Total Quality Management Lecture 2 Types of Quality

Total Quality Management Lecture #2

Types of Quality Control Product Quality Control – Product Control focuses on the output Process Quality Control – Process Control focuses on the input Inputs Materials Personnel Equipment Methods Information Environment Transformation Together produce Outputs Products and/or services

Product/Process Control Emphasizes defect detection Is after the fact High proportion of cost incurred Compares product/service to specification External to process Reactive Emphasizes prevention Minimizes potential for defects Reduce costs Compares process results to past process performance Variation oriented Proactive

Total Quality Management (TQM) Customer expectations in the new economy: – Products/services must be delivered quickly (Fast) – Products/services must have no defects (Right) – Products/services must be inexpensive (Cheap) – Products/services must be easy to use (Easy) Focus of the organization is to meet or exceed the expectations of its customers.

TQM Statistical Quality Control – looking for defects in parts or products selected through sampling techniques Statistical Process Control – using statistics to monitor production and making corrections when the process is out of control Zero-Defects (six sigma) – working to eliminate essentially all defects

“Japanese Model” compared to U. S. Traditional Japanese management is becoming Westernized Mainly applies to larger Japanese corporations

Employment Japan: Lifetime employment U. S. : Short term employment

Careers Japan: Non-Specialized career path Life long job rotation U. S. : Specialized careers

Evaluation & Promotion Japan: Group evaluation & promotion U. S. : Individual evaluation & promotion

Decision Making Japan: Participative decision making U. S. : Teams Individual decision making

Participative Decision Making Newest member of department is given charge of decision process Meets several times with every member of the department

Participative Decision Making 1) I believe that you understand my point of view 2) I believe that I understand the other points of view

Participative Decision Making 3) Whether or not I agree with the decision, I will support it, because it has been arrived at in a fair and open manner

Benefits to New Member Gets to know other everyone else Acquires an in-depth knowledge of an issue

Benefits to Department New member becomes a valuable asset to the department and a resource to others

Auto Industry

Auto Industry Differences Japan vs. U. S. practices

# of suggestions per worker per year Japan: U. S. : 329 2

Training Hours Japan: 370 U. S. : 46

Tangible/Intangible Costs Rework/repair Scrap/discarded material Overtime to remake products Returns/warranty costs Time spent waiting Lost reputation Lost potential sales Lost opportunity for new markets Inability to attract good employees

Deming’s 14 Points for Management Create constancy of purpose for improvement of product and service Adopt the new philosophy Cease dependence on mass inspection to achieve quality End the practice of awarding business on the basis of price tag

Deming’s 14 Points for Management (cont. ) Improve constantly Institute training on the job Institute leadership Drive out fear Break down barriers between departments

Deming’s 14 Points for Management (cont. ) Eliminate slogans, exhortations, and targets for the work force. Eliminate work quotas Remove barriers that rob workers of pride of workmanship. Institute a vigorous program of education and self-improvement Put everyone to work transforming the company

Malcolm Baldridge National Quality Award An annual award administered by the U. S. Department of Commerce and given to manufacturing, service, or small business companies that meet the following 7 criteria: leadership information and analysis strategic planning human resource development and management process management business results customer focus and satisfaction