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AMERICAN SOCIETY FOR QUALITY QUALITY 101 Michael Hagan, D.O. MHSA, CMQ Director of Quality Improvement Gift of Life Michigan QUESTIONS • Click on Q&A tab, type your question, then click on ASK • Slides: www.aopo.org MODULE 3 TOTAL QUALITY MANAGEMENT TQM • • • • TQM CWQC TQC CQI Total Quality Management Company Wide Quality Control Total Quality Control Continuous Quality Improvement TQM • • • • • Management approach Centered on quality Company wide participation Aimed at long term success Through customer satisfaction 3 Cs of TQM © 1 Customer relationships 2 Continuous improvement 3 Company-wide participation 2001 ASQ All rights reserved. ASQ IL2-6 1 Customer Definitions Pucker Up Lemonade, Inc. Consumers Internal Customers External Customers Loading Dock Sorting Department Juicing Department Mixing Department © 2001 ASQ All rights reserved. Sorting Department Juicing Department Mixing Department Bottling Department ASQ IL2-7 1 Levels of Customer Satisfaction Noriaki Kano identified three levels: Expected quality Desired quality Excited quality © 2001 ASQ All rights reserved. ASQ IL2-8 CUSTOMER SATISFACTION EXPECTED QUALITY • Don’t have to ask for it • Does not increase satisfaction • Will stop using the product/service if it is missing CUSTOMER SATISFACTION DESIRED QUALITY • Added unexpected perks • Increase customer satisfaction • Dissatisfied if it is missing but will probably still use product/service CUSTOMER SATISFACTION • EXCITED QUALITY • Added benefit not asked for • Radically improves satisfaction • Satisfied even if missing EXCITED QUALITY • J. C. Penney • Nordstrom’s • Ritz Carlton RELATIONSHIPS • • • • • Customers Suppliers Partnering with suppliers Supplier feedback Audits 1 Customer Feedback Has two parts: Efforts to capture what customers say about company’s products/services Efforts to drive feedback back into organization © 2001 ASQ All rights reserved. Partnering with customer: Extension of listening to customer feedback Most direct route to customer satisfaction ASQ IL2-14 SATISFACTION EXAMPLES • Surveys • Complaints • Focus groups 1 Suppliers Any person or organization that provides input to a process Can be external or internal © 2001 ASQ All rights reserved. ASQ IL2-16 1 Supplier Audits Determine the effectiveness of the quality system. Provide Meet © 2001 ASQ All rights reserved. opportunity for improvement. regulatory requirements. ASQ IL2-17 P D C A CYCLE • • • • Shewhart cycle Deming cycle PDSA cycle FOCUS – PDSA cycle P-D-S-A Cycle Act Plan •To continue •Improvement improvement •Data collection •Data analysis •Improvement Study •Lessons •Data collection learned Do 3 Employee Involvement Benefits Improved productivity and cost reduction Increased participation and job satisfaction Opportunities for professional development © 2001 ASQ All rights reserved. Barriers “It Won’t Work Here” Perception of loss of management authority Employees feeling “used” “Flavor of the month” ASQ IL2-20 COMPANY - WIDE • • • • Leadership from management All employees Every department Team involvement • Quality Council’s Model QI Plan CONTINUOUS IMPROVEMENT • Kaizen change good • Making changes for the better on a continual, never-ending basis CONTINUOUS IMPROVEMENT • Incremental improvement – Smaller changes – Continuous in nature – Everyday changes • Breakthrough improvement – Unprecedented levels of performance – HRSA Collaborative BENEFITS • • • • • • Productivity up, costs down Participation & job satisfaction Professional development No more BTTWWADI Employees don’t feel used No flavor of the month negativity 3 Team Roles Sponsor/champion Leader Member Facilitator © 2001 ASQ All rights reserved. ASQ IL2-25 3 Team Development Forming Storming Norming © 2001 ASQ All rights reserved. Performing ASQ IL2-26 TEAM STAGES • • • • Forming: focus energy into system Storming: conflict, competition Norming: develop a common focus Performing: individual talents – Team problem solving – Implement change – Achievement, success, pride GROUP THINK • “If everyone is thinking the same thing, then someone isn’t thinking” Gen. George Patton Communication Process Who . . . Communicator © 2001 ASQ All rights reserved. says what . . . Message in what way . . . Medium to whom . . . Receiver ASQ IL2-29 W. Edwards Deming Quality keys: Understanding customer needs Process improvement Statistical analysis Expertise of workers PDCA cycle © 2001 ASQ All rights reserved. ASQ IL2-30 1. DEMING 1. 2. 3. 4. 5. 14 POINTS Create constancy of purpose Adopt a new philosophy Stop dependence on inspection Don’t focus on price tag Improve constantly & forever DEMING 14 POINTS 6. Institute training 7. Institute leadership 8. Drive out fear 9. Break down barriers 10. Eliminate slogans, exhortations DEMING 14 POINTS 11. Eliminate quotas; use leadership – don’t manage by objective – eliminate annual merit raises 12. Remove barriers to workmanship 13. Vigorous education program 14. Involve everybody Joseph M. Juran Quality keys: Features that satisfy customers Freedom from deficiencies Juran Trilogy® – Quality planning – Quality control – Quality improvement © 2001 ASQ All rights reserved. ASQ IL2-34 JURAN TRILOGY QUALITY PLANNING • Establish quality goals • Identify customers • Find customer needs • Products/service to meet needs • Establish process controls JURAN TRILOGY QUALITY CONTROL • Find process to control • Chose measurement • Gap analysis • Take action to improve JURAN TRILOGY QUALITY IMPROVEMENT • Infrastructure for annual QI • Identify the need • Establish the team • Find the cause & solution • Hold the gains Kaoru Ishikawa Quality keys: Company-wide participation Quality control circles Advanced statistical methods and tools Nationwide quality control promotion © 2001 ASQ All rights reserved. ASQ IL2-38 ISHIKAWA • • • • • Company-wide involvement Quality education & training Quality control circles Seven basic tools Nationwide QI activities ISHIKAWA 1. 2. 3. 4. 5. 6. 7. 7 TOOLS Flowcharts Check sheets Pareto charts Cause & effect diagrams Scatter charts Control charts Histograms Armand V. Feigenbaum Quality keys: Total quality control Integration of quality development, maintenance, and improvement Focus on internal and external customers © 2001 ASQ All rights reserved. ASQ IL2-41 FEIGENBAUM • Total Quality Control • The state of being excellence driven rather than defect driven FEIGENBAUM TQC • Company-wide process • Quality defined by customer • Quality & cost are a sum, not difference • Individual effort & teamwork • Quality is a way of managing FEIGENBAUM • • • • TQC Quality depends on innovation Quality is an ethic Quality is continuous improvement Quality is cost effective vs. cost of poor quality Quality is a total system with customers and suppliers Genichi Taguchi Quality keys: Quality should be designed in. Quality should minimize deviations from a target. DOE optimizes performance. © 2001 ASQ All rights reserved. ASQ IL2-45 Philip Crosby Quality keys: Conformance to requirements Prevention Zero Defects Price of nonconformance © 2001 ASQ All rights reserved. ASQ IL2-46 CROSBY 4 ABSOLUTES 1. Quality is defined as conformance to requirements, not as goodness 2. System causing quality is prevention, not appraisal CROSBY 4 ABSOLUTES 3. Performance standard is zero defects, not “close enough” 4. Measurement of quality is the price of non-conformance, not indexes Baldrige National Quality Program Seven categories for performance excellence: Leadership Strategic Planning Customer and Market Focus Information and Analysis Human Resource Focus © 2001 ASQ All rights reserved. Process Management Business Results ASQ IL2-49 Six Sigma Represents 3.4 defects per million. Uses an integrated set of statistical tools to solve problems and improve processes. © 2001 ASQ All rights reserved. ASQ IL2-50 SIX SIGMA • In statistics, measure of variation • Standard deviation • Motorola in 1986 SIX SIGMA • Zero defects concept • Six sigma effectively is: 3.4 defects per million 99.99966% good TOWARDS SIX SIGMA AOPO QUALITY COUNCIL • AOPO Quality Council’s Model Quality Improvement Plan Incorporates these concepts of quality planning, quality control, and quality improvement MODEL QI PLAN SPECIFIC RESPONSIBILITIES – Board members – Executive Director – Managers – Every Department – Every person – PDSA Cycle QUESTIONS • Click on Q&A tab, type your question, then click on ASK • Slides: www.aopo.org, • Contact: Dr. Michael Hagan [email protected] 734-922-1072