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TQM

TQM. 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. Ch 3 - 2. Dimensions Of Product Quality (Garvin). 1. Performance

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TQM

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  1. TQM 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 Ch 3 - 2

  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 over time Ch 3 - 3

  4. 4. Conformance • meeting pre-established standards 5. Durability • life span before replacement 6. Serviceability • ease of getting repairs, speed & competence of repairs Ch 3 - 4

  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 Ch 3 - 5

  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 Ch 3 - 6

  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 Ch 3 - 7

  8. Quality Of Conformance • Ensuring product or service produced according to design • Depends on • design of production process • performance of machinery • materials • training Ch 3 - 8

  9. Quality of Design • Consumers’ perception of value • May be function of price

  10. 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 Ch 3 - 9

  11. Quality Philosophers • Walter Shewhart • W. Edwards Deming • Joseph Juran • Philip Crosby • Armand Feigenbaum Ch 3 - 10

  12. 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 Ch 3 - 11

  13. 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 Ch 3 - 12

  14. 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 Ch 3 - 13

  15. Total Quality Management (TQM)Defined • Total quality management is defined as managing the entire organization so that it excels on all dimensions of products and services that are important to the customer.

  16. 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 Ch 3 - 14

  17. TQM Throughout The Organization • Marketing, sales, R&D • Engineering • Purchasing • Personnel • Management • Packing, storing, shipping • Customer service Ch 3 - 15

  18. 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 Ch 3 - 16

  19. 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 Ch 3 - 17

  20. 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. Ch 3 - 18

  21. Quality Is... • An important determinant of business profitability • Positively & significantly related to higher return on investment Ch 3 - 22

  22. Quality And Productivity • Productivity = output / input • Fewer defects increase output • Quality improvement reduces inputs Ch 3 - 23

  23. Employees & Quality Improvement • Quality circles • Employee suggestions • Process improvement teams • Self-managed work teams Ch 3 - 35

  24. The Quality Circle Process Ch 3 - 36

  25. Seven Quality Control Tools 1. Pareto analysis 2. Flowcharts 3. Check sheets 4. Histograms 5. Scatter diagrams 6. Control charts 7. Fishbone diagram Ch 3 - 37

  26. 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 Ch 3 - 38

  27. A Flowchart Ch 3 - 39

  28. 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 Ch 3 - 40

  29. 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 Ch 3 - 41

  30. Scatter Diagram . Ch 3 - 42

  31. 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 Ch 3 - 43

  32. 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 Ch 3 - 44

  33. Quality Awards And Certifications • The Malcolm Baldrige Award • The Deming Prize • Industry, regional, and company awards • Institute of Industrial Engineers • NASA • European Quality Award Ch 3 - 45

  34. ISO 9000 Categories • ISO 9001 ~ Suppliers and Designers • ISO 9002 ~ Production • ISO 9003 ~ Inspection and Test • ISO 9004 ~ Quality Management Ch 3 - 46

  35. 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 Ch 3 - 47

  36. 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) Ch 3 - 48

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