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,Click to edit Master title style,Click to edit Master text styles,Second Level,Third Level,Fourth Level,Fifth Level,Total Quality Management,Total Quality Management,Total Quality Management,Quality has become a high priority issue,Quality impacts the entire organization,suppliers, customers ,design, maintenance,Todays customer is well informed - journals, news,Quality-based management philosophy - key to success,Total Quality ManagementQualit,Total Quality Management,TQM was advanced by W. Edwards Deming in late 50s, I told the Japanese that they would capture markets within five years the world over, that they would take their place alongside prosperous nations. They have done it.,Total Quality ManagementTQM wa,Quality Definitions,The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. - ASQ,Garvin advanced 5 viewpoints;,1. Transcendent2. Product-Based,3. User-Based 4. Manufacturing-Based,5. Value-Based,Quality DefinitionsThe totalit,Customer Driven Quality,Perspective on quality - placement,Internal/external customers,Product Planning,Market segments to be served,Level of performance/price,Level of quality comes from customer,Do not care why it is defective,Customer Driven QualityPerspec,Customer Driven Quality,Customer Driven Quality,Dimensions of Quality,Performance - primary ops characteristics,Availability, Reliability, Durability, Maintainability,Features - secondary characteristics,Warranty - promise of performance,Aesthetics - pleasing characteristics,Price - indicates value of product,Example - Stereo Amplifier,Dimensions of QualityPerforman,Quality Standards,1.,Baldrige Award,- only US firms can apply,2.,Deming Prize,- open to all companies,3.,ISO 9000,- Quality Standards for Europe,Quality Standards1. Baldrige A,Tools of TQM,Quality problems are uncovered by using workers and inspectors who conduct tests on products,People must be trained on the various tools that are available,W. Edwards Deming - PDCA cycle,Tools of TQMQuality problems a,19,PDCA Cycle (Deming Wheel),1.,Plan a change aimed at improvement.,1.,Plan,2.,Execute the change.,2.,Do,3.,Study the results; did it work?,3.,Check,4.,Institutionalize the change or abandon or do it again.,4.,Act,19PDCA Cycle (Deming Wheel)1,Process Flow Chart,Customer drops off car,Mechanic makes diagnosis,Discuss work with customer,Repair Authorized,Visible to customer,Not visible to customer,Repair Not Authorized,Customer departs with car,Parts available?,Perform Work,Y,N,Order Parts,Pass Inspection?,Perform Corrected Work,N,Completed Repair,Notify Customer,Collect Money,Y,Process Flow ChartCustomer dro,17,Cause & Effect Diagram,Does not,meet specs,Man,Machine,Material,Method,Incorrect Measurement,Bad Cleanup,Bad Repair,Temperature Control,Jars Mislabeled,Damaged Product,Not Maintained,Not Clear,17Cause & Effect DiagramDoes n,12,Pareto Analysis,80%,of the problems may be attributed to 20% of the,causes.,Color,Frequency,Scratch,Porosity,Chip,Other,Wine Glasses,12Pareto Analysis80% of the pr,14,Histogram,Frequency,0.41 - 0.50,0.51 - 0.60,0.61 - 0.70,0.71 - 0.80,0.81 - 0.90,Machine 020,14HistogramFrequency0.41 - 0.5,18,Control Charts,970,980,990,1000,1010,1020,0,1,2,3,4,5,6,7,8,9,10,11,12,13,14,15,LCL,UCL,18Control Charts97098099010001,TQM in Service Industry,More difficult to apply to service firms,Perceived quality is affected by service and surroundings,Workers contribute most to perceived quality,TQM in Service Industry More d,Determinants of Service Quality,1.,Reliability,2. Responsiveness,3. Competence,4. Courtesy,5. Communication,6. Credibility,Determinants of Service Qualit,Conclusions of Study,1.,Quality = expectations that are met,2. Quality is determined by process and outcome,3. Two types of service; normal and exceptional,Conclusions of Study1. Quality,Cost of Quality,1978 -,P. Crosby wrote “Quality is Free”,Quality improvements yield higher profit,Prevention and improvement not inspection,Categories,Cost of Failure,Cost of Controlling Quality,Cost of Quality1978 - P. Crosb,Conclusions,TQM is a valuable concept in managing organizations,Must build the right climate for acceptance of TQM,Process takes time,ConclusionsTQM is a valuable c,Quality is Job One,“,No matter what the product or service, you can find it somewhere else cheaper”,- E. Scrooge,Quality is Job One “No matter,
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