Chapter 6 - Total Quality Management These presentations support the text and graphic material in Chapter 6. 1

TQM Wheel This sequence presents the TQM Wheel in Figure 6.1. Following the discussion in the text, the presentation starts with the key inner components. The last slide adds the outer ring. The Employee Involvement section is presented in more detail on a subsequent slide. This slide advances automatically. 2

Continuous improvement Customer satisfaction TQM Wheel Employee involvement Continuous improvement Customer satisfaction This slide presents the TQM Wheel in Figure 6.1. This can be left on the screen while you discuss whatever aspects of the wheel you choose. The Employee Involvement section is presented in more detail on a subsequent slide. Figure 6.1 2

TQM Wheel Customer satisfaction Product/service design Process design Purchasing Product/service design Problem-solving tools Benchmarking Employee involvement Continuous improvement Customer satisfaction This slide presents the TQM Wheel in Figure 6.1. This can be left on the screen while you discuss whatever aspects of the wheel you choose. Figure 6.1 2

Customer-Driven Definitions of Quality Conformance to Specifications Value Fitness for Use Support Psychological Impressions These are the five dimensions of quality as listed and defined in the Chapter. We build on this slide as we advance so each definition can be discussed in depth. Note: This list adds the important element of Value to what is essentially a simplified version of Garvin’s 8 dimensions of quality. 3

The Costs of Poor Quality Prevention Costs Appraisal Costs Internal Failure Costs External Failure Costs This slide supports the discussion of the cost of poor quality. The slide builds on advance. 4

Costs of Detecting Defects 14

Process Final testing Customer Where defect is detected Costs of Detecting Defects Cost of detection and correction Process Final testing Customer Where defect is detected This graph sets the stage for the cost of defectives at various stages of the process as shown in Figure 6.2. Figure 6.2 14

Process Final testing Customer Where defect is detected Costs of Detecting Defects Process Final testing Customer Where defect is detected Cost of detection and correction Figure 6.2 15

Employee Involvement Cultural Change Teams Individual Development Awards and Incentives This slide supports the topical section on employee involvement. The slide builds on advance. 4

Deming Wheel The next five slides build the Deming Wheel (Figure 6.3) step-by-step allowing the discussion to focus on the type of activities and processes that occur at each step of the continual improvement process. This slide advances automatically. 5

Plan Deming Wheel Figure 6.3 5

Deming Wheel Plan Do Figure 6.3 9

Deming Wheel Plan Do Check Figure 6.3 9

Deming Wheel Plan Act Do Check Figure 6.3 9

Deming Wheel Plan Act Do Check Figure 6.3 9

Reliability These six slides go through the reliability example presented in the Chapter. The first slide defines the basic equation and variables. This slide advances automatically. 16

Reliability Product reliability rs = (r1)(r2) . . . (rn) where rs = reliability of the complete product n = number of subsystems rn = reliability of the subsystem or component n 16

Reliability Product reliability rs = (r1)(r2) . . . (rn) where rs = reliability of the complete product n = number of subsystems rn = reliability of the subsystem or component n This slide introduces the product, a portable radio and headset. 17

Reliability rs = (0.99)(0.90)(0.85) = 0.76 Product reliability rs = (r1)(r2) . . . (rn) where rs = reliability of the complete product n = number of subsystems rn = reliability of the subsystem or component n Given the current values, the product reliability is calculated. rs = (0.99)(0.90)(0.85) = 0.76 18

Reliability rs = (0.99)(0.90)(0.85) = 0.76 Product reliability rs = (r1)(r2) . . . (rn) where rs = reliability of the complete product n = number of subsystems rn = reliability of the subsystem or component n A revised product changes the headset and the housing (the colours change on the screen). rs = (0.99)(0.90)(0.85) = 0.76 19

Reliability rs = (0.99)(0.95)(0.90) = 0.85 Product reliability rs = (r1)(r2) . . . (rn) where rs = reliability of the complete product n = number of subsystems rn = reliability of the subsystem or component n The new items have different, improved, reliabilities and these are substituted in the equation. This slide advances automatically. rs = (0.99)(0.95)(0.90) = 0.85 20

Reliability rs = (0.99)(0.95)(0.90) = 0.85 Product reliability rs = (r1)(r2) . . . (rn) where rs = reliability of the complete product n = number of subsystems rn = reliability of the subsystem or component n The new reliability is calculated showing an improvement from 0.76 to 0.85. rs = (0.99)(0.95)(0.90) = 0.85 21

Quality Function Deployment This set of slides covers the QFD material from the text. The authors present a short discussion in the current edition, but some instructors may wish to cover this material in somewhat more detail. For these instructors we have included a commonly used “house” format. The model is presented in just coloured blocks. As each section is discussed, an arrow is drawn suggesting how the information is used. This slide advances automatically. 1

Quality Function Deployment The House of Quality 1

Quality Function Deployment This slide advances automatically. 1

Quality Function Deployment Voice of the Customer The first step is to define the needs and expectations of the customer. 1

Quality Function Deployment Competitive Analysis Voice of the Customer The next step is to analyze the competition along the dimensions the customers have defined as important. In one of these first two steps the customer needs should be prioritized. 1

Quality Function Deployment Voice of the Engineer Competitive Analysis Voice of the Customer The third step is to define the internal technical issues related to satisfying the customer expectations. 1

Quality Function Deployment Trade-offs Voice of the Engineer Competitive Analysis Voice of the Customer Technical issues often involve trade-offs. This slide advances automatically. 1

Quality Function Deployment Trade-offs Voice of the Engineer Competitive Analysis Voice of the Customer 1

Quality Function Deployment Trade-offs Voice of the Engineer Competitive Analysis Voice of the Customer Correlations The input from the customers, competitive analysis, and technical considerations are used to create a correlation matrix. This slide advances automatically. 1

Quality Function Deployment Trade-offs Voice of the Engineer Competitive Analysis Voice of the Customer Correlations 1

Quality Function Deployment Trade-offs Voice of the Engineer Competitive Analysis Voice of the Customer Correlations The final step is to translate the prioritized action items into concrete technical specifications or requirements. The nature of these requirements or specifications will vary depending on the area within the organization that the QFD process is being used. This slide advances automatically. Technical Comparison 1

Quality Function Deployment Trade-offs Voice of the Engineer Competitive Analysis Voice of the Customer Correlations Technical Comparison 1

Benchmarking Planning Analysis Integration Action This slide supports the discussion of benchmarking from the text. The slide builds on advance. 4

Pareto Charts This series of slides presents Example 6.1, the use of Pareto charts. The first step is to plot the data on a histogram. This slide advances automatically. 1

Pareto Charts This series of slides presents Example 6.1, the use of Pareto charts. The first step is to plot the data on a histogram. This slide advances automatically. Figure 6.4 1

Pareto Charts This series of slides presents Example 6.1, the use of Pareto charts. This slide advances automatically. Figure 6.5 1

Pareto Charts This slide presents Example 6.1, the use of Pareto charts. Figure 6.5 1

Cause-and-Effect Diagrams This section of the Chapter deals with some of the seven basic tools of quality, CE diagrams, Pareto charts, checksheets, and bar charts (histograms). This slide advances automatically. 1

Cause-and-Effect Diagrams Personnel Machines Process Materials This section of the Chapter deals with some of the seven basic tools of quality, CE diagrams, Pareto charts, checksheets, and bar charts (histograms). This slide advances automatically. 1

Checker Board Airlines The next series of slides presents Example 6.6. The series builds in steps to the conclusion of the Example showing the development of key components along the way. This slide advances automatically.

Checker Board Airlines Delayed flight departures Figure 6.6

Checker Board Airlines Equipment Aircraft late to gate Mechanical failures Delayed flight departures Figure 6.6

Checker Board Airlines Equipment Personnel Aircraft late to gate Passenger processing at gate Mechanical failures Late cabin cleaners Unavailable cockpit crew Late cabin crew Delayed flight departures Figure 6.6

Checker Board Airlines Equipment Personnel Aircraft late to gate Passenger processing at gate Mechanical failures Late cabin cleaners Unavailable cockpit crew Late cabin crew Delayed flight departures Late baggage to aircraft Late fuel Late food service Contractor not provided updated schedule Materials Figure 6.6

Checker Board Airlines Equipment Personnel Aircraft late to gate Passenger processing at gate Mechanical failures Late cabin cleaners Unavailable cockpit crew Late cabin crew Delayed flight departures Late baggage to aircraft Poor announcement of departures Late fuel Weight/balance sheet late Late food service Delayed check-in procedure Contractor not provided updated schedule Waiting for late passengers Materials Procedures Figure 6.6

Checker Board Airlines Equipment Personnel Aircraft late to gate Passenger processing at gate Other Mechanical failures Late cabin cleaners Unavailable cockpit crew Weather Late cabin crew Air traffic delays Delayed flight departures Late baggage to aircraft Poor announcement of departures Late fuel Weight/balance sheet late Late food service Delayed check-in procedure Contractor not provided updated schedule Waiting for late passengers Materials Procedures Figure 6.6 Source: Adapted from D. Daryl Wyckoff, “New Tools for Achieving Service Quality.” The Cornell Hotel and Restaurant Administration Quarterly, November 1984, pg. 89. © 1984 Cornell H.R.A. Quarterly. Used by permission. All rights reserved.

Wellington Fiber Board Co. Tools for Improving Quality Step 1—Checklist Step 2—Pareto chart Step 3—Cause-and-effect diagram Step 4—Bar chart The next series of slides presents Example 6.3. The series builds in steps to the conclusion of the Example showing the development of key graphics along the way.. 8

Wellington Fiber Board Co. Checklists Headliner Defects Defect type Tally Total A. Tears in fabric B. Discolored fabric C. Broken fiber board D. Ragged edges Total It starts with the checklist. A series of slides show the first few observations being recorded and students should watch this carefully. The sequence ends with the balance of the observations added in a batch. This sequence runs automatically. Figure 6.7 9

Wellington Fiber Board Co. Checklists Headliner Defects Defect type Tally Total A. Tears in fabric B. Discolored fabric C. Broken fiber board / D. Ragged edges Total This slide advances automatically. Figure 6.7 9

Wellington Fiber Board Co. Checklists Headliner Defects Defect type Tally Total A. Tears in fabric B. Discolored fabric C. Broken fiber board // D. Ragged edges Total This slide advances automatically. Figure 6.7 9

Wellington Fiber Board Co. Checklists Headliner Defects Defect type Tally Total A. Tears in fabric / B. Discolored fabric C. Broken fiber board // D. Ragged edges Total This slide advances automatically. Figure 6.7 9

Wellington Fiber Board Co. Checklists Headliner Defects Defect type Tally Total A. Tears in fabric / B. Discolored fabric C. Broken fiber board // D. Ragged edges / Total This slide advances automatically. Figure 6.7 9

Wellington Fiber Board Co. Checklists Headliner Defects Defect type Tally Total A. Tears in fabric //// 4 B. Discolored fabric /// 3 C. Broken fiber board //// //// //// //// //// //// //// / 36 D. Ragged edges //// // 7 Total 50 This is the last slide in the sequence with the balance of the observations added in a batch. Figure 6.7 9

Wellington Fiber Board Co. Pareto Chart Number of defects 100 80 60 40 20 50 30 10 Cumulative percentage Defect type The next sequence translates the data from the checklist to a Pareto chart. Figure 6.7 10

Wellington Fiber Board Co. Pareto Chart Number of defects 100 80 60 40 20 50 30 10 Cumulative percentage Defect type C D A B This slide adds the individual frequency bars for the four types of defects. Figure 6.7 12

Wellington Fiber Board Co. Pareto Chart Number of defects 100 80 60 40 20 50 30 10 Cumulative percentage Defect type C D A B This slide adds the cumulative line to the chart showing the alternate charting technique. Figure 6.7 12

Wellington Fiber Board Co. Cause-and-Effect Diagram Out of specification Not available Training Absenteeism Communication Humidity Schedule changes Machine maintenance Machine speed Wrong setup Process People Other Materials Broken fiber board This is the CE Diagram for the headliner problem. Figure 6.7 13

Wellington Fiber Board Co. 20 15 10 5 Bar Chart Number of broken fiber boards And finally the bar chart (essentially a histogram) of the defects analyzed by shift. This clearly illustrates the value of looking at data arranged in alternate schemes (as long as there is some theoretical justification for the different view). First Second Third Shift Figure 6.7 14

ISO 9000 ISO 14000 The last section in the presentation refers to the major quality programs in today’s environment, Baldrige, ISO 9000, and ISO 14000. It is probably worth reinforcing the point that these three programs are very different in their focus and intent.

Criteria for Performance Excellence Category 1—Leadership 120 points Category 2—Strategic Planning 85 points Category 3—Customer and Market Focus 85 points Category 4—Information and Analysis 90 points Category 5—Human Resource Focus 85 points Category 6—Process Management 85 points Category 7—Business Results 450 points This slide presents the award structure for 2001. It is important to note that the Baldrige Criteria are evaluated and improved annually. Through the life the textbook the details of the scoring scale and the criteria in the next slide are likely to change somewhat.

Leadership—Leadership system, values, Leadership—Leadership system, values, expectations, and public responsibilities Strategic Planning—The effectiveness of strategic and business planning and deployment of plans, focusing on performance requirements Customer and Market Focus—How the company determines customer and market requirements and achieves customers satisfaction Information and Analysis—The effectiveness of information systems to support customer driven performance excellence and marketplace success Human Resource Focus—The success of efforts to realize the full potential of the work force to create a high-performance organization Process Management—The effectiveness of systems and processes for assuring the quality of products and services Business Results—Performance results and competitive benchmarking in customer satisfaction, financials, human resources, suppliers, and operations This slide defines the Categories in the Baldrige Award as described in the text.

Vanishing Cream Analysis Solved Problem 2 Frequency of defects 100 90 80 70 60 50 40 30 20 10 36 32 28 24 16 12 8 4 Cumulative percentage of defects Label Fill Mix Seal 48% 78% 100% 90% This chart supports Solved Problem 2 at the end of Chapter 6. Figure 6.8 12