Opermgt 345Introduction To Production and Operations

Management

Opermgt 345Introduction To Production and Operations

Management

Introduction to Quality and TQM

Chapter 7

Shannon Spring 2001

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

Dimensions Of Product QualityDimensions Of Product Quality

Performance basic operating characteristicsbasic operating characteristics

Features ““extra” items added to basic featuresextra” items added to basic features

Reliability probability product will operate over timeprobability product will operate over time

Dimensions Of Product QualityDimensions Of Product Quality

Conformance meeting pre-established standardsmeeting pre-established standards

Durability life span before replacement life span before replacement

Serviceability ease of getting repairs, speed & competence of repairsease of getting repairs, speed & competence of repairs

Dimensions Of Product QualityDimensions Of Product Quality

Aesthetics look, feel, sound, smell or tastelook, feel, sound, smell or taste

Safety freedom from injury or harmfreedom from injury or harm

Other perceptions subjective perceptions based on brand name, advertising, etcsubjective perceptions based on brand name, advertising, etc

Is TQM Dead?Is TQM Dead?

Process Improvement and Quality Management

There are many definitions:

A journey to excellence in which everyone in the organization is focused on continuous process improvement directed toward increased customer satisfaction.

Journey Everyone Continuous Process Improvement Increased Customer Satisfaction

The TQM Unifying Principles

Customer-First Orientation Top Management Leadership Continuous Process Improvement Respect for Employees Reduction in Process and Product Variation On-going Education and Training Statistical Thinking and Emphasis on Data Emphasis on Prevention Rather Than Detection Customer-Supplier Partnerships

Leadership for TQM

Leaders Must:

Become Aware

Become Committed

Truly Understand

Champion the Process

Is there a Recipe for TQM?Is there a Recipe for TQM?

TQM has evolved over many years, and incorporates the thinking of many people

There is no single recipe or standard, just guiding principles

Quality Philosophers

Walter Shewhart W. Edwards Deming Joseph Juran Philip Crosby Armand Feigenbaum Kaoru Ishikawa Genichi Taguchi

Deming’s 14 Points

1. Create constancy of purpose

2. Adopt philosophy of prevention

3. Cease mass inspection

4. Select a few suppliers based on quality

5. Constantly improve system and workers

6. Institute worker training

7. Instill leadership among supervisors

8. Eliminate fear among employees

9. Eliminate barriers between departments

10. Eliminate slogans

11. Remove numerical quotas

12. Enhance worker pride

13. Institute vigorous training & education programs

14. Implement these 13 points

Deming’s 14 Points (continued)

Traditional United States Perspective

Top Mgmt

Middle Mgmt

Supervisors

Operations

Source: Kaizen, by Masaaki Imai, McGraw-Hill Book Company, 1986

Time Spent

Innovation

Maintenance

Japanese Kaizen ModelJapanese Kaizen Model

Source: Kaizen, by Masaaki Imai, McGraw-Hill Book Company, 1986

Top Mgmt

Middle Mgmt

Supervisors

Operations

Time Spent

Kaizen

Innovation

Maintenance

The Quality Gap Concept

Quality Dimensions

TangiblesReliability

ResponsivenessCompetence

CourtesyCredibility

SecurityAccess

CommunicationUnderstandingthe Customer

Word ofMouth

Personal Needs

PastExperience

ExternalCommunications

Expected Quality

Expected Quality

PerceivedQuality

PerceivedQuality

The QualityGap

Your Quality ExperiencesYour Quality Experiences

Examples of Poor Quality

Examples of High Quality

Quality Implementation Strategies

Six-Sigma Program

Cost of Quality

Benchmarking

Malcolm Baldrige Assessment

Many Others …...

Six-Sigma ProgramSix-Sigma Program

Pioneered By Motorola and GE

GE Slide Show: http:/www.cimplicityhmi.com/croton/ppt/sigma/sld001.htm

Quality Function Deployment House of QualityText Book Publishing Example

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Range of difficulty

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Step 1 ~ Voice of Customer “WHATS”

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Step 2 ~ Technical Requirements “HOWS”

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Step 3 ~ Relationship Matrix

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Highlights important material

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Step 4 ~ Competitive Evaluation

Selling points

A B

B A

B A

A BA BA B

ImportanceCompetitive evaluation

1 2 3 4 5 1 2 3 4 5

A B

A B

B AA B

B A

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Competitive evaluation

Targets

Deployment

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Step 5 ~ Completed House of Quality

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Very strong relationship

Strong relationship

Weak relationship

The Cost of Quality: Sources of Costs

Prevention Preventing Defects from Happening

Appraisal Evaluating Materials and Performance

Internal Failures Defects that are Discovered In-House

External Failures Defects Discovered by the Customer

Liability Customer Complaints Warranty Costs and Field Re-Work Damaged Image

Scrap (waste) Re-work Time spent analyzing failures Tests and re-tests Operations downtime Internal Customer Complaints

Incoming materials Inspection In-process Inspection Final End-item Inspection Maintenance of test Equipment Training Calibration

Quality Planning Training Verification of Design Plant and Equipment

Maintenance Qualifying Suppliers

The Cost of QualityDistribution of the Costs

(25.0%)(65.0%)

(10.0%)

Prevention

Evaluation

failures

Internal and External

Reduce Quality Costs by Increasing Prevention Efforts

“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

20

Benchmarking

1. Identify those processes needing improvement.

2. Identify a firm that is the world leader in performing the process (Library & WWW).

3. Contact the managers of that company and make a personal visit to interview managers and workers.

4. Analyze data

The Process Model

Sources of Problems in a Process

Inadequate Knowledge of How the Process Actually Works

Inadequate Knowledge of How the Process Should Work

Errors in Executing the Process FunctionsExisting Practices that Fail to Take Preventive

MeasuresExistence of Non-value Adding Steps in the ProcessVariation in Inputs and Outputs

The Problem Solving Process

IssueSurfaces

OrganizeTeam

Definethe Problem

TheTools ofQuality

Identify &AnalyzeCauses

IdentifySolutions &

Options

Test Solutions

Track &Evaluate

The Deming Wheel(or P-D-C-A Cycle)

1. PlanIdentify problemDevelop plan for

improvement

2. DoImplement plan

on test basis

3. Study / CheckIs the plan working

4. ActInstitutionalize improvement

Continue cycle

A Process Improvement Model- CA-PDCA

Chance ForCustomer

Satisfaction

Chance ForCustomer

SatisfactionFormTeam

FormTeam

CheckSituation

CheckSituation

ProcessAnalysis

ProcessAnalysis

CreateActionPlans

CreateActionPlans

ImplementPlans

ImplementPlans

VerifyResults

VerifyResults

Make Routine

Make Routine

Continuous Improvement

CHECK ANALYZE PLAN DO

CHECK

ACT

Employees & Quality Improvement

Quality circles Employee suggestions Process improvement teams Self-managed work teams

The Quality Circle Process

Organization 8-10 members

Same area ModeratorPresentation

Implementation Monitoring

Solution Problem results Problem analysis

Cause & effect Data collection &

analysis

Problem ID List alternatives

Consensus Brainstorming

Training Group processes Data collection

Problem analysis

The Quality Tools

Basic Tools:BrainstormingFlowchartingCause and Effect

DiagramsPareto ChartsHistogramsData Checks SheetsProcess Control ChartsScatter Diagrams

The New Tools:Affinity DiagramsInterrelationship DigarphsTree DiagramsPrioritization MatricesMatrix DiagramProcess Decision Program

ChartsActivity Network Diagram

A Flowchart

12

Pareto Analysis

80% of the problems may be attributed to 20% of thecauses.

80% of the problems may be attributed to 20% of thecauses.

Assy.Instruct.

Fre

quen

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Design Purch.Training

Other

Cause-and -Effect (Fishbone) Diagram

QualityProblem

MachinesMeasurement Human

ProcessEnvironment Materials

Faulty testing equipment

Incorrect specifications

Improper methods

Poor supervision

Lack of concentration

Inadequate training

Out of adjustment

Tooling problems

Old/worn

Defective from vendor

Not to specifications

Material-handling problems

Deficienciesin product design

Ineffective qualitymanagement

Poor process design

Inaccuratetemperature control

Dust and Dirt

13

Run Chart

0.440.460.48

0.50.520.540.560.58

1 2 3 4 5 6 7 8 9 10 11 12

Time (Hours)

Dia

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er

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Histogram

Fre

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Data Ranges

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Scatter Diagram

02468

1012

0 10 20 30

Hours of Training

Def

ects

16

Checksheet

Billing Errors

Wrong Account

Wrong Amount

A/R Errors

Wrong Account

Wrong Amount

Monday

18

Control Charts

970

980

990

1000

1010

1020

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

LCL

UCL

24

ISO 9000

Series of standards agreed upon by the International Organization for Standardization (ISO)

Adopted in 1987

More than 100 countries

A prerequisite for global competition?

ISO 9000 directs you to "document what you do and then do as you documented."

Web Site: http://www.iso.ch/welcome.html