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11-1

McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TQM and Quality Tools
TQM &
Quality Tools
11-2
McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TQM and Quality Tools
Total Quality Management
A philosophy that involves everyone in an
organization in a continual effort to
improve quality and achieve customer
satisfaction.
11-3
McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TQM and Quality Tools
Find out what the customer wants
Design a product or service that meets
or exceeds customer wants
Design processes that facilitates doing
the job right the first time
Keep track of results
Extend these concepts to suppliers
The TQM Approach
11-4
McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TQM and Quality Tools
Elements of TQM
Continual improvement
Competitive benchmarking
Employee empowerment
Team approach
Decisions based on facts
Knowledge of tools
Supplier quality
Champion
11-5
McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TQM and Quality Tools
Continuous Improvement
Philosophy that seeks to make
never-ending improvements to the
process of converting inputs into
outputs.
Kaizen: Japanese
word for continuous
improvement.
11-6
McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TQM and Quality Tools
Quality at the Source
The philosophy of making each
worker responsible for the quality of
his or her work.
11-7
McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TQM and Quality Tools
Lack of:
Company-wide definition of quality
Strategic plan for change
Customer focus
Real employee empowerment
Strong strong motivation
Time to devote to quality initiatives
Leadership

Obstacles to Implementing TQM
11-8
McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TQM and Quality Tools
Poor interorganizational communication
View of quality as a quick fix
Emphasis on short-term financial results
Internal political and turf wars
Obstacles to Implementing TQM
11-9
McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TQM and Quality Tools
Basic Steps in Problem Solving
Define the problem and establish an
improvement goal
Collect data
Analyze the problem
Generate potential solutions
Choose a solution
Implement the solution
Monitor the solution to see if it
accomplishes the goal
11-10
McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TQM and Quality Tools
The PDSA Cycle
Plan
Do
Study
Act
11-11
McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TQM and Quality Tools
Process Improvement: A systematic
approach to improving a process
11-12
McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TQM and Quality Tools
The Process Improvement Cycle
Implement the
Improved process
Select a
process
Study/document
Seek ways to
Improve it
Design an
Improved process
Evaluate
Document
11-13
McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TQM and Quality Tools
Process Improvement and Tools
Process improvement - a systematic
approach to improving a process
Process mapping
Analyze the process
Redesign the process
Tools
There are a number of tools that can be
used for problem solving and process
improvement
Tools aid in data collection and
interpretation, and provide the basis for
decision making

11-14
McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TQM and Quality Tools
Basic Quality Tools
Flowcharts
Check sheets
Histograms
Pareto Charts
Scatter diagrams
Control charts
Cause-and-effect diagrams
Run charts
11-15
McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TQM and Quality Tools
Check Sheet
Billing Errors

Wrong Account

Wrong Amount

A/R Errors

Wrong Account

Wrong Amount



Monday
11-16
McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TQM and Quality Tools
Pareto Analysis
80% of the
problems
may be
attributed to
20% of the
causes.
Smeared
print
N
u
m
b
e
r

o
f

d
e
f
e
c
t
s

Off
center
Missing
label
Loose Other
11-17
McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TQM and Quality Tools
Control Chart
970
980
990
1000
1010
1020
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
UCL
LCL
Figure11-9
11-18
McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TQM and Quality Tools
Cause-and-Effect Diagram
Figure11-10
Effect
Materials Methods
Equipment People
Environment
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
11-19
McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TQM and Quality Tools
Run Chart
Time (Hours)
D
i
a
m
e
t
e
r

11-20
McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TQM and Quality Tools
Tracking Improvements
UCL
LCL
LCL
LCL
UCL
UCL
Process not centered
and not stable
Process centered
and stable
Additional improvements
made to the process
Figure11-14
11-21
McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TQM and Quality Tools
Methods for Generating Ideas
Brainstorming
Quality circles
Interviewing
Benchmarking
5W2H-why,where,when,who(5W)
how & how much (2H)
11-22
McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TQM and Quality Tools
Team approach
List reduction
Balance sheet
Paired comparisons
Quality Circles
11-23
McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TQM and Quality Tools
Identify a critical process that needs
improving
Identify an organization that excels in
this process
Contact that organization
Analyze the data
Improve the critical process

Benchmarking Process

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