BMM 3633

Industrial Engineering
 Define the 7 concepts of TQM,
product quality, cost of
quality and quality
Learning conformance.
Describe the 14 points of
Objectives: Deming principles
Define the concept of ISO9000
and ISO14000
 Introduction of TQM
Definition of quality
Define the seven concepts
of TQM
Contents: 14 points of Deming
principles
Understand the concept of
ISO9000
Understand the concept of
ISO14000
 Total Quality Management
7 Concepts of TQM
Continuous Improvement
Six Sigma
Employee Empowerment
Benchmarking
Just-in-Time
Taguchi Concept
Knowledge of TQM Tools 7 Tools of TQM
 Total Quality Management
(cont..)
Continuous Improvement
Represents continual improvement of all processes
Involves all operations including suppliers and customers
that covers People, Equipment, Materials, and Procedures
Walter Shewhart develop a circular model known as
PDCA to stress the continuous nature of the improvement
process.
Japanese use the word Kaizen to describe continuous or
ongoing process improvement
 Total Quality Management
(cont..)
Shewharts PDCA
Model
1.Plan
4. Act Identify the
Implement improvement
the plan and make
a plan

3. Check 2. Do
Is the plan Test the
working? plan
 Total Quality Management
(cont..)
Six Sigma
Originally developed by Motorola
In statistical sense, Six Sigma refers to an
extremely high measure of process capability
(99.9997% accuracy)
A Six Sigma capable process will return no more
than 3.4 defects per million operations (DPMO)
Highly structured approach to process
improvement
Six Sigma improvement model known as DMAIC
 Total Quality Management
(cont..)
Six Sigma is a program designed to reduce defects to
help lower costs, save time, and improve customer
satisfaction.
3 key players in the Six Sigma program
Master Black Belts full time teacher who have extensive
training in statistics, quality tools, and leadership
Black Belts project team leaders
Green Belts spend part of their time on team projects
and the rest on their normal jobs.
 Total Quality Management
(cont..)
Define critical outputs
DMAIC Approach
and identify gaps for improvement
Measure the work and
collect process data
Analyze the data
Improve the process
Control the new process to make
sure new performance is
maintained
 Total Quality Management
(cont..)
Quality Circle / Employee Empowerment
Group of employees who meet regularly to solve
problems
Trained in planning, problem solving, and
statistical methods
Often led by a facilitator
Very effective when done properly
 Total Quality Management
(cont..)
Benchmarking
Selecting best practices to use as a standard for
performance
Benchmarking procedures/steps,
Determine what to
benchmark
Form a benchmark team
Identify benchmarking partners
Collect and analyze benchmarking information
Take action to match or exceed the benchmark
 Total Quality Management
(cont..)
Just-in-Time
JIT systems are designed to produce or deliver
goods just as they are needed
Related to quality in three ways;
JIT cuts the cost of quality scrap, rework, inventory
investment, damage costs are directly related to
inventory on hand
JIT improves quality limits the number of potential
sources of error
Better quality means less inventory and better, easier-
to-employ JIT system
 Total Quality Management
(cont..)
Taguchi Concepts
Experimental design methods (DOE) to improve product
and process design
Identify key component and process variables affecting product
variation
Three concepts
Quality robustness - Ability to produce products uniformly in
adverse manufacturing and environmental conditions
Quality loss function mathematical function that identifies all
costs connected with poor quality (repair, scrap, warranty, etc)
Target-oriented quality a philosophy of continuous
improvement to bring the product exactly on target
 Quality Loss Function
High loss L = D2C
Unacceptable where
Loss (to L = loss to society
producing Poor
organization, D = distance from
customer, Good target value
and society) C = cost of deviation
Best
Low loss Target-oriented quality
yields more product in
the best category
Target-oriented quality
brings product toward
Frequency the target value
Conformance-oriented
quality keeps products
within 3 standard
deviations
Lower Target Upper
Specification
Quality is never an accident; it is
always the result of intelligent
effort. -John Ruskin-
There is one rule for the industrialist and that is:
Make the best quality of goods possible at the
lowest cost possible, paying the highest wages
possible.

-Henry Ford (1863-1947) American industrialist-

Quality is remembered long after the price is forgotten.
Gucci Family Slogan

The bitterness of poor quality remains long after low

pricing is forgotten!
Leon M. Cautillo

The quality, not the longevity, of one's life is what is

important.
Martin Luther King, Jr.
Quality is the first priority!!!

Quality but not quantity!!!

 Quality
Quality is
Judged by customer
Meeting and exceeding customer needs
Delighting the customer
Customer satisfaction
External customers who buy and use a product or
service.
Internal customers who are the next persons in
the process
 Quality (cont..)
Definition of quality:
Fitness for Use
Conformance to Specifications
Producing the Very Best Products
Excellence in Products and Services
Total Customer Satisfaction
Exceeding Customer Expectations
 Quality (cont..)
Different Views of Quality
User-based better performance, more
features
Manufacturing-based conformance to
standards, making it right the first time
Product-based specific and measurable
attributes of the product
 Quality (cont..)
Quality & Strategy
Quality helps firms increase sales and reduce costs
Sales Gains
Improved response
Higher Prices
Improved reputation
Improved Increased
Quality Profits
Reduced Costs
Increased productivity
Lower rework and scrap costs
Lower warranty costs
 Quality (cont..)
Key Dimensions of Product Quality
Performance the basic operating characteristics of a product
Features the extra items added to the basic features
Reliability the probability that a product will operate properly
within an expected time frame
Conformance the degree to which a product meets pre-
established standard
Durability how long the product last; its lifespan before
replacement
Serviceability the ease of getting repair, the speed of repairs,
competence of repair person
Aesthetics how a product looks, feels, sounds, smells or tastes
Safety user protection before/during/after use
 Quality (cont..)
Costs of Quality
Prevention costs - reducing the potential for defects
(planning, design, process, training)
Appraisal costs - evaluating products, parts, and services
(inspection, testing, equipment, operator)
Internal failure - producing defective parts or service
before delivery (scrap, rework, process failure, downtime)
External costs - defects discovered after delivery
(complaints, returns, warranty claims, liability, lost sales)
 Quality Gurus
W. Edwards Deming 14 Points for
implementing quality, PDCA cycle
Joseph M. Juran Top management
commitment, fitness for use
Armand Feigenbaum Total Quality Control
Philip B. Crosby Quality is Free, zero
defects
 Quality Gurus (cont..)
Demings 14 points for Implementing Quality
Improvement
1. Create consistency of purpose
2. Lead to promote change
3. Build quality into the product; stop depending on
inspection
4. Build long term relationships based on performance,
not price
5. Continuously improve product, quality, and service
6. Start training
 Quality Gurus (cont..)
Demings 14 points for Implementing Quality
Improvement
7. Emphasize leadership
8. Drive out fear
9. Break down barriers between departments
10. Stop haranguing workers
11. Support, help, improve
12. Remove barriers to pride in work
13. Institute a vigorous program of education and self-
improvement
14. Put everybody in the company to work on the transformation
 International Quality Standard
International Organization for Standardization (ISO)
non-governmental organization headquartered in Geneva
ISO 9000 published in 1978, reviewed every 5 years is a
procedure/system for certifying suppliers to ensure they
meet international standard for quality mgmt.
ISO 9000 certified involves documenting quality
procedures, on-site assessment, ongoing series of audit of
products or services.
ISO 9001:2000 revised standard which emphasis on
leadership by top management and customer satisfaction
rather than documented procedures
 ISO 14000 Environmental Standard
ISO 14000 an environmental management
standard established by the International
Standards Organization (ISO)
Core elements
Environmental management
Auditing
Performance evaluation
Labeling
Lifecycle assessment
Any Questions???
Thank You