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TotalQualityManagementPart0:WhatisQuality?Part1:EconomicsofQualityPart2:TQM:PrinciplesandManagerialMethodsPart3:TQM:ImprovementToolsPrincipalobjectivesofthelectureWhatisquality?Theeconomicsofquality:Whatistherelationshipof:QualityandCostQualityandProductivityQualityandProfitabilityWhatistotalqualitymanagement?WhatisQuality?Fivedefinitionsofquality
-GarvinTranscendentProduct-basedUser-basedManufacturing-basedValue-basedTranscendent“Qualityisneithermindnormatter,butathirdentityindependentofthetwo…Eventhoughqualitycannotbedefined,youknowwhatitis.” -RobertM.PirsigProduct-based“Differencesinqualityamounttodifferencesinthequantityofsomedesiredingredientorattribute.” -LawrenceAbbotUser-based“Qualityisfitnessforuse.” -JosephM.JuranManufacturing-based“Qualityisthedegreetowhichaspecificproductconformstoadesignorspecification.” -HaroldL.Gilmore“Qualityisproductuniformityaroundthetarget.” -GenichiTaguchiValue-based“Qualityisthedegreeofexcellenceatanacceptablepriceandthecontrolofvariabilityatanacceptablecost.” -RobertA.BrohDimensionsofqualityPerformance(primaryproductcharacteristics)Features(““bellsandwhistles”)Reliability(frequencyoffieldfailures)Conformance(matchwithspecifications)Durability(productlife)Serviceability(speed,courtesy,orcompetenceofrepair)Aesthetics(““fitsandfinishes””)Perceivedquality(reputationandintangibles)DimensionProductExample:ServiceExample:StereoAmplifierCheckingAccountatBankPerformanceSignal-to-noiseratio,powerTimetoprocesscustomerrequestsFeaturesRemotecontrolAutomaticbillpayingReliabilityMeantime-tofailureVariabilityoftimetoprocessrequestsDurabilityUsefullife(withrepair)KeepingpacewithindustrytrendsServiceabilityEaseofrepairResolutionoferrorsCourtesyofdealerCourtesyoftellerEstheticsOak-finishedcabinetAppearanceofbanklobbyReputationConsumerReportsrankingAdviceoffriends,yearsinbusinessSource:ModifiedfromPaulE.Plsek,““DefiningQualityattheMarketing/DevelopmentInterface.””QualityProgress,June1987,pp.28-36.QualitySpecificationsDesignqualityinherentvalueoftheproductorserviceinthemarketplaceConformancequalitydegreetowhichtheproductorservicedesignspecificationsaremetDesignQualityConformanceQualityFitnessofUseFitnessofusedegreetowhichthefinalproductorservicemeetsthecustomer’sobjectivesEconomicsofQualityQualityCostProductivityProfitabilityTraditionalcost/qualitytradeoffCostQualityQualityandcostUnavoidablecosts(PriceofConformance=POC)AppraisalPreventionAvoidablecosts(PriceofNonconformance=PONC)InternalfailureExternalfailureAppraisalcostsTestandinspectionmaterialsandservicesWagesofinspectionpersonnelProductqualityauditsMaintenanceoftestequipmentCustomersatisfactionauditsSupplierappraisalsEmployeesurveysMysteryshopperprogramPreventioncostsQualityplanningProcesscontrolEducationandtrainingPreventivemaintenanceSuppliertraining/certificationFailureanalysisCustomerrelationshipmanagementQualitysystemsdevelopmentInternalfailurecostsScrapReworkDowntime/overtimeDowngrading/dispositionAnalysisofscrap/reworkAccidents/injuriesEmployeeturnoverLossofmoraleHandlinggrievancesExternalfailurecostsComplaintsprocessingWarrantyProductrecallProductliabilityFieldserviceRepairAdministrativecostsPONCestimatesCOMPANYYEARPONCaspercentageofsalesIBM198015-40Motorola198613Heinz1989($350-400Million)Motorola19898($800Million)GeneralelectricestimatesSTAGECostperdefectperproductSupplierinspectioncost$0.003Incominginspectioncost$0.03Fabricationinspectioncost$0.30Subproducttestcost$3.00Finalproducttestcost$30.00Productservicecost$300.00TraditionalprocessesCostConformanceQuality0%100%TotalcostPONCPOCEmergingprocessesCostConformanceQuality0%100%TotalcostPONCPOCQualityandproductivity
Productivity= Output InputCommonroots:DesignformanufacturabilitySimplicityImprovedequipmentBettermaintenanceLessdowntimeWorkermotivationQualityandprofitabilityProfit=Revenue-Cost=(Price)(Sales)-CostQualityandprofitability1)MarketGainsHigherQuality-GarvinImprovedReputationHigherMarketShareExperience-basedeconomiesHigherPricesHigherProfitsQualityandProfitability(cont.)2)CostHigherQualityLowerperunitCostWhatistotalqualitymanagement?ThetotalqualitymanagementtriangleBedrockprinciplesManagerialmethodsImprovementtoolsTQMBedrockprinciplesCustomerfocusContinuousimprovementTotalemployeeinvolvementCustomerfocus“Acustomeristhemostimportantpersonevenintheoffice…inpersonorbymail.Acustomerisnotaninterruptionofourwork…heisthepurposeofit.””-L.L.BeanCustomerfocusKnowthycustomersWhotheyareWhattheirrequirementsareOnlythecustomercandefinecustomersatisfactionQualityiswhatthecustomersaysitis!Organizationalself-assessmentContinuousimprovementContinuousimprovementofallprocesses-foreverRESULT……..ProcessProcess:Thewayeveryonethinks,behaves,andactseverydayThequalityinclineA(ACT)P(PLAN)C(CHECK)D(DO)QUALITYTotalemployeeinvolvementInsideeveryindividualisinfinitecreativepotentialInvolvementisgettingpeople’sideas,andrespectingthoseideasManagementhastoaskforideasLetthemmaketheirworkplacebetterforthemselvesTotalemployeeinvolvement(cont.)InaserviceorganizationcustomerrelationsareareflectionofemployeerelationsQualityisastateofmindNootherresourceimproveswithageTotalemployeeinvolvementTQMisnotaspectatorsportIhearandIforgetIseeandIrememberIdoandIunderstandManagerialmethodsGovernanceOrganizationDecisionmakingManagerialmethods“Thepeopleworkinasystem.Thejobofthemanageristoworkonthesystemtoimproveit,constantly,withtheirhelp.”-MyronTribusManagementbyfactPreventionbasedProcess-orientedManagerialmethodsPushPowerUpCustomersFrontlineemployeesSupportunitsManagersManagerialmethodsMachoManagerBenevolentManagerParticipativeManagerTQMLeaderManagerDotoDoforDowithFacilitateEnableProcess-orientedmanagementRESULT……..DisciplineTimemanagementPersonaldevelopmentParticipationMoraleCommunicationTeamworkPEOPLEPerformanceCheckwiththeresult,notbytheresultRelationshipmanagement“Thecustomerusuallydoesn’’tknowwhathe’’sgettinguntilhedoesn’’t.””-TedLevittSellingMarketingRelationshipmanagementProviderProviderCustomerCustomerProviderCustomerWhatTQMisnotItisnotaprogramItisnotagiftItisnotdelegatingresponsibilityforqualityDr.Deming’’svisittoFord“Wewantedtotalktohimaboutquality.Hewantedtotalktousaboutmanagement.Wewantedtotalkaboutqualityimprovementtoolswecoulduse.Hewantedtotalktousaboutculturechange.Wewantedtoknowwhatprogramswouldwork.Hewantedtoknowseniormanagement’’svisionforthecompany.””-JohnA.BettiUnderSecretaryofDefenseWhatwehavelearnedthislecture:Whatisquality?Theeconomicsofquality:Whatistherelationshipof:QualityandCostQualityandProductivityQualityandProfitabilityWhatistotalqualitymanagement?Quality“experts”andthequalityimprovementprograms.9、静夜四四无邻,,荒居旧旧业贫。。。12月-2212月-22Thursday,December29,202210、雨中黄叶叶树,灯下下白头人。。。12:50:2612:50:2612:5012/29/202212:50:26PM11、以以我我独独沈沈久久,,愧愧君君相相见见频频。。。。12月月-2212:50:2612:50Dec-2229-Dec-2212、故故人人江江海海别别,,几几度度隔隔山山川川。。。。12:50:2612:50:2612:50Thursday,December29,202213、乍见翻疑梦梦,相悲各问问年。。12月-2212月-2212:50:2612:50:26December29,202214、他乡乡生白白发,,旧国国见青青山。。。29十十二二月202212:50:26下下午午12:50:2612月月-2215、比不了得得就不比,,得不到的的就不要。。。。十二月2212:50下午12月-2212:50December29,202216、行行动动出出成成果果,,工工作作出出财财富富。。。。2022/12/2912:50:2612:50:2629December202217、做前,能能够环视四四周;做时时,你只能能或者最好好沿着以脚脚为起点的的射线向前前。。12:50:27下下午12:50下午12:50:2712月-229、没有失败败,只有暂暂时停止成成功!。12月-2212月-22Thursday,December29,202210、很很多多事事情情努努力力了了未未必必有有结结果果,,但但是是不不努努力力却却什什么么改改变变也也没没有有。。。。12:50:2712:50:2712:5012/29/202212:50:27PM11、成功就是日日复一日那一一点点小小努努力的积累。。。12月-2212:50:2712:50Dec-2229-Dec-2212、世世间间成成事事,,不不求求其其绝绝对对圆圆满满,,留留一一份份不不足足,,可可得得无无限限完完美美。。。。12:50:2712:50:2712:50Thursday,December29,202213、不知香香积寺,,数里入入云峰。。。12月-2212月-2212:50:2712:50:27December29,202214、意意志志坚坚强强的的人人能能把把世世界界放放在在手手中中像像泥泥块块一一样样任任意意揉揉捏捏。。29十十二二月月202212:50:27下下午午12:50:2712月月-2215、楚楚塞塞三三湘湘接接,,荆荆门门九九派派通通。。。。。十二二月月2212:50下下午午12月月-2212:50December29,202216、少年年十五五二十十时,,步行行夺得得胡马马骑。。。2022/12/2912:50:2712:50:2729December202217、空山新新雨后,,天气晚晚来秋
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