QUALITY+TQM Students' [Λειτουργία...

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    CROSBY:Dont talk about poor quality or high quality. Talk about conformance andnon-conformance.

    FEIGENBAUM :"The total composite product and service characteristics of marketing,engineering, manufacturing and maintenance through which the product orservice in use will meet the expectations of the customer."

    JURAN:"Quality is fitness for purpose or use.

    Definition of Quality

    JURAN:"Quality is fitness for purpose or use.

    DEMINGSatisfying customers needs.

    TAGUCHIThe loss which is imparted by the product or service to society from the timeis created.

    Be aware: requirements, purpose or use means those of the CUSTOMER

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    Managing Quality: GARVIN, D (1988)

    1. the transcendent approach a quality watch is a Rolex

    2. the manufacturing based approach [free of errors, confirmingprecisely to design specs] a watch though not the best availableis defined as a quality product provided it has been built ordelivered precisely to its design specs

    3. the user-based approach [fit for its purpose] - a watch that ismanufactured precisely to its design specs yet fails to pieces aftermanufactured precisely to its design specs yet fails to pieces after2 days is clearly not fit for its purpose

    4. the product-based approach [precise and measurable set ofcharacteristics] a watch may be designed to run, without the needfor servicing, for at least 5 years while keeping time correct towithin 5 seconds

    5. the value-based approach [cost & price] compromise quality forprice

  • 4Costs of Quality

    Appraisal Costs

    Costs ofExternal FailureCosts Prevention Costs

    Internal FailureCosts

    Costs ofQuality

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    Prevention Costs: Costs incurred in preventing non-conformancefrom occurring

    Quality Planning: Costs associated with the broad array of activities which collectivelycreate the overall quality plan, e.g. inspection plan, reliability plan,specialized plans, cost of preparing manuals and procedures

    New Products review: Costs in evaluating new designs, preparation of tests, etcassociated with the launching of new products.

    Training Programmes: Costs of preparing and conducting training programmes

    Quality Costs

    Training Programmes: Costs of preparing and conducting training programmes

    Process Control: Costs associated with the time that personnel in the quality controlfunction spend studying and analyzing manufacturing processes.

    Quality Data Acquisition Analysis: Costs for the analysis of the data to identifythe quality troubles, to sound the alarms, to stimulate study, etc

    Quality Reporting: Costs for summarizing and publishing quality info to middle andupper management.

    Improvement Projects: Costs for structuring and carrying out programmes for breakthru to new levels of performance, e.g. motivation programmes

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    Internal Failure Costs: Costs of non-conformance, occurring before theproduct or service reaches the customer

    Scrap: Net losses in labor and material i.e. product that can not be rework, sell, etc

    Re-work: Cost of correcting defective items to make them fit for use

    Retest: Costs of re-inspection and re-test of re-worked items


    Quality Costs

    Downtime: Costs of idle facilities resulting from defects

    Yield losses: Costs of process yields lower than might be attainable by improvedcontrols, e.g. overfill of containers due to variability in filling andmeasuring equipment

    Disposition: Costs of deciding what to do with non-conforming materials

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    External Failure Costs: Costs resulting from the occurrence of non-conformance, which is not found before theproduct or service reaches the customer

    Complaint Adjustment: Investigation and adjustment costs of justified complaintsattributable to defective product or installation

    Returned Material: Costs associated with receipt and replacement of defectiveproduct returned from the field

    Quality Costs

    product returned from the field

    Warranty Charges: Costs involved in service to customers under warranty contracts

    Allowances: Costs of concessions made to customers due to sub-standardproducts, e.g. seconds, offers, etc

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    Appraisal Costs: Costs of determining the quality of the products or services

    Vendor Appraisal: Costs of assessing the vendors capability

    Goods Inward Inspection: Costs of determining the quality of the arriving products

    Inspection and Test: Costs inspection and testing thru its progression in the factory

    Maintaining the Accuracy of Test Equipment: Costs for maintaining and calibratingmeasuring instruments and equipments

    Quality Costs

    measuring instruments and equipmentsMaterials and Services Consumed: Costs of materials and services thru the destructive

    and non-destructive testing, e.x. X-rays, etcEvaluation of Stocks: Costs of testing products in field storage or in stock to evaluate


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    Important as they affect the companys profitability

    Quality Costs range between 10 20 % of sales (1985 study) Quality Costs range between 4 20 % of sales (Montgomery,1996)

    Quality Costs

    Crosby recommends that a proper managed quality

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    Reporting Quality Costs

    Customer complaints = 25,000

    Materials inspection = 20,000

    Process acceptance = 38,000

    Product acceptance = 10,000

    Quality training = 35,000 Quality training = 35,000

    Reliability engineering = 80,000

    Repair = 15,000

    Rework = 35,000

    Scrap = 50,000

    Warranty = 25,000

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    Reporting Quality CostsQuality Costs %of Sales

    Prevention costs:

    Quality training $35,000

    Reliability engineering 80,000 $115,000 4.11

    Appraisal costs:

    Materials inspection $20,000

    Product acceptance 10,000Product acceptance 10,000

    Process acceptance 38,000 68,000 2.43

    Internal failure costs:

    Scrap 50,000

    Rework 35,000 85,000 3.04

    External failure costs:

    Customer complaints 25,000

    Warranty 25,000

    Repair 15,000 65,000 2.32

    Total quality costs $333,000 11.90%

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    The death certificate approach(Vonderembse & White)

    Organization vulnerable tocompetition (good example UK in60s & 70s, where 95% of allcosts attributed to appraisal &failure and only 5% tofailure and only 5% topreventive vs. Japan)

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    Total Quality Management (prevention)

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    Features commonly found in TQM programmes- TOTAL means that the idea of continuous improvement applies to all

    personnel (and not to QA or QC)- KAIZEN which refers to a concern for the quality of peoples lives and

    focuses on improvements resulting from an EDLESS series of smallchanges, directed towards the elimination of waste in all its forms.


    Total Quality Management (prevention)

    - CUSTOMER FOCUS- external customer focus approach in quality (i.e. what the externalcustomer perceives as quality)- each individual is encouraged to identify his internal suppliers andcustomers

    - TRAINING is a major feature in moving to a TQM culture (firstlychange the mind-set approach and then introduce the relevant toolsand techniques)

    - LEADERSHIP walk as you talk

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    TQM Tools & Techniques

    Process flowcharts



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    Check sheets

    TQM Tools & Techniques

    Machine type Monday Tuesday Wednesday Thursday Friday

    Mega mixer | | | | | | | | | |

    Flexi mixer | | | | | | | | |

    Blender | | | | | | | |

    Master blender | | | | | | | | | |

    Conveyer | | | | | | | | | | |

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    Possible causes: The resultsor effect


    Ishikawa diagrams [Fish bone]



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    Ishikawa diagrams [Fish bone]: Generating ideasExample: Exam failure

    Student Lecturer

    Wrong topic

    Too many exams

    Too tired Poor trainingWorkload

    TQM Tools & Techniques




    Too many exams

    Too muchLevel too high

    Questions unclear

    NoiseToo hot

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    InaccurateSubmission of

    Billing to Client


    Methods People

    People fail to informclient thru call/e-mail


    of billingstatementsInvalid

    list ofupdates


    Unreliablemail system

    Informationin BIS


    Phone linedisconnected

    No file forrecord of billing

    statementsin clients


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    InaccurateSubmission of

    Billing to Client

    Methods People


    People fail to informclient thrucall/e-mail


    of billingstatements

    Invalidlist ofupdates

    ErroneousInformation in BIS

    Mixed updataInaccuracy


    Manual fileorganization


    Mixedup data

    InaccuracyIn sorting


    Wrong phone number/e-mail information Erroneous info

    in BIS

    Inaccuracy insorting data

    Manual fileorganization

    No training

    Manual fileorganization

    Skipping payingInaccuracy in


    Unreliablemail systemPhone line

    disconnectedAssorted records

    of billingstatements

    in clients folders

    Skipping payingmonthly bills

    Poortraining No


    Inaccuracy in sortingand giving out mail

    Manual file system

    Mixedup data

    Inaccuracy insorting data

    Manual fileorganization