om lec2 tqm & om
TRANSCRIPT
-
7/27/2019 OM Lec2 TQM & OM
1/24
TQM & OM
TQM = Customer-Driven Quali ty Management
-
7/27/2019 OM Lec2 TQM & OM
2/24
2
Customer Quality Measures
Customers typically relate quality to:
1) Feature-based measures (have or have not)
determined by design
diamond example: marquise shape diamond vs.round diamond
2) Performance measures (range of values)
conformance to design or ideal value
diamond example: 4Cs -- carat, clarity, color, cut
In this class, we will focus more on analyzing
performance measures.
-
7/27/2019 OM Lec2 TQM & OM
3/24
3
What are the Different Views
of Quality? Customers View (more subjective view):
Transcendent view image of excellence quality of the design (look, feel, and function). Fitness for intended use customer needs/expectations. consider both feature and performance measures to assess
value. Value = Quality / Price (value determined by individual
customers)
Producers View (more objective view): conformance to requirements. e.g., # of defects per million products is a measure of
conformance. costs of quality (prevention, appraisal, scrap & warranty costs).
prevention costs: training, writing quality procedures appraisal costs: inspecting and measuring product characteristics scrap and rework costs: internal costs of defective products
warranty costs: external costs for product failures in the field increasing quality conformance reduces product costs and raises
profits.
-
7/27/2019 OM Lec2 TQM & OM
4/24
4
History of Quality Paradigms
(producer / customer relationship) Customer-craft quality paradigm:
design and build each product for a particular customer. producer knows the customer directly.
Mass production and inspection quality paradigm: focus on designing and building products for mass consumption. push products on the customer (limit customer choices). quality is maintained by inspecting and detectingbad products. major innovation to this paradigm: statistical process control
TQM or Customer-Driven Quality paradigm: potential customers determine what to design and build. higher quality obtained by focusing on preventingproblems and
continuously reducing variability in all organizational processes.
-
7/27/2019 OM Lec2 TQM & OM
5/24
5
The Quality Hierarchy
(Evolution)
1. Inspection
2. Quality Control
(QC)
2. Quality
Assurance (QA)
4. Total Quality
Management
(TQM)
incorporates QC/QA activities into
a company-wide system aimed at
satisfying the customer.
(involves all organizational functions)
planned and systematic actions to
insure that products or services
conform to company requirements
(example: product quality plans).
operational techniques to make
inspection more efficient & to reducethe costs of quality. (example: SPC)
Inspect products
Prevention
stop problems
at source;greater
design emphasis
(PROACTIVE)
Detection
Finding &Fixing Mistakes
(REACTIVE)
-
7/27/2019 OM Lec2 TQM & OM
6/24
6
Inspection Approach-
999 Out of 1000 Syndrome People often think that doing something
right 99 percent of time (99 out of 100) is
good enough. However, at this level, therewould be the following:
5,000 incorrect surgical operations per week
2 short or long landings per day at eachmajor airport
Others: ___________?
-
7/27/2019 OM Lec2 TQM & OM
7/24
7
Some Quality Definitions The totality of features and
characteristics of a product or service
that bears on its ability to satisfygiven needs.
Quality is meeting or exceedingcustomer expectations.
-
7/27/2019 OM Lec2 TQM & OM
8/24
-
7/27/2019 OM Lec2 TQM & OM
9/24
9
Types of Customers External/Ultimate customer
Needs?
Immediate or Internal Customer Expectations?
Need to define your customer needs and
expectations.Always provide feedback to the previous
process (supplier)
-
7/27/2019 OM Lec2 TQM & OM
10/24
10
TQMTQM is a management philosophy which seeks tointegrate all organizational functions (marketing,finance, design, engineering, production, customer
service ) to focus on meeting customer needsand organizational objectives.
It views organizations as a collection of processes.
It maintains that organizations must strive tocontinuously improve these processes byincorporating the knowledge and experiences ofworkers.
-
7/27/2019 OM Lec2 TQM & OM
11/24
11
The Simple Objective of TQM
Do the right things, right
the first time, every time.
-
7/27/2019 OM Lec2 TQM & OM
12/24
12
TQMDEFINITION OF TOTAL QUALITY MANGEMENTA customer focused, strategic and systematic approachinvolving continuous performance improvement to providegoods and services that offer the highest value.
TOTAL Everyone in the organization is responsible for quality, and
everything in the organization is addressed for improvement.
QUALITY
All products or services consistently meet or exceed customerneeds, desires, and expectations.
MANAGEMENT
The PLANNING & EXECUTION that makes it happen, via mission,values, vision, goals, policies, process improvement, financialsupport, measurements, communication, participative supervision,training and education, rewards and recognition, and above all,management involvement.
-
7/27/2019 OM Lec2 TQM & OM
13/24
13
TQM Continued CUSTOMER FOCUED
Have external and internal customers define quality, thenmake the changes that make economic sense
STRATEGIC
Make quality a competitive strategy; plan and work for betterperformance and long term success, instead of business-as-usual and short-term results
SYSTEMATIC Align all production, information, financial, and personnel
systems with the organizations mission, vision, and goals
-
7/27/2019 OM Lec2 TQM & OM
14/24
14
TQM Continued APPROACH
Proactively lead and steer change, through culture,people, systems, and partnerships
CONTINUOUS Enable employees to routinely solve problems, help
improve processes, and make decisions; foster on-goingteamwork between managers, employees, unions,customers, and suppliers; design quality in the first time;use state-of-the-art technology; make improvement a
habit, a never ending journey.
PERFORMANCE Focus on prevention instead of detection, on doing it
right the first time instead of doing it over, and oncustomer oriented outcomes instead of operational status
quo.
-
7/27/2019 OM Lec2 TQM & OM
15/24
15
TQM Continued IMPROVEMENT
Facilitate data gathering and process analysis; encourageinnovation and better design; update methods, procedures,
tools, and equipment; remove barriers to effectiveperformance; strive for perfection.
VALUE
Achieve total customer satisfaction where value isperceived as the combination of cost, quality, availability ofproduct and service, and product performance/reliability.
-
7/27/2019 OM Lec2 TQM & OM
16/24
16
Some Basic Tenets of TQM1. The customer determines quality.2. Improving quality requires the establishment of effective
quality metrics. We must speak with data not justopinions.
3. People working within systems create quality throughteamwork.
4. Quality is a moving target. It requires a commitmenttoward sustained (strategic and systematic) continuous
improvement.5. Prevention, not detection, is the key to producing highquality. We must design quality into processes andreduce variability.
6. Top Management must provide leadership and support
for all (total) quality initiatives.
-
7/27/2019 OM Lec2 TQM & OM
17/24
17
Innovators of Modern QualityThinking
U.S. Quality Innovators and the Main Years oftheir Work:
Walter Shewhart (1920s -1940s)
W. Edwards Deming (post WWII through 1980s) Joseph M. Juran (consultant post WWII through
1980s) Philip Crosby (1980s) Armand Feigenbaum (1970s - 1980s)
Japanese Quality Innovators: Kaoru Ishikawa (post WWII - 1980s) Genichi Taguchi (1960s - 1980s) Shigeo Shingo (post WWII - 1980s)
-
7/27/2019 OM Lec2 TQM & OM
18/24
18
Walter A Shewhart
Pioneer of Modern Quality Control recognized the need to separate variation into
assignable and unassignable causes (defined incontrol.)
founder of the control chart (e.g. X-bar and R chart). originator of the plan-do-check-act cycle. perhaps the first to successfully integrate statistics,
engineering, and economics.
defined quality in terms of objective and subjective
quality objective quality: quality of a thing independent of people. subjective quality: quality is relative to how people
perceive it. (value)
-
7/27/2019 OM Lec2 TQM & OM
19/24
19
W. Edwards Deming
Studied under Shewhart at Bell Laboratories Contributions:
well known for helping Japanese companies apply Shewhartsstatistical process control.
Main Contribution is his Fourteen Points to Quality(some key points below)
create constancy of purpose. cease mass production - build quality into products. drive out fear and build employee trust.
break down departmental barriers (create win-win situations). seek long-term supplier relationship (end low cost bidding). eliminate numerical goals; abolish annual rating or merit system. eliminate slogans - they provide no value in terms of improving
quality.
-
7/27/2019 OM Lec2 TQM & OM
20/24
20
The Deming Chain Reaction(proposed W. Edwards Deming)
Improve
Quality
Costs decrease:
(less rework,
fewer mistakes,
better use of
material
and equipment)
Productivity
Improves
Greater Market
Share
(products with
higher quality at less
cost)
Stay
In
Business
Provide
Jobs
and More
Jobs
-
7/27/2019 OM Lec2 TQM & OM
21/24
21
Joseph M. Juran
Contributions also well-known for helping improve Japanese quality.
directed most of his work at executives and the field of
quality management.
developed the Juran Trilogy for managing quality: Quality planning, quality control, and quality improvement.
enlightened the world on the concept of the vital few,trivial many which is the foundation for pareto charts.
-
7/27/2019 OM Lec2 TQM & OM
22/24
22
Other US Quality Innovators
Philip Crosby (quality management) Four absolutes of quality including:
#1- quality is defined by conformance to requirements. #2 - system for causing quality is prevention not appraisal. #3 - performance standard is zero defects, not close
enough. #4 - measurement of quality is the cost of nonconformance
Armand Feigenbaum Stressed a systems approach to quality (all organizations
must be focused on quality) Costs of quality may be separated into costs for
prevention, appraisal, and failures (e.g., scrap, warranty).
-
7/27/2019 OM Lec2 TQM & OM
23/24
23
Kaoru Ishikawa
developed concept of true and substitute quality characteristics true characteristics are the customers view substitute characteristics are the producers view degree of match between true and substitute ultimately determines
customer satisfaction.
advocate of the use of the 7 tools (e.g., cause-and-effect diagram) advanced the use of quality circles (worker quality teams). developed concept of Japanese Total Quality Control quality first - not short term profits. next process is your customer. use facts and data to make presentations. respect for humanity as a management philosophy - full participation. cross-functional management.
-
7/27/2019 OM Lec2 TQM & OM
24/24
24
Other Quality Innovators
Genichi Taguchi (1960s - 1980s) quality loss function (deviation from target is a loss to society). Promoted the use of parameter design (application of Design of Experiments) or robust engineering.
Shigeo Shingo (post WWII - 1980s) advocated the replacement of statistical process control with
source inspection (control quality at the source, rather thanthrough sampling inspections).
set up poke-yoke devices (mistake proofing devices) such assensors and monitors to identify defects at the point they occur.
referred to his system as a zero defect approach because ZeroDefects is the ultimate goal.