Total Quality Management

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Total Quality Management. The integration of all processes and functions of the firm in the task of ensuring a product's quality throughout its life cycle.Measurement of Success:100% Customer SatisfactionMethod of Achievement:Continuous Improvement. Key Issues in TQM. Requires a cultural change based on a management philosophy of meeting customer requirements through continuous improvement.Delco - lip serviceGM - more work for same payTop Management must support TQM.

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Total Quality Management

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1. Total Quality Management TQM Deming, Crosby, Juran TQM Tools and Techniques Case 7.1 Process Variation Exercise Administration Announcement about cust surveys Reengineering Presentation Put guidelines for scoring on overhead Have everyone put their scores (with their names) on a sheet of paper, along with any comments they feel are relevant Get “effort level” scores from group Have class bring scores down and pick up their names TQM Deming, Crosby, Juran Quality awards presentation Put guidelines for scoring on overhead Have everyone put their scores (with their names) on a sheet of paper, along with any comments they feel are relevant Get “effort level” scores from group TQM Tools and Techniques Cases 4.1 / 7.1 Return of 2.1 Show what correction symbols meanAdministration Announcement about cust surveys Reengineering Presentation Put guidelines for scoring on overhead Have everyone put their scores (with their names) on a sheet of paper, along with any comments they feel are relevant Get “effort level” scores from group Have class bring scores down and pick up their names TQM Deming, Crosby, Juran Quality awards presentation Put guidelines for scoring on overhead Have everyone put their scores (with their names) on a sheet of paper, along with any comments they feel are relevant Get “effort level” scores from group TQM Tools and Techniques Cases 4.1 / 7.1 Return of 2.1 Show what correction symbols mean

2. Total Quality Management The integration of all processes and functions of the firm in the task of ensuring a product’s quality throughout its life cycle. Measurement of Success: 100% Customer Satisfaction Method of Achievement: Continuous Improvement

3. Key Issues in TQM Requires a cultural change based on a management philosophy of meeting customer requirements through continuous improvement. Delco - lip service GM - more work for same pay Top Management must support TQM

4. TQM = MGT + Statistics Top managers serve as role models Use of quality processes and tools Encourage communication Put money where mouth is: invest in training rewards

5. Mechanisms of Change Training Communications Recognition Teamwork Customer Satisfaction Programs

6. Axioms of TQM Commitment to Quality Extensive Use of Scientific Tools, Technologies and Methods Total Involvement in the Quality Undertaking Continuous Improvement

7. Deming’s Deadly Sins Lack of Constancy Concentration on Short-Term Profits Over-reliance on Performance Appraisals Job Hopping Overemphasis on Visible Figures

8. Juran Defined Quality and Cost of Quality Quality Habit Quality Trilogy University Breakthrough Sequence Defined Quality and Cost of Quality quality = fitness for use fitness for use comes from: quality of design - the suitability of a products design concept and specification for its intended use quality of conformance - how well an actual product achieves the intentions of its design availability - absence of problems that could affect the product’s use safety - the threat of harm to the user or the product field use - the condition of the product once it reaches the user’s hands cost of quality - method of stating all of the costs associated with defective products in dollars. This includes: internal failure costs - costs from detection of defect before shipment to customer external failure costs - costs from defects identified after product gets to customer appraisal costs - costs that result from examinations to assess products’ quality levels prevention costs - costs that result from efforts to prevent defects and limit failure and appraisal costs Quality Habit - an unwavering focus on the need for quality. To develop quality habit: 1. Establish goals that identify what org. members should do and why 2. Establish plans for reaching those goals with enough detail to guide people’s action from beginning to end. 3. Assign clear responsibilities for meeting goals 4. Base rewards on results Quality Trilogy - Quality Planning, Quality Control, Quality Improvement Universal Breakthrough Sequence: Proof of need Project identification Organizing for Improvement Diagnostic Journey Remedial Action Resistance to Change Holding on to gainsDefined Quality and Cost of Quality quality = fitness for use fitness for use comes from: quality of design - the suitability of a products design concept and specification for its intended use quality of conformance - how well an actual product achieves the intentions of its design availability - absence of problems that could affect the product’s use safety - the threat of harm to the user or the product field use - the condition of the product once it reaches the user’s hands cost of quality - method of stating all of the costs associated with defective products in dollars. This includes: internal failure costs - costs from detection of defect before shipment to customer external failure costs - costs from defects identified after product gets to customer appraisal costs - costs that result from examinations to assess products’ quality levels prevention costs - costs that result from efforts to prevent defects and limit failure and appraisal costs Quality Habit - an unwavering focus on the need for quality. To develop quality habit: 1. Establish goals that identify what org. members should do and why 2. Establish plans for reaching those goals with enough detail to guide people’s action from beginning to end. 3. Assign clear responsibilities for meeting goals 4. Base rewards on results Quality Trilogy - Quality Planning, Quality Control, Quality Improvement Universal Breakthrough Sequence: Proof of need Project identification Organizing for Improvement Diagnostic Journey Remedial Action Resistance to Change Holding on to gains

9. Deming vs. Juran

10. Crosby’s Absolutes for Quality Management Quality is Conformance to Requirements, Not Goodness Quality Systems Amount to Prevention Zero Defects Define the Performance Standard Measurement of Quality is the Price of Nonconformance Mention Crosby’s appearance at Midwest DSIMention Crosby’s appearance at Midwest DSI

11. TQM Process Tools Check Sheets Pareto Analysis Cause and Effect (Fishbone) Diagrams Process Flow Diagrams Histograms Process Capability Measures Control Charts Scatterplots Plan-Do-Check-Act Cycles Brainstorming

12. Process Capability Measure Cp Cp = Specification width / Process width An indication of the variability of a process Specification width (S) = the interval between the lower and upper limits on performance data for a product or process Process width (P) = the interval between the lower an upper ends of the distribution of process performance data In general - larger Cp indicates a more reliable and predictable process

13. Process Capability Measure Cpk Adjusts for any difference between the center of a distribution and the midpoint of the specification Cpk = (1-K)Cp, where K = abs[D-Xbar]/(S/2) = {[1- (abs[D-Xbar]/(S/2)]}{S/P} D = the design center of the specification Xbar = process average Effectively measures both variability and capability High Cpk indicates low variance and a properly centered distribution of performance data

14. TQM Design Tools QFD House of Quality Concurrent Engineering Hoshin Management

15. TQM Design Tools: QFD Quality Function Deployment - a set of methods to identify all of the major requirements of a firms’ customers and to evaluate how well the designs of product and OM processes meet or exceed those requirements QFD links four matrices: 1. Customer requirements planning matrix 2. Technical features deployment matrix 3. Process plan and quality control charts 4. Translate critical process and product parameters into specifications for operations for plant personnel 1. Customer requirements planning matrix: identifies customer requirements and translates them into technical product features 2. Technical features deployment matrix: translates the technical product features into design requirements for product components 3. Translate design requirements for product components into critical process and product parameters through process plan and quality control charts 4. Translate critical process and product parameters into specifications for operations for plant personnel 1. Customer requirements planning matrix: identifies customer requirements and translates them into technical product features 2. Technical features deployment matrix: translates the technical product features into design requirements for product components 3. Translate design requirements for product components into critical process and product parameters through process plan and quality control charts 4. Translate critical process and product parameters into specifications for operations for plant personnel

16. TQM Design Tools: House of Quality

17. TQM Design Tools: House of Quality: Steps for Generation 1. Identify Customer Attributes 2. Identify Supporting Technical Characteristics 3. Correlate Customer Attributes with Supporting Technical Features 4. Assign Priorities to Customer Requirements and Technical Features 5. Evaluate Competitors’ Stances and Products 6. Identify Technical Characteristics to Deploy in the Final Product Design

18. TQM Design Tools: Hoshin Management Work towards dramatic, strategic breakthroughs for the organization 5 Key principles: 1. A planning and implementation process is defined to foster continuous improvement throughout the PDCA cycle 2. Identify key functions and systems within the firm that need to be improved for the firm to achieve its strategic objectives 3. It encourages appropriate cross-functional and vertical participation in planning to execution for achieving yearly objectives 4. All planning and execution are based on fact 5. Goals and action plans reflect the true capabilities of the organization

19. Implementing TQM Define the mission Identify the system output Identify customers Determine customer requirements Develop a customer specification that details customer requirements and expectations. Determine the activities required to fulfill customer requirements and expectations

20. TQM Implementation Baldrige Award initiated in 1987 Sets a national set of standards that can be used as a benchmark for TQM. Hundreds of thousands of major firms use the Baldrige criteria as a guide for quality improvement programs. A formula or template for TQM

21. Baldrige Award not a contest not prescriptive not a guarantee of high quality Customers dictate it Formalized system in place not a contest not prescriptive not a guarantee of high quality

22. Baldrige Award To raise the consciousness of U.S. business leaders regarding the issue of quality. To provide a comprehensive framework for measuring the quality efforts of U.S. businesses. To provide U.S. business with a template for a thorough TQM system.

23. Baldrige Award Winners include: Motorola (1988) Xerox (1989) Wallace Company (1990) defunct It takes 8 to 12 years to develop a quality system that is competitive for the award

24. Baldrige Award: 7 Categories 1.0 Leadership (110) 2.0 Strategic Planning (80) 3.0 Customer and Market Focus (80) 4.0 Information and Analysis (80) 5.0 Human Resource Development (100) 6.0 Process Management (100) 7.0 Business Results (450)

25. Business Results (450) Customer Satisfaction Results (130) Financial and Market Results (130) Human Resource Results (35) Supplier and Partner Results (25) Company Specific Results (130)

26. Quality Function Deployment Incorporate the voice of the customer into the design process.

27. ISO 9000 A generic term for a series of standards sponsored by the Organization for Standardization. Specifies the quality systems to be established by manufacturing and service firms. A system for establishing, documenting, and maintaining a system for ensuring the quality of the output of a process.

28. ISO 9000 Certification represents a commitment Certification is by facility review the facility,s quality manual audit the facility’s process unannounced audits annual re-certification

29. ISO 9000 Means of gaining access to EC markets Competitive requirement Customers dictate it Formalized system in place not a contest not prescriptive not a guarantee of high quality

30. TQM Baldrige - You have to demonstrate results and achievement ISO - just looks for a system Both are stepping stones to becoming a TQM organization

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