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total quality management quality management business processes organizational management

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This document details Total Quality Management (TQM), a method of organizational management for advancing product, process, service, and culture quality. It also discusses related topics like customer satisfaction and shifting from traditional management approaches to TQM.

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Total Quality Management Measurement (performance) - reworks is an all inclusive and well thought and defects out means to organizational Synergy in teamwork - brings people management that searches to together advance the quality or pr...

Total Quality Management Measurement (performance) - reworks is an all inclusive and well thought and defects out means to organizational Synergy in teamwork - brings people management that searches to together advance the quality or product, People make quality - the quality of their process, service and culture own work through minor changes Continuous improvement cycle - both Combines basic management internally and externally techniques, current improvement Prevention - “right at the first time, efforts and technical tools everytime” Focuses on customers and with - Zero defects dedication to continuous improvement Benefits of TQM A process of a controlled change Create a good corporate culture of a continuous improvement of the Better reviews from customers quality of product and service to Better performance from boost productivity employees Engages every member in the organization Shifting from traditional management Responsibility for quality to total quality management Quality teams Quality management is based on traditional: TQM: the customer’s point of view Focuses on Focuses on Primary elements internal activities customers Recognition Bad quality Organizational Training products are due level Teamwork to worker’s lapses Leadership Integrity and ethics Checking Quality assurance Communication rather than checking Core concepts - can be used to drive the Assumptions Based decisions process of continuous improvement and of facts and develop a framework for quality figures improvement TQM has changed the culture and way Plan of thinking of the organizations Do Check TQM and REENGINEERING (BPR) Act Similarities: Customer Satisfaction - develop the idea of “energy meter” BPR TQM Internal Customer Satisfaction - Organizati significant significant successful internal rel. onal All work is process - improvement of change business processes Market research and sales call Time Substantial Substantial investment analysis 2. Quality of conformance Differences: Level of uniformity and reliability Quality control from the raw BPR TQM materials into finished product Defects control Risk High moderate Meeting set standard Participati Top down Buttom up on 3. Quality of performance Meeting the customer’s Level of Radical Incremental expectation change Pleases the customer Ex. customer survey (service); test Quality drive (quality of the product) More than nonexistent defects Re establishes pride and loyalty Quality level Nonstop improvement within 1. Organizational level organization Quality requirements is based on Quality in a different manner the customer’s quality requirements Approaches to quality definition Transcendent - (exceeding usual Issues: design) Products and services that meets Product based - durability and the customer’s expectation reliability (quantifiable or Products and services that measurable) customer needs but did not receive User based - high quality products Resolution: and consumer preferences Productivity and cost requirement (perceived quality) Benchmarking Manufacturing based - Customer feedback engineering and manufacturing Customer requirements must be practices (conformance) the foundation for goal setting, Value based - quality and value problem solving, performance (“best buy” products/service” evaluation, incentive compensation, non financial Quality types rewards and resource allocation Quality 2. Process level Meeting and exceeding customer’s Focuses on the function of the expectation at a price he is willing departments to pay Issues: 1. Quality of design Product and services that are the Must satisfy the requirements of most important to external the customers customers Simple and less expensive Processes that produces these products/services are built exactly types of products and service how the customer defines it Processes that has the major Labor intensive effect on the organization’s Scraps and reworks are obvious customer-driven performance standard 3. Statistical quality control Resolution: paradigm End user requirements should be Electronics translated into specific measures Low scraps, low reworks and that should drive one or move emphasis on the production internal measures for the overall process process 4. Total quality paradigm 3. Performance/job/task/design Ford level Focuses on customers and Vital to generate individual quality suppliers in the context of organization Customers can participate in Developing standards to measure product description, performance individual key outputs is necessity evaluation and employee to define quality involvement Areas to be measured should Results in high quality products, include accuracy, openness, low cost, speedy delivery and innovation, reliability, ease of use, decrease in reworks timeliness, volume, rate cost and flexibility 5. Techno craft paradigm Productivity and cost are the Apparel industries requirements for a customer-driven Social-technical complement to quality custom craft paradigm with the intention of reducing delivery time Considerations: Utilizes the product process Clear performance expectation flexibility positive/negative results from performing the task Cost of quality Feedback individual’s Method that permits an mental,physical and emotional organization to decide the level in capacity which its resources are used for activities Quality paradigms Prevention cost Quality planning and training 1. Custom craft paradigm Appraisal cost Coffee shops Spotting defects rather than Focuses on products and services prevention products/service are built exactly Quality audit how the customer wants it Internal failure cost Failure analysis 2. Mass production and sorting Spotting defects earlier Automobile parts and production External failure cost rate After sales Failed to attain the standards until Ex. automobile failure transferred to customers 4. Conformance 2 main components of cost of quality Is the product made exactly how the designer intended? Cost of conformance Extent a product’s design and Making available products/service operating characteristics that based on the required standards meets an established standard Cost of non conformance Specifications are set and a target Failure costs linked to a process is set (tolerance) not functioning based on the required standard 5. Durability How long does the product last? Dimensions of product quality Measures how much use a person gets before the product breaks 1. Performance down Will the product do its intended Measures the product’s life job? Durability and reliability are closely Consist of primary operating linked characteristic of a product Durability figures must be Based on functional requirements, interpreted with care not taste Durability testing Ex. cars (speed, acceleration, comfort) 6. Serviceability How easy is it to repair the 2. Features product? What does the product do? Involves the customer’s ease in These are added characteristics obtaining service repair that increases the attraction of the Responsiveness of the service customer to the product/service personnel (ex. crm) Qualities of a product such as size, Competence and ease of repair shape, material, functionalities and Company complaint in handling capabilities procedure Makes a product saleable Ex. samsung smart tv 7. Aesthetics What does the product look like? 3. Reliability How does the product look, feels, How often does the product fail? taste, sound or smell? The product will not fail inside a Personal judgements and particular time period indications of personal preferences May be directly connected to Refers to the outside feel of the performance product Relevant to durable goods rather Aesthetic properties adds to the than products/service that are company or brand’s identity consumed instantly Mean time before failure - average 8. Perceived quality time What is the reputation of the Failure rate - frequency company or its products? Involves individual’s subjective Ikigai appraisal to the product or Small achievements service’s attributes Images, advertising and brand Dr. William Edwards Deming identity are vital December 14 1900 - december 20 Reputation is the primary stuff for a 1993 perceived quality (comparison of Father of total quality management products) Known for his initiation in the transformation of the japanese Dimensions of service quality manufacturing sector after world war 2 1. Tangible Known for his 14 points, deming Associated to the environment in chain reaction and profound which service is rendered to the knowledge customer Modified shewhart’s PDSA (plan, do, study, act) and refer to it as 2. Reliability deming cycle (plan, do, check, act) Ability to perform the promised service dependably and accurately He stated that… Only the customers can define the 3. Responsiveness quality of a product/service Willingness to help and provide His approach to TQM is mainly prompt service concentrated in the creation of Also captures the impression of organizational system based on flexibility and the ability to tailor cooperation and learning service to customer’s needs The responsibilities of a top management is to be a leader in 4. Assurance changing the processes and Employee’s knowledge of courtesy systems and the ability of the firm and its Leadership plays an important role employees to inspire trust and in ascertaining success in quality confidence management Employees should be competent to gain trust He emphasizes the importance of… To gain competitive advantage and Identification and measurement of customer’s loyalty the customer requirements Creation of supplier partnership 5. Empathy Uses the functional team to identify Refers to the caring attitude and solve quality problems provided by the organization to Enhancement of the employee’s their customer skills Meets special requirements of the Participation of the employees customers Pursuit of continuous improvement Service quality gap 14 points Kaizen 1. Constancy of purpose - Create a Japanese term for continuous firmness of purpose for the improvement continuous improvement of changing attitudes and products and service culture - Distributes the resources to accommodate the long term needs 10. Eliminate exhortations/catchphrase - such 2. The new philosophy - Adapt a exhortations will only form new philosophy for one can no adversarial relationships longer allow delays, mistakes and faulty workmanship 11. Eliminate arbitrary numerical target - remove work standards 3. Cease dependence on that stimulate numerical quotas inspection - Remove the need for - Replace these with aids mass inspection by building the and useful supervision quality into the product - Insist a statistical evidence 12. Permit pride of workmanship - of built in quality eradicate annual merit rating and management by objectives 4. End lowest tender contracts - - Responsibility of managers, Reduce total costs management and foreman to - Overlook hidden cost like change the absolute number of increased travel visit qualities 5. Improve every process - 13. Encourage education - the need management’s job to constantly for ongoing and continuous make the system better education and self improvement for the whole organization 6. Institute training on the job - - Without properly trained introduce up to date methods and motivated employees, - Incorporating organizations continuous improvement to make greatest use of all will not be carried out employees 14. Top management commitment - 7. Institute leadership - espouse clearly defined commitment of the and introduces leadership top management to constantly - Aims at helping people improve quality and productivity carry on a better job 8. Drive out fear - Create a fear free 7 deadly reasons - factors he believed environment where everyone can that can slow down the transformation contribute and work effectively 1. Lack of constancy of purpose to 9. Breakdown barriers - barriers plan products and services that between organizational level and have a market sufficient to keep departments are called internal the company in business and to barriers keep jobs - Barriers can be removed 2. Stress on short term profits. Short using better communication term thinking driven by fear of cross functional teams and unfriendly takeover attempts and pressure from bankers and Stage 1: shareholders to generate dividends uncertainty 3. Personal reviews on managers, management by objectives with no Management, No methods or resources to achieve understanding comprehension of objectives; includes performance and attitude quality as a management tool evaluations, merit rating, and annual appraisals Tends to blame 4. Job hopping my managers quality department 5. Using only evident data and for quality information in decision making with problems little to no consideration given to Quality Quality is hidden what is unknown or cannot be organizational in manufacturing known status or engineering 6. Extreme medical costs department 7. Too much costs of liability driven up by lawyers who work on Inspection is contingency fees probably not a part of organization Philip crosby - June 18 1926 - august 18 Emphasis is on 2001 appraisal and - Quality is free in 1979 sorting - Established the absolutes of quality management - The heart of his philosophy is zero defects Stage 2: - His theory was scorned to awakening unhelpful accomplishments Management, Quality - Deming censored his philosophy understanding improvement may because he believed that it was and attitude be of value but is being directed at the wrong people not willing to provide money 4 absolutes of quality and time to make it happen 1. The definition - quality is conformance to requirements not goodness Quality A stronger quality 2. The system - prevention not organizational leader is appraisal status appointed but the 3. The performance standard - zero main emphasis is still on appraisal defects and moving the 4. The measurement - price of non product conformance to requirements not quality circles Stage 3: 5 stages of quality management enlightenment maturity grid Management, While going understanding through quality and attitude an essential part and attitude improvement of the company program learn system more about quality management Quality Quality manager is organizational on board of Becomes more status directors responsible and supportive Prevention is the main concern Quality Quality organizational departments Quality is a status report to top thought leader management, all appraisal is incorporated and 14 step methodology manager has a 1. Management commitment - to role in make clear the management’s management of position on quality the company 2. Quality improvement teams - to carry out quality improvement program 3. Quality measurement - to exhibit Stage 4: wisdom existing and possible non Management, Participating and conformance problems understanding understanding the 4. Cost of quality - to identify the and attitude absolutes of component of cost of quality and quality give details on its application as a management management tool Recognizes 5. Quality awareness - to give personal role in method of elevating individual the continuous concerns among the personnel in emphasis the company towards the conformance of the product and Quality Quality manager is service organizational an officer in the status company 6. Corrective action - to offer a systematic method of deciding the Effective status problems recognized through reporting and actions taken in the past preventive action 7. Zero defects planning - to study the different activities that must be Involves customer performed as groundwork for affairs and special assignment officially initiating the zero defects program 8. Supervisor training - to identify the different types of training the Stage 5: certainty supervisor requires to energetically perform their roles Management, Consider quality 9. Zero defects day - to produce an understanding management as event which makes all employees appreciate, through personal 1. Quality control must be part of the experiences, that there has been a essential part for quality change improvement 10. Goal setting - to twist promises 2. Quality is no mistake and commitment into action by 3. Quality must be planned persuading individuals to set up 4. There is no shortcuts to quality improvement goals 5. Make use of the problems as a 11. Error cause removal - to offer source of improvement individual employees a way of communicating to the management Juran’s formula consists of: 12. Recognition - to give thanks to 1. Create an awareness about the those who contributed needs and propose an opportunity 13. Quality council - to bring for improvement collectively professionals in the 2. Setting goals for improvements realm of quality for planned 3. Synthesize paths to attain goals communication 4. Give training 14. Do it over again - to accentuate 5. Do projects to solve problems that the quality improvement 6. Inform progress program never ends 7. Provide recognition 8. Communicate outcome Crosby’s claim “mistakes are caused 9. Keep score by two factors” 10. Uphold thrust by yearly 1. Lack of attention improvement 2. Lack of knowledge Juran’s view, the approach in Dr. Joseph Moses Juran - december 24 managing the quality includes: 1904 to february 28 2008 1. The irregular problems that are - Assisted the japanese in their detected and acted upon through reconstruction processes after the the process of quality control world war 2: quality planning, 2. The constant problem needs quality control, quality special process, namely, quality improvement improvement - Questioning which aspect in the 3. Some of the constant problem is quality trilogy is the most vital is traceable to poor quality planning like asking “which leg of the tool is process the most important?” - While deming’s approach is more Breakthrough activities or quality radical in nature, juran’s approach improvement: is more evolutionary 1. Breakthrough in attitude - - To deming, statistics is the persuading the responsible that a language of the business, while to change in quality level is juran money is the language of the advantageous business 2. Discovery of vital few projects - determine which quality problem Juran profounded the following areas are necessary messages: 3. Organizing of breakthrough in knowledge - defining the organizational system for attaining the knowledge for accomplishing a Dr. Walter Andrew Shewhart - march 11 breakthrough 1967 to march 18 1981 4. Formation of a steering arm - - Grandfather of total quality defining and staffing a system for management directing the study for quality - Born to Anton and Esta Barney improvement Shewhart in New Canton ll 5. Formation of a investigative arm - His groundbreaking work of control - defining and staffing a system for chart led to a quality revolutionary executing technical inquiry - His principle was that bringing a 6. Diagnosis - to collect and examine process in a state of statistical the facts necessary and propose control which would permit the the action desirable distinction between assignable and 7. Breakthrough in cultural pattern chance cause variations. This is - determine the effect of an the birth of the modern scientific anticipated change on the people study of process control involved and looking for ways to rise above opposition to change shewhart ‘s cycle - to manage the effects 8. Breakthrough in performance - of variations getting the agreement to take - Stressed that eliminating variability action will improve the quality 9. Transition to the new level - - His work created the foundation for implement the change the statistical quality control - Plan do check act Control activities include: 1. Choosing the control subject which Dr. Armand V. Fiegenbaum - born in is choosing what is intended to 1992 regulate - Best known for developing the 2. Choosing the unit of measure concept of total quality control 3. Setting a goal for the control (1956) subject - Japanese version of his concept is 4. Creating a sensor which can called company wide quality measure the control subject in control terms of unit of measure 5. Measuring the real performance 3 key steps to quantity: 6. Interpret the difference between 1. Quality leader - set the tone and the actual performance and the demonstrate goal 2. Quality modern technology - the 7. Taking action (if any) on the importance use of modern tools differences and techniques for quality management Planning activities include: 3. Organizational commitment - 1. Establish quality goal fostering a culture of process 2. Identify customers throughout the organization 3. Discover customer needs 4. Develop product features Fiegenbaum 10 points 5. Develop process features 1. Quality is conscious programmed 6. Establish a process control and not technical function transfer to operation 2. Quality is not what an engineer or 7. Control chart marketer says but what the customer speaks of Key elements to the development of 3. Quality and cost are sum not participative bottom up view of quality differences 1. Quality starts with education and 4. Quality must be organized to culminates with education identify everybody’s job in the 2. The first step in quality is to know organization the customer’s requirements 5. Quality is a technique in managing 3. The perfect state of quality control an organization. Good happens when inspection is no management means continuous longer compulsory stress to quality 4. Take out the root cause, not the 6. The quality improvement symptoms highlighting must take place 5. Quality control is the duty of all throughout all activities of the workers and all divisions organization 6. Do not mistake means with the 7. Quality is realized through objective assistance and contribution of 7. Set quality first and set your sight each person related to on long term profits organization. It is also an ethic 8. Market is the entry and way out of 8. Continuous quality improvement quality needs extensive range of new and existing quality technology 6 fundamental principles 9. Total quality program approach 1. Quality first - not short term profits leads to productivity and is most 2. Customer orientation - not effective and less capital intensive producer orientation 10. Quality comes, if it is clear, 3. The next step is your customer - customer oriented, effective and breaking down the fence of structured sectionalism 4. Using facts and data to make a Professor kaoru ishikawa - father of presentation - using statistical quality circle methods - Establish the use of quality circle 5. Reverence for humanity as a - Championed the use of quality management philosophy, full tools participatory management - Developed the tool “cause and 6. Cross- functional management effect diagram” - Also known as ishikawa diagram or Genichi Taguchi - born in japan “the fish bone diagram” - Graduated mechanical engineering - Obtained his Ph.D in year 1962 7 basic tools “indispensable to quality - Japanese quality expert known for tools” his product design 1. Process flow chart - Estimated that 80% of defected 2. Cheat sheet items are due to poor product 3. Histogram design 4. Pareto chart - Stresses that companies should 5. Cause and effect diagram center their quality effort to product 6. Scatter diagram design - Defines quality as the loss 5. Blueprint the matrix requirements imparted to the society from the and define the data analysis time the product is shipped procedure - The smaller the loss, the more 6. Carry out the matrix desirable the product 7. Examine the data, identify optimum levels for the control factors and Key elements foresee performance under these 1. Quality improvement should focus levels on reducing the variation of the 8. Perform the confirmation products key performance experiment prepare future actions characteristics about their target value Dr. Shingo Shigeo - born at Saga city, 2. The loss suffered by a customer japan in 1909 due to a product performance - Graduated from yamanashi variation is often just about technical college in 1930 proportional to the square of the - Worked for the Taipei railway deviation of the performance company characteristic from its target value - Worked in amano manufacturing 3. The ultimate quality and cost of plant, yokohama in 1945 manufactured products are - Developed just-in-time and toyota determined to a great extent by the production system in 1959 engineering design of the product - Reduced the set up time of and the manufacturing process shipbuilding from 4 months to 2 4. A product or a process’s months in 1956-1958 performance variation can be - Developed the lessened by exploiting the non ‘Defects=0’/poka-yoke/mistake linear effects of the products or proofing in 1961 process parameters on the - Single minute exchange in dies performance characteristics concept in 1970 5. Statistically planned experiments - Died in 1990 can be used to the name of the settings of product process 3 teaching concept: parameters that reduce 1. Just in time (JIT) performance variation 2. Single minute exchange in dies (SMED) 8 point approach 3. Zero quality control (ZQC) 1. Determine the main function, side effects and loss modes JIT - production strategy that strives to 2. Determine the noise factors and improve a business’ return on investment the testing conditions for by reducing in process inventory and evaluating failure of quantity associated carrying costs 3. Determine the quality - Uses a system approach to characteristics to be observed and develop and operate the objective function to be manufacturing teams optimized - Organizes the production system 4. Determine the control factors and to make products available when their alternate level needed - A method for optimizing processes that involves continual reduction of waste SMED - system for speedy changeovers between products - The target is to make simpler materials, machinery, processes and skills ZQC - ideal system that produces no defective products - Error proofing devices was implemented - Poka-yoke technique is a specific example of error proofing that originated it japan. It relates to stopping processes as soon as defects happen Masaki Imai- a japanese quality guru - The founder and president of kaizen institution - Kaizen refers to continuous or ongoing improvement in japanese - Established the kaizen institute to help western companies Kaizen is based on certain guiding principles: 1. Good processes carry out good results 2. Go see to yourself to grab the present situation 3. Speak with data, direct by facts 4. Take action to contain and remedy root cause of problems 5. Work as a team 6. Kaizen is everybody’s business

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