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Eng. 401: Total Quality Management
Course Notes: TQM Philosophy - An Overview
Hammett
U. of Michigan
The Philosophy of TQM
An Overview
TQM = Customer-Driven Quality Management
References for Lecture:
Background Reference Material on Web: The Philosophy of TQM by Pat Hammett
Customer Quality Measures
Customers typically relate quality to:
1) Feature-based measures (“have or have not”)
n
n
determined by design
diamond example: marquise shape diamond vs. round diamond
2) Performance measures (“range of values”)
n
n
conformance to design or ideal value
diamond example: 4Cs -- carat, clarity, color, cut
In this class, we will focus more on analyzing
performance measures.
1
Eng. 401: Total Quality Management
Course Notes: TQM Philosophy - An Overview
Hammett
U. of Michigan
What are the Different Views
of Quality?
n
Customer’s View (more subjective view):
n
n
quality of the design (look, feel, and function).
consider both feature and performance measures to assess value n
n
Value = Quality / Price (value determined by individual customers)
Producer’s View (more objective view):
n
conformance to requirements (term coined by Philip Crosby).
n
costs of quality (prevention, appraisal, scrap & warranty costs).
n
n
n
n
n
n
e.g., # of defects per million products is a measure of conformance. prevention costs: training, writing quality procedures
appraisal costs: inspecting and measuring product characteristics scrap and rework costs: internal costs of defective products warranty costs: external costs for product failures in the field
increasing quality conformance reduces product costs and raises profits.
History of Quality Paradigms
(producer / customer relationship)
n
Customer-craft quality paradigm:
n
n
n
design and build each product for a particular customer.
producer knows the customer directly.
Mass production and inspection quality paradigm:
n
focus on designing and building products for mass consumption. n
n
n
n
push products on the customer (limit customer choices).
quality is maintained by inspecting and detecting bad products.
major innovation to this paradigm: statistical process control
TQM or “Customer-Driven Quality” paradigm:
n
n
potential customers determine what to design and build.
higher quality obtained by focusing on preventing problems
and continuously reducing variability in all organizational
processes.
2
Eng. 401: Total Quality Management
Course Notes: TQM Philosophy - An Overview
Hammett
U. of Michigan
The Quality Hierarchy (Evolution)
4. Total Quality
Management
Prevention
stop problems
at source;
greater
design emphasis
(PROACTIVE)
Detection
Finding &
Fixing Mistakes
(REACTIVE)
3. Quality
Assurance (QA)
2. Quality Control
(QC)
1. Inspection
incorporates QC/QA activities into
a company-wide system aimed at
satisfying the customer.
(involves all organizational functions)
planned and systematic actions to
insure that products or services
conform to company requirements
(example: reliability analysis).
operational techniques to make
inspection more efficient & to reduce
the costs of quality. (example: SPC)
inspect products.
TQM Defined
TQM is a management philosophy which seeks to
integrate all organizational functions (marketing,
finance, design, engineering, production, customer
service …) to focus on meeting customer needs
and organizational objectives.
It views organizations as a collection of processes.
It maintains that organizations must strive to
continuously improve these processes by
incorporating the knowledge and experiences of
workers.
3
Eng. 401: Total Quality Management
Course Notes: TQM Philosophy - An Overview
Hammett
U. of Michigan
The Simple Objective of TQM
“Do the right things, right
the first time, every time.”
Some Basic Tenets of TQM
1.
The customer...
Course Notes: TQM Philosophy - An Overview
Hammett
U. of Michigan
The Philosophy of TQM
An Overview
TQM = Customer-Driven Quality Management
References for Lecture:
Background Reference Material on Web: The Philosophy of TQM by Pat Hammett
Customer Quality Measures
Customers typically relate quality to:
1) Feature-based measures (“have or have not”)
n
n
determined by design
diamond example: marquise shape diamond vs. round diamond
2) Performance measures (“range of values”)
n
n
conformance to design or ideal value
diamond example: 4Cs -- carat, clarity, color, cut
In this class, we will focus more on analyzing
performance measures.
1
Eng. 401: Total Quality Management
Course Notes: TQM Philosophy - An Overview
Hammett
U. of Michigan
What are the Different Views
of Quality?
n
Customer’s View (more subjective view):
n
n
quality of the design (look, feel, and function).
consider both feature and performance measures to assess value n
n
Value = Quality / Price (value determined by individual customers)
Producer’s View (more objective view):
n
conformance to requirements (term coined by Philip Crosby).
n
costs of quality (prevention, appraisal, scrap & warranty costs).
n
n
n
n
n
n
e.g., # of defects per million products is a measure of conformance. prevention costs: training, writing quality procedures
appraisal costs: inspecting and measuring product characteristics scrap and rework costs: internal costs of defective products warranty costs: external costs for product failures in the field
increasing quality conformance reduces product costs and raises profits.
History of Quality Paradigms
(producer / customer relationship)
n
Customer-craft quality paradigm:
n
n
n
design and build each product for a particular customer.
producer knows the customer directly.
Mass production and inspection quality paradigm:
n
focus on designing and building products for mass consumption. n
n
n
n
push products on the customer (limit customer choices).
quality is maintained by inspecting and detecting bad products.
major innovation to this paradigm: statistical process control
TQM or “Customer-Driven Quality” paradigm:
n
n
potential customers determine what to design and build.
higher quality obtained by focusing on preventing problems
and continuously reducing variability in all organizational
processes.
2
Eng. 401: Total Quality Management
Course Notes: TQM Philosophy - An Overview
Hammett
U. of Michigan
The Quality Hierarchy (Evolution)
4. Total Quality
Management
Prevention
stop problems
at source;
greater
design emphasis
(PROACTIVE)
Detection
Finding &
Fixing Mistakes
(REACTIVE)
3. Quality
Assurance (QA)
2. Quality Control
(QC)
1. Inspection
incorporates QC/QA activities into
a company-wide system aimed at
satisfying the customer.
(involves all organizational functions)
planned and systematic actions to
insure that products or services
conform to company requirements
(example: reliability analysis).
operational techniques to make
inspection more efficient & to reduce
the costs of quality. (example: SPC)
inspect products.
TQM Defined
TQM is a management philosophy which seeks to
integrate all organizational functions (marketing,
finance, design, engineering, production, customer
service …) to focus on meeting customer needs
and organizational objectives.
It views organizations as a collection of processes.
It maintains that organizations must strive to
continuously improve these processes by
incorporating the knowledge and experiences of
workers.
3
Eng. 401: Total Quality Management
Course Notes: TQM Philosophy - An Overview
Hammett
U. of Michigan
The Simple Objective of TQM
“Do the right things, right
the first time, every time.”
Some Basic Tenets of TQM
1.
The customer...
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