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Chapter 5 Total Quality Management

defining quality
definition of quality is dependent on the people defining it; no single universal definition
5 ways to define quality
1. conformance to specifications- how well it meets targets
2. fitness for use- evaluates performance for intended use
3. value for price paid- evaluation of usefulness vs. price paid
4. support services- quality of support after sale
5. psychological- ambiance, prestige, friendly staff
manufacturing quality
focuses on tangible product features: conformance, performance, reliability, features, durability, serviceability
service quality
produces intangible products that must be experiences: consistency, responsiveness, courtesy, timeliness, atmosphere
cost of quality
quality affects all aspects of the organization
quality control costs
to achieve high quality; prevention costs, appraisal costs
quality failure costs
consequences of poor quality; internal failure costs, external failure costs
prevention costs
costs of preparing and implementing a quality plan
appraisal costs
costs of testing, evaluating, and inspecting quality
internal failure costs
costs of scrap, rework, and material losses
external failure costs
costs of failures at customer site, including returns, repairs, and recalls
Evolution of TQM
old concept of quality: inspect quality after production
early 1900s: inspections
1940s: statistical sampling
1960s: organizational quality focus
new concept of quality:
1980s and beyond: customer driven quality
stressed management’s responsibility for quality’ developed 14 points to guide companies in quality improvement
coined phrase “quality is free”; introduced concept of zero defects
TQM Philosophy
focuses on identifying quality problem root causes; encompasses the entire organization; involves the technical as well as people
7 concepts of TQM Philosophy
1. customer focus
2. continuous improvement
3. employee empowerment
4. use of quality tools
5. product design
6. process management
7. managing supplier quality
customer focus
identify and meet customer needs; stay tuned to changing needs
continuous improvement
continuous learning and problem solving; benchmarking, Plan-Do-Study-Act
employee empowerment
empower all employees; external and internal customers; team approach : 8-10 people
use of quality tools
ongoing training analysis, assessment, and correction, and implementation tools; studying practices at “best in class” companies
Plan-Do-Study-Act Cycle
PDSA. Deming Wheel. circular, never ending problem solving process or continuous improvement process
Seven Tools of Quality Control
1. cause and effect diagrams
2. flowcharts
3. checklists
4. control checks
5. scatter diagrams
6. pareto analysis
7. histograms
Quality Function Deployment (QFD)
ensures product design meets customer expectations; useful tool for translating customer specifications into technical requirements
PDSA Details
Plan: evaluate current process, collect data, develop improvement plan.
Do: implement plan.
Study: collect data and evaluate against objectives.
Act: communicate the results from trial; if successful, implement new process
cause and effect diagrams
fishbone diagram, brainstorming
schematic diagrams, used to document the detailed steps in a process; often first step in process re-engineering
designed to identify type of quality problems at each work station
control charts
UCL and LCL are calculated limits used to show when a process is in or out of control
scatter diagrams
graph showing how two variables are related to each other. * the greater the degree of correlation, the more linear the observations
pareto analysis
displays the degree of importance for each element. 80/20 – majority of quality problems are results of a few problems
chart that shows the frequency distribution of observed values of a variable; displays whether the distribution is normal or skewed
the probability that the product, service, or part will function as expected; no product is 100% certain to function properly; dependent on sub-parts or components; less reliability= more components
reliability formula
Rs= (R1)(R2)(R3)… (Rn)
Rs= reliability of product/system
process management and managing supplier quality
quality products come from quality sources; must be built into the process; the belief that it is better to uncover source of quality problems and correct it; TQM extends to quality of product from company’s suppliers
why TQM efforts fail
lack of genuine quality culture; lack of top management support and commitment; over and under reliance on SPC methods

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