full O-ring data including no failures the Suppliers All the Time”


RUN CHART the Suppliers All the Time”

TRANSACTIONTIME

Time of Day


Data collected from check sheet
Data Collected the Suppliers All the Time”From Check Sheet

  • Time Range (in secs)

    44-50

    51-57

    58-64

    65-71

    72-78

    79-85

    86-92

    93-99

    100-106

    107-113

  • Frequency

    1

    4

    17

    12

    14

    19

    18

    11

    3

    1


A histogram
A Histogram the Suppliers All the Time”


Be careful of cell size
Be careful of Cell Size the Suppliers All the Time”


Pareto chart 80 20 rule
Pareto Chart (80-20 Rule) the Suppliers All the Time”

Further info on Pareto Charts


Pareto diagrams
Pareto Diagrams the Suppliers All the Time”

  • Purpose:

    • helps organize data to show major factors

    • displays data in the order of importance

    • organize based on fact rather than perception

  • To construct:

    • use data from a check sheet or similar instrument

    • analyze data to determine frequency

    • identify the vital few

    • calculate percentages

    • add percentages to find vital few (80%)

    • draw cumulative curve

  • Typical Application:

    • display relative importance of different factors

      • choose starting point for problem solving

      • monitor success

      • identify basic cause of a problem

    • use a selling tool to gain support


Teller the Suppliers All the Time”

Processes

Sequence

of activities

Fatigue

Too

many

steps

Training

Control

functions

Attitude

Processing

Delays

Too much

downtime

Not user

friendly

Slow

response

time

Fishbone Diagram aka

Cause & Effect Diagram

Computers


Cause and effect diagram fishbone diagram
Cause and Effect Diagram the Suppliers All the Time”“Fishbone Diagram”

  • Purpose:

    • visual display of information to identify root causes rather than symptoms.

  • To construct:

    • determine the issue and write problem statement in a box to the right of diagram

    • find the main causes and write them on branches flowing to the main branch (method, equipment, people, material, environment, customer expectations, money, management, govt. regulations)

    • identify all possible causes and write them on the diagram as sub-causes in each category

  • Typical Application:

    • determine the real cause of the problem

    • check the potential effects of a solution

      Fishbone Diagrams Explained

      5 Why’s problem solving technique


Mizenboushi and GD3 Concepts the Suppliers All the Time”

Robust Design

- keep Good Designs

- minimize change

Good

Design

Find Problems

Prevent Problems

GD3

Good

Dissection

Good

Discussion

DRBFM

DRBTR

Address any potential issues up stream at Design Phase


Quality focus at the design stage
Quality Focus At the Design Stage the Suppliers All the Time”

Quality from the start –

  • Directs attention to “Change”

    • Change = potential to have problems

  • Directs attention to “Interfaces”

    • Most defects occur at the “interface”

Focus on

Change Points & Interface Points


No change – No Problem the Suppliers All the Time”

  • Examples:

  • Design change

  • Packaging environment

  • change

  • Usage environment

  • change

  • New manufacturing

  • process

  • New supplier

Change Points have the highest potential to introduce defects


Drbfm example
DRBFM – Example the Suppliers All the Time”

  • Tire Pressure Monitoring System –

  • Changing the sensor from Aluminum Valve to Rubber Valve.

  • Purely for cost reduction purposes... System Performance is the same.

Simple change – What could go wrong?


Interfaces
Interfaces the Suppliers All the Time”

Interfaces – (Interfaces where issues can brew and surface later)

  • Customer to Supplier

  • Department to Department

  • System Interfaces

  • The Crash sensor failure on Honda Minivans

  • Interface Points have the highest potential to introduce defects


    Design review by failure modes drbfm basic concepts
    Design Review By Failure Modes (DRBFM) the Suppliers All the Time”Basic Concepts

    • Before and After – Description of the Change Point

    • Describe the Potential failure modes

    • Describe the Design Countermeasures

    • Target Testing of the change points and Countermeasures Only

    Design techniques to uncover defects at the design stage – Up stream


    DRBFM the Suppliers All the Time”

    DRBTR

    Design

    Verify/Validate

    Design

    Changes

    Test Result (Change in product due to test: Cracks,Leaks, etc.)

    Focus on Implementation

    34


    Where do failures occur
    Where do failures occur the Suppliers All the Time”

    • Design Phase (Suppliers are Up Stream)

    • Production

    • In the field

    • Where is it cheapest to detect failures?

    • Example:

      Replacing a four crash sensors by a single one ..


    When failures occur
    When Failures Occur! the Suppliers All the Time”

    • Why did the failure happen?

      • Symptoms vs. Root Causes

      • Root Causes (Investigate the whole chain):

        • Suppliers/Component failure

        • Design

        • Manufacturing

        • Change management

    • Why were not able to detect it?

    • Rootcause Analysis:

      • Why Occurred?

      • Why Not Detected?


    Failure detection 5ws 2hs
    Failure Detection 5Ws-2Hs the Suppliers All the Time”

    • Who

    • Where

    • When

    • What

    • Why

    • How was the problem found?

    • How can we isolate it? Turn On / Turn Off

    Rootcause Analysis Methodology


    Failure isolation kt analysis is is not
    Failure Isolation – KT Analysis: Is - Is Not the Suppliers All the Time”

    • Why is this design and not the other similar design

    • Why this plant and not another plant

    • Why this operator and not the other operator

    • Why in winter and not in the summer

    • Why this computer and not the other computer

    • Why in this model and not in other models

    Rootcause Analysis Methodology


    Finding the root causes of a problem is not fault finding criticism
    Finding the root causes of a problem is not Fault Finding/Criticism.

    • To find problems is not fault finding/criticism.

    • To find problems is a creative act, same as innovation.

    • We should never stop at only finding problems, but also develop a systemic corrective action plan... FIX THE PROCESS that created the problem & identify detection algorithms

    • We never forget that every job should relate directly to improving a product. Other jobs are nothing but waste, e.g., only to check, to inspect, etc.

    • Everyone should readily accept help from review participants.


    Summary concepts
    Summary - Concepts Finding/Criticism.

    • Quality all the time by everyone from an end user prospective

    • Address issues up stream. Address product and process defects at the design stage

    • Fixing problems usually involves fixing the systemic process issues that caused the problem – Reoccurrence Prevention

    • Focus on Implementation

    • Focus on Change Points and Interfaces


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