Quản trị kinh doanh - Chapter 12: Total quality management (tqm) and purchasing

1Chapter 12:Total Quality Management (TQM)and PurchasingPurchasing and Supply Chain Management, 3rd edition, Copyright 2013, W. C. Benton Jr., All rights reservedContentBasics of TQMStatistical process control(SPC)Quality awardsOther quality related activities2Total Quality Management (TQM)TQMA continuous improvement processBeyond the traditional quality view The entire organization works as a teamPurchasing is a critical process of total quality managementNeed high-quality raw materials or component parts from suppliers3Traditional vs. TQMOrganizationsTraditional view of qualityLooks only at the quality of the final product or servicesTQM view of qualityLooks at the quality of every aspect of the process that produces the product or service4TQM and Supply Chain Supply chain TQM can lead to a competitive advantage for the supply chain as well as the membersTo be effective, buying organizations must: Select suppliers with a TQM philosophyReplace suppliers that ignore the TQMInvestigate customer requirements Include suppliers in the new product development process5TQM Implementation FailuresFactors associated to failures:Lack of a quality focus throughout the supply chainLack of a sense of urgency for change throughout the buying organizationLack of a strategic plan for changeLack of a customer or supplier focusLack of positive communications throughout the buying organizationLack of the buying organization’s employees’ integration and involvement Lack of long-term view Lack of leadership internally and externally6Quality Requirements for Suppliers Convey quality expectationsSuppliers’ quality assurance systems must be consistent with the in-house quality requirements of the customerSpecify the agreed-upon quality targets in detail PPM target agreementField failure and reliability requirementsWarranty agreementUrgency to solve problems7Manufacturing Process ControlThe traditional approachReactive and expensiveSelect production samples and examine for defectivesEither rework or scrap defectivesTQM approachStatistical Process Control (SPC)Six SigmaTaguchi Method8Statistical Process Control(SPC)Samples of incoming materials are checked if they lie within control/specification limitsThe control charts:Sample mean (X-bar) chartSample mean is plottedSample range (R) chartRange of the sample is plottedOver time, the samples are analyzed to detect trends that may predict the disposition of the process9Statistical Process Control(SPC) (cont.)SpecificationA description of the required output, including specific characteristicse.g., weights and measurementsFlexibility in specificationsThe upper control limit (UCL)The lower control limit (LCL)10SPC and Control LimitsSPC is used to detect when the process is (becoming) out of controlControl LimitsSet to determine the probability of the units within the incoming materials falling within the control limitsExample:With the control limits set as plus and minus two standard deviations away from the mean 95% of units fall between the control limits The process is out of control when less than 95% of units fall between the control limits 11SPC Chart ExamplesX-bar chart exampleR chart example12Upper Control LimitLower Control LimitSix sigmaA way to measure supplier qualityControl the process so that only 1 out of a million fall out of the control limitsSix-sigma suppliers focus on:Defects per million as a standard metricExtensive employee trainingThe reduction of non-value-added activities13Taguchi MethodCharacteristics:Complex and can be difficult to implementShort term: increases overhead without offering benefits that can immediately be quantifiedLong term: gives the firm strong competitive advantage14Quality Awards The Deming AwardThe Malcolm Baldrige National Quality AwardISO 900015Quality Awards (cont.)The Deming AwardNamed for the quality guru Dr. W. Edwards Deming 2 types of awards: The Deming Prize, The Deming Application PrizeThe Deming PrizeGiven to a person or group of people who have advanced the practice and furthered awareness of TQCThe Deming Application PrizeGiven to companies based on successes attributable to implementing TQC16Quality Awards (cont.)ISO 9000Standards originated in manufacturing used to certify a variety of organizations and business concernsISO 9001A set of standards that document the implementation of a quality program In order to be certified, suppliers need to provide documentation to an external examiner that they meet the ISO 9001 requirements17Questions?18