Total Quality Management: A Cross Functional Perspective / Edition 1

Total Quality Management: A Cross Functional Perspective / Edition 1

ISBN-10:
0471108049
ISBN-13:
9780471108047
Pub. Date:
04/19/1996
Publisher:
Wiley
ISBN-10:
0471108049
ISBN-13:
9780471108047
Pub. Date:
04/19/1996
Publisher:
Wiley
Total Quality Management: A Cross Functional Perspective / Edition 1

Total Quality Management: A Cross Functional Perspective / Edition 1

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Overview

The emphasis of Quality is pervading every facet of business, and managers are required to know and apply TQM principles. This book explores the strategic role of quality global competition, the roles of management in attaining quality excellence, the structures and systems needed to support a total quality strategy, and the main statistical and analytical tools for achieving quality improvement and control.

Product Details

ISBN-13: 9780471108047
Publisher: Wiley
Publication date: 04/19/1996
Pages: 656
Product dimensions: 7.72(w) x 9.41(h) x 1.17(d)

About the Author

Ashok Rao
Lawrence P. Carr
Ismael Dambolena
Robert J. Kopp
John Martin
Farshad Rafii
Phyllis Fineman Schlesinger

Table of Contents

1. Quality as a Strategy 1

The Global Battleground 2

The PIMS Study 4

The History of Quality in the United States 6

A New Theory of Quality 9

The MIT Commission Findings 12

The New Management Approach 14

TQM and the Corporate Strategy 16

Does TQM Work? 17

Overview of the Book 20

Key Terms 21

Assignments 21

Case Study: Provisions, Inc.—The Cooked Meat Division 22

Bibliography 23

2. What is TQM? 25

Introduction 25

The First Approach: Defining Quality? 26

The Transcendent Approach 26

The Product-based Aproach 26

The User-based Approach 27

The Manufacturing-Based Approach 27

Value-based Approach 28

The Second Approach: TQM Practices 31

ISO Standards 31

The Malcolm Baldrige National Quality Award 34

The International Quality Study 34

The Third Approach: The Philophies of Leading Sages 37

Deming 37

Juran 40

Crosby 43

Feigenbaum 45

Ishikawa 48

Tagachi 49

Summarizing the Philosophies 51

The Fourth Approach: Evolution of Quality Thinking in Japan 52

Summary 58

Key Terms 39

Assignments 59

Bibliography 61

3. The Baldrige Award 63

Introduction 64

Overview of History, Purpose, and Operations 64

Legislation 64

Aware Purpose 65

Roles and Responsibility 65

Applications for the Award 66

The Award Criteria 66

Positioning the Award Criteria 68

The Evaluation System for Applicants 71

Values and Concepts 71

Criteria Framework 73

Scoring Guidelines 74

Business Factors 75

The Board of Examiners 76

Appointment and Training 76

Establishing Standards and Consistency 77

Code of Conduct 77

Applicant Evaluation and Feedback 79

Review 79

Consensus Review 79

Site Review 80

Judges’ Recommendations 80

The Feedback Report 80

The Award Criteria in Practice 81

Developing the Core Values 81

Customer-Driven Quality 83

Leadership 84

Continuous Improvement and Learning 84

Employee Participation and Development 84

Fast Response 85

Design Quality and Prevention 85

Long-Range View of the Future 86

Management by Fact 86

Partnership Development 87

Corporate Responsibility and Citizenship 87

Results Orientation 88

Impact of the Baldridge Award 88

U.S, Industry and Government 88

The Characteristics of Successful Applicants 90

The Stale Awards 90

Overseas Leadership 92

The Baldrige Aware and ISO 9000 Standards 93

Use in Education 94

Future of the Award and Continuous Improvement 94

Summary 95

Key Terms 96

Assignments 96

Case Study 101

Case Study: Colony Fasteners, Inc. 113

Bibliography 117

4. Measures of Quality Product and Quality Process: The Traditional Approach 119

Introduction 119

The Evolution of the Cost of Quality 122

The Traditional Cost-of-Quality Model 122

Conformance Costs 123

Nonconformance 123

Limitations to the Cost of Quality 129

Summary 133

Key Terms 133

Assignments 133

Case Study: Matthews-Thornton Manufacturing Co. 134

Bibliography 137

5. Measures of Quality Product and Quality Process: The Emerging Cost-of-Quality Model 139

Introduction 139

Other Methods to Measure the Cost of Quality 140

Sustaining Cost of Quality: The Xerox Story 144

Lessons from Xerox 151

Accounting Support of TQM 151

Other Measures of TQM 152

Information Systems Support 155

Implementation 155

Summary 156

Key Terms 157

Assignments 157

Cost of Quality Assignment 158

Case Study: Materials and Control Corporation 160

Bibliography 163

6. Continuous Improvement: Basic Tools 165

Overview of Continuous Improvement 165

Relationship of Chapters 6, 7, and 8 to Continual Improvement 167

Data Types and Summaries 168

Types of Data 168

Populations and Samples 169

Data Summarization 169

Tabular and Graphic Summarization of Numeric Data 170

Tabular Summaries for Numeric Data: Frequency Distributions 170

Graphic Summaries for Numeric Data: Histograms and Stem-and-Leaf Displays 172

Other Graphic Tools 179

Graphs for Categorical Data: Bar Charts, Pie Charts, and Pareto Diagrams 179

Graphs for Time-Ordered Data: Run Charts 185

Flow Diagrams 185

Cause-and-Effect Diagrams 188

Cautionary Note on Graphs 190

Facilitating Data Collection: Check Sheets 190

Numeric Data Summarization 192

Measures of Location: The Mean and the Median 192

Measures of Spread: The Standard Deviation, Variance, Range, and Percentiles 194

A Graphic Display of Numeric Summaries: The Box Plot 196

Graphing the Relationship Between Two Variables: The Scatter Diagram 196

The Seven-Step Method for Continuous Improvement 199

The Seven Steps 200

Relation to the PDCA Cycle 201

Summary 203

Key Terms 203

Assignments 204

Case Study: Accelerating Improvement 207

Case Study: Motorola-Codex 221

Bibliography 230

7. Continuous Improvement: Statistical Process Control 231

Introduction 231

The Seven Basic Tools 232

Control Charts 232

Sources of Variation 232

Introduction to Control Charts 232

Attributes and Variables 235

Control Charts for Attributes 236

p Charts and np Charts 236

c Charts and u Charts 238

Control Charts for Variables 241

X-bar Charts and R Charts 243

Control Charts for Individuals 243

Out-of-Control Patterns 244

The Development of Control Charts 248

The Development of p Charts 248

np Charts 252

c Charts 252

u Charts 252

X-bar Charts 253

R Charts 253

Control Chart for Individual Measurement 254

Moving Range Control Chart 254

Statistics, Probability, and Random Variables 254

Inferential Statistics 254

Random Sampling 256

Enumerative and Analytical Studies 256

Probability 257

Random Variables and Probability Distributions 258

The Expectation of a Random Variable 259

The Variance and Standard Deviation of a Random Variable 262

Discrete Versus Continuous Random Variables 262

The Normal Distribution 264

The Standard Normal Distribution and Normal Probability Tables 265

Finding Probabilities for Normal Distribution: The General Case 270

Problems Where Areas Are Given 273

The Behavior of Samples 275

The Behavior of Sample Means: The Central Limit Theorem 276

The Behavior of Sample Ranges 281

The Behavior of Sample Proportions 281

Statistical Basis for the Development of Control Charts 286

p Charts 286

np Charts 288

c Charts and u Charts 289

X-bar Charts 289

R Charts 293

Control Chart for Individual Measurements 294

Moving Range Control Chart 295

References 295

Summary 295

Key Terms 296

Assignments 296

Case Study: Understanding the Trade Deficits 305

Bibliography 307

8. Continuous Improvement: Some Advanced Tools 309

Introduction 309

Enhancing the Seven-Step Method 310

Developing an Affinity Diagram 311

Electronic Brainstorming 318

Process Capability and Six-Sigma Quality 319

The Cp Index 320

The Cpk Index 321

Six Sigma Quality 323

Taguchi’s Loss Function 325

The Goal Post View of Quality 325

The Loss Function 326

Design of Experiments 331

Case Discussion: Product Improvement by Application of Taguchi Methods 333

The Factor Listing 334

The Orthogonal Array and Experimental Results 334

An Analogy 335

Randomization and Fractional Factorial Experiments 336

The Signal-to-Noise Ratio 336

Analysis of Results 337

Conclusions 338

Summary 339

Key Terms 340

Assignments 340

Case Study: Product Improvement by Application of Taguchi Methods 341

Appendix 8.1: Steps for Building an Affinity Diagram 353

Appendix 8.2: How Signal-to-Noise Ratios Work 356

Bibliography 358

9. Customer Measurement I: Traditional Multi-Attribute Methods 359

Introduction 360

Multi-Attribute Model 361

Identifying Important Attributes 362

Plot Existing Objects in Attribute Space: Employ Data Reduction

Techniques to Improve Data Interpretation 363

Measure Consumer Perceptions Via Rating Scales 366

Determine the importance Weights of Attributes 368

Base New Product Design on Filling Gaps in the Perceptual Space 368

Market Segmentation 369

Case Studies 369

Johnson Wax Enhance Conditioner 369

Suzuki Samurai 371

Telecom Inc. 371

Conjoint Analysis 374

Implications and Discussion 380

Summary 381

Key Terms 382

Assignment 382

Case Study:ABC Snacks 384

Bibliography 389

10. Customer Measurement II: Quality Function Deployment 391

Introduction 392

QFD and the House of Quality 393

An Overview of QFD 394

Building the House of Quality; An Example 397

Customer Inputs/Voice of Customer 397

Technical Inputs 397

Key Output: EC Weights and Target Values 398

Implications 398

Research Methodology Issues 398

Developing a List of CAs 399

Grouping and Labeling CAs 399

Measuring Attribute Importance 399

Qualitative Research Emphasis 400

The Kano Questionnaire 400

Implementing QFD—The Manager’s View 402

Organizational Behavior Implications 403

Case Studies 404

Puritan-Bennett Spirometers 404

Bharat Earth Movers Ltd. 405

Closing Thoughts 405

Summary 409

Key Terms 410

Assignments 410

Voice of the Customer Assignment 411

Constructing the House of Quality Assignment 413

Case Study; Quality Function Deployment at Knight Inc. 415

Bibliography 422

11 Initiating TQM: Managing Change 425

Introduction 425

Theories of Organizational Change 425

Types of Change 427

Understanding The Model for Change; Creating Dissatisfaction with the Status Quo 428

Understanding the Model for Change: The New Model of Managing 430

Understanding the Change Model: Implementation 432

Understanding the Change Model: Cost of the Change 434

Theory to Practice: Implementing TQM 435

TQM and Organizational Structure 445

Implementing TQM Programs 447

Implementing TQM 449

Summary 452

Key Terms 452

Assignments 452

Case Study: Ilank Snow and East Coast Electric: Instituting TQM 454

Bibliography 459

12. Employee Practices in Total Quality Management Organizations 461

Introduction 461

Employee Involvement and TQM: Similarities and Differences 462

Employee Involvement; Technique Adoption 464

Employee Involvement: Program Elements 466

Employee Involvement and Total Quality Management 466

HR Policies and TQM 469

A Model for Organizational Design 470

Organizational Structures 470

Management Processes 473

Selection Techniques 473

Development and Training 474

Rewards and Incentives 474

Performance Management 474

Pay Systems and Rewards 475

Summary: HR Systems 476

People Policies and TQM; Teams and Teamwork 476

Teams in TQM 477

Building Teams 478

Leadership .Roles in Teams 482

Self-Managing Work Teams 483

Unions and Total Quality Management 484

Empowering Organizational Members 486

Summary 488

KeyTerms 488

Assignments 489

Developing Performance and Task Deployment Assignment 489

Case Study: Upper Valley Health Clinic 494

Bibliography 499

13 TQM and the Product Development Process 501

Introduction 501

Structuring the Development Process 502

Structuring the Work 502

Aggregate Project Plan 505

Organizing the Resources 505

Defining the Product 507

The “Fuzzy Front End” 508

Consequences of Poor Definition and Management 508

Product. Definition 508

Identifying Customer Requirements 509

Setting Target Specifications 509

Creating Concepts 510

Selecting and Refining a Concept 511

Designing and Developing the Product 511

Architecture and Modularity 512

Advantages of Modularity 512

Conscious Architecture 512

Design for Manufacturability 513

Design for Assembly 513

Design to Cost 515

Design for Usability 515

Prototype-Test-and-Refine 516

Concurrent Engineering 517

Design Iterations 518

Design Structure Matrix 518

Implementing Concurrent Engineering 519

Summary 519

Key Terms 520

Assignments 520

Case Study: Plus Development Corp (A)—Abridged 522

Bibliography 529

14. Reengineering and TQM: The Role of Information Technology 531

IT and Process Improvement 532

Differences Between TQM and Reengineering 532

The Impact of IT on the Bottom Line 533

Making an Impact with IT 534

A Reengineering .Methodology 535

Stage 1–Business Goals and Constraints 535

Stage 2–Selecting a Process for Improvement 538

Stage 3–Creating the New IT-Based Process 540

Stage 4–Developing the Systems are the Organization Structures 541

Stage 5–Effecting the Culture Change and implementing tire System 544

Post-Reengineering 546

Quality Information Systems 547

Communication of QI Team Activities 547

Process-Related Information for QI Teams 548

Operational Information to Support Corporate Goals 550

Summary 556

Key Terms 557

Assignments 557

Case Study: Morewood Enterprises 558

Bibliography 559

15. Benchmarking 561

Introduction 561

Traditional Approaches to Gathering Information 563

The Evolution of Benchmarking 564

Competitive Benchmarking 566

Benchmarking Product Characteristics 566

Benchmarking Product. Costs 567

Examples of Cost Benchmarking 568

Process Benchmarking 570

An Example of Process Benchmarking 572

Process Flow Mapping 573

Strategic Benchmarking 577

An Example—Benchmarking Diversity 578

Key Issues in Benchmarking 581

What Should Be Benchmarked? 581

Who Should Be on the Team? 581

Who Should Be Selected as Benchmarking Partners? 582

What Legal Issues Are Involved? 583

What Arc Some Common Pitfalls? 584

The Partner’s Perspective 584

Handling Benchmarking Requests 585

Benefits of Being a Host 586

Criteria for Screening Requests 586

Maximizing the Benefit from an Information Exchange 587

Summary 588

Key Terms 588

Assignments 589

Case Study. Simon Alphin: The Benchmarking Study 591

Case Study: Shawmut Industrials—Marta’s Visit 592

Bibliography 593

16. Landmarks on the TQM Road 595

Others That Failed 596

Some Who Are Succeeding 597

The Wallace Company 599

Florida Power & Light 601

The Xerox Story 602

Building Union Support for TQM 604

Building Management Support for TQM 606

Xerox after Winning the Baldrige 609

Landmarks on the TQM Road. 611

The First Landmark:. Awareness 611

The Second Landmark: Understanding 613

Thu Third Landmark; Maturity 615

Summary 618

Assignments 618

Bibliography 619

Author Index 620

Subject Index 622

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