Transcript Chapter 20 Powerpoint slides

Chapter 20
Managing
improvement –
the TQM
approach
Source: Corbis/Munshi Ahmed
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
The quality gurus
Philip Crosby
Quality is free –
the optimum is zero defects
W. Edwards Deming
Deming’s 14 points
How to use statistics
Armand Feigenbaum
Total quality control
Kaoru Ishikawa
Quality circles and cause-and-effect
diagrams
Joseph Juran
Quality as fitness for use, rather than
conformance to specification
Genichi Taguchi
Loss function
Minimize variation
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Total quality management can be viewed as a natural extension
of earlier approaches to quality management
•Quality is strategic
•Teamwork
•Staff empowerment
•Involves customers and suppliers
Makes quality central
and strategic in the
organization
•Quality systems
•Quality costing
•Problem solving
•Quality planning
Broadens the
organizational responsibility
for quality
Solves the root
cause of quality
problems
Prevents ‘out of
specification’ products and
services reaching market
•Statistics
•Process analysis
•Quality standards
•Error detection
•Rectification
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Total Quality Management
Includes all parts of the organization
Includes all staff of the organization
Source: Corbis/Richard T Nowitz
Includes consideration of all costs
Includes every opportunity to get things right
Includes all the systems that affect quality
Never stops
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
The cost of rectifying errors increases more rapidly the longer
they remain uncorrected in the development and launch process
Cost of rectifying error
10000
1000
100
10
1
Concept
Design
Prototype
Pilot
Market use
production
Stage in development and launch process
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Increasing the effort spent on preventing errors occurring
in the first place brings a more than equivalent reduction
in other cost categories
Total cost of quality
Costs of quality
Appraisal
Internal failure
Appraisal
Prevention
Time
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Effectiveness of the TQM initiative
The pattern of some TQM programmes
which run out of enthusiasm
Introduction
Growth
Levelling off
Learning and
understanding
Increasing
enthusiasm
Starting to hit
the more difficult
problems
Disillusionment
Waning
enthusiasm
Repackaging
Attempts to
revitalize the
programme
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Changing Quality Assumptions
Reactive
Proactive
Inspection
Prevention
AQL
ZD
Blame placing
Problem solving
Quality cost more
Quality cost less
Quality is technical
Quality is managerial
Schedule first
Quality first
Defects hidden
Defects highlighted
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007