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Chapter 11
TQM & Quality Tools
Management 3620 Chapter 11 TQM and Quality Tools 11-2
Total Quality Management
A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction
Management 3620 Chapter 11 TQM and Quality Tools 11-3
TQM Approach• Find out what the customer wants
• Design a product or service that will meet (or exceed) what customers want
• Design a set of processes that facilitates doing the job right the first time
• Keep track of results, and use those to guide improvement
• Extend these concepts to suppliers and to the distribution system
Management 3620 Chapter 11 TQM and Quality Tools 11-4
Elements of TQM• Continual improvement• Competitive benchmarking• Employee empowerment• Team approach• Decisions based on facts• Knowledge of tools• Supplier quality• Champion
Management 3620 Chapter 11 TQM and Quality Tools 11-5
Continuous Improvement
• Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs.
• Kaizen: Japanese word for continuous improvement.
Management 3620 Chapter 11 TQM and Quality Tools 11-6
Quality at the Source• The philosophy of making each worker
responsible for the quality of his or her work– places direct responsibility for quality on
the person(s) who directly affect it– removes adversarial relationship that
often exits between QC inspectors and production workers
– motivates workers by giving them control over their and as well as pride in it
Management 3620 Chapter 11 TQM and Quality Tools 11-7
Obstacles toImplementing TQM (1 of 2)
• 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
Management 3620 Chapter 11 TQM and Quality Tools 11-8
Obstacles toImplementing TQM (2 of 2)
• Poor interorganizational communication
• View of quality as a “quick fix”
• Emphasis on short-term financial results
• Internal political and “turf” wars
Management 3620 Chapter 11 TQM and Quality Tools 11-9
Criticisms of theTQM Approach
• Blind pursuit of TQM programs• Programs may not be linked to the
strategy in a meaningful way• Quality-related decisions may not
be tied to market performance• Failure to carefully plan a program
can lead to false starts, employee confusion, and meaningless results
Management 3620 Chapter 11 TQM and Quality Tools 11-10
Basic Steps in Problem Solving• Define the problem and establish
an improvement goal• Collect data• Analyze the problem• Generate potential solutions• Choose a solution• Implement the solution• Monitor the solution to see if it
accomplishes the goal
Management 3620 Chapter 11 TQM and Quality Tools 11-11
Process Improvement
• A systematic approach to improving a process
• Overview of the approach– process mapping
– analyze the process
– redesign the process
Management 3620 Chapter 11 TQM and Quality Tools 11-12
Plan
Do
Study
Act
Figure 11-1
The PDSA Cycle
Management 3620 Chapter 11 TQM and Quality Tools 11-13
The Process Improvement Cycle
Implement theImproved process
Select aprocess
Study/document
Seek ways toImprove it
Design anImproved process
Evaluate
Document
Management 3620 Chapter 11 TQM and Quality Tools 11-14
Process Improvement Tools
• There are a number of tools that can be used for problem solving and process improvement
• Tools aid in data collection and interpretation, and provide the basis for decision making
Management 3620 Chapter 11 TQM and Quality Tools 11-15
Seven Basic Quality Tools
• Check sheets• Flowcharts• Scatter diagrams• Histograms• Pareto analysis• Control charts• Cause-and-effect diagrams
Management 3620 Chapter 11 TQM and Quality Tools 11-16
Billing Errors
Wrong Account
Wrong Amount
A/R Errors
Wrong Account
Wrong Amount
Monday
Check Sheet
Management 3620 Chapter 11 TQM and Quality Tools 11-17
Flowchart
Management 3620 Chapter 11 TQM and Quality Tools 11-18
Scatter Diagram
Variable A
Variable B
Management 3620 Chapter 11 TQM and Quality Tools 11-19
Histogram
frequency
A B C D E
Management 3620 Chapter 11 TQM and Quality Tools 11-20
80% of the problems may be attributed to 20% of thecauses.
80% of the problems may be attributed to 20% of thecauses.
Smearedprint
Nu
mb
er o
f d
efec
ts
Offcenter
Missinglabel
Loose Other
Pareto Analysis
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970
980
990
1000
1010
1020
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
UCL
LCL
Figure11-10
Control Chart
Management 3620 Chapter 11 TQM and Quality Tools 11-22
Cause-and-Effect Diagram
Figure11-11
Effect
MaterialsMethods
EquipmentPeople
Environment
Cause
Cause
Cause
Cause
Cause
CauseCause
Cause
CauseCause
Cause
Cause
Management 3620 Chapter 11 TQM and Quality Tools 11-23
Tracking Improvements
UCL
LCL
LCLLCL
UCLUCL
Process not centeredand not stable
Process centeredand stable
Additional improvementsmade to the process
Figure11-16
Management 3620 Chapter 11 TQM and Quality Tools 11-24
Methods for Generating Ideas
• Brainstorming
• Quality circles
• Interviewing
• Benchmarking
• 5W2H
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Quality Circles
• Team approach– List reduction
– Balance sheet
– Paired comparisons
Management 3620 Chapter 11 TQM and Quality Tools 11-26
Benchmarking Process
• Identify a critical process that needs improving
• Identify an organization that excels in this process
• Contact that organization
• Analyze the data
• Improve the critical process
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