SCM303 Chapter 6 and 8

SCM303 Chapter 6 and 8 - Total Quality Management and Lean...

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Michigan State University, 2011 - 1 - Total Quality Management and Lean Systems
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Michigan State University, 2011 - 2 - Total Quality Management A corporate approach to the implementation and delivery of higher quality products and services in less time to the market Quality the answer, not the problem. Proactive approach Recognizes true costs of poor quality
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Michigan State University, 2011 - 3 - Major Axioms of TQM Commitment to Quality Continuous Improvement Extensive use of Scientific Tools and Techniques Total Involvement in the Quality Undertaking
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Michigan State University, 2011 - 4 - TQM Values and Success Factors TQM values Holistic view of quality Emphasis on customer Extended process view of operations Emphasis on prevention, not inspection Disdain for variability Data (not opinion) based decision making Employee empowerment Top Management support Supplier involvement Continuous improvement
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Michigan State University, 2011 - 5 - Inverted View of Management
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Michigan State University, 2011 - 6 - Pioneers of TQM Frameworks Dr. W. Edwards Deming Dr. Joseph Juran Philip B. Crosby Imai
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Michigan State University, 2011 - 7 - Deming’s 5 Deadly Sins Lack of constancy Concentration on short term profits What is short-term? Over reliance on performance appraisals Incentive based pay Job-hopping Over emphasis on visible figures
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Michigan State University, 2011 - 8 - Guiding Methodologies: PDCA Plan-do-check-act cycle (Deming wheel or cycle): sequence to solve problems and improve over time Plan : identify problem and actions for improvement Do : implement formulated plan Check : monitor results Act : take corrective action and institutionalize changes Act Check Do Plan
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Michigan State University, 2011 - 9 - Juran and Cost of Quality (COQ) –9 Costs associated with inspection to assess quality levels (e.g. staff, tools, training, etc.) Costs from defects found before delivery to the customer (e.g., rework, scrap, etc.) Costs associated with defects found after delivery to customer (e.g., warranty, recall, etc.) Costs associated with preventing defects and limiting failure and appraisal costs (e.g., training, improvement projects, data gathering, analysis) Appraisal Costs Internal Failure Costs External Failure Costs Prevention Costs
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Michigan State University, 2011 - 10 - Philip B. Crosby Absolutes for quality management Conformance to customer requirements Prevention Zero defects Price of nonconformance “Quality is Free”
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SCM303 Chapter 6 and 8 - Total Quality Management and Lean...

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