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ENGM 620: Quality Management

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ENGM 620: Quality Management Session One 7 September 2010 Introduction to the Course Introduction to Quality Quality Defined Principles of TQM Customer focused ... – PowerPoint PPT presentation

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Title: ENGM 620: Quality Management


1
ENGM 620 Quality Management
  • Session One 7 September 2010
  • Introduction to the Course
  • Introduction to Quality
  • Quality Defined

2
Instructor Information
  • Dr. Kellogg
  • Email Stuart.Kellogg_at_sdsmt.edu
  • Phone 394-6152
  • Fax 394-2484
  • Office Hours M, W, F, 1000-1200 and by
    appointment

3
Course Objectives
  • to educate prospective managers about the
    philosophies and tools of quality management,
  • to provide technical managers with a theoretical
    basis for statistical reasoning and statistical
    process control,
  • to encourage the development of an integrated
    system which can be used as a basis for a
    relevant model within your own organization.

4
Other Information
  • Course website
  • http//skellogg.sdsmt.edu
  • Course materials
  • Text S. Thomas Foster, Managing Quality
    Integrating the Supply Chain, 3rd ed.,
    Pearson/Prentice Hall, 2007.
  • Other handouts will be on the schedule and links
    web page

5
Course Overview
Session Topic Chapter
One Introduction to Quality Quality Defined 1
Two Quality Management Philosophies and Standards 2, 3
Three Quality and Strategy 4
Exam I
6
Course Overview, Cont.
Session Topic Chapter
Four Organizing for Quality, Part I 5, 6, 7
Five Organizing for Quality, Part II 8, 9
Six Quality Tools 10
Exam II
7
Course Overview, Cont.
Session Topic Chapter
Seven Control Charts, Part I 12
Eight Control Charts, Part II 13
Nine Six Sigma, FMEA, Reliability 14
Ten Implementing and Sustaining TQ 11, 15, 16
Exam IIII
8
Grading
  • Case Study 25
  • Exams (3) 75
  • Homeworks are typically assigned weekly. However,
    because of different sections and the pace of
    distance learners, they will not be graded. 
    Solutions will be posted to the course site.

9
Quality Case Study
  • In-depth analysis of one company
  • List and reference of companies in case
    instructions
  • Use all resources you can find literature
    search, contact company, web sites, etc.

10
Online Library Resources
  • Devereaux Librarys Online Research Tools
  • http//www.sdsmt.edu/services/library/new/tools.ht
    m
  • Need barcode (on back of ID or ask library) and
    password (last name) to access off campus

11
Grading of Case Study
  • Organization (30 pts)
  • Introduction of background and objectives
  • Continuity of project development
  • Conclusions clear and based on facts
  •  Style/Format (20 pts)
  • Is the writing clear and concise?
  • Are there few errors in punctuation and grammar?
  • Are all items that need citations appropriately
    credited?
  •  Analysis (50 pts)
  • Are goals objectives clearly defined?
  • Are tasks well identified and assigned?
  • Are arguments and analysis clearly presented and
    logical?
  • Is the project well researched?

12
Introduction to Quality
13
Motivation
Quality
1950 60 70 80 90
2000
Time
14
Quality History
  • 1450 Egyptian wall paintings show evidence of
  • BC inspection
  • 1750 Honore LeBlank manufactures muskets
    to standard pattern
  • 1798 Thomas Jefferson Eli Whitney bring
    standardization to America
  • 1900s Taylor introduces Scientific Management

15
Quality History
  • 1950s Deming Juran introduce quality
    concepts to Japans postwar
    industrialization process
  • 1980 HP tests 300,000 16k chips US has
    4,500 failures Japan has 0 failure
    rate
  • 1984 American Society for Quality Control is
    founded
  • 1985 NASA announces excellence award for
    quality and productivity improvements

16
Quality History
  • 1985 European Economic Community establishes ISO
    9000 Quality Standard
  • 1987 Congress enacts Malcolm Baldrige Quality
    Award
  • 1988 Executive Order 12637, President Reagan
    Productivity Improvement Program for Federal
    Government
  • 2018 Federal Govt. will act on EO 12637

17
99 Defect Free Rate
  • 500 incorrect surgical procedures every week
  • 20,000 prescriptions filled incorrectly each year
  • 12 babies given to the wrong parents each day
  • 16,000 pieces of mail lost each hour
  • 2 million documents lost by IRS each year
  • 22,000 checks deducted from wrong accounts during
    next hour
  • (Ref Quality, March 91)

18
TQM Successes
  • 1967-74
  • Japan increases productivity 99
  • W. Germany productivity up 43
  • US productivity 29
  • Globe Metallurgical
  • 1985 - losing millions annually
  • 1/3 employees laid off
  • 44 customer complaints
  • 1988 - annual sales up 30
  • 4 days absenteeism
  • 4 customer complaints

19
TQM Successes
  • Mt. Edgecumbe High School
  • 1988 initiated C.I.P.
  • 72 go to college (37)
  • 47 complete college (20)
  • Cadillac
  • 1980 - era of stringent emissions fuel economy
  • 1986 - Quality initiative
  • 1990 - Warranty costs 30
  • Productivity 58

20
TQM Failures
  • Florida Power Light
  • 1990 - scrapped 75 of TQM program
  • McDonnell Douglas Corp.
  • scrapped TQM after 2 years
  • Wallace Co.
  • Winner of Baldrige Award
  • Filed for Chapter 11
  • 500 Companies Surveyed
  • 36 say TQM has had significant impact

21
Quality Mgmt. Paradigm Shift
  • Quality costs time
  • Work is a series of events
  • Quantity is as important as quality
  • Quality means hitting preset goals
  • 95 is great
  • Quality is the result of better inspection
  • Quality saves time
  • Work is an integrated process
  • W/O quality, quantity is irrelevant
  • Quality means continuous improvement.
  • 100 is good
  • Quality must be built into the process

22
Quality Mgmt. Paradigm Shift
  • Suppliers must be kept on their toes
  • Customers are who you sell to
  • To achieve quality, we need more people
  • Suppliers must feel like they are partners
  • Customers are an integral part of your
    organization
  • People simply need better leadership training

23
Dimensions of Competition
  • Selling Price
  • Quality
  • Dependability
  • Flexibility
  • Time
  • Service

24
Selling Price
  • Traditional View Cost Desired
    Profit Selling Price
  • Modern View Market Price - Cost
    Profit

25
Manufacturing/Service Trends
  • The Name of the Game is
  • Concurrent Engineering
  • Process Reengineering

26
Quality Defined
  • Product based
  • Quality is a precise and measurable variable
  • e.g. stitches per inch
  • User based
  • Quality is determined by what a customer wants
  • e.g. Nissan - Datsun 280Z
  • external internal customers

27
Quality Defined
  • Manufacturing based
  • Quality is an outcome of engineering and
    manufacturing practice
  • e.g., conformance to specifications
  • Value based
  • Quality is defined in terms of costs and prices
  • e.g., a quality product provides performance at
    an acceptable price

28
Quality Defined
  • By Function
  • Engineering
  • Supply Chain
  • Operations
  • Strategic Management
  • Marketing
  • Financial
  • Human resource

29
Dimensions of Quality Tangible
  • Performance
  • principal operating characteristics
  • Features
  • supplements to the basic function of product
  • Reliability
  • probability of product failure in given time
  • Conformance
  • degree to which product meets design
    specifications
  • Durability
  • products economic life span
  • Tolerate stress or trauma without failure
  • Serviceability
  • speed, courtesy, competency of repair

30
Dimensions of Quality Intangible
  • Aesthetics
  • products look or feel
  • Empathy
  • ability to understand satisfy human needs
  • Professionalism
  • ability to provide whole-life product and
    customer support

31
Additional Dimensions
  • Timeliness
  • Completeness
  • Courtesy
  • Consistency
  • Convenience
  • Accuracy
  • Responsiveness
  • Mostly used for service situations

32
Actual vs. Perceived Quality
  • Actual quality
  • Defined by the provider
  • Measurable
  • Perceived quality
  • Defined by the user
  • Not always measurable

33
Quality by Any Other Name
  • Total Quality Management
  • Quality Improvement Process
  • Total Quality Improvement
  • Total Quality Control
  • Continuous Productivity Improvement
  • Continuous Improvement Process
  • Continuous Measurable Improvement
  • Business Process Re-Engineering
  • Six Sigma

34
Principles of TQM
  • Customer focused
  • Responsibility of management
  • Decision making basis
  • Quality is everyones job
  • All voices at the table
  • Continuous improvement

35
Customers and Stakeholders
  • meet or exceed customer expectations
  • How do we know what the customer wants?
  • Who are our customers?
  • Who are our stakeholders?

36
Service
Customers appreciate the provision of service
before and after the sale.
37
Responsiveness
Customer Satisfaction
Cost Quality Dependability Flexibility
Time Service
6 Dimensions of Competition
Continuous RD Advanced Tech.
Integration Improvements
People Systems
Structural Prerequisites
Customer Driven Strategy
38
Benefits of Decreased Lead Time
  • Capture Market Share
  • Define Market
  • Premium Price
  • Inventory Levels
  • Quality
  • Productivity
  • Morale

39
Participation and Teamwork
  • All appropriate voices
  • Decision-making at the site
  • Empowerment to improve
  • Relationships with internal and external partners

40
Process Focus supported by Continuous Improvement
and Learning
  • Transformation Process
  • Turns organizational inputs into organizational
    outputs
  • Organizational Learning
  • Knowledge management complimented by appropriate
    behavioral change

41
Continuous Improvement
  • Often called kaizen
  • Incremental and radical

42
Continuous Improvements
Consider a product where the probability of a
defect is 0.1 any stage. After 5 stages, the
probability of no defects is given by
For Pd 0.01, n30 stages
43
Continuous Improvements
Consider a product where the probability of a
defect is 0.1 any stage. After 5 stages, the
probability of no defects is given by
.95 .59
P (1 - pd)5
For Pd 0.01, n30 stages,
P .9930 .74
44
Three Levels of Quality
  • Organizational level
  • meeting external customer requirements
  • Process level
  • linking external and internal customer
    requirements
  • Performer/job level
  • meeting internal customer requirements

45
Systems Perspective
  • Quality not just for manufacturing any more
  • Joint optimization of people and technology

46
Next Class
  • Homework
  • Skim chapter 1 in the text
  • Topic
  • Quality Management Philosophies and Standards
  • Preparation
  • Chapters 2 and 3
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