+ All Categories
Home > Documents > OM Lec2 TQM & OM

OM Lec2 TQM & OM

Date post: 14-Apr-2018
Category:
Author: sadfizia
View: 221 times
Download: 0 times
Share this document with a friend
Embed Size (px)

of 24

Transcript
  • 7/27/2019 OM Lec2 TQM & OM

    1/24

    TQM & OM

    TQM = Customer-Driven Quali ty Management

  • 7/27/2019 OM Lec2 TQM & OM

    2/24

    2

    Customer Quality Measures

    Customers typically relate quality to:

    1) Feature-based measures (have or have not)

    determined by design

    diamond example: marquise shape diamond vs.round diamond

    2) Performance measures (range of values)

    conformance to design or ideal value

    diamond example: 4Cs -- carat, clarity, color, cut

    In this class, we will focus more on analyzing

    performance measures.

  • 7/27/2019 OM Lec2 TQM & OM

    3/24

    3

    What are the Different Views

    of Quality? Customers View (more subjective view):

    Transcendent view image of excellence quality of the design (look, feel, and function). Fitness for intended use customer needs/expectations. consider both feature and performance measures to assess

    value. Value = Quality / Price (value determined by individual

    customers)

    Producers View (more objective view): conformance to requirements. e.g., # of defects per million products is a measure of

    conformance. costs of quality (prevention, appraisal, scrap & warranty costs).

    prevention costs: training, writing quality procedures appraisal costs: inspecting and measuring product characteristics scrap and rework costs: internal costs of defective products

    warranty costs: external costs for product failures in the field increasing quality conformance reduces product costs and raises

    profits.

  • 7/27/2019 OM Lec2 TQM & OM

    4/24

    4

    History of Quality Paradigms

    (producer / customer relationship) Customer-craft quality paradigm:

    design and build each product for a particular customer. producer knows the customer directly.

    Mass production and inspection quality paradigm: focus on designing and building products for mass consumption. push products on the customer (limit customer choices). quality is maintained by inspecting and detectingbad products. major innovation to this paradigm: statistical process control

    TQM or Customer-Driven Quality paradigm: potential customers determine what to design and build. higher quality obtained by focusing on preventingproblems and

    continuously reducing variability in all organizational processes.

  • 7/27/2019 OM Lec2 TQM & OM

    5/24

    5

    The Quality Hierarchy

    (Evolution)

    1. Inspection

    2. Quality Control

    (QC)

    2. Quality

    Assurance (QA)

    4. Total Quality

    Management

    (TQM)

    incorporates QC/QA activities into

    a company-wide system aimed at

    satisfying the customer.

    (involves all organizational functions)

    planned and systematic actions to

    insure that products or services

    conform to company requirements

    (example: product quality plans).

    operational techniques to make

    inspection more efficient & to reducethe costs of quality. (example: SPC)

    Inspect products

    Prevention

    stop problems

    at source;greater

    design emphasis

    (PROACTIVE)

    Detection

    Finding &Fixing Mistakes

    (REACTIVE)

  • 7/27/2019 OM Lec2 TQM & OM

    6/24

    6

    Inspection Approach-

    999 Out of 1000 Syndrome People often think that doing something

    right 99 percent of time (99 out of 100) is

    good enough. However, at this level, therewould be the following:

    5,000 incorrect surgical operations per week

    2 short or long landings per day at eachmajor airport

    Others: ___________?

  • 7/27/2019 OM Lec2 TQM & OM

    7/24

    7

    Some Quality Definitions The totality of features and

    characteristics of a product or service

    that bears on its ability to satisfygiven needs.

    Quality is meeting or exceedingcustomer expectations.

  • 7/27/2019 OM Lec2 TQM & OM

    8/24

  • 7/27/2019 OM Lec2 TQM & OM

    9/24

    9

    Types of Customers External/Ultimate customer

    Needs?

    Immediate or Internal Customer Expectations?

    Need to define your customer needs and

    expectations.Always provide feedback to the previous

    process (supplier)

  • 7/27/2019 OM Lec2 TQM & OM

    10/24

    10

    TQMTQM is a management philosophy which seeks tointegrate all organizational functions (marketing,finance, design, engineering, production, customer

    service ) to focus on meeting customer needsand organizational objectives.

    It views organizations as a collection of processes.

    It maintains that organizations must strive tocontinuously improve these processes byincorporating the knowledge and experiences ofworkers.

  • 7/27/2019 OM Lec2 TQM & OM

    11/24

    11

    The Simple Objective of TQM

    Do the right things, right

    the first time, every time.

  • 7/27/2019 OM Lec2 TQM & OM

    12/24

    12

    TQMDEFINITION OF TOTAL QUALITY MANGEMENTA customer focused, strategic and systematic approachinvolving continuous performance improvement to providegoods and services that offer the highest value.

    TOTAL Everyone in the organization is responsible for quality, and

    everything in the organization is addressed for improvement.

    QUALITY

    All products or services consistently meet or exceed customerneeds, desires, and expectations.

    MANAGEMENT

    The PLANNING & EXECUTION that makes it happen, via mission,values, vision, goals, policies, process improvement, financialsupport, measurements, communication, participative supervision,training and education, rewards and recognition, and above all,management involvement.

  • 7/27/2019 OM Lec2 TQM & OM

    13/24

    13

    TQM Continued CUSTOMER FOCUED

    Have external and internal customers define quality, thenmake the changes that make economic sense

    STRATEGIC

    Make quality a competitive strategy; plan and work for betterperformance and long term success, instead of business-as-usual and short-term results

    SYSTEMATIC Align all production, information, financial, and personnel

    systems with the organizations mission, vision, and goals

  • 7/27/2019 OM Lec2 TQM & OM

    14/24

    14

    TQM Continued APPROACH

    Proactively lead and steer change, through culture,people, systems, and partnerships

    CONTINUOUS Enable employees to routinely solve problems, help

    improve processes, and make decisions; foster on-goingteamwork between managers, employees, unions,customers, and suppliers; design quality in the first time;use state-of-the-art technology; make improvement a

    habit, a never ending journey.

    PERFORMANCE Focus on prevention instead of detection, on doing it

    right the first time instead of doing it over, and oncustomer oriented outcomes instead of operational status

    quo.

  • 7/27/2019 OM Lec2 TQM & OM

    15/24

    15

    TQM Continued IMPROVEMENT

    Facilitate data gathering and process analysis; encourageinnovation and better design; update methods, procedures,

    tools, and equipment; remove barriers to effectiveperformance; strive for perfection.

    VALUE

    Achieve total customer satisfaction where value isperceived as the combination of cost, quality, availability ofproduct and service, and product performance/reliability.

  • 7/27/2019 OM Lec2 TQM & OM

    16/24

    16

    Some Basic Tenets of TQM1. The customer determines quality.2. Improving quality requires the establishment of effective

    quality metrics. We must speak with data not justopinions.

    3. People working within systems create quality throughteamwork.

    4. Quality is a moving target. It requires a commitmenttoward sustained (strategic and systematic) continuous

    improvement.5. Prevention, not detection, is the key to producing highquality. We must design quality into processes andreduce variability.

    6. Top Management must provide leadership and support

    for all (total) quality initiatives.

  • 7/27/2019 OM Lec2 TQM & OM

    17/24

    17

    Innovators of Modern QualityThinking

    U.S. Quality Innovators and the Main Years oftheir Work:

    Walter Shewhart (1920s -1940s)

    W. Edwards Deming (post WWII through 1980s) Joseph M. Juran (consultant post WWII through

    1980s) Philip Crosby (1980s) Armand Feigenbaum (1970s - 1980s)

    Japanese Quality Innovators: Kaoru Ishikawa (post WWII - 1980s) Genichi Taguchi (1960s - 1980s) Shigeo Shingo (post WWII - 1980s)

  • 7/27/2019 OM Lec2 TQM & OM

    18/24

    18

    Walter A Shewhart

    Pioneer of Modern Quality Control recognized the need to separate variation into

    assignable and unassignable causes (defined incontrol.)

    founder of the control chart (e.g. X-bar and R chart). originator of the plan-do-check-act cycle. perhaps the first to successfully integrate statistics,

    engineering, and economics.

    defined quality in terms of objective and subjective

    quality objective quality: quality of a thing independent of people. subjective quality: quality is relative to how people

    perceive it. (value)

  • 7/27/2019 OM Lec2 TQM & OM

    19/24

    19

    W. Edwards Deming

    Studied under Shewhart at Bell Laboratories Contributions:

    well known for helping Japanese companies apply Shewhartsstatistical process control.

    Main Contribution is his Fourteen Points to Quality(some key points below)

    create constancy of purpose. cease mass production - build quality into products. drive out fear and build employee trust.

    break down departmental barriers (create win-win situations). seek long-term supplier relationship (end low cost bidding). eliminate numerical goals; abolish annual rating or merit system. eliminate slogans - they provide no value in terms of improving

    quality.

  • 7/27/2019 OM Lec2 TQM & OM

    20/24

    20

    The Deming Chain Reaction(proposed W. Edwards Deming)

    Improve

    Quality

    Costs decrease:

    (less rework,

    fewer mistakes,

    better use of

    material

    and equipment)

    Productivity

    Improves

    Greater Market

    Share

    (products with

    higher quality at less

    cost)

    Stay

    In

    Business

    Provide

    Jobs

    and More

    Jobs

  • 7/27/2019 OM Lec2 TQM & OM

    21/24

    21

    Joseph M. Juran

    Contributions also well-known for helping improve Japanese quality.

    directed most of his work at executives and the field of

    quality management.

    developed the Juran Trilogy for managing quality: Quality planning, quality control, and quality improvement.

    enlightened the world on the concept of the vital few,trivial many which is the foundation for pareto charts.

  • 7/27/2019 OM Lec2 TQM & OM

    22/24

    22

    Other US Quality Innovators

    Philip Crosby (quality management) Four absolutes of quality including:

    #1- quality is defined by conformance to requirements. #2 - system for causing quality is prevention not appraisal. #3 - performance standard is zero defects, not close

    enough. #4 - measurement of quality is the cost of nonconformance

    Armand Feigenbaum Stressed a systems approach to quality (all organizations

    must be focused on quality) Costs of quality may be separated into costs for

    prevention, appraisal, and failures (e.g., scrap, warranty).

  • 7/27/2019 OM Lec2 TQM & OM

    23/24

    23

    Kaoru Ishikawa

    developed concept of true and substitute quality characteristics true characteristics are the customers view substitute characteristics are the producers view degree of match between true and substitute ultimately determines

    customer satisfaction.

    advocate of the use of the 7 tools (e.g., cause-and-effect diagram) advanced the use of quality circles (worker quality teams). developed concept of Japanese Total Quality Control quality first - not short term profits. next process is your customer. use facts and data to make presentations. respect for humanity as a management philosophy - full participation. cross-functional management.

  • 7/27/2019 OM Lec2 TQM & OM

    24/24

    24

    Other Quality Innovators

    Genichi Taguchi (1960s - 1980s) quality loss function (deviation from target is a loss to society). Promoted the use of parameter design (application of Design of Experiments) or robust engineering.

    Shigeo Shingo (post WWII - 1980s) advocated the replacement of statistical process control with

    source inspection (control quality at the source, rather thanthrough sampling inspections).

    set up poke-yoke devices (mistake proofing devices) such assensors and monitors to identify defects at the point they occur.

    referred to his system as a zero defect approach because ZeroDefects is the ultimate goal.


Recommended