Professional Documents
Culture Documents
Management
Managing Quality
Chapter 12
♦ TQM IN SERVICES
♦ Employee
Fulfillment
♦ Customer
Satisfaction
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12-7
FPP
1. Organizational
Practices
♦ Leadership
♦ Mission statement
♦ Effective operating procedure
♦ Staff support
♦ Training
Yields: What is important and what is to be
accomplished
♦ Customer focus
♦ Continuous improvement
♦ Employee empowerment
♦ Benchmarking
♦ Just-in-time
♦ Tools of TQM
Yields: How to do what is important and to
be accomplished
Tangibles Competence
Under- Access
standing
Security Courtesy
© 1995 Corel Corp.
Credibility Communication
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FPP
Importance of Quality
♦ Costs &
market share Market Gains
♦ Company’s Reputation
reputation Volume
♦ Product Price
liability Improved Increased
Quality Profits
♦ International
Lower Costs
implications
Productivity
Rework/Scrap
Warranty
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FPP
Malcom Baldrige
National Quality Award
♦ Established in 1988 by the U.S. government
♦ Designed to promote TQM practices
♦ Some criteria
♦ Senior executive leadership; Strategic planning;
Customer & Market focus; Information analysis;
Human Resource focus; Process management;
♦ Business results; customer satisfaction
♦ Recent winners
♦ Motorola, Xerox, Federal Express, Texas
Instruments.
Prepared by: Shatina Saad @ OPM 533
12-16
FPP
Costs of Quality
♦ Prevention costs - reducing the potential for
defects
♦ Appraisal costs - evaluating products
♦ Internal failure - of producing defective parts
or service
♦ External costs - occur after delivery
FPP
International Quality
Standards
♦ Industrial Standard Z8101-1981 (Japan)
♦ Specification for TQM
♦ ISO 9000 series (Europe/EC)
♦ Common quality standards for products sold
in Europe (even if made in U.S.)
♦ ISO 14000 series (Europe/EC)
♦ Standards for recycling, labeling etc.
♦ ASQC Q90 series; MILSTD (U.S.)
Advantages:
♦ Positive public image & reduced exposure to liability
♦ Good systematic approach to pollution prevention
♦ Compliance with regulatory requirements
♦ Reduction in need of multiple audits
Defines Plans
Quality Quality
t y i s i ve n!
u a li r dr
Q e Monitors
u s tom
c Quality
Prepared by: Shatina Saad @ OPM 533
12-20
FPP
TQM
Encompasses entire organization, from
supplier to customer
Stresses a commitment by management to
have a continuing, company-wide, drive
toward excellence in all aspects of
products and services that are important
to the customer.
Employee Attitudes
Fulfillmen (e.g.,
t Commitment)
Quality How to Do
Principle
s What to Do
Organizationa
l Practices
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Deming’s Fourteen
Points
1. Create consistency of purpose
2. Lead to promote change
3. Build quality into the products
4. Build long term relationships
5. Continuously improve product, quality,
and service
6. Start training
7. Emphasize leadership
1. Continuous improvement
2. Employee empowerment
3. Benchmarking
4. Just-in-time (JIT)
5. Taguchi concepts
6. Knowledge of TQM tools
4 1.Plan
Implem
.Act Identify the
ent the improvement
plan and make a
plan
3.Che 2.Do
Is the Test the
ck
plan plan
workin
g
Unreliabl Capacity
Scrap
e Vendors Imbalanc
es
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FPP
Just-In-Time (JIT)
Example
Reducing inventory
reveals
problems so they can
be solved.
Unreliable Capacity
Scrap
Vendors Imbalance
s
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5. Taguchi Techniques
♦ Experimental design methods to
improve product & process design
♦ Identify key component & process variables
affecting product variation
♦ Taguchi Concepts
a) Quality robustness
b) Quality loss function
c) Target specifications
products uniformly
regardless of
manufacturing
conditions
♦ Put robustness in
House of Quality
(QFD) matrices
besides functionality
© 1984-1994 T/Maker Co.
♦ Equation: L = D2C
♦ L = Loss ($); D = Deviation; C = Cost
FPP
c) Target Specification
Example
A study found U.S. consumers preferred
Sony TV’s made in Japan to those made in
the U.S. Both factories used the same
designs & specifications. The difference in
quality goals made the difference in
Freq. consumer preferences.
Japanese factory
(Target-oriented)
U.S. factory
(Conformance-
X oriented)
LSL Target USL
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FPP
6. Tools of TQM
♦ Tools for generating ideas
♦ Check sheet
♦ Scatter diagram
♦ Cause and effect diagram
♦ Tools to organize data
♦ Pareto charts
♦ Process charts (Flow diagrams)
♦ Tools for identifying problems
♦ Histograms
♦ Statistical process control chart
Drill Tired
Overtime
Slow Too many
defects
Wood Old
Steel Lathe
Material Machinery
Create
Find Out Why
Control Chart
60 Value
UCL
40
Average
20 LCL
0
1 5 9 13 17 21
Time
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FPP
Patterns to Look for in
Control Charts
Security Courtesy
© 1995 Corel Corp.
Credibility Communication