OM CH 5 Total Quality Management

Total Quality Management
TQM is an integrated effort designed to improve quality performance at every level of the organization. Customer-defined quality is the meaning of quality as defined by the customer.
Quality
conformance to specifications, fitness for use, value for price paid, support services, psychological criteria
Conformance to specifications
measures how well a product or service meets the targets and tolerances determined by its designers.
Fitness for use
evaluates performance for intended use.
Value for Price Paid
evaluation of usefulness vs. price paid.
Support services
quality of support after sale.
Psychological criteria
ambiance, prestige, friendly staff.
Manufacturing quality
conformance to specifications, performance, reliability, features, durability, serviceability
Conformance to specifications
which is the degree to which a product characteristic meets preset standards.
Performance
such as acceleration of a vehicle.
Reliability
that the product will function as expected without failure.
Features
the extras that are included beyond the basic characteristics.
Durability
the expected operational life of the product.
Serviceability
how readily a product can be repaired.
Service Quality
intangible factors, consistency,responsiveness to cusomer needs, courtesy/friendliness, timeliness/promptness, atmosphere
Intangible factors
makes defining quality difficult.
Consistency
the degree to which the service is the same each time.
Responsiveness to customer needs
needs attentive to needs and complaints.
Courtesy/friendliness
of staff.
Timeliness/promptness
in resolving complaints.
Atmosphere
environmental setting.
Early detection
is less costly *maybe by a factor of 10
Quality control costs
costs necessary for achieving high quality.
Prevention costs
are costs of preparing and implementing a quality plan or preventing poor quality from occurring.
Appraisal costs
are costs of testing, evaluating, and inspecting quality or of uncovering defects.
Quality failure costs
cost consequences of poor quality.
Internal failure costs
are costs of scrap, rework, and material losses or from discovering poor product quality before the product reaches the customer.
External failure costs
are costs of failure at customer site, including returns, repairs, and recalls or that is associated with quality problems that occur at the customer site.
W. Edwards Deming
stressed management’s responsibility for quality; developed “14 points” to guide companies in quality improvement. 80% of the problems are identified in the process area. The “father of quality control.”
Phillip B. Crosby
coined the phrase “quality is free”; introduced concept of zero defects. Developed the phrase “do it right the first time”, and the notion of zero defects, arguing that no amount of defect should be considered acceptable.
TQM Philosophy (focus/concepts)
Customer focus, continuous improvement, employee empowerment, use of quality tools, product design, process management, and managing supplier quality
Customer focus
is the goal to identify and meet customer needs.
Continuous improvement
is a philosophy of never-ending improvement.
Employee empowerment
is the concept that employees are expect to seek out, identify, and correct quality problems.
Quality tools
is ongoing employee training in the use of quality tools.
Product design
is when products need to be designed to meet customer expectations.
Process management
is when quality should be built into the process; sources of quality problems should be identified and corrected. Intermittent/Repetitive.
Managing supplier quality
is when quality concepts must extend to a company’s suppliers.
Deming Wheel (PDSA)
cycle is a diagram that describes the activities that need to be performed to incorporate continuous improvement into the operation.
Plan
managers must evaluate the current process and make plans based on any problems they find.
Do
implementing the plan.
Study
study the data collected in the do phase.
Act
act on the basis of the results from the first three phases.
Team approach
stresses that quality is an organizational effort.
Quality circle
is a team of volunteer production employees and their supervisors
Cause-and-effect (fishbone) diagram
is a chart that identifies potential causes of particular quality problems.
Flowchart
is a schematic of the sequence of steps involved in an operation or process.
Checklist
is a list of common defects and the number of observed occurrences of those defects.
Control charts
are used to evaluate whether a process is operating within set expectations.
Scatter diagram
are graphs that show how two variables are related to each other.
Pareto analysis
is a technique used to identify quality problems based on their degree of importance. 80/20 Rule 80% of your problems are caused by 20% of your problems.
Histogram
is a chart that shows the frequency distribution of observed values of a variable.
Quality function deployment (QFD)
is a tool used to translate the preferences of the customer into specific technical requirements.
Customer requirements
we need to survey our customers to find out specifically what they want in a product.
Competitive evaluation
an evaluation of how the product compares to those of competitors.
Product characteristics
technical measures.
The relationship matrix
the strength of the relationship between customer requirements and product characteristics.
The trade-off matrix
shows how each product characteristic is related to the others and thus allows us to see what trade-offs we need to make.
Setting targets
evaluate competitors” products relative to the specific product characteristic and to set targets for our own product.
Reliability
is the probability that a product, service, or part will perform as intended. No product is 100% certain to function properly. Reliability of a system is the product of component reliabilities.
ISO 9000 Standards
is a set of international quality standards and a certification demonstrating that companies have met all the standards specified.
ISO 14000 Standards
is a set of international standards and a certification focusing on a company’s environmental responsibility.