Professional Documents
Culture Documents
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Encourages a strategic approach to management at the operational level through involving multiple departments in cross-functional improvements and systemic innovation processes Provides high return on investment through improving efficiency 3. Works equally well for service and manufacturing sectors 4. Allows organizations to take advantage of developments that enable managing operations as cross-functional processes
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Fits an orientation toward inter-organizational collaboration and strategic alliances through establishing a culture of collaboration among different departments within organization
Why TQM?
"Quality is everyone's responsibility." ~ Edward Deming TQM refers to an integrated approach by management to focus all functions and levels of an organization on quality and continuous improvement. Over the years TQM has become very important for improving a firm's process capabilities in order to achieve fit and sustain competitive advantages. TQM focuses on encouraging a continuous flow of incremental improvements from the bottom of the organization's hierarchy. TQM is not a complete solution formula as viewed by many formulas can not solve managerial problems, but a lasting commitment to the process of continuous improvement.
Why Six Sigma Will Outlast Total Quality Management by Peter Peterka
Six Sigma is not just a new term for Total Quality Management (TQM) . They have many similarities and are compatible in many business environments. TQM has brought great improvements and value to many companies. Six Sigma can do more. TQM is the development, deployment, and maintenance of systems related to quality-producing business processes. TQM is a strategic approach that focuses on encouraging a continuous flow of incremental quality improvements. It encourages the establishing of a culture of collaboration among different departments within organization. TQM is mainly a cultural initiative and a style of management toward increased quality. Six Sigma is not just another quality initiative or process improvement program. It is more than that because it is a robust continuous improvement strategy and process that includes cultural methodologies such as the various TQM approaches. Six Sigma is complementary to TQM initiatives such as ISO 9000 registration, which is mainly procedural; Total Quality Management (TQM), which is mainly cultural, and Statistical Process Control (SPC), which is primarily statistical process control monitoring. All of these initiatives attempt to improve quality levels but typically reach a plateau. The Six Sigma approach goes to the next level. Six Sigma is not about quality in the strict traditional sense. Quality, defined traditionally as conformance to internal requirements, is not the focus of Six Sigma. True, Six Sigma focuses on improving quality by helping organizations produce products and services better, faster and cheaper. However, it accomplishes that by reducing waste. In traditional terms, Six Sigma focuses on defect prevention, cycle time reduction, and cost savings. Six Sigma is about helping the organization make more money. Unlike cost-cutting programs that reduce value and quality, Six Sigma identifies and eliminates costs that provide no value to customers: the costs incurred due to waste. The focus of TQM initiatives differs from the focus of Six Sigma programs. One, TQM programs focus on improvement in individual operations with unrelated processes. Six Sigma focuses on making improvements in all operations within a process. Two, Six Sigma involves dedicated, full-time resourcesthe black belts versus TQM, which is usually a part-time activity of non-dedicated managers.
The breadth and depth and the precision of Six Sigma and TQM also differ. Six Sigma has a well-defined project charter that outlines the scope of a project, financial targets, anticipated benefits, milestones, etc. It's based on hard financial data and savings. In TQM, organizations go into a project without fully knowing what the financial gains might be. Six Sigma has a solid control phase (DMAIC Define-Measure-Analyze-ImproveControl) that makes specific measurements, identifies specific problems, and provides specific solutions that can be measured. How else is Six Sigma different? Six Sigma is: * Fact based and data driven * Results-oriented, providing quantifiable and measurable bottom-line results * A leader-sponsored top-down approach * Linked to strategy * Thinking about customer requirements * Applicable to all business processes - administrative, sales, marketing, R&D, etc. Six Sigma is a robust continuous improvement strategy and process that includes cultural methodologies such as Total Quality Management (TQM), process control strategies such as Statistical Process Control (SPC) and other important statistical tools. Six Sigma tools and techniques all are found in total quality management. Six Sigma is the application of the tools on selected important projects at the appropriate time. Six Sigma tools and techniques all are found in TQM. When done correctly, Six Sigma becomes a way toward organization and cultural development. Yet, it is more than a set of tools! Six Sigma is the strategic and systematic application of the tools on targeted important projects at the appropriate time. Because Six Sigma incorporates TQM but goes beyond it, it will outlast TQM. Peter Peterka is President of Six Sigma us. For additional information on Six Sigma Green Belt or other Six Sigma Certification programs contact Peter Peterka.
This lesson will answer those questions. There is a mini-quiz near the end of the lesson.
Users
If the user of the product is different than the purchaser, then both the user and customer must be satisfied, although the person who pays gets priority.
Company philosophy
A company that seeks to satisfy the customer by providing them value for what they buy and the quality they expect will get more repeat business, referral business, and reduced complaints and service expenses. Some top companies not only provide quality products, but they also give extra service to make their customers feel important and valued.
Internal customers
Within a company, a worker provides a product or service to his or her supervisors. If the person has any influence on the wages the worker receives, that person can be thought of as an internal customer. A worker should have the mind-set of satisfying internal customers in order to keep his or her job and to get a raise or promotion.
Chain of customers
Often in a company, there is a chain of customers, -each improving a product and passing it along until it is finally sold to the external customer. Each worker must not only seek to satisfy the immediate internal customer, but he or she must look up the chain to try to satisfy the ultimate customer.
External suppliers
A company must look to satisfy their external suppliers by providing them with clear instructions and requirements and then paying them fairly and on time. It is only in the company's best interest that its suppliers provide it with quality goods or services, if the company hopes to provide quality goods or services to its external customers.
Internal suppliers
A supervisor must try to keep his or her workers happy and productive by providing good task instructions, the tools they need to do their job and good working conditions. The supervisor must also reward the workers with praise and good pay.
Continuous improvement
The third principle of TQM is continuous improvement. You can never be satisfied with the method used, because there always can be improvements. Certainly, the competition is improving, so it is very necessary to strive to keep ahead of the game.
Worker suggestions
Workers are often a source of continuous improvements. They can provide suggestions on how to improve a process and eliminate waste or unnecessary work.
Quality methods
There are also many quality methods, such as just-in-time production, variability reduction, and poka-yoke that can improve processes and reduce waste.
Summary
The principles of Total Quality Management are to seek to satisfy the external customer with quality goods and services, as well as your company internal customers; to satisfy your external and internal suppliers; and to continuously improve processes by working smarter and using special quality methods.
Point 6: Institute modern methods of training and education for all. Modern methods of on-the-job training use control charts to determine whether a worker has been properly trained and is able to perform the job correctly. Statistical methods must be used to discover when training is complete. Point 7: Institute modern methods of supervision. The emphasis of production supervisors must be to help people to do a better job. Improvement of quality will automatically improve productivity. Management must prepare to take immediate action on response from supervisors concerning problems such as inherited defects, lack of maintenance of machines, poor tools or fuzzy operational definitions. Point 8: Fear is a barrier to improvement so drive out fear by encouraging effective two-way communication and other mechanisms that will enable everybody to be part of change, and to belong to it. Fear can often be found at all levels in an organization: fear of change, fear of the fact that it may be necessary to learn a better way of working and fear that their positions might be usurped frequently affect middle and higher management, whilst on the shop-floor, workers can also fear the effects of change on their jobs. Point 9: Break down barriers between departments and staff areas. People in different areas such as research, design, sales, administration and production must work in teams to tackle problems that may be encountered with products or service. Point 10: Eliminate the use of slogans, posters and exhortations for the workforce, demanding zero defects and new levels of productivity without providing methods. Such exhortations only create adversarial relationships. Point 11: Eliminate work standards that prescribe numerical quotas for the workforce and numerical goals for people in management. Substitute aids and helpful leadership.
Point 12: Remove the barriers that rob hourly workers, and people in management, of their right to pride of workmanship. This implies, abolition of the annual merit rating (appraisal of performance) and of management by objectives. Point 13: Institute a vigorous program of education, and encourage self-improvement for everyone. What an organization needs is not just good people; it needs people that are improving with education. Point 14: Top management's permanent commitment to ever-improving quality and productivity must be clearly defined and a management structure created that will continuously take action to follow the preceding 13 points.
company-wide, everybody's
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Company-wide TQC, involving all employees, organization, hardware, and software Emphasis on education and training for top management, middle management and workers Quality control (QC) circle activities by small groups of volunteers TQC audits Application of statistical methods Constant revision and upgrading of standards Nation-wide TQC promotion
Management
Quality assurance
New product development Improvements in the Workplace Cost reduction Safety Productivity improvement Education and training Organizational / systems development Cross-functional management Policy deployment
Quality deployment Supply management Meeting production quotas Meeting delivery schedules Marketing Sales
Suggestion systems involve all employees in continuous efficiency improvement... More Case in Point Kaizen Time at Canon
In some Canon plants, the foremen are told to set aside the half-hour as Kaizen time time to do nothing but thinking improvement in the workshop. The foremen use this period to identify problems and work on Kaizen programs. Factories are advised not to hold meetings during this 30-minute period, and foremen should not even answer the telephone then... More
Staff participation (quality circles, suggestion boxes, improvement proposals), and workshop dynamism... More
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Reduced Setup Times: All setup practices are wasteful because they add no value and they tie up labor and equipment. By organizing procedures, using carts, and training workers to do their own setups, Toyota managed to slash setup times from months to hours and sometimes even minutes. Small-Lot Production: Producing things in large batches results in huge setup costs, high capital cost of high-speed dedicated machinery, larger inventories, extended lead times, and larger defect costs. Because Toyota has found the way to make setups short and inexpensive, it became possible for them to economically produce a variety of things in small quantities. 3. Employee Involvement and Empowerment: Toyota organized their workers by forming team and gave them the responsibility and training to do many specialized tasks. Teams are also given responsibility for housekeeping and minor equipment repair. Each team has a leader who also works as one of them on the line. 4. Quality at the Source: To eliminate product defects, they must be discovered and corrected as soon as possible. Since workers are at the best position to discover a defect and to immediately fix it, they are assigned this responsibility. If a defect cannot be readily fixed, any worker can halt the entire line by pulling a cord (called Jidoka). 5. Equipment Maintenance: Toyota operators are assigned primary responsibility for basic maintenance since they are in the best position to defect signs of malfunctions. Maintenance specialists diagnose and fix only complex problems, improve the performance of equipment, and train workers in maintenance. 6. Pull Production: To reduce inventory holding costs and lead times, Toyota developed the pull production method wherein the quantity of work performed at each stage of the process is dictated solely by demand for materials from the immediate next stage. The Kamban scheme coordinates the flow of small containers of materials between stages. This is where the term Just-in-Time (JIT) originated. 7. Supplier Involvement: Toyota treats its suppliers as partners, as integral elements of Toyota Production System (TPS). Suppliers are trained in ways to reduce setup times, inventories, defects, machine breakdowns etc., and take responsibility to deliver their best possible parts.
The Toyota Way is not the Toyota Production System (TPS) . The 14 Principles of the Toyota Way is a management philosophy used by the Toyota corporation that includes TPS, also known as lean manufacturing. TPS is the most systematic and highly developed example of what the principles of the Toyota Way can accomplish. The Toyota Way consists of the foundational principles of the Toyota culture, which allows the TPS to function so effectively.
II. The right process will produce the right results 2. 3. Create a continuous process flow to bring problems to the surface Use "pull" systems to avoid overproduction Level out the workload (heijunka). (Work like the tortoise, not the hare) Build a culture of stopping to fix problems, to get quality right the first time
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Standardized tasks and processes are the foundation for continuous improvement and employee empowerment Use visual control so no problems are hidden Use only reliable, thoroughly tested technology that serves your people and processes
III. Add value to the organization by developing its people and partners
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Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others Develop exceptional people and teams who follow your company's philosophy Respect your extended network of partners and suppliers by challenging them and helping them improve
Go and see for yourself to thoroughly understand the situation (Genchi Genbutsu).
Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly (Nemawashi). Become a learning organization through relentless reflection (hansei) and continuous improvement (Kaizen).
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Customer services and customers relations 10. Others According to the Japan Human Relations Association, most of the suggestions that have economic impact come from groups, while individual-based suggestions serve as morale boosters and educational experiences.
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Kaizen Mindset
The Three Basic Structures of CPS
1. Quality Assurance (QA) System. Canon tries to ensure the best quality in all stages of development, production, and delivery to gain worldwide respect for their products. 2. Production Assurance (PA) System. PA is aimed to achieve just-in-time manufacturing, fast delivery, low cost, and also adopt the "visual control" philosophy. Canon has devised two subsystems to attain these PA goals: Canon's HIT System (equivalent to just-in-time) and Signal System. The HIT System means making parts and products only when needed and only in the quantity needed. Canon uses either HIT cards or signals for this purpose. 3. Personnel Training (PS) System. Under this system, Canon's employees are continually educated through a life-long education program. The other critical instruments for realizing CPS objectives are the "four investments" (technologies, human resources, facilities, and welfare) and "elimination of 9 wastes."
A Model Workshop
At Canon, a Model Workshop means a workshop where: Performance is continually improving
CPS Notebook
Manpower development efforts are continually made There is always Kaizen for reducing wastes. Individual roles and goals are clearly defined The agreed-upon rules are strictly obeyed What is going on in the workshop is readily visible and understandable
Each Canon employee receives a 55-page pocket-size CPS Notebook that explains the CPS, how to get Kaizen targets, and the award system. These CPS Notebooks also have special pages entitled "My Self-Development Goals Method, Tools, and Investment" to be filled in by the worker.
Award System
Canon employees are offering around 50 improvement ideas per year per employee. Canon provides awards for individuals, small groups and workshop units. These awards are intended to show management's appreciation for the efforts and the results. A unique feature of Canon's suggestion system is the lifetime cumulative award system. Each suggestion is given a certain number of points, and every year President's Awards are given to the 20 people who have accumulated the most points since the system's inception. Each recipient receives a certain amount of money and a gold medal. Since this can get a bit repetitious, there are also Presidential Awards for the most points in a given year, the top 30 people receiving a smaller amount of money and silver medals. The list of Annual Awards provided at Canon includes: Model Workshop Award, Runner-up Model Workshop Award, Award for Eliminating 9 Wastes, CPS Performance Award, Excellent Small-Group Activities Award, Cumulative-Point Presidential Award, Annual-Points Presidential Award, Special Presidential Award. Canon gives also Gold, Silver, and Special awards to their suppliers that have built promising systems for Quality, Cost, and Delivery.
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Kaizen
Where there is no problem, there can be no improvement. Let's turn the Plan Do Check Action (PDCA) wheel and change the way we do our job. There is more to be learned from chronic problems than from problems that suddenly occur. Rework and adjustments are problems arising from from the lack of of management. dealing with them is not management
but manipulation. 6
Look at the factory and manage your work on the basis of facts
Base judgments on data. Do not rely on hunches or gut feelings. The priority lies in reducing the deviation rather than improving the average. Classification leads to better understanding. Become accustomed to classifying problems into those that are your own responsibility and those that are others' responsibilities, and taking care of your own problems first. Do not confuse symptoms with causes Quality must be built into the process. Testing does not make quality. We need devices to make sure that a good state lasts. Individual expertise should be extended to company-wide expertise A pleasant, meaningful workshop starts with active quality control circles (QCCs) for mutual enlightenment and selfdevelopment.
Be attentive to deviations
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