TOTAL QUALITY MANAGEMENT Kristian Veil N. Nierves
Meaning of Quality <ul><li>Meeting Customer’s Requirements </li></ul><ul><li>Doing Things Right the First Time </li></ul><...
Meaning of Quality <ul><li>Conformance to specifications </li></ul><ul><ul><li>Does product/service meet targets and toler...
Total Quality Management <ul><li>A holistic approach to long-term success that views continuous improvement in all aspects...
Total Quality Management <ul><li>Total quality management transcends the product quality approach, involves everyone in th...
Total Quality Management <ul><li>commitment and direct involvement of highest-level executives in setting quality goals an...
Total Quality Management <ul><li>understanding of the changing needs of the internal and external customers, and stakehold...
Dimensions of Quality: Manufacturing Organizations <ul><li>Conformance  </li></ul><ul><ul><li>the degree to which a produc...
Dimensions of Quality: Manufacturing Organizations <ul><li>Features </li></ul><ul><ul><li>the extras that are included bey...
Dimensions of Quality: Manufacturing Organizations <ul><li>Aesthetics </li></ul><ul><ul><li>how a product looks, feels, so...
Dimensions of Quality: Service Organizations <ul><li>Time and Timeliness </li></ul><ul><ul><li>How long must a customer wa...
Dimensions of Quality: Service Organizations <ul><li>Consistency </li></ul><ul><ul><li>Is the same level of service provid...
Cost of Quality <ul><li>Quality affects all aspects of the organization and has dramatic cost implications </li></ul>Exter...
Quality Control Costs <ul><li>costs necessary for achieving high quality </li></ul>Costs incurred in the process of preven...
Prevention Cost <ul><li>Quality planning costs </li></ul><ul><ul><li>costs of developing and implementing  quality managem...
Prevention Cost <ul><li>Training costs </li></ul><ul><ul><li>costs of developing and putting on quality training programs ...
Appraisal Cost <ul><li>Inspection and testing </li></ul><ul><ul><li>costs of testing and inspecting materials, parts, and ...
Quality Failure Costs <ul><li>cost consequences of poor quality </li></ul>Costs associated with discovering poor product q...
Internal Failure Cost <ul><li>Scrap costs </li></ul><ul><ul><li>costs of poor-quality products that must be discarded, inc...
Internal Failure Cost <ul><li>Process downtime costs </li></ul><ul><ul><li>costs of shutting down  productive process to f...
External Failure Cost <ul><li>Customer complaint costs </li></ul><ul><ul><li>costs of investigating and satisfactorily res...
External Failure Cost <ul><li>Product liability costs </li></ul><ul><ul><li>litigation costs resulting from product liabil...
Cost of Quality <ul><li>The earlier defects are found, the less costly they are to correct. </li></ul><ul><li>Example: det...
Cost of Quality
Evolution of Total Quality Management
Quality Gurus Quality Guru Main Contribution Walter A. Shewhart -contributed to understanding of process variability -deve...
Deming’s 14 Points  <ul><li>Create constancy of purpose </li></ul><ul><li>Adopt philosophy of prevention </li></ul><ul><li...
Total Quality Control Philosophy <ul><li>TQM Focuses on identifying quality problem root causes  </li></ul><ul><li>Encompa...
Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employe...
Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employe...
Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employe...
Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employe...
Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employe...
Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employe...
Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employe...
Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employe...
Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employe...
Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employe...
Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employe...
Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employe...
Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employe...
Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employe...
Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employe...
Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employe...
Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employe...
Quality Awards and Standards <ul><li>Philippine Quality Award </li></ul><ul><li>Malcolm Baldrige National Quality Award (M...
Philippine Quality Award <ul><li>Sets a standard of excellence to help Filipino organizations achieve world-class performa...
Malcolm Baldrige National Quality Award (MBNQA) <ul><li>Award named after the former Secretary of Commerce – Regan Adminis...
The Deming Prize <ul><li>Given by the Union of Japanese Scientists and Engineers since 1951 </li></ul><ul><li>Named after ...
ISO 9000 Standards <ul><li>Certification developed by International Organization for Standardization </li></ul><ul><li>Set...
ISO 9000 Standards <ul><li>ISO 9000:2000 QMS  </li></ul><ul><ul><li>Fundamentals and Standards </li></ul></ul><ul><ul><ul>...
ISO 9000 Standards <ul><li>ISO 9004:2000 QMS </li></ul><ul><ul><li>Guidelines for Performance </li></ul></ul><ul><ul><ul><...
ISO 14000 Standards <ul><li>Focuses on a company’s environmental responsibility </li></ul>
Why TQM Efforts Fail <ul><li>Lack of a genuine quality culture </li></ul><ul><li>Lack of top management support and commit...
TQM Within  Operations Management <ul><li>TQM is broad sweeping organizational change </li></ul><ul><li>TQM impacts </li><...
TQM Within  Operations Management <ul><ul><li>Engineering  </li></ul></ul><ul><ul><ul><li>translate customer requirements ...
Reference <ul><li>www.wiley.com </li></ul><ul><li>Wiley and Sons </li></ul>
The Plan–Do–Study–Act Cycle <ul><li>A diagram that describes the activities that need to be performed to incorporate conti...
The Plan–Do–Study–Act Cycle <ul><li>Plan </li></ul><ul><li>Do </li></ul><ul><li>Study </li></ul><ul><li>Act </li></ul><ul>...
The Plan–Do–Study–Act Cycle <ul><li>Plan </li></ul><ul><li>Do </li></ul><ul><li>Study </li></ul><ul><li>Act </li></ul><ul>...
The Plan–Do–Study–Act Cycle <ul><li>Plan </li></ul><ul><li>Do </li></ul><ul><li>Study </li></ul><ul><li>Act </li></ul><ul>...
The Plan–Do–Study–Act Cycle <ul><li>Plan </li></ul><ul><li>Do </li></ul><ul><li>Study </li></ul><ul><li>Act </li></ul><ul>...
Benchmarking <ul><li>Studying the business practices of other companies for purposes of comparison </li></ul>
Seven Tools of Quality Control <ul><li>Cause-and-Effect Diagrams </li></ul><ul><li>Flowcharts </li></ul><ul><li>Checklists...
Seven Tools of Quality Control <ul><li>Cause-and-Effect Diagrams </li></ul><ul><li>Flowcharts </li></ul><ul><li>Checklists...
Seven Tools of Quality Control <ul><li>Cause-and-Effect Diagrams </li></ul><ul><li>Flowcharts </li></ul><ul><li>Checklists...
Seven Tools of Quality Control <ul><li>Cause-and-Effect Diagrams </li></ul><ul><li>Flowcharts </li></ul><ul><li>Checklists...
Seven Tools of Quality Control <ul><li>Cause-and-Effect Diagrams </li></ul><ul><li>Flowcharts </li></ul><ul><li>Checklists...
Seven Tools of Quality Control <ul><li>Cause-and-Effect Diagrams </li></ul><ul><li>Flowcharts </li></ul><ul><li>Checklists...
Seven Tools of Quality Control <ul><li>Cause-and-Effect Diagrams </li></ul><ul><li>Flowcharts </li></ul><ul><li>Checklists...
Seven Tools of Quality Control <ul><li>Cause-and-Effect Diagrams </li></ul><ul><li>Flowcharts </li></ul><ul><li>Checklists...
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  1. 1. TOTAL QUALITY MANAGEMENT Kristian Veil N. Nierves
  2. 2. Meaning of Quality <ul><li>Meeting Customer’s Requirements </li></ul><ul><li>Doing Things Right the First Time </li></ul><ul><li>Freedom from Failure (Defects) </li></ul><ul><li>Consistency </li></ul><ul><li>Continuous Improvement </li></ul>
  3. 3. Meaning of Quality <ul><li>Conformance to specifications </li></ul><ul><ul><li>Does product/service meet targets and tolerances defined by designers? </li></ul></ul><ul><li>Fitness for use </li></ul><ul><ul><li>Evaluates performance for intended use </li></ul></ul><ul><li>Value for price paid </li></ul><ul><ul><li>Evaluation of usefulness vs. price paid </li></ul></ul><ul><li>Support services </li></ul><ul><ul><li>Quality of support after sale </li></ul></ul><ul><li>Psychological </li></ul><ul><ul><li>e.g. Ambiance, prestige, friendly staff </li></ul></ul>
  4. 4. Total Quality Management <ul><li>A holistic approach to long-term success that views continuous improvement in all aspects of an organization as a process and not as a short-term goal. It aims to radically transform the organization through progressive changes in the attitudes, practices, structures, and systems. </li></ul>
  5. 5. Total Quality Management <ul><li>Total quality management transcends the product quality approach, involves everyone in the organization, and encompasses its every function: administration, communications, distribution, manufacturing, marketing, planning, training, etc. Coined by the US Naval Air Systems Command in early 1980s, this term has now taken on several meanings and includes </li></ul>
  6. 6. Total Quality Management <ul><li>commitment and direct involvement of highest-level executives in setting quality goals and policies, allocation of resources, and monitoring of results </li></ul><ul><li>realization that transforming an organization means fundamental changes in basic beliefs and practices and that this transformation is everyone's job </li></ul><ul><li>building quality into products and practices right from the beginning </li></ul>
  7. 7. Total Quality Management <ul><li>understanding of the changing needs of the internal and external customers, and stakeholders, and satisfying them in a cost effective manner </li></ul><ul><li>instituting leadership in place of mere supervision so that every individual performs in the best possible manner to improve quality and productivity, thereby continually reducing total cost </li></ul><ul><li>eliminating barriers between people and departments so that they work as teams to achieve common objectives </li></ul><ul><li>instituting flexible programs for training and education, and providing meaningful measures of performance that guide the self-improvement efforts of everyone involved. </li></ul>
  8. 8. Dimensions of Quality: Manufacturing Organizations <ul><li>Conformance </li></ul><ul><ul><li>the degree to which a product characteristic meets preset standards </li></ul></ul><ul><li>Performance </li></ul><ul><ul><li>such as acceleration of a vehicle </li></ul></ul><ul><li>Reliability </li></ul><ul><ul><li>that the product will function as expected without failure </li></ul></ul>
  9. 9. Dimensions of Quality: Manufacturing Organizations <ul><li>Features </li></ul><ul><ul><li>the extras that are included beyond the basic characteristics </li></ul></ul><ul><li>Durability </li></ul><ul><ul><li>expected operational life of the product </li></ul></ul><ul><li>Serviceability </li></ul><ul><ul><li>how readily a product can be repaired </li></ul></ul>
  10. 10. Dimensions of Quality: Manufacturing Organizations <ul><li>Aesthetics </li></ul><ul><ul><li>how a product looks, feels, sounds, smells, or tastes </li></ul></ul><ul><li>Safety </li></ul><ul><ul><li>assurance that customer will not suffer injury or harm from a product </li></ul></ul><ul><li>Perceptions </li></ul><ul><ul><li>subjective perceptions based on brand name, advertising, and the like </li></ul></ul>
  11. 11. Dimensions of Quality: Service Organizations <ul><li>Time and Timeliness </li></ul><ul><ul><li>How long must a customer wait for service, and is it completed on time? </li></ul></ul><ul><ul><li>Is an overnight package delivered overnight? </li></ul></ul><ul><li>Completeness </li></ul><ul><ul><li>Is everything customer asked for provided? </li></ul></ul><ul><ul><li>Is a mail order from a catalogue company complete when delivered? </li></ul></ul><ul><li>Courtesy </li></ul><ul><ul><li>How are customers treated by employees? </li></ul></ul><ul><ul><li>Are catalogue phone operators nice and are their voices pleasant? </li></ul></ul>
  12. 12. Dimensions of Quality: Service Organizations <ul><li>Consistency </li></ul><ul><ul><li>Is the same level of service provided to each customer each time? </li></ul></ul><ul><ul><li>Is your newspaper delivered on time every morning? </li></ul></ul><ul><li>Accessibility and convenience </li></ul><ul><ul><li>How easy is it to obtain service? </li></ul></ul><ul><ul><li>Does a service representative answer you calls quickly? </li></ul></ul><ul><li>Accuracy </li></ul><ul><ul><li>Is the service performed right every time? </li></ul></ul><ul><ul><li>Is your bank or credit card statement correct every month? </li></ul></ul><ul><li>Responsiveness </li></ul><ul><ul><li>How well does the company react to unusual situations? </li></ul></ul><ul><ul><li>How well is a telephone operator able to respond to a customer’s questions? </li></ul></ul>
  13. 13. Cost of Quality <ul><li>Quality affects all aspects of the organization and has dramatic cost implications </li></ul>External Failure Costs Appraisal Costs <ul><ul><ul><li>Internal Failure Costs </li></ul></ul></ul><ul><ul><ul><li>Prevention Costs </li></ul></ul></ul>Quality Failure Costs Quality Control Costs
  14. 14. Quality Control Costs <ul><li>costs necessary for achieving high quality </li></ul>Costs incurred in the process of preventing poor quality from occurring. Costs incurred in the process of uncovering defects. Prevention Costs Appraisal Costs
  15. 15. Prevention Cost <ul><li>Quality planning costs </li></ul><ul><ul><li>costs of developing and implementing quality management program </li></ul></ul><ul><li>Product-design costs </li></ul><ul><ul><li>costs of designing products with quality characteristics </li></ul></ul><ul><li>Process costs </li></ul><ul><ul><li>costs expended to make sure productive process conforms to quality specifications </li></ul></ul>
  16. 16. Prevention Cost <ul><li>Training costs </li></ul><ul><ul><li>costs of developing and putting on quality training programs for employees and management </li></ul></ul><ul><li>Information costs </li></ul><ul><ul><li>costs of acquiring and maintaining data related to quality, and development of reports on quality performance </li></ul></ul>
  17. 17. Appraisal Cost <ul><li>Inspection and testing </li></ul><ul><ul><li>costs of testing and inspecting materials, parts, and product at various stages and at the end of a process </li></ul></ul><ul><li>Test equipment costs </li></ul><ul><ul><li>costs of maintaining equipment used in testing quality characteristics of products </li></ul></ul><ul><li>Operator costs </li></ul><ul><ul><li>costs of time spent by operators to gar data for testing product quality, to make equipment adjustments to maintain quality, and to stop work to assess quality </li></ul></ul>
  18. 18. Quality Failure Costs <ul><li>cost consequences of poor quality </li></ul>Costs associated with discovering poor product quality before the product reaches the customer. Costs associated with quality problems that occur at the customer site. Internal Failure Costs External Failure Costs
  19. 19. Internal Failure Cost <ul><li>Scrap costs </li></ul><ul><ul><li>costs of poor-quality products that must be discarded, including labor, material, and indirect costs </li></ul></ul><ul><li>Rework costs </li></ul><ul><ul><li>costs of fixing defective products to conform to quality specifications </li></ul></ul><ul><li>Process failure costs </li></ul><ul><ul><li>costs of determining why production process is producing poor-quality products </li></ul></ul>
  20. 20. Internal Failure Cost <ul><li>Process downtime costs </li></ul><ul><ul><li>costs of shutting down productive process to fix problem </li></ul></ul><ul><li>Price-downgrading costs </li></ul><ul><ul><li>costs of discounting poor-quality products—that is, selling products as “seconds” </li></ul></ul>
  21. 21. External Failure Cost <ul><li>Customer complaint costs </li></ul><ul><ul><li>costs of investigating and satisfactorily responding to a customer complaint resulting from a poor-quality product </li></ul></ul><ul><li>Product return costs </li></ul><ul><ul><li>costs of handling and replacing poor-quality products returned by customer </li></ul></ul><ul><li>Warranty claims costs </li></ul><ul><ul><li>costs of complying with product warranties </li></ul></ul>
  22. 22. External Failure Cost <ul><li>Product liability costs </li></ul><ul><ul><li>litigation costs resulting from product liability and customer injury </li></ul></ul><ul><li>Lost sales costs </li></ul><ul><ul><li>costs incurred because customers are dissatisfied with poor quality products and do not make additional purchases </li></ul></ul>
  23. 23. Cost of Quality <ul><li>The earlier defects are found, the less costly they are to correct. </li></ul><ul><li>Example: detecting and correcting defects during product design and product production is considerably less expensive than when the defects are found at the customer site </li></ul>
  24. 24. Cost of Quality
  25. 25. Evolution of Total Quality Management
  26. 26. Quality Gurus Quality Guru Main Contribution Walter A. Shewhart -contributed to understanding of process variability -developed concept of statistical charts W. Edwards Deming -stressed management’s responsibility for quality -developed “14 points” to guide companies in quality improvement Joseph M. Juran -defined quality as “fitness for use” -developed concept of cost quality Armand V. Feigenbaum -introduced concept of total quality control Philip B. Crosby -coined phrase “quality is free” -introduced concept of zero defects Kaoru Ishikawa -developed cause-and-effect diagrams -identified concept “internal customer Genichi Taguchi -focused on product design quality -developed Taguchi loss function
  27. 27. Deming’s 14 Points <ul><li>Create constancy of purpose </li></ul><ul><li>Adopt philosophy of prevention </li></ul><ul><li>Cease mass inspection </li></ul><ul><li>Select a few suppliers based on quality </li></ul><ul><li>Constantly improve system and workers </li></ul><ul><li>Institute worker training </li></ul><ul><li>Instil leadership among supervisors </li></ul><ul><li>Eliminate fear among employees </li></ul><ul><li>Eliminate barriers between departments </li></ul><ul><li>Eliminate slogans </li></ul><ul><li>Remove numerical quotas </li></ul><ul><li>Enhance worker pride </li></ul><ul><li>Institute vigorous training and education programs </li></ul><ul><li>Develop a commitment from top management to implement above 13 points </li></ul>
  28. 28. Total Quality Control Philosophy <ul><li>TQM Focuses on identifying quality problem root causes </li></ul><ul><li>Encompasses the entire organization </li></ul><ul><li>Involves the technical as well as people </li></ul>
  29. 29. Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employee empowerment </li></ul><ul><li>Use of quality tools </li></ul><ul><li>Product design </li></ul><ul><li>Process management </li></ul><ul><li>Managing supplier quality </li></ul><ul><li>Goal is to first identify and then meet customer needs </li></ul><ul><li>TQM recognizes that a perfectly produced product has little value if it is not what the customer wants </li></ul><ul><li>Quality is customer driven. </li></ul>
  30. 30. Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employee empowerment </li></ul><ul><li>Use of quality tools </li></ul><ul><li>Product design </li></ul><ul><li>Process management </li></ul><ul><li>Managing supplier quality </li></ul><ul><li>A philosophy of never-ending improvement </li></ul><ul><li>The Plan–Do–Study–Act Cycle </li></ul><ul><li>Benchmarking </li></ul>
  31. 31. Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employee empowerment </li></ul><ul><li>Use of quality tools </li></ul><ul><li>Product design </li></ul><ul><li>Process management </li></ul><ul><li>Managing supplier quality </li></ul><ul><li>to seek out quality problems and correct them </li></ul><ul><li>Employees are rewarded for uncovering quality problems, not punished </li></ul>
  32. 32. Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employee empowerment </li></ul><ul><li>Use of quality tools </li></ul><ul><li>Product design </li></ul><ul><li>Process management </li></ul><ul><li>Managing supplier quality </li></ul><ul><li>External customers </li></ul><ul><ul><li>those that purchase the company’s goods and services </li></ul></ul><ul><li>Internal customers </li></ul><ul><ul><li>employees of the organization who receive goods or services from others in the company </li></ul></ul>
  33. 33. Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employee empowerment </li></ul><ul><li>Use of quality tools </li></ul><ul><li>Product design </li></ul><ul><li>Process management </li></ul><ul><li>Managing supplier quality </li></ul><ul><li>Team Approach </li></ul><ul><ul><li>Two heads are better than one </li></ul></ul><ul><ul><li>Using techniques such as brainstorming, discussion, and quality control tools, teams work regularly to correct problems. </li></ul></ul><ul><ul><li>The contributions of teams are considered vital to the success of the company. </li></ul></ul>
  34. 34. Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employee empowerment </li></ul><ul><li>Use of quality tools </li></ul><ul><li>Product design </li></ul><ul><li>Process management </li></ul><ul><li>Managing supplier quality </li></ul><ul><li>Quality Circle </li></ul><ul><ul><li>A team of volunteer production employees and their supervisors who meet regularly to solve quality problems. </li></ul></ul>
  35. 35. Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employee empowerment </li></ul><ul><li>Use of quality tools </li></ul><ul><li>Product design </li></ul><ul><li>Process management </li></ul><ul><li>Managing supplier quality </li></ul><ul><li>Employees need to identify and correct quality problems so they need proper training </li></ul><ul><li>They need to understand how to assess quality by using a variety of quality control tools, how to interpret findings, and how to correct problems </li></ul>
  36. 36. Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employee empowerment </li></ul><ul><li>Use of quality tools </li></ul><ul><li>Product design </li></ul><ul><li>Process management </li></ul><ul><li>Managing supplier quality </li></ul><ul><li>Seven Tools of Quality Control </li></ul>
  37. 37. Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employee empowerment </li></ul><ul><li>Use of quality tools </li></ul><ul><li>Product design </li></ul><ul><li>Process management </li></ul><ul><li>Managing supplier quality </li></ul><ul><li>Quality Function Deployment </li></ul><ul><ul><li>A tool used to translate the preferences of the customer into specific technical requirements </li></ul></ul>
  38. 38. Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employee empowerment </li></ul><ul><li>Use of quality tools </li></ul><ul><li>Product design </li></ul><ul><li>Process management </li></ul><ul><li>Managing supplier quality </li></ul><ul><li>QFD encompasses </li></ul><ul><ul><li>Customer requirements </li></ul></ul><ul><ul><li>Competitive evaluation </li></ul></ul><ul><ul><li>Product characteristics </li></ul></ul><ul><ul><li>Relationship matrix </li></ul></ul><ul><ul><li>Trade-off matrix </li></ul></ul><ul><ul><li>Setting Targets </li></ul></ul>
  39. 39. Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employee empowerment </li></ul><ul><li>Use of quality tools </li></ul><ul><li>Product design </li></ul><ul><li>Process management </li></ul><ul><li>Managing supplier quality </li></ul><ul><li>Reliability </li></ul><ul><ul><li>The probability that a product, service, or part will perform as intended. </li></ul></ul><ul><ul><li>No product is 100% certain to function properly </li></ul></ul><ul><ul><li>Reliability is a probability function dependent on sub-parts or components </li></ul></ul>
  40. 40. Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employee empowerment </li></ul><ul><li>Use of quality tools </li></ul><ul><li>Product design </li></ul><ul><li>Process management </li></ul><ul><li>Managing supplier quality </li></ul><ul><li>Reliability </li></ul><ul><ul><li>Reliability of a system is the product of component reliabilities </li></ul></ul><ul><ul><li>RS = (R1) (R2)... (Rn) </li></ul></ul><ul><ul><ul><li>RS = reliability of the product or system </li></ul></ul></ul><ul><ul><ul><li>R1 = reliability of the components </li></ul></ul></ul><ul><ul><li>Increase reliability by placing components in parallel </li></ul></ul>
  41. 41. Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employee empowerment </li></ul><ul><li>Use of quality tools </li></ul><ul><li>Product design </li></ul><ul><li>Process management </li></ul><ul><li>Managing supplier quality </li></ul><ul><li>Reliability </li></ul><ul><ul><li>Parallel components allow system to operate if one or the other fails </li></ul></ul><ul><ul><li>RS = R1 + (R2* Probability of needing 2nd component) </li></ul></ul>
  42. 42. Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employee empowerment </li></ul><ul><li>Use of quality tools </li></ul><ul><li>Product design </li></ul><ul><li>Process management </li></ul><ul><li>Managing supplier quality </li></ul><ul><li>Quality products come from quality sources </li></ul><ul><li>Quality must be built into the process </li></ul>
  43. 43. Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employee empowerment </li></ul><ul><li>Use of quality tools </li></ul><ul><li>Product design </li></ul><ul><li>Process management </li></ul><ul><li>Managing supplier quality </li></ul><ul><li>Quality at the source </li></ul><ul><ul><li>a belief that it is better to uncover source of quality problems and correct it </li></ul></ul><ul><li>TQM extends to quality of product from company’s suppliers </li></ul>
  44. 44. Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employee empowerment </li></ul><ul><li>Use of quality tools </li></ul><ul><li>Product design </li></ul><ul><li>Process management </li></ul><ul><li>Managing supplier quality </li></ul><ul><li>An inspection performed to check the quality of materials that has arrived is viewed as a practice contributing to poor quality and wasted time and cost. </li></ul>
  45. 45. Total Quality Control Philosophy <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employee empowerment </li></ul><ul><li>Use of quality tools </li></ul><ul><li>Product design </li></ul><ul><li>Process management </li></ul><ul><li>Managing supplier quality </li></ul><ul><li>TQM extends the concept of quality to suppliers and ensures that they engage in the same quality practices. </li></ul>
  46. 46. Quality Awards and Standards <ul><li>Philippine Quality Award </li></ul><ul><li>Malcolm Baldrige National Quality Award (MBNQA) </li></ul><ul><li>The Deming Prize </li></ul><ul><li>ISO 9000 Certification </li></ul><ul><li>ISO 14000 Standards </li></ul>
  47. 47. Philippine Quality Award <ul><li>Sets a standard of excellence to help Filipino organizations achieve world-class performance and serves as a “template” for competitiveness based on the principles of Total Quality Management (TQM). </li></ul><ul><li>A national quality award comparable with the Malcolm Baldrige National Quality Award (MBNQA) of the US and those in Europe and Asia. </li></ul>
  48. 48. Malcolm Baldrige National Quality Award (MBNQA) <ul><li>Award named after the former Secretary of Commerce – Regan Administration </li></ul><ul><li>Intended to reward and stimulate quality initiatives </li></ul><ul><li>Given to no more that two companies in each of three categories; manufacturing, service, and small business </li></ul><ul><li>Past winners; Motorola Corp., Xerox, FedEx, 3M, IBM, Ritz-Carlton </li></ul>
  49. 49. The Deming Prize <ul><li>Given by the Union of Japanese Scientists and Engineers since 1951 </li></ul><ul><li>Named after W. Edwards Deming who worked to improve Japanese quality after WWII </li></ul><ul><li>Not open to foreign companies until 1984 </li></ul><ul><li>Florida P & L was first US company winner </li></ul>
  50. 50. ISO 9000 Standards <ul><li>Certification developed by International Organization for Standardization </li></ul><ul><li>Set of internationally recognized quality standards </li></ul><ul><li>Companies are periodically audited & certified </li></ul>
  51. 51. ISO 9000 Standards <ul><li>ISO 9000:2000 QMS </li></ul><ul><ul><li>Fundamentals and Standards </li></ul></ul><ul><ul><ul><li>Provides the terminology and definitions used in the standards. </li></ul></ul></ul><ul><ul><ul><li>It is the starting point for understanding the system of standards. </li></ul></ul></ul><ul><li>ISO 9001:2000 QMS </li></ul><ul><ul><li>Requirements </li></ul></ul><ul><ul><ul><li>This is the standard used for the certification of a firm’s quality management system. </li></ul></ul></ul><ul><ul><ul><li>It is used to demonstrate the conformity of quality management systems to meet customer requirements. </li></ul></ul></ul>
  52. 52. ISO 9000 Standards <ul><li>ISO 9004:2000 QMS </li></ul><ul><ul><li>Guidelines for Performance </li></ul></ul><ul><ul><ul><li>Provides guidelines for establishing a quality management system. </li></ul></ul></ul><ul><ul><ul><li>It focuses not only on meeting customer requirements but also on improving performance. </li></ul></ul></ul><ul><li>More than 40,000 companies have been certified </li></ul>
  53. 53. ISO 14000 Standards <ul><li>Focuses on a company’s environmental responsibility </li></ul>
  54. 54. Why TQM Efforts Fail <ul><li>Lack of a genuine quality culture </li></ul><ul><li>Lack of top management support and commitment </li></ul><ul><li>Over- and under-reliance on statistical process control </li></ul>
  55. 55. TQM Within Operations Management <ul><li>TQM is broad sweeping organizational change </li></ul><ul><li>TQM impacts </li></ul><ul><ul><li>Marketing </li></ul></ul><ul><ul><ul><li>providing key inputs of customer information </li></ul></ul></ul><ul><ul><li>Finance </li></ul></ul><ul><ul><ul><li>evaluating and monitoring financial impact </li></ul></ul></ul><ul><ul><li>Accounting </li></ul></ul><ul><ul><ul><li>provides exact costing </li></ul></ul></ul>
  56. 56. TQM Within Operations Management <ul><ul><li>Engineering </li></ul></ul><ul><ul><ul><li>translate customer requirements into specific engineering terms </li></ul></ul></ul><ul><ul><li>Purchasing </li></ul></ul><ul><ul><ul><li>acquiring materials to support product development </li></ul></ul></ul><ul><ul><li>Human Resources </li></ul></ul><ul><ul><ul><li>hire employees with skills necessary </li></ul></ul></ul><ul><ul><li>Information systems </li></ul></ul><ul><ul><ul><li>increased need for accessible information </li></ul></ul></ul>
  57. 57. Reference <ul><li>www.wiley.com </li></ul><ul><li>Wiley and Sons </li></ul>
  58. 58. The Plan–Do–Study–Act Cycle <ul><li>A diagram that describes the activities that need to be performed to incorporate continuous improvement into the operation. </li></ul><ul><li>Also called the Deming Wheel after originator </li></ul><ul><li>Circular, never ending problem solving process </li></ul>
  59. 59. The Plan–Do–Study–Act Cycle <ul><li>Plan </li></ul><ul><li>Do </li></ul><ul><li>Study </li></ul><ul><li>Act </li></ul><ul><li>Evaluate current process </li></ul><ul><li>Collect procedures, data, identify problems </li></ul><ul><li>Develop an improvement plan, performance objectives </li></ul>
  60. 60. The Plan–Do–Study–Act Cycle <ul><li>Plan </li></ul><ul><li>Do </li></ul><ul><li>Study </li></ul><ul><li>Act </li></ul><ul><li>Implement the plan – trial basis </li></ul>
  61. 61. The Plan–Do–Study–Act Cycle <ul><li>Plan </li></ul><ul><li>Do </li></ul><ul><li>Study </li></ul><ul><li>Act </li></ul><ul><li>Collect data and evaluate against objectives </li></ul>
  62. 62. The Plan–Do–Study–Act Cycle <ul><li>Plan </li></ul><ul><li>Do </li></ul><ul><li>Study </li></ul><ul><li>Act </li></ul><ul><li>Communicate the results from trial </li></ul><ul><li>If successful, implement new process </li></ul>
  63. 63. Benchmarking <ul><li>Studying the business practices of other companies for purposes of comparison </li></ul>
  64. 64. Seven Tools of Quality Control <ul><li>Cause-and-Effect Diagrams </li></ul><ul><li>Flowcharts </li></ul><ul><li>Checklists </li></ul><ul><li>Control Charts </li></ul><ul><li>Scatter Diagrams </li></ul><ul><li>Pareto Analysis </li></ul><ul><li>Histograms </li></ul><ul><li>A chart that identifies potential causes of particular quality problems. </li></ul><ul><li>Cause-and-effect diagrams are problem-solving tools commonly used by quality control teams. </li></ul>
  65. 65. Seven Tools of Quality Control <ul><li>Cause-and-Effect Diagrams </li></ul><ul><li>Flowcharts </li></ul><ul><li>Checklists </li></ul><ul><li>Control Charts </li></ul><ul><li>Scatter Diagrams </li></ul><ul><li>Pareto Analysis </li></ul><ul><li>Histograms </li></ul><ul><li>Specific causes of problems can be explored through brainstorming. </li></ul><ul><li>The development of a cause-and-effect diagram requires the team to think through all the possible causes of poor quality. </li></ul>Quality Problem Out of adjustment Tooling problems Old / worn Machines Faulty testing equipment Incorrect specifications Improper methods Measurement Poor supervision Lack of concentration Inadequate training Human Deficiencies in product design Ineffective quality management Poor process design Process Inaccurate temperature control Dust and Dirt Environment Defective from vendor Not to specifications Material- handling problems Materials
  66. 66. Seven Tools of Quality Control <ul><li>Cause-and-Effect Diagrams </li></ul><ul><li>Flowcharts </li></ul><ul><li>Checklists </li></ul><ul><li>Control Charts </li></ul><ul><li>Scatter Diagrams </li></ul><ul><li>Pareto Analysis </li></ul><ul><li>Histograms </li></ul><ul><li>A schematic of the sequence of steps involved in an operation or process </li></ul><ul><li>It provides a visual tool that is easy to use and understand. </li></ul><ul><li>Often the first step in Process Re-Engineering </li></ul>
  67. 67. Seven Tools of Quality Control <ul><li>Cause-and-Effect Diagrams </li></ul><ul><li>Flowcharts </li></ul><ul><li>Checklists </li></ul><ul><li>Control Charts </li></ul><ul><li>Scatter Diagrams </li></ul><ul><li>Pareto Analysis </li></ul><ul><li>Histograms </li></ul><ul><li>A list of common defects and the number of observed occurrences of these defects. </li></ul><ul><li>A checklist can also be used to focus on other dimensions, such as location or time. </li></ul>
  68. 68. Seven Tools of Quality Control <ul><li>Cause-and-Effect Diagrams </li></ul><ul><li>Flowcharts </li></ul><ul><li>Checklists </li></ul><ul><li>Control Charts </li></ul><ul><li>Scatter Diagrams </li></ul><ul><li>Pareto Analysis </li></ul><ul><li>Histograms </li></ul><ul><li>Charts used to evaluate whether a process is operating within set expectations. </li></ul>
  69. 69. Seven Tools of Quality Control <ul><li>Cause-and-Effect Diagrams </li></ul><ul><li>Flowcharts </li></ul><ul><li>Checklists </li></ul><ul><li>Control Charts </li></ul><ul><li>Scatter Diagrams </li></ul><ul><li>Pareto Analysis </li></ul><ul><li>Histograms </li></ul><ul><li>Graphs that show how two variables are related to each other </li></ul><ul><li>They are particularly useful in detecting the amount of correlation, or the degree of linear relationship, between two variables. </li></ul>
  70. 70. Seven Tools of Quality Control <ul><li>Cause-and-Effect Diagrams </li></ul><ul><li>Flowcharts </li></ul><ul><li>Checklists </li></ul><ul><li>Control Charts </li></ul><ul><li>Scatter Diagrams </li></ul><ul><li>Pareto Analysis </li></ul><ul><li>Histograms </li></ul><ul><li>A technique used to identify quality problems based on their degree of importance. </li></ul><ul><li>Often called the 80-20 Rule </li></ul><ul><li>Principle is that quality problems are the result of only a few problems e.g. 80% of the problems caused by 20% of causes </li></ul>
  71. 71. Seven Tools of Quality Control <ul><li>Cause-and-Effect Diagrams </li></ul><ul><li>Flowcharts </li></ul><ul><li>Checklists </li></ul><ul><li>Control Charts </li></ul><ul><li>Scatter Diagrams </li></ul><ul><li>Pareto Analysis </li></ul><ul><li>Histograms </li></ul><ul><li>A chart that shows the frequency distribution of observed values of a variable </li></ul>
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