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Transcript of TQM Principles
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
Quality ControlQuality Control
Chapter 2- Total Quality Chapter 2- Total Quality Management and Management and
PrinciplesPrinciplesPowerPoint presentation to accompanyPowerPoint presentation to accompany
BesterfieldBesterfieldQuality Control, 8eQuality Control, 8e
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PowerPoint presentation to accompanyPowerPoint presentation to accompany BesterfieldBesterfield
Quality Control, 8eQuality Control, 8e
PowerPoints created by Rosida PowerPoints created by Rosida CoowarCoowar
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
OutlineOutline
Introduction Basic Approach Leadership Customer Satisfaction Employee Involvement
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
Outline-ContinuedOutline-Continued
Continuous Process Improvement Supplier Partnership Performance Measures Deming’s 14 Points
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
Learning ObjectivesLearning 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-cont’d.Learning Objectives-cont’d.
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.
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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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.
IntroductionIntroduction
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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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
TQMTQM
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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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
TQMTQM
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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Basic Approach:1. A committed and involved
management to provide long-term top-to-bottom organizational support
2. An unwavering focus on the customer
3. Effective involvement and utilization of the entire work force
TQMTQM
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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Basic Approach cont’d:
4. Continuous improvement of the business and production processes
5. Treating suppliers as partners
6. Establishing performance measures for the processes
TQMTQM
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
11Clear VisionCustomer Satisfaction
LeadershipProcess Orientation
Focus on Quality
Employee Involvement
Supplier Partnering
Continuous Improvement
Business Growth
The Road to Business Growth
TQMTQM
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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Quality Element
Previous State TQM
Definition Product-Oriented
Customer-oriented
Priorities Second to service and cost
First among service and cost
Decisions Short-term Long-term
Emphasis Detection Prevention
Errors Operations System
Responsibility Quality Control Everyone
Prob. Solving Managers Teams
Procurement Price Life-cycle costs
Manager’s Role Plan, enforce etc Delegate, facilitateTable2.1 New and Old CulturesTable2.1 New and Old Cultures
TQMTQM
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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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
TQMTQM
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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The ability to positively influence people and systems to have a meaningful impact and achieve results
LeadershipLeadership
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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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 corporation’s business strategy and leads to enhanced profit and an improved competitive position
LeadershipLeadership
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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Leadership System: Refers to how decisions are made,
communicated, and carried out at all levels; mechanisms for leadership development, self-examination, and improvement
Effectiveness of leadership system depends in part on its organizational structure
LeadershipLeadership
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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Leadership Characteristics:
1. Give priority attention to external and internal customers and their needs
2. Empower, rather than control, subordinates
3. Emphasize improvement rather than maintenance
4. Emphasize prevention
5. Encourage collaboration rather than competition
LeadershipLeadership
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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Leadership Characteristics Cont’d:
6. Train and coach, rather than direct and supervise
7. Learn from problem
8. Improve communications
9. Demonstrate their commitment to quality
10.Choose suppliers on the basis of quality, not price
LeadershipLeadership
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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Leadership Characteristics Cont’d:
11. Establish organizational systems to support the quality effort
12. Encourage and recognize team effort
Leadership is essential during every phase of the implementation process and particular
at the start!!!!!
LeadershipLeadership
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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Begins with the Senior Management’s and the CEO’s commitment
Involvement is required Requires the education of Senior Management
in TQM concepts Timing of the implementation process can be
very important Formation of the Quality Council Development of Core Values, Vision Statement,
Mission Statement, Quality Policy Statement
TQMTQM Implementation Implementation
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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Quality Council: Composed of: CEO, the Senior Managers
of the functional areas, such as design, marketing, finance, production, and quality; and a coordinator or consultant
The coordinator will ensure that the team members are empowered and know their responsibilities
TQMTQM Implementation Implementation
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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Quality Council Duties:
1. Develop the core values, vision, mission, and quality policy statements
2. Develop the strategic long-term plan with goals and the annual quality improvement program with objectives
3. Create the total education and training plan
4. Determine and continually monitor the cost of poor quality
TQM TQM ImplementationImplementation
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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Quality Council Duties:
5. Determine the performance measures for the organization
6. Determine projects that improve the processes
7. Establish multifunctional project and departmental or work group team
8. Establish or revise the recognition and reward system
TQM ImplementationTQM Implementation
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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Core Values for the Malcolm Baldrige National Quality Award:
Visionary Leadership Customer-driven Excellence Organizational & Personal Learning Valuing Employees & Partners
TQMTQM Implementation Implementation
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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Core Values for the Malcolm Baldrige National Quality Award Cont’d:AgilityFocus on the FutureManagement for InnovationManagement by Fact
TQMTQM Implementation Implementation
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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Core Values for the Malcolm Baldrige National Quality Award Cont’d: Social Responsibility Focus on Results and Creating Value Systems Perspective
TQMTQM Implementation Implementation
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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Quality Statements: Include the Vision Statement, Mission
Statement, and Quality Policy Statement They are part of the strategy planning
process, which includes goals and objectives
Develop with input from all personnel
TQMTQM Implementation Implementation
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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Seven Steps to Strategy Planning: Customer Needs Customer Positioning Predict the Future Gap Analysis Closing the Gap Alignment Implementation
TQM TQM ImplementationImplementation
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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Who is the Customer?Who is the Customer?
External CustomerExternal Customer -- -- those who receive the final products. Occurs normally at the organizational level
Internal CustomersInternal Customers -- -- occur at the process and cross-departmental levels within the company
Identifying Customers: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?
CustomerCustomer Satisfaction Satisfaction
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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Checklist to improve satisfaction:Checklist to improve satisfaction:
1. Who are my customers?
2. What do they need?
3. What are their measures and expectations?
4. How is my product or service?
5. Does my product or service exceed expectations?
6. How do I satisfy those needs?
7. What corrective action is necessary?
8. Are customers included on teams?
Customer Customer SatisfactionSatisfaction – – Cont’d.Cont’d.
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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Customer Feedback: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
CustomerCustomer Satisfaction – Satisfaction – Cont’d.Cont’d.
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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Customer Complaints: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
Customer Customer SatisfactionSatisfaction – – Cont’d.Cont’d.
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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Basic Elements of Service Quality:Basic Elements of Service Quality: Organization Customer Communication Front-Line People Leadership
CustomerCustomer Satisfaction – Satisfaction – Cont’d.Cont’d.
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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…………. . any activity by which employees any activity by which employees participate in work-related decisions and participate in work-related decisions and improvement activities, with the objectives improvement activities, with the objectives of tapping the creative energies of all of tapping the creative energies of all employees and improving their motivationemployees and improving their motivation
EmployeeEmployee Involvement Involvement
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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Education and Training: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
Employee Employee InvolvementInvolvement – – Cont’d.Cont’d.
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
36
The Goal is to achieve perfection: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
ContinuousContinuous Process Process ImprovementImprovement
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
37
The Goal is to achieve perfection: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.
ContinuousContinuous Process Process ImprovementImprovement
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
Continuous Continuous ProcessProcess Improvement Improvement
PROCESSPeople
EquipmentMethod
ProceduresEnvironment
Materials
FEEDBACK
OUTPUTInformation
DataProduct
Service, etc.
OUTCOMES
INPUTMaterials
MoneyInformation
Data, etc
CONDITIONS
Figure 2-3 Input/output process model
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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Problem-Solving Method: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
ContinuousContinuous Process Process ImprovementImprovement
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
40
Problem-Solving Method – Phase I: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?
ContinuousContinuous ProcessProcess ImprovementImprovement
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
41
Problem-Solving Method – Phase I:Problem-Solving Method – Phase I: 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.
ContinuousContinuous Process Process ImprovementImprovement
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
42
Problem-Solving Method – Phase I:Problem-Solving Method – Phase I: Develop a comprehensive charter
that specifies Authority Objective and scope Composition Direction and control General
Continuous Continuous ProcessProcess ImprovementImprovement
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
43
Problem-Solving Method – Phase II: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
ContinuousContinuous ProcessProcess ImprovementImprovement
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
44
Problem-Solving Method – Phase III: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
ContinuousContinuous Process Process ImprovementImprovement
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
45
Problem-Solving Method – Phase IV:Problem-Solving Method – Phase IV: Implement Changes
Prepare the implementation plan Obtain approval for the plan Develop implementation plan report
ContinuousContinuous Process Process ImprovementImprovement
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
46
Problem-Solving Method – Phase V:Problem-Solving Method – Phase V: Study the results
Take measurements Evaluate results Identify unforeseen problems as a
result of the changes
ContinuousContinuous Process Process ImprovementImprovement
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
47
Problem-Solving Method – Phase VI:Problem-Solving Method – Phase VI: Standardize the Solution
Institutionalize the change Certify the quality peripherals Certify operators Cross-training
ContinuousContinuous Process Process ImprovementImprovement
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
48
Problem-Solving Method – Phase VII: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
ContinuousContinuous Process Process ImprovementImprovement
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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
SupplierSupplier Partnership Partnership
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
Supplier Selection Criteria:Supplier Selection Criteria: Quality of parts/raw materials
Certified? On-time delivery 100% delivery Technology
Supplier Supplier PartnershipPartnership
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
ServiceBilling ErrorsSales per square feetActivity time
ProductionYieldInventory turnsOn-time delivery
PerformancePerformance Measurements Measurements
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
Cost of Poor Quality: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
PerformancePerformance Measurements Measurements
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
Cost of Poor Quality: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
PerformancePerformance Measurements Measurements
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
Optimum Cost of Poor QualityOptimum Cost of Poor Quality Total Quality Costs = Internal and External
Failure Costs + Prevention and Appraisal Costs Poor quality usually is a result of low investment
in prevention and appraisal This results in an increase in the failure costs
PerformancePerformance Measurements Measurements
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
Optimum Cost of Poor QualityOptimum Cost of Poor Quality As more money/effort is invested in
prevention and appraisal, the quality improves which in turn drives the failure costs down.
The total costs of poor quality is at its lowest when the failure costs are non existent.
PerformancePerformance Measurements Measurements
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
Malcolm Baldrige National Quality Malcolm Baldrige National Quality AwardAward
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
PerformancePerformance Measurements Measurements
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
Malcolm Baldrige National Quality Malcolm Baldrige National Quality AwardAward
Core Values/ConceptsCore Values/Concepts Visionary leadershipVisionary leadership Customer-driven excellenceCustomer-driven excellence Org. and personal learningOrg. and personal learning Valuing employees and partnersValuing employees and partners AgilityAgility Focus on the futureFocus on the future
PerformancePerformance Measurements Measurements
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
Malcolm Baldrige National Quality Malcolm Baldrige National Quality
AwardAwardCore Values/ConceptsCore Values/Concepts Managing for innovationManaging for innovation Management by factManagement by fact Social ResponsibilitySocial Responsibility Focus on results and creating valueFocus on results and creating value Systems perspectiveSystems perspective
PerformancePerformance Measurements Measurements
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
Unacceptable
Poor
Good
Best
High lossHigh loss
Loss (to Loss (to producing producing organizationorganization, customer, , customer, and society)and society)
Low lossLow loss
FrequencyFrequency
LowerLower TargetTarget UpperUpper
SpecificationSpecification
Target-oriented Target-oriented quality yields more quality yields more product in the “best” product in the “best” categorycategory
Target-oriented Target-oriented quality brings quality brings product toward the product toward the target valuetarget valueConformance-oriented Conformance-oriented quality keeps products quality keeps products within 3 standard within 3 standard deviationsdeviations
L = DL = D22CCwherewhere
L =L =loss to loss to societysocietyD =D =distance from distance from target valuetarget valueC =C = cost of cost of deviationdeviation
Taguchi’sTaguchi’s Loss Function Loss Function
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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
Deming’sDeming’s 14 Points 14 Points
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
6. Start training
7. Emphasize leadership
8. Drive out fear
9. Break down barriers between departments
10. Stop haranguing workers
Deming’sDeming’s 14 Points 14 Points
Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.All rights reserved
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 transformationtion
Deming’sDeming’s 14 Points 14 Points