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Total Quality Management
BUS 3 – 142
Strategic Quality Management
Jan 31, 2013
Page 2 2
Designing and Assuring Quality
– Achieving quality results require INTENTIONAL planning and execution
– A business aligns its quality strategy with its overall strategy Differentiation on Quality and features Command price premiums If competing on price, must attack costs and productivity –
improved quality address both
– Organizational Leaders create the atmosphere and priority for quality
Quality is the RESULT of coordinated, fact-based, planning, execution, problem solving, and continuous improvement
Page 3 3
Deming’s “Plan-Do-Check-Act”
"Continuous improvement is better than delayed perfection." - Mark Twain
Page 4 4
An Environment and Culture for Quality
The right LEADERSHIP is critical to building & sustaining a Quality organization
– Establish quality as a “Way of Life” and not as a project or fad
– Keep activities focused on “superordinate” goals Customer and organization long term success Honest and respectful work environment
– Create an environment for Learning Provide time and dollars for Training Encourage diversity of opinions and problem solving approaches Plan-Do-Check-Act
– Be patient and don’t expect immediate results
– If employees are asked to make suggestions, implement the ideas that are offered
Follow up to ensure results are achieved or if additional measures may be required
Page 5 5
Beware of goals that are really “Wants” or Wishes”
When goals are introduced without the systems, processes, and resources to achieve them, one of three outcomes will follow:
People will achieve the goals and positive results
People will distort the data
People will distort the system
Adapted from Donald Wheeler in Foster, Quality Management, Fifth Edition, Prentice Hall
Page 6 6
Quality and Productivity
– A ratio of Inputs and Outputs
– “Total-factor” productivity
– Improvement projects sometimes reduce productivity in the early stages, before the longer term results are achieved
Learning curve Resistance to change “One step back for two steps forward”
– Measure against objective standards Yields Cycle time Inventory Profit
Page 7 7
Money must be spent to enable Quality
Like any other business process, managing quality requires investment and incurs costs. Diligent business case development,
project management, and cost management are necessary.
Page 8 8
Quality Cost Model (“Lundvall-Juran” Model)
Balances Prevention Costs and Failure Costs.Can be useful in some cases, but NOT in matters of Safety or
other risk to Human Life
Foster, Quality Management, Fifth Edition, Prentice Hall
Page 9 9
Failure Costs (Table 4-4)
* Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall
Failure Costs
Scrap
Scrap disposition
Warranty
Customer Service - complaint handling
Escapes of poor quality goods
Machine downtime
Idle time
Troubleshooting
Re-stocking
Re-inspection
Re-work
Schedule disruption and delay
Buffer inventory
Latent inventory from undetected failures
Product redesign
Page 10 10
Appraisal Costs (Table 4-3)
* Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall
Appraisal Costs
Inspection by Inspectors
Inspection by Operators / Others
Setups for Inspections and Tests
Equipment & Materials for Inspections and Tests
Samples & evaluation materials
Laboratory acceptance testing
Audits
Data review
Supplier monitoring
Supplier rating
Supplier qualifying
Quality certification preparation (ISO and others)
Quality awards
Page 11 11
Costs of Prevention (Table 4-2)
* Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall
Prevention Costs
Developing a Quality System
Implementing a Quality System
Maintaining a Quality System
Production Process design
Preventative maintenance
Calibration and correlation
Supplier quality assurance
Supplier assessments
Training
Robust design
Defect data analysis for Corrective Action
Quality system audits
Page 12 12
Individual Leadership and Quality
As you develop EXPERTISE and CONFIDENCE in your profession,you become more equipped to provide the vision, direction,
coaching, and challenge to your teams and organizations
When people look up to you, and want to follow you,give them a GOOD REASON to follow
Page 13 13
Individual Leadership and Quality
– Pick a leadership style that fits your personality and preferences
– Don’t assume that being “the boss” is a good enough reason to be followed
– Power of Expertise Be excellent at the content of the work being done by the people you lead Use your leverage as a skilled leader to make a bigger difference over a
larger footprint Equip and enable your team to do more than you could possibly do
yourself
– Understand how Rewards and Feedback influence Performance & Quality Don’t be afraid to communicate unpleasant news – it is feedback for
better performance Mix positive comments with opportunities for improvement Recognize that not all people are self-motivated, or are motivated by the
same levers Measure the right things
Page 14 14
Leadership Skills (Table 4-1)
Quadrant 1: Quadrant 2: Quadrant 3: Quadrant 4:Knowledge Communication Planning VisionAcceptance of Diversity Assertiveness Structuring (for task Assessing the climateDeveloping Competence Conflict management accomplishment) internal and external)Health / wellness Team building Decision making Identifying opportunitiesLearning style Trust building Evaluation skillsTime management Motivating others Task and time managementEthics Recruiting othersRisk taking Effective speakingCoping skills Effective writing
Effective listeningImage building
* Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall
Page 15 15
Foster, Quality Management, Fifth Edition, Prentice Hall
Supply Chain Strategic Quality Planning
Page 16 16
Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall
Supply Chain Strategic Quality Planning: Logistics
– When shipments take place
– Modes of transportation
– How shipping practices can be optimized
– Outsource warehousing and fulfillment or keep in-house
– Product packaging
Page 17 17
Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall
Supply Chain Strategic Quality Planning: Suppliers
– Preferred suppliers
– Supplier selection
– Supplier development
– Sole sourcing / single sourcing / multiple sourcing
– Technology linkage
– Global sourcing
– Supplier input to design
– Supplier cost cutting
Page 18 18
Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall
Supply Chain Strategic Quality Planning: Inventory Mgmt
– Distribution Network
– Cost
– Service levels
– Lead Times
– Product Life Cycles
– Perishable and Hazardous Material
Page 19 19
Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall
Supply Chain Strategic Quality Planning: Information Flows
– Data requirements
– System requirements
– Security
– Reliability
– Visibility upstream and downstream
– Access upstream and downstream
– Timing and governance
Page 20 20
Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall
Supply Chain Strategic Quality Planning: Products
– Differentiation with competition
– Variety
– Manufacturability
– Components
– Life cycles
Page 21 21
Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall
Supply Chain Strategic Quality Planning: Services
– Service definition along the supply chain
– Customer requirements
– Cost
– Response time
– Refurbished replacements
– Repair vs. Replace
