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8/8/2019 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