Total Quality Management: TQM TQM Tools and Techniques Case 7.1 Process Variation Exercise

Total Quality Management
TQM
Deming, Crosby, Juran
TQM Tools and Techniques Case 7.1 Process Variation Exercise
Total Quality Management
The integration of all processes and functions of the firm in the task of ensuring a products quality throughout its life cycle. Measurement of Success:
100% Customer Satisfaction Continuous Improvement
Method of Achievement:
Key Issues in TQM
Requires a cultural change based on a management philosophy of meeting customer requirements through continuous improvement. Delco - lip service GM - more work for same pay Top Management must support TQM
TQM = MGT + Statistics

Top managers serve as role models Use of quality processes and tools Encourage communication Put money where mouth is:

invest in training rewards
Mechanisms of Change

Training Communications Recognition Teamwork Customer Satisfaction Programs
Axioms of TQM
Commitment to Quality Extensive Use of Scientific Tools, Technologies and Methods Total Involvement in the Quality Undertaking Continuous Improvement
Demings Deadly Sins
Lack of Constancy Concentration on Short-Term Profits Over-reliance on Performance Appraisals Job Hopping Overemphasis on Visible Figures
Juran

Defined Quality and Cost of Quality Quality Habit Quality Trilogy University Breakthrough Sequence
Deming vs. Juran

Deming Orientation Personnell emphasis Quality Goal Indicators of quality Variance Process Everyone in firm Perfection More sublte, more qualitative Target of TQM Juran Output / Product Middle managers Lower if costs/benefit not justified Quantitative Can be tolerated
Crosbys Absolutes for Quality Management
Quality is Conformance to Requirements, Not Goodness Quality Systems Amount to Prevention Zero Defects Define the Performance Standard Measurement of Quality is the Price of Nonconformance
TQM Process Tools

Check Sheets Pareto Analysis Cause and Effect (Fishbone) Diagrams Process Flow Diagrams Histograms
Process Capability Measures

Control Charts Scatterplots Plan-Do-Check-Act Cycles Brainstorming
Process Capability Measure Cp

Cp = Specification width / Process width An indication of the variability of a process Specification width (S) = the interval between the lower and upper limits on performance data for a product or process Process width (P) = the interval between the lower an upper ends of the distribution of process performance data In general - larger Cp indicates a more reliable and predictable process
Process Capability Measure Cpk

Adjusts for any difference between the center of a distribution and the midpoint of the specification Cpk = (1-K)Cp, where K = abs[D-Xbar]/(S/2) = {[1- (abs[D-Xbar]/(S/2)]}{S/P} D = the design center of the specification Xbar = process average Effectively measures both variability and capability High Cpk indicates low variance and a properly centered distribution of performance data
TQM Design Tools

QFD House of Quality Concurrent Engineering Hoshin Management
TQM Design Tools:
QFD
Quality Function Deployment - a set of methods to identify a of the major requirements of a firms customers and to evaluate how well the designs of product and OM processes meet or exceed those requirements
QFD links four matrices: 1. Customer requirements planning matrix 2. Technical features deployment matrix 3. Process plan and quality control charts 4. Translate critical process and product parameters into specifications for operations for plant personnel
TQM Design Tools:
House of Quality
Interrelationships
Technical Features
Voice of the Customer Relationship between Customer Desired Traits and Technical Features
Importance Assessment of Traits to of Customer Competition
Importance of Technical Features
TQM Design Tools:
House of Quality: Steps for Generation

1. Identify Customer Attributes
2. Identify Supporting Technical Characteristics 3. Correlate Customer Attributes with Supporting Technical Features 4. Assign Priorities to Customer Requirements and Technical Features 5. Evaluate Competitors Stances and Products 6. Identify Technical Characteristics to Deploy in the Final Product Design
TQM Design Tools: Hoshin Management

Work towards dramatic, strategic breakthroughs for the organization 5 Key principles: 1. A planning and implementation process is defined to foster continuous improvement throughout the PDCA cycle 2. Identify key functions and systems within the firm that need to be improved for the firm to achieve its strategic objectives 3. It encourages appropriate cross-functional and vertical participation in planning to execution for achieving yearly objectives 4. All planning and execution are based on fact 5. Goals and action plans reflect the true capabilities of the organization
Implementing TQM

Define the mission Identify the system output Identify customers Determine customer requirements Develop a customer specification that details customer requirements and expectations. Determine the activities required to fulfill customer requirements and expectations
TQM Implementation

Baldrige Award initiated in 1987 Sets a national set of standards that can be used as a benchmark for TQM. Hundreds of thousands of major firms use the Baldrige criteria as a guide for quality improvement programs. A formula or template for TQM
Baldrige Award
not a contest not prescriptive not a guarantee of high quality Customers dictate it Formalized system in place not a contest not prescriptive not a guarantee of high quality
Baldrige Award
To raise the consciousness of U.S. business leaders regarding the issue of quality. To provide a comprehensive framework for measuring the quality efforts of U.S. businesses. To provide U.S. business with a template for a thorough TQM system.
Baldrige Award
Winners include:

Motorola (1988) Xerox (1989) Wallace Company (1990) defunct
It takes 8 to 12 years to develop a quality system that is competitive for the award
Baldrige Award: 7 Categories

1.0 2.0 3.0 4.0 5.0 6.0 7.0
Leadership (110) Strategic Planning (80) Customer and Market Focus (80) Information and Analysis (80) Human Resource Development (100) Process Management (100) Business Results (450)
Business Results (450)

Customer Satisfaction Results (130) Financial and Market Results (130) Human Resource Results (35) Supplier and Partner Results (25) Company Specific Results (130)
Quality Function Deployment
Incorporate the voice of the customer into the design process.
ISO 9000
A generic term for a series of standards sponsored by the Organization for Standardization. Specifies the quality systems to be established by manufacturing and service firms. A system for establishing, documenting, and maintaining a system for ensuring the quality of the output of a process.
ISO 9000

Certification represents a commitment Certification is by facility

review the facility,s quality manual audit the facilitys process unannounced audits annual re-certification
ISO 9000

Means of gaining access to EC markets Competitive requirement Customers dictate it Formalized system in place

not a contest not prescriptive not a guarantee of high quality
TQM
Baldrige - You have to demonstrate results and achievement ISO - just looks for a system Both are stepping stones to becoming a TQM organization

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Total Quality Management

Deming, Crosby, Juran

TQM Tools and Techniques Case 7.1 Process Variation Exercise

Total Quality Management

100% Customer Satisfaction Continuous Improvement

Key Issues in TQM

TQM = MGT + Statistics

invest in training rewards

Training Communications Recognition Teamwork Customer Satisfaction Programs

Demings Deadly Sins

Deming vs. Juran

Crosbys Absolutes for Quality Management

TQM Process Tools

Process Capability Measures

Process Capability Measure Cp

Process Capability Measure Cpk

TQM Design Tools

QFD House of Quality Concurrent Engineering Hoshin Management

TQM Design Tools:

TQM Design Tools:

Importance Assessment of Traits to of Customer Competition

Importance of Technical Features

TQM Design Tools:

House of Quality: Steps for Generation

TQM Design Tools: Hoshin Management

Motorola (1988) Xerox (1989) Wallace Company (1990) defunct

Baldrige Award: 7 Categories

1.0 2.0 3.0 4.0 5.0 6.0 7.0

Business Results (450)

Quality Function Deployment

Incorporate the voice of the customer into the design process.

Certification represents a commitment Certification is by facility

not a contest not prescriptive not a guarantee of high quality

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