1. Total Quality Management (TQM) and Statistical Process Control (SPC)
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2. TQM Quality: a powerful competitive weapon
Importance evidenced by variety of industrial awards (e.g., Baldrige Award, Deming Prize)
Complex and multifaceted concept
TQM is a continuous, organization-wide effort to total customer satisfaction and continuous process improvement. The underlying principle of TQM programs is to produce products of high quality in the first place, rather than depend on detecting defective products later through inspection.
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3. Alternative Quality Definitions?
Product-based definition - quality is a precise and measurable variable where differences in quality reflect differences in the quantity of some ingredient or attribute possessed by a product. Example: content of multivitamins
User-based definition - in terms of satisfying the consumers’ wants, needs and preferences. Example: brand name manufacturer versus generic drugs
Manufacturing-based definition - conformance to requirements, meeting specifications. Example: interior diameter of pipe
Value-based definition - in terms of costs and prices. Quality is value for the dollar spent
Elimination of variability
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4. Garvin’s “Dimensions of Quality”
Performance – product/service primary characteristics
Reliability – consistency of performance
Durability – length of useful life
Conformance to specifications
Aesthetics – appearance, feel, smell, taste
Special features - extras
Safety
After sale service
Perceptions – indirect evaluation of quality
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5. Costs of Quality Internal failure costs External failure costs
Appraisal costs
Prevention costs
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6. TQM “Gurus” Shewhart: “grandfather of SPC,” Shewhart cycle
Deming: 14 points; “father of quality control,” known for: appreciation of a system, knowledge of variation, theory of knowledge, knowledge of psychology
Juran: Pareto principle; trilogy or cross-functional management approach comprised of quality planning, quality control, and quality improvement
Crosby: Quality is Free; “do it right the first time”
Feigenbaum: total quality control (systems view)
Ishikawa: process improvement tools such as fishbone diagram
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7. 6 TQM Programs Elements Top management Leadership and Commitment
Mission statement
Product design
Process design
Employees
After-the-sale service quality
Plan-Do-Study-Act (PDSA, Shewhart cycle or Deming wheel)
Long-term commitment to continuous improvement (kaizen)
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8. 6 TQM Programs Elements 2. Customer Focus
a. Internal: employee empowerment, participation, and teamwork
(1) Participative Management: employee empowerment, participation, and teamwork
(2) Education, training, standardized thinking
(3) Technology and tools
(4) Quality Circles
A decentralization of management responsibility; objectives of increased productivity and quality; direct employee involvement; generally, a group of 3 to 10 employees doing related work and meets at regular intervals; provide for substantial individual motivation; improve managerial decision-making
b. External customers
(1) Quality Function Deployment (QFD)
(2) Conformance to specifications
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9. 6 TQM Programs Elements 3. Product/Service Design
a. Design quality as a corporate objective
b. Manufacturability and conformance to specifications
Idea: design and build in quality rather than inspect it in; nonconformance is costly; simplicity
Cpk: ratio of allowable process variability to actual variability (versus Cpratio)
Practices: product standardization, fewer parts {where for n independent components, system reliability Rs = (R1)(R2)(Rn) }, robotics, vertical insertion, redundancies [where for a back-up component, Rs = R1+{R2*(1-R1)}], improved supplier relations, preventative maintenance, ISO 9000, etc.
c. Quality Function Deployment (QFD)
d. After sale service quality: distribution, installation, after-the-sale support
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10. 6 TQM Programs Elements 4. Process Management
Quality at the Source; empowered employees
Authority + Responsibility = Accountability
Authority is the power granted to individuals so that they can make final decisions to complete their assignments
Responsibility is the obligation incurred by individuals in their roles in the formal organization in order to effectively perform assignments.
Accountability is the state of being totally answerable for the satisfactory completion of a specific assignment.
b. Organizing for quality control
New organizational structures and teams(matrix)
Elimination of bureaucracy (fewer mgt. levels)
Managing for quality control
Increased span of control
Engaged employees: quality control training, quality circles, participative management
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11. 6 TQM Programs Elements Managing Supplier and Supply Chain Quality
Use of Quality Tools
a. Variation caused by chance causes (random variation) and assignable causes
b. Process Improvement Tools: attempt to reduce the causes of variation before it happens
(1) Benchmarking
(2) Brainstorming
(3) Process Mapping (Flow charting)
(4) Pareto Analysis and Histograms
(5) Cause-and-Effect Diagrams (Fishbone Diagram)
(6) Check Sheets (checklists)
(7) Scatter Diagrams
c. Statistical Process Control (SPC) Techniques: attempt to identify assignable causes of variation so that it eventually may be eliminated
(1) Control charts
(2) Acceptance plans
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12. Process Mapping (Flowcharting)
Different shapes represent different types of process flow tasks, e.g., rectangle represents a task while triangle represents assessment
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13. Histograms Along the x-axis you find the categories of concern
If you read over to the y-axis you find the frequency of the category occurring
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14. Pareto Charts A variant of an histogram
Categories are arranged from greatest frequency of occurrence to least frequent
The cumulative frequency is 1 or 100%
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15. Fishbone (Cause and Effect) Diagrams
Also called Ishikawa Diagram or 4M Diagram
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16. Fishbone Example
Why are printing errors occurring during the printing of airline tickets?
Maybe the material stock is too thick? Too old?
Maybe the machine is failing with age? Maybe it holds paper too tightly of loosely?
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17. Checksheets
You’re keeping a running tally of the issue (date, time, location) so that the frequencies can be ultimately determined
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18. Scatter Diagrams Diagram makes relationships (correlation) clearer
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19. Control Charts
A graphical tool for describing the state of control of a process. Sample values are used to monitor process performance.
It’s a confidence interval designed to achieve desired level of producer and consumer risk (type I and type II error).
It is used to monitor the output of high volume production processes (repetitive)
Construction varies with data type Attribute (0-1) or Variable (continuous)
Means chart, Range chart, P-chart, nP-chart, c-chart, u-chart, etc.
Basic control charts consists of UCL, LCL and centerline
X-axis is time while the Y-axis is generally the mean of the quality characteristic being measured.
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20. Which Type of Process Improvement Tool?
Sometimes application suggests one type
Past experience
Other times, more than one type can be used (e.g., check sheet vs. Pareto diagram below)
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