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

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

3. 3.5 TOTAL QUALITY MANAGEMENT
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
3.5 TQM

4. 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
Continual improvement
3) Quality Assurance
Project-by-project
Process-by-process
Empowered workers
Mgmt. commitment
Cross-functional
4) TQM
Company-wide
Customer
focus
3.5 TQM

5. 1.2 Quality Evolution Events/People Ideas Industrial Revolution/
early 1900s
Quality
inspection
1920s-
1950s
Quality
control
Process improvement
Statistical methods
Shewhart
Deming, Juran,
Crosby
ISO, JIT, Oil Crisis,
Foreign competition
Management philosophy
Continual improvement
Cost of quality
Zero defects
1960s-
1970s
Quality
assurance
Organizational focus
Customer driven quality
More choices and info
Higher expectations
Affordable quality
1980s to
present
Feigenbaum
Ishikawa
TQM
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6. 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
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7. 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
1950
1960
1970
1980
1990
Recognition in the West
3.5 TQM

8. 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
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9. 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
3.5 TQM

10. 3.5 TOTAL QUALITY MANAGEMENT
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
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11. 3.5 TOTAL QUALITY MANAGEMENT
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
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12. 3.5 TOTAL QUALITY MANAGEMENT
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
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13. 3.5 TOTAL QUALITY MANAGEMENT
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
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14. 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: – 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
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15. 3.5 TOTAL QUALITY MANAGEMENT
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 TQM