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Saturday, November 28, 2009
"Modern Chairs" - a TQM video
A Total Quality Management training video that the final year class at the University of Edinburgh made in the style of Charlie Chaplin's Modern Times. The intention was to teach, teamwork, production line processes, process optimisation, defects, quality, and continual improvement 'Kaizen'.
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TQM at QPL Ltd
QPL Ltd., a leader in total quality management, empowers emplyees to ensure uncompromising quality in the production process.
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6s Quality Process of Pharmanex (Video)
Pharmanex uses proprietary technology in its manufacturing processes to maintain tight quality controls through all stages of product development. The key to consistent quality is the Pharmanex® 6S® Quality Process, the basis of the company's pharmaceutical approach to product development.
The attention to detail, strict scientific testing, and commitment to quality ensures that every Pharmanex® product is absolutely safe and effective. The 6S® Quality Process has enabled Pharmanex to become an industry leader in quality and efficacy. (Intrinsic activity or efficacy refers to the ability of a drug-receptor complex to produce a functional response)
6s Quality Process: Selection, Sourcing, Structure, Standardisation, Safety, Substantiation Quality.
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The attention to detail, strict scientific testing, and commitment to quality ensures that every Pharmanex® product is absolutely safe and effective. The 6S® Quality Process has enabled Pharmanex to become an industry leader in quality and efficacy. (Intrinsic activity or efficacy refers to the ability of a drug-receptor complex to produce a functional response)
6s Quality Process: Selection, Sourcing, Structure, Standardisation, Safety, Substantiation Quality.
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Friday, November 27, 2009
Views on Quality Costs
Traditional View
• Cost of conformance is the cost of achieving specified quality standards.
• Cost of non-conformance is the cost of failure to deliver the required standards of quality.
• Cost of conformance is a discretionary cost which is incurred with the intention of eliminating the cost of internal and external failure.
• The cost of non-conformance on the other hand, can only be reduced by increasing the cost of conformance.
The traditional approach to quality management is that there is an optimal level of quality effort, that minimizes total quality costs, and there is an optimal level of quality effort, that minimizes total quality costs, and there is a point beyond which spending more on quality yield a benefit that is less than the additional cost incurred. Diminishing returns ser in beyond the optimal quality level.
The TQM philosophy is different.
(a) Failure and poor quality are unacceptable. It is inappropriate to think of an optimal level of quality at which some failures will occur, and the inevitability of errors is not something that an organization should accept. The target should be zero defect.
(b) Quality costs are difficult to measure, and failure costs are often seriously underestimated. The real costs of failure include not just the costs of scrapped items and re-working faulty items, but also the management time spent on sorting out problems and the loss of confidence between different parts of the organization whenever faults occur.
(c) A TQM approach does not accept that the prevention costs of achieving zero defects becomes unacceptably high as the quality standard improves and goes above a certain level. In other words, diminishing returns does not necessary set in. If everyone in the organization is involved in improving quality, the cost of continuous improvement need not be high.
(d) If an organization accepts an optimal quality level that it believes will minimize total quality costs, there will be no further challenge to management to improve quality further.
The TQM quality cost model is based on the view that:
(a) Prevention costs and appraisal costs are subject to management influence or control. It is better to spend money on prevention, before failures occur, than on inspection to detect failures after they have happened.
(b) Internal failure costs and external failure costs are the consequences of the efforts spent on prevention and appraisal. Extra effort on prevention will reduce internal failure costs and this in turn will have a knock-on effect, reducing external failure costs as well.
In other words, higher spending on prevention will eventually lead to lower total quality costs.
The emphasis is on “getting things right first time” and “designing in quality” to the product or service.
(source: BPP Learning Media)
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• Cost of conformance is the cost of achieving specified quality standards.
• Cost of non-conformance is the cost of failure to deliver the required standards of quality.
• Cost of conformance is a discretionary cost which is incurred with the intention of eliminating the cost of internal and external failure.
• The cost of non-conformance on the other hand, can only be reduced by increasing the cost of conformance.
The traditional approach to quality management is that there is an optimal level of quality effort, that minimizes total quality costs, and there is an optimal level of quality effort, that minimizes total quality costs, and there is a point beyond which spending more on quality yield a benefit that is less than the additional cost incurred. Diminishing returns ser in beyond the optimal quality level.
The TQM philosophy is different.
(a) Failure and poor quality are unacceptable. It is inappropriate to think of an optimal level of quality at which some failures will occur, and the inevitability of errors is not something that an organization should accept. The target should be zero defect.
(b) Quality costs are difficult to measure, and failure costs are often seriously underestimated. The real costs of failure include not just the costs of scrapped items and re-working faulty items, but also the management time spent on sorting out problems and the loss of confidence between different parts of the organization whenever faults occur.
(c) A TQM approach does not accept that the prevention costs of achieving zero defects becomes unacceptably high as the quality standard improves and goes above a certain level. In other words, diminishing returns does not necessary set in. If everyone in the organization is involved in improving quality, the cost of continuous improvement need not be high.
(d) If an organization accepts an optimal quality level that it believes will minimize total quality costs, there will be no further challenge to management to improve quality further.
The TQM quality cost model is based on the view that:
(a) Prevention costs and appraisal costs are subject to management influence or control. It is better to spend money on prevention, before failures occur, than on inspection to detect failures after they have happened.
(b) Internal failure costs and external failure costs are the consequences of the efforts spent on prevention and appraisal. Extra effort on prevention will reduce internal failure costs and this in turn will have a knock-on effect, reducing external failure costs as well.
In other words, higher spending on prevention will eventually lead to lower total quality costs.
The emphasis is on “getting things right first time” and “designing in quality” to the product or service.
(source: BPP Learning Media)
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Costs of Quality & Quality Reports
“Concern for good quality saves money, Poor quality costs money”
Costs of quality can be analyzed into prevention, appraisal, internal failure and external failure costs and should be detailed in a cost of quality report.
Cost of quality is the difference between the actual cost of producing, selling and supporting products or services and the equivalent costs if there were no failures during production or usage.
Cost of quality can be analyzed into:
• Cost of prevention – the costs incurred prior to or during production in order to prevent substandard or defective products or services from being produced.
• Cost of appraisal – cost incurred in order to ensure that outputs produced meet required quality standards.
• Cost of internal failure – the cost arising from inadequate quality which are identified before the transfer of ownership from supplier to purchaser.
• Cost of external failure – the cost arising from inadequate quality discovered after the transfer of ownership from supplier to purchaser.
External failure costs are the costs of failing to deliver a quality product externally. The sum of internal failure costs, prevention and appraisal costs is the cost of failing to deliver a quality product internally.
Examples of Quality-related Cost
(1) Prevention costs
• Quality engineering,
• Design/development of quality control/inspection equipment,
• Maintenance of quality control/inspection equipment.
• Administration of quality control,
• Training in quality control
(2) Appraisal costs
• Acceptance testing,
• Inspection of goods inwards.
• Inspection costs of in-house processing.
• Performance testing
(3) Internal failure costs
• Failure analysis,
• Re-inspection costs.
• Losses from failure of purchased items.
• Losses due to lower selling prices for sub-quality goods.
• Costs of reviewing product specifications after failures
(4) External failure costs
• Administration of customer complaints section
• Costs of customer service section
• Product liability costs
• Costs of repairing products returned from customers
• Costs of replacing items due to sub-standard products/marketing errors
(source: BPP Learning Media)
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Costs of quality can be analyzed into prevention, appraisal, internal failure and external failure costs and should be detailed in a cost of quality report.
Cost of quality is the difference between the actual cost of producing, selling and supporting products or services and the equivalent costs if there were no failures during production or usage.
Cost of quality can be analyzed into:
• Cost of prevention – the costs incurred prior to or during production in order to prevent substandard or defective products or services from being produced.
• Cost of appraisal – cost incurred in order to ensure that outputs produced meet required quality standards.
• Cost of internal failure – the cost arising from inadequate quality which are identified before the transfer of ownership from supplier to purchaser.
• Cost of external failure – the cost arising from inadequate quality discovered after the transfer of ownership from supplier to purchaser.
External failure costs are the costs of failing to deliver a quality product externally. The sum of internal failure costs, prevention and appraisal costs is the cost of failing to deliver a quality product internally.
Examples of Quality-related Cost
(1) Prevention costs
• Quality engineering,
• Design/development of quality control/inspection equipment,
• Maintenance of quality control/inspection equipment.
• Administration of quality control,
• Training in quality control
(2) Appraisal costs
• Acceptance testing,
• Inspection of goods inwards.
• Inspection costs of in-house processing.
• Performance testing
(3) Internal failure costs
• Failure analysis,
• Re-inspection costs.
• Losses from failure of purchased items.
• Losses due to lower selling prices for sub-quality goods.
• Costs of reviewing product specifications after failures
(4) External failure costs
• Administration of customer complaints section
• Costs of customer service section
• Product liability costs
• Costs of repairing products returned from customers
• Costs of replacing items due to sub-standard products/marketing errors
(source: BPP Learning Media)
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TEDxAtlanta Video
How to accelerate the journey to higher level leadership skills.
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Performance Prism
Overview
Performance Prism is a three dimensional model.
The model has Five Facets: The top and bottom facets are Stakeholder Satisfaction and Stakeholder Contribution respectively. The three side facets are Strategies, Processes and Capabilities.
These five facets are linked and have a sequential order starting with Stakeholder Satisfaction and finishing with Stakeholder Contribution.
Step 1 The model starts from the percept that successful organizations have a clear picture of who their key stakeholders are and what they want.
Step 2 These organizations then define what strategies they will pursue to ensure that value is delivered to these stakeholders.
Step 3 They understand what processes the enterprise requires if these strategies are to be delivered and they have defined what capabilities they need to execute these processes.
Step 4 Successful organizations have also thought carefully about what it is that the organization wants from its stakeholders. This includes employee loyalty, customer profitability, and long term investment, for instance.
In essence they have a clear business model and an explicit understanding of what constitutes and drives good performance.
(source : BPP Learning Module)
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Performance Prism is a three dimensional model.
The model has Five Facets: The top and bottom facets are Stakeholder Satisfaction and Stakeholder Contribution respectively. The three side facets are Strategies, Processes and Capabilities.
These five facets are linked and have a sequential order starting with Stakeholder Satisfaction and finishing with Stakeholder Contribution.
Step 1 The model starts from the percept that successful organizations have a clear picture of who their key stakeholders are and what they want.
Step 2 These organizations then define what strategies they will pursue to ensure that value is delivered to these stakeholders.
Step 3 They understand what processes the enterprise requires if these strategies are to be delivered and they have defined what capabilities they need to execute these processes.
Step 4 Successful organizations have also thought carefully about what it is that the organization wants from its stakeholders. This includes employee loyalty, customer profitability, and long term investment, for instance.
In essence they have a clear business model and an explicit understanding of what constitutes and drives good performance.
(source : BPP Learning Module)
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