Continuous Process Improvement Deming's 14 Points: Total Quality Management

Demings 14 Points
Total Quality Management
Continuous Process Improvement

D-M-A-I-C - Toolbox
DEFINE
Measure 1. Operational Definitions. 2. Data Collection Plan 3. Pareto Chart 4. Histogram 5. Box Plot 6. Statistical Sampling 7. Measurement System Analysis 8. Control Charts 9. Process Cycle Efficiency 10. Process Sizing 11. Process Capability
Analyze
Improve
Control
1. Value Stream Map 2. Financial Analysis 3. Project Charter 4. Stakeholder Analysis 5. Communication Plan 6. SIPOC Map 7. High Level Process Map 8. Non-Value Added Analysis 9. QFD
1. Pareto Charts 2. Fishbone Diagrams 3. C&E matrix 4. Brainstorming 5. Detailed As-Is process maps 6. Basic statistical tools 7. Constraint identification 8. Time Trap analysis 9. Non-Value Added analysis 10. Hypothesis testing 11. Confidence intervals 12. FMEA 13. Regression Analysis 14. ANOVA 15. Queuing Theory 16. Analytical Batch Sizing
1. Brainstorming 2. Benchmarking 3. TPM 4. 5S 5. Line Balancing 6. Process Flow Improvement 7. Replenishment Pull 8. Sales & operations planning 9. Set up reduction 10. Poka-Yoke 11. FMEA 12. Hypothesis Testing 13. Solution Selection Matrix 14. To Be Process maps 15. Piloting and simulation
1. Control Charts 2. SOPs 3. Training Plan 4. Communication Plan 5. Implementation Plan 6. Visual Process Control 7. Mistake-proofing 8. Process Control Plans 9. Project Commissioning 10. Project Replication 11. Plan-DoCheck-Act Cycle
Filosofa de Calidad:
Besterfield: Quality Control, 8th ed..
2009 Pearson Education, Upper Saddle River, NJ 07458. All rights reserved
Quality Control
Chapter 2- Total Quality Management and Principles
PowerPoint presentation to accompany Besterfield Quality Control, 8e
PowerPoints created by Rosida Coowar
Outline
Introduction Basic Approach (TMC) Leadership Customer Satisfaction Employee Involvement Continuous Process Improvement Supplier Partnership Performance Measures Demings 14 Points
Learning Objectives
When you complete this chapter, you should:
Know the six basic concepts, the purpose and
benefits of TQM.
Understand the twelve characteristics of a
leader.
Describe the necessary management activities to
implement a TQM program.

Know the importance of customer satisfaction
and how to achieve it.

Besterfield: Quality Control, 8th ed.. 2009 Pearson Education, Upper Saddle River, NJ 07458. All rights reserved
Learning Objectives-contd.
When you complete this chapter, you should:
Describe the process necessary for effective
employee involvement.
Describe continuous process improvement and
the problem-solving method.

Know the importance of supplier partnership and
techniques to measure effectiveness.

Be able to describe the measures of
performance.
Introduction
Total Quality Management
6
Introduction
Total Quality Management (TQM) is the application of quantitative methods and human resources to improve all the processes within an organization and exceed customer needs now and in the future.
7
TQM
The purpose of TQM is to provide a quality product to customers, which will, in turn, increase the productivity and lower cost TQM allows the organization to achieve the business objectives of profit and growth Job Security. TQM creates a satisfying place to work
8
TQM
A company will not begin the transformation to TQM until it is aware that the quality of the product or service must be improved TQM requires a cultural change TQM is mandated by the customer TQM is better way to run a business and compete in domestic and word markets Quality is first among equal cost and service Improvements in quality lead directly to increased productivity
9
TQM
Basic Approach: six basic concepts
10
TQM
Basic Approach: six basic concepts
1.
A committed and involved management to provide long-term top-to-bottom organizational support An unwavering focus on the customer Effective involvement and utilization of the entire work force Continuous improvement of the business and production processes
2. 3.
4.
5.
6.
Treating suppliers as partners

Establishing performance measures for the processes
11
8th ed.. 2009 Pearson Education, Upper Saddle River, NJ 07458. All rights reserved
Besterfield: Quality Control,
TQM
The Road to Business Growth
Business Growth
Continuous Improvement Supplier Partnering Employee Involvement Focus on Quality Leadership
Process Orientation
Customer Satisfaction 12 Clear Vision Education, Upper Saddle River, NJ 07458. Besterfield: Quality Control, 8 ed.. 2009 Pearson
th
All rights reserved
TQM
Quality Element Definition Previous State Product-Oriented TQM Customer-oriented
Priorities
Decisions Emphasis
Second to service and cost

Short-term Detection
First among service and cost

Long-term Prevention
Errors
Responsibility Prob. Solving Procurement Managers Role
Operations
Quality Control Managers Price Plan, enforce etc
System
Everyone Teams Life-cycle costs Delegate, facilitate
Table2.1 New and Old Cultures

13
TQM
Quality involves the design of the product and the process TQM is not something that will occur overnight, it takes a long time to build the appropriate emphasis and techniques into the culture
14
Leadership
15
Leadership
The ability to positively influence people and
systems to have a meaningful impact and achieve results
Recognize that the quality function is no more responsible for product quality.Quality is the responsibility of everyone in the organization Commitment to quality becomes part of the corporations business strategy and leads to enhanced profit and an improved competitive position
16
8th ed.. 2009 Pearson Education, Upper Saddle River, NJ 07458. All rights reserved
Besterfield: Quality Control,
Leadership
12 Leadership Characteristics:
17
Leadership
12 Leadership Characteristics:
1.
Give priority attention to external and internal customers and their needs Empower, rather than control, subordinates
2.
3.
4. 5.
Emphasize improvement rather than maintenance

Emphasize prevention Encourage collaboration rather than competition
18
Leadership
Leadership Characteristics Contd:
6. 7. 8.
Train and coach, rather than direct and supervise Learn from problem Improve communications
9.
Demonstrate their commitment to quality

suppliers on the basis of quality, not price
10.Choose
19
Leadership
Leadership Characteristics Contd:
11.
Establish organizational systems to support the quality effort Encourage and recognize team effort
12.
Leadership is essential during every phase of the implementation process and particular at the start!!!!!
20
Customer Satisfaction
Who is the Customer? External Customer -- those who receive the final products. Occurs normally at the organizational level Internal Customers -- occur at the process and crossdepartmental levels within the company
Identifying Customers: What parts or products are produced? Who uses our parts or products? Who do we call, correspond/interact with? Who supplied the inputs to the process?
21
Customer Satisfaction Contd.

Customer Feedback:
22

Customer Feedback:
1. Comment cards and formal surveys
2. Focus groups 3. Direct customer contacts 4. Field Intelligence 5. Study complaints
6. Monitoring the Internet
23

Customer Complaints:
Dissatisfied customers rarely complain Opportunity for quality improvement Procedure for customer complaints, such as:
Accept complaints Feedback complaint information to all people Analyze complaints by doing effective work Eliminate the root cause Report results of all investigations and solutions to
everyone involved
24

Basic Elements of Service Quality:
Organization Customer Communication
Front-Line People
Leadership
25
Employee Involvement
26
Employee Involvement
. any activity by which employees participate in work-related decisions and improvement activities, with the objectives of tapping the creative energies of all employees and improving their motivation
27
Employee Involvement Contd.

Education and Training:
The cost of education and training for all
personnel is enormous and the time to achieve it is lengthy

Educational needs vary by function area,
department and job

Quality Council may want to establish a project
team for the planning of the program
28
29

A process with the Goal is to achieve perfection:
View work as a process Make all processes effective, efficient, and adaptable Anticipate changing customer needs
Control in-process performance using measures such
as scrap reduction
Maintain constructive dissatisfaction with the present
level of performance
30

A process with the Goal is to achieve perfection:
Eliminate waste and rework Investigate non-value added activities Eliminate nonconformities
Use benchmarking to stay competitive

Hold gains Lessons learned Use tools such as SPC, design of experiments etc.
31

FEEDBACK
INPUT Materials Money Information Data, etc
People Equipment Method Procedures Environment Materials
PROCESS
OUTPUT Information Data Product Service, etc.
OUTCOMES
CONDITIONS Figure 2-3 Input/output process model


Problem-Solving Method:
1. Identify the opportunity 2. Analyze the current process 3. Develop the optimal solution(s)
4. Implement changes
5. Study the results 6. Standardize the solution 7. Plan for the future
33

Problem-Solving Method Phase I:
Identify the opportunity
Identify and prioritize opportunities for improvement

1. Is the problem important and not superficial
and why?
2. Will the problem solution contribute to the
attainment of goals?
3. Can be problem be defined clearly using
numbers?
34

Form a team
Select the team leader and determine goals and deadlines

Define the Scope
Develop a good problem statement that states the facts, focuses on what is known and emphasizes the impact on the customer.
35

Develop a comprehensive charter that
specifies
Authority
Objective and scope

Composition Direction and control General
36

Problem-Solving Method Phase II:
Analyze the current process
Develop a process flow Define the target performance measures Collect all available data and information Determine the root cause
37

Problem-Solving Method Phase III:
Develop the optimal solution Determine possible solutions Judge possible solutions for greatest
potential for success

Categorize solutions as short range
or long range
38

Problem-Solving Method Phase IV:
Implement Changes Prepare the implementation plan Obtain approval for the plan
Develop implementation plan report
39

Problem-Solving Method Phase V:
Study the results Take measurements Evaluate results
Identify unforeseen problems as a result of
the changes
40

Problem-Solving Method Phase VI:
Standardize the Solution Institutionalize the change Certify the quality peripherals
Certify operators
Cross-training
41

Problem-Solving Method Phase VII:
Plan for the Future Conduct regular scheduled reviews Establish systems to identify areas for future
improvement
Incorporate process measurement and team
problem solving in all work activities

Reduce complexity, variation and out-of-
control processes
42
Supplier Partnership
On average ___% or more of product or service cost is due to procurement. The supplier should be treated as an extension of the process.
On average 40% or more of product or service cost is due to procurement. The supplier should be treated as an extension of the process. This requires:
Long term relationship with supplier(s) Good supplier management
Long term relationship with supplier(s) Good supplier management
Supplier Selection Criteria:
Supplier Selection Criteria:
Quality of parts/raw materials On-time delivery 100% delivery
Certified?
Technology
Performance Measurements
Service Billing Errors Sales per square feet Activity time
Production
Yield Inventory turns On-time delivery
Cost of Poor Quality:
Prevention Costs: Costs of minimizing failure and appraisal
costs
Appraisal Costs:
Costs of determining the degree of
conformance to quality requirements
Cost of Poor Quality:
Internal Failure Costs: Costs resulting from defects found before the
customer receives the product or service

External Failure Costs:
Costs resulting from defects found after the
customer receives the product or service
Malcolm Baldrige National Quality Award The Baldrige Award is given by the President of the United States to businesses manufacturing and service, small and large and to education and health care organizations that apply and are judged to be outstanding in seven areas
Malcolm Baldrige National Quality Award Core Values/Concepts
Visionary leadership Customer-driven excellence
Org. and personal learning

Valuing employees and partners Agility Focus on the future
Malcolm Baldrige National Quality Award
Core Values/Concepts
Managing for innovation Management by fact Social Responsibility Focus on results and creating value Systems perspective
Demings 14 Points
1. Create consistency of purpose 2. Lead to promote change 3. Build quality into the product; stop
depending on inspection
4. Build long term relationships based on
performance, not price

5. Continuously improve product, quality, and
service
Demings 14 Points
6. Start training 7. Emphasize leadership 8. Drive out fear 9. Break down barriers between departments
10. Stop haranguing workers
Demings 14 Points
11. Support, help, improve 12. Remove barriers to pride in work 13. Institute a vigorous program of education
and self-improvement
14. Put everybody in the company to work on
the transformation

Problem-Solving Method:
1. Identify the opportunity 2. Analyze the current process 3. Develop the optimal solution(s) 4. Implement changes 5. Study the results 6. Standardize the solution 7. Plan for the future
Six Sigma
Ejercicio
Trabajar en equipos de tres personas: Visitar o entrevistar algn gerente que trabaje en una organizacin grande. 1. Determinar si existe algn modelo de calidad en dicha compaa 2. Describir dicho modelo y cules son los elementos de mayor importancia 3. Determinar cmo esta compaa oye a sus clientes 4. Determine cules son las medidas que dicha compaa utiliza para saber si su producto o servicio es de calidad
Preparar presentacin (10 minutos) Entregar 31 Agosto

25 Puntos
Ejercicio
Trabajar en equipos de tres personas:
1. Escoger 3 ganadores del Malcom Baldrige Awards 2. Investigar que fueron las razones para ganar tan importante award 3. Hacer una presentacin de estos hallazgos en Power Point 4. Entre 5 a 8 Slides 5. Preparase para presentacin de 10 minutos 6. Entregar 7 de Septiembre

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Demings 14 Points

Total Quality Management

Continuous Process Improvement

Besterfield: Quality Control, 8th ed..

PowerPoints created by Rosida Coowar

Besterfield: Quality Control, 8th ed..

Besterfield: Quality Control, 8th ed..

implement a TQM program.

and how to achieve it.

the problem-solving method.

techniques to measure effectiveness.

Treating suppliers as partners

Besterfield: Quality Control,

All rights reserved

Second to service and cost

First among service and cost

Table2.1 New and Old Cultures

systems to have a meaningful impact and achieve results

Besterfield: Quality Control,

Emphasize improvement rather than maintenance

Demonstrate their commitment to quality

Customer Satisfaction Contd.

Customer Satisfaction Contd.

6. Monitoring the Internet

Customer Satisfaction Contd.

Customer Satisfaction Contd.

Employee Involvement Contd.

personnel is enormous and the time to achieve it is lengthy

department and job

team for the planning of the program

Continuous Process Improvement

Continuous Process Improvement

Control in-process performance using measures such

Continuous Process Improvement

Use benchmarking to stay competitive

Continuous Process Improvement

INPUT Materials Money Information Data, etc

People Equipment Method Procedures Environment Materials

OUTPUT Information Data Product Service, etc.

CONDITIONS Figure 2-3 Input/output process model

Continuous Process Improvement

Continuous Process Improvement

Identify and prioritize opportunities for improvement

Continuous Process Improvement

Select the team leader and determine goals and deadlines

Continuous Process Improvement

Objective and scope

Continuous Process Improvement

Continuous Process Improvement

potential for success

Continuous Process Improvement

Develop implementation plan report

Continuous Process Improvement

Identify unforeseen problems as a result of

Continuous Process Improvement

Continuous Process Improvement

problem solving in all work activities

Besterfield: Quality Control, 8th ed..

Besterfield: Quality Control, 8th ed..

Besterfield: Quality Control, 8th ed..

Besterfield: Quality Control, 8th ed..

Besterfield: Quality Control, 8th ed..