Topic 3 total quality management
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Topic 3. TOTAL QUALITY MANAGEMENT. I. Introduction. -- What is quality? “The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs” -- ASQC. Quality Criteria. User-based: Fitness of intended use

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Topic 3. TOTAL QUALITY MANAGEMENT

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Topic 3 total quality management

Topic 3. TOTAL QUALITY MANAGEMENT


I introduction

I. Introduction

-- What is quality?

  • “The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs” -- ASQC


Quality criteria

Quality Criteria

  • User-based:

    • Fitness of intended use

    • Quality is determined by what a customer wants

  • Product-based:

    • A function of a specific, measurable variable and that differences in quality reflect differences in quantity of some product attribute, such as stitches per inch on a shirt, number of cylinders in a engine


Quality criteria continuous

Quality Criteria (continuous)

  • Manufacturing-based:

    • The desirable outcome of engineering and manufacturing practice, or conformance to specification,


Why quality is important

Why quality is important?

  • Costs and market share

    • Internal failure, external failure, appraisal, prevention costs

  • Company’s reputation

  • Product liability

  • International implications


Quality management history

Quality Management History

  • Up to 1920: Fredrick W. Taylor --- Concept of Scientific Management

  • 1920-1940: Inspection QC period

    • Pioneers: Watter Shewart, Harold Dodge, George Edwards, etc.

    • 1924 - Statistical process control charts

    • 1930 - Tables for acceptance sampling

    • 1940’s - Statistical sampling techniques


Quality management history1

Quality Management History

  • 1940 – 1960 Statistical QC period

    • ASQC (American Society for Quality Control)

    • Sampling inspection

    • 1950’s - Quality assurance/TQC

    • Deming (1950) and Juran (1954) introduced statistical quality control to Japanese workers. Top Japanese managers were convinced that quality improvement would open new world market and necessary for the survival of their nation


Quality management history2

Quality Management History

  • 1950 – 1970, Japanese quality revolution

    • 1950, Deming Award, Japanese National Highest Quality Award

    • Many businesses in U.S. lost significant market share


Quality management history3

Quality Management History

  • 1987 Business Week

    “Quality, remember it? American manufacturing has slumped a long way from the glory days of the 1950s and 60s when ‘Made in U.S.A.’ proudly stood for the best that industry could turn out…While the Japanese were developing remarkable higher standards for a whole host of products, from consumer electronics to cars and machines tools, many U.S. managers were smugly dozing at the switch. Now, aside from aerospace and agriculture, there are few markets left where the U.S. carries its own weight in international trade. For American industry, the message is simple. Get better or get beat.


Quality management history4

Quality Management History

  • 1980, NBC aired “If Japan can, Why can’t we?” -- introduced Deming

  • 1980s: Quality Revolution in America

    • 1984 – U.S. government designed October as national quality month

    • 1987 – Congress established the Malcolm Baldrige National Quality Award


The quality gurus

The Quality Gurus

  • Walter Shewhart

    • “Father of statistical quality control”

  • W. Edwards Deming (14 points)

  • Joseph M. Juran (Pareto)

  • Armand Feigenbaum (TQM)

  • Philip B. Crosby (Zero Defects)

  • Kaoru Ishikawa (Fishbone Diagram)

  • Genichi Taguchi (Taguchi Technique)


Key contributors to quality management

Key Contributors to Quality Management


Quality awards

Quality Awards

  • Malcolm Baldrige National Quality Award (U.S.)

  • European Quality Award

  • The Deming Prize (Japan)


Malcolm baldrige national quality award

Malcolm Baldrige National Quality Award

  • 1.0 Leadership (125 points)

  • 2.0 Strategic Planning (85 points)

  • 3.0 Customer and Market Focus (85 points)

  • 4.0 Information and Analysis (85 points)

  • 5.0 Human Resource Focus (85 points)

  • 6.0 Process Management (85 points)

  • 7.0 Business Results (450 points)


Benefits of baldrige competition

Benefits of Baldrige Competition

  • Financial success

  • Winners share their knowledge

  • The process motivates employees

  • The process provides a well-designed quality system

  • The process requires obtaining data

  • The process provides feedback


European quality award

European Quality Award

  • Prizes intended to identify role models

    • Leadership

    • Customer focus

    • Corporate social responsibility

    • People development and involvement

    • Results orientation


The deming prize

The Deming Prize

  • Honoring W. Edwards Deming

  • Japan’s highly coveted award

  • Main focus on statistical quality control


Quality certification

Quality Certification

  • ISO 9000

    • Set of international standards on quality management and quality assurance, critical to international business

  • ISO 14000

    • A set of international standards for assessing a company’s environmental performance


Iso 9000 standards

ISO 9000 Standards

Requirements

  • System requirements

  • Management

  • Resource

  • Realization

  • Remedial


Iso 9000 quality management principles

ISO 9000 Quality Management Principles

  • Customer focus

  • Leadership

  • People involvement

  • Process approach

  • A systems approach to management

  • Continual improvement

  • Factual approach to decision making

  • Mutually beneficial supplier relationships


Iso 14000

ISO 14000

  • ISO 14000 - A set of international standards for assessing a company’s environmental performance

  • Standards in three major areas

    • Management systems

    • Operations

    • Environmental systems


Iso 140001

ISO 14000

  • Management systems

    • Systems development and integration of environmental responsibilities into business planning

  • Operations

    • Consumption of natural resources and energy

  • Environmental systems

    • Measuring, assessing and managing emissions, effluents, and other waste


Six sigma

Six Sigma

Six sigma: A business process for improvingquality, reducing costs, and increasingcustomer satisfaction.


Six sigma1

Six Sigma

  • Statistically

    • Having no more than 3.4 defects per million

  • Conceptually

    • Program designed to reduce defects

    • Requires the use of certain tools and techniques


Six sigma programs

Six Sigma Programs

  • Six Sigma programs

    • Improve quality

    • Save time

    • Cut costs

  • Employed in

    • Design

    • Production

    • Service

    • Inventory management

    • Delivery


Six sigma management

Six Sigma Management

  • Providing strong leadership

  • Defining performance metrics

  • Selecting projects likely to succeed

  • Selecting and training appropriate people


Six sigma technical

Six Sigma Technical

  • Improving process performance

  • Reducing variation

  • Utilizing statistical models

  • Designing a structured improvement strategy


Six sigma team

Six Sigma Team

  • Top management

  • Program champions

  • Master “black belts”

  • “Black belts”

  • “Green belts”


Six sigma process

Six Sigma Process

  • Define

  • Measure

  • Analyze

  • Improve

  • Control

DMAIC


Two parts of quality management

Two parts of quality management

  • Quality Control:

    • Actions directly under the management control to improve quality (prevent problem to happen)

  • Quality Assurance:

    • Actions outsider of management control to assure quality (problem has already there, you just assure that it will not go to customers)


Traditional concept of quality management

Traditional concept of quality management

  • Responsibility of quality control dept. only

  • Rely on the inspection process

  • Satisfied with meeting specifications


Total quality management

Total Quality Management

A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.


Elements of tqm

Elements of TQM

  • Continual improvement

  • Competitive benchmarking

  • Employee empowerment

  • Team approach

  • Decisions based on facts

  • Knowledge of tools

  • Supplier quality

  • Champion

  • Quality at the source

  • Suppliers


The tqm approach

The TQM Approach

  • Find out what the customer wants

  • Design a product or service that meets or exceeds customer wants

  • Design processes that facilitates doing the job right the first time

  • Keep track of results

  • Extend these concepts to suppliers


Continuous improvement

Continuous Improvement

  • Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs.

  • Kaizen: Japanese word for continuous improvement.


Quality at the source

Quality at the Source

  • The philosophy of making each worker responsible for the quality of his or her work.


Obstacles to implementing tqm

Obstacles to Implementing TQM

  • Lack of:

    • Company-wide definition of quality

    • Strategic plan for change

    • Customer focus

    • Real employee empowerment

    • Strong motivation

    • Time to devote to quality initiatives

    • Leadership


Obstacles to implementing tqm1

Obstacles to Implementing TQM

  • Poor inter-organizational communication

  • View of quality as a “quick fix”

  • Emphasis on short-term financial results

  • Internal political and “turf” wars


Deming s 14 points

Deming's 14 points

  • 1. create consistency of

  • purpose

  • 2. lead to promote change

  • 3. quality through design

    instead of inspection

  • 4. reduce # of suppliers, don’t buy on price alone

  • 5. continuously improve product, quality, and service


Deming s 14 points1

Deming's 14 points

  • 6. institute modern training methods

  • 7. emphasize leadership

  • 8. drive out fear

  • 9. break down barriers between departments

  • 10. eliminate numerical goals, slogans, posters for the work force


Deming s 14 points2

Deming's 14 points

  • 11. using statistical methods to improve quality and productivity

  • 12. remove barriers to pride of workmanship

  • 13. institute a program for retraining people in new skills

  • 14. put everybody to work on the transformation


Tools for tqm

Tools For TQM

  • Quality Function Deployment

    • Translate customer desire to product and process design


Topic 3 total quality management

Correlation:

Strong positive

X

Positive

X

X

Negative

X

X

X

Strong negative

*

Engineering Characteristics

Competitive evaluation

Check force on level ground

Energy needed

to open door

Energy needed

to close door

Accoust. Trans.

Window

X = Us

Door seal

resistance

Water resistance

A = Comp. A

Importance to Cust.

B = Comp. B

Customer

Requirements

(5 is best)

1 2 3 4 5

AB

X

Easy to close

7

X AB

Stays open on a hill

5

Easy to open

3

XAB

A X B

Doesn’t leak in rain

3

10

6

6

9

2

3

No road noise

2

X A

B

Importance weighting

Relationships:

Strong = 9

Medium = 3

Target values

Reduce energy

level to 7.5 ft/lb

Reduce energy

to 7.5 ft/lb.

Small = 1

Reduce force

to 9 lb.

Maintain

current level

Maintain

current level

Maintain

current level

5

BA

BA

B

B

BXA

X

Technical evaluation

(5 is best)

B

4

X

A

X

A

3

A

X

2

X

1


Tools for tqm1

Tools For TQM

  • Taguchi Technique

    • Quality robustness

    • Quality loss function

    • Target specification


Tools for tqm taguchi quality loss function

High

High

Incremental

Cost of

Variability

Incremental

Cost of

Variability

Zero

Zero

Lower

Spec

Target

Spec

Upper

Spec

Lower

Spec

Target

Spec

Upper

Spec

Traditional View

Taguchi’s View

Tools For TQM Taguchi Quality loss function

Traditional view is that quality within the LS and US is good and that the cost of quality outside this range is constant, where Taguchi views costs as increasing as variability increases, so seek to achieve zero defects and that will truly minimize quality costs.


Tools for tqm2

Monday

  • Billing Errors

    • Wrong Account

    • Wrong Amount

  • A/R Errors

    • Wrong Account

    • Wrong Amount

Tools For TQM

  • Check Sheet


Tools for tqm3

Diameter

Time (Hours)

Tools For TQM

  • Run Chart


Tools for tqm4

Tools For TQM

  • Process Flow Charts

    • Standard procedure to decompose and describe a process


Topic 3 total quality management

FLOW PROCESS CHART

Job Requisition of petty cash

ANALYST

D. Kolb

PAGE

1 of 2

Operation

Inspection

Movement

Storage

Delay

Details of Method

Requisition made by department head

Put in “pick-up” basket

To accounting department

Account and signature verified

Amount approved by treasurer

Amount counted by cashier

Amount recorded by bookkeeper

Petty cash sealed in envelope

Petty cash carried to department

Petty cash checked against requisition

Receipt signed

Petty cash stored in safety box


Tools for tqm5

Methods

Materials

Cause

Cause

Cause

Cause

Cause

Cause

Cause

Cause

Cause

Cause

Cause

Cause

Effect

Environment

People

Equipment

Tools For TQM

  • Cause-and-Effect Diagram

    • Tool to systematically identify quality problems


Tools for tqm6

Number of defects

Offcenter

Smeared

print

Missing

label

Other

Loose

Tools For TQM

  • Pareto Charts

    • Distinguish major causes and minor causes of quality problems

80% of the problems may be attributed to 20% of the

causes.


Tools for tqm7

1020

UCL

1010

1000

990

LCL

980

970

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Tools For TQM

  • Statistical Process Control (Control Charts)


Tools for tqm8

UCL

UCL

UCL

LCL

LCL

Additional improvements

made to the process

LCL

Process centered

and stable

Process not centered

and not stable

Tools For TQM

  • Tracking Improvements


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