1MTSU

TQM for SupplyTQM for Supply

2MTSU

TQM for SupplyTQM for Supply

• What is supply management?• How does it differ from operations

management?• How is the TQM implementation

different for supply than for the rest of the company?

3MTSU

Supply Chain ManagementSupply Chain Management

• A supply chain consists of all stages involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves.Chopra and Meindl

4MTSU

Supply Chain Management Supply Chain Management vs. Operations Managementvs. Operations Management

The primary difference between supply chain management and

operations management is that OM is primarily focused on one

organization, while SCM includes the operations of many

organizations.

5MTSU

Supply ManagementSupply Management

Supply management would be concerned with the improvement

of other organizations in the supply chain and the interfaces between those organizations.

6MTSU

Supply ManagementSupply Management

Improvement of other organizations in the supply chain must be limited in scope or it would be beyond the

resources of even the largest of companies.

7MTSU

What Methodologies Would What Methodologies Would Be Useful?Be Useful?

• Deming• Juran• Crosby• Feigenbaum• Ishikawa• Six Sigma

8MTSU

W. Edwards Deming’s W. Edwards Deming’s 14 Points for Management14 Points for Management

1. Create constancy of purpose

2. Adopt a new philosophy3. Cease dependence on

mass inspection4. End awarding business

on the basis of price5. Constantly improve the

system6. Institute training on the

job7. Improve leadership

8. Drive out fear.9. Break down barriers10.Eliminate slogans11.Eliminate work

standards12.Remove barriers to

pride13.Institute education &

self improvement14.Put everybody back to

work

9MTSU

W. Edwards Deming’s W. Edwards Deming’s Seven Deadly DiseasesSeven Deadly Diseases

1. Lack of constancy of purpose2. Emphasis on short-term profits3. Evaluation of performance, merit ratings,

or annual reviews of performance4. Mobility of management5. Running a company on the visible

numbers alone6. Excessive medical costs7. Excessive warranty costs

10MTSU

Joseph M. Juran’s Joseph M. Juran’s PrescriptionsPrescriptions

Quality PlanningQuality Planning1. Establish quality goals2. Identify the customers3. Determine customer needs4. Develop product features to respond to

customer needs5. Develop process features6. Establish process controls

11MTSU

Joseph M. Juran’s Joseph M. Juran’s PrescriptionsPrescriptions

Quality ControlQuality Control1. Evaluate actual quality performance2. Compare actual performance to quality

goals3. Act on the difference

12MTSU

Joseph M. Juran’s Joseph M. Juran’s PrescriptionsPrescriptions

Quality ImprovementQuality Improvement1. Establish infrastructure needed to secure

annual quality improvement2. Identify the specific needs for

improvement3. Establish project team with clear

responsibility for success

13MTSU

Philip Crosby’sPhilip Crosby’s14-Point Q Improvement 14-Point Q Improvement

ProgramProgram1. Management

commitment2. Q Improvement

Teams3. Q Measurements4. Cost of Q Evaluation5. Q Awareness6. Corrective Action7. 0-Defect

Committees

8. Supervisor Training9. Zero-defects Day10.Goal Setting11.Error Cause

Removal12.Recognition13.Quality Councils14.Do It Over Again

14MTSU

Feigenbaum’s 19 StepsFeigenbaum’s 19 Steps

1. TQC = system of improvement

2. CW Commitment > line improvements

3. Control is a mgt tool

4. QC requires integration

5. Q improves profits6. Q is expected, not

desired

7. Humans affect Q8. TQC applies to all

products & services9. Q is a total life-cycle

consideration10.Control the process11.TQ system involves

the whole company12.Many operating &

financial benefits of Q

15MTSU

Feigenbaum’s 19 StepsFeigenbaum’s 19 Steps

13.Cost of Q is a means for measuring QC activities

14.Organize for QC15.Managers are Q

facilitators, not Q Cops

16.Strive for continuous improvement

17.Use statistical tools18.Automation is not a

panacea19.Control Q at the

source

16MTSU

Ishikawa’s 11 PointsIshikawa’s 11 Points

1. Q begins & ends with education

2. 1st step in Q is to know the requirements of customer.

3. Ideal state of QC is when inspection not needed.

4. Remove root causes not symptoms.

5. QC is responsibility of all workers.

6. Do not confuse means w/ objectives.

7. Put Q 1st and set sights on long term objectives.

8. Marketing is entrance & exit of Q.

17MTSU

Ishikawa’s 11 PointsIshikawa’s 11 Points

9. Top management must not show anger when facts are presented to subordinates.

10. 95% of problems in a company can be solved by the 7 tools of QC.

11. Data without dispersion info are false data.

18MTSU

Mikel HarryMikel Harry

1. Six Sigma Quality2. Defined toolbox3. Human issues –

commitment and training

4. Quality measurement – DPMO – Cost of Q

5. Structures – DMAIC, DMADV

6. Critical to Quality

19MTSU

DMADV - DMAICDMADV - DMAIC

Define

Design

Verify

Measure

Analyze

Define

Improve

Control

Measure

Analyze

Existing ProcessesNew Processes

20MTSU

Seven Management ToolsSeven Management Tools

1. Affinity Diagram2. Interrelationship Diagraph3. Tree Diagrams4. Prioritization Matrices5. Matrix Diagram6. Process Decision Program Chart7. Activity Network Diagram

21MTSU

Define Phase - ToolsDefine Phase - Tools

• Project Charter• Stakeholder

Analysis• Affinity Diagram• SIPOC• Voice of the

Customer• CT Tree

• Kano Model• SWOT Analysis• Cause-and-Effect

Diagrams• Supplier

Segmentation • Project

Management

22MTSU

Measure Phase - ToolsMeasure Phase - Tools

• Data Collection Plan• Data Collect. Form• Frequency Plots• Gage R&R• Pareto charts• Prioritization matrix

• FMEA• Process Capability• Process Sigma• Sampling• Stratification• Time Series Plots

23MTSU

Analyze Phase - ToolsAnalyze Phase - Tools

• Affinity Diagrams• Brainstorming• Cause-and-Effect• Control Charts• Data Collect. Forms• Data Collection Plan• Design of

Experiments• Flow diagrams

• Frequency plots• Hypothesis tests• Pareto chart• Regression analysis• Response surface

meth.• Sampling• Scatter plots• Stratified frequency

plots

24MTSU

Improve Phase - ToolsImprove Phase - Tools

• Consensus• Brainstorming• Creativity

techniques• Data collection• Design of

Experiments• Flow diagrams

• FMEA• Hypothesis tests• Planning tools• Stakeholder

analysis

25MTSU

Improve Phase - ToolsImprove Phase - Tools

• Control chars• Data collection• Flow diagrams• Standardization

• Charts to compare before and after (frequency plots, Pareto charts, control charts)

• Quality Control Process Chart

26MTSU

2005 MBNQA Categories 2005 MBNQA Categories and Scoring Systemand Scoring System

1.0 Leadership 1202.0 Strategic Planning 853.0 Customer and Market Focus 854.0 Measurement, Analysis, and

Knowledge Management 905.0 Human Resource Focus 856.0 Process Management 857.0 Business Results 450TOTAL POINTS 1000

27MTSU

Methodology or Implementation?

I’d rather have a good plan, violently executed right now, than the

perfect plan three days from now.

General George S. PattonDecember, 1944

28MTSU

On the other hand, some plans are just bad.

29MTSU

What are the keys to success What are the keys to success in TQM implementation in in TQM implementation in

supply?supply?• Careful allocation of resources• Attention to communication and

coordination activities• Focus on people issues - obtaining

commitment and alignment• Finding the right measures• Others?