Total Quality Management - Introduction

Description
quality and importance of quality along with costs associated with it. It also includes Malcolm Baldrige National Quality Award and objectives of this award. What are the different phases of quality assurance. It explains seven tools used fo quality control.

Total Quality Management

Defining Quality
• Perfection

• Consistency
• Conformance to specifications • Eliminating waste • Doing things right the first time • Delighting or pleasing customers • Compliance with policies and procedures • Q=P/E P-Performance E-Expectations

Formal Definitions of Quality
• Product-based definition: product excellence and quantities of product attributes • User-based definition: fitness for intended use • Value-based definition: quality vs. price • Manufacturing-based definition: conformance to specifications

Growth of Modern Quality Management

Service quality

Performance excellence
Improved product designs

Manufacturing quality

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Quality and Profitability

Cost of Quality
• Prevention costs – investments made to keep nonconforming products from occurring and reaching the customer • Appraisal costs – investments made to ensure conformance to requirements • Internal failure costs – costs due to unsatisfactory quality found before delivery to customers • External failure costs – costs that occur after poor-quality products reach the customer

The Costs of Quality: Traditional View

Gurus of Modern Quality Management

• W. Edwards Deming (14 points, special vs. Common variation • Joseph M. Juran (Fitness for use, Quality Trilogy) • Philip B. Crosby (quality is free, zero defects) • Kaoru Ishikawa (cause and effect diagram, quality circles) • Genichi Taguchi (loss function)

Malcolm Baldrige National Quality Award
• This award was created by the US government in 1987 to help improve the quality and competitiveness of American companies by recognizing the highest-performing organizations in the manufacturing, service, healthcare, education, and small-business categories. Objectives • Help improve quality in U.S. companies • Recognize achievements of excellent firms and provide examples to others • Establish criteria for evaluating quality efforts • Provide guidance for other American companies

Principles of Total Quality Management

• • • • •

Customer and stakeholder focus Process orientation Continuous improvement and learning Employee engagement and teamwork Management by fact Visionary leadership and a strategic orientation
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Components of TQM

Customer and Stakeholder Focus



• •

Customer is principal judge of quality Organizations must first understand customers’ needs and expectations in order to meet and exceed them Organizations must build relationships with customers Customers are internal and external

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Three Levels of Quality
• Organizational level: meeting external customer requirements • Process level: linking external and internal customer requirements • Performer/job level: meeting internal customer requirements

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Kano Customer Need Model
Dissatisfiers
Those needs that are EXPECTED in a product or service. These are generally not stated by customers but are assumed as given. If they are not present, the customer is dissatisfied.

Satisfiers Exciters / Delighters

Needs that customers SAY THEY WANT. Fulfilling these needs creates satisfaction. New or Innovative features that customers do not expect. The presence of such unexpected features leads to high perceptions of quality.

Importance of Customer Satisfaction and Loyalty
• “Satisfaction is an attitude; loyalty is a behavior” • Loyal customers spend more, are willing to pay higher prices, refer new clients, and are less costly to do business with. • It costs five times more to find a new customer than to keep an existing one happy. • A firm cannot create loyal customers without first creating satisfied customers. • The American Management Association estimates that the average company loses as many as 35 percent of its customers each year, and that about two-thirds of these are lost because of poor customer service.

Customer-Driven Quality Cycle
Customer needs and expectations (expected quality) Identification of customer needs Translation into product/service specifications (design quality) Output (actual quality) Customer perceptions (perceived quality)
measurement and feedback

PERCEIVED QUALITY is a comparison of ACTUAL QUALITY to EXPECTED QUALITY

Phases of Quality Assurance
Inspection of lots before/after production
Acceptance sampling

Inspection and corrective action during production
Process control

Quality built into the process
Continuous improvement

The least progressive

The most progressive

Some Tools for Quality Improvement
• • • • • • Taguchi Methods (Robust Design) Poke-Yoke Quality Function Deployment Benchmarking Statistical Process Control FMEA

3 Sigma and 6 Sigma Quality
Lower specification
1350 ppm 1.7 ppm

Upper specification
1350 ppm 1.7 ppm

Process mean +/- 3 Sigma +/- 6 Sigma

Six Sigma
• Six Sigma: an approach based heavily on the statistical and fact-based data and tools
– The dominant quality management framework used in manufacturing and service organizations – Based on the philosophies of gurus (Deming, Juran, and others) – Has aspects in common with TQM and the Baldrige Framework – Originally developed as a framework for implementing quality improvement approaches at Motorola

Six Sigma
• The number six sigma refers to the objective that no measure should be less than six standard deviations from the desired standard to achieve almost perfection (99.9997 percent error-free products). • The Six Sigma way of thinking is organized around DMAIC (Define, Measure, Analyze, Improve and Control).

Seven QC Tools

Chapter 15 SSSssSeven Tools of Quality Management

1. Flowcharts: process mapping to identify the sequence of activities or flow of materials/information in a process. 2. Run Charts and Control Charts: line graph with data plotted over time; control charts include control limits. 3. Check sheets: simple tools for data collection, ensure completeness. 4. Histograms: graphically represents frequency of values within a specified group. 5. Pareto Analysis: separates vital few from the trivial many causes; provides direction for selecting project improvement. 6. Cause-and-Effect Diagrams: represents chain of relationships; often called a fishbone diagram. 7. Scatter Diagrams: graphical component of regression analysis.



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