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CHAPTER ELEVEN

TQM & CONTINUOUS IMPROVEMENT

Chapter 11
TQM &
Continuous
Improvement
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1999
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CHAPTER ELEVEN
TQM & CONTINUOUS IMPROVEMENT
Total Quality Management

A philosophy that involves


everyone in an organization in a
continual effort to improve quality
and achieve customer
satisfaction.

Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1999


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CHAPTER ELEVEN
TQM & CONTINUOUS IMPROVEMENT
Elements of TQM
Continual improvement
Competitive benchmarking
Employee empowerment
Team approach
Decisions based on facts rather than
opinions
Knowledge of tools
Supplier quality
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1999
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CHAPTER ELEVEN
TQM & CONTINUOUS IMPROVEMENT
Continuous Improvement
Philosophy that seeks to make
never-ending improvements to the
process of converting inputs into
outputs.
Kaizen: Japanese word
for continuous
improvement.

Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1999


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CHAPTER ELEVEN
TQM & CONTINUOUS IMPROVEMENT
Quality at the Source

The philosophy of making


each worker responsible for
the quality of his or her work.

Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1999


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CHAPTER ELEVEN
TQM & CONTINUOUS IMPROVEMENT
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
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1999
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CHAPTER ELEVEN
Figure 11-1 TQM & CONTINUOUS IMPROVEMENT
The PDSA Cycle

Plan

Act

Do

Study

Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1999


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CHAPTER ELEVEN
TQM & CONTINUOUS IMPROVEMENT
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
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1999
11-8
CHAPTER ELEVEN
TQM & CONTINUOUS IMPROVEMENT
Seven Basic Quality Tools
Check sheets
Flowcharts
Scatter diagrams
Histograms
Pareto analysis
Control charts
Cause-and-effect diagrams
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1999
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CHAPTER ELEVEN
TQM & CONTINUOUS IMPROVEMENT
Methods for Generating Ideas
Run charts
Brainstorming
Quality circles
Interviewing
Benchmarking
5W2H
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1999
11-10
CHAPTER ELEVEN
TQM & CONTINUOUS IMPROVEMENT
Check Sheet

Billing Errors Monday


Wrong Account

Wrong Amount

A/R Errors

Wrong Account

Wrong Amount

Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1999


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CHAPTER ELEVEN
TQM & CONTINUOUS IMPROVEMENT
Pareto Analysis

Number of defects
80% of the
problems
may be
attributed to
20% of the
causes.
Off Smeared Missing Loose Other
center print label
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1999
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CHAPTER ELEVEN
TQM & CONTINUOUS IMPROVEMENT
Run Chart
Diameter

Time (Hours)
Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1999
11-13
CHAPTER ELEVEN
Figure11-9 TQM & CONTINUOUS IMPROVEMENT
Control Chart

1020
UCL
1010
1000
990
980
LCL

970
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1999


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CHAPTER ELEVEN
Figure11-10 TQM & CONTINUOUS IMPROVEMENT
Cause-and-Effect Diagram

Methods Materials
Cause
Cause
Cause
Cause
Cause Cause
Environment Effect
Cause Cause

Cause Cause
Cause Cause

People Equipment

Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1999


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CHAPTER ELEVEN
Figure11-14 TQM & CONTINUOUS IMPROVEMENT
Tracking Improvements

UCL UCL
UCL

LCL
LCL
Additional improvements
LCL Process centered made to the process
Process not centered and stable
and not stable

Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1999


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