Transcript TQM - Greetings from Eng. Nkumbwa

Total Quality Management in Engineering
Sir. Eng. R. L. Nkumbwa™
www.nkumbwa.weebly.com
© 2010 Nkumbwa™. All Rights Reserved.
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Objectives
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What is Quality
Evolution of Quality
Total Quality Management
Employee Involvement
Cost of Quality
Quality Awards
The Quality Management System
 1. Leadership
 2. Strategic planning
 3. Customer satisfaction
 4. Performance management
 5. Human resources
 6. Construction quality
 7. Supplier partnerships
 8. Results
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2
What Is Quality?
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“The degree of excellence of a thing”
(Webster’s Dictionary)
“The totality of features and characteristics that satisfy
needs” ( ASQC)
Fitness for use
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3
What are the dimensions of Product Quality
Performance
Durability
Features
Serviceability
Quality
Reliability
Aesthetics
Conformance
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Safety
4
Dimensions of Service Quality
Time & Timeliness
Responsiveness
Accuracy
Completeness
Quality
Accessibility &
Convenience
Consistency
Courtesy
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Evolution of Quality Management
To
From
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Quality Control
Testing and Inspection
Quality Dept. as a police force—
protecting the customer
Higher quality implied higher
cost
Conformance to spec
Workers the source of most
problems
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
Quality Management
Building Process Capability
Everyone owns the quality of
their work
Quality is the key to improving
cost and performance
Fitness for use
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Process source of most defects
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Deming’s 14 Points
1.
2.
3.
4.
Create constancy of purpose
Adopt philosophy of prevention
Cease mass inspection
Select a few suppliers based on
quality
5. Constantly improve system and
workers
6. Institute worker training
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7.
Instill leadership among
supervisors
8. Eliminate fear among employees
9. Eliminate barriers between
departments
10. Eliminate slogans
11. Remove numerical quotas
12. Enhance worker pride
13. Institute vigorous training &
education
programs
14. Implement these 13 points
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Total Quality Management
Encompasses entire organization, from supplier to customer
Stresses a commitment by management to have a continuing
company-wide drive toward excellence in all aspects of
products and services that are important to the customer.
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8
Total Quality Management Practices
1.
2.
3.
4.
5.
6.
7.
8.
Customer defined quality
Top management leadership
Quality as a strategic issue
All employees responsible for quality
Continuous improvement/Benchmarking
Shared problem solving
Statistical quality control
Training & education for all employees
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9
Quality as a Strategic Issue
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Quality is key to effective strategy
Clear strategic goal, vision, mission
High quality goals
Operational plans & policies linked to goals
Feedback mechanism
Strong leadership
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TQM Throughout The Organization
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Marketing, sales, R&D
Engineering
Purchasing
Personnel
Management
Packing, storing, shipping
Customer service
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Benchmarking
Selecting best practices to use
as a standard for performance
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Determine what to benchmark
Form a benchmark team
Identify benchmarking partners
Collect and analyze benchmarking information
Take action to match or exceed the benchmark
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12
Continuous Improvement: The Deming
Wheel
4. Act
Institutionalize
improvement
Continue cycle
1. Plan
Identify problem
Develop plan for
improvement
2. Do
Implement plan on
test basis
3. Study / Check
Is the plan working
P-D-C-A Cycle
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13
Employees & Quality Improvement
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Quality circles
Employee suggestions
Process improvement teams
Self-managed work teams
Participation in the Companies Quality Planning
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Seven Quality Control Tools
1.
2.
3.
4.
5.
6.
7.
Pareto analysis
Flowcharts
Check sheets
Histograms
Scatter diagrams
Control charts
Fishbone diagram
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15
A Flowchart—Understand the Process and
select performance measures
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Scatter Diagram—collect data
.
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27
Control Chart—collect data
24
UCL = 23.35
Number of defects
21
c = 12.67
18
15
12
9
6
LCL = 1.99
3
2
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6
8
10
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Sample number
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16
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Check Sheet—collect data
COMPONENTS REPLACED BY LAB
TIME PERIOD: 22 Feb to 27 Feb 1998
REPAIR TECHNICIAN: Bob
TV SET MODEL 1013
Integrated Circuits
Capacitors
Resistors
Transformers
Commands
CRT
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Histogram—analyze data
40
35
30
25
20
15
10
5
0
1 2
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6 13 10 16 19 17 12 16 20 17 13
5 6 2
1
20
70
(64)
A Pareto ChartAnalyze data
Percent from each cause
60
50
40
30
20
(13)
10
(10)
(6)
(3)
(2)
(2)
0
Causes of poor quality
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21
Fishbone Diagram—brainstorming causes
Measurement
Faulty testing equipment
Incorrect specifications
Improper methods
Inaccurate
temperature
control
Human
Out of adjustment
Poor supervision
Lack of concentration
Tooling problems
Old/worn
Inadequate training
Quality
Problem
Defective from vendor
Not to specifications
Dust and Dirt
Machines
Materialhandling problems
Environment
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Materials
Poor process design
Ineffective quality
management
Deficiencies
in product design
Process
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Cost Of Quality
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Cost of achieving good quality
Prevention
Appraisal
Cost of poor quality
Internal failure costs
External failure costs
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23
The Cost of Quality
Distribution of the Costs
Prevention
(10.0%)
Internal and External
failures
(25.0%)
(65.0%)
Evaluation
Reduce Quality Costs by Increasing Prevention Efforts
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24
“Quality is Free”
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For the average company, the cost of quality is about 25%
of total sales
The cost of prevention is a fraction of the cost of fixing
mistakes after they are made
Investments in prevention can drastically reduce the total
cost of quality
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25
Quality Indexes
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Labor index
quality cost /
Cost index
quality cost /
Sales index
quality cost /
Production index
quality cost /
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labor hours
manufacturing cost
sales
units produced
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Quality Index Example
Quality Costs
Prevention
Appraisal
Internal failure
External failure
Total
Accounting measures
Sales
Mfg costs
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1996
1997
1998
1999
$ 27,000
155,000
386,400
242,000
$ 810,400
41,500
122,500
469,200
196,000
829,200
74,600
113,400
347,800
103,500
639,300
112,300
107,000
219,100
106,000
544,400
$ 4,360,000
1,760,000
4,450,000
1,810,000
5,050,000
1,880,000
5,190,000
1,890,000
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Quality Index
Total quality costs * 100 / base
$810,400 * 100 / 4,360,000 = 18.58
Year
1996
1997
1998
1999
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Sales
18.58
18.63
12.66
10.49
Cost
46.04
45.18
34.00
28.80
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Quality And Productivity
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Productivity = output / input
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Fewer defects increase output
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Quality improvement reduces inputs
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29
Measuring Yield & Productivity
Y = (I)(%G) + (I)(1-%G)(%R)
where
Y = yield
I = number units started in production
% G = percentage good units
% R = percentage of defective units reworked
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30
Product Yield Example
Start 100 motors per day
80% are good
50% of poor quality units can be reworked
Y = (I)(%G) + (I)(1-%G)(%R)
Y = 100 (0.80) + 100 (1- 0.80) (0.50) = 90 motors
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31
Product Cost
=
 d ire ct
m fg co st   in p u t    u n it re w o rk co st   re w o rke d u n its 
yie ld
=
 K d   I   K r   R 
Y
where
K d  d ire ct m a n u fa ctu rin g co st
I = input
K r  rework cost per unit
R  reworked units
Y  yield
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32
Product Cost Example
Direct mfg cost = $30, Rework cost = $12
100 motors started, 20% defective
50% of defective motors can be reworked
P ro d u ct co st =
=
K d I  K r R 
Y
 $ 3 0  1 0 0    $ 1 2  1 0 
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9 0 m o to rs
 $ 3 4.6 7 p e r m o to r
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Multistage Product Yield
Y = (I) (%g1)(%g2)...(%gn)
where
I = input batch size
%gi = percent good at stage I
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34
Multistage Process Yield
Motors produced in four-stage process
Start with 100 motors
Stage
1
2
3
4
% Good quality
0.93
0.95
0.97
0.92
Y = (I) (%g1)(%g2)...(%gn) = (100)(0.93)(0.95)(0.97)(0/92)
Y = 78.8 motors
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35
Input Required For Output Of
100 Good Motors
I =
I =
Y
 %g 1  %g 2  %g 3  %g 4 
100
 0.93  0.95  0.97  0.92 
 126 . 8 motors
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36
Quality Awards And Certifications
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The Malcolm Baldrige Award
The Deming Prize
Industry, regional, and company awards
Institute of Industrial Engineers
NASA
European Quality Award
ISO 9000
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37
Quality Management System Overview
1.
2.
3.
4.
5.
6.
7.
8.
Leadership
Strategic planning
Customer satisfaction
Performance management
Human resources
Construction quality
Supplier partnerships
Results
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38
Leadership
Leaders align everyone in the
organization with a common purpose,
values, and priorities.
Strong leadership is the key to
becoming world class.
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39
This Means
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Senior managers set direction and
priorities.
Senior managers actively reinforce
the message.
Employees actions are aligned with
company priorities.
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40
Successful Organizations
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Share a culture of common values—ALIGNMENT
Senior managers actively communicate mission, vision, and
values
Everyone walks the talk
Get feedback from employees and use it to improve
Are good corporate citizens
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41
Links
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Senior leaders ensure that the company’s values and
priorities are embraced throughout the organization.
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42
Action Steps
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Develop mission, vision, and values statements.
Actively seek daily opportunities to reinforce the company
culture.
Survey employees annually.
Devote time to charitable community activities.
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43
What to Measure
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Review operational results and employee
performance data.
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44
Critical Success Factors
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Constant Reinforcement
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Alignment
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Walk the Talk!
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45
Strategic Planning
Achieving a future vision of what
the company can become
requires creating and executing a
strategic plan for getting there.
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46
This Means
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There is a difference between
business planning and strategic
planning. Successful companies do
both.
You have a long-range view of how
you want your company to operate
in the future.
There is a roadmap that keeps
everyone focused on the important
changes needed to make it happen.
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47
Successful Organizations
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Use a structured approach for strategic development
Measure 5-7 key success drivers
Evaluate the competitive environment in detail
Have clear goals for the company’s future
Senior managers translate goals into action plans.
Engage everyone to make the changes
Monitor and control progress monthly
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48
Links
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Leadership direction drives strategic plans.
Strategic plans drive:
 HR development
 product and market innovations
 customer satisfaction improvements
 quality improvements
 partnering initiatives
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49
Action Steps
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Integrate strategic planning in the annual business planning
process.
Define measurements for each key success driver.
Develop strategic goals.
Involve employees to develop action plans.
Review progress against the plan monthly.
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50