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Total Quality Management

Total Quality Management. Lecture #2. Inputs. Transformation. Outputs. Materials Personnel Equipment Methods Information Environment . Together produce. Products and/or services. Types of Quality Control. Product Quality Control Product Control focuses on the output

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Total Quality Management

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  1. Total Quality Management Lecture #2

  2. Inputs Transformation Outputs Materials Personnel Equipment Methods Information Environment Together produce Products and/or services Types of Quality Control • Product Quality Control • Product Control focuses on the output • Process Quality Control • Process Control focuses on the input

  3. Emphasizes defect detection Is after the fact High proportion of cost incurred Compares product/service to specification External to process Reactive Emphasizes prevention Minimizes potential for defects Reduce costs Compares process results to past process performance Variation oriented Proactive Product/Process Control

  4. Total Quality Management (TQM) • Customer expectations in the new economy: • Products/services must be delivered quickly (Fast) • Products/services must have no defects (Right) • Products/services must be inexpensive (Cheap) • Products/services must be easy to use (Easy) • Focus of the organization is to meet or exceed the expectations of its customers.

  5. TQM • Statistical Quality Control • looking for defects in parts or products selected through sampling techniques • Statistical Process Control • using statistics to monitor production and making corrections when the process is out of control • Zero-Defects (six sigma) • working to eliminate essentially all defects

  6. “Japanese Model” compared to U.S. • Traditional Japanese management is becoming Westernized • Mainly applies to larger Japanese corporations

  7. Employment • Japan: Lifetime employment • U.S.: Short term employment

  8. Careers • Japan: Non-Specialized career path Life long job rotation • U.S.: Specialized careers

  9. Evaluation & Promotion • Japan: Group evaluation & promotion • U.S.: Individual evaluation & promotion

  10. Decision Making • Japan: Participative decision making • U.S.: Individual decision making • Teams

  11. Participative Decision Making • Newest member of department is given charge of decision process • Meets several times with every member of the department

  12. Participative Decision Making 1) I believe that you understand my point of view 2) I believe that I understand the other points of view

  13. Participative Decision Making 3) Whether or not I agree with the decision, I will support it, because it has been arrived at in a fair and open manner

  14. Benefits to New Member • Gets to know other everyone else • Acquires an in-depth knowledge of an issue

  15. Benefits to Department • New member becomes a valuable asset to the department and a resource to others

  16. Auto Industry

  17. Auto Industry Differences • Japan vs. U.S. practices

  18. # of suggestions per worker per year • Japan: 329 • U.S.: 2

  19. Training Hours • Japan: 370 • U.S.: 46

  20. Rework/repair Scrap/discarded material Overtime to remake products Returns/warranty costs Time spent waiting Lost reputation Lost potential sales Lost opportunity for new markets Inability to attract good employees Tangible/Intangible Costs

  21. Deming’s 14 Points for Management • Create constancy of purpose for improvement of product and service • Adopt the new philosophy • Cease dependence on mass inspection to achieve quality • End the practice of awarding business on the basis of price tag

  22. Deming’s 14 Points for Management (cont.) • Improve constantly • Institute training on the job • Institute leadership • Drive out fear • Break down barriers between departments

  23. Deming’s 14 Points for Management (cont.)  Eliminate slogans, exhortations, and targets for the work force.  Eliminate work quotas  Remove barriers that rob workers of pride of workmanship.  Institute a vigorous program of education and self-improvement  Put everyone to work transforming the company

  24. Malcolm Baldridge National Quality Award • An annual award administered by the U.S. Department of Commerce and given to manufacturing, service, or small business companies that meet the following 7 criteria: • leadership • information and analysis • strategic planning • human resource development and management • process management • business results • customer focus and satisfaction

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