Managing Operations: Week 8

Total Quality Management (TQM)

• TQM = unmbrella term describe 'quality management system'. 
• 'Addresses all areas + employees' organisation, which emphasises 'customer satisfaction'.

TQM Evolution

• Initially, focus companies inspection end production line prevent out specification products + service.

Elements of TQM: Part 1

• Leadership: Top management vision, planning + support.
• Employee involvement: All employees assume responsibility inspecting quality work.

Key employee Involvement practices: Part 1

• Understand key factors drive workforce engagement , satisfaction + motivation.
• Design + manage work + jobs promote effective communication, cooperation, skill sharing + empowerment.
• Make appropriate investments development + learning both for workforce + organisation's leaders.
• Create environment ensures + improves workplace health, safety + security.

Key employee Involvement practices: Part 2

• Develop performance management system based compensation, recognition + reward.
• Assess workforce engagament + satisfaction.
• Manage career progression entire workforce + succession planning management.

Elements of TQM Part 2

Product/Process design

• Involves product design quality + monitoring process continuous improvement.
• Goal process design develop efficient process satisfies both internal + external customer requirements.

Elements of TQM Part 3

• Continuous Improvement: Concept recognises quality improvement journey no end + there need continually looking new approaches improving quality.

Customer Focus (Fitness use):

• Design quality: specifc characteristics product determines value in marketplace.
• Conformance quality: degree which product meets design specifications.

Importance of Customers

'Without customers, you don't have a business'.

Focus of Quality Management - Customers

• TQM: Serve achieve customer satisfaction.
• Satisfied customers less likely switch to competitor.
• Costs 5-6 times more attract new customers as keeping existing ones.

Key Customer Focused Practices: Part 1

• Identify most important customer groups + markets.
• Understand both short-term + longer-term customer needs + expectations (voice of customer) + employ systematic processes listening + learning from customers.

Key customer Focused Practices: Part 2

• Create organisational culture + support framework allows customers easily contact organisation.
• Manage customer relationships build loyalty.
• Measure customer satisfaction.
• Compare results relative competitors + industry benchmarks.

Implementing TQM: Critical success factors

• Teamwork
• Top management commitment
• Process management
• Customer focus + satisfaction 
• Supplier partnership

TQM Backbone: Deming Wheel PDCA Cycle

• Plan: Study process, Identify problem, Set goals + Develop plan improvement.
• Do: Implement plan test basis, MEasure improvement.
• Study/Check: Assess plan; is it working, Goals achieved?
• Act: Institutionalise improvement; continue cycle new problems Stage 1.

Plan 

• Define process
• Describe process
• Describe players
• Define customer expectations
• Determine historical data available
• Describe perceived problems associated process
• Identify primary causes problems + impacts process performance
• Develop potential changes/solutions process
• Select most promising solution(s)

Do

• Conduct pilot study /experiment test impact potential solution(s).
• Identify measures understand how changes/solutions successful addressing perceived problems.

Study/Check

• Examine results pilot study/experiment.
• Determine whether process performance improved.
• Identify further experimentation may necessary.

Act

• Select best change /solution.
• Develop implementation plan.
• Standardise solution.
• Establish process monitor + control process performance.

Quality Tools

• Flow chart, Fishbone diagram, Check sheet, Histogram, Scatter diagram, Pareto chart + Control chart.

Flow Chart

• Called process mapping + analysis.
• Diagram of steps process.
• Helps focus location problem process.
• Identifies sequence activities/flow process.
• Provides picture steps needed accomplish task
• Helps employees understand how fit process + who are suppliers + customers.

Cause-and-Effect Diagram

• AKA : Fishbone diagram
• Shows different categories problem causes

Check Sheets

• Simple documents used collecting data real-time.
• Either gather quantitative/qualitative data.
• When info quantitative, check sheet called Tally Sheet.

Histogram

• Divides range possible values data set classes/groups.

Scatter Diagram

• Used present measurements 2/+ related variables.
• Represent correlation between 2 variables.

Pareto Analysis

• Most quality problems result few causes.

Control Chart

• Chart statistical upper + lower limits.
• Sample statistics remain between these limits assume process in control.

6 Sigma 

• Improve processes reducing variation + defects.
• 6 Sigma measure how much process deviates perfection.

What is DMAIC?

• 5 step methodology provides structured framework improve exisitng process.
• DMAIC framework helps ensure improvement projects clearly defined + clearly implemented.

The DMAIC Cycle

• Define: IDentify problem, define, requirements + set goal.
• Measure: Gather data, refine problem + measure inputs + outputs.
• Analyse: Develop problem hypotheses, identify 'root casues' + validate hypotheses.
• Improve: Develop improvement ideas, test, establish solution + measure results.
• Control: Establish performance standards + deal any problems.