Deming Cycle

Chapter 6 -
Total Quality
Management
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition 2002 Prentice Hall, Inc. All rights reserved.
TQM
Wheel
TQM
Wheel
Customer
satisfaction
Figure 6.1
TQM
Wheel
Customer
satisfaction
Figure 6.1
Customer-Driven
Definitions of Quality
Conformance to Specifications
Value
Fitness for Use
Support
Psychological Impressions
The Costs of
Poor Quality
Prevention Costs
Appraisal Costs
Internal Failure Costs
External Failure Costs
Costs of Detecting Defects
Cost of detection and correction
Process
Final testing
Customer
Where defect is detected

Figure 6.2
Cost of detection and correction
Process
Final testing
Customer
Where defect is detected

Figure 6.2
Employee
Involvement
Cultural Change
Teams
Individual Development
Awards and Incentives
Deming
Wheel
Deming
Wheel
Plan
Figure 6.3
Deming
Wheel
Plan
Do
Figure 6.3
Deming
Wheel
Plan
Do
Check
Figure 6.3
Deming
Wheel
Plan
Act
Do
Check
Figure 6.3
Deming
Wheel
Plan
Act
Do
Check
Figure 6.3
Reliability
Reliability
Product reliability
rs = (r1)(r2) . . . (rn)
where
rs = reliability of the complete product
n = number of subsystems
rn = reliability of the subsystem or
component n
Reliability
Product reliability
rs = (r1)(r2) . . . (rn)
where
component n
Reliability
Product reliability
rs = (r1)(r2) . . . (rn)
where
component n
rs = (0.99)(0.90)(0.85) = 0.76
Reliability
Product reliability
rs = (r1)(r2) . . . (rn)
where
component n
rs = (0.99)(0.90)(0.85) = 0.76
Reliability
Product reliability
rs = (r1)(r2) . . . (rn)
where
component n
rs = (0.99)(0.95)(0.90) = 0.85
Reliability
Product reliability
rs = (r1)(r2) . . . (rn)
where
component n
rs = (0.99)(0.95)(0.90) = 0.85
Quality
Function
Deployment
Quality
Function
Deployment
The House of Quality
Quality
Function
Deployment
Quality
Function
Deployment
Voice of
the
Customer
Quality
Function
Deployment
Voice of
the
Customer
Competitive
Analysis
Quality
Function
Deployment
Voice of
the
Customer
Voice of
the
Engineer
Competitive
Analysis
Quality
Function
Deployment
Voice of
the
Customer
Trade-offs
Voice of
the
Engineer
Competitive
Analysis
Quality
Function
Deployment
Voice of
the
Customer
Trade-offs
Voice of
the
Engineer
Competitive
Analysis
Quality
Function
Deployment
Voice of
the
Customer
Trade-offs
Voice of
the
Engineer
Correlations
Competitive
Analysis
Quality
Function
Deployment
Voice of
the
Customer
Trade-offs
Voice of
the
Engineer
Correlations
Competitive
Analysis
Quality
Function
Deployment
Voice of
the
Customer
Trade-offs
Voice of
the
Engineer
Correlations
Competitive
Analysis
Technical Comparison
Quality
Function
Deployment
Voice of
the
Customer
Trade-offs
Voice of
the
Engineer
Correlations
Competitive
Analysis
Technical Comparison
Benchmarking
Planning
Analysis
Integration
Action
Pareto Charts
Pareto Charts
Figure 6.4
Pareto Charts
Figure 6.5
Pareto Charts
Figure 6.5
Cause-and-Effect
Diagrams
Cause-and-Effect
Diagrams
Machines
Personnel
Effect
Materials
Process
Checker Board Airlines
Delayed
flight
departures
Figure 6.6

Equipment
Aircraft late to gate
Mechanical failures
Delayed
flight
departures
Figure 6.6

Equipment
Mechanical failures
Personnel
Passenger processing at gate
Late cabin cleaners
Unavailable cockpit crew
Late cabin crew
Delayed
flight
departures
Figure 6.6

Equipment
Personnel

Mechanical failures

Late cabin cleaners
Late cabin crew
Late baggage to aircraft
Delayed
flight
departures
Late fuel
Late food service
Contractor not provided
updated schedule
Materials
Figure 6.6

Personnel
Equipment
Mechanical failures

Late cabin cleaners
Late cabin crew
Poor announcement of departures
Delayed
flight
departures
Late fuel
Weight/balance sheet late
Late food service
updated schedule
Materials
Delayed check-in procedure

Waiting for late passengers
Procedures
Figure 6.6

Personnel
Equipment
Other
Mechanical failures

Late cabin cleaners
Weather
Late cabin crew
Air traffic delays
Poor announcement of departures
Delayed
flight
departures
Late fuel
Weight/balance sheet late
Late food service
updated schedule
Materials
Delayed check-in procedure

Waiting for late passengers
Procedures
Source: Adapted from D. Daryl Wyckoff, New Tools for Achieving Service Quality. The Cornell Hotel and Restaurant
Administration Quarterly, November 1984, pg. 89. 1984 Cornell H.R.A. Quarterly. Used by permission. All rights reserved.
Figure 6.6
Wellington Fiber Board Co.

Tools for Improving Quality
Step 1Checklist
Step 2Pareto chart
Step 3Cause-and-effect diagram
Step 4Bar chart

Checklists
Headliner Defects
Defect type
Tally
Total
A. Tears in fabric
B. Discolored fabric
C. Broken fiber board
D. Ragged edges
Total
Figure 6.7

Checklists
Headliner Defects
Defect type
Tally
Total
A. Tears in fabric
D. Ragged edges
Total
Figure 6.7

Checklists
Headliner Defects
Defect type
Tally
Total
A. Tears in fabric
//
D. Ragged edges
Total
Figure 6.7

Checklists
Headliner Defects
Defect type
A. Tears in fabric
Tally
Total
//
D. Ragged edges
Total
Figure 6.7

Checklists
Headliner Defects
Defect type
A. Tears in fabric
Tally
Total
//
D. Ragged edges
/
Total
Figure 6.7

Checklists
Headliner Defects
Defect type
Tally
Total
A. Tears in fabric
////
///
//// //// //// ////

//// //// //// /
//// //
D. Ragged edges
Total
36
7
50
Figure 6.7
Figure 6.7
50
100
40
80
30
60
20
40
10
20
Cumulative percentage
Number of defects
Pareto Chart
Defect type

Pareto Chart
40
100
80
30
60
20
40
10
20
D
A
0
Figure 6.7
Number of defects
50
B
0
Defect type

Pareto Chart
40
100
80
30
60
20
40
10
20
D
A
0
Figure 6.7
Number of defects
50
B
0
Defect type

Cause-and-Effect Diagram
People
Materials
Training
Out of specification
Not available
Absenteeism
Communication
Machine maintenance
Humidity
Schedule changes
Broken
fiber
board
Machine speed
Wrong setup
Other
Process
Figure 6.7

20
Number of broken fiber boards
Bar Chart
15
10
First
Figure 6.7
Second
Shift
Third
ISO
14000
ISO
9000
Criteria for
Performance
Excellence
Category 1Leadership
Category 2Strategic Planning
Category 3Customer and Market Focus
Category 4Information and Analysis
Category 5Human Resource Focus
Category 6Process Management
Category 7Business Results
120 points
85 points
85 points
90 points
85 points
85 points
450 points
LeadershipLeadership system, values,

expectations, and public responsibilities
Strategic PlanningThe effectiveness of

strategic and business planning and deployment
of plans, focusing on performance requirements
Customer and Market FocusHow the company

determines customer and market requirements and achieves
customers satisfaction
Information and AnalysisThe effectiveness of

information systems to support customer driven performance
excellence and marketplace success
Human Resource FocusThe success of efforts to realize

the full potential of the work force to create a high-performance
organization
Process ManagementThe effectiveness of systems and

processes for assuring the quality of products and services
Business ResultsPerformance results and competitive

benchmarking in customer satisfaction, financials, human
resources, suppliers, and operations
Vanishing Cream Analysis

Solved Problem 2
40
90%
36
78%
Frequency of defects
32
Figure 6.8
100%
90
80
28
70
24
60
48%
20
50
16
40
12
30
20
10
0
Label
Fill
Mix
Cumulative percentage of defects
100
Seal

Deming Cycle

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Chapter 6 -

Costs of Detecting Defects

Cost of detection and correction

Costs of Detecting Defects

Where defect is detected

Cost of detection and correction

Costs of Detecting Defects

Where defect is detected

Checker Board Airlines

Checker Board Airlines

Checker Board Airlines

Checker Board Airlines

Checker Board Airlines

Aircraft late to gate

Passenger processing at gate

Late baggage to aircraft

Checker Board Airlines

Passenger processing at gate

Late baggage to aircraft

Poor announcement of departures

Delayed check-in procedure

Checker Board Airlines

Passenger processing at gate

Late cabin crew

Air traffic delays

Late baggage to aircraft

Poor announcement of departures

Delayed check-in procedure

Wellington Fiber Board Co.

Wellington Fiber Board Co.

Wellington Fiber Board Co.

Wellington Fiber Board Co.

Wellington Fiber Board Co.

Wellington Fiber Board Co.

Wellington Fiber Board Co.

C. Broken fiber board

//// //// //// ////

Wellington Fiber Board Co.

Wellington Fiber Board Co.

Wellington Fiber Board Co.

Wellington Fiber Board Co.

Wellington Fiber Board Co.

Number of broken fiber boards

LeadershipLeadership system, values,

Strategic PlanningThe effectiveness of

Customer and Market FocusHow the company

Information and AnalysisThe effectiveness of

Human Resource FocusThe success of efforts to realize

Process ManagementThe effectiveness of systems and

Business ResultsPerformance results and competitive

Vanishing Cream Analysis

Cumulative percentage of defects

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