Flashcards
12. Total Quality Management
Cards in this deck (38)
- 1Perspectives on quality (i.e. key concepts for TQM)1. Production perspective vs. service
2. Customer vs. firm
3. Design vs. conformance
4. Prevention vs. rectification - 2Define total quality management- Total quality management refers to managing the entire organization so that it excels on all dimensions of products and services that are important to the customer.
- 3Two goals of TQMTotal quality management has two fundamental operational goals:
1. Careful design of the product or service
2. Ensuring that the organization’s systems can consistently produce the design: Execution - 4Quality specifications and quality costs• Design quality: Intended product or service performance
• Conformance quality: The degree to which the product or service design specifications are met
• Quality at the source: The person who does the work takes responsibility for making sure it achieves the desired quality - 5Dimensions of design quality1. Performance: primary product or service characteristics
2. Features: Added touches, bells and whistles, secondary characteristics
3. Reliability / durability: Consistency of performance over time
4. Serviceability: Ease of repair and maintenance
5. Aesthetics: Sensory characteristics
6. Perceived quality: Past performance and reputation - 6Why does quality need to be managed?- Quality needs to be managed due to the cost of quality.
- 7Basic cost assumptions1. Failures have causes
2. Prevention is cheaper
3. Performance can be measured - 8Costs of quality1. Detection cost
2. Appraisal cost
3. Prevention cost
4. Internal failure cost
5. External failure cost - 9Primary processes for quality managementMeasuring quality (inspections)
Input
Transformation
Output
Material control and traceability - 10Control processes for quality managementStatistical Process Control
Feedback
Interventions
Control of measuring and test equipment
Interaction between control cycles and processes
Internal quality audits - 11How quality management has evolved- Quality management has evolved to more integral views, i.e. integration with line management. It now spans all business functions. Certification schemes are available.
- 12Two policies to managing quality- There are two policies to managing quality, with most organizations doing both:
1. Design quality into the product or service we are going to offer before we start or change it radically – a proactive approach, planning quality into the product or service
2. Continuously striving to improve the product or service we offer – a reactive approach, continuously improving what we do (TQM) - 13The importance of being reactive (OUT)- Being reactive (inspecting problems OUT): Inspectors prevent problems from reaching customers. All work should be inspected to prevent errors from spoiling other work or reaching customers; incoming materials, own work (especially first items made), and finished goods.
→ Statistical quality / process control is a method of ensuring that conformance to specification (of “technical” features) is maintained. Control charts may be used. - 14Being reactive (IN)- Being reactive (designing quality IN), includes tools for quality planning.
1. Quality Function Deployment (House of Quality): A means to translate customer requirements into “technical” features
→ QFD is a tool used to translate customer needs / wants as expressed in functional terms into a technical specification suitable for production, to provide customers with a product they want and ensure their satisfaction.
→ Add extra quality = added value
2. Total Quality Management: An approach to quality management that involves the whole organization. - 15Six steps to QFD(1) Voice of the customer: Understand them, what they want and what they need
(2) Competitive analysis: How to gain competitive advantage; look at how competitors relate to customers
(3) Voice of designer: What are the actual capabilities and how can they be adjusted to meet customer needs?
(4) Correlations: Between what designers can do and what the customer wants
(5) Technical comparison: Our product’s performance vs. competitors’ performance
(6) Technical trade offs: What is gained and what is lost with different alternatives - 16Why does QFD work?→ QFD works because it eliminates distance between consumer and manufacturer by making the product personal, ensures that customers are satisfied with the product and places the customer needs / wants as priority of the product / service. It also aids in the translation of customer wants into product action, and verifies that the common goal between different business functional departments is customer satisfaction.
- 17Three principles of TQM→ TQM stresses three principles:
1. Customer satisfaction
2. Employee involvement
3. Continuous improvements in operations, processes, people; communication yields better quality - 18Role of standardsRole of standards: For customer satisfaction we must have product or service product quality standards related to their expectations. For continuous improvement we must have standards to demonstrate improvement.
- 19TQM and employee participationTQM and employee participation: Staff involvement is critical for successful continuous quality improvement. This requires a fundamental change in the role (and behavior and thinking) of managers from being controllers (of people), to becoming trainers, developers and team builders and (maybe background) leaders.
- 20TQM and organizational cultureTQM and organizational culture: Organizationally, a customer oriented culture must be developed. Everyone has either external customers (who buy the product or service) or internal customers (who rely on the output of other employees). Thus, there is a chain of customers leading to the external customer.
- 21TQM and system improvementsAt an individual level, workers must learn more generic skills so they are more flexible; they must also learn skills of problem solving and team working. Meanwhile, managers must learn to develop and train their subordinates, and to lead rather than direct them.
• At a team level, all workers must have a common commitment and purpose, and ‘share’ leadership. Workers are judged collectively, not (or as well as?) individually. Workers do real work together.
• At an organizational level, top management support must be offered. Quality is strategic (strength and opportunity vs. weakness and threat) and involves everyone, even suppliers and customers, to create real quality. - 22TQM and teamwork principlesSuccessful teams have meaningful objectives with well-defined performance measures and are committed to them. They also work in a positive environment and foster accomplishment, and are constructively confrontational. They seek outside advice when necessary and have management support.
- 23Types of teams1. Problem-solving teams (quality circles) work on continuous improvement
2. Special purpose teams work on high level, strategic issues
3. Self managing teams manage part of the organization as a team
All involve some level of employee empowerment, moving both authority and responsibility down the organization. - 24TQM and quality circlesQuality circles are small groups looking at individual quality problem. They work by reducing compartmentalization, choosing the right problems, job enrichment / enlargement and group working.
- 25Explain six-sigma- Six-sigma is a philosophy and methods used to eliminate defects, which seeks to reduce variation in the process. One metric is defects per million opportunities (DPMO).
- 26Key six-sigma concepts1. Critical to quality: Attributes most important to the customer
2. Defect: Failing to deliver what the customer wants
3. Process capability: What your process can deliver
4. Variation: What the customer sees and feels
5. Stable operations: Ensuring consistent, predictable processes to improve what the customer sees and feels
6. Design for six-sigma: Designing to meet customer needs and process capability - 27Six-sigma methodologySix-sigma uses many of the same statistical tools as other quality movements. It is used in a systematic project-oriented fashion to define, measure, analyze, improve and control (DMAIC) the cycle. It also seeks the continual improvement in all aspects of operations (also uses scientific method).
- 28DMAIC methodology1. Define: Identify customers and their priorities, identify a project, identify key internal processes, identify critical-to-quality characteristics
2. Measure: Determine how to measure the process
3. Analyze: Determine most likely causes of defects, and understand why key defects are generated
4. Improve: Identify means to remove causes of defects, confirm the key variables, identify the maximum acceptance ranges, modify the process to stay within an acceptable range
5. Control: Determine how to maintain improvements and put controls in place to track key variables - 29Analytical tools for six-sigma and continuous improvementFlowcharts, run charts, pareto charts, check sheets, cause-and-effect diagrams, opportunity flow diagrams, control charts
- 30Quality management systems: The SERVQUAL model→ Service is an increasingly important aspect of managing operation.
→ The key recognition for the SERVQUAL model is that deliverables are a ‘package’ comprised of a mix of both goods and services.
- The SERVQUAL model is a gap analysis research instrument created by Parasuraman, Zeithamel and Berry (1988). - 31The 'halo' effectThe ‘Halo effect’: Good post-sales services can improve the impression of the goods
- 32What is a gap analysisFormal means to identify and remedy differences between desired performance levels and those achieved. Used to analyze processes in any area: production of goods, services or of their combination.
→ A SQA therefore compares expected vs. actual levels, with five gaps over 5 dimensions. - 33The SERVQUAL model gaps1. Gap 1: Not knowing what customers expect; the difference between actual customer expectations and management’s idea or perception of customer expectations
2. Gap 2: Wrong standards; mismatch between manager’s expectations of service quality and service quality specifications
3. Gap 3: Not performing as desired; poor delivery of service quality
4. Gap 4: Deliver <> promises; differences between service delivery and external communication with the customer
5. Gap 5: Customer perceptions <> expectations; differences between expected and perceived quality - 34The SERVQUAL dimensions1. Reliability: Service is dependable
2. Assurance: Service is knowledgeable and confident
3. Tangibles: Physical facilities, equipment and materials
4. Empathy: Genuine care for customers
5. Responsiveness: Willingness to help
Not all dimensions are equally important! - 35SERVQUAL methodology1. Survey of customers
2. Questions on each service dimension performance (multiple attributes)
3. Importance of each dimension
4. Questions on ‘excellence’ on each service dimension
Interpretation: Performance measurement achieved; focus on areas for improvement - 36SERVQUAL applications1. Static Performance Management
2. Monitor / track performance
3. Competitive position (vis-à-vis competitors)
4. Market segmentation (groups with different needs / perceptions) - 37SERVQUAL prosCustomer perspective
Comparisons (time)
Comparisons (competition) - 38SERVQUAL consNot universally useful
Expectations inherently difficult to measure
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- Business and Management 2A (Operations Management) Flashcards on 12. Total Quality Management, created by Nina Olsson on 02/08/2018.
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