Quality managemnt day 2 material

Total Quality Management

• Encompasses entire organization, from supplier to customer

• Stresses a commitment by management to have a continuing, companywide drive toward excellence in all aspects of products and services that are important to the customer

The Quality Hierarchy

Whole OperationQuality as strategyTeam & empower

Quality as systems& controlsProblem solving

StandardsSamplingChecking

Error detectionRectification


Inspection

• The ad – hoc physical check of products or goods or services to establish their compliance to specification

• “Quality” introduced after the production of the goods or services

• Does not examine cause and effect of poor quality

• Done by remote third party

– Does not empower or make quality part of the producers responsibility

• Requires physical intervention

• Limited to checking and proving that item only

– Defects are easily missed unless 100% checking or sampling techniques applied

• Often limited to the sensitivity of the testing process or ‘testability’ of the characteristics under examination

Quality control

• The systematic checking of outputs from or during a productive process

• “Quality” introduced after the production of the goods or services

– More systematic

• Still done by remote third party

• Requires physical intervention

• Limited to checking and proving that item only

– Defects are easily missed unless 100% checking or sampling techniques applied

• Often limited to the sensitivity of the testing process or ‘testability’ of the characteristics under examination


Assurance

• A practical implementation of a total quality approach

– Requires total company commitment

• Strategic quality principle

– Requires total company commitment

• Quality introduced at the outset and throughout the process

– Builds quality in

• Quality becoming the responsibility of the producer

• Quality as part of the process

• Administered and policed by remote third party

Total Quality Management (TQM)

• A total company approach to quality

• Strategic top down strategy

– Used when quality is a key competitive advantage

• As much a philosophy as a technique

– Customer is king

– Build in rather than inspect in

– Empowerment of the producer

• Demming as pioneer

• Japanese as exemplars of approach

Total Quality Management Concepts

1. Continuous improvement2. Six Sigma3. Employee empowerment4. Benchmarking5. Just-in-time (JIT)6. Taguchi concepts7. Knowledge of TQM tools

Total Quality Management ConceptsContinuous Improvement

Represents continual improvement of all processes

Involves all operations and work centers including suppliers and customers

People, Equipment, Materials, Procedures

Total Quality Management ConceptsContinuous Improvement

Time

PLAN

DO

CHECK

ACT

Total Quality Management ConceptsSix Sigma

Two meanings

Statistical definition of a process that is 99.9997% capable, 3.4 defects per million opportunities (DPMO)

A program designed to reduce defects, lower costs, and improve customer satisfaction

Mean

3.4 defects/million

±6

2,700 defects/million

±3



• Black Belt

– project leader

• Master Black Belt

– a teacher and mentor for Black Belts

• Green Belts

– project team members


Total Quality Management ConceptsEmployee Empowerment

Getting employees involved in product and process improvements

85% of quality problems are due

to process and material

Techniques

Build communication networks that include employees

Develop open, supportive supervisors

Move responsibility to employees

Build a high-morale organization

Create formal team structures

Total Quality Management ConceptsBenchmarking

Selecting best practices to use as a standard for performance

1. Determine what to benchmark

2. Form a benchmark team

3. Identify benchmarking partners

4. Collect and analyze benchmarking information

5. Take action to match or exceed the benchmark

Total Quality Management ConceptsJust In Time (JIT)

Relationship to quality:

JIT cuts the cost of quality

JIT improves quality

Better quality means less inventory and better, easier-to-employ JIT system


‘Pull’ system of production scheduling including supply management

Allows reduced inventory levels

Inventory costs money and hides process and material problems

Encourages improved process and product quality


ScrapUnreliable Vendors

Capacity Imbalances

Work in process inventory level

(hides problems)


Reducing inventory revealsproblems so they can be solved

ScrapUnreliable Vendors

Capacity Imbalances

Total Quality Management ConceptsTaguchi Concepts

Engineering and experimental design methods to improve product and process design

Identify key component and process variables affecting product variation

Taguchi Concepts

Quality robustness

Quality loss function

Target-oriented quality

Total Quality Management ConceptsQuality Robustness

Ability to produce products uniformly in adverse manufacturing and environmental conditions

Remove the effects of adverse conditions

Small variations in materials and process do not destroy product quality

Total Quality Management ConceptsQuality Loss Function

Shows that costs increase as the product moves away from what the customer wants

Costs include customer dissatisfaction, warranty and service, internal scrap and repair, and costs to society

Traditional conformance specifications are too simplistic

Total Quality Management Tools

Tools for Generating Ideas

Check sheets

Scatter diagrams

Cause-and-effect diagrams

Tools to Organize the Data

Pareto charts

Flowcharts





PrintersRun

Out ofToner

Machinery People

Materials Methods Money

Staff don’t report poor

print

Managers budgets too

tightly controlled

Too many forms to

fill in

Low capacity toner refills

Using non branded toner to

save money






Number of occurrences

Room svc Check-in Pool hours Minibar Misc.72% 16% 5% 4% 3%

12

4 3 2

54

– 100– 93– 88

– 72

70 –

60 –

50 –

40 –

30 –

20 –

10 –

0 –

Fre

qu

en

cy (

nu

mb

er)

Causes and percent of the total

Cu

mu

lati

ve p

erc

en

t

Data for October

Pareto Charts


Flow Chart

MRI Flowchart

1. Physician schedules MRI2. Patient taken to MRI3. Patient signs in4. Patient is prepped5. Technician carries out MRI6. Technician inspects film

7. If unsatisfactory, repeat8. Patient taken back to room9. MRI read by radiologist10. MRI report transferred to

physician11. Patient and physician discuss


Statistical Process Control (SPC)

Uses statistics and control charts to tell when to take corrective action

Drives process improvement

Four key steps

Measure the process

When a change is indicated, find the assignable cause

Eliminate or incorporate the cause

Restart the revised process


Statistical Process Control (SPC)


Inspection

Involves examining items to see if an item is good or defective

Detect a defective product

Does not correct deficiencies in process or product

It is expensive

Issues

When to inspect

Where in process to inspect


When and where to inspect?

1. At the supplier’s plant while the supplier is producing

2. At your facility upon receipt of goods from the supplier

3. Before costly or irreversible processes

4. During the step-by-step production process

5. When production or service is complete

6. Before delivery to your customer

7. At the point of customer contact


Source Inspection

Also known as source control

The next step in the process is your customer

Ensure perfect product to your customer


Service Industry Inspection

OrganizationWhat is

InspectedStandard

Arnold Palmer Hospital

Billing

Pharmacy

Lab

Nurses

Admissions

Accurate, timely, and correct format

Prescription accuracy, inventory accuracy

Audit for lab-test accuracy

Charts immediately updated

Data entered correctly and completely



OrganizationWhat is

InspectedStandard

Nordstrom Department Store

Display areas

Stockrooms

Salesclerks

Attractive, well-organized, stocked, good lighting

Rotation of goods, organized, clean

Neat, courteous, very knowledgeable



OrganizationWhat is

InspectedStandard

Hard Rock Hotel Reception desk

Doorman

Room

Minibar

Use customer’s name

Greet guest in less than 30 seconds

All lights working, spotless bathroom

Restocked and charges accurately posted to bill



OrganizationWhat is

InspectedStandard

Arnold Palmer Hospital

Billing

Pharmacy

Lab

Nurses

Admissions

Accurate, timely, and correct format

Prescription accuracy, inventory accuracy

Audit for lab-test accuracy

Charts immediately updated

Data entered correctly and completely



OrganizationWhat is

InspectedStandard

Olive Garden Restaurant

Busboy

Busboy

Waiter

Serves water and bread within 1 minute

Clears all entrée items and crumbs prior to dessert

Knows and suggest specials, desserts


Attributes Vs. Variables

Attributes

Items are either good or bad, acceptable or unacceptable

Does not address degree of failure

Variables

Measures dimensions such as weight, speed, height, or strength

Falls within an acceptable range

Use different statistical techniques

Total Quality Management in Service

Service quality is more difficult to measure than the quality of goods

Service quality perceptions depend on

Intangible differences between products

Intangible expectations customers have of those products


The Operations Manager must recognize:

1. The tangible component of services is important

2. The service process is important

3. The service is judged against the customer’s expectations

4. Exceptions will occur


Service Specifications

at UPS

Total Quality Management in ServiceDeterminants of Service Quality

Reliability Consistency of performance and dependability

Responsiveness Willingness or readiness of employees

Competence Required skills and knowledge

Access Approachability and ease of contact

Courtesy Politeness, respect, consideration, friendliness

Communication Keeping customers informed

Credibility Trustworthiness, believability, honesty

Security Freedom from danger, risk, or doubt

Understanding/ knowing the customer

Understand the customer’s needs

Tangibles Physical evidence of the service

Total Quality Management in ServiceService Recovery Strategy

Managers should have a plan for when services fail

Marriott’s LEARN routine

Listen

Empathize

Apologize

React

Notify

Business

Quality managemnt day 2 material