8/7/2019 11. TQM

1/26

Quality ManagementQuality Management

ObjectivesObjectives

be able to understand modern conceptsbe able to understand modern concepts

of quality and dimensions of qualityof quality and dimensions of qualitybe able to discuss employeebe able to discuss employee

involvement and JIT in Total Qualityinvolvement and JIT in Total Quality

ManagementManagement

be able to describe basic quality toolsbe able to describe basic quality tools

Introduction to ISOIntroduction to ISO

8/7/2019 11. TQM

2/26

What does the term QUALITYWhat does the term QUALITYmean?mean?

QUALITYQUALITY

is the ability of ais the ability of aproduct or service to consistentlyproduct or service to consistently

meet or exceed customermeet or exceed customer

expectations.expectations.

8/7/2019 11. TQM

3/26

Traditional vs. Modern Concept ofTraditional vs. Modern Concept of

Quality ControlQuality ControlTraditionalTraditional ModernModern

One person, smallOne person, smallgroupgroup

Include everyone from rawInclude everyone from rawmaterial, productivity,material, productivity,

design, process, topdesign, process, topmanagementmanagement

Find mistakes afterFind mistakes aftercompletion, at the endcompletion, at the endof lineof line

Find where the mistakesFind where the mistakesmight occur, beforemight occur, beforecompletioncompletion

No specific methods,No specific methods,based on experiencebased on experience

Use statistical; controlUse statistical; controlcharts to monitorcharts to monitor

8/7/2019 11. TQM

4/26

Dimension of QualityDimension of Quality

PerformancePerformance main characteristics main characteristics Special FeaturesSpecial Features extra characteristics extra characteristics ConformanceConformance how well corresponds to how well corresponds to

expectationexpectation ReliabilityReliability consistency of performance without consistency of performance without

breakdownbreakdown DurabilityDurability useful life time useful life time

SafetySafety safe to use as directed safe to use as directed AestheticsAesthetics nice to look at nice to look at Service After SaleService After Sale handling of complaints, handling of complaints,

help lines and checking customer satisfactionhelp lines and checking customer satisfaction

8/7/2019 11. TQM

5/26

Consequences of Poor QualityConsequences of Poor Quality

Reputation & image will sufferReputation & image will suffer

Pay special attention to potential liabilityPay special attention to potential liability

due to injury, damage or even deathdue to injury, damage or even death

Rework have to be done, slow the processRework have to be done, slow the process

to accommodate rework, high scrapsto accommodate rework, high scraps

Increase cost of rework, scrap, repair &Increase cost of rework, scrap, repair &replacement, legal expensesreplacement, legal expenses

8/7/2019 11. TQM

6/26

Responsibility for QualityResponsibility for Quality

Top managementTop managementDesignDesignProcurementProcurementProduction/operationsProduction/operationsQuality assuranceQuality assurancePackaging and shippingPackaging and shippingMarketing and salesMarketing and salesCustomer serviceCustomer service

8/7/2019 11. TQM

7/26

Cost of QualityCost of Quality

Internal CostInternal Cost Failure cost: results from production of defectiveFailure cost: results from production of defective

parts before delivery (rework, scrap, downtime)parts before delivery (rework, scrap, downtime)

Appraisal cost: evaluating products (lab testing,Appraisal cost: evaluating products (lab testing,inspector)inspector)

Prevention cost: reducing potential for defectivePrevention cost: reducing potential for defective(training, awareness program)(training, awareness program)

External costExternal cost occur after delivery (liabilities, warranty, sued byoccur after delivery (liabilities, warranty, sued by

customer)customer)

8/7/2019 11. TQM

8/26

Quality CertificationQuality Certification

ISO 9000ISO 9000 Set of international standards on quality managementSet of international standards on quality management

and quality assurance, critical to internationaland quality assurance, critical to internationalbusinessbusiness

ISO 14000ISO 14000 A set of international standards for assessing aA set of international standards for assessing a

companys environmental performancecompanys environmental performance

Must go through process documenting proceduresMust go through process documenting proceduresThen onsite visit to verify, award certificate & series ofThen onsite visit to verify, award certificate & series of

auditsaudits

8/7/2019 11. TQM

9/26

Total Quality ManagementTotal Quality Management

New attitude towards quality using Three PhilosophiesNew attitude towards quality using Three Philosophies Continuous improvement KAIZENContinuous improvement KAIZEN Involvement of everyone in the organizationInvolvement of everyone in the organization Customer satisfactionCustomer satisfaction

Expands the traditional view of quality beyond lookingExpands the traditional view of quality beyond lookingonly at the quality of the final product or service but toonly at the quality of the final product or service but tolook at quality of every aspect of the processlook at quality of every aspect of the process

Not only on product, but also services e.g. banking,Not only on product, but also services e.g. banking,hospitalhospital

8/7/2019 11. TQM

10/26

Elements of TQMElements of TQM

Utilizes education & training everyoneUtilizes education & training everyone Encourages empowerment of the employees inEncourages empowerment of the employees in

the work place, team approachthe work place, team approach

Promote understanding & fulfilling the needs ofPromote understanding & fulfilling the needs ofcustomerscustomers

Define quality in term of customer requirementDefine quality in term of customer requirement Use statistical reasoning with data to solveUse statistical reasoning with data to solve

problems & to improveproblems & to improve View quality improvement as never ending questView quality improvement as never ending quest

to improve the processto improve the process

8/7/2019 11. TQM

11/26

Employee InvolvementEmployee Involvement

In every step of production process,In every step of production process,

involve directly with the systeminvolve directly with the system

Everyone must be responsible on theirEveryone must be responsible on their

workwork

Build communication network, employeesBuild communication network, employees

with supervisor (open minded, supportive)with supervisor (open minded, supportive)

8/7/2019 11. TQM

12/26

Relationship between TQM andRelationship between TQM and

Just-In-TimeJust-In-Time

JIT emphasizes continuous improvementJIT emphasizes continuous improvement

& enforces problem solving since design& enforces problem solving since design

to production stage; deliver just as neededto production stage; deliver just as needed

Target less inventory, less scrap, rework,Target less inventory, less scrap, rework,

reduce costreduce cost

Limits potential sources of error, give earlyLimits potential sources of error, give early

warning, produce in small batcheswarning, produce in small batches

8/7/2019 11. TQM

13/26

TQM Lead to Lower ProductionTQM Lead to Lower Production

CostCost

Emphasize the quality from supplier &Emphasize the quality from supplier &

distributordistributor

Reduce prevention cost ( less potential forReduce prevention cost ( less potential for

defective parts from employees)defective parts from employees)

Reduce cost of inspectionReduce cost of inspection

Reduce cost of rework, replacementReduce cost of rework, replacement

8/7/2019 11. TQM

14/26

Obstacles to Implementing TQMObstacles to Implementing TQM

Lack of:Lack of:Company-wide definition of qualityCompany-wide definition of quality

Strategic plan for changeStrategic plan for change

Customer focusCustomer focusReal employee empowermentReal employee empowerment

Emphasis on short-term financial resultsEmphasis on short-term financial results

Time to devote to quality initiativesTime to devote to quality initiatives

LeadershipLeadershipView of quality as a quick fixView of quality as a quick fix

8/7/2019 11. TQM

15/26

The PDSAThe PDSACycleCycle

Plan

Do

Study

Act

8/7/2019 11. TQM

16/26

The Process Improvement CycleThe Process Improvement Cycle

Implement theImproved process

Select a

process

Study/document

Seek ways to

Improve it

Design an

Improved process

Evaluate

Document

8/7/2019 11. TQM

17/26

Basic Quality ToolsBasic Quality Tools

There are a number of tools that can beThere are a number of tools that can be

used for problem solving and processused for problem solving and process

improvementimprovement

Tools aid in data collection andTools aid in data collection and

interpretation, and provide the basis forinterpretation, and provide the basis for

decision makingdecision making

8/7/2019 11. TQM

18/26

Basic Quality ToolsBasic Quality Tools

FlowchartsFlowcharts

Check sheetsCheck sheets

HistogramsHistogramsPareto ChartsPareto Charts

Scatter diagramsScatter diagrams

Control chartsControl charts

Cause-and-effect diagramsCause-and-effect diagrams

8/7/2019 11. TQM

19/26

FLOWCHARTFLOWCHART

Drive in check price self serve? to pumpshut offengine

walk to paystation

yes

no

check card transmit approved?turn onpump

yes

no

backto car

pumpgas

walk tobooth

wait

employee

totals

charges

check

accuracy

prepare

receipt

sign

copy

copy to

file

copy to

wallet

return to car

on the road

again

8/7/2019 11. TQM

20/26

CHECK SHEETSCHECK SHEETS

Body Defects

Paint

Dent

Wheels

Loose

Stuck

Monday

8/7/2019 11. TQM

21/26

PARETO ANALYSISPARETO ANALYSIS

80% of the

problems

may be

attributed to

20% of the

causes.

80% of the

problemsmay be

attributed to

20% of the

causes.

Smeared

print

N

umb

erof

defects

Off

center

Missing

label

Loose Other

8/7/2019 11. TQM

22/26

CONTROL CHARTCONTROL CHART

970

980

990

1000

1010

1020

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

UCL

LCL

8/7/2019 11. TQM

23/26

CAUSE-AND-EFFECT DIAGRAMCAUSE-AND-EFFECT DIAGRAM

Effect

MaterialsMethods

EquipmentPeople

Environment

Cause

Cause

Cause

Cause

Cause

CauseCause

Cause

CauseCause

Cause

Cause

8/7/2019 11. TQM

24/26

Benchmarking ProcessBenchmarking Process

Identify a critical process that needsIdentify a critical process that needs

improvingimproving

Identify an organization that excels in thisIdentify an organization that excels in this

processprocess

Contact that organizationContact that organization

Analyze the dataAnalyze the data Improve the critical processImprove the critical process

8/7/2019 11. TQM

25/26

Lets Recap!Lets Recap!

What are the dimensions of quality?What are the dimensions of quality?

Who responsibility for quality?Who responsibility for quality?

Name some of the basic quality tools.Name some of the basic quality tools.What are the consequences of poorWhat are the consequences of poor

quality?quality?

Which quality certificate involve withWhich quality certificate involve withenvironmental performance?environmental performance?

8/7/2019 11. TQM

26/26

SummarySummary

Understand the Concept of Total QualityUnderstand the Concept of Total Quality

ManagementManagement

Significant Impact of Total QualitySignificant Impact of Total Quality

Management in Modern ManufacturingManagement in Modern Manufacturing

Next class, we will have some calculationsNext class, we will have some calculations

in Statistical Quality Controlin Statistical Quality Control