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TQM: Customer Focused Quality
Feel Free To Contact for more stuff in every kind of Masters Subjects: Naveeddear 0300-4194390
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Outline Quality defined Cost of quality Framework for managing total quality Employee involvement Benchmarking Quality certification and awards Implementing TQM TQM and JIT
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Total Quality Management Traditional:
Establish acceptable quality levels Detect and rework or scrap defects
TQM Focus entire company on all aspects
of quality, with emphasis on the customer’s perspective
The customer is interested in Value, which combines quality and cost
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Achieving Total Quality
techniques
system
philosophy
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What is Quality?
The concept of quality is subjective and difficult to define
Certain aspects of quality can be identified
Ultimately, the judgement of quality rests with the customer
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Quality: Customer’s perspective Quality of design
Fitness for use Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived value
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Quality: Producer’s Perspective Quality of conformance
Satisfaction of requirements or specifications
Emphasis on defect detection and defect prevention
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The Meaning of Quality
Quality of Conformance Quality of Design
Producer’s Perspective Consumer’s Perspective
Fitness forConsumer Use
Production Marketing•Conformance to specifications•Cost
•Quality characteristics•Price
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Cost of Quality
Prevention costs build it right the first time
Appraisal costs inspection and testing
Internal failure costs scrap and rework
External failure costs warranty claims, recalls, lost business
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“Quality is Free”
For the average company, the cost of quality is about 25% of total sales
The cost of prevention is a fraction of the cost of fixing mistakes after they are made
Investments in prevention can drastically reduce the total cost of quality
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Three Areas to Improve Quality Quality of design
meet the customer’s needs design for manufacturability build quality in
Quality of conformance minimize and control process variation to
satisfy the design specifications every time Quality of service
The customer must come first
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Framework for Managing Total Quality
Quality must continuously improve TQM involves all parts of the
company
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TQM Throughout the Company Marketing and sales
Feedback on customer wants and needs Finance and accounting Design and manufacturing
Product must satisfy customer Design for manufacture Simplify to improve quality
Production management, supervisors, line workers
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TQM Throughout the Company Purchasing and suppliers
Long-term supplier relations based on quality not price
Suppliers as part of design team Customer service
Satisfy customer Feedback information for
improvement
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Top Management’s Role Commitment is required
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Employee Involvement Give ownership of quality to workers Organize for quality
Cross-functional teams Quality circles Process and project-oriented teams Greater customer awareness
Train and educate workers Quality skills and tools Importance of TQM
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Benchmarking Find the companies with the “best
practices” Copy them Improve them
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Benchmarking Process Determining what to benchmark Determining what to measure Determining whom to benchmark Collecting data Analysing data Setting goals and action plans Monitoring the action
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Quality Certifications ISO 9000
Say what you do, and do what you say
QS 9000 More rigorous version adopted by big
three automakers and suppliers ISO 14000
Environmental management systems
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Quality Awards Malcolm Baldrige Award Canada Award for Business
Excellence Japan’s Deming Prize Shingo Prize for Excellence in
Manufacturing
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Strategic PlanningMission & Vision
Business Strategy
Marketing Strategy
Operations Strategy
Financial Strategy
Voice of the Business
Voice of the Customer
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Policy Deployment Focusing and directing all activities
and processes so they support the companies vision, mission and long-term strategy
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Policy Deployment Steps Develop a long term vision Determine annual policies to support
the long-term vision Deploy the policy company-wide
through participation in planning Implement the policy Audit the process and plans monthly Audit the process annually by top
management
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PolicyDeployment
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In other words… Make sure everyone understands
and supports the company goals Make sure individual and
department goals are consistent with company goals
Plan ways to achieve the goals Measure the success
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TQM and JIT TQM and JIT are consistent,
interrelated and interdependent Often they are combined as
JIT/TQM