MTSU 1 TQM for Supply

MTSU 2 TQM for Supply What is supply management? How does it differ from operations management? How is the TQM implementation different for supply than for the rest of the company?

MTSU 3 Supply Chain Management A supply chain consists of all stages involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves. Chopra and Meindl

MTSU 4 Supply Chain Management vs. Operations Management The primary difference between supply chain management and operations management is that OM is primarily focused on one organization, while SCM includes the operations of many organizations.

MTSU 5 Supply Management Supply management would be concerned with the improvement of other organizations in the supply chain and the interfaces between those organizations.

MTSU 6 Supply Management Improvement of other organizations in the supply chain must be limited in scope or it would be beyond the resources of even the largest of companies.

MTSU 7 What Methodologies Would Be Useful? Deming Juran Crosby Feigenbaum Ishikawa Six Sigma

MTSU 8 W. Edwards Deming’s 14 Points for Management 1.Create constancy of purpose 2.Adopt a new philosophy 3.Cease dependence on mass inspection 4.End awarding business on the basis of price 5.Constantly improve the system 6.Institute training on the job 7.Improve leadership 8. Drive out fear. 9. Break down barriers 10. Eliminate slogans 11. Eliminate work standards 12. Remove barriers to pride 13. Institute education & self improvement 14. Put everybody back to work

MTSU 9 W. Edwards Deming’s Seven Deadly Diseases 1.Lack of constancy of purpose 2.Emphasis on short-term profits 3.Evaluation of performance, merit ratings, or annual reviews of performance 4.Mobility of management 5.Running a company on the visible numbers alone 6.Excessive medical costs 7.Excessive warranty costs

MTSU 10 Joseph M. Juran’s Prescriptions Quality Planning 1.Establish quality goals 2.Identify the customers 3.Determine customer needs 4.Develop product features to respond to customer needs 5.Develop process features 6.Establish process controls

MTSU 11 Joseph M. Juran’s Prescriptions Quality Control 1.Evaluate actual quality performance 2.Compare actual performance to quality goals 3.Act on the difference

MTSU 12 Joseph M. Juran’s Prescriptions Quality Improvement 1.Establish infrastructure needed to secure annual quality improvement 2.Identify the specific needs for improvement 3.Establish project team with clear responsibility for success

MTSU 13 Philip Crosby’s 14-Point Q Improvement Program 1.Management commitment 2.Q Improvement Teams 3.Q Measurements 4.Cost of Q Evaluation 5.Q Awareness 6.Corrective Action 7.0-Defect Committees 8. Supervisor Training 9. Zero-defects Day 10. Goal Setting 11. Error Cause Removal 12. Recognition 13. Quality Councils 14. Do It Over Again

MTSU 14 Feigenbaum’s 19 Steps 1.TQC = system of improvement 2.CW Commitment > line improvements 3.Control is a mgt tool 4.QC requires integration 5.Q improves profits 6.Q is expected, not desired 7. Humans affect Q 8. TQC applies to all products & services 9. Q is a total life-cycle consideration 10. Control the process 11. TQ system involves the whole company 12. Many operating & financial benefits of Q

MTSU 15 Feigenbaum’s 19 Steps 13.Cost of Q is a means for measuring QC activities 14.Organize for QC 15.Managers are Q facilitators, not Q Cops 16.Strive for continuous improvement 17. Use statistical tools 18. Automation is not a panacea 19. Control Q at the source

MTSU 16 Ishikawa’s 11 Points 1.Q begins & ends with education 2.1 st step in Q is to know the requirements of customer. 3.Ideal state of QC is when inspection not needed. 4.Remove root causes not symptoms. 5. QC is responsibility of all workers. 6. Do not confuse means w/ objectives. 7. Put Q 1 st and set sights on long term objectives. 8. Marketing is entrance & exit of Q.

MTSU 17 Ishikawa’s 11 Points 9.Top management must not show anger when facts are presented to subordinates % of problems in a company can be solved by the 7 tools of QC. 11.Data without dispersion info are false data.

MTSU 18 Mikel Harry 1.Six Sigma Quality 2.Defined toolbox 3.Human issues – commitment and training 4.Quality measurement – DPMO – Cost of Q 5.Structures – DMAIC, DMADV 6.Critical to Quality

MTSU 19 DMADV - DMAIC Define Measure Analyze Design Verify Define Measure Analyze Improve Control Existing Processes New Processes

MTSU 20 Seven Management Tools 1.Affinity Diagram 2.Interrelationship Diagraph 3.Tree Diagrams 4.Prioritization Matrices 5.Matrix Diagram 6.Process Decision Program Chart 7.Activity Network Diagram

MTSU 21 Define Phase - Tools Project Charter Stakeholder Analysis Affinity Diagram SIPOC Voice of the Customer CT Tree Kano Model SWOT Analysis Cause-and-Effect Diagrams Supplier Segmentation Project Management

MTSU 22 Measure Phase - Tools Data Collection Plan Data Collect. Form Frequency Plots Gage R&R Pareto charts Prioritization matrix FMEA Process Capability Process Sigma Sampling Stratification Time Series Plots

MTSU 23 Analyze Phase - Tools Affinity Diagrams Brainstorming Cause-and-Effect Control Charts Data Collect. Forms Data Collection Plan Design of Experiments Flow diagrams Frequency plots Hypothesis tests Pareto chart Regression analysis Response surface meth. Sampling Scatter plots Stratified frequency plots

MTSU 24 Improve Phase - Tools Consensus Brainstorming Creativity techniques Data collection Design of Experiments Flow diagrams FMEA Hypothesis tests Planning tools Stakeholder analysis

MTSU 25 Improve Phase - Tools Control chars Data collection Flow diagrams Standardization Charts to compare before and after (frequency plots, Pareto charts, control charts) Quality Control Process Chart

MTSU MBNQA Categories and Scoring System 1.0 Leadership Strategic Planning Customer and Market Focus Measurement, Analysis, and Knowledge Management Human Resource Focus Process Management Business Results450 TOTAL POINTS 1000

MTSU 27 Methodology or Implementation? I’d rather have a good plan, violently executed right now, than the perfect plan three days from now. General George S. Patton December, 1944

MTSU 28 On the other hand, some plans are just bad.

MTSU 29 What are the keys to success in TQM implementation in supply? Careful allocation of resources Attention to communication and coordination activities Focus on people issues - obtaining commitment and alignment Finding the right measures Others?