85 terms

Total Quality Management

Chapter 5 of Operations Management 4th Edition Reid / Sanders
STUDY
PLAY
TOTAL QUALITY MANAGEMENT
An integrated effort designed to improve quality performance at every level of the organization
Customer defined quality
The meaning of quality as defined by the customer
Conformance to specifications
How well a product or service meets the targets and tolerances determined by its designers
Fitness for use
A definition of quality that evaluates how well the product performs for its intended use
Value for price paid
Quality defined in terms of product or service usefulness for the price paid
Support services
Quality defined in terms of the support provided after the product or service is purchased
Psychological criteria
A way of defining quality that focuses on judgemental evaluations of what consitutes product or service excellence
Prevention Costs
Costs incurred in the process of preventing poor quality from occurring
Appraisal costs
Costs incurred in the processs of uncovering defects
Internal failure costs
Costs associated with discovering poor product quality before the product reaches the customer
External failure costs
Costs assocaited with quality
Customer Focus
Goal is to identify and meet customer needs
Continuous improvement
a philosophy of never ending improvement
Employee empowerment
Employees are expected to seek out, identify, and correct quality problems.
Robust design
A design that results in a product that can perform over a wide range of conditions
Taguchi Loss function
Costs of quality increase as a quadratic function as conformance values movde away from the target
Kaizen
A japanese term that describes teh notion of a company continually stiving to be better through learning and problem solving
Plan do study act cycle
A diagram that describes teh activities that need to be performed to incorporate continuous improvement into the operation
Benchmarking
studying the busienss practices of other companies for purposes of comparision
Quality circle
A team of volunteer production employees and their supervisors who meet regularly to solve quality problems
Cause and effect diagrams
A chart that identifies potential causes of particular quality problems
Flow chart
a schematic of the sequence of steps involved in an operation or process
Checklists
A list of common defects and the number of observed occurances of these defects
Control charts
Charts used to evaluate whether a process is operating within set expectations
Scatter diagrams
graphs that show how two variables are related to each other
Pareto analysis
A technique used to identify quality problems based on their degree of importance
Histogram
A chart that shows the frequency distribution of observed values of a variable
Quality function deployment (QFD)
A tool used to translate the preferences of the customer into specific technical requirements
Quality function deployment (QFD)
Is useful in enhancing communication between different functions, such as marketing, operations, and engineering
Scatter graphs
these graphs are useful in detecting the amount of coorolation, or the degree of linear relationships, between two variables.
Control charts
Tool to measure value value such as weight, width, or volume to study if a process is operating within expectations
Reliability
The probability that a product, service, or part will perform as intended
Redundancy
Built into the system by placing compenebts in parallel so that when one component failes the other component takes over
Quality at the source
The belief that it is best to uncover the source of quality problems and eliminate it
managing supplier quality
Extends concept of quality to company suppliers and esnure that they engage in teh same quality practices.
Malcom bridge National Quality Award
An award given annually to comapnies that demostrate qualuty excellence and establish best practice standards in industry
Deming Prize
A japanese award given to companies to recognize efforts in quality improvement
ISO 9000
A set of international quality standards and a certification demostrating that companies have met all teh standards specified
ISO 14000 Standards
A set of international standards and a certification focusing on a companys environmental responsibility
Causes of TQM failure
Lack of geniune quality culture, lack of top management support and commitment, over and underreliance on statistical process control methods
Walter A Shewhart
Contributed to understanding of process variability and developed concept of statistical control chart
W Edwards Deming
Stressed managements responsibility for quality and developed teh 14 points to guide companies in quality improvement
Joseph M Juran
Defined quality as fitness for use and developed concept of cost of quality
Armand V Feigenbaum
Introduced concept of total quality control
Phillip B Crosby
Coined phrase "quality is free" and introduced concept of zero defects
Kaoru Ishikawa
Developed cause and effect diagrams and identified concept of internal customer
Genichi taguchi
Focused on product design quaity and developed Taguchi loss function
Psychological
Ambiance, prestige, friendly staff is an example of
Service organization
Quality often defined by perceptional factors like courtesy, friendliness, promptness, waiting time, consistency is from what type of organization
TQM basic concept
Customer focus
Continuous improvement
Employee empowerment
Use of quality tools
Product design
Process management
Managing supplier quality
Tools of Quality control
Cause-and-Effect Diagrams
Flowcharts
Checklists
Control Charts
Scatter Diagrams
Pareto Analysis
Histograms
Cause and effect diagram
Called Fishbone Diagram
Focused on solving identified quality problem
Flowcharts
Used to document the detailed steps in a process
Often the first step in Process Re-Engineering
Checklist
Simple data check-off sheet designed to identify type of quality problems at each work station; per shift, per machine, per operator
Control Charts
Important tool used in Statistical Process Control
The UCL and LCL are calculated limits used to show when process is in or out of control
Pareto Analysis
Technique that displays the degree of importance for each element
Named after the 19th century Italian economist
Often called the 80-20 Rule
Principle is that quality problems are the result of only a few problems e.g. 80% of the problems caused by 20% of causes
Histograms
A chart that shows the frequency distribution of observed values of a variable like service time
at a bank drive-up window
Displays whether the distribution is symmetrical (normal) or skewed
Product Design - Quality Function Deployment
encompasses
Customer requirements
Competitive evaluation
Product characteristics
Relationship matrix
Trade-off matrix
Setting Targets
MBNQA
Award named after the former Secretary of Commerce - Regan Administration
W. Edwards Deming
worked to improve Japanese quality after WWII
TQM impacts
Marketing - providing key inputs of customer information
Finance - evaluating and monitoring financial impact
Accounting - provides exact costing
Engineering - translate customer requirements into specific engineering terms
Purchasing - acquiring materials to support product development
Human Resources - hire employees with skills necessary
Information systems - increased need for accessible information
Effective Total Quality Management (TQM) programs
integrated, to improve quality, at all levels
Customers
A product's quality standard is best defined by:
satisfies design tolerances
A product that conforms to specifications if it
support services
Consumers whose warranty cards were lost by the company would judge the firm poorly in terms of
Better or Worse
Customers' individual psychological criteria may make product quality seem __________ than objective measurements
Benchmarking
Companies that study competitors' processes to improve themselves are
Employee Empowerment
Encouraging employees to find and correct quality problems is called
control limits
A process is said to be in control if its measured results are between
QDF and reliability
Product design functions include
redundancy, increases
Components that work in parallel with each other introduce ____ that ____ reliability.
ADDING
The reliability of redundant (parallel) components is found by _____ their individual reliabilities. (Note: division uses the larger reliability in the numerator. Subtraction results in a positive value.)
W. Edwards Deming
The Union of Japanese Scientists and Engineers recognizes companies for their quality improvement efforts with a prize named for:
Environmental responsibility
ISO 14000 focuses on management and environmental systems and operations standards to evaluate a company's
quality culture and top management support, statistical methods inefficiently
TQM programs fail because they lack _____ while using _____
Supply chain members
TQM is most successful when it is applied by all:
Relationship matrix
Strength of relationsio between customer requirements and product characteristics
Trade off matrix
Shows how each product characteristic is related to teh othres and thus allows us to see what trade offs we need to make
Conformance to specifications
One common definition of quality is , which focuses on measuring how well the product or service meets targets and tolerances determined by its designers
Reliability
The definition of quality that involves the product functioning as expected without failure is
durability
The expected operational life of a product is called
Became more statistical in nature
During World War II, quality
Proactive
TQM is , designed to build quality into the product and process design
Kaizen
The Japanese term for continuous improvement is
Internal Customers
Employees of the organization who receive goods or services from others in the company are