MGC1 Chapter 5 -Total Quality Management

Total quality management
(TQM)

is an integrated organizational effort designed to improve quality at every level

customer-de?ned quality

meeting quality expectations as de?ned by the customer

dimensions of quality

� Conformance to speci?cations
� Fitness for use
� Value for price paid
� Support services
� Psychological criteria

Conformance to speci?cations

measures how well the product or service meets the targets and tolerances determined by its designers.

Fitness for use

evaluates how well the product performs its intended function or use.

Value for price paid

Quality de?ned in terms of product or service usefulness for the price paid.

Support services

quality de?ned in terms of the support provided after the product or service is purchased.

Psychological criteria

de?ning quality that focuses on judgmental evaluations of what constitutes product or service excellence.

Managing quality in a Manufacturing Organizations

1. Conformance to speci?cations
2. Performance
3. Reliability
4. Features
5. Durability
6. Serviceability

Service Organizations focus on?

1. Tangible factor
2. Consistency
3. Responsiveness to customer needs
4. Courtesy/friendliness
5. Timeliness/promptness
6. Atmosphere

Prevention costs

all costs incurred in the process of preventing poor quality from occurring.

Appraisal costs

cost that are incurred in the process of uncovering defects. They include the cost of quality inspections, product testing, and performing audits to make sure that quality standards are being met.

Internal failure costs

cost that are associated with discovering poor product quality before
the product reaches the customer site.

rework

the cost of correcting the defective item

scrap

the item is so defective that it cannot be corrected and must be thrown away.

External failure costs

cost that are associated with quality problems that occur at the customer site.

Walter A. Shewhart

-Contributed to understanding of process variability
-Developed concept of statistical control charts.

W. Edwards Deming

-Stressed management's responsibility for quality.
-Developed "14 Points" to guide companies in quality improvement.

Joseph Juran

-De?ned quality as "?tness for use."
-Developed concept of cost of quality

quality trilogy

quality planning, quality control, and quality improvement

quality planning

companies identify their customers, product requirements, and overriding business goals to ensure that the quality standards can be met.

quality control

Stresses the regular use of statistical control methods to ensure that quality standards are met and to identify variations from the standards.

quality improvement

should be continuous as well as breakthrough. to implement this, workers need to have training in proper methods on a regular basis.

Armand V. Feigenbaum

-Introduced concept of total quality control.

Philip B. Crosby

-Coined phrase "quality is free."
-Introduced concept of zero defects

Kaoru Ishikawa

-Developed cause-and-effect diagrams.
-Identi?ed concept of "internal customer.

Genichi Taguchi

-Focused on product design quality.
-Developed Taguchi loss function.

Continuous improvement (Kaizen)

A philosophy of never-ending improvement.

The plan - do - study - act (PDSA) cycle

A diagram that describes the activities that need to be performed to incorporate continuous improvement into the operation.

Benchmarking

studying the business practices of other companies for purposes of comparison.

Employee Empowerment

Part of the TQM philosophy is to empower all employees to seek out quality problems and correct them.

Team Approach

TQM stresses that quality is an organizational effort. To facilitate the solving of quality problems, it places great emphasis on teamwork.

Quality circle

A team of volunteer production employees and their supervisors who meet regularly to solve quality problems.

the seven tools of quality control

� Cause-and-effect diagrams
� A ?owchart
� checklist
� Control charts
� Scatter diagrams
� Pareto analysis
� histogram

Cause-and-effect diagrams

A chart that identi?es potential causes of particular quality problems.

?owchart

A schematic of the sequence of steps involved in an operation or process

checklist

A list of common defects and the number of observed occurrences of these defects.

Control charts

Charts used to evaluate whether a process is operating within set expectations.

Scatter diagrams

Graphs that show how two variables are related to each other.

Pareto analysis

A technique used to identify quality problems based on their degree of importance.

histogram

A chart that shows the frequency distribution of observed values of a variable.

Quality function deployment (QFD)

A tool used to translate the preferences of the customer into speci?c technical requirements.

. Quality at the source

The belief that it is best to uncover the source of quality problems and eliminate it.

Process Management

Quality should be built into the process, because, according to TQM a quality product comes from a quality process.

Managing Supplier Quality

TQM extends the concept of quality to suppliers and ensures that they engage in the same quality practices.

four categories of quality costs

prevention cost
appraisal costs
internal failure cost
external failure costs

prevention and appraisal costs

costs that are incurred to prevent poor quality

internal and external failure costs

costs that the company hopes to prevent

The seven concepts of the TQM philosophy

� customer focus
� continuous improvement
� employee empowerment
� use of quality tools
� product design
� process management
� managing supplier quality

Malcolm Baldrige National Quality Award

An award given annually to companies that demonstrate quality excellence and establish best-practice standards in industry.

Deming Prize

A Japanese award given to companies to recognize efforts in quality improvement.

ISO 9000

A set of international quality standards and a certi?cation demonstrating that companies have met all the standards speci?ed.

ISO 14000

A set of international standards and a certi?cation focusing on a company's environmental responsibility

Reliability

The probability that the product will function as expected.

How is the reliability of a product computed?

The product of the reliabilities of the individual components; for example, a product with a 90 percent reliability has a 90 percent chance of functioning as intended.

2. Reliability of parts with redundancy (in parallel):

Rs = (Reliability of 1st component) + ((Reliability of 2nd component) x
(Probability of needing 2nd component))

7 Important Principles of Total Quality Management

1. Quality can and must be managed
2. Processes, not people, are the problem
3. Don't treat symptoms, look for the cure
4. Every employee is responsible for quality
5. Quality must be measurable
6. Quality improvements must be continuous
7. Quality is a l