Notes for 1/26 and 1/28 of TQM
Notes for 1/26 and 1/28 of TQM Mgt 455
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This 8 page Class Notes was uploaded by Brianna Notetaker on Sunday January 31, 2016. The Class Notes belongs to Mgt 455 at Western Illinois University taught by Baril in Winter 2016. Since its upload, it has received 19 views. For similar materials see Total Quality Management in Business, management at Western Illinois University.
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Date Created: 01/31/16
Chapter 2 Frameworks for Quality and Performance Excellence Quality Policy→ Formal Document that demonstrates a commitment to achieving high quality and meeting customer expectations Quality Manual→ Permanent reference for implementing and maintaining a system Important Names Demings→ Helped Japan rebuild after WW2, statistician Juran →Worked at same electric plant as Demings Crosby→ International Telephone and Telegraph (ITT) Demings’ Teachings “A product of a service has quality if it helps somebody and enjoys a good and sustainable market” System of Profound Knowledge Appreciation for a System (Understand that all parts are interrelated) Understanding Process Variation and how variation increases defects Theory of Knowledge (Use Data for decisions, not opinions) Psychology o Understand people o Understand social interpretations of situations o Nurture and Preserve positive attributes such as the right to enjoy work System→ Set of functions or activities within an organization that work together to achieve organizational goals Have an aim to strive toward For optimization, a whole system must be considered, when only the parts are considered it is called sub-optimization and it is not (as) effective Variation Common Causes→ unavoidable, general wear and tear Assignable (Special) Causes→ Can trace issue back to a source, very bad o Statistically able to detect o Less expensive in the long run to remove o Makes unusable product 14 Points for Management Commitment on all levels Learning New Philosophy (New ideas) Understand Inspection→ Less expensive to build a product to specifications than to maybe catch them at the end and throw the product away or give them to a customer End-Price Tag Decisions→ Buy Quality, not just inexpensive Constant Improvement→ The system is NEVER good enough Institute Training o Train for more than just the basics o Increases job satisfaction o Increases retention o Cross-functional employees are more useful Institute Leadership→ Be a coach, not a police officer Drive out fear→ o Fear leads to selfishness o Bad work o Penalties aren’t good for motivation/rewards are Optimize team efforts→ o Break barriers o Facilitate Communication Eliminate Quotas and Management By Objective→ Stop short term goals and enact long term excellence goals Institute Education→ Job Satisfaction Take Action→ When an opportunity arises or when an individual makes a good suggestion Juran Teachings Management talks in money vs. Workforce talks in things Quality is ‘Fitness for use” Quality of Design o Product Concept o Market Research o Design Specifications Quality of Conformance o Technology o Manpower o Management Availability o Reliability o Maintainability o Logistical support Field Service o Promptness o Competence o Integrity Quality Trilogy Quality Planning→ The process for preparing to meet quality goals o Identifying Internal/External Customers o Determining Customer needs o Meeting needs through design Quality Control→ The process for meeting quality goals during operations o Determine what to control o Establish units of measurement o Measure Performance o Interpret the difference between the actual and the standard and act on it Quality Improvement→ The process for breaking through to unprecedented levels of performance o Identify specific projections for improvement o Team involvement of specific members o Diagnose causes of poor performance o Develop remedies for causes o Prove remedial effectiveness o Provide control to hold improvements Crosby Teachings Crosby Absolutes to Quality Management Quality means conformance to requirements, not elegance→ You can’t just feel excellent, standards must be made and met/exceeded There is no such things as a quality problem→ There are functional problems in departments aside from quality control causing problems There is no such thing as “economics of quality”→ it is always cheaper to do it right the first time The only performance measurement is the cost of Quality→ The measure of performance is the cost of non-conformance (not doing it right the first time) Baldrige Award→ For Quality based on Criteria for performance excellence For Malcolm Baldrige (Former Secretary of Commerce) Purpose; o Stimulate American companies to improve Quality and Productivity for the pride of recognition while obtaining a competitive advantage through increased profits o Recognize Quality in companies and provide examples to others o Establish multi-=industry criteria to evaluate companies on o Provide enterprise guidance Results; o Ever-improving value to customers o Contributing to market success o Improvement of overall company performance and capabilities o Organizational and personal learning Categories, items, and areas to address o Leadership→ Senior leaders o Strategic planning o Customer Focus o Measurement, Analysis, and knowledge management→ help respond to rapid changes and emergencies o Workforce focus→ Effective and supportive environment o Results→ Provides results focus that encompasses objective evaluation and customers’ evaluations of an organizations’ product offerings Each Criteria is evaluated by; o Approach o Deployment o Learning o Integration o Results Distinguishing Characteristics o Achievement in results o Entrepreneurship and Innovation o Agility o Governance and Leadership Metrics o Work Systems and Processes o Sustainability o Workforce and customer engagement Where Baldrige and Deming Meet Statement of Purpose Learn new philosophy Understand Inspection End Price Tag decisions Improve constantly Institute training Teach and institute leadership Drive out fear Innovate Optimize team and staff efforts Eliminate exhortations Eliminate quotas and MBO Remove barriers Encourage education Take action ISO Objectives Provide discipline Basics of Good Quality System Good Marketing program Creating a manual Six Sigma→ Eliminate defects and errors based on statistics of less than 3.4 defects per million and is excellent in terms of documenting In order to improve a process, it has to be measurable and repeatable Define Measure Analyze Improve Control Breakdown of improvement strategies Baldrige→ Overall excellence ISO→ Conformity Six Sigma→ Measuring quality, driving improvements, and savings Need to Know Terms JUSE→ Union of Japanese Scientists and Engineers CWQC→ Company-Wide Quality Control QIP→ Quality Improvement Process EFQM→ European Foundation for Quality Management NQO→ Canada’s National Quality Institute CAQ→ Chinese Association for Quality QMS→ Quality Management System Chapter 3 Tools and Techniques for Quality Design and Control Process Management→ Involves design, control, and improvement; it is the key activities necessary for high performance in key value creation and support processes Design for Six Sigma Concept Development→ Functionality of product (what do we need it do do?) Design Development→ Performance issues necessary to fill the product or service requirement (How will it do it?) Design Optimization→ Robust design (How can we produce it large-scale and make sure it works?) Design Verification→ Production system can perform as necessary (Can our production process handle this?) Concept Development→ The process of applying scientific, engineering, and business knowledge to produce a basic functional design that meets customer needs and manufacturing or service delivery requirements Creativity→ Perceiving things in new and novel ways Innovation→ Adopting an idea, process, technology, product, or business model that is either new or new to its proposed application Types of Innovation; o Entirely new product (Like the Telephone) o First type on the market, not a new idea (VHS vs. Betamax) o Significant Improvement (cell phone to smartphone) o Modest Improvement (zune to Ipod) The language of the statistical process of quality control is STATISTICS Deming would say that conformity and elimination variation is how to achieve quality Juran stated that we find quality through “Fitness for use” Quality Function Deployment (QFD)→ A methodology used to ensure that customers’ requirements are met throughout the product design process and in the design and operation of the production systems Voice of the Customer→ understanding Customer requirements and integrating them into the system Design Failure Mode and Effects Analysis (DFMEA)→ Identify how a product fails, determine the seriousness of the failure, and how to fix it Process can be improved only if it is; Measureable Repeatable Design for Manufacturability (DFM)→ Process of designing a product for efficient production at the highest level of quality Design for Environment→ Sustainability efforts, recyclable products, and working toward general greening Designing for services Outputs are not as well-defined High amount of interactions with customers Service process design o Physical facilities, processes, and procedures o Employee behavior o Employee professional judgement Design for agility→ Short cycle times and flexibility in designing products Poka-Yoke→ Mistaking-proofing automatic devices or avoiding; human or machine error, errors in identification, lack of experience, absentmindedness, delays, or malfunction Prediction→ Warning of potential error or failure Recognizing→ An error or failure has already occurred Service errors Server-Customer relationship Tangible→ Something wrong with the order or a bad physical presentation Customer Error→ Customer believes he/she specified something that was not specified Control→ Ensuring performance to specifications Control System Set a Standard Goal Set a system of Measurement Find a comparison (industry average is one example) Avoid suboptimization, systems work together and need to be considered together Because variation exists no matter what, attempt to avoid the cause of the problem, not the symptoms; Statistics helps determine if the error is common or assignable Bullwhip effect→ Small wrong actions can create large effects further down the line Statistical Process Control (SPC)→ Monitors process variations in order to identify if a special cause is present Need to Know Terms DMADV→ Define, Measure, Analyze, Design, and Verify DMEDI→ Define, Measure, Explore, Design, and Implement NIST→ National Institute Standards and Technology
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