1. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. Total Quality Management A. A. Elimam

2. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. Definitions of Quality  Conformance to Specifications  Value  Fitness for Use  Support  Psychological Impressions

3. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. How Quality Assurance Evolved 1800’s: skilled craftsmen Industrial Revolution: factory System 100% Inspections 1900’s: Larger Organizations 1920’s Bell Lab Statistical Quality Control –Shewhart Control Charts (1924) –Dodge & Romig Acceptance Sampling (1930) Separate QC department & Manager World War II: Growing Concern for Quality Quality Awards in Japan, USA & other countries

4. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. Plan Do Check Act DemingWheel

5. ContinuousImprovementProjects CurrentReduceReduceReduce situationmaterialrepairinspection handlingtimetime time Continuous improvement Total time Material Machining Inspection Repair handling

6. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. Costs of Detecting Defects Cost of detection (dollars) Process Final testing Customer When defect is detected

7. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. QUALITY IMPROVEMENT TOOLS CHECK OR TALLY SHEET CAUSE-AND-EFFECT DIAGRAM STATISTICAL TOOLS: HISTOGRAMS, CONTROL CHARTS

8. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. Cause-and-Effect Diagrams EffectPersonnelMachinesProcessMaterials

9. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. King Tut Airlines Passenger processing at gate Late cabin cleaners Unavailable cockpit crew Late cabin crew Personnel Weather Air traffic delays Other Aircraft late to gate Mechanical failures Equipment Materials Procedures Waiting for late passengers Weight/balance sheet late Poor announcement of departures Delayed check-in procedure Delayed flight departures Late food service Late fuel Late baggage to aircraft

10. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. MINA Fiber Board Co. Checklists Headliner Defects Defect typeTallyTotal A. Tears in fabric////4 B. Discolored fabric///3 C. Broken fiber board//// //// //// //// //// //// //// /36 D. Ragged edges//// //7 Total50

11. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. MINA Fiber Board Co. Pareto Chart Number of defects 100 80 60 40 20 0 50 40 30 20 10 0 Cumulative percentage Defect type C D A B

12. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. A Pareto Chart Percent defective Causes of poor quality Machine calibrations Defective parts Wrong dimensions Poor Design Operator errors Defective materials Surface abrasions 0 10 20 30 40 50 60 70 (64) (13) ( 10) (6) (3) (2)

13. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. MINA Fiber Board Co. Cause-and-Effect Diagram Out of specification Not available Training Absenteeism Communication Humidity Schedule changes Machine maintenance Machine speed Wrong setup Broken fiber board Process People Other Materials

14. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. MINA Fiber Board Co. Bar Chart 20 15 10 5 0 Number of defects FirstSecondThird Shift

15. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. Deming’s 14 Points  Create constancy of purpose  Adopt a new philosophy  Cease dependence on mass inspection  End the practice of buying on price alone  Use statistical methods to find problems and continually improve

16. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. Deming’s 14 Points  Institute modern methods of on-the- job training  Improve supervision  Drive out fear  Break down barriers  Eliminate numerical goals and slogans

17. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. Deming’s 14 Points  Eliminate work standards that simply set quotas  Remove barriers between employees and their pride of workmanship  Institute a vigorous program of education and retraining  Structure management to continually support these points

18. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. Prominent Quality Experts (“Gurus”) J. M. Juran: focus on quality: –Planning: set quality level & design the production process to achieve it - annual quality program –Control: use SQC to ensure product quality meets standards as while in production –Improvement: Study & analyze problems & implement a remedy. 100’s of Quality Improvements projects going on in a company.

19. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. Prominent Quality Experts (“Gurus”) P.B. Crosby: Quality is free - “absolute Quality management’ –First: Quality - conformance to requirements –Second: Prevention to achieve quality (with the help of SQC) –Third: ZERO defects is achievable –Finally: quality must be measured.

20. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. Prominent Quality Experts (“Gurus”) A. V. Feigenbaum: TQC –all areas in company emphasize quality –quality at the source –quality problems: workers/supervisors stop line

21. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. Prominent Quality Experts (“Gurus”) K. Ishikawa: Quality Circles, Fishbone Diagram & graphical analysis of quality problems G. Taguchi: Use product & process design to achieve high quality at lowest cost. Quality is achieved with product uniformity around a target –Loss function (all costs of poor quality) –set production process to achieve uniformity

22. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. Quality Awards The Deming Application Prize: (1957) Annual- meet set of standards for successful application of SQC. Three major categories: individuals in Japan, organizations in Japan, overseas organizations.

23. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. Quality Awards The Malcolm Baldrige National Quality Award: (1987) Given annually to up to 2 companies in manufacturing, service and small business. Criteria include: soundness of approach to quality improvement, quality management program & its implemen- tation and customer satisfaction.

24. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. Quality Awards The president’s Award for Quality: (1988) recognize US federal Government agencies with >500 workers The IIE Award for Excellence in Productivity Improvement: (1980) NASA’s Quality and Excellence Award- for quality among suppliers

25. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. ISO 9000 Standards International Organization for Standardization (ISO) - 90 member countries Purpose of ISO: Global agreement on international standards system to certify suppliers to meet quality management standards

26. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. ISO 9000 Standards First published in 1987 in 4 subsections ISO 9001: Quality systems - Model for Quality Assurance in Design/Development, Production, Installation, and Servicing - widest scope of application ISO 9002: Quality systems - Model for Quality Assurance in Production and Installation ISO 9003: Quality systems - Model for Quality Assurance in Final Inspection and Test ISO 9004: Quality systems - Quality Management & Quality System Elements - Guidelines

27. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. ISO 9000 Accreditation Originally customers would evaluate the quality systems of their suppliers Some EC countries (e.g. UK) require an accredited registrar to assess (for a fee) a company’s quality system & its compliance with ISO 9000 Certificate is issued to company meeting ISO Company becomes ISO Registrars In the future virtually all products exported to the EC will require certification

28. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition  1996 Addison-Wesley Publishing Company, Inc. All rights reserved. Gaining The Competitive Edge In the US many of the applicants for the Baldrige Award also apply for ISO 9000 registration. Two complement each other with the same goals of commitment to total quality & customer satisfaction ISO 9000: documentation, the standardization and the common language needed to establish a quality management system The Baldrige criteria focus more on continuous improvement, measurement of processes and strategic planning