Chapter 11

1. Chapter 11 TQM & Continuous Improvement

2. Total Quality Management A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction MTSU Management 362

3. TQM Approach • Find out what the customer wants • Design a product or service that will meet (or exceed) what customers want • Design a production process that facilitates doing the job right the first time • Keep track of results, and use those to guide improvement • Extend these concepts to suppliers and to distribution MTSU Management 362

4. Other Elements of the TQM Approach (1 of 2) • Continual improvement (kaizen) • Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs • Competitive benchmarking • Employee empowerment • Team approach MTSU Management 362

5. Other Elements of the TQM Approach (2 of 2) • Decisions based on facts rather than opinions • Knowledge of tools • Supplier quality MTSU Management 362

6. Quality at the Source • The philosophy of making each worker responsible for the quality of his or her work • places direct responsibility for quality on the person(s) who directly affect it • removes adversarial relationship that often exits between QC inspectors and production workers • motivates workers by giving them control over their and as well as pride in it MTSU Management 362

7. Basic Steps in Problem Solving • Define the problem and establish an improvement goal • Collect data • Analyze the problem • Generate potential solutions • Choose a solution • Implement the solution • Monitor the solution to see if it accomplishes the goal MTSU Management 362

8. Process Improvement • A systematic approach to improving a process • Overview of the approach • process mapping • analyze the process • redesign the process MTSU Management 362

9. Plan Act Do Study Figure 11-1 The PDSA Cycle MTSU Management 362

10. Process Improvement Tools • There are a number of tools that can be used for problem solving and process improvement • Tools aid in data collection and interpretation, and provide the basis for decision making MTSU Management 362

11. Seven Basic Quality Tools • Check sheets • Flowcharts • Scatter diagrams • Histograms • Pareto analysis • Control charts • Cause-and-effect diagrams MTSU Management 362

12. Check Sheet Monday • Billing Errors • Wrong Account • Wrong Amount • A/R Errors • Wrong Account • Wrong Amount MTSU Management 362

13. Flowchart MTSU Management 362

14. Scatter Diagram Variable B Variable A MTSU Management 362

15. Histogram frequency A B C D E MTSU Management 362

16. Number of defects Offcenter Smeared print Missing label Other Loose Pareto Analysis 80% of the problems may be attributed to 20% of the causes. MTSU Management 362

17. 1020 UCL 1010 1000 990 LCL 980 970 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Figure11-9 Control Chart MTSU Management 362

18. Methods Materials Cause Cause Cause Cause Effect Cause Cause Environment Cause Cause Cause Cause Cause Cause People Equipment Figure11-10 Cause-and-Effect Diagram MTSU Management 362

19. UCL UCL UCL LCL LCL Additional improvements made to the process LCL Process centered and stable Process not centered and not stable Figure11-14 Tracking Improvements MTSU Management 362

20. Methods for Generating Ideas • Brainstorming • Quality circles • Interviewing • Benchmarking • 5W2H MTSU Management 362

21. Criticisms of the TQM Approach • Blind pursuit of TQM programs • Programs may not be linked to the strategy in a meaningful way • Quality-related decisions may not be tied to market performance • Failure to carefully plan a program can lead to false starts, employee confusion, and meaningless results MTSU Management 362

22. QUALITY