Continuous Improvement Flashcards
TQM
total quality management (1980s)
- made for improving quality and meeting specifications
- the customer is at the center of the decision making process
PDCA Cycle:
1. Plan
2. Do
3. Check
4. Act (deming)
TQM revolutionized quality (customer at the center)
Six Sigma
1984 at Motorola
made for reducing variation
DMAIC:
1. Define (same as Plan for TQM)
2. Measure
3. Analyze
4. Improve
5. Control
Six Sigma is rigorous, uses statistics, has belts (master black belt - black belt - green belt - yellow belt)
AKA lean six sigma
How do we define quality?
Supplies –> Factory –> Warehouses –> Retailers –> Consumers
Dividing Line splits warehouses and retailers
Common operational goals of TQM
- careful design of the product or service
- ensuring the org’s operational systems can consistently produce the design
External vs internal failure
external: warranties, defects, returns, recalls, customer retention, bad haircut from a service, reviews and reputations
* all happen at retailers and consumers
internal: happens at suppliers, factory, warehouses
Inspect in between upstream places, prevent internal failure by
- training
- supplier development programs
What are the costs of quality?
Quality costs:
Prevention Costs
Appraisal Costs
Internal Failure Costs
External Failure Costs
Ethical (new)
costs cost the most at the customer when detecting a problem
Six Sigma Quality
- used to eliminate defects in products and processes
- seeks to reduce variation in the processes that lead to product defects
- statistical term to describe the quality goal of no more than 3.4 defects per million opportunities (DPMO)
DPMO
= number of defects x 1,000,000 / number od defect opportunities per unit x number of units
SIPOC
a high-level view of a process analysis, or process map
- everyone must be on the same page to get input and make this
Supplier, Input, Process, Output, Customer
Six Sigma (Data Analysis) Tools
Checksheet: pilots, surgeons –> used for standardizing data collection
Pareto charts: 80/20 rule
Cause and effect diagrams (Fishbone): “keep asking why” and Root Cause Analysis, this is also known as structured brainstorming
US Quality Award
1987, only U.S. Congress award on performance
AKA Malcolm Baldridge Quality Award
prestigious
ex) Rizt Carlton Hotel, eastman chemical
Global certifications
ISO Certififcations
9000 (manufacturing , B2B processes) –> inspectors come in and inspect/look for process quality, not does guarantee quality)
14000 (environmental management)
external failure
Looking outside the company to examine what excellent performers inside and outside the company’s industry are doing in the way of quality
