Total Quality Management and Cost of...
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In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2 nd ed.) Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010 Total Quality Management and Cost of Quality Evsevios Hadjicostas In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2 nd ed.) Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010 1 The International Quality movement Operator Quality Control Foreman (Supervisor) Quality Control Full-time Inspectors Statistical Quality Control Total Quality Control Total Quality Management
Transcript of Total Quality Management and Cost of...
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
Total Quality Managementand Cost of Quality
Evsevios Hadjicostas
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
1
The International Quality movement
Operator Quality ControlForeman (Supervisor) Quality ControlFull-time InspectorsStatistical Quality ControlTotal Quality ControlTotal Quality Management
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Total Quality Management
Total Quality Management (TQM) is a philosophy and involves company practices that aim to harness the human and material resources of an organization in the most effective way to achieve the objectives of the organization (BS 7850)
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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What is a Process?Any activity that accepts inputs, adds values to these inputs for customers, and produces outputs for these customers. The customer may be either internal or external to the organization
ProcessInputs Outputs
Controls
Resources
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Typical Process of TQM
Policy and strategy of the organization
MissionLeadership and commitmentDivisional objectives
Management of the organization
Organization structureManagement systemInformation systemCommunication
Improvement of the organization
Working environmentMeasurement of performanceImprovement objectivesImprovement plansMonitor and review
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Presentation Outline
Fundamental ConceptsImplementing Total Quality ManagementQuality ImprovementManaging for Quality ImprovementTools for Quality ImprovementQuality GurusCost of Quality
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Fundamental ConceptsCommitment to TQM
Commitment to TQM by the highest level of managementPromotion of this concept to all levels and activities of the organizationIndividual involvementDevotion to continuous improvement
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Fundamental ConceptsCustomer Satisfaction
Internal customersExternal customers
Customer needsCustomer expectations
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Fundamental ConceptsQuality Losses
Ineffective and inefficient utilization of human, financial and material resources in processesLoss of customer satisfactionLoss of opportunity to add more valueLoss due to waste or misuse of resources
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Fundamental ConceptsParticipation by All
Strengths and abilities of individualsEffective utilization of strengths and abilitiesCommunication and teamwork
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Fundamental ConceptsProcess Measurements
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Fundamental ConceptsContinuous Improvement
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Fundamental ConceptsProblem Identification
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Fundamental ConceptsAlignment of Corporate Objectives and Individual Attitudes
Appraisal and development of human resourceQuality improvement goals
Clear, understandable, specific, measurable, achievable, realistic, time-bound and agreed to by all relevant individuals.Focused on customer satisfactionIn line with overall business goals and mission
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Fundamental ConceptsPersonal AccountabilityPersonal Development
Responsibilities and authorities for all individualsJob descriptionsAppraisal, training and development of individuals at all levels
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Implementing Total Quality Management
Appropriate systems, improvement tools and techniquesApplication and coordination of the aboveOvercome resistance to change
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Implementing TQMOrganizational Structure
Incremental improvement of processesReview of the appropriateness of the organizational structure:
Laboratory management processesMethods of resource allocationAdministrative support processesHuman environmentTraining for all laboratory membersLaboratory processes and procedures
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Implementing TQMProcess Management Concept
Process owner and process customerResponsibilities of management and process owners:
Purpose of each processCustomers of each processNeeds and expectations of customersNeeds and expectations of the process ownersPerformance standards of processesMeasurement of process performanceImprovement opportunities
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Implementing TQMMeasurement of Performance
Monitoring the performance of all key functions and processesKey attributes:
cost, time, flexibility, and qualityIndicators of process efficiency
labour, capital and material utilization, scrap, screening, re-adjustment, waiting time, lost time, impracticable tolerances,excessive stock etc.
Measures of customer satisfactionCustomer surveys, surveys of competing products, routine inspections, customer complaints etc.
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Implementing TQMImprovement Planning Techniques
Planning quality improvementImplementing the planAnalyzing the resultsRe-planning
Inter-related improvement plansInvolvement of staff
PLAN
STUDY
DOACTION
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Implementing TQMTraining
Why trainingTo perform individual processTo be aware of the relationship with other processesTo understand the significance of our role and the part we play in customer satisfaction and business objectivesTo contribute to the continual improvement programs
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Implementing TQMTraining
Environment for quality improvementTraining to all laboratory personnel
Quality principles and practicesQuality improvement methods
Subjects for trainingManagement, technical, process, problem solving tools, communication, skills, organization, awareness etc
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Quality Improvement
Situations requiring improvementHigh quality costsCustomer complaintsHealth and safety considerations
Problem solving techniquesIdentify opportunities for improvement Apply to all areas of the business
Review priorities of improvement before action
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Quality ImprovementA Methodology for Quality Improvement
Involve the whole organizationInitiate quality improvement projects or activitiesInvestigate possible areas for improvementEstablish cause and effect relationshipTake improvement actionConfirm the improvementSustain the gains
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Quality ImprovementImprovement Process
IdentifyEvaluatePlan ExecuteCheckAmend
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Quality ImprovementProblem Solving Process
Identify subjects for improvementPrioritizeAnalyze causes of problemCollect data for analysisAssess alternative solutions for actionsSelect the optimum solution for action
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Quality ImprovementProblem Solving Process
Identifying the problemDescribing the problemAnalyzing the problemPlanning the solutionsImplementing the solutionsMonitoring/evaluating the solutions
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Managing for Quality ImprovementOrganizing for Quality Improvement
Responsibilities for quality improvementWithin the organizational hierarchy
Management processesWork processesMeasurement of the reduction of quality lossesAdministrative support processesBuilding of an environment for quality improvement
Within the processes that flow across organizational boundaries
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Managing for Quality ImprovementOrganizing for Quality Improvement
Responsibilities for quality improvementWithin the organizational hierarchyWithin the processes that flow across organizational boundaries
Definition of the purpose of each processCommunication among departmentsIdentification of internal and external customersDetermination of their needs and expectationsSearching process improvement opportunities
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Managing for Quality ImprovementPlanning for Quality Improvement
Set quality improvement goalsAddress the most important quality lossesInvolvement of everyoneInputs from all, from reviews, from suppliers from customersFocus on newly identified opportunities and where there is insufficient progressImplement quality improvement plans
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Managing for Quality ImprovementMeasuring Quality Improvement
Measure of quality lossesAssociated with customer satisfaction
Surveys of current and potential customersSurveys of competing products and servicesChanges in revenuesInspectionsCustomer complaints
Associated with process efficiencySustained by society
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Managing for Quality ImprovementMeasuring Quality Improvement
Measure of quality lossesAssociated with customer satisfactionAssociated with process efficiency
Labour, capital and material utilizationUnsatisfactory process outputWaiting timesDelivery performanceSize of inventories
Sustained by society
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Managing for Quality ImprovementMeasuring Quality Improvement
Measure of quality lossesAssociated with customer satisfactionAssociated with process efficiencySustained by society
Failure to realize human potential (surveys of employee satisfaction)Damage caused by pollution and disposal of waste and depletion of scarce resources
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Managing for Quality ImprovementMeasuring Quality Improvement
Statistical interpretation of trendsEstablish and meet numerical targetsMeasure and track trendsReport and review measuresMeasure the cost of measurement
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
34
Tools for Quality ImprovementData Collection Form
Establish the specific purpose of collecting this dataIdentify categories of informationFind factors that affect these categoriesDetermine how data will be analysedMultivote to reduce both listsConstruct a tabular formProvide a place for information about the origination of the data
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
35
Tools for Quality Improvement (Non-numerical data)
Affinity DiagramStart the issue in broad termsRecord individual response in small cardsMix the cards and spread them randomly on a large tableGroup related cards togetherTransfer the information onto paper outlined by grouping
Maintaining a successful C.I.
process
Understand Customer
Requirements
Provide Training
Establish Controls
Getting Management Committment
Improve Com-munications in
All Areas
Consult Customer
Interpret Customer
Requirements Correctly in
Specs&Design
Provide Operational Definition of
Output
Identify Customer
Know Quality Improvement
Tools
Investigate Other
Continuous Improvement
Efforts
Establish Measurement
System
Develop an Effective
Corrective Action System
Make Project by Project
Improvement
Determine Process
Capability
Define Process
Involve Middle Mgrs & Top
Mgrs. In Steering
Committee
Establish Consistent
Reward System
Provide Job Security,
Freedom to Fail
Provide Middle
Managers with Staff Support
Provide Clear Program
Goals
Provide the Time for
Middle Mgr. To Participate
Create a Steering
Committee with Real
Power
Grant Access to Information
Employee Involvement
Break Down Barriers
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Tools for Quality Improvement (Non-numerical data)
BenchmarkingDetermine what items to benchmarkDetermine who to benchmark (companies, organizations, competitors, etc.)Determine benchmark(collect data, surveys, interviews etc.)Determine the best-in-class for each benchmark item
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Tools for Quality Improvement (Non-numerical data)
BrainstormingThe steps
Generation phaseClarification phaseEvaluation phase
The rulesState the purposeUrge people to express ideasOffer one thought at a timeDo not criticize ideasDo not discuss ideasBuilt on other’s ideasRecord all ideas
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
38
Tools for Quality Improvement (Non-numerical data)
Cause and Effect DiagramDefine the problem (effect)Define the major categories of causes(materials, machines, methods, people, training, measurements etc.)Construct the diagramBrainstorm possible causesAnalyse each causeIdentify the root causesGather data to verify the root causes
ProblemCause 1
Cause 2
Categ. 1 Categ. 2
Categ. 3 Categ. 4
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
39
Tools for Quality Improvement (Non-numerical data)
FlowchartList the input to the process or activity
who supplies and who receives and what is done with this input
List the outputs from each process or activity
who receives this output and what happens next
Built the chart using the appropriate symbols and connect all processesReview the chart (correct duplication of processes, rework loops etc.)
ApproachCounter
Order Burger
WantFries?
WantDrink?
Order Fries
Order Drink
Pay Cashier
YES
YES
NO
NO
Ordering a BurgerStandard Process
Ordering a BurgerImproved Process
ApproachCounter
Order ComboMeal
Pay Cashier
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
40
Tools for Quality Improvement (Non-numerical data)
Tree Diagram
State the core issue problem or goalDefine major subcategories of the coreConstruct the diagramFor each subcategory define the component elements and sub-elementsReview the diagram to ensure that there are no obvious gaps in sequence or logic
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
41
Tools for Quality Improvement (Numerical data)
Control ChartsSelect the control chart typeRecord measurement data on the Y-axisPlot the groups of data (e.g. by date) on the X-axisCalculate the average and control limitsMark points of x-bar and control limits on the Y-axisPlot observations
concentration
upper action limit
upper warning limit
target value
lower warning limits
lower action limits
sample-# 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
42
Tools for Quality Improvement (Numerical data)
HistogramCollect data Arrange in ascending orderDetermine the range of the dataDetermine the width of each class interval (column)Put class interval in the X-axisPut frequency scale on the Y-axisDraw the height of each column
02468
1012141618
1 2 3 4 5 6 7 8 9 10 11 12
Class Series
Freq
uenc
y
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
43
Tools for Quality Improvement(Numerical data)
Pareto DiagramSelect the items to be analyzedSelect the unit of measure for analysisSelect the time period to be analyzedList the items in the order of decreasing magnitudeConstruct two vertical axes. The left scale should present the units of measures and the right one should be from 0% to 100%Draw a rectangle above each itemConstruct the the cumulative frequency lineIdentify the most important items
0
5
10
15
20
25
30
35
Causes
Freq
uenc
y
0%
20%
40%
60%
80%
100%
120%
few important many trivial
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
44
Tools for Quality Improvement (Numerical data)
Scatter Diagram
Collect paired dataGraduate x and y axesPlot the dataLabel the axesExamine the pattern
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
45
Quality Gurus
Philip B. CrosbyWilliam E. DemingJoseph M. Juran Armand V. FeigenbaumKauro IshikawaTom J. Peters
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
46
Quality GurusPhilip B. CrosbyThe four absolutes of Quality Management
1. Quality equals conformance to requirement2. Prevention causes quality3. Zero defects4. The measurement of quality is the price of
non-conformance
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
47
Quality GurusCrosby’s 14 Steps for Quality Improvement
1. Management Commitment
2. Quality Improvement Team
3. Measurement4. Cost of Quality5. Quality Awareness6. Corrective Action
7. Zero defects Planning
8. Employee education9. Zero defects day10. Goal Setting11. Error cause removal12. Recognition13. Quality Councils14. Do it all over again
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
48
Quality GurusWilliam E. Deming
PLAN
STUDY
DOACTION
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
49
Quality GurusWilliam Deming’s 14 Points
1. Constancy of purpose2. The new philosophy3. Cease dependence
upon inspection4. End “Lower tender”
contracts5. Improve every
process6. Institute training on
the job
7. Institute leadership8. Drive out fear9. Breakdown barriers10. Eliminate exhortation11. Eliminate targets12. Permit pride of
workmanship13. Encourage education14. Top management
commitment
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
50
Quality GurusKauro Ishikawa
Involvement of all employees in decision makingQuality CirclesExtensive use of statistics and Quality Control
ProblemCause 1
Cause 2
Categ. 1 Categ. 2
Categ. 3 Categ. 4
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
51
Quality GurusJoseph M. Juran
Quality PlanningQuality ImprovementQuality Control
0
20
40
Time
Cost
of Q
ualit
y
Quality Control During OperationQuality Planning
Ope
ratio
nsB
egin
Quality improvement
Chronic Waste(an opportunity for
improvement)
Original Zone ofQuality Control
New Zone ofQuality Control
Sporadic spike
LessonsLearned
Illustration of Quality Trilogy via a Control Chart
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
52
Quality GurusJoseph M. Juran
CUSTOMERSPRODUCT DEVELOPMENT
OPERATIONS
MARKETING
CUSTOMERS
FURTHERPRODUCT DEVELOPMENT
ETC
The Quality Spiral
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
53
Cost of Quality
Measurement of the effect of qualityManagement of processesInvolvement of all individuals to the processesProcess ownerCost of conformanceCost of non conformance
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
54
Cost of Quality
Costs of controlprevention costs
The cost of training people, organizing business etc.
appraisal costsQuality control (analyzing, testing, measuring etc.)
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Cost of QualityCosts of failure of control
internal defect costsWaste, scrap, reworkPoor design, poor R&D, poor manufacturing work
external defect costsLoss of customers, loss of good will, loss of sales
Lost opportunity cost
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Minimizing the Costs of Quality
Defect Rate
Cos
ts p
er G
ood
Uni
t of P
rodu
ct
100%Defective
100%Good
Optimum Conformance
Level
Cost of Appraisal and Prevention
Internal and External Failure
Costs
Total Quality Costs
Minimum Costs of Quality
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
57
Cost of QualityThe Seven Sources of Waste
OverproductionDefective productsWaiting lines and delaysStocks of intermediaries/semi-finished productsTransportationIneffective proceduresIneffective movements or actions
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
58
Cost of QualityThe Seven Sources of Wastes
Overproduction
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
59
Cost of QualityThe Seven Sources of Wastes
Defective products
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
60
Cost of QualityThe Seven Sources of Wastes
Waiting linesand delays
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
61
Cost of QualityThe Seven Sources of Wastes
Stocks of intermediary/semi-finished products
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
62
Cost of QualityThe Seven Sources of Wastes
Transportation
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
63
Cost of QualityThe Seven Sources of Wastes
Ineffective procedures
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
64
Cost of QualityThe Seven Sources of Wastes
Ineffective movementsor actions
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
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Summary
Applied philosophyManagement commitmentAchievement of excellenceManagement of changeContinual improvementOpportunities for improvementTools for improvement
In: Wenclawiak, Koch, Hadjicostas (eds.) Quality Assurance in Analytical Chemistry – Training and Teaching (2nd ed.)
Hadjicostas, E.: Total Quality Management and Cost of Quality © Springer-Verlag, Berlin Heidelberg 2010
66
Where to Get More Informationhttp://www.philipcrosby.comhttp://www.isixsigma.comhttp://www.deming.org/http://www.juran.com/BS 7850-1:1992 Total Quality Management, Part 1: Guide to management principlesBS 7850-2:1994 Total Quality Management, Part 2: Guide to quality improvement methodsBS 6143-1:1992 Guide to the economics of Quality. Part 1: Process cost modelBS 6143-2:1990 Guide to the economics of Quality. Part 1: Prevention, appraisal and failure model
