© 2005 Wiley1 Total Quality Management Chapter 5.

Slides:



Advertisements
Similar presentations
Implementing Quality Concepts
Advertisements

12–1. 12–2 Chapter Twelve Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.
Slide 4.1 Chapter 4 Managing for Quality and High Performance.
IT Services Group 4 Jalal Hafidi Mathew Joseph Tolulope Oke
Managing Quality Chapter 5.
Chapter 5 - Total Quality Management
Total Quality Management
© 2005 Wiley1 Chapter 5 - Total Quality Management Operations Management by R. Dan Reid & Nada R. Sanders 2 nd Edition © Wiley 2005 PowerPoint Presentation.
Total Quality Management
Chapter 5 Total Quality Management. What is TQM? Total quality management (TQM) is a philosophy that seeks to improve quality by eliminating causes of.
Chapter 9 Management of Quality McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 6 - Total Quality Management
Chapter 8: Quality Management Project Quality Management
Chapter 5 – Total Quality Management
MOS 330: Operations Management Professor Burjaw Fall/Winter
Managing Quality 12 July Introduction What: quality in operations management Where: Quality affects all goods and services Why: Customers demand.
Chapter 14 Quality Management Sell good merchandise at a reasonable profit, treat your customers like human beings, and they will always come back for.
Total Quality Management
Ensuring Quality and Productivity If you forget the customer, nothing much else matters. —Anne Mulcahy, CEO, Xerox Corporation Chapter 2 Copyright © 2010.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
21 June, EVOLUTION OF QUALITY MANAGEMENT/SYSTEMS MIL-Q-9858 (9 April 1959) 1960’s and 1970’s “IF JAPAN CAN, WHY CAN’T WE ?” 1987 ADVANCED PRACTICES.
1 L U N D S U N I V E R S I T E T Projektledning och Projektmetodik, VBEF01 Kristian Widén Tekn. Doktor Avd. För Byggproduktion Inst. För Byggvetenskaper.
Chapter 9 Introduction to Quality. Management 3620Chapter 9 Introduction to Quality9-2 Different Ways to Define Quality User-based quality –defined by.
© 2005 Wiley1 Total Quality Management. © 2005 Wiley2 What is TQM? Meeting quality expectations as defined by the customer Integrated organizational effort.
© 2005 Wiley1 Total Quality Management Chapter 5.
1 Operations Management Lesson 6 Material Requirements Planning and Enterprise Resource Planning.
McGraw-Hill/Irwin Copyright © 2011 The McGraw-Hill Companies, All Rights Reserved Six-Sigma Quality Chapter 9.
SIX-SIGMA QUALITY Chapter Understand total quality management. 2. Describe how quality is measured and be aware of the different dimensions of quality.
Quality Prepared By: Ali Siddiqi.
Introduction to QUALITY MANAGEMENT
Total Quality Management
Lecture 05 TQM. Quality Function Deployment The last Baldrige category receives the highest points and deals with business results. Numerous measures.
Your LogoYour own footer. Production & Operations Management Chapter : The Role of Operations Management Business Process Reengineering Inventory Management.
Quality Management Processes Plan Quality Management Perform Quality Assurance Control Quality.
Total Quality Management
Course Title: Production and Operations Management Course Code: MGT 362 Course Book: Operations Management 10th Edition. By Jay Heizer & Barry Render.
TQM. What does TQM mean? Total Quality Management means that the organization's culture is defined by and supports the constant attainment of customer.
TQM: Customer Focused Quality
Operations Management For Competitive Advantage 1 Quality Management Operations Management For Competitive Advantage Chapter 7.
Quality Management.
Chapter 5 – Managing Quality Operations Management by R. Dan Reid & Nada R. Sanders 4th Edition © Wiley 2010.
Eng. Mgt 385 Statistical Process Control Stephen A. Raper Quality Management.
9-1Management of Quality William J. Stevenson Operations Management 8 th edition.
McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. 9 Management of Quality.
© 2005 Wiley1 Total Quality Management Chapter 5.
Copyright 2006 John Wiley & Sons, Inc. Beni Asllani University of Tennessee at Chattanooga Operations Management - 5 th Edition Chapter 3 Roberta Russell.
Chapter 11 TQM & Quality Tools. Management 3620Chapter 11 TQM and Quality Tools11-2 Total Quality Management A philosophy that involves everyone in an.
OM7a -1TQM and Quality Tools Chapter 11 TQM & Quality Tools.
Managing Quality CHAPTER SIX McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.
Chapter 16 Implementing Quality Concepts Cost Accounting Foundations and Evolutions Kinney, Prather, Raiborn.
Copyright 2006 John Wiley & Sons, Inc. Beni Asllani University of Tennessee at Chattanooga Operations Management - 5 th Edition Chapter 3 Roberta Russell.
Total Quality Management S.Shahrukh Haider. Introduction Competition is getting harder and becoming global. Companies now have to be more responsive,
McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. 9 Quality Management.
© Wiley Total Quality Management by Adnan khan.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 4 1 Management’s Commitments to Quality and Productivity.
© 2005 Wiley1 Total Quality Management Chapter 5.
Reid & Sanders, Operations Management © Wiley 2002 Total Quality Management 5 C H A P T E R.
Chapter 5 - Total Quality Management
1 DECISION MAKING IN OM Chapter CORPORATE STRATEGY BUSINESS STRATEGY –COMPETITIVE PRIOROTIES OPERATIONS STRATEGY OPERATING DECISIONS.
 The concept of Quality is very broad and can be defined in various way:  From the customer point of view: (Specification Quality) › Quality is the.
CHAPTER 3 Management Systems. Learning Objectives Describe the basic business activities and tools necessary to implement successful industrial hygiene.
Implementing Quality Concepts
Operations Management
Total Quality Management
Total Quality Management (TQM)
Chapter 8 Quality Management
Managing Quality and Performance
Introduction to Quality
Introduction to Quality
Presentation transcript:

© 2005 Wiley1 Total Quality Management Chapter 5

Operations and Operations Strategy Products, Processes, & Quality Operations Planning & Control Facilities and Work Systems Mathematical Tools for Operations Project Management Linear Programming Product Design Process Design Just-in-Time Quality Management Statistical Process Control Course Overview

Total Quality Management (TQM) Chapter 5 What is quality? Measurement and costs of quality Total Quality Management (TQM) Quality Awards And Certifications TQM Philosophy Quality in Product Design (Quality Function Deployment) Why TQM Programs Fail Customer- Defined Quality How companies meet customer requirements (product specification) Quality Tools

© 2005 Wiley4 Why Quality is Important Increases value of products to customers Reduces expensive mistakes Increases profits  Shareholder value

© 2005 Wiley5 How Customers Define Quality Customer-defined quality: Meeting quality expectations as defined by the customer High performance design vs. product or service consistency Psychological (perceived quality): the quality that the customer thinks he/she got Value: the good or service is superior to others with similar prices (getting more for your money)

© 2005 Wiley6 How Customers Define Quality (2) How customers define quality (2) Fitness for use: how well the product performs its intended function – differs by target market Support services – technical support, repairs, etc. See differences between manufacturing and service organizations, pp , Table 5.1 Quality includes all characteristics that are important to customers – not just the core product

© 2005 Wiley7 How Companies Meet Customer Product or Service Specification Companies use product or service specifications to meet customer requirements Characteristics of the product or service which will be measured to determine quality Target values (ideal values) for each characteristic Should be based on customer expectations Should meet any legal requirements Conformance quality: If a product or service consistently meets specifications, it has conformance quality.

© 2005 Wiley8 Cost of Quality – 4 Categories See Figure 5.1, page 141 Early detection/prevention is less costly Costs may be less by a factor of 10

© 2005 Wiley9 Quality–Cost Relationship Cost of doing things wrong: internal and external failure. 20 to 35% of revenues if company has made little effort to improve quality Cost of doing things right: prevention and appraisal. 3 to 4% of revenues Profitability: In the long run, quality is free (Philip Crosby)

© 2005 Wiley10 Total Quality Management (TQM) Customer-defined quality: Meeting quality expectations as defined by the customer Integrated organizational effort designed to improve quality on all quality characteristics that are important to customers (core product and anything else that affects customers) Requires a coordinated effort All levels of the organization All functions (departments) in the organization Work with suppliers and listen to customers Evolution of TQM – see Figure 5-3, page 143

© 2005 Wiley11 TQM Philosophy Focus on Customer Identify and meet customer needs Stay tuned to changing needs, e.g. fashion styles Continuous Improvement: Continuous learning and problem solving Quality at the Source: Find the problem when it occurs and fix it. Employee Empowerment and problem solving (pages ): Empower all employees. Serve external and internal customers

© 2005 Wiley12 TQM Philosophy (2) Quality improvement teams (QIT's or quality circles) Teams formed around processes – 8 to 10 people Meet regularly to analyze and solve problems Self-managed work teams: a work group is responsible for managing its responsibilities. Managers are coaches, not bosses. (less common than QIT's) Benchmarking: Studying practices at “best in class” companies Managing Supplier Quality: Certify suppliers and eliminate receiving inspection

© 2005 Wiley13 Plan-Do-Study-Act Cycle (PDSA) PDSA is a problem-solving process used in continuous improvement Plan: Document the current process. What is being done? Collect procedures and flowchart the process Collect performance data and identify problems. Evaluate the current process. What should be changed? Set performance objectives. Develop an improvement plan.

© 2005 Wiley14 Plan-Do-Study-Act Cycle (2) Do: Implement the improvement plan on trial basis Study: Collect data on the new process. Compare actual performance with objectives Act Communicate the results from the trial If successful, implement new process throughout the organization. If the trial was not successful or did not fully achieve objectives, go back to Plan step.

© 2005 Wiley15 Plan-Do-Study-Act Cycle (3)

© 2005 Wiley16 Seven Problem Solving Tools (Seven Quality Tools) Cause-and-Effect Diagrams: Used to identify the cause of a quality problem Followup: Collect data to verify the cause and develop a plan to eliminate the cause. Flowcharts: Used to document the detailed steps in a process Checksheet: A simple way to collect data for analysis. Control charts (explained in Chapter 6)

© 2005 Wiley17 Seven Problem Solving Tools (2) Scatter diagram: shows how 2 variable are related to each other If the relationship between the variables is approximately linear, the data can be used in a regression analysis to establish the equation for the relationship Frequency chart for different types of defects Prioritize problems by number of defects or $ cost of defects Solve high-priority problems first If number of defects is used, the rule usually applies: a small number of causes will account for most defects

© 2005 Wiley18 Seven Problem Solving Tools (3) Histogram: A chart that shows the frequency distribution of observed values of a variable Example: service time at a bank drive-up window Displays whether the distribution is symmetric or skewed See Figure 5-7, page 151

© 2005 Wiley19 Quality in Product Design Quality function deployment (QFD) Used by product design teams Used to translate customer preferences into specific technical requirements The technical requirements are used to develop the product specification Operations is responsible for making the product to specifications Products that meet specifications have conformance quality Objective is to satisfy customers Principal tool is House of Quality (pages ). See Figures 5-9 and 5-10.

© 2005 Wiley20 Why TQM Efforts Fail Lack of top management support and commitment Lack of a genuine quality culture Continuous improvement Teamwork Training Employee empowerment Recognition and rewards (team or individual) Under-reliance or over-reliance on statistical process control (SPC) SPC is an essential tool for identifying problems and monitoring quality It is important to solve the problems (PDSA, 7 quality tools)

© 2005 Wiley21 Quality Award and Certifications Malcolm Baldrige National Quality Award ISO 9000 Certification ISO Certification (environment)

© 2005 Wiley22 Baldrige Award Competitive quality award presented by U. S. government 5 award categories: Manufacturing, services, small business, health care, education All written applications are reviewed by trained examiners Site visits to leading candidates Maximum of 2 awards per category

Baldrige Award Criteria Framework A Systems Perspective Organizational Profile Measurement, analysis, & knowledge management (90 pts) Leadership (120 pts) Customer & Market Focus (85 pts) Strategic Planning (85 pts) Human Resource Development & Mgmt. (85 pts) Process Mgmt. (85 pts) Business Results (450 pts) Total = 1,000 pts

© 2005 Wiley24 Baldrige Award - Business Results Customer-focused results Product and service performance Financial and market results Human resource results

© 2005 Wiley25 ISO 9000 Standards International quality certification program guided by the International Standards Organization (ISO) Any firm that passes an ISO standards audit will be certified. U. S. participates in the development of these standards: American National Standards Institute (ANSI) American Society for Quality (ASQ) Professional organizations

© 2005 Wiley26 ISO 9000 ISO 9000 standards audits must be performed by a registrar, a firm that is certified to do ISO 9000 audits Some companies require their suppliers to be certified Be sure that your registrar is acceptable to your customers Firms must be re-certified periodically.

© 2005 Wiley27 ISO A certification program in environmental management Standard-setting and certification procedures are similar to ISO 9000