MANAGEMENT
Presented by:
Enrico C. Mina
MATSUSHITA
Change of thought makes your behavior
change.
Change of behavior makes your habits change.
Change of habits makes your personality
change.
Change of personality makes your destiny
change.
TQM Briefing by Enrico C. Mina
EXPECTATION LEVELS
Implicit
Customer
Delight
Cost
Delivery
TQM Briefing by Enrico C. Mina
10
11
12
Chain of Customer-Supplier
Relationships
External
Suppliers
The
Company
2
3
End-users or
consumers
Intermediaries
or distributors
13
14
Process
DEFINITION: a series of activities that transform
inputs into desirable outputs
ELEMENTS:
Man (people)
Machines
Materials
Methods
Measurement
Environment
TQM Briefing by Enrico C. Mina
15
16
17
18
19
hidden
costs
TQM Briefing by Enrico C. Mina
20
Savings
Total costs
with improved
process quality
Time
TQM Briefing by Enrico C. Mina
21
22
99.9% Reliability
If the human heart were 99.9% reliable, it
would miss 36,817 beats a year (@ 70 /
minute), equivalent to 8.8 hours without a
heartbeat.
23
6-sigma Reliability
99.99966% reliability or 3.4 failures per
million
Equivalent to missing only one free throw
out of 300,000 attempts.
24
Overall Process/System
Reliability
0.95
Number of steps or
elements
20
1
0
0.36
0.60
0.77
0.98
0.67
0.82
0.90
0.99
0.82
0.90
0.95
0.999
0.98
0.99
0.99
5
25
26
27
28
29
30
31
32
33
34
Effect of Mudas
35
36
37
38
39
Decision
TQM Briefing by Enrico C. Mina
40
Customer
Dept. X
Dept. Y
Dept. Z
START
Total Cycle
Time:
Min.: ___hrs
Max.: ___hrs
N
A
Y
B
Y
Ave.: ___hrs
Y
Total Distance
Traveled:
Min.: ___m
Max.: ___m
Ave.: ___m
Y
END
D C. Mina
TQM Briefing by Enrico
41
42
43
44
Muda Elimination
The process should be revised to eliminate
identified muda. Every such muda eliminated and
prevented from recurring reduces costs and cycle
time and improves process quality.
The opportunities for improvement through the
continuous elimination of muda are infinite.
45
46
47
48
49
50
Continuous Improvement
(Kaizen)
KAIZEN is a system of small-step
improvements taking place continuously at
all levels and functions of the organization.
It promotes improvements through projects
that do not cost much money.
51
Innovation
Kaizen
Maintenance
52
53
54
55
Superordinate Principles
Kaizen has to be absorbed into the
organizations culture.
Process and Results
Total Systems Focus
Non-blaming/Non-judgmental Behavior
56
57
58
Non-blaming/Non-judgmental
Behavior
A blaming culture causes people to hide
problems.
Problems are really opportunities for
improvement in disguise.
Focus on the problem and make people
problem-solvers.
The first time you get angry is the last time
you get the truth. (Ishikawa)
TQM Briefing by Enrico C. Mina
59
SDCA to PDCA
The next process is the customer.
Quality first
Market in
Upstream management
Speak with data
Variability control and recurrence prevention
TQM Briefing by Enrico C. Mina
60
SDCA to PDCA
Standardization and Improvement
A
61
inputs
Three Rules:
Do not
accept
defects.
Your
Process
outputs Your
Customer
Do not
make
defects.
TQM Briefing by Enrico C. Mina
Do not
pass on
defects.
62
Quality First
The quality of the process must receive first
priority, ahead of Cost or Delivery.
A high quality process produces high
quality products at least cost and with the
shortest cycle time (enabling on-time
delivery).
63
Market-in
A philosophy that seeks to find out factually
what customers want, and then designs the
product or service, and the processes that
create and deliver them, to suit customer
requirements.
Product-out: We know better than the
customers; we tell them what to do. We do
what is convenient for us, not for them.
TQM Briefing by Enrico C. Mina
64
Upstream Management
Manufacturing
Product
Concept
Full-scale
Production
Design &
Develpmt.
Distribution
Process
Engg.
Sales
Prototype
After-sales
Service
65
Upstream Management
Service
Service
Concept
Service
Strateg
y
Trial
Run
Full-scale
Operation
s
Service
Systems
Service
Staff
Follow-up
Service
66
67
68
Exercise in Self-Diagnosis
Principle or Concept: ____________
Inconsistent Consequent
Future
Ideas for
Practices
Problems Implications Improvement
1.
2.
3.
69
70
71
72
CEO
Sr/Mid
Mgrs
Suprvsr
s
R&F
Mean
s
Mean
s
Mean
s
Result
s
Result
s
Result
s
Result
s
73
74
75
CUSTOME
R
Service
System
Service
Staf
76
77
78
79
80
Benchmarking (1)
Benchmarking is the search for and
adoption of ideas for improvement and best
practices from other organizations.
It provides an identification of opportunities
for improvement even if current processes
are good enough.
It avoids reinventing the wheel.
TQM Briefing by Enrico C. Mina
81
Benchmarking (2)
Three levels of benchmarking:
Internal the best practices of a particular
branch, plant, or facility of the same
organization become models for the others to
follow (e.g., best practices of a particular plant
are communicated to the others to have them
adopt these also)
82
Benchmarking (3)
Competitive the best practices of another
organization engaged in the same business are
identified, analyzed, and copied (e.g., the best
practices of other manufacturers of similar
products around the world can be identified and
adopted).
Do reverse engineering.
Ask common customers what the competitors
practices are.
TQM Briefing by Enrico C. Mina
83
Benchmarking (4)
Functional the practices of another
organization, not necessarily from the same
business, that have been identified as best in
class are analyzed and copied or adapted into
ones own organizational processes.
84
85
86
SUCCESSFUL TQM
IMPLEMENTATION (1)
ELEVEN PRE-CONDITIONS:
Management involvement and leadership
Organization for Quality
Communication
Participative management
Training and education
Measurements and standards
TQM Briefing by Enrico C. Mina
87
SUCCESSFUL TQM
IMPLEMENTATION (2)
88
START-UP DILEMMA
O
U
T
P
U
T
quit
point?
results
curve
cost/efort
curve
TIME
TQM Briefing by Enrico C. Mina
89
End
90