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Company Wide Quality Management
Company Wide Quality Management
IMPORTANCE OF QUALITY
Fundamental Concern of Management Worldwide
a) Quality
b) Delivery
c) Cost
CONCEPT OF QUALITY Responses on Definition of Quality: 1. 2. 3. 4. 5. 6. 7. 8. 9. Perfection Consistency Eliminating Waste Speed of Delivery Compliance with Policies and Procedures Providing a Good, Usable Product Doing it Right First Time Delighting or Pleasing Customers Total Customer Service or Satisfaction
WHAT IS QUALITY? Most Managers agree to pursue quality is to satisfy customers. American Society for Quality (ASQ) and American National Standards Institute (AWSI) define quality as the totality of features and characteristics of a product that bears on its ability to satisfy stated or implied needs of customer.
Conformance to requirements.
DEFINING QUALITY
Conformance To Specifications - does the product/service meet targets and specifications defined by designers. Fitness for Use - Evaluates performance for intended use Value for Price Paid - Evaluation of usefulness Vs price paid Support Services - Quality of support after sale
Features
extra items added to basic features, such as a stereo CD or a leather interior in a car
Reliability
probability that a product will operate properly within an expected time frame; that is, a TV will work without repair for about seven years
Conformance
degree to which a product meets preestablished standards
Durability
how long product lasts before replacement
Serviceability
ease of getting repairs, speed of repairs, courtesy and competence of repair person
Safety
assurance that customer will not suffer injury or harm from a product; an especially important consideration for automobiles
Perceptions
subjective perceptions based on brand name, advertising, and the like
Completeness:
Is everything customer asked for provided? Is a mail order from a catalogue company complete when delivered?
Consistency
Is the same level of service provided to each customer each time? Is your newspaper delivered on time every morning?
Accuracy
Is the service performed right every time? Is your bank or credit card statement correct every month?
Responsiveness
How well does the company react to unusual situations? How well is a telephone operator able to respond to a customers questions?
2) Output of many service systems are intangible. Manufacturing quality can be assesses. Service, quality can be assessed only through customers expectations. Poor service can be followed only by apologies.
3) Services cant be stored and inventoried. 4) Customers are often involved in service process and present while it is being performed. 5) Services are labour intensive.
Total - Made up of the whole Quality - degree of excellence a product or service provides Management - Act, art or manner of planning, controlling, directing,.
Total Quality Management What is TQM? A systems approach to management that aims to continuously increase value to customers by designing and continuously improving organisational processes and systems. Processes: group of activities that take an input, add value to it and provide an output. Systems : collection of processes and resources
Management creation and continuous improvement of organizational systems that when used by organizational members lead to increased value for customers. Continuous Improvement: Constant refinement of and improvement of products services and systems.
Employee Involvement: Participation and involvement of employees in their jobs and continuous improvement.
Market-share focus Individuals Focus on who and why Short-term focus Status quo focus Product focus Fire fighting
Customer focus Cross-functional teams Focus on what and how Long-term focus Continuous improvement Process improvement focus Problem solving
Team Approach
Teams formed around processes 8 to 10 people Meet weekly to analyze and solve problems
Benchmarking
Studying practices at best in class companies
1 Management understanding
and attitude
Considers quality is hidden in manufacturing. Quality is not considered as integral part of organisation.
Problems are fought as they occur fighting fire approach. No organisational activity.
4 Quality
7 Organization
Networking across and among the functions Large span of control with authority almost pushed down to the lowest level. Economy to time, just in time production, quick customer Conveyed with action With Top management
Hierarchical vertically Short span of control and many layers of authority. Long production runs for low cost and high efficiency Conveyed by slogan Delegated to subordinates
8 Span of Control
9 Production Schedule
12 Perception of Quality is considered Quality multidimensional and the dimensions are customer oriented.
Quality is defined in terms of single dimensions, that is conformance to specifications. Emphasizes on monolithic work pattern . Opportunities for participation does not exist. Emphasis on division of labour
13 Employee
Employees are motivated and are given significant role regardless of level to find better ways to work.
14 Work Force
15
Contribution of quality in improving productivity not recognised Improvement in inspection and gauging Growth in sales, profits and Return on investments.
16
Ways of improving
Changing corporate culture, Increasing employee education, use of process control. Customer satisfaction and Production of high quality goods and services
17
Develop quality manual, process performance data, self-inspection, product testing, basic quality planning, use of basic statistics, paperwork control.
Quality systems development, advanced quality planning, comprehensive quality manuals, use of quality costs, involvement of non-production operations, failure mode and effects analysis, SPC. Policy deployment, involve supplier & customers, involve all operations, process management, performance measurement, teamwork, employee involvement.
Quality Assurance
TQM
GURUS
Benchmarking Information Technology Quality Management Systems Environmental Management System Quality Function Deployment Quality by Design Failure Mode & Effect Analysis Products & Service Liability Total Productive Maintenance Management Tools Statistical Process Control Experimental Design Taguchis Quality Engineering Customer
People & Relationships: Leadership Customer Satisfaction Employee Involvement Supplier Partnership
QUALITY GURUS
AMERICAN QUALITY GURU 1. 2. 3. 4. W.Edward Deming Joseph Juran Phil Crosby ShewartC
JAPANESE QUALITY GURU 1. 2. 3. 4. Kaoru Ishikawa Shigeo Shingo Taichi Ohno Taguchi
W Edwards Deming
regarded by the Japanese as the chief architect of their industrial success all processes are vulnerable to loss of quality through variation: if levels of variation are managed, they can be decreased and quality raised quality is about people, not products
W Edwards Deming
Core element is the management circle
planning do/implementation check/study action PDCA (or PDSA) cycle
Plan a change to the process. Predict the effect this change will have and plan how the effects will be measured
ACT
Adopt the change as a permanent modification to the process, or abandon it.
DO
Implement the change on a small scale and measure the effects
STUDY
Study the results to learn what effect the change had, if any.
W Edwards Deming
Out of the Crisis (1984)
having a satisfied customer is not enough profit in business comes from
repeat customers customers that boast about your product and service customers that bring friends with them
Cost decreases because of less rework, fewer mistakes, fewer delays, snags, better use of machine time and materials
Productivity improves
Capture the market with better quality and lower price
Joseph Juran
structure CWQM concept: Company-Wide Quality Management essential for senior managers to
involve themselves define the goals assign responsibilities measure progress
Joseph Juran
empowerment of the workforce quality linked to human relations and teamwork key elements
identifying customers and their needs creating measurements of quality planning processes to meet quality goals continuous improvements
Joseph JURAN
Quality PLANNING consists of: Identifying customers and their needs Establishing optimum quality goals Creating measurements of quality Plan to meet quality goals under operating conditions Produce continuing results
Philip CROSBY Quality is defined as conformance to requirements Traditional quality control represent failure Manufacturing companies spend 20% revenues doing things wrong so
Do it Right First Time Zero Defects
To give priority attention to internal and external customers and their needs. Empower rather than control subordinates Emphasize improvement rather than maintenance Emphasize prevention Encourage collaboration rather than competition Train and coach rather than direct and supervise Learn from problems which are opportunities Continuously try to improve communications Continuously demonstrate commitment to quality Chose suppliers on the basis of quality Establish organisational systems to support quality effort Encourage and recognise team effort.
QUALITY STATEMENTS
General Guidellines
a) b) c) Involve as many employees Should project growth and development should be realistic
Should have following characteristics a) b) c) d) e) Future oriented Creative Setting high standards of excellence Inspire enthusiasm and encourage commitments Very clear and challenging
STEPS
1) What will be organization in 10 years 2) How to reach it? 3) Why the department exists and what are broad expected outcomes? 4) Specific, measurable, attainable, realistic and time bound break up of outcomes of department Vision Mission
Objectives
Goals
CUSTOMER SATISFACTION
Customer satisfaction major purpose of Quality Management System Customer satisfaction is subjective and hard to measure Internal and external customer A simple definition of customer satisfaction
Company offer
Customer Needs
Total satisfaction is reached when the offer matches the need or the circle is superimposed on the square.
improvement This concept implies that there is no acceptable quality level because customer needs, values expectations are constantly changing and more demanding ASQ Survey on end user perceptions of important factors that influenced purchases showed following ranking: 1) 2) 3) 4) 5) 6) Performance Features Service Warranty Price Reputation