Total Quality Management

1
Total Quality Management

• TQM
• Deming, Crosby, Juran
• TQM Tools and Techniques
• Case 7.1
• Process Variation Exercise

2
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
• Method of Achievement
• Continuous Improvement

3
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

4
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

5
Mechanisms of Change

• Training
• Communications
• Recognition
• Teamwork
• Customer Satisfaction Programs

6
Axioms of TQM

• Commitment to Quality
• Extensive Use of Scientific Tools, Technologies
  and Methods
  
• Total Involvement in the Quality Undertaking
• Continuous Improvement

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Demings Deadly Sins

• Lack of Constancy
• Concentration on Short-Term Profits
• Over-reliance on Performance Appraisals
• Job Hopping
• Overemphasis on Visible Figures

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Juran

• Defined Quality and Cost of Quality
• Quality Habit
• Quality Trilogy
• University Breakthrough Sequence

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Deming vs. Juran
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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

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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

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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

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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 absD-Xbar/(S/2)
• 1- (absD-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

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TQM Design Tools

• QFD
• House of Quality
• Concurrent Engineering
• Hoshin Management

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TQM Design Tools QFD

• Quality Function Deployment - a set of methods to
  identify all 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
  

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TQM Design Tools House of Quality
Interrelationships
Technical Features
Voice of the Customer
Relationship between Customer Desired Traits and
Technical Features
Importance of Traits to Customer
Assessment of Competition
Importance of Technical Features
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TQM Design Tools House of QualitySteps 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

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TQM Design ToolsHoshin 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

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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

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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

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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

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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.

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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
  

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Baldrige Award 7 Categories

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

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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)

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Quality Function Deployment

• Incorporate the voice of the customer into the
  design process.

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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.

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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

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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

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TQM

• Baldrige - You have to demonstrate results and
  achievement
  
• ISO - just looks for a system
• Both are stepping stones to becoming a TQM
  organization