2. LEARNING OBJECTIVES:
Define quality and TQM
Describe the ISO international quality
standards
Explain Six Sigma
Explain how benchmarking is used in TQM
Explain quality robust products and Taguchi
concepts
Use the seven tools of TQM
3. Total - made up of the whole
Quality - degree of excellence a product or
service provides
Management - act, art or manner of planning,
controlling, directing,….
Therefore, TQM is the art of managing the
whole to achieve excellence.
4. QUALITY
Improvements in quality help firms increase
sales and reduce costs, both of which can
increase profitability.
Source: Heizer
5. QUALITY
Lack of quality, affects the entire organization from
supplier to customer and from product design to
maintenance.
A successful quality strategy begins with an
organizational culture that fosters quality, followed by
an understanding of the principles of quality, and then
engaging employees in the necessary activities to
implement quality.
The ultimate goal is to win customers
Source: Heizer
7. The Concept of TQM
• Produce quality work the first time.
• Focus on the customer.
• Have a strategic approach to improvement.
• Improve continuously.
• Encourage mutual respect and teamwork.
8. Characteristics of TQM
Committed management.
Adopting and communicating about total
quality management.
Closer customer relations.
Closer provider relations.
Benchmarking.
Increased training.
Open organization Employee
empowerment. Flexible production.
Process improvements. Process measuring
9.
10. The three aspects of TQM
Counting- Tools, techniques, and training in
their use for analyzing, understanding, and
solving quality problems
Customers- Quality for the customer as a
driving force and central concern.
Culture- Shared values and beliefs,
expressed by leaders, that define and support
quality.
11. Principles of tqm
1. Produce quality work the first time and
every time.
2. Focus on the customer.
3. Have a strategic approach to improvement.
4. Improve continuously.
5. Encourage mutual respect and teamwork
12. The key elements of the TQM
Focus on the customer.
Employee involvement
Continuous improvement
26. Costs of Quality
Source: Heizer
Cost of quality (COQ) – The cost of doing things
wrong—that is, the price of nonconformance.
1) Prevention costs: costs associated with reducing the potential for
defective parts or services (e.g., training, quality improvement programs).
2) Appraisal costs: costs related to evaluating products, processes, parts,
and services (e.g., testing, labs, inspectors).
3) Internal failure costs: costs that result from production of defective
parts or services before delivery to customers (e.g., rework, scrap,
downtime).
4) External failure costs: costs that occur after delivery of defective parts
or services (e.g., rework, returned goods, liabilities, lost goodwill, costs to
society).
27. Costs of Quality
Source: Heizer
The first three costs can be reasonably estimated,
but external costs are very hard to quantify.
28. TOTAL QUALITY MANAGEMENT
Source: Heizer
Encompasses entire organization, from supplier to
customer. Stresses a commitment by management
to have a continuing, companywide drive toward
excellence in all aspects of products and services
that are important to the customer.
29. Quality expert W. Edwards Deming used 14
points (see Table 6.2 ) to indicate how he
implemented TQM
Source: Heizer
30. 7 CONCEPTS OF TOTAL QUALITY
MANAGEMENT PROGRAM
Source: Heizer
31. 7 CONCEPTS OF TOTAL QUALITY
MANAGEMENT PROGRAM
CONTINUOUS IMPROVEMENT
Represents continual improvement of all processes
Involves all operations and work centers including
suppliers and customers
People, Equipment, Materials, Procedures
Source: Heizer
32. 7 CONCEPTS OF TOTAL QUALITY
MANAGEMENT PROGRAM
CONTINUOUS IMPROVEMENT
Walter Shewhart, another pioneer in quality
management, developed a circular model known as
PDCA (plan, do, check, act) as his version of
continuous improvement.
The PDCA cycle (also called a Deming circle or a
Shewhart circle)
Source: Heizer
33. 7 CONCEPTS OF TOTAL QUALITY
MANAGEMENT PROGRAM
CONTINUOUS IMPROVEMENT
THE PDCA CYCLE
Source: Heizer
34. 7 CONCEPTS OF TOTAL QUALITY
MANAGEMENT PROGRAM
SIX SIGMA
Originally developed by Motorola, Six Sigma refers to
an extremely high measure of process capability
A Six Sigma capable process will return no more than
3.4 defects per million operations (DPMO)
Highly structured approach to process improvement
Source: Heizer
35. 7 CONCEPTS OF TOTAL QUALITY
MANAGEMENT PROGRAM
SIX SIGMA
Six Sigma is a comprehensive system— a strategy, a discipline, and
a set of tools—for achieving and sustaining business success:
1) It is a strategy because it focuses on total customer satisfaction.
2) It is a discipline because it follows the formal Six Sigma
Improvement Model known as DMAIC .
3) It is a set of seven tools: check sheets, scatter diagrams, cause-
and-effect diagrams, Pareto charts, flowcharts, histograms, and
statistical process control.
Source: Heizer
36. 7 CONCEPTS OF TOTAL QUALITY
MANAGEMENT PROGRAM
SIX SIGMA
Source: Heizer
37. 7 CONCEPTS OF TOTAL QUALITY
MANAGEMENT PROGRAM
EMPLOYEE EMPOWERMENT
Employee empowerment – Enlarging employee jobs
so that the added responsibility and authority is
moved to the lowest level possible in the organization.
Getting employees involved in product and process
improvements
• 85% of quality problems are due to process and
material
Source: Heizer
38. 7 CONCEPTS OF TOTAL QUALITY
MANAGEMENT PROGRAM
BENCHMARKING
Benchmarking – Selecting a demonstrated standard of
performance that represents the very best performance for
a process or an activity.
The steps for developing benchmarks are:
1. Determine what to benchmark.
2. Form a benchmark team.
3. Identify benchmarking partners.
4. Collect and analyze benchmarking information.
5. Take action to match or exceed the benchmark.
Source: Heizer
39. 7 CONCEPTS OF TOTAL QUALITY
MANAGEMENT PROGRAM
JUST-IN-TIME (JIT)
The philosophy behind just-in-time (JIT) is one of
continuing improvement and enforced problem
solving.
JIT systems are designed to produce or deliver goods
just as they are needed.
JIT is related to quality in three ways:
Source: Heizer
40. 7 CONCEPTS OF TOTAL QUALITY
MANAGEMENT PROGRAM
JUST-IN-TIME (JIT)
JIT cuts the cost of quality: This occurs because scrap,
rework, inventory investment, and damage costs are directly
related to inventory on hand
JIT improves quality: As JIT shrinks lead time, it keeps
evidence of errors fresh and limits the number of potential
sources of error
Better quality means less inventory and a better, easier-to-
employ JIT system: Often the purpose of keeping inventory is
to protect against poor production performance resulting from
unreliable quality.
Source: Heizer
41. 7 CONCEPTS OF TOTAL QUALITY
MANAGEMENT PROGRAM
JUST-IN-TIME (JIT)
Source: Heizer
42. 7 CONCEPTS OF TOTAL QUALITY
MANAGEMENT PROGRAM
TAGUCHI CONCEPT
Most quality problems are the result of poor product
and process design.
Genichi Taguchi has provided us with three concepts
aimed at improving both product and process quality:
quality robustness , target-oriented quality, and
the quality loss function .
Source: Heizer
43. 7 CONCEPTS OF TOTAL QUALITY
MANAGEMENT PROGRAM
TAGUCHI CONCEPT
Quality robust products are products that can be
produced uniformly and consistently in adverse
manufacturing and environmental conditions.
Taguchi’s idea is to remove the effects of adverse
conditions instead of removing the causes.
Source: Heizer
44. 7 CONCEPTS OF TOTAL QUALITY
MANAGEMENT PROGRAM
TAGUCHI CONCEPT
Source: Heizer
45. 7 CONCEPTS OF TOTAL QUALITY
MANAGEMENT PROGRAM
TAGUCHI CONCEPT
Target-oriented quality – A philosophy of continuous
improvement to bring a product exactly on target.
Quality loss function (QLF) – A mathematical
function that identifies all costs connected with poor
quality and shows how these costs increase as output
moves away from the target value.
Source: Heizer
46. KNOWLEDGE OF TQM TOOLS
To empower employees and implement TQM as a continuing effort,
everyone in the organization must be trained in the techniques of TQM.
Tools for Generating Ideas
• Check sheets
• Scatter diagrams
• Cause and effect diagrams
Tools to Organize the Data
• Pareto charts
• Flow charts
Tools for Identifying Problems
• Histogram
• Statistical process control chart
Source: Heizer
47. KNOWLEDGE OF TQM TOOLS
Tools for Generating Ideas
Check sheets
Scatter diagrams
Source: Heizer
Cause and effect diagrams
48. KNOWLEDGE OF TQM TOOLS
Tools for Organizing Data
Pareto Chart
Source: Heizer
Flow Charts (Process diagram)
49. KNOWLEDGE OF TQM TOOLS
Tools for Organizing data
Pareto Chart
The Hard Rock Hotel in Bali
has just collected the data
from 75 complaint calls to
the general manager during
the month of October. The
manager wants to prepare
an analysis of the
complaints. The data
provided are room service,
54; check-in delays, 12;
hours the pool is open, 4;
minibar prices, 3; and
miscellaneous, 2.
Source: Heizer
50. KNOWLEDGE OF TQM TOOLS
Tools for Identifying Problems
Histogram
Source: Heizer
Statistical Process Control Chart
