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Chapter 5- Total QualityManagement

First Part

CHERYLEE G. ARTATES

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Learning Objectives

Explain the meaning of TQM

Identify the costs of Quality

Describe the evolution of TQM

Identify Quality leaders and theircontributions

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The totality of features and characteristics

of a product or service that bears on itsability to satisfy stated or implied needs

American Society for Quality

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Different Views

User-based better performance,more features

Manufacturing-based conformance to

standards, making it right the first time Product-based specific and

measurable attributes of the product

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Implications of Quality

1. Company reputation

Perception of new products

Employment practices

Supplier relations

2. Product liability

Reduce risk

3. Global implications Improved ability to compete

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Defining Quality

Definition of qualityis dependent on thepeople defining it

There is a lack of asingle, universal

definition of quality

5 commondefinitions include Conformance to

specifications Fitness for use

Value for price paid Support services Psychological criteria

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Defining Quality 5 Ways

Conformance to specifications Does product/service meet targets and tolerances defined by

designers?

Fitness for use Evaluates performance for intended use

Value for price paid Evaluation of usefulness vs. price paid

Support services Quality of support after sale

Psychological e.g. Ambiance, prestige, friendly staff

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Manufacturing Quality vs. Service Quality

Manufacturingquality focuses ontangible productfeatures

Conformance,performance,reliability, features

Serviceorganizationsproduce intangibleproducts that must

be experienced Quality often defined

by perceptionalfactors like courtesy,friendliness,promptness, waitingtime, consistency

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Cost of Quality

Quality affects all aspects of the organization Quality has dramatic cost implications of;

Quality control costs

Prevention costs

Appraisal costs

Quality failure costs

Internal failure costs

External failure costs

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Costs of Quality

External Failure

Internal Failure

Prevention

Appraisal

TotalCost

Quality Improvement

Total Cost

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Cost of Quality 4 Categories

Early detection/prevention is less costly May be less by a factor of 10

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Evolution of TQM New Focus

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Evolution of Quality Management

Inspection

QualityControl

TQM

Salvage, sorting, grading, blending, corrective actions,identify sources of non-conformance

Develop quality manual, process performance data,self-inspection, product testing, basic quality planning,use of basic statistics, paperwork control.

Quality systems development, advanced quality planning,comprehensive quality manuals, use of quality costs,involvement of non-production operations, failure modeand effects analysis.

Policy deployment, involve supplier & customers, involveall operations, process management, performancemeasurement, teamwork, employee involvement.

QualityAssurance

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Quality Gurus

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Shewharts PDCA Model

2. Do

Test theplan

3. Check

Is the planworking?

4. Act

Implementthe plan

1.Plan

Identify theimprovement and

makea plan

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Demings 14 Points

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J.M. Jurans Trilogy

Developed the idea of trilogyQuality PlanningQuality Improvement

Quality Control

Trilogy shows how an organization canimprove every aspect by betterunderstanding of the relationship between

processes that plan, control and improvequality as well as business results

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Armand Feigenbaum

Crucial elements of Total Quality The elements of total quality to enable a totally customer-centered focus(internal and external)

Quality is the customers perception of what quality is, not what a company thinksit is.

Quality and cost are the same not different.

Quality is an individual and team commitment. Quality and innovation are interrelated and mutually beneficial.

Managing Quality is managing the business.

Quality is a principal.

Quality is not a temporary or quick fix but a continuous process of improvement.

Productivity gained by cost effective demonstrably beneficial Quality investment.

Implement Quality by encompassing suppliers and customers in the system.

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Philip B. Crosby

Absolutes of Quality Management

Quality means conformance to requirements, notelegance

There is no such thing as a quality problem

There is no such thing as the economics of quality;doing the job right the first timeis always cheaper

The only performance measurement is the cost ofquality, which is the expense of nonconformance

The only performance standard is Zero Defects(ZD)

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Kaoru Ishikawa

He showed the importance of tools like runchart,flowchart, control charts, histograms

He took the quality philosophy one step further-itshould be consumer oriented and it should becontinuous

He insisted on User Friendly Quality Control

He emphasized on the Internal Customer and sharedvision

Top management commitment is something heinsisted

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Genichi Taguchi

Taguchi loss function, used to measure financialloss to society resulting from poor quality;

The philosophy of off-line quality control,designing products and processes so that they areinsensitive ("robust") to parameters outside the

design engineer's control; and

Innovations in the statistical design ofexperiments, notably the use of an outer array forfactors that are uncontrollable in real life, but aresystematically varied in the experiment.

http://en.wikipedia.org/wiki/Loss_functionhttp://en.wikipedia.org/wiki/Design_of_experimentshttp://en.wikipedia.org/wiki/Design_of_experimentshttp://en.wikipedia.org/wiki/Design_of_experimentshttp://en.wikipedia.org/wiki/Design_of_experimentshttp://en.wikipedia.org/wiki/Loss_function

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Chapter 5 (Part 1) Highlights

TQM is different from the old concept ofquality as it focus is on serving customers,identifying the causes of quality problems,and building quality into the production

process Four categories of quality cost of

prevention, appraisal, internal and externalcosts

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Chapter 5 (Part 1) Highlights cont.

Seven TQM notable individuals include WalterA. Shewhart, W. Edwards Demings, Joseph M.Juran, Armand V. Feigenbaum, Philip B.Crosby, Kaoru Ishikawa, and Genichi Taguchi

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Sources

California Management Review, S549 Haas Schoolof Business #1900, Berkeley, CA 94720,cmr@haas.berkeley.edu

ANSI/ISO/ASQ Q9004-2000, Quality Management

Systems--Guidelines for performanceimprovements, American Society for Quality(ASQ), P.O. Box 3005 Milwaukee, WI 53201,2000; http://standardsgroup.asq.org

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Sources (cont.)

The Informed Outlook, International Forum forManagement Systems, Inc., 15913 EdgewoodDr.Montclair, Virginia 22026,www.informintl.com

ANSI/ASQC Q9001- 1994, Quality Managementand Quality Assurance Standards--Guidelinesfor Selection and Use,ASQ, Milwaukee, WI,1994

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Sources (cont.)

Quality Digest, 1350 Vista Way., P.O. Box882,Red Bluff, CA 96080,qualitydig@qof.com

Quality Management Principles Internet site:

http:www.wineasy.se/qmp/about.html andISO 9004: July 1998, p.415-416 & ISO/CDIISO 9000-1998, p. 2

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Sources (cont.)

Quality Progress,American Society of Quality,611 E. Wisconsin Ave., P.O. Box 3005,Milwaukee, WI 53201

For Quality Function Deployment (QFD)Lou

Cohens book, How to Make QFD Work for You,(Addison-Wesley, 1995) as well as the QFDinternetpage:http.www//akao.larc.nasa.gov/dfc/qfd.html

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Sources (cont.)

Deming Electronic Network:

http://deming.eng.clemson.edu/pub/den/deming_map.htm

Dr. Demings Site for Total Quality Management:http://www.well.com/user/vamead/demingdist.html

Dr. Demings Main Website:

http://www.deming.org/

Juran and Deming Article (by Phil Landesberg):http://curiouscat.net/library/pdf/inthebeginning.pdf

http://deming.eng.clemson.edu/pub/den/deming_map.htmhttp://www.well.com/user/vamead/demingdist.htmlhttp://www.deming.org/http://curiouscat.net/library/pdf/inthebeginning.pdfhttp://curiouscat.net/library/pdf/inthebeginning.pdfhttp://www.deming.org/http://www.well.com/user/vamead/demingdist.htmlhttp://deming.eng.clemson.edu/pub/den/deming_map.htm

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Sources (cont.)

Malcolm Baldrige Quality Award:

http://www.emporia.edu/ibed/jour/jour14om/sarat.htm

Michigan Quality Award (Lighthouse):http://www.michiganquality.org/recog/Brochure/

More Malcolm Baldrige Quality Award: http://www.quality.nist.gov/

Ritz-Carlton Hotel Company:

http://www.ritzcarlton.com/

http://www.emporia.edu/ibed/jour/jour14om/sarat.htmhttp://www.michiganquality.org/recog/Brochure/http://www.quality.nist.gov/http://www.ritzcarlton.com/http://www.ritzcarlton.com/http://www.quality.nist.gov/http://www.michiganquality.org/recog/Brochure/http://www.emporia.edu/ibed/jour/jour14om/sarat.htm

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Sources (cont.)

Ritz-Carlton Hotel Companys Award Application Summary,

1999:http://www.quality.nist.gov/PDF_files/RCHC_Application_Summary.pdf

Six Sigma and Starwood Hotels and Resorts:http://www.starwood.com/development/fran_detail.html?categor

y=OPSU&topNav=OS

Starwood Hotels and Resorts Worldwide, Inc. Web site:http://www.starwood.com/

Who is Dr. Edwards Deming?: http://www.lii.net/deming.html

http://www.quality.nist.gov/PDF_files/RCHC_Application_Summary.pdfhttp://www.quality.nist.gov/PDF_files/RCHC_Application_Summary.pdfhttp://www.starwood.com/development/fran_detail.html?category=OPSU&topNav=OShttp://www.starwood.com/development/fran_detail.html?category=OPSU&topNav=OShttp://www.starwood.com/http://www.lii.net/deming.htmlhttp://www.lii.net/deming.htmlhttp://www.starwood.com/http://www.starwood.com/development/fran_detail.html?category=OPSU&topNav=OShttp://www.starwood.com/development/fran_detail.html?category=OPSU&topNav=OShttp://www.quality.nist.gov/PDF_files/RCHC_Application_Summary.pdfhttp://www.quality.nist.gov/PDF_files/RCHC_Application_Summary.pdf