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Otqm Prelim 1

The document outlines the core concepts of Total Quality Management (TQM), emphasizing its focus on continuous improvement, customer satisfaction, and employee involvement in enhancing product and service quality. It details the primary elements of TQM, the shift from traditional management practices, and the strategic dimensions of quality, alongside the contributions of quality management gurus like Dr. Deming and Philip Crosby. Additionally, it discusses the cost of quality and various methodologies for implementing TQM within organizations.
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0% found this document useful (0 votes)
14 views12 pages

Otqm Prelim 1

The document outlines the core concepts of Total Quality Management (TQM), emphasizing its focus on continuous improvement, customer satisfaction, and employee involvement in enhancing product and service quality. It details the primary elements of TQM, the shift from traditional management practices, and the strategic dimensions of quality, alongside the contributions of quality management gurus like Dr. Deming and Philip Crosby. Additionally, it discusses the cost of quality and various methodologies for implementing TQM within organizations.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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OPERATION MANAGEMENT PRELIM

OTQM112 | BSBA Marketing Management | Third Year

Core Concepts of TQM


TOTAL QUALITY MANAGEMENT
Step 1
Lesson 1: Introduction to Total Quality ➔ Plan
Management
Step 2
➔ Do
Philosophy of TQM
Step 3
Total Quality Management — Is an
➔ Check
all-inclusive and well thought-out means to
organizational management that searches
Step 4
to advance the quality of processes,
➔ Act
products, services and culture through
continuing minor changes in reply to
This can be used to drive the process of
constant feedback.
continuous improvement and to develop a
framework for quality improvements over
Combine basic management techniques,
many years.
current improvement efforts and technical
tools.
Customer satisfaction — Develop idea of
“energy meter”
TQM — begins with a focus on the customer
and with dedication to continuous
Internal Customer satisfaction — Successful
improvement.
internal relationship.
TQM — is a process of controlled change
All work is process — Improvement of
that comprises the entire employees in the
business processes.
improvement of the quality of products and
services to boost the productivity of the
Measurement (performance) — Defects,
organization.
reworks
TQM engages every member of the
Synergy in teamwork — Bringing people
organization.
together
➔ Responsibility for quality”
People make quality — Quality of their own
➔ Quality teams”
work
TQM — is based on quality management
Continuous improvement cycle — Both
from the customer’s point of view.
internally and externally
Primary elements of TQM
Prevention — “Right at the first time, every
time” or zero defects.
1. Recognition
2. Teamwork
Benefits of Total Quality Management
3. Leadership
4. Integrity & Ethics
➔ Creates a good corporate culture
5. Communication
➔ Better reviews from customers
➔ Better performance from employees User-based — Highest quality, consumer
preferences (perceived quality)
Shifting from Traditional Management to
TQM Manufacturing-based — Engineering and
manufacturing practices (Conformance)
Traditional — Focus on internal activities
TQM — Focus is the customer Value-based — Quality and value (Best-buy
product/service)
Traditional — bad quality products are due to
the workers' lapses. Quality Types
TQM — Operational level
In general, quality is meeting and
Traditional — Checking exceeding customer expectations at a
TQM — Quality assurance rather than price that he is willing to pay to possess the
checking product or service.

Traditional — Assumptions 1. Quality of Design


TQM — Based decisions on facts and figures 2. Quality of Conformance
3. Quality of performance
In the bigger picture, TQM has basically
changed the culture and the thinking Quality of Design
patterns of the organization. ➔ Market research and sales call
analysis
TQM and Reengineering ➔ Simple and less expensive
➔ Must satisfy the requirements of the
customer

Quality of Conformance
➔ Defects control
➔ Quality control of raw materials to
finished products
➔ Level of uniformity and reliability
➔ Meeting set-standards

Quality of Performance
➔ Meeting customer expectations
➔ Ex. Customer survey (service)
Quality Control Test-drive (quality of product)

Quality is: Quality Levels

➔ More than nonexistence of defects 1. Organization Level


➔ Re-establish pride and Loyalty 2. Process Level
➔ Nonstop improvement within 3. Performer/Job/Task/Design Level
organization
➔ Quality in different manner Organization Level

Approaches to Quality Definition The organizational level quality requirements


revolve around its customers’ quality
Transcendent — Exceeding usual design requirements.

Product-based — Durability and reliability


(Quantifiable or measurable)
Issues : of use, timeliness, volume, rate, cost and
flexibility.
1. Products or services that meet customer
expectations Productivity and cost are the requirements
2. Products or services that are needed by for a customer-driven
the customers but they do not received
Consideration:
Resolution:
➔ Clear performance expectation
➔ Productivity and cost requirements ➔ Positive/Negative results of
➔ Benchmarking performing the task
➔ Customer feedback ➔ Feedback individual’s physical,
mental and emotional capacity.
Standards coming from the customer
requirements must be the foundation for Quality Paradigms
goal-setting, problem solving, performance
evaluation, incentive compensation, Custom-craft paradigm
nonfinancial rewards and resource allocation. ➔ ex. Coffee shop
➔ Focus is the product or service
Process Level ➔ Each product unit is designed and
built exactly the way the customer
Focused on the functions of the departments. wants it

Issues : Mass production and sorting paradigm


➔ ex. Automobile parts, production rate
1. Products or services that are ➔ Products are designed and built
2. Most important to external customers. based on how the customer defined
3. Processes that produce those products or the products
services ➔ Rework and scrap are obvious
4. Processes that have the most major effect Labor-intensive
on the organization’s customer-drive
performance standards. Statistical quality control paradigm
➔ ex. Electronic
Resolution: ➔ Low scrap, low rework and emphasis
given to production process
End-user requirements should then be
translated into specific measures that Total Quality management paradigm
should drive one or more internal measures ➔ ex. Ford)
for the overall process. ➔ Focuses on customers and suppliers
➔ Customer participate in product
Performer/Job/Task/Design Level definition and performance
evaluation, employee involvement
It is vital to generate an individual quality ➔ Results in high quality product,
in the context of organization. low-cost, speedy delivery and
decrease in rework.
Developing standards to measure each
individual key output is a necessity to Techno-craft paradigm
define quality. ➔ ex. apparel industries
➔ Socio-technical complement to the
Areas to be measured to qualify individual custom-craft paradigm with the
standards would include accuracy, intention of reducing delivery time.
completeness, innovations, reliability, ease ➔ Using product process flexibility.
Cost of Quality ➔ Ex. Car (acceleration, speed, comfort)

Cost of Quality — Is a method that permits 2. Features


an organization to decide on the level to ➔ What does the product do?
which its resources are used for activities ➔ Features are added characteristics
that avoid poor quality, that assess the that boost the attraction of the
quality of the organization’s products or product or service to the user.
services, and the result from internal and ➔ Qualities of a product like size, shape,
external failures. materials, functionalities, capabilities.
➔ Make the product saleable
Prevention Costs ➔ Ex. Samsung Smart TV
➔ ex. Quality planning
3. Reliability
Appraisal Costs ➔ How often does the product fail?
➔ Spotting defect ➔ Products will not fail inside a
➔ ex. Quality audit particular time period.
➔ Reliability may be directly connected
Internal Failure Costs (before) to performance
➔ ex. Failure analysis ➔ More relevant to durable goods than
to products or services that are
External Failure Costs (after) consumed instantly.
➔ ex. After sales ➔ Mean Time Between Failures (MTBF)-
average time
2 Main Components of Cost of Quality ➔ Failure rate – frequency ex.
Automobile failure
Cost Conformance — Is the cost of making
available products or services based on 4. Conformance
required standards. ➔ Is the product made exactly as the
designer intended?
Cost of Non-Conformance — Failure costs ➔ Extent a product’s design and
linked with a process not functioning based operating characteristics meet
on required standards. established standards.
➔ Specifications are set and a target is
set (Tolerance)

STRATEGIC DIMENSIONS OF QUALITY


5. Durability
➔ How long does the product last?
Lesson 2: Strategic Dimensions of Quality ➔ Measure of how much use a person
gets from a product before it breaks
down to such a point that
Dimensions of Product Quality
replacement makes more sense than
________________________________________
continual repair.
➔ Measures the length of a product’s
Understanding the trade-offs preferred by
life.
customers among these dimensions can
➔ Durability and reliability are closely
help build a competitive advantage.
linked
➔ Durability figures should be
1. Performance
interpreted with care.
➔ Will the product do the intended job?
➔ Durability testing (Vibration testing
➔ Performance consists of the primary
like vibration experiment and
operating characteristics of a
vibration stress screening, Shock
product.
tests, Climate Testing
➔ Based on functional requirements not
taste
6. Serviceability 3. Responsiveness — Willingness to help
➔ How easy is it to repair the product? customers and provide prompt service. Also
➔ Involves the consumer’s ease of captures the impression of flexibility and
obtaining repair service like access to ability to tailor service to customer needs.
service centers and/ or ease of
self-service. 4. Assurance — Employees’ knowledge of
➔ The responsiveness of service courtesy and the ability of the firm and its
personnel ex. CRM employees to inspire trust and confidence.
➔ Competence and ease of repair Employees must be competent to gain trust
➔ Company’s complaint handling To gain competitive advantage and
procedures customers’ loyalty.
➔ Ex. Parts warranty, courteous ➔ Ex. Restaurant providing quality and
employees, parts availability, length clean food
of repair process, service center,
extended warranty 5. Empathy — Refers to the caring attitude
that organization provides toward
7. Aesthetics customers. It is an additional plus that the
➔ What does the product look like? trust and confidence of the customers and
➔ How a product looks, feels, sounds, at the same time increase the loyalty. Meet
tastes, or smells. the special requirements of customers.
➔ Personal judgment and indication of Service quality gap.
individual preferences.
➔ Refers to the outside feel of the
product.
GURUS OF TOTAL QUALITY
➔ Aesthetic properties of a product add
to a company’s or brand identity. MANAGEMENT

8. Perceived Quality Lesson 3: Gurus of Total Quality


➔ What is the reputation of the Management
company or its product?
➔ Individuals’ subjective appraisal of
product’s or service’s attributes Dr. William Edwards Deming — October 14,
➔ Images, advertising, and brand 1900 - December 20, 1993.
names are vital
➔ Reputation is the primary stuff of Dr. William Edwards Deming — Father of
perceived quality. (Comparison of Total Quality Management. Best known for
products) initiating a transformation in the Japanese
manufacturing sector in the after effects of
Dimensions of Service Quality WWII.
________________________________________
Dr. William Edwards Deming — Known for 14
1. Tangibles — Associated to the points, Deming chain reaction, and for the
environment in which service is rendered Theory of profound knowledge. Modified
to the customers. the Shewhart PDSA (plan, do, study, act)
➔ Ex. Starbucks, seating arrangement, and is now referred to as Deming cycle (plan,
interior decoration, ambiance do, check, act).

2. Reliability — Ability to perform the Dr. William Edwards Deming stated that…
promised service dependably and
accurately Only the customer can define the quality of
➔ Ex. Cebu Pacific Airline (low-cost any product or service. His approach to
carrier) TQM is mainly concentrated on the creation
of an organizational system based on
cooperation and learning.
The responsibilities of top management is 7. Institute leadership – Espouse and
to be the leader in changing processes and introduce leadership, aimed at helping
systems. people carry out a better job.

Leadership plays an important role in 8. Drive out fear — Build a fear free
ascertaining the success of total quality environment where everyone can
management. contribute and work effectively.

He also emphasized the importance of 9. Breakdown barriers — Barriers between


identification and measurement of organizational levels and departments are
customer requirements, creation of supplier internal barriers. Barriers can be removed
partnership, use of functional teams to using better communication
identify and solve quality problems, cross-functional teams, and changing
enhancement of employee skills, attitudes and cultures.
participation of employees, & pursuit of
continuous improvement. 10. Eliminate exhortations/catchphrases —
Such exhortations only form adversarial
Deming’s 14 Point Methodology relationships.

1. Constancy of purpose — Create firmness 11. Eliminate arbitrary numerical targets —


of purpose for continual improvement of Remove work standards that stipulate
products and service and distribute numerical quotas. Replace these with aids &
resources to accommodate long term useful supervision & employ statistical
needs rather than short term profitability. methods for continual improvement of
quality and productivity.
2. The new philosophy — Adopt new
philosophy for one can no longer allow 12. Permit pride of workmanship —
delays, mistakes, and faulty workmanship. Eradicate annual merit rating and
management by objectives. The
3. Cease dependence on inspection — responsibility of managers, supervisors,
Remove the need for mass inspection by and foremen must be changed from
building quality into the product in the first absolute numbers of quality.
place. Insist statistical evidence of built-in
quality in both manufacturing and 13. Encourage education — This point
purchasing functions. tackles the need for ongoing and
continuous education and
4. End lowest tender contracts — Reduce self-improvement for the whole
total cost. This approach has overlooked organization. Without properly trained and
hidden costs like increased travel visit to motivated employees, continuous
suppliers, loss of volume discounts, improvement cannot be carried out.
increased set-up charges resulting in
higher unit costs, and increased inventory 14. Top management’s commitment — A
and administrative expenses. clearly defined commitment by the top
management to constantly improve quality
5. Improve every process — Management’s and productivity.
job is to constantly make the system better
with contribution from workers and Deming’s 7 Deadly Diseases
management.
This recaps the factors that he believes can
6. Institute training on the job — Introduce slow down the transformation that the 14
up to date methods of training on the job, points can bring about.
incorporating management to make
greatest use of all employees.
1. Lack of constancy of purpose to plan 2. The system — Prevention, not appraisal.
products and services that have a market
sufficient to keep the company in business 3. The performance standard — Zero
& provide jobs. defects.

2. Stress on short-term profits; short-term 4. The measurement — The price of


thinking that is driven by a fear of unfriendly non-conformance to requirements, not
takeover attempts and pressure from quality circles
bankers and shareholders to generate
dividends. Crosby’s 5 Stages of Quality Management
Maturity Grid
3. Personal review systems for managers
and management by objectives with no
methods or resources provided to achieve
objectives; includes performance
evaluations, merit rating, and annual
appraisals.

4. Job hopping by managers.

5. Using only evident data and information


in decision making with little or no
consideration given to what is unknown or Crosby’s 14 Step Methodology
cannot be known.
1. Management commitment — To make
6. Extreme medical costs. clear the management’s positions on
quality
7. Too much costs of liability driven up by
lawyers who work on contingency fees 2. Quality improvement team — To carry
out the quality improvement program
Philip Crosby — June 18, 1926-August 18,
2001 3. Quality measurement — To exhibit
existing and possible non-conformance
Philip Crosby — Quality is free in 1979. He problems
established the absolutes of quality
management, which states that the only 4. Cost of quality — To identify the
performance standard is zero defects and components of the cost of quality, and give
the basic elements of improvement. details on its application as a management
tool
Zero Defects — The heart of Crosby’s
philosophy. 5. Quality awareness — To give a method of
elevating individual concern among the
Philip Crosby — His theory was scorned to personnel in the company towards the
unhelpful accomplishment. Deming conformance of the product and service
censured his philosophy because he
believed that it was being directed at the 6. Corrective action — To offer a systematic
wrong people and forming worker frustration method of deciding the problems
and bitterness. recognized through actions taken in the past

Crosby’s Four Absolutes of Quality 7. Zero defects planning — To study the


different activities that must be performed
1. The definition — Quality is conformance as groundwork for officially initiating zero
to requirements, not goodness. defects program.
8. Supervisor training — To name the type of language of business and quality efforts
training that supervisors require to must be communicated to the management
energetically perform their roles in their language.

9. Zero defects day — To produce an event Juran Propounded the following message
that will allow all employees to appreciate, on quality:
through a personal experience, that there
has been change. ➔ Quality control must be part of
essential part of management
10. Goal setting — To twist promises and ➔ Quality is no mistake
commitments into action by persuading ➔ Quality must be planned
individuals to set up improvement goals. ➔ There are no shortcuts to quality
➔ Make use of problems as source of
11. Error-cause removal — To offer individual improvement
employees a way of communicating to the
management. Juran’s Formula consists of:

12. Recognition — To be thankful for those 1. Create an awareness about the need and
who contribute. propose an opportunity for improvement
2. Set goals for improvement
13. Quality councils — To bring collectively 3. Systematize paths to attain the goals
professionals in the realm of quality for 4. Give training
planned communication. 5. Do projects to resolve problems
6. Inform progress
14. Do it over again — To accentuate that 7. Provide recognition
the quality improvement program never 8. Communicate outcome
ends. 9. Keep score
10. Uphold thrust by making yearly
Crosby’s Claim “Mistakes are caused by improvements component of the regular
Two Factors” systems and processes of the company

➔ Lack of Knowledge In his view, the approach to managing for


➔ Lack of Attention quality consists of:

Dr. Joseph Moses Moran — December 24, 1. The irregular problem is detected and
1904-February 28, 2008 acted upon by the process of quality control;
2. The constant problem needs a special
Dr. Joseph Juran — Assisted the Japanese process, namely, quality improvement;
in their reconstruction processes after 3. Such constant problems are traceable to a
World War II. poor quality planning process.

1. Quality Planning Breakthrough Activities or Quality


2. Quality Control Improvement include:
3. Quality Improvement
1. Breakthrough in attitudes — Persuading
Questioning which aspect of the quality those responsible that a change in quality
trilogy is most vital is like asking "Which leg level is advantageous.
of the stool is the most important?"
2. Discovery of the vital few projects —
While Deming's approach is radical in nature, Determining which quality problem areas
Juran's approach is more evolutionary. For are essential.
Deming statistics is the language of business
while Juran says that money is the
3. Organizing for breakthrough in Dr. Walter Andrew Shewart — March 11, 1967
knowledge — Defining the organizational - March 18, 1981
system for attaining the knowledge for
accomplishing a breakthrough. Dr. Walter Andrew Shewart — The
grandfather of quality control. Born to
4. Formation of a steering arm — Defining Anton and Esta Barney Shewart in New
and staffing a system for directing the Canton II.
study for quality improvement
Dr. Walter Andrew Shewart — By mentoring
5. Formation of an investigative arm — other engineers in western electric and his
Defining and staffing a system for groundbreaking work with control charts
executing the technical inquiry. arguably led a quality revolution and
launched the quality profession
6. Diagnosis — Collecting and examining the
facts necessary and proposing the action Dr. Walter Andrew Shewart — His principle
desirable. was that bringing a process into a state of
statistical control would permit the
7. Breakthrough in cultural pattern — distinction between assignable and chance
Determining the effect of an anticipated to cause variations. This was the birth of the
change on the people involved and looking modern scientific study of process control.
for ways to rise above opposition to change.
Shewart Cycle
8. Breakthrough in performance — Getting
agreement to take action. To manage the effects of variations. He
stressed that eliminating variability
9. Transition to the new level — Implement improved quality. His work created the
the change. foundation for statistical process control
measures used today.
“Control” activities include:
➔ Plan
➔ Choosing the control subject which is ➔ Do
choosing what is intended to regulate ➔ Study
➔ Choosing a unit of measure ➔ Act
➔ Setting a goal for the control subject
➔ Creating a sensor which can measure Dr. Armand V. Feigenbaum — Born in 1992.
the control subject in terms of the He is best known for developing the concept
unit of measure of "Total Quality Control" (TQC) (1956) and
➔ Measuring real performance his contributions to the field of Total Quality
➔ Interpreting the difference between Management (TQM).
actual performance and the goal
➔ Taking action (if any) on the Company wide quality control — Japanese
difference version of Dr. Feigenbaum's concept.

“Planning” activities include: Three key steps to quality:

➔ Establish the quality goal 1. Quality Leadership — Sets the tone and
➔ Identify customers demonstrates.
➔ Discover customer needs
➔ Develop product features 2. Modern Quality Technology — Importance
➔ Develop process features of using modern tools and techniques for
➔ Establish process controls and quality management.
transfer to operations
3. Organizational Commitment — Fostering a Professor Kaoru Ishikawa — Also known as
culture of quality throughout the "Ishikawa Diagram" or "The Fishbone
organization. Diagram".

Feigenbaum 10 points on TQM include: Ishikawa’s 7 Basic Tools “Indispensable for


Quality Control”
1. Quality is consciousness programmed not
only as a technical function. ➔ Plan
➔ Process flow chart
2. Quality is not what an engineer or ➔ Check sheet
marketer says but it is what the customer ➔ Histogram
speaks of. ➔ Pareto chart
➔ Cause and effect diagram
3. Quality and cost are a sum, not ➔ Scatter diagram
differences. ➔ Control chart

4. Quality must be organized to identify Key elements to the development of


everybody's job in the organization. participative bottom up view of quality

5. Quality is a technique of managing an ➔ Quality starts with education and


organization. Good management means culminates with education
continuous stress on the quality ➔ The first step in quality is to know the
customers requirements
6. The quality improvement highlighting ➔ The perfect state of quality control
must take place all through all activities of happens when inspection is no longer
the organization. compulsory
➔ Take out the root cause, not the
7. Quality is realized through assistance and symptoms
contribution of each and every person ➔ Quality control is the duty of all
related to the organization. It is also an ethic. workers and all divisions
➔ Do not mistakes means with the
8. Continuous quality improvement needs an objectives
extensive range of new and existing ➔ Set quality first and set your sights on
quality technology of information long-term profits.
applications. ➔ Market is the entry and way out of
quality
9. Total quality program approach leads to
productivity and is most effective and less 6 Fundamental Principles of Ishikawa’s
capital intensive. Concept of Total Quality Control:

10. Quality comes, if it is clear, customer 1. Quality first — Not short-term profits
oriented, effective and structured.
2. Customer orientation — Not producer
Professor Kaoru Ishikawa — Father of orientation
Quality Circles. Established the use of a
quality circle. 3. The next step is your customer —
Breaking down the fence of sectionalism
Professor Kaoru Ishikawa — Championed
the use of quality tools. Developed the tool 4. Using facts and data to make
"cause and effect diagram". presentations — Use of statistical methods
5. Reverence for humanity as a engineering design of the product
management philosophy, full participatory and the manufacturing process.
management ➔ A product or a process's performance
variation can be lessened by
6. Cross — Functional management. exploiting the nonlinear effects of the
products or process parameters on
Genichi Taguchi — He was born in Japan the performance characteristics.
and completed his graduation in ➔ Statically planned experiments can
Mechanical Engineering and obtained Ph.D. be used to name the settings of
in the year 1962. product process parameters that
reduce performance variation.
Genichi Taguchi — He is a Japanese quality
expert known for his work in the area of Genichi Taguchi’s 8 Point Approach
product design. He estimated that 80% of all
defective items are caused by poor product 1. Determine the main functions, side
design. effects and loss modes.

Genichi Taguchi — He stressed that 2. Determine the noise factors and the
companies needed to center their quality testing conditions for evaluating
efforts on the design stage, as it was much failure of quantity.
less expensive and easier to make changes in
the production process. 3. Determine the quality characteristics
to be observed and the objective
Genichi Taguchi — He defines quality as the function to be optimized.
loss imparted to the society from the time a
product is shipped. 4. Determine the control factors and
their alternate levels.
➔ Examples of loss failure to reach ideal
performance. 5. Blueprint the matrix requirements
➔ Failure to meet customers' and define the data analysis
requirements. procedure.
➔ Breakdown, and harmful side effects
caused by the product. 6. Carry out the matrix

This simply means that the smaller the loss, 7. Examine the data, identify optimum
the more desirable the product. levels for the control factors and
foresee performance under these
Key elements of Taguchi’s Quality levels.
Concepts
8. Perform the confirmation experiment
➔ Quality improvement should focus on and prepare future actions.
reducing the variation of the products
key performance characteristics Dr. Shingo Shigeo — Born in 1909 at Saga
about their target value. City, Japan. Graduated from Yamanashi
➔ The loss suffered by a customer due Technical College (1930); worked for the
to a product performance variation is Taipei Railway Company.
often just about proportional to the
square of the deviation of the Dr. Shingo Shigeo — Worked in Amano
performance characteristics from its Manufacturing Plant, Yokohama (1945).
target value. Developed Just-In-Time (JIT) and Toyota
➔ The ultimate quality and cost of Production System (1959)
manufactured products are
determined to a great extent by the
Dr. Shingo Shigeo — Reduced setup time of relates to stopping processes as soon as a
hull assembly on a 65,000-ton super defect happens.
tanker from 4 months to 2 months - a new
record in shipbuilding. (1956-1958) Masaki Imai — He was a Japanese quality
guru. The Founder and President of Kaizen
Dr. Shingo Shigeo — Developed the Institution who threw the word “Kaizen”.
‘Defects=0’/ poka-yoke/ mistake proofing
(1961). “Single Minute Exchange of Dies” Kaizen — Refers to continuous or on-going
concept. Died in 1990. improvement in Japanese.

Dr. Shingo Shigeo’s 3 Teaching Concept: Masaki Imai — He established the Kaizen
Institute to help western companies
1. Just in Time (JIT) introduce kaizen concepts, systems and
2. Single Minute Exchange of Dies tools. Kaizen: The Key To Japan's
(SMED) Competitive Success in 1986.
3. Zero Quality Control (ZQC)
Kaizen is continuous improvement that is
Just in time (JIT) — It is a production based on certain guiding principles:
strategy that strives to improve a business’
return on investment by reducing ➔ Good processes carry good results.
in-process inventory and associated ➔ Go see to yourself to grab the present
carrying costs. situation.
➔ Speak with data, direct by facts.
Just in time (JIT) — Uses a systems ➔ Take action to contain and remedy
approach to develop and operate a root causes of problems. • Work as a
manufacturing system. Organizes the team.
production process so that parts are ➔ Kaizen is everyone’s business.
available when they are needed

Just in time (JIT) — A method for optimizing


processes that involves continual reduction
of waste.

Single Minute Exchange of Dies (SMED) — It


is a system for speedy changeovers
between products. The target is to make
simpler materials, machinery, processes and
skills to significantly decrease changeover
times from hours to minutes.

Zero Quality Control (ZQC) — Refers to an


ideal system that produces no defective
products and therefore does not require
frequent inspections that waste both money
and time.

Error-proofing devices were implemented


by Dr. Shigeo to abolish the likelihood of
flawed operations in the assembly line.

Poka-yoke technique — It is a specific type


of error-proofing that originated in Japan. It

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