Chapter 20 Managing improvement the TQM approach

Source: Corbis/Munshi Ahmed

Slack, Chambers and Johnston, Operations Management 5th Edition Nigel Slack, Stuart Chambers, and Robert Johnston 2007

The quality gurus

Philip Crosby W. Edwards Deming Armand Feigenbaum Kaoru Ishikawa Joseph Juran Genichi Taguchi Quality is free the optimum is zero defects Demings 14 points How to use statistics Total quality control Quality circles and cause-and-effect diagrams Quality as fitness for use, rather than conformance to specification Loss function Minimize variation

Slack, Chambers and Johnston, Operations Management 5th Edition Nigel Slack, Stuart Chambers, and Robert Johnston 2007

Total quality management can be viewed as a natural extension of earlier approaches to quality management
Makes quality central and strategic in the organization Broadens the organizational responsibility for quality Solves the root cause of quality problems Prevents out of specification products and services reaching market Quality is strategic Teamwork Staff empowerment Involves customers and suppliers Quality systems Quality costing Problem solving Quality planning Statistics Process analysis Quality standards Error detection Rectification

Slack, Chambers and Johnston, Operations Management 5th Edition Nigel Slack, Stuart Chambers, and Robert Johnston 2007

Total Quality Management

Includes all parts of the organization Includes all staff of the organization
Source: Corbis/Richard T Nowitz

Includes consideration of all costs Includes every opportunity to get things right Includes all the systems that affect quality Never stops

Slack, Chambers and Johnston, Operations Management 5th Edition Nigel Slack, Stuart Chambers, and Robert Johnston 2007

The cost of rectifying errors increases more rapidly the longer they remain uncorrected in the development and launch process
10000 Cost of rectifying error

1000

100 10 1 Pilot Market use production

Concept

Design

Prototype

Stage in development and launch process

Slack, Chambers and Johnston, Operations Management 5th Edition Nigel Slack, Stuart Chambers, and Robert Johnston 2007

Increasing the effort spent on preventing errors occurring in the first place brings a more than equivalent reduction in other cost categories
Total cost of quality

Appraisal
Costs of quality

Internal failure

Appraisal

Prevention
Time

Slack, Chambers and Johnston, Operations Management 5th Edition Nigel Slack, Stuart Chambers, and Robert Johnston 2007

The pattern of some TQM programmes which run out of enthusiasm

Effectiveness of the TQM initiative
Introduction
Learning and understanding

Growth
Increasing enthusiasm

Levelling off
Starting to hit the more difficult problems

Disillusionment
Waning enthusiasm

Repackaging
Attempts to revitalize the programme

Slack, Chambers and Johnston, Operations Management 5th Edition Nigel Slack, Stuart Chambers, and Robert Johnston 2007

Changing Quality Assumptions

Reactive Inspection Proactive Prevention

AQL
Blame placing Quality cost more Quality is technical Schedule first Defects hidden

ZD
Problem solving Quality cost less Quality is managerial Quality first Defects highlighted

Slack, Chambers and Johnston, Operations Management 5th Edition Nigel Slack, Stuart Chambers, and Robert Johnston 2007