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Compare and contrast Lean thinking and Quality Management Theory Can they be complemented to achieve business success ?

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Title: Compare and contrast Lean thinking and Quality Management Theory Can they be complemented to achieve business success ?


1
Compare and contrast Lean thinking and Quality
Management Theory Can they be complemented to
achieve business success ?
  • Group QRMS1202_Team5
  • Jainwit Tongbai ID 1255321
  • Zeyd Bohurler ID 1265886
  • Mathews John ID 1259600
  • Thomas Oliphant ID 1258996
  • Apoorva Ravikrishnan ID 1262022
  • Vasileios Zisis ID 1266493

2
CONTENTS
  • Evolution of Quality Management Theory
  • Deming Philosophy
  • Deming Cycle by Dr. Shewhart
  • Ishikawa Quality Theory
  • Total Quality Management
  • Six Sigma
  • Lean Thinking
  • Compare and Contrast Fit for business success

3
Evolution of Quality Management Theory
4
Deming Philosophy Quality Management Theory
  • Management is to be responsible for 94 of
    quality problems.
  • Place the importance and responsibility both
    individual level and company level.
  • 14 points of philosophy
  • Small , large organisation public , private or
    service sectors.

5
Demings Quotes Quality Management Theory
If you do not know how to ask the right
question, you discover nothing. W. Edwards
Deming
It is not enough to do your best, you must know
what to do, and then do your best. W. Edwards
Deming
Hold everybody accountable ? Ridiculous !
W. Edwards Deming
Quality is everyone's responsibility. W.
Edwards Deming
Profit in business comes from repeat customers,
customers that boast about your project or
service, and that bring friends with them. W.
Edwards Deming
You should not ask questions without knowledge.
W. Edwards Deming
Lack of knowledge... that is the problem.
W. Edwards Deming
6
Deming 14 Points
Edwards Deming Philosophy 1 Create constancy
of purpose towards improvement of product and
service 2 Adopt the new philosophy. We can no
longer live with commonly accepted levels of
delay, mistakes and defective workmanship 3
Cease dependence on mass inspection. Instead,
require statistical evidence that quality is
built in 4 End the practice of awarding business
on the basis of price 5 Find problems. It is
managements job to work continually on the
system 6 Institute modern methods of training
on the job 7 Institute modern methods of
supervision of production workers, The
responsibility of foremen must be changed from
numbers to quality 8 Drive out fear, so that
everyone may work effectively for the company 9
Break down barriers between departments 10
Eliminate numerical goals, posters and slogans
for the workforce asking for new levels of
productivity without providing methods 11
Eliminate work standards that prescribe numerical
quotas 12 Remove barriers that stand between the
hourly worker and their right to pride of
workmanship 13 Institute a vigorous programme of
education and retraining 14 Create a structure in
top management that will push on the above points
every day
7
Deming 14 Points
2. The new Philosophy
1. Constancy of purpose
4. End lowest tender contracts
3. Cease mass production inspection
8
Deming 14 Points
5. Improve every process
6. Institute training on the job
7. Institute leadership of people
8. Drive out fear
9
Deming 14 Points
9. Breakdown barriers
10. Eliminate slogans / Do it right first time
11. Eliminate arbitrary numerical targets
12. Permit pride of workmanships
10
Deming 14 Points
13. Encourage education
14. Top management commitment and actions
  • Put everybody in organisation to work to
    accomplish the change.
  • Institute a vigorous programme of education
  • and self-improvement.

11
Systematic Approach Deming Cycle by Dr.
Shewhart
Father of Gurus
Quality Process is Under Control
Continious Improvement
Control Charts
12
Dr. Ishikawa 7 QC Tools Quality Management
Theory
  • Late 1950s Japanese developed new concepts in
    response to the Americans

Management of Quality
7 Quality Tools
Customer Orientation
Managing the Quality Customer Orientation Japanese
Way of Quality 7 Quality Tools
13
Dr. Ishikawa 7 QC Tools
Late 1950s Japanese developed new concepts in
response to the Americans 7 Tools Pareto
analysis ? Which are the big problems? Cause
and effect diagrams ? What causes the
problems? Strati?cation ? How is the data
made up? Check sheets ? How often it occurs
or is done? Histograms ? What do overall
variations look like? Scatter charts ? What
are the relationships between factors? Process
control charts ? Which variations to control
and how?
14
Dr. Ishikawa 7 QC Tools
Late 1950s Japanese developed new concepts in
response to the Americans 7 Tools Pareto
analysis ? Which are the big problems? Cause
and effect diagrams ? What causes the
problems? Strati?cation ? How is the data
made up? Check sheets ? How often it occurs
or is done? Histograms ? What do overall
variations look like? Scatter charts ? What
are the relationships between factors? Process
control charts ? Which variations to control
and how?
15
Total Quality Management Concepts
  • At its core, total quality management (TQM) is a
    management approach to longterm success through
    customer satisfaction.
  • In a TQM effort, all members of an organization
    participate in improving processes, products,
    services, and the culture in which they work.

16
Total Quality Management
  • The primary elements can be classified as
  • Customer-focused.
  • Total employee involvement.
  • Process-centered.
  • Integrated system.
  • Strategic and systematic approach.
  • Continual improvement.
  • Fact-based decision making.
  • Communications.
  • Total quality management can be summarized as a
    management system
  • for a customer focused organization that
    involves all employees in continual
  • improvement.
  • It uses strategy, data, and effective
    communications to integrate the quality
    discipline into the culture and activities of the
    organization.

17
Total Quality Management
  • Total Quality Management has few short-term
    advantages. Most of its benefits are
  • long-term and come into effect only after it is
    running smoothly.
  • Advantages of Total Quality Management
  • Improves reputation- faults and problems are
    spotted and sorted quicker (zero defects)
  • Higher employee morale workers motivated by
    extra responsibility, team work and involvement
    in decisions of TQM
  • Lower costs Decrease waste as fewer defective
    products and no need for separate
  • Quality Control inspectors
  • Disadvantages of Total Quality Management
  • Initial introduction costs- training workers and
    disrupting current production whilst being
    implemented
  • Benefits may not be seen for several years
  • Workers may be resistant to change may feel
    less secure in jobs
  • By focusing too much on the customers, the
    production based method might have a cheaper and
    more faster way of doing business and this method
    is rejected.
  • Also the costs of inspection of processes as well
    as Research and development projects might be too
    costly.

18
Six Sigma
  • Motorola developed six sigma in 1987
  • Similar to other quality management techniques
    but represents an organizational approach to
    improvement
  • Ford, Honeywell- famous organizations to have
    implemented six sigma

19
Definition
  • Business process that allows companies to
    drastically improve their bottom line by
    designing and monitoring everyday activities in
    ways that minimize wastes and resources while
    increasing customer satisfaction
  • -Harry and Schroeder

20
Advantages of Six Sigma
  • Achieve maximum customer satisfaction and
    minimize the defects
  • Profitability increases and Costs reduce
  • Can be implemented in any business
  • Targets Variation in the processes and focuses on
    the process improvement rather than final outcome
  • Focuses on prevention on defects rather than
    fixing it

21
Disadvantages of Six Sigma
  • Emphasis on the rigidity of the process which
    contradicts innovation and creativity
  • Require skilled man force
  • A lot of real time barriers need to be resolved
  • Immediate results are not seen

22
Lean Thinking Concept
23
Lean Principles
Lean Principles
  • There are five Principles that help us seek lean
  • Specify Value
  • Identify the value stream
  • Make the value flow
  • Let the customer pull
  • Pursue perfection

24
Lean Enablers
  • There are four lean enablers
  • Value Stream Mapping
  • Visual Management
  • Standardisation
  • 5 S (sort, segregate, shine, standardise,
    sustain)

25
Lean Techniques
  • We can use six lean techniques (especially during
    NPI)
  • Project Management
  • Integrated Product Team
  • Knowledge Management
  • Risk Assessment
  • Requirements Capture
  • Core Competence

26
Six Sigma Business Advantages
  • It focuses on the customer
  • It gives clear objectives and goals to aim for
  • 3.14 dpmo
  • Its a systematic approach
  • Its Measurable and quantifiable
  • It uses well-proven statistical tools
  • It gives a change in culture
  • Inspired by Demings Plan, Do, Check, Act cycle
  • Through reducing variation it improves quality

27
TQM Business Advantages
  • It focuses on the customer
  • Improves and unifies processes
  • It gives employees moral through involvement in
    decisions
  • By reducing waste is reduces costs
  • Improves reputation through improved quality
  • Uses analytical and statistical tools

28
Lean Manufacturing Business Advantages
  • It focuses on the customer
  • Gives clear objectives and goals
  • By reducing waste you also reduce costs and
    increase quality
  • Reduces lead time
  • Improves flow in processes
  • Can be applied to all aspects of the business
  • Increases employee knowledge, become experts in
    their field
  • Improves cross-functional communication
  • Builds customer and supplier relations
  • Reduces effect of hierarchy

29
How can these tools be complemented to achieve
business success?
  • All came about from the Japanese quality
    evolution
  • All inspired from Deming's work
  • All work towards reducing waste to maximise
    process utilization
  • These tools naturally complement themselves
  • Lean thinking moves towards JIT and zero waste
  • TQM focuses on the customer
  • Six Sigma focuses on reduction in variation
  • To successfully implement a mixture of these
    depends entirely on the business application
  • The mixture of techniques depends on what aspect
    the business would best benefit from focusing on

30
References
ECTI (Electrical Engineering/Electronics,
Computer, Telecommunications and Information
Technology Association), 2008. 5th Annual
International Conference of Electrical
Engineering/Electronics, Computer,
Telecommunications and Information Technology
Association. Bangkok, Thailand 14-17 May 2008.
Bangkok Thailand Rahmere, R. , 2011. Top 50
EMS providers cross 150 billion mark ,
Electronics Manufacturing Asia, online
Available atlt http//www.emasiamag.com/article565
9top50emsproviderscross 150billionmark-Asia.htmlgt
Accessed 29 July 2012 SVI Plc., 2011. The
milestones, annual report 2010-2011, Bangkok,
Thailand SVI Plc. Whiteman, A. L., 2009.
Project Management Challenges In The Global
Economy, Project Management Solution, online
Available atlthttp//business.management6.com/Elec
tronics-Manufacturing- Project-Management-Challeng
es-In-The-download-w9119.pdfgt Accessed 28 July
2012
31

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