Chapter 11 TQM & Quality Tools

Management 3620Chapter 11 TQM and Quality Tools11-2 Total Quality Management A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction

Management 3620Chapter 11 TQM and Quality Tools11-3 TQM Approach Find out what the customer wants Design a product or service that will meet (or exceed) what customers want Design a set of processes that facilitates doing the job right the first time Keep track of results, and use those to guide improvement Extend these concepts to suppliers and to the distribution system

Management 3620Chapter 11 TQM and Quality Tools11-4 Elements of TQM Continual improvement Competitive benchmarking Employee empowerment Team approach Decisions based on facts Knowledge of tools Supplier quality Champion

Management 3620Chapter 11 TQM and Quality Tools11-5 Continuous Improvement Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs. Kaizen: Japanese word for continuous improvement.

Management 3620Chapter 11 TQM and Quality Tools11-6 Quality at the Source The philosophy of making each worker responsible for the quality of his or her work –places direct responsibility for quality on the person(s) who directly affect it –removes adversarial relationship that often exits between QC inspectors and production workers –motivates workers by giving them control over their and as well as pride in it

Management 3620Chapter 11 TQM and Quality Tools11-7 Obstacles to Implementing TQM (1 of 2) Lack of –Company-wide definition of quality –Strategic plan for change –Customer focus –Real employee empowerment –Strong motivation –Time to devote to quality initiatives –Leadership

Management 3620Chapter 11 TQM and Quality Tools11-8 Obstacles to Implementing TQM (2 of 2) Poor interorganizational communication View of quality as a “quick fix” Emphasis on short-term financial results Internal political and “turf” wars

Management 3620Chapter 11 TQM and Quality Tools11-9 Criticisms of the TQM Approach Blind pursuit of TQM programs Programs may not be linked to the strategy in a meaningful way Quality-related decisions may not be tied to market performance Failure to carefully plan a program can lead to false starts, employee confusion, and meaningless results

Management 3620Chapter 11 TQM and Quality Tools11-10 Basic Steps in Problem Solving Define the problem and establish an improvement goal Collect data Analyze the problem Generate potential solutions Choose a solution Implement the solution Monitor the solution to see if it accomplishes the goal

Management 3620Chapter 11 TQM and Quality Tools11-11 Process Improvement A systematic approach to improving a process Overview of the approach –process mapping –analyze the process –redesign the process

Management 3620Chapter 11 TQM and Quality Tools11-12 Plan Do Study Act Figure 11-1 The PDSA Cycle

Management 3620Chapter 11 TQM and Quality Tools11-13 The Process Improvement Cycle Implement the Improved process Select a process Study/document Seek ways to Improve it Design an Improved process Evaluate Document

Management 3620Chapter 11 TQM and Quality Tools11-14 Process Improvement Tools There are a number of tools that can be used for problem solving and process improvement Tools aid in data collection and interpretation, and provide the basis for decision making

Management 3620Chapter 11 TQM and Quality Tools11-15 Seven Basic Quality Tools Check sheets Flowcharts Scatter diagrams Histograms Pareto analysis Control charts Cause-and-effect diagrams

Management 3620Chapter 11 TQM and Quality Tools11-16 Billing Errors Wrong Account Wrong Amount A/R Errors Wrong Account Wrong Amount Monday Check Sheet

Management 3620Chapter 11 TQM and Quality Tools11-17 Flowchart

Management 3620Chapter 11 TQM and Quality Tools11-18 Scatter Diagram Variable A Variable B

Management 3620Chapter 11 TQM and Quality Tools11-19 Histogram frequency ABCDE

Management 3620Chapter 11 TQM and Quality Tools % of the problems may be attributed to 20% of the causes. 80% of the problems may be attributed to 20% of the causes. Smeared print Number of defects Off center Missing label Loose Other Pareto Analysis

Management 3620Chapter 11 TQM and Quality Tools UCL LCL Figure11-10 Control Chart

Management 3620Chapter 11 TQM and Quality Tools11-22 Cause-and-Effect Diagram Figure11-11 Effect MaterialsMethods EquipmentPeople Environment Cause

Management 3620Chapter 11 TQM and Quality Tools11-23 Tracking Improvements UCL LCL UCL Process not centered and not stable Process centered and stable Additional improvements made to the process Figure11-16

Management 3620Chapter 11 TQM and Quality Tools11-24 Methods for Generating Ideas Brainstorming Quality circles Interviewing Benchmarking 5W2H

Management 3620Chapter 11 TQM and Quality Tools11-25 Quality Circles Team approach –List reduction –Balance sheet –Paired comparisons

Management 3620Chapter 11 TQM and Quality Tools11-26 Benchmarking Process Identify a critical process that needs improving Identify an organization that excels in this process Contact that organization Analyze the data Improve the critical process