Transcript Document

Compare and contrast Lean thinking and
Quality Management Theory
Can they be complemented to achieve business success ?
Group: QRMS1202_Team5 :
Jainwit Tongbai
Zeyd Bohurler
Mathews John
Thomas Oliphant
Apoorva Ravikrishnan
Vasileios Zisis
ID: 1255321
ID: 1265886
ID: 1259600
ID: 1258996
ID: 1262022
ID: 1266493
CONTENTS :
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Evolution of Quality Management Theory
Deming Philosophy
Deming Cycle by Dr. Shewhart
Ishikawa Quality Theory
Total Quality Management
Six Sigma
Lean Thinking
Compare and Contrast : Fit for business success
Evolution of
Quality Management Theory
Early 1950’s
Americans who took the messages of quality to Japan
Late 1950’s
Japanese who developed new concepts in response to the Americans
1970’s-1980’s
Western gurus who followed the Japanese industrial success
Deming Philosophy :
Quality Management Theory
•Management is to be responsible for 94% of quality problems.
•Place the importance and responsibility both individual level and company level.
•14 points of philosophy
•Small , large organisation ; public , private or service sectors.
Deming’s Quotes
Quality Management Theory
“It is not enough to do your best, you must
know what to do, and then do your best.”
“If you do not know how to ask the right
question, you discover nothing.”
W. Edwards Deming
W. Edwards Deming
“Quality is everyone's
responsibility. ”
“ Hold everybody accountable ?
Ridiculous ! ”
W. Edwards Deming
W. Edwards Deming
“ You should not ask questions
without knowledge. ”
W. Edwards Deming
“ Profit in business comes
from repeat customers,
customers that boast about
your project or service, and
that bring friends with them.”
W. Edwards Deming
“Lack of knowledge... that is the problem. ”
W. Edwards Deming
Deming 14 Points
Edwards Deming Philosophy
1 Create constancy of purpose towards improvement of product and service
2 Adopt the new philosophy. We can no longer live with commonly accepted levels of delay,
mistakes and defective workmanship
3 Cease dependence on mass inspection. Instead, require statistical evidence that quality is built in
4 End the practice of awarding business on the basis of price
5 Find problems. It is management’s job to work continually on the system
6 Institute modern methods of training on the job
7 Institute modern methods of supervision of production workers,
The responsibility of foremen must be changed from numbers to quality
8 Drive out fear, so that everyone may work effectively for the company
9 Break down barriers between departments
10 Eliminate numerical goals, posters and slogans for the workforce asking for new levels of productivity without providing
methods
11 Eliminate work standards that prescribe numerical quotas
12 Remove barriers that stand between the hourly worker and their right to pride of workmanship
13 Institute a vigorous programme of education and retraining
14 Create a structure in top management that will push on the above points every day
Deming 14 Points
1. Constancy of purpose:
3. Cease mass production inspection:
2. The new Philosophy :
4. End lowest tender contracts :
Deming 14 Points
5. Improve every process
7. Institute leadership of people
6. Institute training on the job :
8. Drive out fear
Deming 14 Points
9. Breakdown barriers
11. Eliminate arbitrary numerical targets:
10. Eliminate slogans / Do it right first time
12. Permit pride of workmanships
Deming 14 Points
13. Encourage education
• Institute a vigorous programme of education
and self-improvement.
14. Top management commitment and actions :
• Put everybody in organisation to work to accomplish the change.
Systematic Approach :
Deming Cycle by Dr. Shewhart
Quality Process is
Under Control
Father of
Gurus
Dr. Ishikawa – 7 QC Tools :
Quality Management Theory
Late 1950’s Japanese developed new concepts in response to the Americans
Management of
Quality
Customer
Orientation
Managing the Quality
Customer Orientation
Japanese Way of Quality
7 Quality Tools
Dr. Ishikawa – 7 QC Tools
Late 1950’s Japanese developed new concepts in response to the Americans
7 Tools :
• Pareto analysis
• Cause and effect diagrams
• Stratification
• Check sheets
• Histograms
• Scatter charts
• Process control charts
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Which are the big problems?
What causes the problems?
How is the data made up?
How often it occurs or is done?
What do overall variations look like?
What are the relationships between factors?
Which variations to control and how?
Dr. Ishikawa – 7 QC Tools
Late 1950’s Japanese developed new concepts in response to the Americans
7 Tools :
• Pareto analysis
• Cause and effect diagrams
• Stratification
• Check sheets
• Histograms
• Scatter charts
• Process control charts
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Which are the big problems?
What causes the problems?
How is the data made up?
How often it occurs or is done?
What do overall variations look like?
What are the relationships between factors?
Which variations to control and how?
Total Quality Management : Concepts
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At its core, total quality management (TQM) is a management approach to long–
term success through customer satisfaction.
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In a TQM effort, all members of an organization participate in improving processes,
products, services, and the culture in which they work.
Total Quality Management
The primary elements can be classified as:
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Customer-focused.
Total employee involvement.
Process-centered.
Integrated system.
Strategic and systematic approach.
Continual improvement.
Fact-based decision making.
Communications.
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Total quality management can be summarized as a management system
for a customer focused organization that involves all employees in continual
improvement.
It uses strategy, data, and effective communications to integrate the quality
discipline into the culture and activities of the organization.
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Total Quality Management
Total Quality Management has few short-term advantages. Most of its benefits are
long-term and come into effect only after it is running smoothly.
Advantages of Total Quality Management:
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Improves reputation- faults and problems are spotted and sorted quicker (zero defects)
Higher employee morale– workers motivated by extra responsibility, team work and
involvement in decisions of TQM
Lower costs – Decrease waste as fewer defective products and no need for separate
Quality Control inspectors
Disadvantages of Total Quality Management:
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Initial introduction costs- training workers and disrupting current production whilst being
implemented
Benefits may not be seen for several years
Workers may be resistant to change – may feel less secure in jobs
By focusing too much on the customers, the production based method might have a cheaper and
more faster way of doing business and this method is rejected.
Also the costs of inspection of processes as well as Research and development projects might be
too costly.
Six Sigma
• Motorola developed six sigma in 1987
• Similar to other quality management
techniques but represents an
organizational approach to improvement
• Ford, Honeywell- famous organizations to
have implemented six sigma
Definition
• “Business process that allows companies
to drastically improve their bottom line by
designing and monitoring everyday
activities in ways that minimize wastes
and resources while increasing customer
satisfaction”
-Harry and Schroeder
Advantages of Six Sigma
• Achieve maximum customer satisfaction
and minimize the defects
• Profitability increases and Costs reduce
• Can be implemented in any business
• Targets Variation in the processes and
focuses on the process improvement
rather than final outcome
• Focuses on prevention on defects rather
than fixing it
Disadvantages of Six Sigma
• Emphasis on the rigidity of the process
which contradicts innovation and
creativity
• Require skilled man force
• A lot of real time barriers need to be
resolved
• Immediate results are not seen
Lean Thinking Concept
Lean
LeanPrinciples
Principles
There are five Principles that help us seek lean:
• Specify Value
• Identify the value stream
• Make the value flow
• Let the customer pull
• Pursue perfection
Lean Enablers
There are four lean enablers:
• Value Stream Mapping
• Visual Management
• Standardisation
• 5 S (sort, segregate, shine, standardise, sustain)
Lean Techniques
We can use six lean techniques (especially during NPI)
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6.
Project Management
Integrated Product Team
Knowledge Management
Risk Assessment
Requirements Capture
Core Competence
Six Sigma Business Advantages
• It focuses on the customer
• It gives clear objectives and goals to aim for
• 3.14 dpmo
• It’s a systematic approach
• Its Measurable and quantifiable
• It uses well-proven statistical tools
• It gives a change in culture
• Inspired by Deming’s Plan, Do, Check, Act cycle
• Through reducing variation it improves quality
TQM Business Advantages
• It focuses on the customer
• Improves and unifies processes
• It gives employees moral through involvement in decisions
• By reducing “waste” is reduces costs
• Improves reputation through improved quality
• Uses analytical and statistical tools
Lean Manufacturing Business Advantages
• It focuses on the customer
• Gives clear objectives and goals
• By reducing “waste” you also reduce costs and increase quality
• Reduces lead time
• Improves flow in processes
• Can be applied to all aspects of the business
• Increases employee knowledge, become experts in their field
• Improves cross-functional communication
• Builds customer and supplier relations
• Reduces effect of hierarchy
How can these tools be complemented
to achieve business success?
• All came about from the Japanese quality evolution
• All inspired from Deming's work
• All work towards reducing “waste” to maximise process
utilization
• These tools naturally complement themselves
• Lean thinking moves towards JIT and zero “waste”
• TQM focuses on the customer
• Six Sigma focuses on reduction in variation
• To successfully implement a mixture of these depends entirely
on the business application
• The mixture of techniques depends on what aspect the
business would best benefit from focusing on
References
ECTI (Electrical Engineering/Electronics, Computer, Telecommunications and Information Technology
Association), 2008. 5th Annual International Conference of Electrical Engineering/Electronics,
Computer, Telecommunications and Information Technology Association. Bangkok, Thailand
14-17 May 2008. Bangkok: Thailand
Rahmere, R. , 2011. Top 50 EMS providers cross $150 billion mark , Electronics Manufacturing Asia,
[online] Available at:< http://www.emasiamag.com/article5659top50emsproviderscross
150billionmark-Asia.html> [Accessed 29 July 2012]
SVI Plc., 2011. The milestones, annual report 2010-2011, Bangkok, Thailand: SVI Plc.
Whiteman, A. L., 2009. Project Management Challenges In The Global Economy, Project Management
Solution, [online] Available at:<http://business.management6.com/Electronics-ManufacturingProject-Management-Challenges-In-The-download-w9119.pdf> [Accessed 28 July 2012]
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