Total Quality Management

Ashok RaoLawrence P. CarrIsmael DambolenaRobert J. KoppJohn MartinFarshad RafiiPhyllis Fineman Schlesinger

• 1. Quality as a Strategy 1The Global Battleground 2The PIMS Study 4The History of Quality in the United States 6A New Theory of Quality 9The MIT Commission Findings 12The New Management Approach 14TQM and the Corporate Strategy 16Does TQM Work? 17Overview of the Book 20Key Terms 21Assignments 21Case Study: Provisions, Inc.—The Cooked Meat Division 22Bibliography 232. What is TQM? 25Introduction 25The First Approach: Defining Quality? 26The Transcendent Approach 26The Product-based Aproach 26The User-based Approach 27The Manufacturing-Based Approach 27Value-based Approach 28The Second Approach: TQM Practices 31ISO Standards 31The Malcolm Baldrige National Quality Award 34The International Quality Study 34The Third Approach: The Philophies of Leading Sages 37Deming 37Juran 40Crosby 43Feigenbaum 45Ishikawa 48Tagachi 49Summarizing the Philosophies 51The Fourth Approach: Evolution of Quality Thinking in Japan 52Summary 58Key Terms 39Assignments 59Bibliography 613. The Baldrige Award 63Introduction 64Overview of History, Purpose, and Operations 64Legislation 64Aware Purpose 65Roles and Responsibility 65Applications for the Award 66The Award Criteria 66Positioning the Award Criteria 68The Evaluation System for Applicants 71Values and Concepts 71Criteria Framework 73Scoring Guidelines 74Business Factors 75The Board of Examiners 76Appointment and Training 76Establishing Standards and Consistency 77Code of Conduct 77Applicant Evaluation and Feedback 79Review 79Consensus Review 79Site Review 80Judges’ Recommendations 80The Feedback Report 80The Award Criteria in Practice 81Developing the Core Values 81Customer-Driven Quality 83Leadership 84Continuous Improvement and Learning 84Employee Participation and Development 84Fast Response 85Design Quality and Prevention 85Long-Range View of the Future 86Management by Fact 86Partnership Development 87Corporate Responsibility and Citizenship 87Results Orientation 88Impact of the Baldridge Award 88U.S, Industry and Government 88The Characteristics of Successful Applicants 90The Stale Awards 90Overseas Leadership 92The Baldrige Aware and ISO 9000 Standards 93Use in Education 94Future of the Award and Continuous Improvement 94Summary 95Key Terms 96Assignments 96Case Study 101Case Study: Colony Fasteners, Inc. 113Bibliography 1174. Measures of Quality Product and Quality Process: The Traditional Approach 119Introduction 119The Evolution of the Cost of Quality 122The Traditional Cost-of-Quality Model 122Conformance Costs 123Nonconformance 123Limitations to the Cost of Quality 129Summary 133Key Terms 133Assignments 133Case Study: Matthews-Thornton Manufacturing Co. 134Bibliography 1375. Measures of Quality Product and Quality Process: The Emerging Cost-of-Quality Model 139Introduction 139Other Methods to Measure the Cost of Quality 140Sustaining Cost of Quality: The Xerox Story 144Lessons from Xerox 151Accounting Support of TQM 151Other Measures of TQM 152Information Systems Support 155Implementation 155Summary 156Key Terms 157Assignments 157Cost of Quality Assignment 158Case Study: Materials and Control Corporation 160Bibliography 1636. Continuous Improvement: Basic Tools 165Overview of Continuous Improvement 165Relationship of Chapters 6, 7, and 8 to Continual Improvement 167Data Types and Summaries 168Types of Data 168Populations and Samples 169Data Summarization 169Tabular and Graphic Summarization of Numeric Data 170Tabular Summaries for Numeric Data: Frequency Distributions 170Graphic Summaries for Numeric Data: Histograms and Stem-and-Leaf Displays 172Other Graphic Tools 179Graphs for Categorical Data: Bar Charts, Pie Charts, and Pareto Diagrams 179Graphs for Time-Ordered Data: Run Charts 185Flow Diagrams 185Cause-and-Effect Diagrams 188Cautionary Note on Graphs 190Facilitating Data Collection: Check Sheets 190Numeric Data Summarization 192Measures of Location: The Mean and the Median 192Measures of Spread: The Standard Deviation, Variance, Range, and Percentiles 194A Graphic Display of Numeric Summaries: The Box Plot 196Graphing the Relationship Between Two Variables: The Scatter Diagram 196The Seven-Step Method for Continuous Improvement 199The Seven Steps 200Relation to the PDCA Cycle 201Summary 203Key Terms 203Assignments 204Case Study: Accelerating Improvement 207Case Study: Motorola-Codex 221Bibliography 2307. Continuous Improvement: Statistical Process Control 231Introduction 231The Seven Basic Tools 232Control Charts 232Sources of Variation 232Introduction to Control Charts 232Attributes and Variables 235Control Charts for Attributes 236p Charts and np Charts 236c Charts and u Charts 238Control Charts for Variables 241X-bar Charts and R Charts 243Control Charts for Individuals 243Out-of-Control Patterns 244The Development of Control Charts 248The Development of p Charts 248np Charts 252c Charts 252u Charts 252X-bar Charts 253R Charts 253Control Chart for Individual Measurement 254Moving Range Control Chart 254Statistics, Probability, and Random Variables 254Inferential Statistics 254Random Sampling 256Enumerative and Analytical Studies 256Probability 257Random Variables and Probability Distributions 258The Expectation of a Random Variable 259The Variance and Standard Deviation of a Random Variable 262Discrete Versus Continuous Random Variables 262The Normal Distribution 264The Standard Normal Distribution and Normal Probability Tables 265Finding Probabilities for Normal Distribution: The General Case 270Problems Where Areas Are Given 273The Behavior of Samples 275The Behavior of Sample Means: The Central Limit Theorem 276The Behavior of Sample Ranges 281The Behavior of Sample Proportions 281Statistical Basis for the Development of Control Charts 286p Charts 286np Charts 288c Charts and u Charts 289X-bar Charts 289R Charts 293Control Chart for Individual Measurements 294Moving Range Control Chart 295References 295Summary 295Key Terms 296Assignments 296Case Study: Understanding the Trade Deficits 305Bibliography 3078. Continuous Improvement: Some Advanced Tools 309Introduction 309Enhancing the Seven-Step Method 310Developing an Affinity Diagram 311Electronic Brainstorming 318Process Capability and Six-Sigma Quality 319The Cp Index 320The Cpk Index 321Six Sigma Quality 323Taguchi’s Loss Function 325The Goal Post View of Quality 325The Loss Function 326Design of Experiments 331Case Discussion: Product Improvement by Application of Taguchi Methods 333The Factor Listing 334The Orthogonal Array and Experimental Results 334An Analogy 335Randomization and Fractional Factorial Experiments 336The Signal-to-Noise Ratio 336Analysis of Results 337Conclusions 338Summary 339Key Terms 340Assignments 340Case Study: Product Improvement by Application of Taguchi Methods 341Appendix 8.1: Steps for Building an Affinity Diagram 353Appendix 8.2: How Signal-to-Noise Ratios Work 356Bibliography 3589. Customer Measurement I: Traditional Multi-Attribute Methods 359Introduction 360Multi-Attribute Model 361Identifying Important Attributes 362Plot Existing Objects in Attribute Space: Employ Data ReductionTechniques to Improve Data Interpretation 363Measure Consumer Perceptions Via Rating Scales 366Determine the importance Weights of Attributes 368Base New Product Design on Filling Gaps in the Perceptual Space 368Market Segmentation 369Case Studies 369Johnson Wax Enhance Conditioner 369Suzuki Samurai 371Telecom Inc. 371Conjoint Analysis 374Implications and Discussion 380Summary 381Key Terms 382Assignment 382Case Study:ABC Snacks 384Bibliography 38910. Customer Measurement II: Quality Function Deployment 391Introduction 392QFD and the House of Quality 393An Overview of QFD 394Building the House of Quality; An Example 397Customer Inputs/Voice of Customer 397Technical Inputs 397Key Output: EC Weights and Target Values 398Implications 398Research Methodology Issues 398Developing a List of CAs 399Grouping and Labeling CAs 399Measuring Attribute Importance 399Qualitative Research Emphasis 400The Kano Questionnaire 400Implementing QFD—The Manager’s View 402Organizational Behavior Implications 403Case Studies 404Puritan-Bennett Spirometers 404Bharat Earth Movers Ltd. 405Closing Thoughts 405Summary 409Key Terms 410Assignments 410Voice of the Customer Assignment 411Constructing the House of Quality Assignment 413Case Study; Quality Function Deployment at Knight Inc. 415Bibliography 42211 Initiating TQM: Managing Change 425Introduction 425Theories of Organizational Change 425Types of Change 427Understanding The Model for Change; Creating Dissatisfaction with the Status Quo 428Understanding the Model for Change: The New Model of Managing 430Understanding the Change Model: Implementation 432Understanding the Change Model: Cost of the Change 434Theory to Practice: Implementing TQM 435TQM and Organizational Structure 445Implementing TQM Programs 447Implementing TQM 449Summary 452Key Terms 452Assignments 452Case Study: Ilank Snow and East Coast Electric: Instituting TQM 454Bibliography 45912. Employee Practices in Total Quality Management Organizations 461Introduction 461Employee Involvement and TQM: Similarities and Differences 462Employee Involvement; Technique Adoption 464Employee Involvement: Program Elements 466Employee Involvement and Total Quality Management 466HR Policies and TQM 469A Model for Organizational Design 470Organizational Structures 470Management Processes 473Selection Techniques 473Development and Training 474Rewards and Incentives 474Performance Management 474Pay Systems and Rewards 475Summary: HR Systems 476People Policies and TQM; Teams and Teamwork 476Teams in TQM 477Building Teams 478Leadership .Roles in Teams 482Self-Managing Work Teams 483Unions and Total Quality Management 484Empowering Organizational Members 486Summary 488KeyTerms 488Assignments 489Developing Performance and Task Deployment Assignment 489Case Study: Upper Valley Health Clinic 494Bibliography 49913 TQM and the Product Development Process 501Introduction 501Structuring the Development Process 502Structuring the Work 502Aggregate Project Plan 505Organizing the Resources 505Defining the Product 507The “Fuzzy Front End” 508Consequences of Poor Definition and Management 508Product. Definition 508Identifying Customer Requirements 509Setting Target Specifications 509Creating Concepts 510Selecting and Refining a Concept 511Designing and Developing the Product 511Architecture and Modularity 512Advantages of Modularity 512Conscious Architecture 512Design for Manufacturability 513Design for Assembly 513Design to Cost 515Design for Usability 515Prototype-Test-and-Refine 516Concurrent Engineering 517Design Iterations 518Design Structure Matrix 518Implementing Concurrent Engineering 519Summary 519Key Terms 520Assignments 520Case Study: Plus Development Corp (A)—Abridged 522Bibliography 52914. Reengineering and TQM: The Role of Information Technology 531IT and Process Improvement 532Differences Between TQM and Reengineering 532The Impact of IT on the Bottom Line 533Making an Impact with IT 534A Reengineering .Methodology 535Stage 1–Business Goals and Constraints 535Stage 2–Selecting a Process for Improvement 538Stage 3–Creating the New IT-Based Process 540Stage 4–Developing the Systems are the Organization Structures 541Stage 5–Effecting the Culture Change and implementing tire System 544Post-Reengineering 546Quality Information Systems 547Communication of QI Team Activities 547Process-Related Information for QI Teams 548Operational Information to Support Corporate Goals 550Summary 556Key Terms 557Assignments 557Case Study: Morewood Enterprises 558Bibliography 55915. Benchmarking 561Introduction 561Traditional Approaches to Gathering Information 563The Evolution of Benchmarking 564Competitive Benchmarking 566Benchmarking Product Characteristics 566Benchmarking Product. Costs 567Examples of Cost Benchmarking 568Process Benchmarking 570An Example of Process Benchmarking 572Process Flow Mapping 573Strategic Benchmarking 577An Example—Benchmarking Diversity 578Key Issues in Benchmarking 581What Should Be Benchmarked? 581Who Should Be on the Team? 581Who Should Be Selected as Benchmarking Partners? 582What Legal Issues Are Involved? 583What Arc Some Common Pitfalls? 584The Partner’s Perspective 584Handling Benchmarking Requests 585Benefits of Being a Host 586Criteria for Screening Requests 586Maximizing the Benefit from an Information Exchange 587Summary 588Key Terms 588Assignments 589Case Study. Simon Alphin: The Benchmarking Study 591Case Study: Shawmut Industrials—Marta’s Visit 592Bibliography 59316. Landmarks on the TQM Road 595Others That Failed 596Some Who Are Succeeding 597The Wallace Company 599Florida Power & Light 601The Xerox Story 602Building Union Support for TQM 604Building Management Support for TQM 606Xerox after Winning the Baldrige 609Landmarks on the TQM Road. 611The First Landmark:. Awareness 611The Second Landmark: Understanding 613Thu Third Landmark; Maturity 615Summary 618Assignments 618Bibliography 619Author Index 620Subject Index 622