11-1 TQM and Quality Tools

Chapter 11

TQM &
Quality Tools

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
11-2 TQM and Quality Tools

Total Quality Management

A philosophy that involves everyone in

an organization in a continual effort to
improve quality and achieve customer
satisfaction.

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
11-3 TQM and Quality Tools

The TQM Approach

• Find out what the customer wants
• Design a product or service that meets
or exceeds customer wants
• Design processes that facilitates doing
the job right the first time
• Keep track of results
• Extend these concepts to suppliers

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
11-4 TQM and Quality Tools

Elements of TQM
• Continual improvement
• Competitive benchmarking
• Employee empowerment
• Team approach
• Decisions based on facts
• Knowledge of tools
• Supplier quality
• Champion

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
11-5 TQM and Quality Tools

Continuous Improvement

• Philosophy that seeks to make never-

ending improvements to the process of
converting inputs into outputs.
• Kaizen: Japanese
word for continuous
improvement.

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
11-6 TQM and Quality Tools

Quality at the Source

• The philosophy of making each

worker responsible for the quality of
his or her work.

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
11-7 TQM and Quality Tools

Obstacles to Implementing TQM

• Lack of:
– Company-wide definition of quality
– Strategic plan for change
– Customer focus
– Real employee empowerment
– Strong strong motivation
– Time to devote to quality initiatives
– Leadership

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
11-8 TQM and Quality Tools

Obstacles to Implementing TQM

• Poor inter-organizational
communication
• View of quality as a “quick fix”
• Emphasis on short-term financial results
• Internal political and “turf” wars

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
11-9 TQM and Quality Tools

Basic Steps in Problem Solving

• Define the problem and establish an

improvement goal
• Collect data
• Analyze the problem
• Generate potential solutions
• Choose a solution
• Implement the solution
• Monitor the solution to see if it accomplishes the
goal

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
11-10 TQM and Quality Tools

The PDSA Cycle

Plan

Act

Do

Study
Operations Management, Seventh Edition, by William J. Stevenson
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
11-11 TQM and Quality Tools

• Process Improvement: A systematic

approach to improving a process

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
11-12 TQM and Quality Tools

The Process Improvement Cycle

Select a
process

Document

Study/document

Evaluate

Seek ways to
Implement the
Improve it
Improved process

Design an
Improved process

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
11-13 TQM and Quality Tools

Process Improvement and Tools

• Process improvement - a systematic approach to improving a process
– Process mapping
– Analyze the process
– Redesign the process
• Tools
– There are a number of tools that can be used for problem solving and
process improvement
– Tools aid in data collection and interpretation, and provide the basis for
decision making

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
11-14 TQM and Quality Tools

Basic Quality Tools

• Flowcharts
• Check sheets
• Histograms
• Pareto Charts
• Scatter diagrams
• Control charts
• Cause-and-effect diagrams
• Run charts

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
11-15 TQM and Quality Tools

Check Sheet

Billing Errors Monday

Wrong Account

Wrong Amount

A/R Errors

Wrong Account

Wrong Amount

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
11-16 TQM and Quality Tools

Pareto Analysis
80%
80% ofof the
the
problems
problems
may
may be
be
attributed
attributed to

Number of defects
to
20%
20% ofof the
the
causes.
causes.

Off Smeared Missing Loose Other

center print label

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
11-17 TQM and Quality Tools

Control Chart
Figure11-9

1020
UCL
1010
1000
990
980
LCL

970
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
11-18 TQM and Quality Tools

Cause-and-Effect Diagram
Figure11-10

Methods Materials
Cause
Cause
Cause
Cause
Cause Cause
Environment Effect
Cause Cause

Cause Cause
Cause Cause

People Equipment

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
 11-19 TQM and Quality Tools

Run Chart

0.58
0.56
Diameter

0.54
0.52
0.5
0.48
0.46
0.44
1 2 3 4 5 6 7 8 9 10 11 12
Time (Ho urs )
Time (Hours)
Operations Management, Seventh Edition, by William J. Stevenson
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
11-20 TQM and Quality Tools

Tracking Improvements
Figure11-14

UCL UCL
UCL

LCL
LCL
Additional improvements
LCL Process centered made to the process
Process not centered and stable
and not stable

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
11-21 TQM and Quality Tools

Methods for Generating Ideas

• Brainstorming
• Quality circles
• Interviewing
• Benchmarking
• 5W2H

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
11-22 TQM and Quality Tools

Quality Circles

• Team approach
– List reduction
– Balance sheet
– Paired comparisons

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
11-23 TQM and Quality Tools

Benchmarking Process
• Identify a critical process that needs
improving
• Identify an organization that excels in this
process
• Contact that organization
• Analyze the data
• Improve the critical process

Operations Management, Seventh Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.