Introduction to qm (1)


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Introduction to qm (1)

  1. 1. OM-460: Total Quality ManagementIntroduction to TQMResource PersonHaris Aslam
  2. 2. History of Quality Management• Skilled craftsmanship during Middle Ages• Industrial Revolution: rise of inspection and separate quality departments• Statistical methods at Bell System• Quality control during World War II• Quality management in Japan
  3. 3. History of Quality Assurance• Quality awareness in U.S. manufacturing industry during 1980s: “Total Quality Management”• Malcolm Baldrige National Quality Award (1987)• Development of Quality Standards in Europe• Quality in service industries, government, health care, and education• Current and future challenge: keep progress in quality management alive
  4. 4. Definitions of Quality• Product-based definition: quantities of product attributes• User-based definition: fitness for intended use• Value-based definition: quality vs. price• Manufacturing-based definition: conformance to specifications
  5. 5. Total Quality Management• People-focused management system• Focus on increasing customer satisfaction and reducing costs• A systems approach that integrates organizational functions and the entire supply chain• Stresses learning and adaptation to change• Based on the scientific method
  6. 6. Principles of Total Quality• Customer and stakeholder focus• Participation and teamwork• Process focus and continuous improvement
  7. 7. Continuous Improvement• Enhancing value through new products and services• Reducing errors, defects, waste, and costs• Increasing productivity and effectiveness• Improving responsiveness and cycle time performance
  8. 8. Deming’s View of aProduction System Suppliers of materials and Design and equipment Redesign Consumer Receipt and test research of materials Consumers A B Production, assembly C inspection D Distribution Tests of processes, machines, methods INPUTS PROCESSES OUTPUTS
  9. 9. Learning• The foundation for improvement … Understanding why changes are successful through feedback between practices and results, which leads to new goals and approaches• Learning cycle: – Planning – Execution of plans – Assessment of progress – Revision of plans based on assessment findings
  10. 10. Quality and Profitability Improved quality of Improved quality of design conformance Higher perceived Higher prices Lower value manufacturing and service costs Increased market Increased share revenues Higher profitability
  11. 11. Three Levels of Quality• Organizational level: meeting external customer requirements• Process level: linking external and internal customer requirements• Performer/job level: meeting internal customer requirements
  12. 12. Quality and Personal Values• Personal initiative has a positive impact on business success• Quality begins with personal attitudes• Quality-focused individuals often exceed customer expectations• Attitudes can be changed through awareness and effort (e.g., personal quality checklists)
  13. 13. Quality Guru’s• Dr. Shewhart• W. Edwards Deming• Joseph M. Juran• Philip B. Crosby• Kaoru Ishikawa• Genichi Taguchi
  14. 14. Dr. Shewhart• Dr. Shewhart was the first person to encourage the use of easy-to-use statistics to remove variation – ‘Dr. Walter Shewhart suggested two types of variation: – Common (Chance) Causes • Controlled variation that is present in a process due to the very nature of the process. – Special (Assignable) Causes • Uncontrolled variation caused by something that is not normally part of the process.
  15. 15. Dr. Shewhart• Inventor of Control Charts• Regular plotting of data on an SPC chart will tell if the process is out-of-control (subject to special causes)• Dr. Shewhart originated the PLAN, DO, STUDY, ACT cycle for analysis of problems
  16. 16. Juran’s Quality Trilogy• Managing for Quality – Quality Planning: The process of understanding what the customer needs and designing all aspects of a system to meet those needs reliably. – Quality Control: Used to constantly monitor performance for compliance with the original design standards. • If performance falls short of the standard, plans are put into action to deal quickly with the problem. – Quality Improvement: Occurs when new, previously un-obtained, levels of performance ~ Breakthrough Performance ~ are achieved!
  17. 17. Phillip B. Crosby• Quality is free . . . :• “Quality is free. It’s not a gift, but it is free. What costs money are the unquality things -- all the actions that involve not doing jobs right the first time.”
  18. 18. Philip B. CrosbyAbsolutes of Quality Management:• Quality means conformance to requirements• Problems are functional in nature• There is no optimum level of defects• Cost of quality is the only useful measurement• Zero defects is the only performance standard
  19. 19. Kaoru Ishikawa – Two biggest contributions: Quality circles & Cause & Effect Diagrams – Focused on four areas to influence quality: • Market-in Quality • Worker Involvement • Quality Begins and Ends with Education • Selfless Personal Commitment
  20. 20. Dr. Ishikawa’s Cause and EffectDiagram
  21. 21. Genichi Taguchi• Pioneered a new perspective on quality based on the economic value of being on target and reducing variation and dispelling the traditional view of conformance to specifications: Loss No Loss Loss 0.480 0.500 0.520 Tolerance
  22. 22. Dr. W. Edwards Deming (1900-1993) – The Father of Quality Management – Strongly humanistic philosophy – “Problems in a production process are due to flaws in the design of the system, as opposed to being rooted in the motivation or professional commitment of the workforce”. – Quality is maintained and improved when leaders, managers, and the workforce understand and commit to constant customer satisfaction through continuous quality improvement.
  23. 23. Deming Chain Reaction Improve quality Costs decrease Productivity improves Increase market share with better quality and lower prices Stay in business Provide jobs and more jobs
  24. 24. Deming’s System of Profound Knowledge• Appreciation for a system• Understanding variation• Theory of knowledge• Psychology
  25. 25. Appreciation for a system• Most organizational processes are cross- functional• Parts of a system must work together• Every system must have a purpose• Management must optimize the system as a whole
  26. 26. Variation• Many sources of uncontrollable variation exist in any process• Excessive variation results in product failures, unhappy customers, and unnecessary costs• Statistical methods can be used to identify and quantify variation to help understand it and lead to improvements
  27. 27. Theory of Knowledge• Knowledge is not possible without theory• Experience alone does not establish a theory, it only describes• Theory shows cause-and-effect relationships that can be used for prediction
  28. 28. Psychology• People are motivated intrinsically and extrinsically• Fear is demotivating• Managers should develop pride and joy in work
  29. 29. Criteria for PerformanceExcellence• Leadership• Strategic Planning• Customer and Market Focus• Information and Analysis• Human Resource Focus• Process Management• Business Results
  30. 30. READING MATERIALChapter 1: IntroductionArticle: What does product quality reallymean