MOS 330: Operations Management Professor Burjaw Fall/Winter 2009-10 3.5 Total Quality Management 13.5 TQM.

MOS 330: Operations ManagementProfessor Burjaw

Fall/Winter 2009-10

3.5 Total Quality Management

13.5 TQM

Learning Objectives:

1. What is TQM

2. Quality evolution and quality gurus

3. Similarities/differences to other concepts

4. Implementation issues

5. Six sigma quality program

6. Quality awards

7. ISO

23.5 TQM

1. What is TQM?

An organization-wide effort to achieve quality in processes and product based on a set of guiding principles:

1) Customer focus Anticipate customer needs & expectations and obtain feedback

2) Continual improvement Constantly seek to improve processes, products, productivity,

effectiveness, responsiveness, etc

3) Total participation and teamwork Workers are inspectors: provide training, authority, rewards Cross-functional, process improvement teams Top management commitment Supplier relationship

33.5 TQM

1.1 Stages of QM1) Quality Inspection

2) Quality Control

Obtain management support

Choose a SPC leader

Select a process for pilot study

Provide SPC training

Construct control charts

3) Quality AssuranceProject-by-projectProcess-by-process

4) TQMCompany-wide

Continual improvement

Cross-functional

Customerfocus

Empowered workersMgmt. commitment

43.5 TQM

1.2 Quality Evolution

IndustrialRevolution/early 1900s

1920s-1950s

1960s-1970s

1980s topresent

Qualityinspection

Qualitycontrol

Qualityassurance

TQM

Process improvementStatistical methodsShewhart

Deming, Juran,CrosbyISO, JIT, Oil Crisis,Foreign competition

FeigenbaumIshikawa

Organizational focusCustomer driven qualityMore choices and infoHigher expectationsAffordable quality

Management philosophyContinual improvementCost of qualityZero defects

Events/People Ideas

53.5 TQM

1.3 Quality Gurus

Shewhart Promoted SPC, Shewhart Cycle

Deming Deming Wheel, 14-point quality management philosophy, promoted quality management in Japan Deming Prize

JuranQuality Control Handbook, quality trilogy (planning, control and improvement), cost of quality

Crosby Cost of poor quality, zero defects, Quality is Free

Feigenbaum, Ishikawa (cause-and-effect diagram) Total quality control, company-wide commitment

63.5 TQM

1.4 TQM vs. JIT

Customer focus JIT: to achieve good forecast of customer demand

Continuous improvement (“kaizen”) JIT: require high quality products; undercapacity scheduling

Total participation and teamwork JIT: well-trained, multifunctional, empowered employees; group problem solving

TQM

JIT

Reco

gniti

on in

Japa

n

1950 1960 1970 1980 1990

TQM

JIT

Reco

gniti

on in

the

Wes

t

1950 1960 1970 1980 1990

73.5 TQM

1.5 TQM vs. BPR

Business Process Reengineering (BPR): the total redesign of a process

Leading to organizational and cultural changes, empowered and multi-functional employees, management leadership

Aim for rapid, dramatic improvement in process performance (BPR) vs. continuous improvement (TQM)

Common BPR characteristics Combining several jobs into one, processes have multiple

versions, work is done where it makes the most sense

83.5 TQM

1.6 Common Problems with TQM

Lack of a genuine quality culture Forgetting customer-focus Conflict with existing systems (e.g., compensation and promotion systems, policies and procedures)

Lack of top management support and commitmentForgetting long-term benefits (“bottom line” approach)Inadequate training

Over-or under-reliance on quality toolsOver-emphasis on teams, under-emphasis on individual efforts

93.5 TQM

2. Six Sigma Quality Program

Six sigma: A high level of quality with 3.4 defective parts per million

Coined by Motorola in 1986 Motorola won Baldridge Award in 1988

A business philosophy/strategy focusing on cutting costs and explicit compensation systems

Six sigma black belt certification Offered by Motorola and American Society for Quality Black belt: Employee trained and experienced in application of statistical techniques, problem solving, project management, team leadership skills Requirements: training, quality projects, work experience, written exam

103.5 TQM

Methodology

DMAIC model Define problem/opportunity Measure characteristics that are critical-to-quality Analyze the problem using benchmarking and gap studies Improve by reducing variation and reducing defects Control performance

Other tools Computer simulation Part standardization Supplier qualification, SPC Design of experiments Measurement system analysis

113.5 TQM

3. Quality Awards

Baldridge Award (USA): created by law in 1987 Manufacturing, service, small business, education, health

care Customer focus, process management, leadership, HR,

strategic planning, information and analysis, business results

Application, initial screening, in-depth examination

Deming Prize (Japan): created in 1957 Company, business unit, individual Allowed foreign companies to apply in 1984 Minimum application standards

Common Themes Privilege, worthy experience, expensive

123.5 TQM

4. Quality Standards

ISO (International Organization for Standardization) Headquarter in Geneva, officially established in 1947 Network of national standards institutes of 146 countries

To promote a uniform quality standard for cross-border transactions

Focus on a quality system that defines how an organization documents processes and procedures

Certification of suppliers, not products

Common themes Marketing strategy, customer requirement,

international trade requirement

133.5 TQM

ISO 9000 series for quality management (1987) ISO 9001 (production, procurement, installation, design,

servicing) ISO 9001 (production, procurement, installation) ISO 9003 (inspection and test) ISO 9004 (quality management) I SO 9000: 2000 – consistency, easier to understand

ISO 14000 series for environmental management (1996) Environmental management systems, technical standards Applicable in all nations, promote the interests of public

and user, cost effective and flexible

Other standards QS 9000: For Chrysler, Ford and GM suppliers AS 9000: Aerospace industry

143.5 TQM

Registration process Application documentation review pre-assessment

registration audit registration decision surveillance audit

Cost Internal: analysis, project planning, system development,

system documentation, system implementation, training, internal audit, system modifications

External: ISO publication and software, registrars (fees & travel), consultants (fees & travel)

Time: “3 months to 3 years”

153.5 TQM