Chapter 11 Part I Total Quality Management

Chapter 11 – Part I Total Quality Management COB 300 Busing

Problems Hidden by Inventory

Simplifying the Process • • • Plant layout Group technology U-shaped layout Reducing setup time Total preventive maintenance Simplified Process

Strategy and JIT • Quality and reliability • Flexibility – product – volume • • Dependability Asset utilization People utilization Cost minimization

Internally Oriented Definitions of Quality l l Quality is the degree to which a specific product conforms to a design or specification Differences in quality amount to differences in the quantity of some desired ingredient or attribute

Externally Oriented Definitions of Quality • Quality is fitness for use • Quality consists of the capacity to satisfy wants

A Definition of Quality Used by Many Companies Quality is consistently meeting or exceeding the customer’s needs and expectations.

Dimensions of Service Quality • • • Reliability Responsiveness Assurance Empathy Tangibles

Dimensions of Quality for Goods • • Performance Features Reliability Conformance • • Durability Serviceability Aesthetics Perceived Quality

Costs of Quality • Prevention – Planning – Procedures – Training • Appraisal – Testing – Inspection – Audits • Failure – Internal • Scrap and rework • Retests • Down time – External • • Returns Warranty work Goodwill lost Lost sales

The Background of TQM • W. Edwards Deming – System causes most defects • Joseph M. Juran – Quality planning, quality control, quality improvement • Philip Crosby – Quality is free, zero defects • Genichi Taguchi – Taguchi methods, robust design

Components of TQM • Focus on the customer • Everyone responsible for quality • Team problem solving • Employee training • Fact-based management • Philosophy of continuous improvement

Components of Continuous Improvement • Standardize and document procedures • Assign teams to identify areas for improvement • Use methods analysis and problem-solving tools • Use the Plan-Do-Check-Act cycle • Document improved procedures

The Plan-Do-Check-Act Cycle

Baldridge Award • Baldridge Award Criteria for 00

ISO 9000 Standards 9000 -1: Guidelines 9001: Design through installation and testing 9002: Production through installation and testing 9003: Distributors 9004 -1: Model of quality management system

Comparing Baldrige, ISO 9000 and TQM • Baldrige – U. S. Quality Award – Focus on outcomes • ISO 9000 – International standards – Focus on documentation of processes • TQM – Organizational quality philosophy – Foundation of Baldrige criteria

Chapter 11 – Part II Quality Control COB 300 C - The Operations Dimension Busing

Causes of Variation • Random Causes – difficult or expensive to control – e. g. , outside humidity, line voltage • Assignable Causes – easier to correct – e. g. , employee error, new materials

Comparing Process Variation to Tolerance Limits

High Process Capability After Technological Process Change

Control Charts • Variables - concentrates on mean for some measurable characteristic. – diameter – length • Attribute - data is based on counts or the number of times we observe a particular event. – proportion defective/non-defective – go/no go – proportion pass/fail

Control Limits - Variables Charts X-Bar Chart R Chart

Factors for Control Limits (Slide 1 of 2) Sample of Size n 2 3 4 5 6 7 8 9 10 A 2 D 3 1. 880 1. 023 0. 729 0. 577 0. 483 0. 419 0. 373 0. 337 0. 308 0 0 0. 076 0. 136 0. 184 0. 223 D 4 3. 268 2. 574 2. 282 2. 114 2. 004 1. 924 1. 864 1. 816 1. 777

x-bar Chart Example (cont’d)

Range Chart

Warning Conditions • Two successive points near limit • Run of five above or below mean • Trend • Erratic behavior

Process Control for Attributes Proportion defective: Number of defects per unit:

Homework • Chapter 11 – 4, 8, 9