Total%20Quality%20Management

1
Total Quality Management

• Lecture 2

2
Types of Quality Control

• Product Quality Control
• Product Control focuses on the output
• Process Quality Control
• Process Control focuses on the input

3
Product/Process Control

• Emphasizes defect detection
• Is after the fact
• High proportion of cost incurred
• Compares product/service to specification
• External to process
• Reactive

• Emphasizes prevention
• Minimizes potential for defects
• Reduce costs
• Compares process results to past process
  performance
• Variation oriented
• Proactive

4
Total Quality Management (TQM)

• Customer expectations in the new economy
• Products/services must be delivered quickly
  (Fast)
• Products/services must have no defects (Right)
• Products/services must be inexpensive (Cheap)
• Products/services must be easy to use (Easy)
• Focus of the organization is to meet or exceed
  the expectations of its customers.

5
TQM

• Statistical Quality Control
• looking for defects in parts or products selected
  through sampling techniques
• Statistical Process Control
• using statistics to monitor production and making
  corrections when the process is out of control
• Zero-Defects (six sigma)
• working to eliminate essentially all defects

6
Japanese Model compared to U.S.

• Traditional Japanese management is becoming
  Westernized
• Mainly applies to larger Japanese corporations

7
Employment

• Japan Lifetime employment
• U.S. Short term employment

8
Careers

• Japan Non-Specialized career path
• Life long job rotation
• U.S. Specialized careers

9
Evaluation Promotion

• Japan Group evaluation promotion
• U.S. Individual evaluation promotion

10
Decision Making

• Japan Participative decision making
• U.S. Individual decision making
• Teams

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Participative Decision Making

• Newest member of department is given charge of
  decision process
• Meets several times with every member of the
  department

12
Participative Decision Making

• 1) I believe that you understand my point of view
• 2) I believe that I understand the other points
  of view

13
Participative Decision Making

• 3) Whether or not I agree with the decision, I
  will support it, because it has been arrived at
  in a fair and open manner

14
Benefits to New Member

• Gets to know other everyone else
• Acquires an in-depth knowledge of an issue

15
Benefits to Department

• New member becomes a valuable asset to the
  department and a resource to others

16
Auto Industry
17
Auto Industry Differences

• Japan vs. U.S. practices

18
of suggestions per worker per year

• Japan 329
• U.S. 2

19
Training Hours

• Japan 370
• U.S. 46

20
Tangible/Intangible Costs

• Rework/repair
• Scrap/discarded material
• Overtime to remake products
• Returns/warranty costs
• Time spent waiting

• Lost reputation
• Lost potential sales
• Lost opportunity for new markets
• Inability to attract good employees

21
Demings 14 Points for Management

• Create constancy of purpose for improvement of
  product and service
• Adopt the new philosophy
• Cease dependence on mass inspection to achieve
  quality
• End the practice of awarding business on the
  basis of price tag

22
Demings 14 Points for Management (cont.)

• Improve constantly
• Institute training on the job
• Institute leadership
• Drive out fear
• Break down barriers between departments

23
Demings 14 Points for Management (cont.)

• ?? Eliminate slogans, exhortations, and
  targets for the work force.
• ?? Eliminate work quotas
• ?? Remove barriers that rob workers of pride
  of workmanship.
• ?? Institute a vigorous program of education
  and self-improvement
• ?? Put everyone to work transforming the company

24
Malcolm Baldridge National Quality Award

• An annual award administered by the U.S.
  Department of Commerce and given to
  manufacturing, service, or small business
  companies that meet the following 7 criteria
• leadership
• information and analysis
• strategic planning
• human resource development and management
• process management
• business results
• customer focus and satisfaction