Professional Documents
Culture Documents
Chapter 2 TQM
Chapter 2 TQM
Therefore,
quality is
.”“free
Total Quality Management - Spring 2010 - IUG 8
Total Quality Management (TQM)
W. Edwards Deming proposed that
improving quality reduces cost and Quality can be and should be
.improves profitability .improved continuously
Revenues
Max Profit
Cost
Max Quality
Cost
Revenues
Max Profit
Optimum Quality
Prevention Appraisal
Design Review, Zero Defects Program, Vendor Surveillance, Receiving Inspection,
Supplier Training, Supplier Evaluation, Product Acceptance, Process Control,
Specification Review, Quality Audits, Inspection Labor, Quality Control Labor,
Preventive Maintenance, Engineering Testing Equipment Costs
Changes, Product Liability, Increased
Overhead
Prevention Costs
Benefit
Appraisal Costs
1
Prevention
10
$ $
Correction
$ $
100
Failure $
$
$
$
$
$
“The earlier you detect and prevent a defect the more you
can save. If you catch a two cent resistor before you use it and
throw it away, you lose two Cents. If you don’t find it until it
has been soldered into a computer component, it may cost $10
to repair the part. If you don’t catch the component until it is
in the computer user’s hands, the repair will cost hundreds of
dollars. Indeed, if a $5000 computer has to be repaired in the
field, the expense may exceed the manufacturing cost.”
Other limitations