Total Quality Management - PowerPoint PPT Presentation

1 / 34
About This Presentation
Title:

Total Quality Management

Description:

Fitness for Use. How well the product or service. does what the consumer thinks ... Test equipment costs. Operator costs. Appraisal or Inspection costs ... – PowerPoint PPT presentation

Number of Views:53
Avg rating:3.0/5.0
Slides: 35
Provided by: dwcH
Category:

less

Transcript and Presenter's Notes

Title: Total Quality Management


1
Total Quality Management
  • Goal 2

2
What is Quality?
  • A degree or level of excellence.
  • Difficult to define
  • Various attributes
  • Quality is determined by what
  • Customers want is willing
  • to pay for.

3
What is Quality?
  • Different needs of consumersDifferent Quality
    ExpectationsFitness for UseHow well the product
    or servicedoes what the consumer thinks It is
    supposed to do

4
Customers PerspectiveManufactured
products-Quality
  • Performance Basic operating characteristics.
  • How well a car handles or its gas mileage?
  • Reliability Product Operating properly within
    an
  • expected time frame.
  • Durability Life span of product before
    replacement.
  • Serviceability Ease of getting repairs, speed
    of repairs.
  • Aesthetics How a product looks, sound , feels,
    smells.
  • Safety

5
Customers PerspectiveService Quality
  • Time and timeliness Customer waiting time.
  • Completeness Is everything provided?
  • Courtesy How customers are treated?
  • Consistency Same level of service each time.
  • Accessibility and convenience Easy to obtain
  • Service.
  • Accuracy Is the service performed right every
    time?

6
Quality Two Perspectives
7
Quality Evolution
Quality Control focus is to stop poor quality
products going to customers Inspection after
the fact.
8
TQM (Total Quality Management)
The management of quality throughout the
organization at all levels and across all areas.
9
TQM (Management Principles)
  • The customer defines quality, and customers
    needs
  • are top priority.
  • Top management must provide the leadership
  • for quality.
  • Quality is a strategic issue.
  • Quality is the responsibility of all employees.
  • Focus on continuous quality improvement.
  • Quality problems are solved through cooperation.
  • Use of statistical quality control methods.
  • Training education of all employees.

10
How TQM Companies Work?
  • Traditional Companies
  • Company / Product
  • driven.
  • The customer can have any
  • Color car as long as its black.
  • Henry Ford
  • Short term profitability
  • TQM Companies
  • Customer driven
  • What is our business?
  • Is not determined by the
  • Producer but by the
  • Consumer.
  • Peter Drucker
  • Long term commitment

11
How TQM Companies Work?
  • TQM Companies
  • Continuous improvement
  • Quality at the source
  • High employee
  • Participation
  • Cross functional teams
  • Elimination of waste
  • Traditional Companies
  • High production cost
  • waste
  • Inspection after the fact
  • Top-down approach
  • Fortressed departments
  • High scrap rework

12
TQM Tools
  • The Plan- Do- Check- Act cycle
  • Quality Circles
  • Benchmarking
  • Statistical quantitative tools

13
The PDCA Cycle
14
Quality Circles
15
Benchmarking
Continuously evaluating the practices of
best-in-class and adapting company processes to
incorporate the best of these practices.
Benchmarking is the search for industry best
practices that lead to superior performance
16
Benchmarking Types
  • Internal Benchmarking
  • Competitive Benchmarking
  • Industry Benchmarking
  • World-Class Benchmarking

17
Benchmarking Advantages
  •         Prevents "reinventing the wheel.
  •         Leads to adaptation of proven practices.
  •         Leads to adaptation of best practices.
  •         Results in a better understanding of
  • internal strengths and weaknesses.
  •         Make companies more competitive.
  • Improves customer satisfaction.

18
Benchmarking Process


1. Select and prioritize benchmarking projects.

2. Organize benchmarking teams.
3. Through investigation and documentation of
the companys internal processes and development
of performance indicators.  
4. Researching and identifying the best in class.
5. Identifying performance gaps and understanding
the reasons they exist.
6. Implementing and managing the approved
changes.
19
Statistical and Quantitative Techniques
Pareto diagrams
Control charts
Cause-and-effect diagrams
20
Pareto Diagram
21
Pareto Diagram
22
Control Charts
Production Line A
? 2? ??? ? ? ???- ? ? - 2?
Defect Rate
Days
23
Cause-and-effect Diagrams
24
Cause-and-effect Diagrams
Methods and Design Factors
Human Factors
Flawed part design Incorrect manufacturing sequenc
e
Inadequate supervision Poor training New operator
Inadequate tools Incorrect speed Poor maintenance
Multiple suppliers Incorrect specification Variati
on in purchased components
Machine-related Factors
Materials and Components Factors
25
Costs of Quality
Cost of achieving good quality
Prevention costs
Appraisal costs
Cost of poor quality
Internal failure costs
External failure costs
26
Prevention costs
Costs of trying to prevent poor quality
products from reaching the customer.
  • Quality planning costs
  • Quality training costs
  • Product design costs
  • Process design costs

27
Appraisal or Inspection costs
Costs incurred to identify defective
products before they are shipped to customers.
  • Testing and inspection costs
  • Raw material, goods in process, finished
    goods.
  • Test equipment costs
  • Operator costs

28
Internal failure costs
Costs incurred when poor quality products
are discovered during appraisal process.
  • Scrap costs
  • Rework costs
  • Re-inspection of reworked products
  • Downtime costs

29
External failure costs
Costs incurred after the customer has
received poor quality product.
  • Customer complaint costs
  • Product return costs
  • Warranty claims costs
  • Lost sales costs

30
Costs of Quality
Costs
Internal External failure
Total Cost
Total
Prevention Appraisal
Percentage of output without defects
31
Quality Cost Report
32
Nonfinancial Measures
Nonfinancial measures of customer satisfaction
  • Number of customer complaints
  • Defective units as a percentage of total units
  • shipped to customers
  • Percentage of products that experience early
  • or excessive failure
  • On-time delivery rate

33
Nonfinancial Measures
Nonfinancial measures of internal performance
  • Number of defects for each product line
  • Process yield
  • (ratio of good output to total output)
  • Employee turnover
  • (ratio of the number of employees who left
  • the company to the total number of employees)

34
Evaluating Quality Performance
Financial measures are helpful to
evaluate trade-offs among prevention
costs, appraisal costs, and failure costs.
Nonfinancial measures help focus attention on the
precise problem areas that need improvement and
also serve as indicators of future long-run
performance.
Write a Comment
User Comments (0)
About PowerShow.com