Chapter 5: Total Quality Management
Answers to Discussion Questions in Textbook
The quality of a university can be defined as:
The quality of an exercise facility can be defined as:
The quality of spaghetti sauce can be defined as:
The quality of toothpaste can be defined as:
TQM focuses on identifying the causes of quality problems and correcting these problems. TQM emphasizes the need to include every employee in the organization in the quality improvement efforts. TQM emphasizes the need to define quality based on the customer’s needs. Its major characteristics are customer focus, continuous improvement, quality at the source, employee empowerment, understanding quality tools, a team approach, benchmarking and managing supplier quality.
Traditional notions of quality focused on inspection of products. Instead of relying on inspection as the primary tool for quality, TQM focuses on identifying the causes of quality problems and correcting these problems. TQM takes a broader view of the organization than traditional views of quality. Organizations that implemented TQM successfully were able to produce a higher quality product at a lower price, thereby increasing market share. Traditional organizations have either failed or will fail in the future if quality is poor.
The selection of the local companies will depend on the location of the university utilizing this textbook. The Ritz-Carlton Hotel Company, a winner of the Malcolm Baldrige National Quality Award, is known for outstanding customer service. Its employees are trained well and are empowered to deal with quality problems on the spot. Florida Power & Light (FPL) was the first American company to win Japan’s Deming Prize, which is a prestigious quality award. FPL has created and used a process for identifying and dealing with quality problems that has been benchmarked by a number of companies. For example, FPL applied this process to the problem of service interruptions to determine the major causes. They made changes based on the analysis, such as moving power poles away from dangerous curves in the road to deal with one important cause (Florida Power Light Quality Improvement (Q1) Story Exercise (A), Harvard Business School Case 9-689-041). Disney is well-respected for its customer focus. Disney has theme parks in the U.S., Japan and Europe. Disney is known for its excellent training program and attention to details.
The four dimensions of quality are the quality of product or service design, quality of conformance to design, ease of use and post-sales service. The quality of product or service design is determined by the features that are included in the final design of the product or service. The quality of conformance to design is the result of how well the product or service meets its specifications. Ease of use is determined by the ease of using the product or service, its reliability and its maintainability. Post-sales service is the level of service provided after the product or service has been purchased.
The four dimensions of quality are all important in determining quality. However, quality of design is most important since it determines the ability to meet customer needs, which is the objective. If the quality of design does not meet customer needs, then it will not matter if the product or service meets it design specifications, is easy to use or is supported by good post-sale service.
Prevention costs are the costs associated with preventing poor quality, such as training, designing a quality product that is easy to manufacture and planning costs. Appraisal costs are the costs of determining the level of quality and finding defects. These costs include inspections, product testing and quality audits. Internal failure costs are the costs associated with finding and dealing with quality problems discovered before the product or service reaches the customer. Some examples of internal failure costs are rework, scrap and machine downtime due to quality problems. External failure costs are the costs of poor quality discovered by the customer. Some examples of external failure costs are product returns, lawsuits and repairs.
If we designed a higher quality product that was easier to manufacture, then both internal and external failure costs would decrease since we would produce less defective product. Appraisal costs would probably decrease since we may be able to reduce inspections and quality audits. Prevention costs would increase since we expended effort to design a better quality product.
If we hired more inspectors without changing other aspects of quality, then we would still produce the same number of defects. However, we would find more, but not necessarily all, of these defects before they reach the customer. Therefore, internal failure costs will increase, while external failure costs will decrease. Appraisal costs would increase since we are now paying for more inspectors. Prevention costs would remain the same since we did not change other aspects of quality.
The Plan-do-study-act cycle is a procedure for continuous improvement. First, a plan is developed after we have documented procedures, collected data and identified problems. Next, the plan is implemented. We then study the results of our implementation. Finally, we act based on the results. It is described as a cycle since it is an ongoing process or series of steps that is repeated.
QFD is a tool for matching customer requirements to technical requirements. This tool incorporates the customer requirements, the relative importance of the customer requirements, the technical requirements (how we can meet customer requirements), the strength and type of relationships between the customer and technical requirements, the relationships or trade-offs between the different technical requirements and the ratings of the ability of competitors and our company to meet customer requirements into one diagram in order to evaluate all this information in an integrated manner.
In the airline industry, low prices and direct, non-stop flights are two important customer requirements. Most airlines have focused on developing a hub-and-spoke system in order to improve efficiencies. A hub-and-spoke system is one in which many flights stop at a hub city, such as Atlanta, before continuing on to the final destinations, or the spokes. This limits the ability of the customers to find a direct, non-stop flight to their destination, thus increasing travel time.
The seven tools of quality control are the cause-an-effect diagram, flowchart, checklist, control chart, scatter diagram, Pareto chart and histogram. The cause-and-effect diagram, or fishbone diagram, shows all possible causes of one quality problem or defect type (effect), where the causes are separated into categories (or bones) on the diagram. It is used as a brainstorming tool to determine which causes to investigate. The flowchart documents the flow of the materials or customer through the steps of the process. The checklist lists the type of defects, along with a tally of the frequency of each type. Control charts show plots of samples of a product or service characteristic taken from the process over time. The control chart helps us determine whether the process is in control, which means that only random variation exists. Scatter diagrams are plots on an x-y axis used to determine the relationship between two variables. Pareto charts show the frequency and cumulative percentages of defect types arranged from most frequent to least frequent defect types. This chart demonstrates which defect types cause the majority of the quality problems or complaints. A histogram shows the frequency of each quality problem.
The Pareto chart and cause-and-effect diagram can be effectively used in combination. First, the Pareto chart is used to identify the problem(s) that cause the highest number of actual defects or complaints. Next, a common problem becomes the effect on the cause-and-effect diagram. This diagram then helps us identify causes to investigate in order to solve the problem.
The Malcolm Baldrige National Quality Award (MBNQA) is an award that was created by U.S. Congress in 1987 to promote quality and improve the trade deficit. The award is important because it provides an effective framework for improving quality. Many companies have used the MBNQA framework to improve quality, without an intention of applying for the award. Some of the companies that have received it are Motorola, AT&T, Xerox, Federal Express and Ritz-Carlton.
The three gurus are Deming, Juran and Crosby. Deming helped management understand that most quality problems are caused by the processes and systems, not the workers. Deming motivated the usage of statistical quality control tools for differentiating between common and special causes of variation. Juran contributed to the quality movement by creating a focus on the definition and costs of quality. Crosby’s contribution is a result of his argument that quality is free, which is based on that idea that many costs of quality are hard to quantify.
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a. an unrealistic definition of quality
b. a user-based definition of quality
c. a manufacturing-based definition of quality
d. a product-based definition of quality
e. the definition proposed by the American Society for Quality Control
a. prevention costs
b. appraisal costs
c. internal failures
d. external failures
e. none of the above, they are all major categories of costs associated with quality
a. quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost
b. quality depends on how well the product fits patterns of consumer preferences
c. even though quality cannot be defined, you know what it is
d. quality is the degree to which a specific product conforms to standards
a. customer dissatisfaction costs
b. inspection costs
c. scrap costs
d. warranty and service costs
e. maintenance costs
a. internal costs
b. external costs
c. costs of dissatisfaction
d. societal costs
b. production procedures
c. suppliers' specifications
d. procedures to manage quality
a. it is a prerequisite for ISO 9000 certification
b. it indicates a higher level of adherence to standards than ISO 9000
c. it is only sought by companies exporting their goods
d. it deals with environmental management
a. the responsibility of the Quality Control staff to identify and solve all quality-related problems
b. a commitment to quality that goes beyond internal company issues to suppliers and customers
c. a system where strong managers are the only decision makers
d. a process where mostly statisticians get involved
a. continuous improvement
b. employment involvement
d. centralized decision making authority
a. a foolproof mechanism
b. Just-in-time (JIT)
c. a fishbone diagram
d. setting standards
e. continuous improvement
a. inspection at the end of the production process
b. an increase in numerical quotas to boost productivity
c. looking for the cheapest supplier
d. training and knowledge
b. prohibitively costly
c. an ultimate goal; in practice, 1 to 2% defects is acceptable
d. consistent with the commitment to continuous improvement
a. paid according to their contribution to quality
b. external consultants designed to provide training in the use of Quality tools
c. always machine operators
d. all trained to be facilitators
e. none of the above, all of the statements are false
a. continuous improvement
b. employee empowerment
e. patent infringement
a. Taguchi Loss Function
b. Pareto Chart
c. ISO 9000 Quality Cost Calculator
d. Process Chart
a. the cost of scrap and repair
b. the cost of customer dissatisfaction
c. inspection, warranty, and service costs
d. sales costs
e. costs to society
a. identify inspection points in a process
b. organize errors, problems or defects
c. outline production schedules
d. show an assembly sequence
e. provide guidelines for quality training
a. Pareto chart
b. Flow chart
c. check sheet
d. Taguchi map
a. Taguchi analysis
b. Pareto analysis
d. Yamaguchi analysis
a. cause-and-effect diagram
b. poka-yoke diagram
c. Kaizen diagram
d. Taguchi diagram
a. in control, but not capable of producing within the established control limits
b. out of control and the process should be investigated for assignable variation
c. within the established control limits with only natural causes of variation
d. monitored closely to see if the next sample mean will also fall outside the control limits
e. none of the above
a. Ishikawa diagram
b. Pareto chart
c. process chart
d. control charts
a. each unit manufactured is good enough to sell
b. the process limits cannot be determined statistically
c. the process output exceeds the requirements
d. if there is no other pattern in the samples, the process is in control
a. Values above the upper and lower control limits indicate points out of adjustment.
b. Control charts are built so that new data can be quickly compared to past performance data.
c. Control charts graphically present data.
d. Control charts plot data over time.
e. All of the above are true.
a. detect a bad process immediately
b. add value to a product or service
c. correct deficiencies in products
d. correct system deficiencies
a. upon receipt of goods from your supplier
b. during the production process
c. before the product is shipped to the customer
d. at the supplier's plant while the supplier is producing
e. after a costly process
c. continuous improvement
d. fishbone diagram
e. Just-in-time production
a. the foreman
b. a member of the Quality Control department
c. the operator herself
d. an engineer
e. the employee's supervisor
a. communication, courtesy, and credibility
b. competence, courtesy, and security
c. competence, responsiveness, and reliability
d. communication, responsiveness, and reliability
a. Service output is more easily measured.
b. Services tend to be produced and consumed simultaneously.
c. Service output is generally more tangible.
d. Services have a higher equipment to labor ratio.
d. all of the above
a. Provide guidance and support for total quality efforts.
b. Perform incoming and outgoing inspections.
c. Direct responsibility for outgoing quality.
d. Replace defective output.
a. winning an award
c. internal assessment and improvement
a. Most problems depend on the system and cannot be controlled by workers.
b. Slogans take up valuable space in the production department.
c. Not all workers can read the slogans.
d. Slogans are costly to maintain and periodically update.
a. Inspection encourages the production of defects.
b. Inspection can be used to assure quality.
c. Inspection is rarely accurate.
d. Inspection does not add value to the product.
a. 85 to 95
b. 5 to 15
c. 40 to 50
d. 20 to 30
b. reduced knowledge about quality from upper management
c. less responsibility for quality assigned to the quality department
d. both a and b
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