Chap 5: Total Quality Management Flashcards
Is there a definition of quality?
No, this is dependent on the people defining it. No single, universal definition of quality
What are the 5 ways we define quality?
conformance to specification, fitness for use, value for price paid, support services, and psychological criteria.
Defining Quality in Categories: conformance to specifications
How well a product/service meet targets and tolerances defined by
its designers
example: The wait for hotel room service may be specified as 20 minutes, but there may be an acceptable delay of an additional 10 minutes.
Defining Quality in Categories: fitness for use?
Evaluates performance for intended use
Defining Quality in Categories: support services?
Quality of support provided after the product/service is purchased. Quality does not apply only to the product or service itself; it also applies to the people, processes, and organizational environment associated with it.
Defining Quality in Categories: value for price paid?
Evaluation of usefulness vs. price paid, example: went to a restaurant and they gave bad service so you don’t tip them or the opposite experience
Defining Quality in Categories: psychological criteria?
Judgmental evaluation of what constitutes product/service quality. For example, a hospital patient may receive average healthcare, but a very friendly staff may leave the impression of high quality.
what are differences between manufacturing and service quality?
Manufacturing focuses on tangible product features (can
be seen, touched, directly managed):
o conformance o performance o reliability
o features
o durability
o serviceability
Service produces intangible products that must be experienced (cannot be seen or touched): o intangible factors o consistency o responsiveness o courtesy, friendliness o promptness, timeliness o atmosphere
What are the 4 cost of quality?
Quality control costs (to achieve high quality)
• Prevention costs
• Appraisal costs
Quality failure costs (high costs associated with poor quality)
• Internal failure costs
• External failure costs
Cost of Quality: prevention costs
Costs of preparing and implementing a quality plan
Cost of Quality: appraisal costs
Costs of testing, evaluating, and inspecting quality
Cost of Quality: internal failure costs
Costs of scrap, rework, and material losses
Cost of Quality: external failure costs
Costs of failure at customer site, including returns, repairs, and recalls
Walter A. Shewhart
Quality Guru, Contributed to understanding of process variability. • Developed concept of statistical control charts.
W. Edwards Deming
quality guru, Stressed management’s responsibility for quality.
Developed “14 Points” to guide companies in quality improvement.
Joseph M. Juran
quality guru, Defined quality as “fitness for use.” Developed concept of cost of quality.
Armand V. Feigenbaum
quality guru, Introduced concept of total quality control.
Philip B. Crosby
quality guru
Coined phrase “quality is free.”
Introduced concept of zero defects.
Kaoru Ishikawa
quality guru, Developed cause-and-effect diagrams.
Identified concept of “internal customer.”
Genichi Taguchi
quality guru, Focused on product design quality. Developed Taguchi loss function.
what is the concepts of the TQM philosophy?
customer focus, continuous improvement, employee empowerment, use of quality tools, product design, process management, managing supplier quality
TQM philosophy: customer focus
Goal is to identify and meet customer needs.
quality is customer driven.
stay tuned to customer needs.
TQM philosophy: continuous improvement
A philosophy of never-ending improvement. (Kaizen)
Plan-do-study-act (PDSA) cycle
benchmarking - the study of how others do it
TQM philosophy: employee empowerment
Employees are expected to seek out, identify, and correct quality problems.
TQM philosophy: use of quality tools
Ongoing employee training in the use of quality tools
TQM philosophy: product design
Products need to be designed to meet customer expectations.
TQM philosophy: process management
Quality should be built into the process; sources of quality problems should be identified and corrected.
TQM philosophy: managing supplier quality
Quality concepts must extend to a company’s suppliers
Continuous Improvement: PDSA - Plan
Evaluate current process.
Document current procedures, collect data, and identify problems. Develop an improvement plan, performance objectives.
Continuous Improvement: PDSA - Do
Implement the plan — trial basis.
Continuous Improvement: PDSA - Study
Collect data and evaluate against objectives.
Continuous Improvement: PDSA - Act
Communicate the results from the trial.
If successful, implement new process.
PDSA is it repeated?
Yes, start planning after the act phase and repeat the process.
Continuous Improvement: benchmarking
Another way of doing continuous improvement:
The process of studying the practices of companies considered “best-in-class” and comparing your company’s performance against theirs.
TQM philosophy concept: employee empowerment
empower all employees to seek out quality problems and correct them
TQM Philosophy, Employee Empowerment : external customers
are those that purchase the company’s goods and services
TQM Philosophy, Employee Empowerment: internal customers
are employees of the organization who receive goods or services from others in the company
TQM Philosophy, Employee Empowerment: Team approach
Teams formed around processes
Quality circles; 8–10 people
Meet weekly to analyze and solve problems
TQM Philosophy concept: use of quality tools
Ongoing training on analysis, assessment, and correction, as well as the use of implementation tools
TQM Philosophy, use of quality tools: 7 tools of quality control
cause-and-effect diagram aka fishbone diagram flowcharts checklists control charts scatter diagram pareto analysis (80-20 rule) histograms
TQM Philosophy, use of quality tools : cause and effect diagram aka fishbone diagram
A chart that identifies potential causes of particular quality problems.
TQM Philosophy, use of quality tools :flowcharts
A schematic of the sequence of steps involved in an operation or process.
TQM Philosophy, use of quality tools : checklists
A list of common defects and the number of observed occurrences of these defects.
TQM Philosophy, use of quality tools : control charts (UCL, LCL)
Charts used to evaluate whether a process is operating within set expectations.
TQM Philosophy, use of quality tools : scatter diagrams
Graphs that show how two variables are related to each other.
TQM Philosophy, use of quality tools : pareto analysis
A technique used to identify quality problems based on their degree of importance.
TQM Philosophy, use of quality tools: histograms
A chart that shows the frequency distribution of observed values of a variable.
what is TQM about?
a philosophy that focuses on the finding the root cause of quality problem.
encompasses an entire organization and not just a single department.
involves people and technical components
TQM philosophy, Product Design: Quality Function Deployment (QFD)
Quality function deployment (QFD) A tool used to translate the preferences of the customer into specific technical requirements.
TQM philosophy, Product Design: QFD encompasses…
customer requirements - the first thing we need to do is survey our customers to find out specifically what they would be looking for in a product
competitive evaluation - The important thing here is to identify which customer requirements we should pursue and how we fare relative to our competitors.
product characteristics - These are technical measures.
relationship matrix - The strength of the relationship between customer requirements and product characteristics is shown in the relationship matrix.
trade off matrix - The next step in our building process is to put the “roof” on the house. This is done through a trade-off matrix, which shows how each product characteristic is related to the others and thus allows us to see what trade-offs we need to make.
setting targets - The last step in constructing the house of quality is to evaluate competitors’ products relative to the specific product characteristics and to set targets for our own product. The bottom row of the house is the output of quality function deployment
TQM philosophy, product design: reliability
The probability that a product, service, or part will perform as intended.
TQM philosophy: Product design: Process management and managing supplier quality
Quality products come from quality sources.
Quality must be built into the process.
Quality at the source is the belief that it is better to uncover the source of quality problems and correct it.
TQM extends to quality of product from company’s suppliers.
Malcolm Baldrige National Quality Award (MBNQA)
An award given annually to companies that demonstrate quality excellence and establish best practice standards in industry. judged based on the following categories: leadership strategic planning customer and market focus Information and analysis Human Resource Focus Process Management Business Results
Deming Prize (named after W. Edwards Deming)
A Japanese award given to companies to recognize efforts in quality improvement.
ISO 9000
A set of international quality standards and a certification demonstrating that companies have met all the standards specified.
ISO 9000:2008, Quality Management Systems—Fundamentals and Standards
Provides the terminology and definitions used in the standards. It is the starting point for understanding the system of standards.
ISO 9001:2008, Quality Management Systems—Requirements
This is the standard for the certification of a firm’s quality management system. It is used to demonstrate the conformity of quality management systems to meet customer requirements.
ISO 9004:2008, Quality Management Systems—Guidelines
Provides guidelines for establishing a quality management system. It focuses not only on meeting customer requirements but also on improving performance.
ISO 26000
A set of international standards developed to help organizations evaluate and address their social responsibility.
ISO 14000
A set of international standards and a certification focusing on a company’s environmental responsibility.
Why TQM Efforts Fail
Lack of a genuine quality culture
Lack of top management support and commitment
Over- and underreliance on statistical process control (SPC) methods
Customer-defined quality
The meaning of quality as defined by the customer.
TQM impacts what?
Marketing: providing key inputs of customer information
Finance: evaluating and monitoring financial impact
Accounting: providing exact costing
Engineering: translating customer requirements into specific engineering terms
Purchasing: acquiring materials to support product development
Human resources: hiring employees with necessary skills
Information systems: fulfilling increased need for accessible information
