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Chapter 8 [Chase]

Chapter 8 [Chase]. Total Quality Management. What Is Quality?. “The degree of excellence of a thing” (Webster’s Dictionary) “The totality of features and characteristics that satisfy needs” ( ASQC) Fitness for use. Dimensions Of Product Quality (Garvin). 1. Performance

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Chapter 8 [Chase]

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  1. Chapter 8 [Chase] Total Quality Management

  2. What Is Quality? • “The degree of excellence of a thing” (Webster’s Dictionary) • “The totality of features and characteristics that satisfy needs” ( ASQC) • Fitness for use

  3. Dimensions Of Product Quality (Garvin) 1. Performance • basic operating characteristics 2. Features • “extra” items added to basic features 3. Reliability • probability product will operate in appropriate manner over time under normal operating environment.

  4. 4. Conformance • meeting pre-established standards 5. Durability • life span before replacement 6. Serviceability • ease of getting repairs, speed & competence of repairs

  5. 7. Aesthetics • look, feel, sound, smell or taste 8. Safety • freedom from injury or harm 9. Other perceptions • subjective perceptions based on brand name, advertising, etc

  6. Service Quality 1. Time & Timeliness • customer waiting time, completed on time 2. Completeness • customer gets all they asked for 3. Courtesy • treatment by employees

  7. 4. Consistency • same level of service for all customers 5. Accessibility & Convenience • ease of obtaining service 6. Accuracy • performed right every time 7. Responsiveness • reactions to unusual situations

  8. Quality Of Conformance • Ensuring product or service produced according to design • Depends on • design of production process • performance of machinery • materials • training

  9. The Meaning of Quality Producer’s Perspective Consumer’s Perspective Quality of Conformance Quality of Design Production Marketing • Quality characteristics • Price • Conformance to • specifications • Cost Fitness for Consumer Use

  10. Quality Philosophers • Walter Shewhart • W. Edwards Deming • Joseph Juran • Philip Crosby • Armand Feigenbaum

  11. Deming’s 14 Points 1. Create constancy of purpose 2. Adopt philosophy of prevention 3. Cease mass inspection 4. Select a few suppliers based on quality 5. Constantly improve system and workers 6. Institute worker training

  12. 7. Instill leadership among supervisors 8. Eliminate fear among employees 9. Eliminate barriers between departments 10. Eliminate slogans 11. Remove numerical quotas 12. Enhance worker pride 13. Institute vigorous training & education programs 14. Implement these 13 points

  13. The Deming Wheel(or P-D-C-A Cycle) Identify problem Develop plan for improvement 1. Plan Institutionalize improvement Continue cycle 4. Act Implement plan on test basis 2. Do 3. Study / Check Is the plan working

  14. Total Quality Management 1. Customer defined quality 2. Top management leadership 3. Quality as a strategic issue 4. All employees responsible for quality 5. Continuous improvement 6. Shared problem solving 7. Statistical quality control 8. Training & education for all employees

  15. TQM Throughout The Organization • Marketing, sales, R&D • Engineering • Purchasing • Personnel • Management • Packing, storing, shipping • Customer service

  16. Strategic Implications Of TQM • Quality is key to effective strategy • Clear strategic goal, vision, mission • High quality goals • Operational plans & policies • Feedback mechanism • Strong leadership

  17. TQM In Service Companies • Inputs similar to manufacturing • Processes & outputs are different • Services tend to be labor intensive • Quality measurement is harder • Timeliness is important measure • TQM principles apply to services

  18. Cost Of Quality • Cost of achieving good quality • Prevention- e.g. training, process modification. • Appraisal - to ensure acceptability e.g. inspection, testing. • Cost of poor quality • Internal failure costs - e.g. scrap,rework, repair • External failure costs - e.g. product repair, loss of goodwill, warrantees, handling complaints.

  19. Quality Is... • An important determinant of business profitability • Positively & significantly related to higher return on investment

  20. Quality And Productivity • Productivity = output / input • Fewer defects increase output • Quality improvement reduces inputs

  21. Employees & Quality Improvement • Quality circles • Employee suggestions • Process improvement teams • Self-managed work teams

  22. The Quality Circle Process

  23. Seven Quality Control Tools 1. Pareto analysis 2. Flowcharts 3. Check sheets 4. Histograms 5. Scatter diagrams 6. Control charts 7. Fishbone diagram

  24. 70 60 50 40 30 20 10 0 A Pareto Chart (64) Percent from each cause (13) (10) (6) (3) (2) (2) Poor Design Defective parts Operator errors Machine calibrations Defective materials Surface abrasions Wrong dimensions Causes of poor quality

  25. A Flowchart What is the IMPORTANCE?

  26. COMPONENTS REPLACED BY LAB TIME PERIOD: 22 Feb to 27 Feb 1998 REPAIR TECHNICIAN: Bob TV SET MODEL 1013 Integrated Circuits|||| Capacitors |||| |||| |||| |||| |||| || Resistors || Transformers|||| Commands CRT | Check Sheet

  27. 40 35 30 25 20 15 10 5 0 1 2 6 13 10 16 19 17 12 16 20 17 13 5 6 2 1 Histogram

  28. Scatter Diagram .

  29. 27 24 UCL = 23.35 21 c = 12.67 18 15 Number of defects 12 9 6 LCL = 1.99 3 2 4 6 8 10 12 14 16 Sample number Control Chart

  30. Fishbone Diagram Measurement Human Machines Out of adjustment Faulty testing equipment Poor supervision Tooling problems Incorrect specifications Lack of concentration Improper methods Old/worn Inadequate training Quality Problem Inaccurate temperature control Defective from vendor Poor process design Ineffective quality management Not to specifications Dust and Dirt Deficiencies in product design Material- handling problems Environment Materials Process

  31. Quality Awards And Certifications • The Malcolm Baldrige Award • The Deming Prize • Industry, regional, and company awards • Institute of Industrial Engineers • NASA • European Quality Award

  32. ISO 9000 Categories • ISO 9001 ~ Suppliers and Designers • ISO 9002 ~ Production • ISO 9003 ~ Inspection and Test • ISO 9004 ~ Quality Management

  33. Implications Of ISO 9000 • Truly international in scope • Certification required by many foreign firms • U.S. firms export > $100 billion/yr to Europe • Adopted by U.S. Navy, DuPont, 3M, AT&T, & others

  34. ISO Accreditation • European registration • 3rd party registrar assesses quality program • European Conformity (CE) mark authorized • United States 3rd party registrars • American National Standards Institute (ANSI) • American Society for Quality Control (ASQC) • Registrar Accreditation Board (RAB)

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