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  • Slide 1
  • Quality Management January 2012Quality Management1
  • Slide 2
  • QM Philosophy & Concepts The Total Quality Approach Quality and Global Competitiveness Strategic Management Ethics Partnering Quality Culture Customer Satisfaction Employee Empowerment Leadership and Change Teambuilding and Teamwork Effective Communication Training January 2012Quality Management2
  • Slide 3
  • QM Philosophy & Concepts The Total Quality Approach Quality and Global Competitiveness Strategic Management Ethics Partnering Quality Culture Customer Satisfaction Employee Empowerment Leadership and Change Teambuilding and Teamwork Effective Communication Training January 2012Quality Management3
  • Slide 4
  • What is Quality? January 20124Quality Management
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  • January 20125Quality Management
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  • Quality Quality has been defined in a number of ways. When viewed from a consumers perspective, it means meeting or exceeding customer expectations. January 20126Quality Management
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  • Dimensions of Quality Dimension Product example Mobile phone PerformanceSignal, Battery charge FeaturesInternet, camera,...... ConformanceWorkmanship ReliabilityMean-time-to-failure DurabilityUseful life ServiceabilityEase of repair ResponseCourtesy of dealer AestheticsSurface finish ReputationCustomer report ranking January 20127Quality Management
  • Slide 8
  • Two Views of Quality How well the features of a product or service meet the customer need and therefore provide them with satisfaction => higher quality costs (usually) more Freedom from failures => higher quality costs (usually) less January 2012Quality Management8
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  • Total Quality Total quality is an approach to doing business that attempts to maximize an organizations competitiveness through the continual improvement of the quality of its products, services, people, processes, and environments. January 20129Quality Management
  • Slide 10
  • Managing for Quality (Juran) A set of universal methods that any organization, whether a business, an agency, a university or a hospital can use to attain superior results by designing, continuously improving and ensuring that all products, services and processes meet customer and stakeholder needs. January 2012Quality Management10
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  • Jurans trilogy Designing and planning for Quality Compliance, controlling and assuring quality Improving quality January 2012Quality Management11
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  • Jurans trilogy Creating processes to design goods and services to meet needs of the stakeholders (internal and external). Understand needs of customers Creating processes to control quality. Ensure compliance to design criteria Creating a systematic approach to improve continuously. Failures must be discovered and remedied. => Create functions and skills to do the things above January 2012Quality Management12
  • Slide 13
  • Financial trilogy Financial planning Annual financial and operational budgets (revenues, costs and profits) Financial goals for the organization and its divisions Financial control Evaluation of actual financial performance and taking action on the differences Cost control, expense control, risk management, inventory control, etc. Financial improvement Improvement of financial results Cost reduction projects, new facilities, new product development, M &A, joint ventures, etc January 2012Quality Management13
  • Slide 14
  • Quality planning Establish the project and design goals Identify the customers Discover the customer needs Develop the product or service features Develop the process features Develop the controls and transfer to operations => Customer customer needs- product features process features- process control features January 2012Quality Management14
  • Slide 15
  • Quality planning tools Benchmarking Brainstorming Competitive analysis Control charts FMEA Flow diagram Process capability Scatter diagram Etc. January 2012Quality Management15
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  • Quality Control Assure Repeatable and Compliant Processes January 2012Quality Management16
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  • Quality Control Tools SPC (Statistical Process Control) Problem Solving methods Poka Yoke January 2012Quality Management17
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  • Quality Improvement Create breakthroughs in Performance January 2012Quality Management18
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  • Quality Improvement Tools Six Sigma RDMAIC process Recognize Define Measure Analyze Improve Control January 2012Quality Management19
  • Slide 20
  • Jurans trilogy January 2012Quality Management20
  • Slide 21
  • Key characteristics of the total quality approach are as follows: strategically based, customer focus, long-term commitment, teamwork, employee involvement and empowerment, continual process improvement, education and training, The Total Quality Approach to Quality Management January 201221Quality Management
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  • The rationale for total quality can be found in the need to compete in the global marketplace. Countries that are competing successfully in the global marketplace are seeing their quality of living improve. Those that cannot are seeing theirs decline. The Total Quality Approach to Quality Management January 201222Quality Management
  • Slide 23
  • W. Edward Deming is best known for his Fourteen Points, the Deming Cycle Joseph M. Juran is best known for the Pareto Principle, and the Juran Trilogy. Armand V. Feigenbaum is best known for his Total Quality Control. Philip B. Crosby is best known for his Quality is Free and the Zero Defects program The Total Quality Pioneers January 201223Quality Management
  • Slide 24
  • QM Philosophy & Concepts The Total Quality Approach Quality and Global Competitiveness Strategic Management Ethics Partnering Quality Culture Customer Satisfaction Employee Empowerment Leadership and Change Teambuilding and Teamwork Effective Communication Training January 2012Quality Management24
  • Slide 25
  • Several factors can inhibit competitiveness, including those related to business and government, family, and education. In a global marketplace quality is the key to competitiveness. Total Quality approach minimizes the Cost of Quality, making products or services more competitive Quality and Global Competitiveness January 201225Quality Management
  • Slide 26
  • Costs of Quality Prevention Appraisal and inspection Internal failure External failure COPQ = Costs of Poor Quality January 2012Quality Management26 COPQ
  • Slide 27
  • Prevention Costs Quality Planning activities FMEA analysis Control Plans Quality training Product design Verification January 2012Quality Management27
  • Slide 28
  • Appraisal and Inspection Costs Testing product Reviewing documents Inspecting equipment and supplies End of line inspection Product audits Etc. January 2012Quality Management28
  • Slide 29
  • Internal Failure Costs Rework on product Scrap of non conforming product Correcting database errors Stocking extra parts to replace defective components Etc, January 2012Quality Management29
  • Slide 30
  • External Failure Costs Warranty claims Investigating complaints January 2012Quality Management30
  • Slide 31
  • January 2012Quality Management31 Direct Cost of Poor Quality (4 8% of Sales) Indirect Cost of Poor Quality (15 25% of Sales) Scrap Rework Warranty Customer Return Loss of Customer Loyalty Engineering change Excessive inventory Late delivery Excessive overtime Excessive employee turnover Expediting costs
  • Slide 32
  • Cost of Quality January 2012Quality Management32 Freedom from failures Failure Appraisal & Prevention Total Costs 100% Jurans Cost of Quality
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  • Cost of Quality January 2012Quality Management33 Excess Quality Customer Value of Quality Cost of Quality Junk Zone Profit Zone Quality Costs Freedom from Failures 100%
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  • Quality Cost as % of Sales January 2012Quality Management34
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  • Cost distribution as a % of total cost of Quality January 2012Quality Management35
  • Slide 36
  • COPQ - car recalls Here are the larger recent recalls, and these are just for October 2010- Nissan: 2.2 million vehicles worldwide (747,000 in the U.S.): ignition relay problemNissan BMW: 130,000 vehicles: faulty fuel pump in the twin-turbo inline 6 BMW Honda: 470,000 cars in the U.S.: faulty seal in master brake cylinder Honda Mercedes-Benz: 85,000 E-Class cars: possible power steering connection fitting problem Mercedes-Benz Toyota: 1.53 million cars worldwide (740,000 in the U.S.): faulty seal in master cylinder Toyota GM: 392,000 Chevrolet Impalas: faulty front seat-belt anchors. GM January 2012Quality Management36
  • Slide 37
  • COPQ car recalls USA January 2012Quality Management37 Automakers recalled about 15.5 million vehicles last year compared with 20 million in 2010, according to figures released on Friday by the National Highway Traffic Safety Administration. The figure was the fourth lowest in the last decade.National Highway Tra