quality managemnt day 2 material
TRANSCRIPT
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Total Quality Management
• Encompasses entire organization, from supplier to customer
• Stresses a commitment by management to have a continuing, companywide drive toward excellence in all aspects of products and services that are important to the customer
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The Quality Hierarchy
TQM
Assurance
Control
Whole OperationQuality as strategyTeam & empower
Quality as systems& controlsProblem solving
StandardsSamplingChecking
Error detectionRectification
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The Quality Hierarchy
Inspection• The ad – hoc physical check of products or
goods or services to establish their compliance to specification
• “Quality” introduced after the production of the goods or services
• Does not examine cause and effect of poor quality
• Done by remote third party– Does not empower or make quality
part of the producers responsibility• Requires physical intervention• Limited to checking and proving that item
only– Defects are easily missed unless
100% checking or sampling techniques applied
• Often limited to the sensitivity of the testing process or ‘testability’ of the characteristics under examination
Quality control• The systematic checking of outputs from
or during a productive process• “Quality” introduced after the production
of the goods or services– More systematic
• Still done by remote third party• Requires physical intervention• Limited to checking and proving that item
only– Defects are easily missed unless
100% checking or sampling techniques applied
• Often limited to the sensitivity of the testing process or ‘testability’ of the characteristics under examination
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The Quality Hierarchy
Assurance• A practical implementation of a total
quality approach– Requires total company commitment
• Strategic quality principle– Requires total company commitment
• Quality introduced at the outset and throughout the process
– Builds quality in• Quality becoming the responsibility of the
producer• Quality as part of the process• Administered and policed by remote third
party
Total Quality Management (TQM)• A total company approach to quality• Strategic top down strategy
– Used when quality is a key competitive advantage
• As much a philosophy as a technique– Customer is king– Build in rather than inspect in– Empowerment of the producer
• Demming as pioneer• Japanese as exemplars of approach
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Total Quality Management Concepts
1. Continuous improvement2. Six Sigma3. Employee empowerment4. Benchmarking5. Just-in-time (JIT)6. Taguchi concepts7. Knowledge of TQM tools
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Total Quality Management ConceptsContinuous Improvement
Represents continual improvement of all processes
Involves all operations and work centers including suppliers and customers People, Equipment, Materials, Procedures
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Total Quality Management ConceptsContinuous Improvement
TimeTime
PerformancePLANPLAN
DODO
CHECKCHECK
ACTACT
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Total Quality Management ConceptsSix Sigma
Two meanings Statistical definition of a process that is
99.9997% capable, 3.4 defects per million opportunities (DPMO)
A program designed to reduce defects, lower costs, and improve customer satisfaction
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Mean
3.4 defects/million
±6
2,700 defects/million
±3
Total Quality Management ConceptsSix Sigma
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Total Quality Management ConceptsSix Sigma
• Black Belt– project leader
• Master Black Belt– a teacher and mentor
for Black Belts
• Green Belts– project team members
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Total Quality Management ConceptsSix Sigma
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Total Quality Management ConceptsEmployee Empowerment
Getting employees involved in product and process improvements
85% of quality problems are due
to process and material Techniques
Build communication networks that include employees
Develop open, supportive supervisors Move responsibility to employees Build a high-morale organization Create formal team structures
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Total Quality Management ConceptsBenchmarking
Selecting best practices to use as a standard for performance
1. Determine what to benchmark
2. Form a benchmark team
3. Identify benchmarking partners
4. Collect and analyze benchmarking information
5. Take action to match or exceed the benchmark
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Total Quality Management ConceptsJust In Time (JIT)
Relationship to quality:
JIT cuts the cost of quality JIT improves quality Better quality means less inventory
and better, easier-to-employ JIT system
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Total Quality Management ConceptsJust In Time (JIT)
‘Pull’ system of production scheduling including supply management
Allows reduced inventory levels Inventory costs money and hides process and material problems
Encourages improved process and product quality
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Total Quality Management ConceptsJust In Time (JIT)
ScrapUnreliable Vendors
Capacity Imbalances
Work in process inventory level
(hides problems)
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Total Quality Management ConceptsJust In Time (JIT)
Reducing inventory revealsproblems so they can be solved
ScrapUnreliable Vendors
Capacity Imbalances
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Total Quality Management ConceptsTaguchi Concepts
Engineering and experimental design methods to improve product and process design Identify key component and process variables
affecting product variation
Taguchi Concepts Quality robustness Quality loss function Target-oriented quality
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Total Quality Management ConceptsQuality Robustness
Ability to produce products uniformly in adverse manufacturing and environmental conditions Remove the effects of adverse conditions Small variations in materials and process
do not destroy product quality
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Total Quality Management ConceptsQuality Loss Function
Shows that costs increase as the product moves away from what the customer wants
Costs include customer dissatisfaction, warranty and service, internal scrap and repair, and costs to society
Traditional conformance specifications are too simplistic
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Total Quality Management Tools
Tools for Generating Ideas Check sheets Scatter diagrams Cause-and-effect diagrams
Tools to Organize the Data Pareto charts Flowcharts
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Total Quality Management Tools
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Total Quality Management Tools
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Total Quality Management Tools
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Total Quality Management Tools
PrintersRun
Out ofToner
Machinery People
Materials Methods Money
Staff don’t report poor
Managers budgets too
tightly controlled
Too many forms to
fill in
Low capacity toner refills
Using non branded toner to
save money
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Total Quality Management Tools
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Total Quality Management Tools
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Total Quality Management Tools
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Total Quality Management Tools
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Total Quality Management Tools
Number of occurrences
Room svc Check-in Pool hours Minibar Misc.72% 16% 5% 4% 3%
124 3 2
54
– 100– 93– 88
– 72
70 –
60 –
50 –
40 –
30 –
20 –
10 –
0 –
Freq
uenc
y (n
umbe
r)
Causes and percent of the total
Cum
ulati
ve p
erce
nt
Data for October
Pareto Charts
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Total Quality Management ToolsFlow Chart
MRI Flowchart1. Physician schedules MRI2. Patient taken to MRI3. Patient signs in4. Patient is prepped5. Technician carries out MRI6. Technician inspects film
7. If unsatisfactory, repeat8. Patient taken back to room9. MRI read by radiologist10. MRI report transferred to
physician11. Patient and physician discuss
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Total Quality Management ToolsStatistical Process Control (SPC)
Uses statistics and control charts to tell when to take corrective action
Drives process improvement Four key steps
Measure the process When a change is indicated, find the assignable cause Eliminate or incorporate the cause Restart the revised process
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Total Quality Management ToolsStatistical Process Control (SPC)
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Total Quality Management ToolsInspection
Involves examining items to see if an item is good or defective
Detect a defective product Does not correct deficiencies in process
or product It is expensive
Issues When to inspect Where in process to inspect
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Total Quality Management ToolsWhen and where to inspect?
1. At the supplier’s plant while the supplier is producing
2. At your facility upon receipt of goods from the supplier
3. Before costly or irreversible processes
4. During the step-by-step production process
5. When production or service is complete
6. Before delivery to your customer
7. At the point of customer contact
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Total Quality Management ToolsSource Inspection
Also known as source control The next step in the process is your
customer Ensure perfect product
to your customer
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Total Quality Management ToolsService Industry Inspection
Organization What is Inspected Standard
Arnold Palmer Hospital
Billing
Pharmacy
Lab
Nurses
Admissions
Accurate, timely, and correct format
Prescription accuracy, inventory accuracy
Audit for lab-test accuracy
Charts immediately updated
Data entered correctly and completely
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Total Quality Management ToolsService Industry Inspection
Organization What is Inspected Standard
Nordstrom Department Store
Display areas
Stockrooms
Salesclerks
Attractive, well-organized, stocked, good lighting
Rotation of goods, organized, clean
Neat, courteous, very knowledgeable
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Total Quality Management ToolsService Industry Inspection
Organization What is Inspected Standard
Hard Rock Hotel Reception desk
Doorman
Room
Minibar
Use customer’s name
Greet guest in less than 30 seconds
All lights working, spotless bathroom
Restocked and charges accurately posted to bill
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Total Quality Management ToolsService Industry Inspection
Organization What is Inspected Standard
Arnold Palmer Hospital
Billing
Pharmacy
Lab
Nurses
Admissions
Accurate, timely, and correct format
Prescription accuracy, inventory accuracy
Audit for lab-test accuracy
Charts immediately updated
Data entered correctly and completely
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Total Quality Management ToolsService Industry Inspection
Organization What is Inspected Standard
Olive Garden Restaurant
Busboy
Busboy
Waiter
Serves water and bread within 1 minute
Clears all entrée items and crumbs prior to dessert
Knows and suggest specials, desserts
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Total Quality Management ToolsAttributes Vs. Variables
Attributes Items are either good or bad, acceptable or
unacceptable Does not address degree of failure
Variables Measures dimensions such as weight, speed,
height, or strength Falls within an acceptable range
Use different statistical techniques
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Total Quality Management in Service
Service quality is more difficult to measure than the quality of goods
Service quality perceptions depend on Intangible differences between products Intangible expectations customers have of
those products
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Total Quality Management in Service
The Operations Manager must recognize:
1. The tangible component of services is important
2. The service process is important
3. The service is judged against the customer’s expectations
4. Exceptions will occur
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Total Quality Management in Service
Service Specifications
at UPS
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Total Quality Management in ServiceDeterminants of Service Quality
Reliability Consistency of performance and dependability
Responsiveness Willingness or readiness of employees
Competence Required skills and knowledge
Access Approachability and ease of contact
Courtesy Politeness, respect, consideration, friendliness
Communication Keeping customers informed
Credibility Trustworthiness, believability, honesty
Security Freedom from danger, risk, or doubt
Understanding/ knowing the customer Understand the customer’s needs
Tangibles Physical evidence of the service
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Total Quality Management in ServiceService Recovery Strategy
Managers should have a plan for when services fail
Marriott’s LEARN routine Listen Empathize Apologize React Notify