Total Quality Managrment

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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
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determined by design
diamond example: marquise shape diamond vs. round diamond

2) Performance measures (“range of values”)
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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?
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Customer’s View (more subjective view):
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quality of the design (look, feel, and function).
consider both feature and performance measures to assess value n

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Value = Quality / Price (value determined by individual customers)

Producer’s View (more objective view):
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conformance to requirements (term coined by Philip Crosby).

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costs of quality (prevention, appraisal, scrap & warranty costs).

n

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n
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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)
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Customer-craft quality paradigm:
n
n

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design and build each product for a particular customer.
producer knows the customer directly.

Mass production and inspection quality paradigm:
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focus on designing and building products for mass consumption. n
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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:
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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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