tamu 05 total quality mgmt

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    Chapter 5 - Total QualityManagement

    I've learned....

    That when you harbor bitterness,

    happiness will dock elsewhere.

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    Learning Objectives Explain the meaning ofTQM Identify the costs of Quality

    Describe the evolution of TQM Identify Quality leaders and their

    contributions Identify key features of the TQM philosophy

    Describe tools identifying and solving qualityproblems Describe quality awards and quality

    certifications

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    What is TQM? Meeting quality expectations as defined

    by the customer

    Integrated organizational effortdesigned to improve quality ofprocesses at every business level

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    TQM Philosophy TQM Focuses on identifying quality problem root

    causes Encompasses the entire organization Involves the technical as well as people Relies on seven basic concepts of

    Customer focus Continuous improvement

    Employee empowerment Use of quality tools Product design Process management Managing supplier quality

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    TQM Philosophy Whats Different?

    Focus on Customer Identify and meet customer needs

    Stay tuned to changing needs, e.g. fashionstyles

    Continuous Improvement

    Continuous learning and problem solving,e.g. Kaizen, 6 sigma

    Employee Empowerment Empower all employees; external and

    internal customers

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    TQM Philosophy Whats Different?

    (continued)

    Understanding Quality Tools Ongoing training on analysis, assessment, and

    correction, & implementation tools

    Team Approach

    Teams formed around processes 8 to 10 people

    Meet weekly to analyze and solve problems

    Benchmarking

    Studying practices at best in class companies

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    Defining Quality Definition of quality is dependent on the

    people defining it

    There is a lack of a single, universal definitionof quality 5 common definitions include

    Conformance to specifications Fitness for use Value for price paid Support services Psychological criteria

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    Defining Quality 5Ways Conformance to specifications

    Does product/service meet targets and tolerances defined bydesigners?

    Fitness for use Evaluates performance for intended use

    Value for price paid Evaluation of usefulness vs. price paid

    Support services Quality of support after sale

    Psychological e.g. Ambiance, prestige, friendly staff

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    Four Dimensions of Quality Quality of design

    Determining which features to include in the final

    design

    Quality of conformance to design

    Production processes are set up to meet designspecifications

    Ease of use Instructions, operation, maintenance, safety

    Post-sale service

    Responsiveness, rapid repair, p.m., spare parts

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    Manufacturing Quality vs.

    Service Quality Manufacturing quality focuses on

    tangible product features Conformance, performance, reliability, features

    Service organizations produce intangibleproducts that must be experienced Quality often defined by perceptional factors like

    courtesy, friendliness, promptness, waiting time,consistency

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    Cost of Quality Quality affects all aspects of the organization

    Quality has dramatic cost implications of;

    Quality control costs Prevention costs

    Appraisal costs

    Quality failure costs

    Internal failure costs External failure costs

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    Cost of Quality 4 Categories

    Early detection/prevention is less costly

    May be less by a factor of 10

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    Evolution of TQM New Focus

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    Quality Gurus

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    Ways of Improving Quality Plan-Do-Study-Act Cycle (PDSA)

    Also called the Deming Wheel after originator

    Circular, never ending problem solving process

    Seven Tools of Quality Control

    Tools typically taught to problem solving teams

    Quality Function Deployment Used to translate customer preferences to design

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    PDSA Details Plan

    Evaluate current process

    Collect procedures, data, identify problems Develop an improvement plan, performance

    objectives

    Do Implement the plan trial basis

    Study Collect data and evaluate against objectives

    Act Communicate the results from trial

    If successful, implement new process

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    PDSA (continued)

    Cycle is repeated

    After act phase, start planning and repeat process

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    Seven Tools of Quality Control Cause-and-Effect Diagrams

    Flowcharts Checklists

    Control Charts

    Scatter Diagrams Pareto Analysis

    Histograms

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    Cause-and-Effect Diagrams Called Fishbone Diagram

    Focused on solving identified quality problem

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    Flowcharts Used to document the detailed steps in a

    process

    Often the first step in Process Re-Engineering

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    Checklist Simple data check-off sheet designed to

    identify type of quality problems at each workstation; per shift, per machine, per operator

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    Control Charts Important tool used in Statistical Process

    Control Chapter 6

    The UCL and LCL are calculated limits used toshow when process is in or out of control

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    Scatter Diagrams A graph that shows how two variables are

    related to one another

    Data can be used in a regression analysis toestablish equation for the relationship

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    Pareto Analysis Technique that displays the degree of importance for each

    element

    Named after the 19th century Italian economist

    Often called the 80-20 Rule

    Principle is that quality problems are the result of only a few

    problems e.g. 80% of the problems caused by 20% of causes

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    Histograms A chart that shows the frequency distribution of

    observed values of a variable like service timeat a bank drive-up window

    Displays whether the distribution is symmetrical(normal) or skewed

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    Product Design - Quality

    Function Deployment Critical to ensure product design meets customer

    expectations Useful tool for translating customer specifications into

    technical requirements is Quality FunctionDeployment (QFD)

    QFD encompasses Customer requirements Competitive evaluation

    Product characteristics Relationship matrix Trade-off matrix Setting Targets

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    QFD Details Process used to ensure that the product meets customer

    specifications

    Voiceof the

    customer

    Customer-basedbenchmarks

    Voice of theengineer

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    QFD - House of Quality Adding trade-offs, targets & developing product

    specifications

    Trade-offs

    Targets

    TechnicalBenchmarks

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    Reliability critical to quality Reliability is the probability that the

    product, service or part will function as

    expected

    No product is 100% certain to functionproperly

    Reliability is a probability functiondependent on sub-parts or components

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    Reliability critical to quality Reliability of a system is the product of

    component reliabilities

    RS = (R1) (R2) (R3) . . . (Rn)RS = reliability of the product or system

    R1 = reliability of the components

    Increase reliability by placingcomponents in parallel

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    Reliability critical to quality Increase reliability by placing

    components in parallel

    Parallel components allow system tooperate if one or the other fails

    RS = R1 + (R2* Probability of needing 2nd

    component)

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    Process Management Quality products come from quality

    sources

    Quality must be built into the process Quality at the source is belief that it is

    better to uncover source of quality

    problems and correct it TQM extends to quality of product from

    companys suppliers

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    Quality Awards and Standards Malcolm Baldrige National Quality

    Award

    The Deming Prize

    ISO 9000 Certification

    ISO 14000 Standards

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    MBNQA- What Is It? Award named after the former Secretary of

    Commerce Regan Administration

    Intended to reward and stimulate qualityinitiatives

    Given to no more that two companies in eachof three categories; manufacturing, service,

    and small business Past winners; FedEx, 3M, IBM, Ritz-Carlton

    Typical winners have scored around 700points

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    The Deming Prize Given by the Union of Japanese Scientists and

    Engineers since 1951

    Named after W. Edwards Deming who worked

    to improve Japanese quality after WWII

    Not open to foreign companies until 1984

    Florida P & L was first US company winner

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    ISO Standards ISO 9000 Standards:

    Certification developed by InternationalOrganization for Standardization

    Set of internationally recognized quality standards Companies are periodically audited & certified ISO 9000:2000 QMS Fundamentals and

    Standards

    ISO9001:

    2000 QMS

    Requirements

    ISO 9004:2000 QMS - Guidelines for Performance More than 40,000 companies have been certified

    ISO 14000: Focuses on a companys environmental

    responsibility

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    Why TQM Efforts Fail Lack of a genuine quality culture

    Lack of top management support andcommitment

    Over- and under-reliance on SPCmethods

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    TQM Within OM TQM is broad sweeping organizational change

    TQM impacts Marketing providing key inputs of customer information

    Finance evaluating and monitoring financial impact

    Accounting provides exact costing

    Engineering translate customer requirements into specificengineering terms

    Purchasing acquiring materials to support product

    development Human Resources hire employees with skills necessary

    Information systems increased need for accessibleinformation

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    Chapter 5 Highlights TQM focuses on serving the customers quality needs

    TQM uses continuous improvement, quality at thesource, employee empowerment, quality tools, teams,benchmarking, and supplier certification

    Four dimensions: product/service design, conformance,easy of use, post-sale support

    Quality costs; prevention, appraisal, internal & external

    failures QFD and Seven Quality Tools used in managing quality

    The MBNQA, Deming Prize, and ISO Certification helpfocus on quality improvement and excellence

    The seven Quality Gurus all made key contributions