CHAPTER 20 Total Quality management to accompany Introduction to business statistics fourth edition by ronald M. Weiers Presentation by Priscilla Chaffe-Stengel Donald N. stengel o 2002 The Wadsworth Group
CHAPTER 20: Total Quality Management to accompany Introduction to Business Statistics fourth edition, by Ronald M. Weiers Presentation by Priscilla Chaffe-Stengel Donald N. Stengel © 2002 The Wadsworth Group
l Chapter 20- Learning objectives Understand the philosophy of total quality management(TQM) Be able to distinguish between defect prevention and defect detection strategies for the management of quality Be able to distinguish random variation from assignable variation Understand the fundamentals of statistical process control charts Be able to prepare and interpret the major types of control charts o 2002 The Wadsworth Group
Chapter 20 - Learning Objectives • Understand the philosophy of total quality management ( TQM). • Be able to distinguish between defect prevention and defect detection strategies for the management of quality. • Be able to distinguish random variation from assignable variation. • Understand the fundamentals of statistical process control charts. • Be able to prepare and interpret the major types of control charts. © 2002 The Wadsworth Group
ll Total Quality management A management philosophy that integrates quality into all facets of an organization and focuses on systematic improvement Process orientation rather than results orientation Emphasis on small continuous improvements rather than relying on large-scale innovations o 2002 The Wadsworth Group
Total Quality Management • A management philosophy that integrates quality into all facets of an organization and focuses on systematic improvement • Process orientation rather than results orientation • Emphasis on small continuous improvements rather than relying on large-scale innovations © 2002 The Wadsworth Group
l TQM-Related practices ° The Quality audit Competitive benchmarking Just-In-Time Manufacturing Quality circles Baldrige National Quality award o 2002 The Wadsworth Group
TQM-Related Practices •The Quality Audit • Competitive Benchmarking •Just-In-Time Manufacturing •Quality Circles •Baldrige National Quality Award © 2002 The Wadsworth Group
l Pareto diagram a Pareto diagram is a bar chart illustrating the major types of defects in a product or service The size of each bar indicates the relative frequency of the associated type of defect Types of defects are sorted by decreasing relative frequency. o 2002 The Wadsworth Group
Pareto Diagram • A Pareto diagram is a bar chart illustrating the major types of defects in a product or service. • The size of each bar indicates the relative frequency of the associated type of defect. • Types of defects are sorted by decreasing relative frequency. © 2002 The Wadsworth Group
l Pareto Diagram-An example 40% Problem: Fatal Work injuries 40% 35% 30% 25% 20% 20 16% 15% 10% 10% 10% 4 0% Transport assaults Contact alIs Exposure to Other Accidents with Toxics Equipment o 2002 The Wadsworth Group
Pareto Diagram - An Example 40% Problem: Fatal Work Injuries 20% 16% 10% 10% 4% 0% 5% 10% 15% 20% 25% 30% 35% 40% Transport Accidents Assaults Contact with Equipment Falls Exposure to Toxics Other © 2002 The Wadsworth Group
l Quality and Process Variation The quality of products and services is related to variation in the underlying processes Two sources of process variation Random variation assignable variation o 2002 The Wadsworth Group
Quality and Process Variation • The quality of products and services is related to variation in the underlying processes. • Two sources of process variation: – Random variation – Assignable variation © 2002 The Wadsworth Group
l Random variation is variation due to chance that is inherent in the design of the rocess can be reduced by using a better design, better materials, or better equipment o 2002 The Wadsworth Group
Random Variation •... is variation due to chance that is inherent in the design of the process. •... can be reduced by using a better design, better materials, or better equipment. © 2002 The Wadsworth Group
M Assignable variation Assignable variation is due to a specific identifiable cause which, in turn changes the process, such as worker error Statistical process control is a procedure for monitoring and analyzing process variation so that assignable variation can be identified and reduced o 2002 The Wadsworth Group
Assignable Variation • Assignable variation is due to a specific, identifiable cause which, in turn, changes the process, such as worker error. • Statistical process control is a procedure for monitoring and analyzing process variation so that assignable variation can be identified and reduced. © 2002 The Wadsworth Group
l Control Charts Control charts are graphical tools for statistical process control Output from the process is sampled at regular intervals Measurements from successive samples are plotted on a control chart o 2002 The Wadsworth Group
Control Charts • Control charts are graphical tools for statistical process control. •Output from the process is sampled at regular intervals. •Measurements from successive samples are plotted on a control chart. © 2002 The Wadsworth Group