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Compare and contrast Lean thinking and
Quality Management Theory
Can they be complemented to achieve business success ?
Group: QRMS1202_Team5 :
Jainwit Tongbai ID: 1255321
Zeyd Bohurler ID: 1265886Mathews John ID: 1259600Thomas Oliphant ID: 1258996
Apoorva Ravikrishnan ID: 1262022Vasileios Zisis ID: 1266493
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CONTENTS :
Evolution of Quality Management Theory Deming Philosophy Deming Cycle by Dr. Shewhart Ishikawa Quality Theory Total Quality Management
Six Sigma Lean Thinking Compare and Contrast : Fit for business success
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Evolution of
Quality Management Theory
Early 1950s Americans who took the messages of quality to Japan
Late 1950s Japanese who developed new concepts in response to the Americans
1970s-1980s Western gurus who followed the Japanese industrial success
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Deming Philosophy :
Quality Management Theory
Management is to be responsible for94% of quality problems.Place the importance and responsibility both individual level and company level.14 points of philosophySmall , large organisation ; public , private or service sectors.
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Demings Quotes
Quality Management Theory
Profit in business comes
from repeat customers,
customers that boast about
your project or service, and
that bring friends with them.
W. Edwards Deming
It is not enough to do your best, you mustknow what to do, and then do your best.
W. Edwards Deming
Lack of knowledge... that is the problem.
W. Edwards Deming
Hold everybody accountable ?
Ridiculous !
W. Edwards Deming
Quality is everyone's
responsibility.
W. Edwards Deming
If you do not know how to ask the rightquestion, you discover nothing.
W. Edwards Deming
You should not ask questions
without knowledge.
W. Edwards Deming
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Deming 14 Points
Edwards Deming Philosophy
1 Create constancy of purpose towards improvement of product and service
2 Adopt the new philosophy. We can no longer live with commonly accepted levels of delay,
mistakes and defective workmanship
3 Cease dependence on mass inspection. Instead, require statistical evidence that quality is built in
4 End the practice of awarding business on the basis of price
5 Find problems. It is managements job to work continually on the system
6 Institute modern methods of training on the job
7 Institute modern methods of supervision of production workers,
The responsibility of foremen must be changed from numbers to quality
8 Drive out fear, so that everyone may work effectively for the company
9 Break down barriers between departments
10 Eliminate numerical goals, posters and slogans for the workforce asking for new levels of productivity without providing
methods
11 Eliminate work standards that prescribe numerical quotas
12 Remove barriers that stand between the hourly worker and their right to pride of workmanship
13 Institute a vigorous programme of education and retraining
14 Create a structure in top management that will push on the above points every day
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Deming 14 Points
1. Constancy of purpose: 2. The new Philosophy :
3. Cease mass production inspection: 4. End lowest tender contracts :
http://leanandkanban.files.wordpress.com/2011/07/deming-pt1.jpg7/29/2019 Qrm Mini Project 2003 Final
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Deming 14 Points
5. Improve every process 6. Institute training on the job :
7. Institute leadership of people 8. Drive out fear
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Deming 14 Points
9. Breakdown barriers 10. Eliminate slogans / Do it right first time
11. Eliminate arbitrary numerical targets: 12. Permit pride of workmanships
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Deming 14 Points
13. Encourage education14. Top management commitment and actions :
Institute a vigorous programme of educationand self-improvement.
Put everybody in organisation to work to accomplish the change.
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Systematic Approach :
Deming Cycle by Dr. Shewhart
Quality Process isUnder Control
Father ofGurus
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Dr. Ishikawa 7 QC Tools :
Quality Management Theory
Late 1950s Japanese developed new concepts in response to the Americans
CustomerOrientation
Management ofQuality
Managing the QualityCustomer OrientationJapanese Way of Quality7 Quality Tools
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Dr. Ishikawa 7 QC Tools
Late 1950s Japanese developed new concepts in response to the Americans
7 Tools :
Pareto analysis Which are the big problems? Cause and effect diagrams What causes the problems? Stratification How is the data made up?
Check sheets How often it occurs or is done? Histograms What do overall variations look like? Scatter charts What are the relationships between factors? Process control charts Which variations to control and how?
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Dr. Ishikawa 7 QC Tools
Late 1950s Japanese developed new concepts in response to the Americans
7 Tools :
Pareto analysis Which are the big problems? Cause and effect diagrams What causes the problems? Stratification How is the data made up?
Check sheets How often it occurs or is done? Histograms What do overall variations look like? Scatter charts What are the relationships between factors? Process control charts Which variations to control and how?
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At its core, total quality management (TQM) is a management approach to long
term success through customer satisfaction.
In a TQM effort, all members of an organization participate in improving processes,products, services, and the culture in which they work.
Total Quality Management : Concepts
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Total Quality Management
The primary elements can be classified as:
Customer-focused. Total employee involvement. Process-centered. Integrated system. Strategic and systematic approach.
Continual improvement. Fact-based decision making. Communications.
Total quality management can be summarized as a management systemfor a customer focused organization that involves all employees in continualimprovement.
It uses strategy, data, and effective communications to integrate the quality
discipline into the culture and activities of the organization.
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Total Quality Management
Total Quality Management has few short-term advantages. Most of its benefits arelong-term and come into effect only after it is running smoothly.
Advantages of Total Quality Management: Improves reputation- faults and problems are spotted and sorted quicker (zero defects)
Higher employee morale
workers motivated by extra responsibility, team work andinvolvement in decisions of TQM
Lower costs Decrease waste as fewer defective products and no need for separate
Quality Control inspectors
Disadvantages of Total Quality Management: Initial introduction costs- training workers and disrupting current production whilst being
implemented
Benefits may not be seen for several years Workers may be resistant to change may feel less secure in jobs By focusing too much on the customers, the production based method might have a cheaper and
more faster way of doing business and this method is rejected. Also the costs of inspection of processes as well as Research and development projects might be
too costly.
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Six Sigma
Motorola developed six sigma in 1987
Similar to other quality managementtechniques but represents anorganizational approach to improvement
Ford, Honeywell- famous organizations tohave implemented six sigma
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Definition
Business process that allows companiesto drastically improve their bottom line bydesigning and monitoring everyday
activities in ways that minimize wastesand resources while increasing customersatisfaction
-Harry and Schroeder
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Advantages of Six Sigma
Achieve maximum customer satisfactionand minimize the defects
Profitability increases and Costs reduce
Can be implemented in any business Targets Variation in the processes and
focuses on the process improvement
rather than final outcome Focuses on prevention on defects rather
than fixing it
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Disadvantages of Six Sigma
Emphasis on the rigidity of the processwhich contradicts innovation andcreativity
Require skilled man force
A lot of real time barriers need to beresolved
Immediate results are not seen
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Lean Thinking Concept
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Lean Principles
There are five Principles that help us seek lean:
Specify Value
Identify the value stream
Make the value flow
Let the customer pull
Pursue perfection
Lean Principles
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There are four lean enablers:
Value Stream Mapping
Visual Management
Standardisation
5 S (sort, segregate, shine, standardise, sustain)
Lean Enablers
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We can use six lean techniques (especially during NPI)
1. Project Management
2. Integrated Product Team3. Knowledge Management
4. Risk Assessment
5. Requirements Capture
6. Core Competence
Lean Techniques
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Six Sigma Business Advantages
It focuses on the customer It gives clear objectives and goals to aim for
3.14 dpmo
Its a systematic approach Its Measurable and quantifiable It uses well-proven statistical tools It gives a change in culture
Inspired by Demings Plan, Do, Check, Act cycle
Through reducing variation it improves quality
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TQM Business Advantages
It focuses on the customer Improves and unifies processes It gives employees moral through involvement in decisions
By reducing waste is reduces costs Improves reputation through improved quality Uses analytical and statistical tools
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Lean Manufacturing Business Advantages
It focuses on the customer Gives clear objectives and goalsBy reducing waste you also reduce costs and increase quality
Reduces lead time Improves flow in processes Can be applied to all aspects of the business Increases employee knowledge, become experts in their field Improves cross-functional communication Builds customer and supplier relations Reduces effect of hierarchy
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How can these tools be complemented
to achieve business success?
All came about from the Japanese quality evolution All inspired from Deming's workAll work towards reducing waste to maximise processutilization
These tools naturally complement themselvesLean thinking moves towards JIT and zero waste TQM focuses on the customer Six Sigma focuses on reduction in variation
To successfully implement a mixture of these depends entirelyon the business application The mixture of techniques depends on what aspect thebusiness would best benefit from focusing on
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ECTI (Electrical Engineering/Electronics, Computer, Telecommunications and Information Technology
Association), 2008. 5th Annual International Conference of Electrical Engineering/Electronics,Computer, Telecommunications and Information Technology Association. Bangkok, Thailand14-17 May 2008. Bangkok: Thailand
Rahmere, R. , 2011. Top 50 EMS providers cross $150 billion mark , Electronics Manufacturing Asia,[online] Available at:< http://www.emasiamag.com/article5659top50emsproviderscross
150billionmark-Asia.html> [Accessed 29 July 2012]
SVI Plc., 2011. The milestones, annual report 2010-2011, Bangkok, Thailand: SVI Plc.
Whiteman, A. L., 2009. Project Management Challenges In The Global Economy, Project ManagementSolution, [online] Available at: [Accessed 28 July 2012]
References
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THANK YOU