Download - Introduction to qm (1)
OM-460: Total Quality Management
Introduction to TQMResource Person
Haris Aslam
History of Quality Management
• Skilled craftsmanship during Middle Ages
• Industrial Revolution: rise of inspection and
separate quality departments
• Statistical methods at Bell System
• Quality control during World War II
• Quality management in Japan
History of Quality Assurance
• Quality awareness in U.S. manufacturing industry during 1980s: “Total Quality Management”
• Malcolm Baldrige National Quality Award (1987) • Development of Quality Standards in Europe• Quality in service industries, government, health
care, and education• Current and future challenge: keep progress in
quality management alive
Definitions of Quality
• Product-based definition: quantities of product
attributes
• User-based definition: fitness for intended use
• Value-based definition: quality vs. price
• Manufacturing-based definition: conformance to
specifications
Total Quality Management
• People-focused management system
• Focus on increasing customer satisfaction and reducing
costs
• A systems approach that integrates organizational
functions and the entire supply chain
• Stresses learning and adaptation to change
• Based on the scientific method
Principles of Total Quality
• Customer and stakeholder focus
• Participation and teamwork
• Process focus and continuous improvement
Continuous Improvement
• Enhancing value through new products and
services
• Reducing errors, defects, waste, and costs
• Increasing productivity and effectiveness
• Improving responsiveness and cycle time
performance
Deming’s View of a Production System
Suppliers ofmaterials and equipment
Receipt and test of materials
Design and Redesign
Consumer research
ABCD
Production, assembly inspection
Tests of processes, machines, methods
Distribution
Consumers
INPUTS PROCESSES OUTPUTS
Learning
• The foundation for improvement … Understanding
why changes are successful through feedback
between practices and results, which leads to new
goals and approaches
• Learning cycle:
– Planning
– Execution of plans
– Assessment of progress
– Revision of plans based on assessment findings
Quality and Profitability
Improved quality of design
Higher perceived value
Increased market share
Higher prices
Increased revenues
Improved quality of conformance
Lower manufacturing and
service costs
Higher profitability
Three Levels of Quality
• Organizational level: meeting external customer
requirements
• Process level: linking external and internal
customer requirements
• Performer/job level: meeting internal customer
requirements
Quality and Personal Values
• Personal initiative has a positive impact on business success
• Quality begins with personal attitudes
• Quality-focused individuals often exceed customer expectations
• Attitudes can be changed through awareness and effort (e.g., personal quality checklists)
Quality Guru’s
• Dr. Shewhart
• W. Edwards Deming
• Joseph M. Juran
• Philip B. Crosby
• Kaoru Ishikawa
• Genichi Taguchi
Dr. Shewhart
• Dr. Shewhart was the first person to encourage the use of easy-to-use statistics to remove variation – ‘Dr. Walter Shewhart suggested two types of variation:
– Common (Chance) Causes
• Controlled variation that is present in a process due to the very nature of the process.
– Special (Assignable) Causes
• Uncontrolled variation caused by something that is not normally part of the process.
Dr. Shewhart
• Inventor of Control Charts
• Regular plotting of data on an SPC chart will tell if the process is
out-of-control (subject to special causes)
• Dr. Shewhart originated the PLAN, DO, STUDY,
ACT cycle for analysis of problems
Juran’s Quality Trilogy
• Managing for Quality – Quality Planning: The process of understanding what
the customer needs and designing all aspects of a system to meet those needs reliably.
– Quality Control: Used to constantly monitor performance for compliance with the original design standards.
• If performance falls short of the standard, plans are put into action to deal quickly with the problem.
– Quality Improvement: Occurs when new, previously un-obtained, levels of performance ~ Breakthrough Performance ~ are achieved!
Phillip B. Crosby
• Quality is free . . . :
• “Quality is free. It’s not a gift, but it is free. What costs money are the unquality things -- all the actions that involve not doing jobs right the first time.”
Philip B. Crosby
Absolutes of Quality Management:• Quality means conformance to requirements
• Problems are functional in nature
• There is no optimum level of defects
• Cost of quality is the only useful measurement
• Zero defects is the only performance standard
Kaoru Ishikawa
– Two biggest contributions: Quality circles & Cause
& Effect Diagrams
– Focused on four areas to influence quality:
• Market-in Quality
• Worker Involvement
• Quality Begins and Ends with Education
• Selfless Personal Commitment
Dr. Ishikawa’s Cause and Effect Diagram
Genichi Taguchi
• Pioneered a new perspective on quality based on the economic value of being on target and reducing variation and dispelling the traditional view of conformance to specifications:
No Loss LossLoss
Tolerance
0.500 0.5200.480
Dr. W. Edwards Deming (1900-1993)
– The Father of Quality Management
– Strongly humanistic philosophy
– “Problems in a production process are due to flaws in the design of the system, as opposed to being rooted in the motivation or professional commitment of the workforce”.
– Quality is maintained and improved when leaders, managers, and the workforce understand and commit to constant customer satisfaction through continuous quality improvement.
Deming Chain Reaction
Improve quality
Costs decrease
Productivity improves
Increase market share with better quality and lower prices
Stay in business
Provide jobs and more jobs
Deming’s System of Profound Knowledge
• Appreciation for a system
• Understanding variation
• Theory of knowledge
• Psychology
Appreciation for a system
• Most organizational processes are cross-functional
• Parts of a system must work together
• Every system must have a purpose
• Management must optimize the system as a whole
Variation
• Many sources of uncontrollable variation exist in any
process
• Excessive variation results in product failures,
unhappy customers, and unnecessary costs
• Statistical methods can be used to identify and
quantify variation to help understand it and lead to
improvements
Theory of Knowledge
• Knowledge is not possible without theory
• Experience alone does not establish a theory, it
only describes
• Theory shows cause-and-effect relationships that
can be used for prediction
Psychology
• People are motivated intrinsically and extrinsically
• Fear is demotivating
• Managers should develop pride and joy in work
Criteria for Performance Excellence
• Leadership
• Strategic Planning
• Customer and Market Focus
• Information and Analysis
• Human Resource Focus
• Process Management
• Business Results
READING MATERIAL
Chapter 1: IntroductionArticle: What does product quality really mean