BONUS Quality Managment-&-Business Excellence Overview Chp 11
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Transcript of BONUS Quality Managment-&-Business Excellence Overview Chp 11
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Total Quality
Management
and the
Transition To Business
Excellence
Dr. Rick L. EdgemanSIX SIGMA BLACK BELT
Professor & Chair
Department of Statistics415 Brink Hall
University of Idaho
Moscow, Idaho 83844-1104
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The TQM philosophyderives from onefoundational idea:
everything must be gearedtowards customer
satisfaction, the engine
which drives the companyand on which its futuresurvival depends.
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ImproveContinuously
Focus onCustomers
Base Decisionson Fact
Let Everybodybe Committed
Focus onProcesses
Top Management
Commitment
Methodologies
Bench-marking
Quality FunctionDeployment
EmployeeDevelopment
QualityCircles
ProcessManagement
SupplierPartnership
Design of
Experiment
Self-
assessment
PolicyDeployment
Aim: Increase external and internal customer satisfactionwith a reduced amount of resources
Total QualityManagement
ToolsControlCharts
IshikawaDiagram
TreeDiagram
Relation
Diagram
ProcessMaps
Criteria ofMBNQA
QualityHouse
ISO9000
SixSigma
Hypothesis
testing
Values
FactorialDesign
Matrices
Total Quality Management (TQM) can be seen as a continuously evolved management system, consisting of values, methodologies and tools. The
aim of the system is to increase external and internal customer satisfaction with a reduced amount of resources. It is important to note, that the
techniques and tools in the figure are just examples and not a complete list. In the same way the values may also vary a little between different
organisations and over time. (From Hellsten & Klefsj, 2000.)
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What is Quality?
A Customer-Centric View
Continuous Satisfaction ofCustomer Requirements
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What is
Quality Management?
Achievement of Quality at Low Cost.
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What is
Total QualityManagement?
Attainment of
Total QualityThrough EveryonesCommitment on a Daily Basis
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SO ..
Qualityis a state in which value entitlement isrealized for the customer and provider in every aspect
of the business relationship.
Business qualityis highest when the costs are atthe absolute lowest for both the producer & consumerand is most readily attained when the entirety of the
organizations human resource is engaged..
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Anything Else is Just a Killer
Renaults
Five Principles of a New Culture
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Fundamentally, organizational culture
can be thought of as
the way we do things around here.
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The Customer is the Ultimate Judge of Value
The Search for aLean
ApproachControlling the Process Means Reducing Dispersion
Involving & Empowering People
The Spiral of Continuous Improvement
QualityCulturePrinciples
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Progress Through S-PDSA
People
Processes
Reducing Waste
Cost
Delivery
Quality
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Performance
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an overall way of working
that balances stakeholder interests and
increases the likelihood of
sustainable competitive advantageand hence long-term organizational success
through operational, customer-related, financial
and marketplace performance excellence.
Edgeman, Dahlgaard, Dahlgaard & Scherer, 1999
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An Aligned Approach to Organizational
Performance Management That Results In:
Delivery of Ever-Improving Value to Customers, Resulting in
Marketplace Success;
Improving Organizational Effectiveness and Capabilities; and
Organizational and Personal Learning.
Harry Hertz
15 Sept. 2000
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The comprehensive, systematic, and
regular review of an organizations activities
and results against a specified model.Purpose:
Identification of strengths, weaknesses andopportunities for improvement.
The Principal Use of Excellence Models
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Business Excellence Principles
Leadership & Constancy of Purpose Customer Focus
Results Orientation
Management by Processes & Facts
People Development & Involvement
Continuous Learning, Innovation &
Improvement
Partnership Development
Public Responsibility
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European Quality Award Excellence Criteria
People
Processes
Leadership
Policy & Strategy
Key Performance Results
Partnerships & Resources
Customer ResultsSociety Results
People Results
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Input Transform Output
The EQA Excellence Model as an
Input-Transform-Output-Inform Model
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From TQM to Business Excellence
Leadership
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Quality Awards Around the World
Programs in place
No programs
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ISO 9000:2000
Quality system standards adopted byInternational Organization for Standardization
in 1987; revised in 1994 and 2000
Technical specifications and criteria to be usedas rules, guidelines, or definitions of
characteristics to ensure that materials,
products, processes, and services are fit fortheir purpose.
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Objectives of ISO Standards (1 of 2)
Achieve, maintain, and continuously improve
product quality
Improve quality of operations to continually
meet customers and stakeholders needs
Provide confidence to internal management
and other employees that quality
requirements are being fulfilled
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Objectives of ISO Standards (2 of 2)
Provide confidence to customers and other
stakeholders that quality requirements are
being achieved
Provide confidence that quality system
requirements are fulfilled
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Structure of ISO 9000 Standards
Four major sections:
Management Responsibility
Resource Management
Product Realization
Measurement, Analysis, and Improvement
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ISO 9000:2000 Quality
Management Principles1. Customer Focus
2. Leadership
3. Involvement of People
4. Process Approach
5. System Approach to Management
6. Continual Improvement7. Factual Approach to Decision Making
8. Mutually Beneficial Supplier Relationships