Total Quality Management

BUS 3 142

Strategic Quality Management

Jan 31, 2013

Designing and Assuring Quality

Achieving quality results require INTENTIONAL planning and execution
A business aligns its quality strategy with its overall strategy Differentiation on Quality and features Command price premiums If competing on price, must attack costs and productivity improved quality address both

Organizational Leaders create the atmosphere and priority for quality

Quality is the RESULT of coordinated, fact-based, planning, execution, problem solving, and continuous improvement

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Demings Plan-Do-Check-Act

"Continuous improvement is better than delayed perfection." - Mark Twain

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An Environment and Culture for Quality

The right LEADERSHIP is critical to building & sustaining a Quality organization
Establish quality as a Way of Life and not as a project or fad Keep activities focused on superordinate goals Customer and organization long term success Honest and respectful work environment

Create an environment for Learning Provide time and dollars for Training Encourage diversity of opinions and problem solving approaches Plan-Do-Check-Act Be patient and dont expect immediate results
If employees are asked to make suggestions, implement the ideas that are offered Follow up to ensure results are achieved or if additional measures may be required
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Beware of goals that are really Wants or Wishes

When goals are introduced without the systems, processes, and resources to achieve them, one of three outcomes will follow: People will achieve the goals and positive results People will distort the data People will distort the system

Adapted from Donald Wheeler in Foster, Quality Management, Fifth Edition, Prentice Hall

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Quality and Productivity

A ratio of Inputs and Outputs Total-factor productivity Improvement projects sometimes reduce productivity in the early stages, before the longer term results are achieved Learning curve Resistance to change One step back for two steps forward

Measure against objective standards Yields Cycle time Inventory Profit

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Money must be spent to enable Quality

Like any other business process, managing quality requires investment and incurs costs. Diligent business case development, project management, and cost management are necessary.

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Quality Cost Model (Lundvall-Juran Model)

Balances Prevention Costs and Failure Costs. Can be useful in some cases, but NOT in matters of Safety or other risk to Human Life
Foster, Quality Management, Fifth Edition, Prentice Hall
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Failure Costs (Table 4-4)

Failure Costs Scrap Scrap disposition Warranty Customer Service - complaint handling Escapes of poor quality goods Machine downtime Idle time Troubleshooting Re-stocking Re-inspection Re-work Schedule disruption and delay Buffer inventory Latent inventory from undetected failures Product redesign
* Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall
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Appraisal Costs (Table 4-3)

Appraisal Costs Inspection by Inspectors Inspection by Operators / Others Setups for Inspections and Tests Equipment & Materials for Inspections and Tests Samples & evaluation materials Laboratory acceptance testing Audits Data review Supplier monitoring Supplier rating Supplier qualifying Quality certification preparation (ISO and others) Quality awards

* Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall

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Costs of Prevention (Table 4-2)

Prevention Costs Developing a Quality System Implementing a Quality System Maintaining a Quality System Production Process design Preventative maintenance Calibration and correlation Supplier quality assurance Supplier assessments Training Robust design Defect data analysis for Corrective Action Quality system audits

* Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall

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Individual Leadership and Quality

As you develop EXPERTISE and CONFIDENCE in your profession, you become more equipped to provide the vision, direction, coaching, and challenge to your teams and organizations

When people look up to you, and want to follow you, give them a GOOD REASON to follow

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Individual Leadership and Quality

Pick a leadership style that fits your personality and preferences Dont assume that being the boss is a good enough reason to be followed Power of Expertise Be excellent at the content of the work being done by the people you lead Use your leverage as a skilled leader to make a bigger difference over a larger footprint Equip and enable your team to do more than you could possibly do yourself Understand how Rewards and Feedback influence Performance & Quality Dont be afraid to communicate unpleasant news it is feedback for better performance Mix positive comments with opportunities for improvement Recognize that not all people are self-motivated, or are motivated by the same levers Measure the right things
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Leadership Skills (Table 4-1)

Quadrant 1: Knowledge Acceptance of Diversity Developing Competence Health / wellness Learning style Time management Ethics Risk taking Coping skills

Quadrant 2: Communication Assertiveness Conflict management Team building Trust building Motivating others Recruiting others Effective speaking Effective writing Effective listening Image building

Quadrant 3: Planning Structuring (for task accomplishment) Decision making Evaluation skills Task and time management

Quadrant 4: Vision Assessing the climate internal and external) Identifying opportunities

* Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall

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Supply Chain Strategic Quality Planning

Foster, Quality Management, Fifth Edition, Prentice Hall

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Supply Chain Strategic Quality Planning: Logistics

When shipments take place Modes of transportation How shipping practices can be optimized

Outsource warehousing and fulfillment or keep in-house

Product packaging

Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall

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Supply Chain Strategic Quality Planning: Suppliers

Preferred suppliers Supplier selection

Supplier development
Sole sourcing / single sourcing / multiple sourcing Technology linkage Global sourcing Supplier input to design Supplier cost cutting
Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall
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Supply Chain Strategic Quality Planning: Inventory Mgmt

Distribution Network Cost Service levels

Lead Times
Product Life Cycles Perishable and Hazardous Material

Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall

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Supply Chain Strategic Quality Planning: Information Flows

Data requirements System requirements Security

Reliability
Visibility upstream and downstream

Access upstream and downstream

Timing and governance

Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall

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Supply Chain Strategic Quality Planning: Products

Differentiation with competition Variety Manufacturability Components Life cycles

Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall

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Supply Chain Strategic Quality Planning: Services

Service definition along the supply chain Customer requirements Cost Response time Refurbished replacements Repair vs. Replace

Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall

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