tqm student ppt - mba

7/30/2019 TQM Student Ppt - MBA

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Quality

Ability of a product or service to meet customerrequirements

Conformance to standards, both stated orimplied at a given time, over a period of timeand at a price the customer can afford to pay or

is willing to pay


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Dimensions of Quality Performance

Reliability

Conformance

Durability

Serviceability Features

Aesthetics

Perceived Quality

Time to serve

Timeliness

Completeness

Consistency

Courtesy Responsiveness

Accuracy

Convenience


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Quality Evolution

Inspection

QualityControl

QualityAssurance

Total QualityManagement

Reactive

Approach

ProactiveApproach

Detection

Finding & Fixingmistakes

Prevention

Stop defects atsource.

Zero defects

1

2

3

4

Inspect products

Incorporates QC/QA activities into acompany-wide system aimed atsatisfying the customer.

(involves all organizational functions)

Planned and systematic actions toensure that products or servicesconform to company requirements

Operational techniques to makeinspection more efficient & toreduce the costs of quality.(example: SPC)


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TQM

A quest for quality that involves everybody in theorganization

A philosophy that involves everyone in theorganization in a continual effort to improve

quality and achieve customer satisfaction


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Key Philosophies in TQM

Never ending push to improve (continuousimprovement or Kaizen in Japanese)

Goal of customer satisfaction (meeting orexceeding customer expectations)


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TQM - Definition

Process of integration of all activities,functions and processes within anorganization in order to achieve continuousimprovement in cost, quality, function anddelivery of goods and services for customer

satisfaction


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TQM

Approach Management led

Scope Company wide

Scale Everyone is responsible for quality

Philosophy Prevention and not detection

Standard Right first time

Control- Cost of quality Theme Ongoing improvement


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Infrastructure, Practices and Tools

Infrastructure basic management systemsnecessary to function effectively : CR mgmt, HR mgmt,Leadership, Process mgmt, Info. mgmt

Practices activities that occur within eachelement of infrastructure to achieve high

performance

Tools graphical and statistical methods to planwork activities, data collection and analysis etc.


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Continuous Improvement(through measurement and analysis)

Customer

Focus

Process

Management

Employee Training

& Empowerment

T. Q. M.

Reduce rework activities (Cost reduction)

Shorter development cycle (Cost reduction)

Increased customer satisfaction (Quality improvement)

Pillars of TQM


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Eight Key Elements of TQM For a company to be successful in implementing

TQM they need to concentrate on these eight key

elements. These eight elements include Ethics Integrity Trust

Training Teamwork Leadership Recognition Communication.


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Continuous Improvement versus

Traditional Approach

Market-share focus Individuals Focus on who and

why Short-term focus Status quo focus

Product focus

Innovation

Fire fighting

Customer focus Cross-functional teams Focus on what and how

Long-term focus Continuous improvement

Process improvement focus

Incremental improvements

Problem solving

Traditional Approach Continuous improvement


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QUALITY PHILOSOPHIES


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Quality Gurus

W Edwards Deming

Joseph Juran Philip Crosby

Shigeo Shingo

Kaoru Ishikawa Yoshio Kondo

Taiichi Ohno


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Gurus of TQM

Walter.A.Shewhart -TQC &PDSA

W.Edwards Deming- 14 Points &PDCA

Joseph.M.Juran-Jurans Trilogy

A.Feiganbaum-Customer

requirement,CWQC,EmployeeInvolvement, TQC.

14


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Gurus of TQM Kaoru Ishikawa-Disciple of Juran &

Feigenbaum. TQC in Japan, SPC,

Cause &Effect Diagram,QC. Philips.B.Crosby. Four Absolutes-

Quality-Req, Prevention of NC,ZeroDefects & Measure of NC.

Taguchi.G-Loss Function.

15


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TQM MODELS


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Total Quality Models

A tentative plan and system of implementingTQM principles and practices in an organization

for achieving all the known benefits of TQM.

Primary purpose is to assure proper

implementation of TQ practice and provideadequate system of measurement for assessingperformance


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Any quality system model should address the followingcharacteristics of TQM process

Should be a systems approach Must show strong focus on customers

Transparent role of management and leadership Should incorporate systems for employee

participation Provide training and development of employees

Usage of tools for continuous improvement andTQ practice


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The variousTQM models available to industry and businesses arebased on Qlty Award Models like

Malcolm Baldrige National Quality Award(MBNQA), US

Deming Application Prize Award, Japan European Forum for Quality Management

(EFQM) Award Australian Quality Awards

Canadian Awards for Business Excellence


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The simplest model of TQM is shown in thisdiagram


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MBNQA


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The model consists of seven categories

Leadership

Strategic Planning

Customer & Market Focus

Measurement, Analysis & KnowledgeManagement

Workforce Focus

Process Management

Business Results


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EFQM


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The model consists of nine categories Leadership

Policy and Strategy People Partnerships and Resources Processes

Customer Results People Results Society Results Key Performance Results


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100

90

80

90

140

90

200

150

60


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Deming Prize

Dr. Demings teachings had an impact on theJapanese quality movement and, consequently,

the Deming Prize was established in his honourin 1951.


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The prize has two categories: The Deming Prize for Individuals: An annual award is

given to individuals that have made outstanding contributions to thestudy of TQM or statistical methods used for TQM, or to individualsthat have made outstanding contributions in the dissemination ofTQM;

The Deming Application Prize: An annual award is

presented to an organisation that has achieved distinctiveperformance improvements through the application of TQM. Theprize is open to organisations in all sectors - public or private, largeor small, or domestic or overseas. Furthermore, a division of acompany that manages its business autonomously may apply for theprize separately from the company.


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CONTINUOUS IMPROVEMENT


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Main vehicle in a TQM system for achieving highestlevel of performance

May take any one of several forms Enhancing value to the customer through new and

improved products and services Reducing errors, defects, wastes and related costs Increasing productivity and effectiveness in the use of

all resources Improving responsiveness and cycle time performance

for processes like resolving customer complaints, newproduct introduction


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Continuous improvement refers to bothincremental changes and breakthrough changes

Incremental small and gradual

Breakthrough large and rapid


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SIX SIGMA


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Six sigma is a business improvement approach that seeksto find and eliminate causes of defects and errors in

manufacturing and service processes by focusing onoutputs that are critical to customers and results in aclear financial return for the organization.

Six sigma equates to at most 3.4 dpmo

An ultimate stretch goal of all organizations that adoptthis philosophy is to have all critical processes at a sixsigma level of capability- a level of near zero defects.


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Project selection for 6 sigma Conformance problems unsatisfactory

performance by a well specified system

Unstructured performance problems-unsatisfactory performance by a poorly specifiedsystem

Efficiency problems-unsatisfactory performancefrom from stakeholders (other than customer)

standpoint Product design problems- designing new products tobetter satisfy user needs

Process design problems- designing new processesor substantially revising existing processes.


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Six Sigma Methodology DDefine priorities of customer with respect

to quality

MMeasure the processes and the defectsarising in the product due to the process

AAnalyze the process to determine the mostlikely causes of defects

I Improve the performance of the processand remove the causes of defects

CControl performance to ensure that

improvements are maintained over time


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Roles in Six Sigma


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DFSS


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DFSS Represents a set of tools and methodologies

used in the product development process to

ensure that goods and services will meetcustomer needs and achieve performanceobjectives and that the processes used to makeand deliver them achieve six sigma capability.


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The activities of DFSS Concept Development

Design development

Design Optimization

Design verification


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Concept Development:

determining product functionality based on

customer requirements, technological capabilitiesand economic realities

Design Development:

Focuses on product and process performanceissues necessary to fulfill product and servicerequirements in mfg or delivery


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Design optimization:

Minimizing the impact of variation in production

and use, creating a robust design

Design verification:

Ensuring that the production system is capable ofproducing within the specifications


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QFD


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QFD QFD is an approach developed by the Japanese to

meet customers requirements throughout the design

process and also in the design of production systems.

QFD is a planning process to guide the design,manufacturing and marketing of goods by integrating

the voice of the customer throughout the organization.


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House of quality A set of matrixes used to relate voice of

customer to a products technical requirements,

component requirements, process control plansand manufacturing operations


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Voice of

the

customer

Relationships

between

customer and

technical

requirements

Technical

requirements

Interrelationshi

ps

Priorities of

customer

requirement

s

Competitiv

e evaluation

Priorities of technical

requirements


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FMEA


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Design FMEA

Aids in design process by identifying known and

foreseeable failure modes and ranking failuresaccording to relative impact on product

Helps establish priorities based on expected

failures and severity of those failures and helpsfind out misjudgments and errors that may havebeen made.


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Design FMEA Reduces development time and cost of

manufacturing processes by eliminating many

potential failure modes before operation of theprocess


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In FMEA, failures are prioritized according to how serious their consequences are (severity)

how frequently they occur (occurrence) inability to detect them (detection)

o The overall risk of each failure is given by Risk PriorityNumber (RPN) which is the product of Severity (S),

Occurrence (O), and Detection (D)


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COST OF QUALITY


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Cost of quality is the amount of money a businessloses because its product or service was not done right

in the first place.

Cost of quality attempts to measure the costs associatedwith poor quality or lack of fitness for success.


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Prevention costs

Quality planning costs Salaries of individuals associated

Process control costs

Cost of analyzing production process andimplementing process control plans

Information system costs Cost to develop data requirements and measurements

Training and general management costs Cost on internal/external training programs Clerical staff expenses Misc supplies


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Appraisal costs Test and Inspection costs

Incoming materials, work-in-process, finished

goods Equipment costs and salaries

Instrument maintenance cost

Calibration and repair of instruments

Process measurement and control costs

Time spent by workers to gather and analyzequality measurements


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Internal failure costs Scrap and rework costs

Material, labour, overhead

Cost of corrective action Time spent determining causes of failure and

corrections

Downgrading costs

Revenue lost in selling product at lower price Process failures

Unplanned machine downtime Unplanned equipment repair

A compelling story was related by a Wal-Mart customer in a letter toFortune

magazine. He had telephoned Wal-Mart s headquarters to complain aIn the context of this case, explain how a company should treat its customers and customer complaints.

If you are the manager of the store how would you train front-line employees to handle customer complaints?


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External failure costs Cost due to customer complaints and returns

Rework on returned items

Cancelled orders

Product recall costs and warranty claims

Cost of repair or replacement

Associated administrative costs

Product liability costs

Resulting from legal actions and settlements

If you are the manager of the store, how would you train front line employees to handle customer complaints?


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DESIGN OPTIMIZATION


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Taguchi Loss Function Genichi Taguchi states that instead of constantly

directing effort toward controlling a process to

assure consistent quality, design themanufactured good to achieve high qualitydespite the variations that will occur in theproduction line.


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Traditional Goal Post View of Conforming to Specifications


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Taguchis loss function explains the economicvalue of reducing variation in manufacturing.

L(x) = k(xT)2

where

L(x) is the monetary value of the loss associated

with deviating from the target, T;xis the actual value of the dimension;

kis a constant

Nominal Is Best Taguchi Loss Function


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Nominal-Is-Best Taguchi Loss Function

INTRODUCTION


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INTRODUCTION

Taguchi Methods is a statistical methods developedlargely by GENICHI TAGUCHI to improve quality

of manufactured goods.

The philosophy of off-line quality control.

Innovations in the design of experiments.

T hi L F ti D fi iti


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Taguchi Loss Function Definition

Taguchi defines Quality as the loss imparted by theproduct to society from the time the product is

shipped.

LOSS = Cost to operate, Failure to function,maintenance and repair cost, customer satisfaction,

poor design. Product to be produced being within specification


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Taguchis Vs Traditional Approach

Taguchs Traditional

When a product

moves from its Targetwill cause the losseven if the productlies or not within

Limits

There is Good or Bad

Products only as perLimits

T hi Q d ti Q lit L


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Taguchis Quadratic Quality Loss

Function

Quality Loss Occurs when a products deviatesfrom target or nominal value.

Deviation Grows, then Loss increases.

Taguchis U-shaped loss Function Curve.


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Taguchis U-shaped loss Function Curve.

LTL Nominal

Measuredcharacteristic

UTL

Taguchi loss Fn

Scrap or Rework Cost.

Loss

Formula to find Taguchis Loss Fn


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Taguchi uses Quadratic Equation to

determine loss Curve

L (x) = k (x-T)

Where L (x) = Loss Function,

k = C/d = Constant of proportionality, where C

Loss associated with sp limitd - Deviation of specification

from target value

x = Quality Features of selected product,

T = Nominal Value of the product and

(x-T) = Tolerance


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Assume that a certain CTQ has a spec 0.500 +0.020. an analysis of records shows that if the

spec exceeds the target by 0.020 on either side,the cost of repair that needs to be incurred isRs.50.

i.e. 50 = k(0.20)2

K=125,000

The loss fn. is L (x) = 125000 (x-T)


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Japanese plant

variance = 2.78

US plant

variance = 8.33


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Expected Loss EL(x) = k (2 + D2)

2 -variance of quality characteristic

D2 - square of deviation of mean value fromtarget

D2 =(x-T) 2

K=0.16

For San Diego plant, variance was 8.33

For Japanese plant, variance was 2.78


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Loss:

San Diego = 0.16 x 8.33 = USD 1.33

Japanese = 0.16 x 2.78 = USD 0.44


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RELIABILITY PREDICTIONReliability

Ability of a product to perform as expected over time

The probability that a product, equipment orsystem performs its intended function for a

stated period of time under standard operatingconditions


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Four important elements

Probability Time

Performance

Operating conditions


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Reliability measurement

Reliability is measured as the number of failures

per unit time under consideration (failure rate). Failure rate,

= Number of failures/Total unit operating hours

= Number of failures/(Units tested) x (Number ofhours tested)


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Failure Rate

Products follow a pattern of failure. There is no information about the reliability (i.e.

Failure) of the product.

Failure Rate is a constant in known period of failure

can be found out using Exponential DistributionRt = e t Rt = Reliability of survival

Rt = e - t / t = Time for operation without failure

= Failure rate = Mean time to Failure

This function represents the probability that the item will not fail within t unitsof time.


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Debug

High failure rate at the initial stages because of

inappropriate use or flaws in the design andmanufacturing

Chance

Failure of the product due to accidents, poormaintenance or limitations on the design

Wear Out

Classification of failures


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tqm student ppt - mba

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