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

2. TQM Wheel
Process design
Purchasing
Product/service design
Problem-solving tools
Benchmarking
Customer satisfaction
Employee involvement
Continuous improvement
TQM emphasizes three main principles: customer satisfaction, employee involvement, and continuous improvement.
This slide presents the TQM Wheel in Figure This can be left on the screen while you discuss whatever aspects of the wheel you choose. 2

3. Total Quality Management
Total quality management is defined as managing the entire organization so that it excels on all dimensions of products and services that are important to the customer.
Factors that can impede TQM:
Managers are frequently evaluated, rewarded, and promoted on basis of short-term financial performance
Decisions that are made to generate short-term gains can overpower TQM commitments

4. 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.
Relate each dimension to products and services 3

5. 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

6. 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 15

7. Individual Development Awards and Incentives
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

8. Deming Wheel Plan Act Do Check 1. Plan a change aimed at improvement.
4. Institutionalize the change or abandon or do it again.
Plan
Act Do
2. Execute the change.
3. Study the results; did it work?
Check 9

9. 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

10. 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

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

12. Benchmarking Identify those processes needing improvement.
2. Identify a firm that is the world leader in performing the process.
3. Contact the managers of that company and make a personal visit to interview managers and workers.
4. Analyze data.

13. Tools for Improving Quality
Step 1—Checklist
Step 2—Pareto chart
Step 3—Cause-and-effect diagram
Step 4—Bar chart and Histograms
Bar Chart and Histogram - Can be used to identify the frequency of quality defect occurrences and display quality performance.
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..
Cause and Effect Diagram - Can be used to systematically track backwards to find a possible cause of a quality problem (or effect). 8

14. Pareto Charts
Can be used to find when 80% of the problems may be attributed to 20% of the
causes.
This slide presents Example 6.1, the use of Pareto charts. 1

15. 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

16. 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.

17. Wellington Fiber Board Co.
Can be used to keep track of defects or used to make sure people collect data in a correct manner.
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. 9

18. ISO 9000
Series of standards agreed upon by the International Organization for Standardization (ISO)
Adopted in 1987
More than 100 countries
A prerequisite for global competition?
ISO 9000 directs you to "document what you do and then do as you documented."
The last section in the presentation refers to the major quality programs in today’s environment, Baldrige, ISO 9000, and ISO It is probably worth reinforcing the point that these three programs are very different in their focus and intent.

19. ISO 9000 vs. Baldrige Award The Baldrige Award ISO 9000 Certification
U.S. national quality award
highlights performance of firms that have attained excellence in quality management
ISO 9000 Certification
series of standards
provides market access
ISO 14000
standards for environmental management

20. Criteria for Performance Excellence
Leadership—Leadership system, values, expectations, and public responsibilities (second highest percentage of points)
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 (Highest percentage of points)
This slide defines the Categories in the Baldrige Award as described in the text.