Total Quality Management A A Elimam To accompany

Total Quality Management A. A. Elimam To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

Definitions of Quality ·Conformance to Specifications ·Value ·Fitness for Use ·Support ·Psychological Impressions To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

How Quality Assurance Evolved • • • 1800’s: skilled craftsmen Industrial Revolution: factory System 100% Inspections 1900’s: Larger Organizations 1920’s Bell Lab Statistical Quality Control – Shewhart Control Charts (1924) – Dodge & Romig Acceptance Sampling (1930) • Separate QC department & Manager • World War II: Growing Concern for Quality • Quality Awards in Japan, USA & other countries To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

Plan Deming Wheel Act Do Check To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

Machining Inspection Material Repair handling Total time Continuous Improvement Projects Current situation Reduce material handling time Reduce repair time Reduce inspection time Continuous improvement To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

Cost of detection (dollars) Costs of Detecting Defects Process Final testing Customer When defect is detected To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

QUALITY IMPROVEMENT TOOLS • CHECK OR TALLY SHEET • CAUSE-AND-EFFECT DIAGRAM • STATISTICAL TOOLS: HISTOGRAMS, CONTROL CHARTS To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

Cause-and-Effect Diagrams Machines Personnel Effect Materials Process To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

King Tut Airlines Equipment Personnel Passenger processing at gate Aircraft late to gate Other Late cabin cleaners Mechanical failures Unavailable cockpit crew Weather Late cabin crew Air traffic delays Poor announcement of departures Late baggage to aircraft Weight/balance sheet late Delayed check-in procedure Late fuel Waiting for late passengers Late food service Materials Delayed flight departures Procedures To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

MINA Fiber Board Co. Checklists Headliner Defects Defect type Tally Total A. Tears in fabric //// 4 B. Discolored fabric /// 3 C. Broken fiber board //// //// / 36 //// // 7 D. Ragged edges Total 50 To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

MINA Fiber Board Co. Pareto Chart 40 100 80 C 30 60 20 40 10 0 D A Defect type 20 B Cumulative percentage Number of defects 50 0 To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

70 (64) A Pareto Chart 50 40 30 s on si ra ab at m rfa ce e ct iv (2) er ia ls s or er r to r ca l ne (3) De fe e iv ac hi ec t ra pa rts si De f M W ro ng di or m en De s ig n on s 0 (6) Su (10) ra tio ns 10 O pe (13) ib 20 Po Percent defective 60 Causes of poor quality To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

MINA Fiber Board Co. Cause-and-Effect Diagram People Materials Training Out of specification Not available Absenteeism Communication Machine maintenance Humidity Schedule changes Broken fiber board Machine speed Wrong setup Other Process To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

MINA Fiber Board Co. Bar Chart Number of defects 20 15 10 5 0 First Second Shift Third To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

Deming’s 14 Points · Create constancy of purpose · Adopt a new philosophy · Cease dependence on mass inspection · End the practice of buying on price alone · Use statistical methods to find problems and continually improve To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

Deming’s 14 Points · Institute modern methods of on-thejob training · Improve supervision · Drive out fear · Break down barriers · Eliminate numerical goals and slogans To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

Deming’s 14 Points · Eliminate work standards that simply set quotas · Remove barriers between employees and their pride of workmanship · Institute a vigorous program of education and retraining · Structure management to continually support these points To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

Prominent Quality Experts (“Gurus”) • J. M. Juran: focus on quality: – Planning: set quality level & design the production process to achieve it - annual quality program – Control: use SQC to ensure product quality meets standards as while in production – Improvement: Study & analyze problems & implement a remedy. 100’s of Quality Improvements projects going on in a company. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

Prominent Quality Experts (“Gurus”) • P. B. Crosby: Quality is free - “absolute Quality management’ – First: Quality - conformance to requirements – Second: Prevention to achieve quality (with the help of SQC) – Third: ZERO defects is achievable – Finally: quality must be measured. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

Prominent Quality Experts (“Gurus”) • A. V. Feigenbaum: TQC – all areas in company emphasize quality – quality at the source – quality problems: workers/supervisors stop line To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

Prominent Quality Experts (“Gurus”) • K. Ishikawa: Quality Circles, Fishbone Diagram & graphical analysis of quality problems • G. Taguchi: Use product & process design to achieve high quality at lowest cost. Quality is achieved with product uniformity around a target – Loss function (all costs of poor quality) – set production process to achieve uniformity To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

Quality Awards • The Deming Application Prize: (1957) Annual- meet set of standards for successful application of SQC. Three major categories: individuals in Japan, organizations in Japan, overseas organizations. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

Quality Awards • The Malcolm Baldrige National Quality Award: (1987) Given annually to up to 2 companies in manufacturing, service and small business. Criteria include: soundness of approach to quality improvement, quality management program & its implementation and customer satisfaction. To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

Quality Awards • The president’s Award for Quality: (1988) recognize US federal Government agencies with >500 workers • The IIE Award for Excellence in Productivity Improvement: (1980) • NASA’s Quality and Excellence Awardfor quality among suppliers To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

ISO 9000 Standards • International Organization for Standardization (ISO) - 90 member countries • Purpose of ISO: Global agreement on international standards • system to certify suppliers to meet quality management standards To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

ISO 9000 Standards • First published in 1987 in 4 subsections • ISO 9001: Quality systems - Model for Quality Assurance in Design/Development, Production, Installation, and Servicing widest scope of application • ISO 9002: Quality systems - Model for Quality Assurance in Production and Installation • ISO 9003: Quality systems - Model for Quality Assurance in Final Inspection and Test • ISO 9004: Quality systems - Quality Management & Quality System Elements Guidelines To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

ISO 9000 Accreditation • Originally customers would evaluate the quality systems of their suppliers • Some EC countries (e. g. UK) require an accredited registrar to assess (for a fee) a company’s quality system & its compliance with ISO 9000 • Certificate is issued to company meeting ISO • Company becomes ISO Registrars • In the future virtually all products exported to the EC will require certification To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.

Gaining The Competitive Edge • In the US many of the applicants for the Baldrige Award also apply for ISO 9000 registration. • Two complement each other with the same goals of commitment to total quality & customer satisfaction • ISO 9000: documentation, the standardization and the common language needed to establish a quality management system • The Baldrige criteria focus more on continuous improvement, measurement of processes and strategic planning To accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Fourth Edition 1996 Addison-Wesley Publishing Company, Inc. All rights reserved.