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Total Quality Management - Japanese; long term success through consumer…
Total Quality Management - Japanese; long term success through consumer satisfaction; participation of all members of an organization.
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COST OF QUALITY.
Cost of poor quality- is associated with performing a task incorrectly and/or generating unacceptable output.
Quality cost- is associated with prevention activities and the improvement of quality throughout the firm before, during and after production of a product.
Cost of failure
Internal failure cost- things going wrong before the product reaches the customer. Eg, rework, scrap, downgrades, reinspection, retesting, process losses.
External failure cost- problems found after the product reaches the customer. Eg, warranty, returns, lost customer, field service cost; More expensive than internal.
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Specification results falling inside a product's tolerance limits are considered acceptable. Results falling outside of tolerance limits are rejected and require either rework or scrapping. Specification limits are set by customer requirements and engineers and are usually fixed.
OBJECTIVES
To ensure the organization's long term success through customer satisfaction- by meeting all required product and service specifications.
To ensure that variation is minimized (w.r.t bell curves) given the nature of the process, the cost involved in increasing precision, and the needs of the customer for precision.
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Core Concepts.
Management commitment/ champions- absolute commitment to TQM; develop organization strategy, mission statement, vision statement in ways that inspire a sustained effort; Fund investments in preventive measures (no immediate advantage); regular check ups on quality regulation.
All employees are involved and empowered to implement quality initiatives.- includes cress training employees to preform other jobs, training on quality tools, or teaching general problem solving and root cause analysis skills; Developing teams to work directly with suppliers or internal or external customers to learn about their requirements and perceptions.
Performance Measurement- TQM is a evidence based system; some important cost of poor quality such as lost customers are hard to measure, eg, customer lost; estimates need to made how much of the change in customer loyalty and satisfaction is attributed to poor quality and how much to marketing, changing tastes etc.
Focus on customer- Customer can be both internal or external ( the next work center that uses your output or the ultimate customer that is distribution centers and buyers.)
Customer needs include - Quality, Flexibility, Dependability, Service, Speed, Stability and cost
QUALITY FUNCTION DEPLOYMENT (QFD)- Method designed to ensure that all the major requirements of the customer are identified and are met or exceeded through the resulting product design process and the design and operation of the supporting production management system.
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QFD tries to eliminate the gap between what the customer wants in a new product and what the product is capable of delivering.
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Helps compare to products of the competition so the organization can remain competitive relative to evolving customer priorities.
It may also be defined w.r.t type of value analysis as, the systematic use of techniques that identify a required function, establish a value for that function, and finally provide that function at the lowest overall cost.
VOICE OF THE CUSTOMER (VOC) - Actual customer description in words for the functions and features customers desire for goods and services. ( the term customer indicates the external customer of the supplying entity.)
Gather feedback on organization's products and compared products by interviewing, structured or unstructured surveys.
HOUSE OF QUALITY- A structured process that relates customer- defined attributes to the product's technical features needed to support and generate these attributes.
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The customer needs are WHATS and the solutions to them are the HOWS. The various technical requirements are compared with one another directly an assigned a plus or minus sign in the roof of the house, also called a correlation matrix.
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Root Cause Analysis- is an analytical method to determine the core problems of an organization, process, product, market and so forth.
The five whys- The common practice in total quality management is to ask "why" five times when confronted with a problem.
Benchmarking- Comparing products, processes and services to those of another organization thought to have superior performance. The benchmarking target may or may not be a competitor or even in the same industry.
While the 2 basic tools encourage an organization to look inward to determine quality levels, benchmarking looks to external examples of excellence.
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