Module 2 Total Quality Management

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Module 2 - Total Quality Management
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Course Framework

• 1. Cost
• - Design Selection
• 2. Quality
• - TQM
• - SQC
• 3. Speed
• - Project Management
• - Supply Chain

• 4. Flexibility
• - Supply Chain
• - Inventory
• - Location
• - Forecasting
• - Aggregate Planning

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Learning Objectives

• Explain the meaning of TQM
• Identify ways of improving quality
• Identify tools used for solving quality problems
• Understand why TQM projects fail

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What is TQM?

• Meeting quality expectations as defined by the
  customer
• Integrated organizational effort designed to
  improve quality of processes at every business
  level

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TQM Philosophy Whats Different?

• Focus on Customer
• Identify and meet customer needs
• Continuous Improvement
• Continuous learning and problem solving
• Quality at the Source
• Inspection vs. prevention problem solving
• Employee Empowerment
• Empower employees and customers

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TQM Philosophy (continued)

• Understanding Quality Tools
• Ongoing training on analysis, assessment, and
  correction, implementation tools
• Team Approach
• Teams formed around processes 8 to 10 people
• Meet weekly to analyze and solve problems
• Benchmarking
• Studying practices at best in class companies

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Dimensions of Quality

• Quality of design
• Features to include in the final design
• Quality of conformance to design
• Production processes to meet design
  specifications
• Ease of use
• Instructions, operation, maintenance, safety
• Post-sale service
• Responsiveness, rapid repair, p.m., spare parts

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Quality Gurus

• W. Edwards Deming
• Phillip Crosby
• Joseph M. Juran

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Deming Natural variability

• All process are subject to variability
• Natural causes
• Assignable causes
• Objective Identify assignable causes

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Crosby Importance of Quality
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Juran Cost of Quality

• Prevention costs
• Preparing implementing a quality plan
• Appraisal costs
• Testing, evaluating inspecting quality
• Internal failure costs
• Defects incurred within system
• External failure costs
• Defects that escape system

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COQ Relationship
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Ways of Improving Quality

• Plan-Do-Study-Act Cycle (PDSA)
• Also called the Deming Wheel after originator
• Circular, never ending problem solving process
• Quality Function Deployment
• Used to translate customer preferences to design
• Seven Tools of Quality Control
• Tools typically taught to problem solving teams

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PDSA Details

• Plan
• Evaluate current process
• Collect procedures, data, identify problems
• Develop an improvement plan, performance
  objectives
• Do
• Implement the plan trial basis
• Study
• Collect data and evaluate against objectives
• Act
• Communicate the results from trial
• If successful, implement new process

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PDSA (continued)

• Cycle is repeated
• After act phase, start planning and repeat process

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QFD Details

• Process used to ensure that the product meets
  customer specifications

Voice of the engineer
Customer-based benchmarks
Voice of the customer
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QFD - House of Quality

• Adding trade-offs, targets developing product
  specifications

Trade-offs
Technical Benchmarks
Targets
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Seven Problem Solving Tools

• Flowcharts
• Checklists
• Scatter Diagrams
• Cause-and-Effect Diagrams

• Histograms
• Pareto Analysis
• Control Charts

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Flowcharts

• Used to document the detailed steps in a process
• Often the first step in operations analysis

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Checklist

• Simple data check-off sheet designed to identify
  type of quality problems at each work station
  per shift, per machine, per operator

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Scatter Diagrams

• A graph that shows how two variables are related
  to one another
• Data can be used in a regression analysis to
  establish equation for the relationship

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Cause-and-Effect Diagrams

• Called Fishbone Diagram
• Focused on solving identified quality problem

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Histograms

• A chart that shows the frequency distribution of
  observed values of a variable like service time
  at a bank drive-up window

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Pareto Analysis

• Technique that displays the degree of importance
  for each element
• Quality problems are the result of only a few
  problems e.g. 80 of the problems caused by 20
  of causes

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Control Charts

• Important tool used in Statistical Process
  Control
• The UCL and LCL are calculated limits used to
  show when process is in or out of control

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Why TQM Efforts Fail

• Lack of a genuine quality culture
• Lack of top management support and commitment
• Over- and under-reliance on SPC methods