Chapter 8 Flashcards
TQM
Total Quality Management
Management
The process of achieving desired results through effective utilization of human and material resources
Definition of Quality
Meeting, or exceeding, customer requirements, now and in the future,
in a timely manner,
and at a fair price.
Other Quality Definitions
Conformance to (customer) specifications Variation Fitness-for-use Customer satisfaction Dimensions of quality
Dimensions of Quality
- Quality of Design
- Quality of Conformance
- The “Abilities”
- Field Service
Quality of Design (Grade)
Determined before the product is produced (during the design phase), often through market research
Refers to the product and product features
Quality of the product assuming no errors/defects
Quality of Conformance
Producing a product that meets the specifications
Abilities
Availability
Reliability
Maintainability
Availability
Continuity of service to customers
Reliability
Length of time that a product can be used before it fails
Maintainability
Restoration of the product or service once it has failed
Field Service (Customer Service)
Product warranty and repair/
replacement after the sale.
Total
Everyone
Everywhere
All the time
Quality Strategy
Be better today than we were yesterday,
Be better tomorrow than we are today.
(Continuous improvement or “kaizen”)
Quality Goals Example
Zero Defects
Theory of Zero Defects was coined by?
Philip Crosby
About Zero Defects
If not 0%, what should be the goal?
Interim goals
100% defective from customer perspective
Personal life – driving a car
Employee Involvement
Train the process experts in basic data collection and analysis techniques to empower them
Provide time and space for regular meetings
Rewards
Employee Involvement Various names:
EI, Small group activities, improvement teams, prevention teams, quality circles
The Quality Gurus
Phillip Crosby
Joseph Juran
W. Edwards Deming
Phillip Crosby
Targeted top management
14-step quality improvement process
Zero defects
“Father of the Quality Revolution”
Joseph Juran
Emphasis on middle management
Quality “Trilogy”
Quality Planning
Quality Improvement
Quality Control
“Quality Control Handbook”
W. Edwards Deming
Advocate of the worker
The 14 Management Principles
Advocate of statistical process control
Emphasis on continuous improvement
-PDCA Wheel
Parts of the PDCA Cycle
- Plan
- Do
- Check
- Act
Plan
Plan a change aimed at improvement
Do
Execute the change.
Check
Study the results;
did it work?
Act
Institutionalize the change or do it again or abandon that particular plan (in all cases, then go to Step #1 again).
CI Methodology: PDCA Cycle Characteristics
Is a model for continuous improvement (it should be never-ending)
Is simple to apply
“Plan” step can be very brief (or very long)
Provides an impetus for action
Can be applied to any process to improve it
Can be applied by anyone, anywhere within an organization
Can be applied by a group or individual
ISO 9000 Standards
International Organization for Standardization
“ISO” comes from Greek word for equal
Documentation of processes and procedures
Orientation toward conformance
Product quality not included
Commonly required of suppliers
Malcolm Baldrige National Quality Award
Established in 1987
Given to at most three companies in each of six categories (manufacturing, service, small business, healthcare, education, and nonprofit)
Winners of Baldrige Award – Through 2007 – 1300 applicants and 76 winners (99 thru 2012)
Criteria and points (7 categories – Total of 1000 points)
Quality and Financial Performance
Quality costing systems are used to link quality to the bottom line
The primary functions of quality costing systems are to:
Identify “opportunities for improvement”
Evaluate performance from year to year (scoreboard)
Quality Cost Core Categories
Conformance Costs
Non-Conformance Costs
Opportunity
Conformance Costs
Prevention Costs
Appraisal Costs
Non-Conformance Costs
Internal Failure Costs
External Failure Costs
Opportunity
Lost Opportunities Costs
Traditional Quality Cost Theories Characteristics
Company is reactive/appraisal oriented
Inconsistent with the goal of zero defects
Modern Quality Cost Theories Characteristics
Company is proactive/ prevention oriented
Consistent with the goal of zero defects
Managerial Implications of the Traditional vs. Modern Quality Cost Theories
While both models are still valid, for any one organization only one model is (which one depends on their approach to quality).
“Goal Posts”
As long as all measures are within specs, no motivation to improve
As long as all measures are within specs, nomotivation to adjust the mean of the process
Inconsistent with 6 Quality
Taguchi Loss Function
Provides motivation to continuously reduce variation
Provides motivation to continuously keep process mean centered
Consistent with 6 Quality
Specification Limits
(Necessary to understand another way of looking at quality costs)
Used to objectively determine if a good or service is produced per its design
Critical quality characteristics are measured and compared to standards (e.g., 5.00mm ± 0.07)
Also used to determine process capability
a.k.a. Tolerance limits
Six-Sigma (6s) Quality – The Goal
Six-Sigma Quality derives its name from the goal upon which it is based.
The goal of 6 specifies that for each process, each specification limit should be at least 6 standard deviations way from the target value (compared to the norm of about 3).
This goal is achieved through aggressive variance reduction (improvement).
The goal of 6 is what really sets Six-Sigma Quality apart from other approaches.
