Total Quality Management

Total Quality Management

Exploring The Total Management of Quality

• Seven Components Of TQM• Concepts • Principles • Tools • Techniques • Problem Solving • Organizational Structure • Commitment

• Seven TQM Concepts• Customer-oriented service • Process focus • Empowered interdisciplinary improvement

teams • Scientific/systematic problem solving • Data-driven decision making • Statistical process control • Problem-solving tools and techniques

• Seven TQM Principles• Continuous improvement - the goal • Commitment of key decision makers • Reduce variation • Reduce complexity • Solve problems at the root cause • Problem solve at the local level • Publicize results of problem solving

• Seven TQM Tools• Flow chart of process under study • Fishbone- cause and effect diagram • Pareto diagram • Histogram • Scatter diagram • Run chart • Control chart

• Seven TQM Techniques• Brainstorming • Nominal Group Process/Multivoting • Process clarification • Benchmarking • Force field analysis • Statistical process analysis • Affinity analysis

• Seven Step TQM Problem Solving • Problem Identification • Team Chartering • Problem study and refinement • Plan the solution(s) • Implement the solution(s) • Evaluate effects or results • Publicize the results and celebrate

• Seven Characteristics of TQM Structure • Quality Council - Organizations top leaders • Training program for all levels • Mechanisms for selecting improvement

opportunities • Formation of process improvement teams • Scientific and statistical control processes • Staff support for process analysis and redesign • Policies & procedures to motivate, guide & support

TQM

• Seven Steps To TQM Effectiveness • Organization vision, mission, values • Management visibly committed to TQM • Resource support provided • Oversight Committee directs TQM • Project approval and monitoring • Board, management, and employees trained • Successes celebrated

• Seven Names To Know• Walter Skewhart • Edward Deming • Joseph Juran • Philip Crosby • Armand Feiganbaum • Donald Berwick • Avedis Donabedian

• Documented Reasons For Failure• Choosing unsolvable problems • Inadequately defined problems or processes • Instability in environment • Poor management support • Lack of TQM training • Team dynamics, cooperation, participation • Needed expertise not available • Poorly informed decisions • Inadequate institutional coordination

• The Role Of Leadership In Establishing Quality Management In The Organization

• Leadership facilitates the establishment of: • A mission describing the work of the organization • A vision of the organization in the future • A definition of quality for the organization • QM guiding principles for leaders and managers reflecting

the organization’s assumptions about roles and actions of leaders in creating a learning work environment

• Integration of leadership policies with the values important to health professionals and health care

• Total Quality Management is... • The integration of quality and management methods,

practices, concepts and beliefs into the culture of the organization to bring about

• continuous quality planning, • continuous quality monitoring, and • continuous quality improvement • A management system for meeting or exceeding

customer expectations by continuously improving performance at every level of clinical and non-clinical process

• Defining Total Quality Management • Distinguishing the Nomenclature • Total Quality Management • Total Quality Improvement • Continuous Quality Improvement • Quality Management • Quality Improvement • Quality Assurance

• Seven Components Of TQM• Concepts • Principles • Tools • Techniques • Problem Solving • Organizational Structure • Commitment

• Seven TQM Concepts• Customer-oriented service • Process focus • Empowered interdisciplinary improvement

teams • Scientific/systematic problem solving • Data-driven decision making • Statistical process control • Problem-solving tools and techniques

• Seven TQM Principles• Continuous improvement - the goal • Commitment of key decision makers • Reduce variation • Reduce complexity • Solve problems at the root cause • Problem solve at the local level • Publicize results of problem solving

• Seven TQM Tools• Flow chart of process under study • Fishbone- cause and effect diagram • Pareto diagram • Histogram • Scatter diagram • Run chart • Control chart

• Seven TQM Techniques• Brainstorming • Nominal Group Process/Multivoting • Process clarification • Benchmarking • Force field analysis • Statistical process analysis • Affinity analysis

• Seven Step TQM Problem Solving • Problem Identification • Team Chartering • Problem study and refinement • Plan the solution(s) • Implement the solution(s) • Evaluate effects or results • Publicize the results and celebrate

• Seven Characteristics of TQM Structure • Quality Council - Organizations top leaders • Training program for all levels • Mechanisms for selecting improvement

opportunities • Formation of process improvement teams • Scientific and statistical control processes • Staff support for process analysis and redesign • Policies & procedures to motivate, guide & support

TQM

• Seven Steps To TQM Effectiveness • Organization vision, mission, values • Management visibly committed to TQM • Resource support provided • Oversight Committee directs TQM • Project approval and monitoring • Board, management, and employees trained • Successes celebrated

• Ways in Which Quality Can Improve Productivity• Transparency Masters to accompany Operations Management, 5E (Heizer & Render)• 4-6• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Market Gains • Improved response • Economies of Scale • Improved reputation• Reduced Costs • Increased productivity • Lower rework and scrap costs • Lower warranty costs• Increased Profits• Improved Quality

• Importance of Quality• Transparency Masters to accompany Operations

Management, 5E (Heizer & Render)• 4-15• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Company’s reputation • Product liability • International implications• Costs & market share

• Dimensions of Quality for Goods• Transparency Masters to accompany Operations Management, 5E (Heizer &

Render)• 4-13• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Operation • Reliability & durability • Conformance • Serviceability • Appearance • Perceived quality• Quality

• Three Reasons Quality is Important• Transparency Masters to accompany Operations

Management, 5E (Heizer & Render)• 4-14• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Company reputation • Product liability • Global implications

• International Quality Standards• Transparency Masters to accompany Operations Management, 5E (Heizer &

Render)• 4-16• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• 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.)

• Malcom Baldridge National Quality Award• Transparency Masters to accompany Operations Management, 5E (Heizer &

Render)• 4-17• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Established in 1988 by the U.S. government • Designed to promote TQM practices • Some criteria • Senior executive leadership; strategic planning; management. of process quality • Quality results; customer satisfaction • Recent winners • Corning Inc.; GTE; AT&T; Eastman Chemical.

• Traditional Quality Process (Manufacturing)• Transparency Masters to accompany Operations

Management, 5E (Heizer & Render)• 4-19• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Quality is customer driven!

• TQM• Transparency Masters to accompany Operations Management,

5E (Heizer & Render)• 4-20• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• 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.

• Achieving Total Quality Management• Transparency Masters to accompany Operations Management, 5E (Heizer & Render)• 4-21• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Organizational Practices• Quality Principles• Employee Fulfillment• Attitudes (e.g., Commitment)• How to Do• What to Do• Effective Business• Customer Satisfaction

• Concepts of TQM• Transparency Masters to accompany Operations Management, 5E

(Heizer & Render)• 4-22• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Continuous improvement • Employee empowerment • Benchmarking • Just-in-time (JIT) • Knowledge of tools

• Continuous Improvement• Transparency Masters to accompany Operations Management, 5E (Heizer &

Render)• 4-23• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Represents continual improvement of process & customer satisfaction • Involves all operations & work units • Other names • Kaizen (Japanese) • Zero-defects • Six sigma• © 1984-1994 T/Maker Co.

• Employee Empowerment• Transparency Masters to accompany Operations Management, 5E (Heizer &

Render)• 4-24• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Getting employees involved in product & process improvements • 85% of quality problems are due to process & material • Techniques • Support workers • Let workers make decisions • Build teams & quality circles• © 1995 Corel Corp.

• Benchmarking• Transparency Masters to accompany Operations Management, 5E (Heizer

& Render)• 4-28• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Selecting best practices to use as a standard for performance • Determine what to benchmark • Form a benchmark team • Identify benchmarking partners • Collect and analyze benchmarking information • Take action to match or exceed the benchmark

• Just-in-Time (JIT)• Transparency Masters to accompany Operations Management, 5E

(Heizer & Render)• 4-30• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Relationship to quality: • JIT cuts cost of quality • JIT improves quality • Better quality means less inventory and better, easier-to-employ

JIT system

• Tools for TQM• Transparency Masters to accompany Operations Management, 5E (Heizer & Render)• 4-34• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Quality Function Deployment • House of Quality • Taguchi technique • Quality loss function • Pareto charts • Process charts • Cause-and-effect diagrams • Statistical process control

• Quality Function Deployment (QFD)• Transparency Masters to accompany Operations

Management, 5E (Heizer & Render)• 4-35• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Determines what will satisfy the customer • Translates those customer desires into the target

design

• Quality Function Deployment• Transparency Masters to accompany Operations Management, 5E

(Heizer & Render)• 4-36• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Product design process using cross-functional teams • Marketing, engineering, manufacturing • Translates customer preferences into specific product characteristics • Involves creating 4 tabular ‘Matrices’ or ‘Houses’ • Breakdown product design into increasing levels of detail

• House of Quality Example• Transparency Masters to accompany Operations

Management, 5E (Heizer & Render)• 4-39• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• You’ve been assigned temporarily to a QFD team. The

goal of the team is to develop a new camera design. Build a House of Quality.

• © 1984-1994 T/Maker Co.

• House of Quality Example• Transparency Masters to accompany Operations Management, 5E (Heizer

& Render)• 4-40• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• ?High relationship ? Medium relationship ? Low Relationship• Customer • Requirements• Customer • Importance• Target Values

• Taguchi Techniques• Transparency Masters to accompany Operations Management, 5E (Heizer

& Render)• 4-46• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Experimental design methods to improve product & process design • Identify key component & process variables affecting product variation • Taguchi Concepts • Quality robustness • Quality loss function • Target specifications

• Quality Robustness• Transparency Masters to accompany Operations

Management, 5E (Heizer & Render)• 4-47• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Ability to produce products uniformly regardless of

manufacturing conditions • Put robustness in House of Quality matrices besides

functionality

• Quality Loss Function• Transparency Masters to accompany Operations Management, 5E (Heizer &

Render)• 4-48• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Shows social cost ($) of deviation from target value • Assumptions • Most measurable quality characteristics (e.g., length, weight) have a target

value • Deviations from target value are undesirable • Equation: L = D2 • C • L = Loss ($); D = Deviation; C = Cost

• Quality Loss Function Example• Transparency Masters to accompany Operations

Management, 5E (Heizer & Render)• 4-50• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• The specifications for the diameter of a gear are 25.00 ±

0.25 mm. If the diameter is out of specification, the gear must be scrapped at a cost of $4.00. What is the loss function?

• Quality Loss Function Solution• Transparency Masters to accompany Operations Management, 5E (Heizer &

Render)• 4-51• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• L = D2 • C = (X - Target)2 • C • L = Loss ($); D = Deviation; C = Cost • 4.00 = (25.25 - 25.00)2 • C • Item scrapped if greater than 25.25 (USL = 25.00 + 0.25) with a cost of $4.00 • C = 4.00 / (25.25 - 25.00)2 = 64 • L = D2 • 64 = (X - 25.00)2 • 64 • Enter various X values to obtain L & plot

• Target Specification Example• Transparency Masters to accompany Operations Management, 5E

(Heizer & Render)• 4-52• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• 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 consumer preferences.

• Japanese factory (Target-oriented)• U.S. factory (Conformance-oriented)

• Pareto Analysis of Wine Glass Defects• Transparency Masters to accompany Operations Management, 5E (Heizer &

Render)• 4-53• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Causes, by percent of total defects• Frequency (number)• 72%• 16%• 5%• 4%• 3%

• Process Chart• Transparency Masters to accompany Operations Management, 5E (Heizer &

Render)• 4-54• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Shows sequence of events in process • Depicts activity relationships • Has many uses • Identify data collection points • Find problem sources • Identify places for improvement • Identify where travel distances can be reduced

• Cause and Effect Diagram• Transparency Masters to accompany Operations Management, 5E (Heizer &

Render)• 4-56• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Used to find problem sources/solutions • Other names • Fish-bone diagram, Ishikawa diagram • Steps • Identify problem to correct • Draw main causes for problem as ‘bones’ • Ask ‘What could have caused problems in these areas?’ Repeat for each sub-area.

• Statistical Process Control (SPC)• Transparency Masters to accompany Operations Management, 5E (Heizer &

Render)• 4-61• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Uses statistics & control charts to tell when to adjust process • Developed by Shewhart in 1920’s • Involves • Creating standards (upper & lower limits) • Measuring sample output (e.g. mean wgt.) • Taking corrective action (if necessary) • Done while product is being produced

• Inspection• Transparency Masters to accompany Operations Management, 5E (Heizer

& Render)• 4-64• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Involves examining items to see if an item is good or defective • Detect a defective product • Does not correct deficiencies in process or product • Issues • When to inspect • Where in process to inspect

• When and Where to Inspect• Transparency Masters to accompany Operations Management, 5E (Heizer &

Render)• 4-65• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• At the supplier’s plant while the supplier is producing • At your plant upon receipt of goods from the supplier • Before costly or irreversible processes • During the step-by-step production processes • When production is complete • Before shipment from your plant • At the point of customer contact

• Theoretical Basis of Control Charts• Transparency Masters to accompany Operations

Management, 5E (Heizer & Render)• 4S-10• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• As sample size gets large enough (³ 30) ...• sampling distribution becomes almost normal regardless of

population distribution.• Central Limit Theorem

• Control Chart Purposes• Transparency Masters to accompany Operations Management, 5E (Heizer & Render)• 4S-9• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Show changes in data pattern • e.g., trends • Make corrections before process is out of control • Show causes of changes in data • Assignable causes • Data outside control limits or trend in data • Natural causes • Random variations around average

• ?X Chart• Transparency Masters to accompany Operations Management, 5E

(Heizer & Render)• 4S-15• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Type of variables control chart • Interval or ratio scaled numerical data • Shows sample means over time • Monitors process average • Example: Weigh samples of coffee & compute means of samples;

Plot

• R Chart• Transparency Masters to accompany Operations Management, 5E (Heizer &

Render)• 4S-17• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Type of variables control chart • Interval or ratio scaled numerical data • Shows sample ranges over time • Difference between smallest & largest values in inspection sample • Monitors variability in process • Example: Weigh samples of coffee & compute ranges of samples; Plot

• p Chart• Transparency Masters to accompany Operations Management, 5E (Heizer &

Render)• 4S-19• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Type of attributes control chart • Nominally scaled categorical data • e.g., good-bad • Shows % of nonconforming items • Example: Count # defective chairs & divide by total chairs inspected; Plot • Chair is either defective or not defective

• c Chart• Transparency Masters to accompany Operations Management, 5E (Heizer &

Render)• 4S-21• © 1998 by Prentice Hall, Inc. • A Simon & Schuster Company • Upper Saddle River, N.J. 07458• Type of attributes control chart • Discrete quantitative data • Shows number of nonconformities (defects) in a unit • Unit may be chair, steel sheet, car etc. • Size of unit must be constant • Example: Count # defects (scratches, chips etc.) in each chair of a sample

of 100 chairs; Plot