Total Quality Management

Old Quality vs. New Quality

Difference between old quality (Rolls Royce,

personal banker, ...) and new quality is that old was the work of craftsmen and the new is the work of a system (Toyota, Big Mac, Boeing Aircraft, Disney World, ...). The old is expensive, made for the few, using skilled hands, is beautiful and functionally based. The new reduces cost, made for the many by intelligent minds and should drive the economy and make business more competitive. Toyota Commercial

Why care about quality

increase productivity

expand market share

raise customer loyalty enhance competitiveness of the firm at a minimum, serve as a price of entry

Achieving high quality Is Difficult

Only 36% of the firms felt that Total Quality programs

boosted their ability to compete.

Arthur D. Little Survey of 500 Firms

Over 50% of firms rated their efforts D or F relative to

increasing customer satisfaction, increasing market share, or reducing their cost.

Rath and Strong

Main Problem: Achieving high quality is as easy to

understand as losing weight and quitting smoking and is as difficult to do.

Steve Schwartz, IBM MDQ VP

Why Quality is so difficult to do?

Quality can only be defined in terms of an agent (a

judge of quality). One has to translate future needs of the user into measurable characteristics

Service Industries are particularly Difficult

Reasons:
High volume of transaction
Immediate consumption Difficult to measure and control

More labor intensive

High degree of customization required Image is a quality characteristic

Behavior is a quality characteristic

Quality Gurus
Deming: The father of the quality movement.

Scientific approach to quality Juran: Quality by design Crosby: Quality is free

Demings Seven Deadly Diseases

Lack of Constancy of purpose Emphasis on short term profits Evaluation of performance, merit rating or annual

review of performance Mobility of management Running the company on visible figures alone Excessive medical costs Excessive costs of warranty fueled by lawyers that work on contingency fees Interview with Deming

What is TQM??
The essence of Total Quality Management is a common sense dedication to understanding what the customer wants and then using people and science to set up systems to deliver products and services that delight the customer.
Greg Hughes President AT&T Transmission Systems

Basic Concepts of TQM

Customer Focus

Continuous Process Improvement - Kaizen

Employee Empowerment Everyone is responsible for

quality
Quality is free - focus on defect prevention rather than

defect detection for it is always cheaper to do it right the first time

Benchmarking Legally stealing other peoples ideas Customer-Supplier Partnerships Management by fact..by numbers..by data Balanced

Quality in U.S. vs. the Japanese

U.S. conforming to the requirements at

the least cost Japanese joint responsibility to make the end customer happy

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 I met the requirements

OEM

Supplier

OEM
Combative non collaborative relationship
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Creating the Best Vehicle/Systems with All the People All the Suppliers All the Time
YOU meet the requirements!

Lets create the best Vehicle and Systems together.

Partnership - Collaborative relationship

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Strength of USA vs. Japan

Concept
Good Innovative Ideas Good Implementation

Strength of USA Mfg

Strength of Japanese Mfg KAIZEN

Time Good Ideas, Good Implementation are the goals of everyone in the automotive industry
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Seven Basic Quality Tools To improve Process Quality

Scatter Diagrams: Plot data on a chart no attempt

is made to classify the data or massage it Pareto Charts: Organize data on a histogram based on frequency from most prevalent to least. Help identify major causes or occurrences (80:20 rule) Check Sheets: Easy way to count frequency of occurrence by front line workers Histograms: Categorize data is cells and plot (see if any patterns emerge) Run Charts: Plot data as a function of time Cause and effects Charts: fishbone diagrams are used to identify the root causes of a problem Control Charts: are statistical tools used to determine if the variation in results is caused by common or special events

Failures in O-rings

Graph Fit of O-ring failures

Full O-ring data including no failures

T R A N S A C T I O N T I M E

RUN CHART

Time of Day

Data Collected From Check Sheet

Time Range (in secs)
44-50 51-57 58-64 65-71 72-78 79-85 86-92 93-99 100-106 107-113

Frequency
1 4 17 12 14 19 18 11 3 1

A Histogram
20 18 16
61

89 96 103 110

18 11 3 1

47

54

14
68

12
75

10
82

8 6 4
2
89 96 103 110

0 47 54 61 68 75 82 89 96 103 110

Be careful of Cell Size

35 30 25 20 15 10 5 0

47 54 61 68 75 82 89 96 103 50 64 110

78

1 4 17 12 14 19 18 11 3 92 106 1

50 64 78 5092 106
64 78 92 106

Pareto Chart (80-20 Rule)

90 80 70 60 50 40 30 20 10 0

47 54 61 68 75 82 89 96 103 110
1 2 3 4 5 6

1 4 17 12 14 19 18 11 3 1
7

120%

100% 80% 60%

40%
Series2 Series1

20% 0%

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Further info on Pareto Charts

Pareto Diagrams

Purpose: helps organize data to show major factors displays data in the order of importance organize based on fact rather than perception To construct: use data from a check sheet or similar instrument analyze data to determine frequency identify the vital few calculate percentages add percentages to find vital few (80%) draw cumulative curve Typical Application: display relative importance of different factors choose starting point for problem solving monitor success identify basic cause of a problem use a selling tool to gain support

Teller
Fatigue Training

Processes

Sequence of activities
Too many steps

Attitude

Control functions Processing Delays

Too much downtime

Slow response time

Not user friendly

Computers

Fishbone Diagram aka Cause & Effect Diagram

Cause and Effect Diagram Fishbone Diagram

Purpose: visual display of information to identify root causes rather than

symptoms. To construct: determine the issue and write problem statement in a box to the right of diagram find the main causes and write them on branches flowing to the main branch (method, equipment, people, material, environment, customer expectations, money, management, govt. regulations) identify all possible causes and write them on the diagram as subcauses in each category Typical Application: determine the real cause of the problem check the potential effects of a solution
Fishbone Diagrams Explained

5 Whys problem solving technique

Mizenboushi and GD3 Concepts Robust Design

Good Design
Prevent Problems

- keep Good Designs - minimize change

Find Problems

GD3
Good Dissection
DRBTR
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Good Discussion
DRBFM

Address any potential issues up stream at Design Phase

Quality Focus At the Design Stage

Quality from the start

Directs attention to Change

Change = potential to have problems

Directs attention to Interfaces

Most defects occur at the interface

Focus on

Change Points & Interface Points

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No change No Problem

Examples: Design change Packaging environment change Usage environment change New manufacturing process New supplier

Change Points have the highest potential to introduce defects

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DRBFM Example
Tire Pressure Monitoring System Changing the sensor from Aluminum Valve to Rubber Valve.

Purely for cost reduction purposes... System Performance is the same.

Simple change What could go wrong?

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Interfaces

Interfaces (Interfaces where issues can brew and surface later) Customer to Supplier Department to Department System Interfaces

The Crash sensor failure on Honda

Minivans Interface Points have the highest potential to introduce defects

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Design Review By Failure Modes (DRBFM) Basic Concepts

Before and After Description of the Change Point
Describe the Potential failure modes Describe the Design Countermeasures Target Testing of the change points and

Countermeasures Only

Design techniques to uncover defects at the design stage Up stream

Design

DRBFM

Verify/Validate

DRBTR

Design

Changes

Test Result (Change in product due to test: Cracks,Leaks, etc.)

Focus on Implementation
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Where do failures occur

Design Phase (Suppliers are Up Stream)

Production
In the field

Where is it cheapest to detect failures?

Example:

Replacing a four crash sensors by a single one ..

When Failures Occur!

Why did the failure happen?
Symptoms vs. Root Causes Root Causes (Investigate the whole chain): Suppliers/Component failure Design Manufacturing Change management

Why were not able to detect it?

Rootcause Analysis: Why Occurred? Why Not Detected?

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Failure Detection 5Ws-2Hs

Who

Where
When What Why How was the problem found? How can we isolate it? Turn On / Turn Off

Rootcause Analysis Methodology

Failure Isolation KT Analysis: Is - Is Not

Why is this design and not the other similar design

Why this plant and not another plant

Why this operator and not the other operator Why in winter and not in the summer Why this computer and not the other computer Why in this model and not in other models

Rootcause Analysis Methodology

Finding the root causes of a problem is not Fault Finding/Criticism.

To find problems is not fault finding/criticism. To find problems is a creative act, same as innovation. We should never stop at only finding problems, but also

develop a systemic corrective action plan... FIX THE PROCESS that created the problem & identify detection algorithms
We never forget that every job should relate directly to

improving a product. Other jobs are nothing but waste, e.g., only to check, to inspect, etc.
Everyone should readily accept help from review
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participants.

Summary - Concepts
Quality all the time by everyone from an end user

prospective
Address issues up stream. Address product and

process defects at the design stage

Fixing problems usually involves fixing the systemic

process issues that caused the problem Reoccurrence Prevention

Focus on Implementation Focus on Change Points and Interfaces