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Operat ions

Management

Top ic 9 -Qual i ty Management

(TQM)

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Quality Management

Object ives

be able to understand modern

concepts o f qual ity and dimensions

of qual i ty

be able to discu ss employee

involvement and JIT in Total Qual ity

Managementbe able to descr ibe basic qual ity too ls

Introdu ct ion to ISO

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QUALITYis the ability of aproduct or service to consistently

meet or exceed customer

expectations.

What Does the Term QUALITY

means?

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Traditional vs. Modern Concept of

Quality Control

Tradit ional Modern

One person , smal l

g roup

Include everyone from raw

material, produc tivi ty,

design, process, top

management

Find m istakes after

complet ion, at the end

of l ine

Find where the m istakes

m ight o ccu r, before

complet ion

No speci f ic methods,

based on experience

Use stat ist ical ; contro l

char ts to moni tor

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Dimension of Quality

Performancemain character ist ics

Special Featuresextra character ist ics

Conformancehow wel l corresponds to

expectat ion Reliabi l i tyconsis tency of per formance wi thout

breakdown

Durabi l i tyuseful l i fe t ime

Safetysafe to use as d irected

Aesthet icsnice to look at

Serv ice A fter Salehandl ing of complaints, helpl ines and checking custom er sat isfact ion

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Consequences of Poor Quality

Repu tat ion & image w i ll su f fer

Pay special attent ion to po tent ial l iab i l i ty

due to inju ry, damage or even death

Rework have to be done, s low the process

to accommodate rewo rk , h igh scraps

Inc rease cost o f rewo rk, sc rap, repair &replacement, legal expenses

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Responsibility for Quality

Top management

Design

Procurement

Product ion/operat ions

Quali ty assurance

Packaging and sh ipping

Market ing and sales

Customer service

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Cost of Quality

Internal Cost

Failure cost: results from production of defectiveparts before delivery (rework, scrap, downtime)

Appraisal cost: evaluating products (lab testing,inspector)

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

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

customer)

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Quality Certification

ISO 9000

Set of international standards on quality managementand quality assurance, critical to internationalbusiness

ISO 14000

A set of international standards for assessing acompanys environmental performance

Must go through process document ing procedures

Then onsite visi t to veri fy, award cert i f icate & series o faudi ts

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Total Quality Management

New att i tude towards qual i ty using Three Phi losophies

Continuous improvement KAIZEN

Involvement of everyone in the organizat ion

Customer sat isfact ion

Expands the tradi t ional view of qual ity beyond looking

on ly at the qual ity of the final prod uct o r service but to

look at quali ty of every aspect o f the process

Not only on prod uct, but also services e.g. banking,

hospi ta l

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Elements of TQM

Uti lizes educat ion & training everyone

Encou rages empowerment of the employees in

the wo rk p lace, team appro ach

Promo te understanding & ful f il ling the needs ofcustomers

Define quali ty in term of customer requirement

Use stat ist ical reason ing w ith data to solve

prob lems & to improve

View qual ity improvement as never end ing

quest to improve the process

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Employee Involvement

In every step of p roduc t ion p rocess,

invo lve direct ly w i th the system

Everyone mus t be responsib le on thei rwork

Bu i ld communicat ion network,

employees w i th superv isor (open

m inded, support ive)

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Relationship between TQM and

Just-In-Time

JIT emphasizes con t inuous improvement

& enforces problem solv ing s ince des ign

to p roduc t ion stage; del iver jus t asneeded

Target less inven to ry, less sc rap, rewo rk ,

reduce costLim i ts po tent ial sources o f error , give

ear ly warning , produce in sm al l batches

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TQM Lead to Lower Production

Cost

Emphasize the qual ity f rom supp l ier &

dist r ibutor

Reduce prevent ion cost ( less po tent ia l

for defect ive parts from employees)

Reduce cost o f inspect ion

Reduce cos t of rewo rk, replacement

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Obstacles to Implementing TQM

Lack o f:

Company-wide defini t ion of qual i ty

Strategic p lan for change

Customer focus

Real emp loyee empowerment

Emphasis on sho rt -term f inancial resu l ts

Time to devote to qual ity in i t iatives

Leadership

View of quality as a quick fix

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The PDSACycle

Plan

Do

Study

Act

PDCA

Check

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The Process Improvement Cycle

Implement the

Improved process

Select a

process

Study/document

Seek ways to

Improve it

Design an

Improved process

Evaluate

Document

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Basic Quality Tools

There are a number of too ls that

can be used for p rob lem solv ing

and process improvement

Tools aid in data co l lect ion and

interpretat ion , and pro vide the

basis for decis ion making

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Basic Quality Tools

1. Flowcharts

2. Check sheets

3. His tog rams

4. Pareto Charts

5. Scatter d iag rams

6. Contro l charts

7. Cause-and-effec t d iagrams

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FLOWCHART

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

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/

/

/ / /// /

// ///

// ////

///

//

/

Hour

Defec t 1 2 3 4 5 6 7 8

A

B

C

/

/

//

/

(a) Check Sheet: An organized method of

reco rding data

Figure 6.6

CHECK SHEETS

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Histogram

(f ) Histog ram : A distr ibu t ion showing the

frequency of occu rrences of a var iable

Figure 6.6

Distr ibut ion

Repair time (m inu tes)

Frequency

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Scatter Diagram

(b) Scatter Diagram : A graph of the value

of one variable vs . another variable

Absenteeism

P

ro

duc

tiv

ity

Figure 6.6

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CONTROL 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

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CAUSE-AND-EFFECT DIAGRAM

Effect

MaterialsMethods

EquipmentPeople

Environment

Cause

Cause

Cause

Cause

Cause

CauseCause

Cause

CauseCause

Cause

Cause

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Benchmarking Process

Ident i fy a cr i t ical process that needsimprov ing

Iden t i fy an organ izat ion that excels inth is process

Con tact that organizat ion

Analyze the data

Impro ve the cr i t ical process

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Lets Recap!

What are the dimens ions of quali ty?

Whose responsib le for quali ty?

Name some of the basic qual ity too ls.

What are the consequences o f poorqual i ty?

Which qual ity cert i ficate involve w ithenv i ronmental performance?

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Summary

Understand the Concept of TotalQual i ty Management

Sign if icant Impact o f Total Qual i tyManagement in Modern Manu factu r ing

Next c lass , we wi l l have some

calcu lat ion s in Stat ist ical Qual i tyContro l