CBMEC 1 Operations Management and TQM Semi-Finals PDF

CBMEC 1 OPERATIONS MANAGEMENT AND TQM SEMI-FINALS TOTAL QUALITY MANAGEMENT (TQM) DEFINITIONS OF QUALITY - Quality is a concept that encompasses the attributes of a product or service that make it desirable and valuable to consumers. It's about meeting or exceeding customer expectati...

CBMEC 1 OPERATIONS MANAGEMENT AND TQM SEMI-FINALS TOTAL QUALITY MANAGEMENT (TQM) DEFINITIONS OF QUALITY - Quality is a concept that encompasses the attributes of a product or service that make it desirable and valuable to consumers. It's about meeting or exceeding customer expectations in terms of: ▪ Performance. How well the product or service functions. ▪ Reliability. How consistent the product or service is over time. ▪ Durability. How long the product or service lasts. ▪ Aesthetics. How appealing the product or service is to the senses. ▪ Features. The specific characteristics and capabilities offered. ▪ Customer service. The level of support provided. THE IMPORTANCE OF QUALITY Quality is a cornerstone of success in any field, from manufacturing to services. It's more than just meeting expectations; it's about exceeding them. Here's why quality is so crucial: 1. Customer Satisfaction ▪ Loyalty. High-quality products and services foster customer loyalty, leading to repeat business and referrals. ▪ Trust. A reputation for quality builds trust, making customers more likely to choose your brand over competitors. ▪ Positive Reviews. Satisfied customers are more likely to share positive experiences, improving your brand's image. 2. Competitive Advantage ▪ Differentiation. Quality can set your business apart from others, giving you a competitive edge in the marketplace. ▪ Premium Pricing. You may be able to charge a premium price for superior products or services. 3. Reduced Costs ▪ Waste Reduction. Quality control helps minimize waste and rework, reducing costs. ▪ Improved Efficiency. Efficient processes and fewer defects lead to increased productivity. 4. Enhanced Reputation ▪ Brand Image. A strong reputation for quality enhances your brand's image and credibility. ▪ Risk Mitigation. A quality-focused approach can help mitigate risks associated with product defects or poor service. 5. Employee Morale ▪ Pride. Employees who work on high-quality products or services often have greater job satisfaction and pride. ▪ Motivation. A culture of quality can motivate employees to strive for excellence. IMPORTANT QUALITY TERMS ▪ Quality control is the ongoing effort to maintain the integrity of a process to maintain the reliability of achieving an outcome. ▪ Quality assurance is the planned or systematic action necessary to provide enough confidence that a product or service will satisfy the given requirements of quality. QUALITY CONTROL VS QUALITY ASSURANCE Quality control is product-oriented and focuses on defect identification. It deals with adherence to requirements. It refers to quality related activities associated with the creation of project deliverables and is performed after the product is developed. Examples of quality control activities include inspection, deliverable peer reviews, and testing processes. Quality assurance is process-oriented and focuses on defect prevention. It is generic and does not concern the specific requirements of the product being developed. It refers to the process used to create the deliverables and can be performed by a manager, client, or even a third-party reviewer. Quality assurance activities are determined before production work begins and these activities are performed while the product is being developed. Examples of quality assurance include process checklists, project audits and methodology, and standards development. TYPES OF QUALITY 1. QUALITY OF DESIGN Quality of design is determined by understanding customer needs through market research and sales analysis. It involves developing products that meet those needs at a specified cost. Collaboration between various departments is essential in this process. Example: Smartphone Design Imagine a smartphone that is considered a high quality design: ▪ Ergonomics. The smartphone has an ergonomic design that fits comfortably in the hand. Its buttons and controls are intuitively placed for easy use. ▪ Aesthetics. The design is visually appealing, with a sleek and modern look. It uses high quality materials like glass and metal, giving it a premium feel. ▪ User Interface. The user interface is well thought-out, with an intuitive and user-friendly layout. Icons and menus are clear and easy to navigate. ▪ Durability. The smartphone is built to last, with a robust construction that can withstand everyday wear and tear. It has been tested for durability and impact resistance. ▪ Performance. The phone's internal components are powerful, ensuring smooth and efficient operation. It offers a fast and responsive user experience. ▪ Innovative Features. The design incorporates innovative features, such as a cutting-edge camera system, facial recognition, and a high-resolution display. 2. QUALITY OF CONFORMANCE Quality of conformance deals with translating user-based characteristics into identifiable product attributes. It refers to the extent to which a firm and its suppliers can create products with a predictable degree of dependability and uniformity at a given cost in keeping with the quality requirements determined by the study on quality of design. Once the specifications have been determined by the study on quality of design, organizations must continuously strive to improve on these specifications. Example: Manufacturing Automobile Parts Imagine a company that manufactures automobile parts, specifically brake pads. In this context: ▪ Design Standards. The company has specific design standards for brake pads, including the size, composition, and performance characteristics. For instance, the brake pad must be a certain thickness, made of a specific type of friction material, and have a coefficient of friction within a defined range. ▪ Production Process. The production process is designed to adhere to these standards. Machines and workers follow strict guidelines to ensure that each brake pad is manufactured according to the design specifications. ▪ Quality Control. Quality control processes are in place to check random samples of brake pads for conformance. This may involve measurements, material composition tests, and performance tests to ensure they meet the established standards. ▪ Non-Conformance. If a brake pad deviates from the specified standards, it is considered non-conforming. Such products are rejected and not used in the assembly of vehicles to ensure safety and performance standards are met. 3. QUALITY OF PERFORMANCE Quality of performance deals with organizing the manufacturing process to ensure that product quality stringently adheres to specifications. Quality of performance studies focuses on ascertaining how quality characteristics determined the quality of design and improved and innovated through the quality of conformance studies, perform in the market. The profit incurred also depends on the quality of performance in the market. The major tools used to deduce the quality of performance are a study of after-sales service and service call analysis. These tools evaluate why consumers like or dislike a product. Example: Let's consider a company that manufactures smartphones. The company has specific design and performance standards that each phone must meet to ensure quality of conformance. ▪ Design Standards.The company specifies the dimensions, materials, and aesthetic features of the smartphone. For instance, the phone should have a certain screen size, be made of a particular type of metal or plastic, and have a sleek design. ▪ Performance Standards.The company sets performance criteria, such as the speed of the processor, battery life, camera quality, and software functionality. For instance, the phone must have a battery that lasts at least 10 hours of talk time, a camera with a minimum of 12 megapixels, and run the latest version of the operating system. If a smartphone is manufactured and meets all these design and performance standards, it has a high quality of conformance. However, if a phone is produced with deviations from these specifications, it has a lower quality of conformance. WHAT IS TOTAL QUALITY MANAGEMENT (TQM)? ▪ Total quality management (TQM) is the ongoing process of identifying and minimizing or eliminating production defects, optimizing the supply chain, enhancing the customer experience, and ensuring that staff members are trained to the highest standards. ▪ The goal of total quality management is to hold each party responsible for the whole standard of the finished good or service. ▪ It is an organized method of managing an entire organization through ongoing internal practice improvement, the process seeks to raise the caliber of an organization's outputs, including its products and services. The standards established as part of the TQM process can take into account both internal priorities and any current industry standards. ▪ Industry standards may involve conformity to numerous rules and regulations controlling the functioning of a certain business. These standards can be defined at several levels. Production of goods in accordance with an accepted standard, even if the standard is not supported by official legislation, is another example of industry standards. HISTORY OF TQM The origins of TQM can be traced to Walter A. Shewhart's introduction of contemporary quality control in the early 1900s. In 1931, Shewhart published Economic Control of Quality of Manufactured Products, a seminal industrial book. One of the founding and fundamental tenets of manufacturing quality control is this explanation. Later improvements in Shewhart's work resulted in the introduction of new quality management standards. What Is Total Quality Control? The Japanese Way, is a book written by Joseph M. Juran that was published in 1954. The project was inspired by Juran's visit to Japan at the invitation of Japanese engineers and scientists. Later, Juran co-wrote Quality Planning and Analysis, another TQM best-seller. Another prominent figure in TQM history is W. Edwards Deming. After the Second World War, Deming was also assigned to Japan, where he was associated with the Union of Japanese Scientists and Engineers (JUSE). Deming's 14 Points, Deming's Seven Deadly Diseases of Management, and The Deming Wheel are just a few of the TQM frameworks he worked on throughout his career. Key principles of TQM include: ▪ Customer Focus. Understanding and meeting customer needs and expectations is the primary goal. ▪ Continuous Improvement. Striving for constant improvement in all processes and products. ▪ Employee Involvement. Encouraging and empowering employees to contribute to quality improvement. ▪ Process Approach. Focusing on processes rather than individual tasks to improve efficiency and effectiveness. ▪ Fact-Based Decision Making. Using data and evidence to make informed decisions. ▪ Supplier Partnerships. Building strong relationships with suppliers to ensure they meet quality standards. PROS AND CONS OF TOTAL QUALITY MANAGEMENT Pros Delivers stronger, higher quality products to customers Results in lower company-wide costs Minimizes waste throughout the entire production and sale process Enables a company to become more adaptable Cons May require substantial financial investment to convert to TQM practices Often requires conversion to TQM practices over a long period of time May be met with resistance to change Requires company-wide buy-in to be successful KAIZEN: THE PHILOSOPHY OF CONTINUOUS IMPROVEMENT Kaizen is a Japanese term that means "continuous improvement." It's a philosophy that emphasizes making small, incremental changes over time to improve efficiency, quality, and productivity. The key idea behind Kaizen is that small changes can lead to significant improvements over the long term. Key principles of Kaizen Small, incremental changes Kaizen focuses on making small, gradual improvements rather than large-scale changes. Involvement of everyone All employees, regardless of their position, are encouraged to contribute to the improvement process. Continuous improvement Kaizen is a never-ending process of improvement, with the goal of always striving for better results. Elimination of waste Kaizen seeks to identify and eliminate waste in all forms, such as defects, waiting time, and unnecessary movement. Common Kaizen techniques: 5S: A method for organizing and cleaning a workspace to improve efficiency and safety. Just-in-Time (JIT): A system for producing goods only as needed, reducing waste and inventory costs.  Total Productive Maintenance (TPM): A strategy for maintaining equipment and machinery to prevent breakdowns and improve productivity. Quality Circles: Groups of employees who meet regularly to identify and solve quality problems. TQM TOOLS ▪ Cause-and-effect diagram (also called Ishikawa or fishbone chart): Identifies many possible causes for an effect or problem and sorts ideas into useful categories. ▪ Check sheet: A structured, prepared form for collecting and analyzing data; a generic tool that can be adapted for a wide variety of purposes. ▪ Control charts: Graphs used to study how a process changes over time. ▪ Histogram: The most commonly used graph for showing frequency distributions, or how often each different value in a set of data occurs. ▪ Pareto chart: Shows on a bar graph which factors are more significant. ▪ Scatter diagram: Graphs pairs of numerical data, one variable on each axis, to look for a relationship. ▪ Stratification: A technique that separates data gathered from a variety of sources so that patterns can be seen (some lists replace “stratification” with “flowchart” or “run chart”.