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tqm report

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Aireen Michelle Fordaliza

on 7 April 2013

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Transcript of tqm report

Total Quality Management Reported by: April Madarang & Aireen Michelle Fordaliza ACCOUNTING which must measure and estimate the costs of poor quality and provide error-free data to its internal customers FINANCE which must assess the cash flow implications of TQM programs and provide defect-free financial reports to its internal customers HUMAN RESOURCES which recruits employees who value quality work and motivates and trains them MANAGEMENT INFORMATION SYSTEMS which designs the systems for tracking productivity and quality performance MARKETING which uses quality and performance data for promotional purposes OPERATIONS which designs and implements TQM programs IMPORTANCE OF T Q M T
L made up of the whole (or) complete Q
Y degree of excellence a product or service provides to the customer in present and futurE M
T act, art or manner of handling, controlling, directing, etc. TQM is the art of managing the whole to achieve excellence "TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society." TQM requires that the company maintain this quality standard in all aspects of its business. This requires ensuring that things are done right the first time and that defects and waste are eliminated from operations. What is QUALITY? Quality may be defined as meeting or exceeding the expectations of the customer. Customer
Satisfaction Process
Design Purchasing Benchmarking Problem-Solving
Tools Product/Service
Design Employee
Involvement Continuous
Improvement TQM
WHEEL Customer-Driven
Definition of Conformance to
Specifications Customers expect the products or services they buy to meet or exceed certain advertised levels of performance. Value How well the product or service serves its intended purpose or at a price customers are willing to pay. Support Product or service support provided by the company is as important to customers as the quality of the product or service itself. Psychological
Impressions Atmosphere, image, or aesthetics, the provision of services, where the customer is in close contact with the provider. Fitness
for Use How well the product or service performs its intended purpose, the customer may consider the mechanical features of a product or the convenience of a service. ASPECTS Appearance Style Durability Reliability Craftmanship Serviceability EMPLOYEE INVOLVEMENT Aspects: Cultural Change To instill an awareness of the importance of quality in all employees and to motivate them to improve product quality. are employees in the firm who rely on the output of other employees. are the people or firms who buy the product or service. Individual Development On-the-job training programs can help improve quality. Teaching new work methods to experienced workers or training new employees in current practices can increase productivity and reduce the number of defects. Awards & Incentives The prospect of merit pay and bonuses can give employees some incentive for improving quality. Nonmonetary awards, such as recognition in front of co-worker, also can motivate quality improvements. The philosophy of continually seeking ways to improve operations. in the methods of statistical process
control (SPC) and other tools for improving Train employees quality and performance. methods a Make SPC normal aspect of daily operations. Build work teams and employee involvement. Utilize problem-solving tools within the work teams. sense of Develop a operator ownership in the process. Problem-Solving Process Deming Wheel:
PDCA Cycle The idea of CONTINUOUS IMPROVEMENT is to reduce or eliminate activities that don’t add value and thus are wasteful. The Costs of
Poor Quality Prevention
Costs Appraisal
Costs Internal
Costs External
Costs Are associated with preventing defects before they happen. Are incurred in assessing the level of quality attained by the operating system. Result from defects that are discovered during the production of a product or service. Arise when a defect is discovered after the customer has received the product or service. Planning Quality Costs costs of developing and implementing quality management program Product-Design
Costs costs of designing products with quality characteristics ProcessCosts costs expended to make sure productive process conforms to quality specifications Training Costs costs of developing and putting on quality training programs for employees and management Information Costs costs of acquiring and maintaining data related to quality, and development and analysis of reports on quality performance Inspection and
Testing costs of testing and inspecting materials, parts, and product at various stages and at end of process Test Equipment
Costs costs of maintaining equipment used in testing quality characteristics of products Operator
Costs costs of time spent by operators to gather data for testing product quality, to make equipment adjustments to maintain quality, and to stop work to assess quality 2 Major Categories: YIELD LOSSES, which are incurred if a defective item must be scrapped. REWORK COSTS, which are incurred if the item is rerouted to some previous operation(s) to correct the defect or if the service must be performed again. Scrap Costs costs of poor-quality products that must be discarded, including labor, material, and indirect costs Process Failure Costs costs of determining why production process is producing poor-quality products Process
Downtime Costs costs of shutting down productive process to fix problem Price-Downgrading Costs costs of discounting poor-quality products—that is, selling products as “seconds” Customer
Complaint Costs costs of investigating and satisfactorily responding to a customer complaint resulting from a poor-quality product Product
Return Costs costs of handling and replacing poor-quality products returned by customer Warranty
Claims Costs costs of complying with product warranties Product
Liability Costs litigation costs resulting from product liability and customer injury Lost Sales
Costs costs incurred because customers are dissatisfied with poor-quality products and do not make additional purchases Improving Quality through TQM Benchmarking Product & Service
Design Process
Design Purchasing BENCHMARKING A continuous, systematic procedure that measures a firm’s products, services, and processes against those of industry leaders. Identify the product, service, or process to be benchmarked and the firm(s) to be used for comparison, determine the measures of performance for analysis, and collect the data. PLANNING Determine the gap between the firm’s current performance and that of the benchmark firm(s) and identify the causes of significant gaps. ANALYSIS Establish goals and obtain the support of managers who must provide the resources for accomplishing the goals INTEGRATION Develop cross-functional teams of those most affected by the changes, develop actions plans and team assignments, implement the plans, monitor progress, and recalibrate benchmarks as improvements are made. ACTION Based on comparisons with a direct industry competitor. Competitive
Benchmarking Compares areas such as administration, customer service, sales operations with those of outstanding function in any industry. Functional
Benchmarking Involves using an organizational unit with superior performance as the benchmark for other units. Internal
Benchmarking Product & Service Design Measure of reliability that is based on the assumption that the reliability of each component or subsystem is independent of the others. rs = (r1)(r2) … (rn) Where:
rs = reliability of the complete product
n = number of subsystems
rn = reliability of the subsystem or component n 0.99 = reliability of the motherboard
0.95 = reliability of housing assembly
0.90 = reliability of the headphone Small portable radio design: rs = (0.99)(0.95)(0.90) rs = 0.85 Process Design The design of the process used to produce a product or service greatly affects the quality. One of the keys obtaining high quality is concurrent engineering, in which operations managers and designers work closely together in the initial phase of product or service design to ensure that production requirements and process capabilities are synchronized. Quality
Development A means of translating customer requirements into the appropriate technical requirements for each stage of product or service development and production. What do our customers need and want? Voice of the
Customer In terms of our customers, how well are we doing relative to our competitors? Competitive
Analysis What technical measures relate to our customers’ needs? Voice of the
ENGINEER What are the relationships between the voice of the customer and the voice of the engineer? Correlations How does our product or service performance compare to that of our competition? Technical
Comparison What are the potential technical trade-offs? Trade-Offs Purchasing
Considerations Both the buyer’s approach and specification management are keys to controlling supplier quality. The firm’s buyer must emphasize not only the cost and speed of delivery of the supplier, but also the quality of the product. The specifications for purchased parts and materials must be clear and realistic. Purchasing
Considerations Management needs to allow sufficient time for the purchasing department to identify several low-cost, qualified suppliers and to analyze the information they submit. IMPROVING QUALITY through T Q M Tools for Improving Quality & Performance Checklists Histograms Bar Chart Pareto Chart Scatter
Diagram Cause-and-Effect Diagram Line Graphs Flow Chart Control Chart A form used to record frequency of occurrence of certain product or service characteristics related to quality. Summarizes data measured on a continuous scale, showing frequency distribution of some quality characteristic. A series of bars representing the frequency of occurrence of data characteristics measured on a yes-or-no basis. Proposed by Vilfredo Pareto,
a 19th-century Italian scientist. A bar chart on which the factors are plotted in decreasing order of frequency along the horizontal axis. 80-20 rule, is that 80% of the activity is caused by 20% of the factors. By concentrating on the 20% of the factors (the “vital few”), managers can attack 80% of the quality problems. Pareto’s Concept A plot of two variables showing whether they are related, can be used to verify or negate the suspicion. Relates a key quality problem to its potential causes. First developed by Kaoru Ishikawa, the diagram helps management trace customer complaints directly to the operations involved. Sometimes called a fishbone diagram.
Head >> main quality problem
Bones >> major categories of potential causes
Ribs >> specific causes Represent data sequentially with data points connected by line segments to highlight trends in the data. Represents quality factors as slices of the pie. Pie Chart Helps focus on location of problem in a process A diagram of the steps in a process A chart with statistical upper and lower limits
If sample statistics remain between these limits we assume the process is in control Data Snooping Managers often act as detectives, sifting data to clarify the issues involved and deducing the causes. Malcolm
Award Created in 1987 to stimulate growth of quality management in United States Leadership system, values, expectations, and public responsibilities. Leadership The effectiveness of strategic and business planning and deployment of plans, focusing on performance requirements. Strategic
Planning How the company determines customer and market requirements and achieves customer satisfaction. Customer and
Market Focus The effectiveness of information systems to support customer-driven performance excellence and marketplace success. Information
Analysis The success of efforts to realize the full potential of the work force to create a high-performance organization. Human Resource Focus The effectiveness of systems and processes for assuming the quality of products and services. Process
Management Performance results and competitive benchmarking in customer satisfaction, financials, human resources, suppliers and operations. Business
Results European Quality Award
Canadian Quality Award
Australian Business Excellence Award
Deming Prize from Japan International Awards Edwards Medal
Shewhart Medal
Ishikawa Medal National Individual Awards Armand V. Feigenbaum Medal
Deming Medal
E. Jack Lancaster Medal ISO 9000:2008 ISO 9001:2008 ISO 9004:2008 International
Standards Quality Management Systems—Fundamentals and Vocabulary defines fundamental terms and definitions used in ISO 9000 family
Management Systems—Requirements standard to assess ability to achieve customer satisfaction Quality Management Systems—Guidelines for Performance Improvements Quality Management Systems—Guidelines for Performance Improvements The ISO 14000 An Environmental Management System Requires a plan to improve performance in resource use and pollutant output. Environmental Management System Specifies guidelines for the certification of companies. Environmental Performance Evaluation Defines terms such as recyclable, energy efficient, and safe for the ozone layer. Environmental Labeling Evaluates the lifetime environmental impact from the manufacture, use, and disposal of a product. Life-cycle Assessment Stresses 3
Principles: T Q M A customer-driven focus Employee Involvement Continuous Improvements in Quality QUALITY SIX
Categories THANK YOU! http://prezi.com/lp_atcw3zhhe/tqm-report/?kw=view-lp_atcw3zhhe&rc=ref-30335165 Source: Foundations of Operations Management by: Larry Ritzman, et. al
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