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Subagyo
Iegmubetter
27.4.1998
ABB
(http://www.cartoonstudio.co.uk/Pages/kmeters1.html)
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Definition of Quality
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What is Quality?
Management approach of an organisation, centered on quality, based on the participation of all its members and aiming at long term success through customer satisfaction, and benefits to all members of the organisation and to society
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Total quality management is defined as managing the entire organization so that it excels on all dimensions of products and services that are important to the customer
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TQM Wheel
Customer satisfaction
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Nature of Quality
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Customers expectations of quality are not the same for different classes of products or services. Best-in-class quality means being the best product or service in a particular class of products or services. Being a world-class company means that each of its products and services are considered best-in-class by its customers.
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Performancerelative to customers intended use Featuresspecial characteristics Reliabilitylikelihood of breakdowns, malfunctions Serviceabilityspeed/cost/convenience of servicing Durabilityamount of time/use before repairs Appearanceeffects on human senses Customer servicetreatment before/during/after sale Safety user protection before/during/after use
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Determinants of Quality
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Quality of design products/service designed based on customers expectations and desires Quality capability of production processes processes must be capable of producing the products designed for the customers Quality of conformance capable processes can produce inferior product if not operated properly Quality of customer service a superior product does not mean success; must have quality service also Organization quality culture superior product and service requires organization-wide focus on quality
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Costs of Quality
Scrap and rework - rescheduling, repairing, retesting Defective products in the hands of the customer - recalls, warranty claims, law suits, lost business, Detecting defects - inspection, testing, . Preventing defects - training, charting performance, product/process redesign, supplier development, .
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This is a central theme of all Quality approaches Detection allows a mistake or error to become a DEFECT!
Passed on to next process undetected Much more difficult to identify Costs more to put right Difficult to identify the root cause
Can often pass through the system to the external customer! Preoccupied with the OUTPUT from the process
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Process Performance
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Easy to identify the source of error Costs less to rectify Rapid solution
Preoccupied with the Process itself rather than the output of the process
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% of Products Inspected
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Design of Product & Process Action on the Process People Equipment Material Method Measurement Environment Process Performance
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Impact on Business
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Delivery, communication, responsiveness, product/service price Process and information quality, cost Process and information quality, cost Raw materials and service quality, price
Internal customers
Internal suppliers
External suppliers
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Customer-Supplier model
Process A
Customer Supplier Goods & Services
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Process B
Customer Supplier
Process C
Customer Supplier
Your Supplier
Feedback
Your Process
Feedback
Your Customer
Requirements
Requirements
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Supplier issues
Who are my suppliers? What are their requirements? How do I communicate my requirements? Does my supplier have the capability to meet my requirements? Do they continually meet my requirements? Do I inform they of changes to my requirements?
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Customer issues
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Who are my customers? What do they need? How do/can I find out what their requirements are? How can I measure my ability to meet those requirements? Do I have the capability to meet those requirements? Do I continually meet those requirements? How do they measure my performance? How do I monitor changes in my customers requirement?
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Inspection
Quality Control
Quality Assurance
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Inspection
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Activity such as measuring, examining, testing, or gauging one or more characteristics of an entity and comparing the results with specified requirements in order to establish whether conformity is achieved for each characteristic
Application points within the process Third party inspection or operator self inspection Decisions scrap, rework, modification, concession
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Inspection
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Compared to known standard Lack of ownership After the event Lack of feedback to source
Inspection will not provide any basis for process improvement Debatable if it provides an effective screening against defects reaching the external customer
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Quality Control
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Defined as (ISO8402)
Operational techniques and activities that are used to fulfil requirements for quality
Developed from inspection of methods, systems and tools & techniques More emphasis on feedback Main mechanism still inspection based
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Quality Control
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Limited use of operator self inspection Reliance on inspection to catch non-conforming work
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Quality Control
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QC is the systematic assessment of goods and services to check their conformance It will not improve quality, just highlight when it is not present In many cases QC does not identify the root cause of the non-conformance
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Quality Assurance
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Defined as (ISO8402)
implemented within the quality system, and demonstrated as needed to provide adequate confidence that an entity will fulfil requirements for quality
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Quality Assurance
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Represents a shift from detection to prevention Planned and systematic actions defined
Existence of mature quality system Greater use of QM tools eg. SPC, QFD Known levels of quality performance and costs ISO 9000 or major customer approval
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Quality Assurance
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QA systems aim to proceduralise organizational activities to increase uniformity and conformity Adoption and use of third party approval, such as a major customer
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1. 2. 3. 4.
Define policies and objectives. Ensure they are understood and accepted. Specify roles, responsibilities, and authorities. Ensure they are understood and accepted. Specify and communicate expectations. Identify and allocate resources to achieve them. Strive to improve.
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5.
6.
7.
8.
Ensure people are competent at the work they do. Ensure the right people have the right information at the right time. Seek and use relevant experience. Plan and control the work.
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Use the right materials, tools, and processes. Control any changes to them. 10. Assess work to ensure it meets expectations. 11. Identify and remedy errors and deficiencies. 12. Periodically review management processes to improve effectiveness and efficiency.
9.
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Represents the most advanced stage of quality development A Management philosophy Application of QM to all aspects of business
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Focused on the requirements of the customer Recognizes the importance of suppliers Company wide approach
Continual improvement Integration of all quality systems and procedures Development of organizational culture
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TQM Principles
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Internal customer supplier relationship Continuous Improvement Teamwork Employee participation/ development Training and education Suppliers and customers integrated into the process Honesty, sincerity & care
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Along the way its gets harder People get left behind Fall out and it feels like youre the only one trying!
But eventually it gets to a point when the process gathers speed and becomes unstoppable!!!
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Position before
Improvement
Introduction
of TQM
Time
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Continuous Improvement
Improvement
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Permanency of TQM
6. World Class
5. Award Winners
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Uncommitted
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Not yet started a formal process of quality improvement ISO9000 registered, but not utilised effectively Basic tools & techniques in use from customer pressure No long term plan for quality improvement Not aware of major benefits to be gained through quality
Uncommitted to any long term plan Dont really see any benefit to quality improvement
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Drifters
Existing quality programme for up to 3 years Aware of Received Wisdom of quality gurus Initial programme probably fizzled out Ready for different approach but unsure which Quality improvement still perceived as a programme rather than a process
Drift from one programme to another Change of approach sparked by new senior executive
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Tool-Pushers
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More experience of quality improvement; up to 5 years Will have experience of SPC, Quality Circles, and other Quality Planning tools such as QFD, FEMA, DPA Early success with one approach but has now fallen in to disuse Not all members of the management team are committed to quality; lack of supportive training
Looking for quick fixes and latest management fad Right kind of signal to customers, but under surface a fire-fighting culture still remains
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Improvers
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Extensive experience of ongoing quality improvement Understand that TQM is not a short sprint Adopted a continuous improvement approach Quality Champion culture starting to emerge Company wide education in place and ongoing Demonstrable progress made in critical business areas
Still perhaps reliant on a few key individuals Moving in the right direction, but realize they have a long way to go
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Award Winners
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Leadership culture ingrained throughout the organisation Several successful organizational changes taken place Fully participative organizational culture TQM view sincerely as a way of managing the business
This level marks the end of the TQM apprenticeship Fewer than 200 companies world-wide
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World Class
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Total integration of quality improvement and business strategy Demonstrates sustained award winning performance
All employees share pursuit of never ending customer satisfaction TQM not just a business strategy, but a way of life
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2 Strategic Planning 85
2.1 Strategy Development 40
2.2 Strategy Deployment 45
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6 Process Management 85
6.1 Value Creation Processes 50 6.2 Support Processes 35 ______________________________
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1. 2.
3.
4. 5. 6. 7.
Leadership Strategic Planning Customer and Market Focus Information and Analysis Human Resources Development and Management Process Management Business Results
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The companies formulated a vision of what they thought quality was and how they would achieve it.
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Independent board researches each competing organization, and follows the specific criteria previously mentioned Site visits consist of 4-6 examiners Examiners are all volunteers Appointment to the Board of Examiners is a very prestigious honor
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Exercise
1.
2. 3.
How many companies are given the MBNQA each year? a. 4 b. 8 c. 6 How much are the board of examiners paid for their position? How many key areas of each company are examined by the board during review? a. 10 b. 3 c. 9 d. 7
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Exercise Answers
C; 6 companies are given the award each year 2. Nothing; the board is a group of volunteers of experts from industry, education, government and non-profit organizations 3. 7; there are seven key areas each with a relative number of points adding to the total score
1.
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Quality Gurus
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W. Edwards Deming
Assisted Japan in improving productivity and quality after World War II In 1951 Japan established Deming Prize US was slow in recognizing his contributions Introduced Japanese companies to the Plan-DoCheck-Act (PDCA) cycle (developed by Shewart) Developed 14 Points for managers
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PDCA Cycle
4. ACT 1. PLAN Permanently Identify imimplement provements and improvements develop plan
3. CHECK Evaluate plan to see if it works 2. DO Try plan on a test basis
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quality to achieve organizational goals Refuse to allow commonly accepted levels of poor quality Stop depending on inspection to achieve quality Use fewer suppliers, selected based on quality and dependability instead of price Instill programs for continuous improvement of costs, quality, service, and productivity
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7. Focus supervision on helping people do a better job 8. Eliminate fear, create trust, and encourage two-way communications between workers and management 9. Eliminate barriers between departments and encourage joint problem-solving 10. Eliminate the use of numerical goals and slogans to make workers work harder
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11. Use statistical methods for continuous improvement of quality and productivity instead of numerical quotas 12. Remove barriers to pride of workmanship 13. Encourage education and self-improvement 14. Clearly define managements permanent commitment to quality and productivity
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Quality Gurus
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Philip B. Crosby
Wrote Quality Is Free in 1979 Company should have the goal of zero defects Cost of poor quality is greatly underestimated Traditional trade-off between costs of improving quality and costs of poor quality is erroneous
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Quality Gurus
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Armand V. Feigenbaum
Developed concept of total quality control (TQC) Responsibility for quality must rest with the persons who do the work (quality at the source)
Kaoru Ishikawa
Wrote Guide to Quality Control in 1972 Credited with the concept of quality circles Suggested the use of fishbone diagrams
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Quality Gurus
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Joseph M. Juran
Like Deming, discovered late by US companies Played early role in teaching Japan about quality Wrote Quality Control Handbook Contends that constant adjustment of processes to achieve product quality is not effective Instead, products should be designed to be robust enough to handle process and field variation
Genichi Taguchi
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Vilfredo Pareto
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Vilfredo Pareto (1848-1923) was an Italian economist and a political sociologist. He devised the law of the trivial many and the critical few, known as the 80:20 rule. Paretos Law states that in many business activities 80% of the potential value can be achieved from just 20% of the effort. The remaining 80% of effort shows relatively little return.
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Six Sigma?
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Finance: Measuring the cost of poor quality Industrial Engineering: Design of integrated systems, measurement, problem solving, work analysis Information Technology: Measurement, analysis, and reporting on quality Marketing Research: Competitive standing on quality, understanding customer desires Operations Management: Management of integrated systems
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Operations research: Analyzing product design alternatives for optimization Organizational Behavior: Understanding quality culture, making teams effective. Organizational Effectiveness: Satisfying the needs of both internal and external customers.
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Strategic Planning: Quality as a means of achieving a unique competitive advantage. Systems Engineering: Translating customer needs into product features and process features Value Engineering: Analysis of essential functions needed by customer to find the lowest cost way of providing these functions that meet quality, reliability, and performance requirements.
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Iegmubetter
27.4.1998
Programs Often Arise From A Tacit Collusion Among Senior Executives, Staff Groups, and Consultants
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For executives: The appearance of quick, painless, measurable results For Internal Staff: Increased responsibility & visibility For Consultants: A steady income stream
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Unclear strategy and conflicting priorities Leadership style - tops down or laissez faire An Ineffective top team Poor coordination Closed vertical communication/low trust Inadequate leadership/management skills and development in organization
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Quality of Direction
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Quality of
Poor Coordination Across Functions & Businesses
Learning
Quality of Implementation
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A quality culture occurs when leaders have the will and skill to engage their organization in an inquiry process about how well their organization and leadership fits their espoused strategy and values.
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