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MGMT 19105

MGMT 19105. Quality Management. Week 10 Important Terms – Problem Solving. Existent Problems – Problems we already have. Initially the response is ‘reactive’. Latent Problems – Problems we are yet to experience (but which we are able to predict). Initially the response is ‘proactive’.

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MGMT 19105

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  1. MGMT 19105 Quality Management

  2. Week 10 Important Terms – Problem Solving • Existent Problems – Problems we already have.Initially the response is ‘reactive’. • Latent Problems – Problems we are yet to experience (but which we are able to predict).Initially the response is ‘proactive’. (Goetsch & Davis 2006, p. 539)

  3. Week 10 Outcome of Problem Solving A problem is solved ‘only when its occurrence has become impossible or significantly less probable’. (Goetsch & Davis 2006, p. 537)

  4. Week 11 Quality Function Deployment & Continual Improvement

  5. Module Objectives 1. Identify the key differences between quality function deployment and continual improvement; 2. Draw and explain the ‘house of quality’; 3. Trace a customer requirement through the house of quality to the related process requirement in the product design; 4. Describe the process of implementing quality function deployment; 5. Explain the use of the affinity diagram and the interrelationship digraph; 6. Describe what is meant by ‘continual improvement’; 7. Identify the steps in implementing continual improvement; 8. Explain the Japanese concept of the five Ms and apply it to a production situation; and 9. Describe the purpose and focus of the ‘theory of constraints’.

  6. Readings Study Guide Module 11 Textbook Goetsch & Davis (2006)Chapter 17 Quality Function Deployment (QFD) Chapter 19. Continual Improvement Electronic journal articles • Sanford, JL 2005, ‘How useful is QFD?’ (About – QFD done by highschoolers – a worked example.) • Dalgleish, S 2005, ‘Variation as a continual improvement tool’(About – Intentionally introducing variation.) • Warriner, W, Goldratt, EM, Cox, J, and Bertain, L et al. 1994, ‘Story time’(About – Extracts from Business Fiction.) • Miller, B 2000, ‘Applying TOC in the real world’(About – The theory of constraints and continuous improvement.) (Available on Proquest)

  7. Quality Function Deployment • A process pioneered by Yoji Akao and Shigeru Mizuno at a Mitsubishi shipyard in Kobe , Japan, in the late 1960s and 1970s (Sanford, 2005). • Also used by Toyota and Hewlett-Packard. • Gives the customer a voice, and seeks to design customer satisfaction into the product. • Used for designing and developing new products, and designing improvements into existing products.

  8. The House of Quality The Key Components: • Customer Input • Current Product Specifications • Planning Matrix • Relationships • Prioritised Process Requirements • Trade-offs (Current Specifications)

  9. The House of Quality The Key Components: • Customer InputThe ‘voice of the customer’. • Current Product Specifications(Inc. requirements for suppliers.) • Planning MatrixPrioritised customer requirements & competitive evaluation. • Relationships…between the voice of the customer and the manufacturer’s current specifications. • Prioritised Process RequirementsThe ‘result’ of the House of Quality. • Trade-offs in the Current Specifications(or relationships between the different current specifications)

  10. The Rest of QFD Focus: • Structured collection of information about customer needs and wants used to develop products and services. A range of tools: • Affinity Diagrams (from Week 5) • Interrelationship Digraphs • Tree Diagrams • Matrix Diagrams

  11. State the issue as a question. • Brainstorm a large number of potential answers. • Write the answers in point form on sticky notes. • Move the sticky notes to sit beside closely related answers. • Write a ‘head note’ with a name for each grouping. • Write up an Affinity Diagram. Affinity Diagram Small Group You have a 1978 Toyota in good condition. You have advertised it for 4 weeks on the Internet. It has not sold. Do an Affinity Diagram for the question: “Why can’t I sell my car?”

  12. Interrelationship Digraphs • Extends the analysis of a problem. • Involves using the Affinity Diagram ‘answer cards’. • Involves: • Identifying the degree of influence of the answer on the problem. • Identifying ‘causal’ links between the various answers and the problem.

  13. Interrelationship Digraph • Take a card and write the problem on it. • Take the ‘answer cards’ from the Affinity Diagram. • Place the answer cards beside the ‘problem card’, with the cards most closely related to the problem closest and those least related furthest away. • Draw causal arrows showing what contributes to what. Small Group Continuing with the 1978 Toyota … Do a Relationship Digraph for the question: “Why can’t I sell my car?”

  14. Other QFD Tools • Tree Diagrams – show the tasks required to accomplish the outcomes identified through the Affinity Diagram and Relationship Digraph. • Matrix Diagrams – show the tasks to be performed in association with the people/departments responsible for them (showing the ‘degree of responsibility’).

  15. QFD & Productivity Politis (2005) examined productivity, QFD and creativity, and found that QFD (a structured approach to product improvement) contributed better to productivity than creativity (an unstructured approach to product improvement). Politis, JD 2005, ‘QFD, organisational creativity and productivity’, The International Journal of Quality & Reliability Management, vol. 22, no. 1, pages unknown (online, Proquest).

  16. QFD Success Criteria Successful organisations using QFD: • Demonstrate top management commitment to QFD; • Facilitate worker-supervisor collaboration in QFD efforts; • Institute internal processes and strategies for QFD; • Establish effective use of information and data to support QFD actions; • Build relationships with customers; • Enable employees to develop and utilise their capacity to deliver value to customers; and • Enhance QFD team-building, consensus-oriented, and flexibly disciplined approach that structures synthesising new ideas. Source: Politis 2005

  17. Continual Improvement • Also known as ‘continuous improvement’ or kaizen (in Japanese.) • Is a way of thinking about what we do to ensure quality. • Many different approaches can be taken, with the goal being improvement of people, processes and products/services. • W. Edwards Deming (cited in Goetsch & Davis 2006) states that just fixing things that are wrong is not improvement, that is getting the thing to where it was going to be before it broke!

  18. Critical Aspects • Leadership must be involved (not just supportive). • Structural initiatives are required, including a quality council and sub-committees. • A scientific approach must be taken, including data collection and a process for addressing potential opportunities. • We must focus on, and improve, processes through standardisation, streamlining, reducing sources of variation and bringing processes under statistical control. • The use of the tools covered in the earlier module ‘Tools for Total Quality Management’. (Goetsch & Davis 2006)

  19. The Scientific Approach • Collect meaningful data. • Identify root causes of problems. • Develop appropriate solutions. • Plan and make changes. (Also, more detailed process on p. 648; and additional strategies on p. 651.) (Goetsch & Davis 2006)

  20. The 5 Ms A simple checklist to focus attention: • Man (Operator) • Machine • Material • Methods • Measurement

  21. The 5 Ms Small Group We have a small furniture manufacturing company. We are struggling to meet demand for couches. “Using the 5Ms, describe what problems we might have in meeting demand for couches.”

  22. Breakthrough vs Continual Improvement • Goetsch and Davis’s (2006) describe kaizen as being about continual incremental improvement. • Rao et al (1986) provide a distinction between continuous improvement and ‘breakthrough improvement’. Breakthrough improvement typically involves the implementation of new technologies or radically different processes. • The Japanese do not distinguish between incremental and radical improvement. The goal is improvement, and the scale can be of any magnitude. • (Rao et al suggest it is desirable to have a continuous process of incremental improvement punctuated at intervals by breakthrough improvements.)

  23. The Theory of Constraints • An alternative view of a manufacturing system. • Using throughput, inventory and operating expense to measure success (rather than profit and return on investment). • Focussed on reducing the impact of constraints on the organisation. • Involves the concept of critical chain thinking – where the organisational process is a series of interlinked chains. As we make an improvement in one area, we are likely to cause new problems elsewhere.

  24. TOC at Virginia Semiconductor Inc Step 1: Identify the system's constraints. Step 2: Decide how to exploit the system's constraints. Step 3: Subordinate everything else to the above decision. Step 4: Elevate the system's constraints. Step 5: If a constraint has been broken, go back to Step 1. Electronic journal article by Miller (2000).

  25. TOC at Virginia Semiconductor Inc Step 1: Identify the system's constraints. • Find the backlogged pile of work in process (ie, in-process stockpile). • VC: the polishing process. Electronic journal article by Miller (2000).

  26. TOC at Virginia Semiconductor Inc Step 2: Decide how to exploit the system's constraints. • Figure out how best to exploit the constraint’s resources. • VC: left a buffer of waiting work to indicate urgency; and prioritised the work. Electronic journal article by Miller (2000).

  27. TOC at Virginia Semiconductor Inc Step 3: Subordinate everything else to the above decision. • Focus all surrounding work activity on supporting the efforts to eliminate the constraint. • VC: facilitated flow to polishing (by making some people slow down); published backlog on the wall. Electronic journal article by Miller (2000).

  28. TOC at Virginia Semiconductor Inc Step 4: Elevate the system's constraints. • Improve the capacity of the constraining area. • VC: Increased resources. Electronic journal article by Miller (2000).

  29. TOC at Virginia Semiconductor Inc Step 5: If a constraint has been broken, go back to Step 1. • (As it says.) • VC: sales and marketing. Electronic journal article by Miller (2000).

  30. The Theory of Constraints Small Group “Describe how the Theory of Constraints can be applied in a ‘services’ organisation.”

  31. Summing It All Up Small Group “What is the difference between QFD and Continual Improvement?”

  32. QFD & Continual Improv’t

  33. Conclusion • Recap of Module 10 • Quality Function Deployment • The House of Quality • Affinity Diagram and Interrelationship Digraphs • QFD and Productivity • QFD Success Criteria • Continual Improvement • The Scientific Approach • The 5 Ms • Breakthrough vs Continual Improvement • Theory of Constraints • Difference Between QFD and CI

  34. Next Week • Week 12“Total Quality and Benchmarking and the Future for the Total Quality Approach”. • Study Guide • Goetsch & Davis (2006)Chapter 20. Benchmarking • Four (4) electronic journal articles (Proquest)

  35. Questions?

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