Total Quality Management Summary

question

Total Quality Management (TQM)
answer

– never-ending pursuit of quality that involves everyone in an organization from supplier to customer – philosophy of continual effort to improve quality and achieve customer satisfaction
question

Seven Concepts of TQM
answer

1. continuous improvement 2. six sigma 3. employee empowerment 4. benchmarking 5. just-in-time 6. taguchi concepts 7. knowledge of tqm tools
question

Continuous Improvement
answer

– represents continual improvement to the process of converting inputs into outputs and customer satisfaction – involves all operations and work units – other names include kaizen, zero-defects, siz sigma – kaizen describes the ongoing process of unending improvement
question

Shewhart’s PDCA Model
answer

1. plan: plan a change aimed at improvement 2. do: execute the change 3. check: study the results, did it work? 4. act: institutionalize the change, abandon, or do it again
question

Six Sigma
answer

– statistical definition of a process that is 99.9997% capable, 3.4 defects per million opportunities – program designed to reduce defects, lower costs, and improve customer satisfaction – comprehensive system for achieving and sustaining business success
question

Six Sigma Discipline (DMAIC)
answer

1. defines the project’s purpose, scope, and outputs, identifies the required process information, keeping in mind the customer’s definition of quality 2. measures the process and collects data 3. analyzes the data ensuring repeatability and reproducibility 4. improves by modifying or redesigning existing processes and procedures 5. controls the new process to make sure performance levels are maintained
question

Six Sigma Implementation
answer

– emphasize defects per million opportunities (dpmo) as a standard metric – provide extensive training – focus on corporate sponsor support – create qualified process improvement experts – set stretch objectives *this cannot be accomplished without major commitment from top level management
question

Employee Empowerment
answer

– getting employees involved in product and process improvements – talk to workers, support workers, let workers make decisions, build teams and quality circles
question

Quality Circles
answer

– group of 6-12 employees from same work area – meet regularly to solve work-related problems (approx 4 hours per month) – facilitator trains and helps with meetings
question

Benchmarking
answer

– selecting best practices to use as a standard for performance – steps: determine what to benchmark, form benchmarking team, identify benchmarking partners, collect benchmarking information, take action to meet or exceed benchmark
question

Best Practices for Resolving Customer Complaints
answer

– make it easy for clients to complain – respond quickly to complaints – resolve complaints on first contact – use computers to manage complaints – recruit the best for customer service jobs
question

Just-In-Time (JIT)
answer

– relationship to quality: jit cuts the cost of quality, jit improves quality, better quality means less inventory and better, easier-to-employ jit system – pull system of production scheduling including supply management (production only when signalled) – allows reduced inventory levels (inventory costs money and hides process and material problems) – encourages improved process and product quality
question

Taguchi Concepts
answer

– engineering and experimental design methods to improve product and process design (identify key component and process variables affecting product variation) – quality robustness, quality loss function, target-oriented quality
question

Quality Robustness
answer

– ability to produce products uniformly regardless of manufacturing conditions – product insensitive to environmental factors (small variations in materials and process do not destroy product quality)
question

Quality Loss Function
answer

– shows that costs increase as the product moves away from what the customer wants – costs include customer dissatisfaction, warranty and service, internal scrap and repair, and costs to society – traditional conformance specifications are too simplistic – shows social cost of deviation from target value – assumptions: most measurable quality characteristics have a target value, deviations from target value are undesirable
question

Tools of TQM
answer

– tools for generating ideas: check sheets (organized method of recording data), scatter diagrams (graph value of one variable vs another), cause and effect diagrams (used to find problem sources and solutions, identifies process elements that might effect outcome) – tools to organize the data: pareto charts (vertical bar chart showing relative importance of problems or defects, makes identifying and solving them easier), flow charts (process diagram, describes the steps in a process, depicts activity relationships) – tools for identifying problems: histogram (distribution showing the frequency of occurrence of a variable), statistical process control chart (chart with time on the horizontal axis to plot values of a statistic)
question

Statistical Process Control (SPC)
answer

– uses statistics and control charts to tell when to take corrective action – drives process improvement – four key steps: measure the process, when a change is indicated find the assignable cause, eliminate or incorporate the cause, restart the revised process
question

Quality Function Deployment (QFD)
answer

– product design process using cross-functional teams (marketing, engineering, etc) – translates customer preferences into specific product characteristics – involves creating 4 tabular matrices or houses (breakdown product design into increasing levels of detail)
question

Inspection
answer

– involves examining items to see if an item is good or defective – detects a defective product (does not correct deficiencies in process or product since it is expensive) – issues include when to inspect and where in process to inspect
question

When and Where to Inspect
answer

1. at the supplier’s plant while the supplier is producing 2. at your facility upon receipt of goods from the supplier 3. before costly or irreversible processes 4. during the step-by-step production processes 5. when production or service is complete 6. before delivery from your facility 7. at the point of customer contact
question

Problems with Inspection
answer

– worker fatique – measurement error – process variability – cannot inspect quality into a product – robust design, empowered employees, and sound processes are best solutions
question

Source Inspection
answer

– “source control” – next step in process is your customer – ensure perfect product to your customer – poka-yoke is the concept of foolproof devices or techniques designed to pass only acceptable product – checklists ensure consistency and completeness
question

TQM in Services
answer

– service quality is more difficult to measure than the quality of goods – service quality perceptions depend on intangible differences between products, intangible expectations customers have of those products
question

Service Quality
answer

– operations manager must recognize the tangible component of services is important, the service process is important, the service is judged against the customer’s expectations, exceptions will occur – determinants include reliability, tangibles, responsiveness, competence, access, courtesy, communication, credibility, security, understanding/knowing the customer
question

Service Recovery Strategy
answer

– managers should have a plan for when services fail – learn: listen, empathize, apologize, react, notify

Get instant access to
all materials

Become a Member