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Module 2:

Operations Management as a Competitive Weapon. Module 2:. Total Quality Management. OM Course Framework. 3. Dependability - Project Management - JIT. 1. Cost - Design & Selection. 4. Flexibility - Inventory - Supply Chain - Location - Forecasting - Aggregate Planning.

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Module 2:

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  1. Operations Management as a Competitive Weapon Module 2: Total Quality Management

  2. OM Course Framework 3. Dependability - Project Management - JIT 1. Cost - Design & Selection 4. Flexibility - Inventory - Supply Chain - Location - Forecasting - Aggregate Planning 2. Quality - TQM - SQC

  3. Learning Objectives At the end of this module, each student will be able to: • Characterize various definitions of quality • Explain total quality management (TQM) • Understand TQM tools Module 02: Total Quality Management

  4. 1. Some Definitions of Quality • ASQC – customer satisfaction • User – consumer says it is • Design – marketplace • Conformance – meet specifications Module 02: Total Quality Management

  5. Customer Marketing Engineering Operations Specifies Interprets Designs Produces Need Need Product Product Defines Plans Quality Quality Monitors Quality Traditional Quality Process (Mfg.) Module 02: Total Quality Management

  6. Customer Marketing Engineering Operations Specifies Interprets Designs Produces Need Need Product Product Defines Plans Quality Quality Monitors Quality Traditional Quality Process How do the definitions of quality relate to the traditional quality process? Module 02: Total Quality Management

  7. User Design Conformance Customer Marketing Engineering Operations Specifies Interprets Designs Produces Need Need Product Product Defines Plans Quality Quality Monitors Quality Traditional Quality Process Module 02: Total Quality Management

  8. 2. Total Quality Management • Quality system involving entire organization from supplier to customer • Objective: Meet or exceed customer needs through company-wide continuous improvement • Early proponents • W. Edwards Deming - natural variability • Philip B. Crosby - Quality is Free • Joseph Juran – Cost of Quality Module 02: Total Quality Management

  9. Deming: Natural variability • All process are subject to variability • Natural causes • Assignable causes • Objective: Identify assignable causes Module 02: Total Quality Management

  10. Market Gains Reputation Volume Price Improved Quality Increased Profits Lower Costs Productivity Rework/Scrap Warranty Crosby: Quality is Free Module 02: Total Quality Management

  11. Joseph Juran: Costs of Quality Module 02: Total Quality Management

  12. Total Cost Min. Total Quality Cost Cost per Good Unit of Product Appraisal Cost Failure Cost 0 50 100 Conformance Quality Level (%) Optimum Conf. Quality Level COQ Relationship

  13. 3. TQM Tools • Quality function deployment (QFD) • Pareto charts • Process charts • Cause & effect diagrams • Statistical process control (SPC) Module 02: Total Quality Management

  14. Quality Function Deployment • Mitsubishi shipyard • Toyota Motor Corporation • Product design process using cross-functional teams • Marketing, engineering, manufacturing • Translates customer preferences into specific product characteristics Module 02: Total Quality Management

  15. Comparing “Voices” Voice of the Engineer Voice of the Customer Customer-based Benchmarks Module 02: Total Quality Management

  16. Setting Specifications Trade-offs Technical Benchmarks Targets Module 02: Total Quality Management

  17. TQM Tools • Quality function deployment (QFD) • Pareto charts • Process charts • Cause & effect diagrams • Statistical process control (SPC) Module 02: Total Quality Management

  18. Pareto Analysis • Helps identify the degree of importance of different quality problems Module 02: Total Quality Management

  19. TQM Tools • Quality function deployment (QFD) • Pareto charts • Process charts • Cause & effect diagrams • Statistical process control (SPC) Module 02: Total Quality Management

  20. Process Charts • Diagrams of the steps involved in an operation or process Module 02: Total Quality Management

  21. TQM Tools • Quality function deployment (QFD) • Pareto charts • Process charts • Cause & effect diagrams • Statistical process control (SPC) Module 02: Total Quality Management

  22. Cause-and-Effect Diagrams • Also called Fishbone Diagrams • Help identify potential causes of specific ‘effects’ (quality problems) Module 02: Total Quality Management

  23. TQM Tools • Quality function deployment (QFD) • Pareto charts • Process charts • Cause & effect diagrams • Statistical process control (SPC) Module 02: Total Quality Management

  24. Control Charts • Track whether a process is operating as expected Module 02: Total Quality Management

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