om sessions 17-18
TRANSCRIPT
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Defining Quality and TQM, Malcolm Bal ridge
and Deming Awards, Concepts of TQM, SPC andControl Charts Mean, R, p, c Charts
Chapter V:
Managing Quality
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DEFINING QUALITY
The totality of features and characteristics of a product or service that bears on its ability
to satisfy stated or implied needs.- American Society for Quality
Sales Gains Via
Improved response
Higher Prices
Improved reputation
Reduced Costs Via
Increased productivity
Lower rework and scrap costs
Lower warranty costs
Increased ProfitsImproved Quality
The Operations Managers objective is build a total quality management system that identifies
and satisfies customer needs.
Two Ways in which Quality Improves Profitability
http://asq.org/
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Leaders in the Field of Quality Management
Leader Philosophy / Contribution
W. Edwards DemingInsisted on management accept responsibility for building good
systems. Developed 14 points
Joseph M. Juran Believes in top management commitment, support and involvementin the quality effort. Emphasized Quality as Fitness for Use
Armand Feigengaum Laid 40 steps to quality improvement process
Philip B. CrosbyWrote a book titled , Quality is Free. Coined the term Zero
Defects
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Organizational Practices:
Leadership, Mission Statement, Effective
operating procedures, Staff Report, Training
Flow of Activities Necessary to Achieve Total Quality Management
Quality Principles:
Customer Focus, Continuous Improvement,
Benchmarking, Just-in-Time, Tools of TQM
Employee Fulfillment:
Empowerment, Organizational commitment
Customer Satisfaction:
Winning orders, Repeat Customers
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Different Perspectives of Quality
Perspective View on Quality
User based Quality lies in the eyes of beholder
Production Managers basedConforming to standards and making it right the first
time
Product based Quality is a precise and measurable variable
Implication Details
Company Reputation New Products, Employment practices, supplier relations
Product liability Consumer Product Safety Acts and their role
Global Implications Competitive advantage globally
Implications of Quality
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Established in 1988 by the U.S. government
Designed to promote TQM practices
Some criteria
Senior executive leadership; strategic planning; management. of
process quality
Quality results; customer satisfaction
Recent winners
Corning Inc.; GTE; AT&T; Eastman Chemical.
Malcom Baldrige National Quality Award
http://www.nist.gov/baldrige/ http://www.nist.gov/public_affairs/factsheet/mbnqa.cfm
http://www.baldrige.nist.gov/Contacts_Profiles.htm
Winners - 2009
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Malcom Baldrige National Quality Award
Baldrige Award is based on,
SEVEN Criteria categories that
cover everything important in a
Management System:
Leadership
Strategic Planning
Customer Focus
Measurement, Analysis and
Knowledge Management
Workforce Focus
Process Management
Results
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Baldrige Award Criteria Framework
Leadership90 pts
DRIVER
Management of
140 pts.
SYSTEM
quality assurancesystem
Human resource
development and
management
Strategic quality
planning
Quality information
benchmarks and
analysis
150 pts.
60 pts.
60 pts.
Customer satisfaction
300 pts.
Customer satisfactionrelative to competitors
Customer retention
Market share gain
GOAL
Product & service quality
180 pts.
Productivity improvement
Waste reduction/
elimination
Supplier performance
MEASURES OF PROGRESS
Financial results
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International Quality Standards
Industrial Standard Z8101-1981 (Japan) Specification for TQM
ISO 9000 series (Europe/EC)
Common quality standards for products
sold in Europe (even if made in U.S.)
ISO 14000 series (Europe/EC) Standards for recycling, labeling etc.
ASQC Q90 series; MILSTD (U.S.)
ISO 9000 is a set of quality standards developed by the International Organization
for Standardization (ISO)
91 countries in 1987 published a series of quality assurance standards known asISO 9000
ISO revised its standards in 2000 into ISO 9001: 2000 with some modifications.
http://www.iso.org/iso/home.html /
Environmental Standard ISO 14000
Core Elements:
Environmental management
Auditing
Performance evaluation
Labeling
Life-cycle assessment
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TraditionalQuality Process (Manufacturing)
Specifies
Need
Customer
Interprets
Need
Marketing
Designs
Product
Defines
Quality
Engineering
Produces
Product
Plans
Quality
MonitorsQuality
Operations
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Total Quality Management (TQM)
Management of an entire organization from Supplier to Customer so that it excels in all
aspects of products and services that are important to customer.
Stresses a commitment by management to have a continuing company-wide drive toward
excellence in all aspects of products and services that are important to the customer.
Organizational Practices
Quality Principles
EmployeeFulfillment
Attitudes
(e.g., Commitment)
How to Do
What to Do
Effective
Business
Customer
Satisfaction
Achieving Total Quality Management
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Demings Fourteen Points
1. Create consistency of purpose
2. Lead to promote change
3. Build quality into the products
4. Build long term relationships
5. Continuously improve product, quality, and service
6. Start training
7. Emphasize leadership8. Drive out fear
9. Break down barriers between departments
10. Stop haranguing workers
11. Support, help, improve
12. Remove barriers to pride in work
13. Institute a vigorous program of education and self-improvement
14. Put everybody in the company to work on the transformation
http://deming.org/index.cfm?content=52
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The Seven concepts of TQM
1. Continuous
Improvement
2. Six Sigma
3. Employee
Empowerment4. Benchmarking
5. Just In Time
(JIT)
6. Taguchi Concepts
(Quality Loss
Function)
7. TQM Tools
Continuous improvement Also known as Kaizenin
Japanese Language uses PDCA (Plan, Do, Check and Act)
model.
Six SigmaPopularized by Motorola, Honeywell and GE. Its aStatistical tool to measure accuracy. It requires the accuracy of 3.4
defects per million i.e. 99.9997% accuracy.
DMAICapproach in Six Sigma reduces defects to help lower
costs, save time and improve customer satisfaction
Employee empowermentInvolving employees in every step ofthe production process.
Building communication networks that include employees
Developing Open, Supportive supervisors
Moving responsibility from both managers and staff to
production employees
Building high-morale organizations
Creating organizations which have teams and Quality Circles
(QCs)
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Concepts of TQM
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Concepts of TQM
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Concepts of TQM Contd.
Benchmarking - Selecting a demonstrated standard of products, services, costs,or practices that represent the very best performance for processes or activities
very similar to your own organization.
Determine what to benchmark?
Form a benchmark team
Identify benchmarking partners
Collect and analyze benchmarking information
Take action to match or exceed the benchmark
Just-in-time (JIT) JIT systems are designed to produce or deliver goods just as
they are needed. JIT is related to quality in THREE ways.
JIT cuts the cost of quality
JIT improves quality
Better quality means less inventory and a better, easier-to-employ JIT system
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Seven Tools of TQM
Check Sheets
Scatter Diagrams
Cause and Effect Diagram (Ishikawa
Fish bone diagram)
Pareto Chart Flow Chart of Process Diagram
Histogram
Statistical Processs Control (SPC) -Control Charts
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Tools of TQM
Check Sheets Cause and Effect Diagram (Ishikawa)
T l f TQM
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Tools of TQM
Pareto
Chart
SALES
INVESTMENT
Process Diagram OR Flow DiagramScatter Diagram
i i l l ( )
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Statistical Process Control (SPC)
SPC is a statistical technique that is widely used to ensure that processes meet standards.
Walter Shewhart of Bell Laboratories developed two types of causes for variations ordeviations from standards
Natural Causes Deviations occurred due to natural causes inspite of everything undercontrol. Parameters used are Mean and SD. As long as the distribution remains with a
specified limits, the process is said to be undercontrol
Assignable Causes- Deviations that occur due to machine wear and tear, misadjustedequipment, fatigued or untrained workers, or new batches of raw material etc.
A process is said to be operating in statistical control when the only source of variation is
common (Natural) causes.
Objective ofprocess control system is toprovide a statistical signalwhen assignable causes ofvariation are present.
S i i l P C l (SPC)
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Statistical Process Control (SPC)
Control Charts A powerful tool to distinguish between Natural causes and
Assignable causes. They are useful for deciding the UCL and LCL of a particular
process.
Control Charts for Variables - Measured on a continuous scale (Mean Chart andR
(Range) Chart)
Control Charts for Attributes
Those that measure the percent defects in a sample are called as PChart
Those that count the number of defects called as CChart
St ti ti l P C t l St
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Produce Good
Provide Service
Stop Process
Yes
No
Assign.
Causes?Take Sample
Inspect Sample
Find Out WhyCreate
Control Chart
Start
Statistical Process Control Steps
Control Charts for Variables x bar Chart and R Charts
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Control Charts for Variables x bar Chart and R Charts
Control Charts for Attributes P Chart and C Charts
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Control Charts for Attributes P Chart and C Charts
P C t l Ch t
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Process Control Chart
Plot of Sample Data Over Time
0
20
40
60
80
1 5 9 13 17 21
Time
Sample
Value Sample
ValueUCL
Average
LCL
http://www.statsoft.com/textbook/quality-control-charts/
Patterns to Look for in Control Charts
http://www.statsoft.com/textbook/quality-control-charts/http://www.statsoft.com/textbook/quality-control-charts/http://www.statsoft.com/textbook/quality-control-charts/http://www.statsoft.com/textbook/quality-control-charts/http://www.statsoft.com/textbook/quality-control-charts/http://www.statsoft.com/textbook/quality-control-charts/ -
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Patterns to Look for in Control Charts
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Thank you