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MOS 330: Operations Management Professor Burjaw Fall/Winter 2009-10 3.5 Total Quality Management 13.5 TQM.

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Presentation on theme: "MOS 330: Operations Management Professor Burjaw Fall/Winter 2009-10 3.5 Total Quality Management 13.5 TQM."— Presentation transcript:

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2 MOS 330: Operations Management Professor Burjaw Fall/Winter Total Quality Management 13.5 TQM

3 Learning Objectives: 1. What is TQM 2. Quality evolution and quality gurus 3. Similarities/differences to other concepts 4. Implementation issues 5. Six sigma quality program 6. Quality awards 7. ISO 3.5 TOTAL QUALITY MANAGEMENT 23.5 TQM

4 3.5 TOTAL QUALITY MANAGEMENT 1.What is TQM?  An organization-wide effort to achieve quality in processes and product based on a set of guiding principles: 1) Customer focus  Anticipate customer needs & expectations and obtain feedback 2) Continual improvement  Constantly seek to improve processes, products, productivity, effectiveness, responsiveness, etc 3) Total participation and teamwork  Workers are inspectors: provide training, authority, rewards  Cross-functional, process improvement teams  Top management commitment  Supplier relationship 33.5 TQM

5 3.5 TOTAL QUALITY MANAGEMENT 1.1 Stages of QM 1) Quality Inspection 2) Quality Control Obtain management support Choose a SPC leader Select a process for pilot study Provide SPC training Construct control charts 3) Quality Assurance Project-by-project Process-by-process 4) TQM Company-wide Continual improvement Cross-functional Customer focus Empowered workers Mgmt. commitment 43.5 TQM

6 1.2 Quality Evolution Industrial Revolution/ early 1900s 1920s- 1950s 1960s- 1970s 1980s to present Quality inspection Quality control Quality assurance TQM Process improvement Statistical methods Shewhart Deming, Juran, Crosby ISO, JIT, Oil Crisis, Foreign competition Feigenbaum Ishikawa Organizational focus Customer driven quality More choices and info Higher expectations Affordable quality Management philosophy Continual improvement Cost of quality Zero defects Events/People Ideas 53.5 TQM

7 3.5 TOTAL QUALITY MANAGEMENT 1.3 Quality Gurus  Shewhart  Promoted SPC, Shewhart Cycle  Deming  Deming Wheel, 14-point quality management philosophy, promoted quality management in Japan  Deming Prize  Juran  Quality Control Handbook, quality trilogy (planning, control and improvement), cost of quality  Crosby  Cost of poor quality, zero defects, Quality is Free  Feigenbaum, Ishikawa (cause-and-effect diagram)  Total quality control, company-wide commitment 63.5 TQM

8 3.5 TOTAL QUALITY MANAGEMENT 1.4 TQM vs. JIT  Customer focus  JIT: to achieve good forecast of customer demand  Continuous improvement (“kaizen”)  JIT: require high quality products; undercapacity scheduling  Total participation and teamwork  JIT: well-trained, multifunctional, empowered employees; group problem solving TQM JIT Recognition in Japan TQM JIT Recognition in the West TQM

9 3.5 TOTAL QUALITY MANAGEMENT 1.5 TQM vs. BPR  Business Process Reengineering (BPR): the total redesign of a process  Leading to organizational and cultural changes, empowered and multi-functional employees, management leadership  Aim for rapid, dramatic improvement in process performance (BPR) vs. continuous improvement (TQM)  Common BPR characteristics  Combining several jobs into one, processes have multiple versions, work is done where it makes the most sense 83.5 TQM

10 3.5 TOTAL QUALITY MANAGEMENT 1.6 Common Problems with TQM  Lack of a genuine quality culture  Forgetting customer-focus  Conflict with existing systems (e.g., compensation and promotion systems, policies and procedures)  Lack of top management support and commitment  Forgetting long-term benefits (“bottom line” approach)  Inadequate training  Over-or under-reliance on quality tools  Over-emphasis on teams, under-emphasis on individual efforts 93.5 TQM

11 2. Six Sigma Quality Program  Six sigma: A high level of quality with 3.4 defective parts per million  Coined by Motorola in 1986  Motorola won Baldridge Award in 1988  A business philosophy/strategy focusing on cutting costs and explicit compensation systems  Six sigma black belt certification  Offered by Motorola and American Society for Quality  Black belt: Employee trained and experienced in application of statistical techniques, problem solving, project management, team leadership skills  Requirements: training, quality projects, work experience, written exam 3.5 TOTAL QUALITY MANAGEMENT TQM

12 Methodology  DMAIC model  Define problem/opportunity  Measure characteristics that are critical-to-quality  Analyze the problem using benchmarking and gap studies  Improve by reducing variation and reducing defects  Control performance  Other tools  Computer simulation  Part standardization  Supplier qualification, SPC  Design of experiments  Measurement system analysis 3.5 TOTAL QUALITY MANAGEMENT TQM

13 3. Quality Awards  Baldridge Award (USA): created by law in 1987  Manufacturing, service, small business, education, health care  Customer focus, process management, leadership, HR, strategic planning, information and analysis, business results  Application, initial screening, in-depth examination  Deming Prize (Japan): created in 1957  Company, business unit, individual  Allowed foreign companies to apply in 1984  Minimum application standards Common Themes  Privilege, worthy experience, expensive 3.5 TOTAL QUALITY MANAGEMENT TQM

14 4.Quality Standards  ISO (International Organization for Standardization)  Headquarter in Geneva, officially established in 1947  Network of national standards institutes of 146 countries  To promote a uniform quality standard for cross-border transactions  Focus on a quality system that defines how an organization documents processes and procedures  Certification of suppliers, not products Common themes  Marketing strategy, customer requirement, international trade requirement 3.5 TOTAL QUALITY MANAGEMENT TQM

15 3.5 TOTAL QUALITY MANAGEMENT  ISO 9000 series for quality management (1987)  ISO 9001 (production, procurement, installation, design, servicing)  ISO 9001 (production, procurement, installation)  ISO 9003 (inspection and test)  ISO 9004 (quality management)  I SO 9000: 2000 – consistency, easier to understand  ISO series for environmental management (1996)  Environmental management systems, technical standards  Applicable in all nations, promote the interests of public and user, cost effective and flexible  Other standards  QS 9000: For Chrysler, Ford and GM suppliers  AS 9000: Aerospace industry TQM

16  Registration process  Application  documentation review  pre-assessment  registration audit  registration decision  surveillance audit  Cost  Internal: analysis, project planning, system development, system documentation, system implementation, training, internal audit, system modifications  External: ISO publication and software, registrars (fees & travel), consultants (fees & travel)  Time: “3 months to 3 years” 3.5 TOTAL QUALITY MANAGEMENT TQM


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