Total Quality Management

BUS 3 142

Mr. Jess Marino Spring, 2013

Agenda

Introduction

Green sheet Review

Additional comments on the course Initial Lecture

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Course Overview and Objectives

Defining various dimensions and definitions of Quality and developing the ability to determine how to best match the appropriate methods and tools across multiple environments, industries, business processes, and customer preferences Introducing and mastering specific tools, techniques, and calculations for data gathering and analysis to enable fact-based decision-making
Applying the Total Quality principles introduced in sections one and two to enhance business performance and results in Supply Chain Management, Product and Process Design, Service Operations, and Supplier Selection and Management. Understanding how Total Quality principle have a significant impact on overall business results tied to the effectiveness of its Leaders and Managers

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Student Learning Objectives for the Course

Understand the scope and definitions of Total Quality Management Recognize how Customers and Markets influence quality Understand Develop skills in Statistical Process Control and other quality monitoring techniques Discover that quality management is not limited to the quality function but also focuses on how critical the quality of an organizations management and leadership are to its success Leveraging knowledge of quality management to achieve career goals

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Semester Calendar

Introduction to Quality Management

Eight Quality Dimensions - Products

Performance Features Reliability Conformance Durability Serviceability Aesthetics

Perceived Quality

Can vary in importance based on the requirements, tastes, and expectations of the Customer. Can also vary across functional groups within an organization

* Adapted from Foster, Quality Management, Fourth Edition, Prentice Hall

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Five Quality Dimensions - Service

Tangibles Reliability Responsiveness Assurance Empathy

Unlike product quality, with Service quality the Customer can be directly involved. Service quality can also be directly applicable to career performance

* Adapted from Foster, Quality Management, Fourth Edition, Prentice Hall

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Functional Perspectives on Quality

Different groups in an organization emphasize different Quality Dimensions Supply Chain Operations

Engineering
Marketing

Finance
Human Resources

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Functional Perspectives on Quality Supply Chain

Supplier Qualification Supplier Selection Supplier Development Inspection, Test, and Sampling Process mapping and Value mapping

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Functional Perspectives on Quality - Operations

Foster, Quality Management, Fifth Edition, Prentice Hall

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Quality Impact on Operations

Maximum yields Lowest cost Least rework Repeatability Predictability

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Functional Perspectives on Quality - Engineering

Product and Process (concurrent engineering) Life testing Redundancy Design for Manufacturing and Assembly Statistical Process Control

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Functional Perspectives on Quality

Marketing Voice of the Customer Perceived quality Pricing and Value Finance Time horizons and Payback times Calculating costs of poor quality Business Case development

Avoiding diminishing returns

Human Resources Employee empowerment

Organizational design
Measurement and Reward Systems

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The Three Spheres of Quality

Quality Management

Quality Assurance

Quality Control

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Quality Control
Monitoring Process capability and stability Measuring process performance Reducing process variability Optimizing key metrics Acceptance sampling Developing and maintaining Control Charts

* Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall

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Quality Assurance

Failure Mode and Effects Analysis (FMEA) Concurrent Engineering Design Of Experiments Process improvement Design teams Reliability and durability

* Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall

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Quality Management

Planning for quality improvement Creating a quality organization culture Providing leadership and support Providing training and retraining Employee recognition Communication

* Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall

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Basic Assumptions

The HIGHER the Quality, the higher the Customer Service, the lower the Inventory, and the lower the Cost

The LOWER the Quality, the lower the Customer Service, the higher the Inventory, and the higher the Cost

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The Contingency Perspective

There is no One Size Fits All way to manage Quality. Good quality managers learn many tools and techniques, develop the ability to recognize which approaches are most appropriate in different situations, and deploy the right solution and improvement plan for the right situation

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Quality Management is BUSINESS Management

The Quality Discipline continues to Evolve

Early 1900s 1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s

Scientific management Statistical Process Control Acceptance sampling Military standards Deming & Juran in Japan Taguchi method and other tools Quality as "strategic"; major adoption in the US Lean, TQM, Teams Reengineering and Six Sigma Supply Chain Mgmt, Lean Six Sigma

* From Table 2-1, Foster, Quality Management, Fifth Edition, Prentice Hall
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Demings 14 Points
1. Create Constancy of Purpose 2. Adapt a new philosophy 3. Cease mass inspection 4. End awarding business on the basis of price tag 5. Constantly improve the system 6. Institute training on the job 7. Improve leadership 8. Drive out fear 9. Break down barriers between departments 10. Eliminate slogans 11. Eliminate work standards

12. Remove barriers to pride

13. Institute education and self-improvement 14. Put everybody to work
* Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall
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Constancy of Purpose
Highest quality keeps you Competitive
Quality becomes a competitive advantage

Improvement takes time

Keeping people employed is a management responsibility

Quality is not negotiable

Good quality does not add to cost but reduces cost

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Cease Mass Inspection

Design quality in
Implement error-proofing as much as possible

Inline monitoring
Responsibility for quality does not belong to the quality department Non conforming product inevitable escapes through the inspection process

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Improve Leadership and Drive out Fear

Management is most responsible for Quality and has the most leverage Supervisors are to help people Training Removing barriers Encouraging learning Empowering problem identification, root cause analyisis, and improvement suggestions Driving out Fear Employees cannot improve quality and efficiency and then get laid off Healthy dissatisfaction is a good thing Identifying problems cannot be tied to blame Changing processes and methods are often necessary Let data lead to objectivity

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Eliminate Work Standards

Remove the temptation to purposely produce low quality goods
Establish metrics that span the entire process, rather than individual steps or machines Avoid conflicting objectives Output vs. Units scrapped Output vs. Throughput Cost vs. Inventory Teams (hourly workers and Managers together) are still responsible for output and quality

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Quality Improvement Planning (Juran)

Plan your work and work your plan

Focus on the most important problems first (80/20 Rule) Manage a portfolio of improvement initiatives, balancing continuous improvement with breakthrough changes (Evolutionary & Revolutionary) Plan and execute discrete projects for improvement Business case Project plans Deliverables and milestones Measurable business results

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Paretos Law The 80/20 Rule

The majority (80%) of problems are the result of relatively few (20%) causes

Focus your improvement efforts on the few causes that make the BIGGEST DIFFERENCE to your business

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Diminishing Returns applied to Quality Management

Foster, Quality Management, Fifth Edition, Prentice Hall

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Key Points from Ishikawa

Involve ALL employees in improving quality

Training Democratizing statistics Attack root causes Know the requirements of the Customer Statistics Know what the statistics are telling you (e.g. Averages vs. distribution) Recognizing randomness from non-randomness Variabiliy drives poor quality

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Other Points for Consideration

Toguchi Method: Robust Design Concept design Parameter design Tolerance design Crosby Quality is free
Quality Management is strategic to the entire enterprise; not one, or a few, functional groups

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