Chap. 3: Total Quality Management
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Transcript Chap. 3: Total Quality Management
© 1997 Prentice-Hall, Inc.
Principles of
Operations Management
Total Quality Management
Chapter 3
3-1
Learning Objectives
© 1997 Prentice-Hall, Inc.
Define quality
State why quality is important
Explain total quality management (TQM)
Explain tools for total quality
management
Describe inspection
3-2
Definitions of Quality
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ASQC: Product characteristics &
features that affect customer
satisfaction
User-Based: What consumer says it is
Mfg.-Based: Degree to which a product
conforms to design specification
Product-Based: Level of measurable
product characteristic
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Dimensions of Quality for
Goods
Operation
Reliability & durability
Conformance
Serviceability
Appearance
Perceived quality
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Quality
Importance of Quality
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Costs & market
share
Company’s
reputation
Product
liability
Improved
Improved
Quality
Quality
International
implications
3-5
Market
Market Gains
Gains
Reputation
Reputation
Volume
Volume
Price
Price
Increased
Increased
Profits
Profits
Lower
Lower Costs
Costs
Productivity
Productivity
Rework/Scrap
Rework/Scrap
Warranty
Warranty
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Industrial Standard Z8101-1981 (Japan)
Common quality standards for products
sold in Europe (even if made in U.S.)
ISO 14000 series (Europe/EC)
Specification for TQM
ISO 9000 series (Europe/EC)
International
Quality Standards
Standards for recycling, labeling etc.
ASQC Q90 series; MILSTD (U.S.)
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Malcolm Baldrige National
Quality Award
Established in 1988 by the U.S. gov’t
Designed to promote TQM practices
Some criteria
Senior executive leadership; strategic
planning; mgt. of process quality
Quality results; customer satisfaction
Recent winners
Corning Inc.; GTE; AT&T; Eastman Chem.
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Traditional
Quality Process (Mfg.)
Customer
Marketing
Engineering
Operations
Specifies
Need
Interprets
Need
Designs
Product
Produces
Product
Defines
Quality
Plans
Quality
Quality is customer driven!
3-8
Monitors
Quality
Total Quality Management
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Quality system involving entire
organization from supplier to customer
Objective: Meet or exceed customer
needs through company-wide
continuous improvement
Early proponents
W. Edwards Deming
J. M. Juran
Philip B. Crosby
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Total Quality Management
Principles
Continuous improvement
Employee empowerment
Benchmarking
Just-in-time (JIT)
Knowledge of TQM tools
© 1995 Corel Corp.
3 - 10
Continuous Improvement
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Represents continual improvement
of process & customer satisfaction
Involves all operations
& work units
Other names
Kaizen (Japanese)
Zero-defects
Six sigma
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© 1984-1994 T/Maker Co.
Employee Empowerment
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Getting employees involved in
product & process improvements
85% of quality problems are due to
process & material
© 1995 Corel Corp.
Techniques
Talk to workers
Support workers
Let workers make decisions
Build teams & quality circles
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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
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© 1995 Corel Corp.
Benchmarking
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Selecting best practices to use
as a standard for performance
Steps
Determine what to
benchmark
Form benchmarking team
Identify benchmarking partners
Collect benchmarking information
Take action to meet or exceed benchmark
3 - 14
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Benchmarking
Thinking Challenge
What specific & measurable variables
would you benchmark in these areas?
Accounting
Hotel front desk
Data processing
Marketing
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Alone
Group Class
Just-In-Time (JIT)
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‘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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TQM Tools
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Quality function deployment (QFD)
Pareto charts
Process charts
Cause & effect diagrams
Statistical process control (SPC)
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Quality Function
Deployment (QFD)
Product design process using
cross-functional teams
Marketing, engineering, manufacturing
Translates customer preferences into
specific product characteristics
Involves creating 4 tabular ‘Matrices’
or ‘Houses’
Breakdown product design into
increasing levels of detail
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House of
Quality 1
Quality Function
Deployment Sequence
Product
Char.
Customer
Req.
House of
Quality 3
Component
Spec.
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House of
Quality 2
Component
Spec.
Product
Char.
Production
Process
House of
Quality 4
Production
Process
Quality
Plan
House of Quality Example
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You’ve been assigned
temporarily to a QFD
team. The goal of the
team is to develop a
new camera design.
Build a House of
Quality.
© 1984-1994 T/Maker Co.
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House of Quality Example
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Cust.
Req.
Cust.
Importance
Target Values
High relationship Medium relationship
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Pareto Chart
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Vertical bar chart showing relative
importance of problems or defects
Makes identifying & solving them easier
Based on Pareto Principle
Most effects have relatively few causes
e.g., 80% of quality problems come from
20% of machines, materials, or operators
Focus on ‘vital few’ 20% causes
Called 80-20 rule
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Pareto Chart
Thinking Challenge
You’re a quality analyst
for Corning Glass.
You’ve collected data on
100 rejected glasses:
Nicks
80
Cuts
11
Scratches
3
Porosity
3
Misc.
3
Prepare a Pareto Chart.
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Alone
Group Class
Process Chart
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Shows sequence of events in process
Depicts activity relationships
Has many uses
Identify data collection points
Find problem sources
Identify places for improvement
Identify where travel distances can be
reduced
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Process Chart Example
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SUBJECT: Request tool purchase
Dist (ft) Time (min) Symbol
Description
D Write order
On desk
D To buyer
75
D Examine
= Operation; = Transport; = Inspect;
D = Delay; = Storage
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Cause & Effect Diagram
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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.
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Statistical
Process Control (SPC)
Uses statistics & control charts to tell
when to adjust process
Developed by Shewhart in 1920’s
Involves
Creating standards (upper & lower limits)
Measuring sample output (e.g. mean wgt.)
Taking corrective action (if necessary)
Done while product is being produced
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Statistical Process Control
Steps
Start
Produce Good
Provide Service
Take Sample
No
Assign.
Causes?
Yes
Inspect Sample
Create
Control Chart
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Stop Process
Find Out Why
Control Chart Example
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UCL
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11
Time
9
7
5
LCL
3
1
80
60
40
20
0
X
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Thinking Challenge:
Compare & Contrast
TQM Tools
Bases
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Alone
Group Class
Inspection
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Involves examining items to see if an
item is good or defective
Objective: Detect a defective product
Does not correct deficiencies in
process or product
Issues
When to inspect
Where in process to inspect
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When & Where
to Inspect in Mfg.
At supplier’s plant while
producing
Upon receipt of goods
from supplier
Before costly or
irreversible processes
During production process
When production is complete
Before shipment
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© 1995 Corel Corp.
© 1997 Prentice-Hall, Inc.
Business
When & Where
to Inspect in Services
Where
Variable
Bank
Teller station
Checking
Store
Stockrooms
Stock rotation
Display areas Attractiveness
Counters
Courtesy,
knowledge
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Speed, courtesy
Accuracy
TQM in Services
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Service quality is more difficult to
measure than for goods
Service quality perceptions depend on
Expectations vs. reality
Process & outcome
Types of service quality
Normal: Routine service delivery
Exceptional: How problems are handled
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Service Quality Attributes
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Reliability
Responsiveness
Tangibles
Competence
Understanding
Access
Security
Courtesy
© 1995 Corel Corp.
Credibility
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Communication
Conclusion
© 1997 Prentice-Hall, Inc.
Defined quality
Stated why quality is important
Explained total quality management
Explained tools for total quality
management (TQM)
Described inspection
3 - 38