Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Chapter 20 Managing improvement – the TQM approach Source: Corbis/Munshi Ahmed

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 The quality gurus Philip Crosby Quality is free – the optimum is zero defects W. Edwards Deming Deming’s 14 points How to use statistics Armand Feigenbaum Total quality control Joseph Juran Quality as fitness for use, rather than conformance to specification Genichi Taguchi Loss function Minimize variation Kaoru Ishikawa Quality circles and cause-and-effect diagrams

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Total quality management can be viewed as a natural extension of earlier approaches to quality management Quality is strategic Teamwork Staff empowerment Involves customers and suppliers Quality systems Quality costing Problem solving Quality planning Statistics Process analysis Quality standards Error detection Rectification Prevents ‘out of specification’ products and services reaching market Solves the root cause of quality problems Broadens the organizational responsibility for quality Makes quality central and strategic in the organization

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Total Quality Management Includes all parts of the organization Includes all staff of the organization Includes consideration of all costs Includes every opportunity to get things right Includes all the systems that affect quality Never stops Source: Corbis/Richard T Nowitz

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 The cost of rectifying errors increases more rapidly the longer they remain uncorrected in the development and launch process Cost of rectifying error Stage in development and launch process Pilot production Market use PrototypeDesign Concept

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Costs of quality Time Appraisal Internal failure Appraisal Prevention Total cost of quality Increasing the effort spent on preventing errors occurring in the first place brings a more than equivalent reduction in other cost categories

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 The pattern of some TQM programmes which run out of enthusiasm Effectiveness of the TQM initiative IntroductionGrowthLevelling offDisillusionmentRepackaging Learning and understanding Increasing enthusiasm Starting to hit the more difficult problems Waning enthusiasm Attempts to revitalize the programme

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 ReactiveProactive InspectionPrevention AQLZD Blame placingProblem solving Quality cost moreQuality cost less Quality is technicalQuality is managerial Schedule firstQuality first Defects hiddenDefects highlighted Changing Quality Assumptions