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2
Objectives
By the end of this session, student will be able to: – Assess the importance of quality– Understand the history and the development of quality
management– Understand the various definitions of quality– Understand how quality promotes strategic objectives– Understand the principles of TQM– Be able to implement TQM – Understand need to promote continuous improvement
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Topics
• History of quality management
• Zero defects/TQM/Six Sigma
• JIT
• House of Quality
• Taguchi – robustness
• Taguchi – fish-bone diagram
• Quality in service industries
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Ways in Which Quality Can Improve Productivity
Market Gains– Improved response– Economies of Scale– Improved reputation
Reduced Costs– Increased productivity– Lower rework and scrap
costs– Lower warranty costs
Increased Profits
Improved Quality
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Traditional Quality Process (Manufacturing)
Specifies
Need
Customer
Interprets
Need
Marketing
DesignsProduct
DefinesQuality
Engineering
ProducesProduct
MonitorsQuality
Operations
Who should define quality?
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The Quality Gurus• W Edwards Deming (1950s)
– workers must know what quality work is and be given the means to achieve it – use of statistical techniques
• Joseph Juran (1960s – 1970s) – ‘cost of quality’. Quality = ‘fitness for purpose’. As defects decrease cost increases so zero defects is impossible
• Philip B Crosby (1980s) – Quality = ‘conformance to requirements’. As quality improves, costs fall. So, “Quality is free!”
• Kaoru Ishikawa (1960s)- Company wide quality. Quality circles.
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Deming’s Fourteen Points
1. Create consistency of purpose2. Lead to promote change3. Build quality into the products4. Build long term relationships5. Continuously improve product, quality, and
service6. Start training7. Emphasize leadership
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Deming’s Points – cont.
8. Drive out fear9. Break down barriers between departments10. Stop haranguing workers11. Support, help, improve12. Remove barriers to pride in work13. Institute a vigorous program of education
and self-improvement14. Put everybody to work on the
transformation
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TQM
• Encompasses entire organization, from supplier 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.
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Flow of Activities Necessary to Achieve TQM
Organizational Practices
Quality Principles
Employee Fulfillment
Customer Satisfaction
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Organizational Practices
• Leadership
• Mission statement
• Effective operating procedure
• Staff support
• Training
Yields: What is important and what is to be accomplished
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Quality Principles
• Customer focus• Continuous improvement• Employee empowerment• Benchmarking• Just-in-time• Tools of TQM
Yields: How to do what is important and to be accomplished
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Organizational Practices
Quality Principles
Employee Fulfillment
Attitudes (e.g., Commitment)
How to Do
What to Do
EffectiveBusiness
EffectiveBusiness
CustomerSatisfaction
CustomerSatisfaction
Achieving Total Quality Management
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Concepts of TQM
• Continuous improvement
• Employee empowerment
• Benchmarking
• Just-in-time (JIT)
• Knowledge of tools
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Continuous Improvement
• Represents continual improvement of process & customer satisfaction
• Involves all operations & work units
• Other names– Kaizen (Japanese)– Zero-defects– Six Sigma
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Employee Empowerment
© 1995 Corel Corp.
• Getting employees involved in product & process improvements– 85% of quality problems are due to process &
material
• Techniques– Support workers– Let workers make decisions– Build teams & quality circles
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• Group of 6-12 employees from same work area
• Meet regularly to solve work-related problems– 4 hours/month
• Facilitator trains & helps with meetings
Quality Circles
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Benchmarking
Selecting best practices to use as a standard for performance
• Determine what to benchmark
• Form a benchmark team
• Identify benchmarking partners
• Collect and analyze benchmarking information
• Take action to match or exceed the benchmark
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Six Sigma
• Pioneered by Bill Smith at Motorola in 1986 • Aims to reduce defect levels below 3.4 Defects
Per (one) Million Opportunities (DPMO) • DMAIC - used to improve an existing business
process• DMADV - used to create new product designs or
process designs for more predictable, mature and defect free performance
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Just-in-Time (JIT)
Relationship to quality:– JIT cuts cost of quality– JIT improves quality– Better quality means less inventory and
better, easier-to-employ JIT system
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Just-in-Time (JIT)
• ‘Pull’ system of production/purchasing– Customer starts production with an order
• Involves ‘vendor partnership programs’ to improve quality of purchased items
• Reduces all inventory levels– Inventory hides process & material problems
• Improves process & product quality
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Just-In-Time (JIT) Example
Scrap
Work in process inventory levelWork in process inventory level(hides problems)(hides problems)
Unreliable Vendors
Capacity Imbalances
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Just-In-Time (JIT) Example
Scrap
Reducing inventory revealsproblems so they can be solved.
Unreliable Vendors
Capacity Imbalances
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Quality Function Deployment(QFD)
• Determines what will satisfy the customer
• Translates customer preferences into specific product characteristics
• Product design process using cross-functional teamseg. marketing/engineering/manufacturing
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House of Quality
• House of Quality is a QFD technique
• Involves creating 4 tabular ‘Matrices’ or ‘Houses’- breaks down product design into increasing levels of detail
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To Build House of Quality
• Identify customer wants• Identify how the good/service will satisfy
customer wants.• Relate the customer’s wants to the
product’s hows.• Identify relationships between the firm’s
hows.• Develop importance ratings• Evaluate competing products
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House of Quality Sequence
DesignCharacteristics
Quality Plan
ProductionProcess
SpecificComponents
Des
ign
Cha
ract
eris
tics
Spe
cific
Com
pon
ents
Pro
duc
tion
Pro
cess
Cus
tom
erR
equi
rem
ents
House2
House1
House3
House4
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Taguchi Techniques
• Experimental design methods to improve product & process design– Identify key component & process variables
affecting product variation
• Taguchi Concepts– Quality robustness– Quality loss function– Target specifications
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• Ability to produce products uniformly regardless of manufacturing conditions
• Robustness is more a function of design than control of manufacture
• Put robustness in House of Quality matrices besides functionality
• Quality losses result mainly from product failure after sale
© 1984-1994 T/Maker Co.
© 1995 Corel Corp.
Quality Robustness
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• Used to find problem sources/solutions
• Other names– Fish-bone diagram, Ishikawa diagram
• Steps– Identify problem to correct– Draw main causes for problem as ‘bones’– Ask ‘What could have caused problems in
these areas?’ Repeat for each sub-area.
Cause and Effect Diagram
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Method Manpower
Material Machinery
Too many defects
Main Cause
Main Cause
Cause and Effect Diagram Example
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Method Manpower
Material Machinery
DrillOverOverTimeTime
Steel
Wood
Lathe
Too many defects
Sub-Cause
Cause and Effect Diagram Example
35
Method Manpower
Material
Machinery
DrillOverTime
Steel
Wood
Lathe
Too many defects
Tired
Old
Slow
Cause and Effect Diagram Example
36
• Service quality perceptions depend on comparison of expectations with reality
• Perception of service quality derived from process as well as outcome
• Types of service quality– Normal: Routine service delivery– Exceptional: How problems are handled
TQM In Services