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1、Total Quality ManagementTotal Quality ManagementnQuality has become a high priority issuenQuality impacts the entire organization suppliers, customers ,design, maintenancenTodays customer is well informed - journals, newsnQuality-based management philosophy - key to successTotal Quality ManagementnT

2、QM was advanced by W. Edwards Deming in late 50s I told the Japanese that they would capture markets within five years the world over, that they would take their place alongside prosperous nations. They have done it.Quality DefinitionsnThe totality of features and characteristics of a product or ser

3、vice that bear on its ability to satisfy stated or implied needs. - ASQnGarvin advanced 5 viewpoints;1. Transcendent2. Product-Based3. User-Based 4. Manufacturing-Based5. Value-BasedCustomer Driven QualitynPerspective on quality - placementnInternal/external customersnProduct PlanningnMarket segment

4、s to be servednLevel of performance/pricenLevel of quality comes from customernDo not care why it is defectiveCustomer Driven QualityCustomerPerceptionsOutput(quality ofmanufacturing)ProductSpecification(design)Identificationof CustomerRequirementsCustomer NeedsWants,Expectations,DelightsDimensions

5、of QualitynPerformance - primary ops characteristics Availability, Reliability, Durability, MaintainabilitynFeatures - secondary characteristicsnWarranty - promise of performancenAesthetics - pleasing characteristicsnPrice - indicates value of productnExample - Stereo AmplifierQuality Standards1. Ba

6、ldrige Award- only US firms can apply2. Deming Prize- open to all companies3. ISO 9000- Quality Standards for EuropeTools of TQMnQuality problems are uncovered by using workers and inspectors who conduct tests on productsnPeople must be trained on the various tools that are availablenW. Edwards Demi

7、ng - PDCA cycle19PDCA Cycle (Deming Wheel)1. Plan a change aimed at improvement.1. Plan2. Execute the change.2. Do3. Study the results; did it work?3. Check4. Institutionalize the change or abandon or do it again.4. ActProcess Flow ChartCustomer drops off carMechanic makes diagnosisDiscuss work with

8、 customerRepair AuthorizedVisible to customerNot visible to customerRepair Not AuthorizedCustomer departs with carParts available?Perform WorkYNOrder PartsPass Inspection?Perform Corrected WorkNCompleted RepairNotify CustomerCollect MoneyY17Cause & Effect DiagramDoes not meet specsManMachineMate

9、rialMethodIncorrect MeasurementBad CleanupBad RepairTemperature ControlJars MislabeledDamaged ProductNot MaintainedNot Clear12Pareto Analysis80% of the problems may be attributed to 20% of thecauses.ColorFrequencyScratchPorosity Chip OtherWine Glasses14HistogramFrequency0.41 - 0.500.51 - 0.600.61 -

10、0.700.71 - 0.800.81 - 0.90Machine 02018Control Charts970980990100010101020012345678910 11 12 13 14 15LCLUCLTQM in Service Industryn More difficult to apply to service firmsnPerceived quality is affected by service and surroundingsnWorkers contribute most to perceived qualityDeterminants of Service Q

11、uality1. Reliability2. Responsiveness3. Competence4. Courtesy5. Communication6. CredibilityConclusions of Study1. Quality = expectations that are met2. Quality is determined by process and outcome3. Two types of service; normal and exceptionalCost of Qualityn1978 - P. Crosby wrote “Quality is Free”nQuality improvements yield higher profitnPrevention and improvement not inspectionnCategories Cost of Failure Cost of Controlling QualityConclusionsnTQM is a valuable concept in managing organizati

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