TAMU 05 Total Quality Mgmt

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

TAMU 05 Total Quality Mgmt

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