1TQM15.760TOTALQUALITYMANAGEMENTTHEMESFOURLEVELSOFQUALITYFOURTHOUGHTREVOLUTIONSCustomersfirstContinuousImprovementTotalParticipationSocietalLearningORGANIZATIONALMANAGEMENTInformation&MeasurementSystemsEducationIncentiveSystemsOrganizationalChange2FourLevelsofQuality1. FITNESSFORSTANDARD-inspectionoriented-noconsciousnesstocustomer/mkt2. FITNESSFORUSE-Mustsatisfycustomerneedforuse-Hotelshampoo&bodyoil3.FITNESSFORMARKET-Mustachievelowcostaswellas1&2highcostlowcost4. FITNESSFORLATENTREQ'TS-Listeningtothevoiceofthecustomer-V-8engine,Swatch-Uncoveringlatentreq'taddsvalue3==needcontinuousinnovation4TQM:FourThoughtRevolutions1.Customer-FirstRevolution(FromProduct-outtoMarket-in)market-inworkspecsjobdescrip.satisfycustomers(internal&external)meanspurposesatisfy?yesnoimproveDevelopProductproduct-outoutput52.ContinuousImprovementRevolutionFundamentalConcept:PDCA(Observe,Assess,Design,Intervene)QualityControl:Manageknownsourcesofvariation-processcontrolcharts-managementbyexception-ROIcontrolReactiveQualityManagement:Problemsolving-applicationofSQCtools(Paretoanlysis,proeessflowchart,fishbonediagrams,histograms)ProactiveQualityManagement:FindinghiddenopportunitiesMANAGEMENTBYFACT:INGODWETRUST;6ALLOTHERSBRINGDATA3.TotalParticipationRevolution-TotalInvolvementofCEO(Leadership)-QualitySpecialist----AllEmployees-BuildInfrastructure:goals,training,promotion,feedback,diagnosis,etc.74.SocietalLearningRevolutionSuccessstoriesneedwidediffusion(Baldridge,DemingAwards)InJapan:progressionthrough-Processindustries-MassProduction-SmallVolumeManufacturing-Construction-ServicesRoleofoutsidechangeagents-Deming,Juran,ShibaRoleofUniversity/IndustryConsortia-MIT:CenterforQualityManagementLeadersforManufacturing8PRINCIPLESOFLEADERSHIP1.LEADERSLEADBYEXAMPLE-LEADERSMUSTBEROLEMODELS-LIVEYOURLIFEASALEADER2.LEADERSLEADBYTHEIRCOMMITMENT-STATECLEARLYYOURCOMMITMENTS-DEMONSTRATEYOURCOMMITMENT-HONORYOURCOMMITMENTS3.SETSTANDARDSFOR-DISCIPLINE-ETHICS-ENTHUSIASM4.MAKEEACHEMPLOYEEFEELTHATHE/SHEMATTERS5.CELEBRATE/RECOGNIZEACHIEVEMENTS6.BEAGOODLISTENER7.BECONSISTENTANDPREDICTABLE9TQMGOAL:HABITUAL,CONTINUOUSIMPROVEMENTINPURSUITOFPERFECTPRODUCTION-ZeroDefects-ZeroInventories-ZeroLeadTimes&CycleTimes-ZeroInjuries-ZeroMachineDowntime-ZeroCustomerReturns-ZeroWarrantyCosts-ZeroAbsenteeism-ProcessCapability2andincr.-RapidProductIntroduction-RapidLearning-Teamwork-HighMorale10-Pride11QUALITYINFORMATIONSYSTEMSOBJECTIVE:RAPIDFEEDBACKFromCustomers:-Fieldpersonnelreports-Customerinterviews&surveysFromCompetitors/ExternalStudies:-BenchmarkingIntheProduction/DeliverySystem:RapidFeedbackSystems:Detailed,Comprehensive,Fast-Whoarecustomers/suppliers?-Fasterflowtimes==lesstracking-TightFeedbackLoops-CIMoriented--muchintegrationProvideDataon:-Defects,Downtime,Warranties,Returns-Inventories,LeadTimes,CycleTimes-Injuries,Absenteeism,Turnover-ProcessCapability,LearningRates-VendorQuality12-QualityCosts13QUALITYDECISIONTOOLSANDDATAANALYSISDEMING:SIXSQCTOOLSTHATEVERYONESHOULDKNOWANDUSE1.ParetoAnalysis2.ProcessFlowChart3.Fishbone(Cause&Effect)Diagrams4.Histograms5.ControlCharts6.ScatterPlots14WEHAVETOOLSFORTWOTYPESOFDATA:1.NUMERICALDATA-HISTOGRAMS-PARETODIAGRAMS-CONTROLCHARTS-SCATTERPLOTS-PROCESSCAPABILITY2. LANGUAGEDATA-CAUSE&EFFECTDIAGRAMS-KJ(or“LP”PROCESS(AFFINITYDIAGRAMS)MANYOFTHELANGUAGEDATATOOLSARENOTWIDELYTAUGHTINTHEWEST.15QualityEconomics-Macro:InternationalCompetitiveness-Micro:Quality/ProductivityRelation(EconomicsofDIRTFT)-CostofQuality:CarefulAnalysisandAccounting-FailureCosts-AppraisalCosts-PreventionInvestments-RevenueeffectsofqualityContributionsofTaguchi-QualityLossFunction-Two-stepprocessforparameteroptimization(controlvarianceandmean)16-OrthogonalArraysforexperimentaldesignPRODUCTDEVELOPMENTLEVERAGEAPPROXIMATELY75%OFLIFECYCLE(DESIGNANDMANUFACTURING)COSTSAREDETERMINEDDURINGTHEPRODUCTDEVELOPMENTPROCESSConcurrentDesignofProductsandProcessesWhitney&Nevins,etalMcGraw-Hill1989PRODUCTDEVELOPMENTINTHEJAPANESEAUTOMOBILEINDUSTRY(COMPAREDWITHU.S.):--25%FASTER--50%FEWERENGINEERINGHOURS(EUROPEANSAREFARTHERBEHIND)ProductDevelopmentPerformanceClark&FujimotoHBSPress199117ACTIVEPARTICIPATIONOFALLPLAYERSISCRITICALCustomer-drivenRequirementsSuppliers(VendorManagement)Company-wideInvolvement-Manufacturing-Marketing-Engineering(DesignofProducts,Processes,Systems)-Purchasing-QualityAssurance-WorkforceParticipation-DistributionandFieldService18-Personnel19CONTINUOUSTRAININGANDEDUCATION-GeneralQualityConcepts-StatisticalQualityControl-CostofQuality-ProblemSolving-DecisionMaking-Teamwork-ExperimentalDesign-ParameterOptimization-Customer/SupplierAnalysis-DesignforManufacturabilityWHOGETSWHATTRAINING?WHODOESTHETRAINING?WHODESIGNSTHECURRICULUM?MOTIVATIONFORLEARNING20SUPPLYCHAINMANAGEMENTSchonbergeronSupplierDevelopment-RELYONFEWER,BETTERSUPPLIERS-TREATTHEMLIKEFAMILY-EMPHASIZEPARTNERSHIPWITHORGANIZATIONALINTERACTIONONALLLEVELSSINGLESOURCEMULTIPLESOURCES______________________________GettoknoweachsupplierbetterQCiseasierDFMiseasierShortsupplylineslessrisktosupplierstrikes/shutdownslowers