Chapter 12 is entitled “Total quality management (TQM) and purchasing.” Preliminary studies indicate that assembly time is roughly proportional to the number of parts assembled. It has been shown that the number of parts in a design can be decreased by 20–40 percent when engineers are told to design the product to minimize the number of parts.
Trang 1Purchasing and Supply Chain Management
3rd edition
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Chapter 12:
Total Quality Management (TQM)
and Purchasing
Purchasing and Supply Chain Management, 3rd edition, Copyright 2013, W.
Trang 2Content
(SPC)
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Trang 3• TQM
• A continuous improvement process
• Beyond the traditional quality view
• The entire organization works as a team
management
• Need highquality raw materials or component parts from suppliers
Trang 4Traditional vs. TQM
Organizations
• Looks only at the quality of the final product or services
• Looks at the quality of every aspect of the process that produces the product or service
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Trang 5for the supply chain as well as the members
• Select suppliers with a TQM philosophy
• Replace suppliers that ignore the TQM
• Investigate customer requirements
• Include suppliers in the new product development process
Trang 6TQM Implementation Failures
• Lack of a quality focus throughout the supply chain
• Lack of a sense of urgency for change throughout the buying organization
• Lack of a strategic plan for change
• Lack of a customer or supplier focus
• Lack of positive communications throughout the buying
organization
• Lack of the buying organization’s employees’ integration and involvement
• Lack of longterm view
• Lack of leadership internally and externally 6
Trang 7• Suppliers’ quality assurance systems must be consistent with the inhouse quality requirements of the customer
• PPM target agreement
• Field failure and reliability requirements
• Warranty agreement
• Urgency to solve problems
Trang 8Manufacturing Process Control
• Reactive and expensive
• Select production samples and examine for defectives
• Either rework or scrap defectives
• Statistical Process Control (SPC)
• Six Sigma
• Taguchi Method
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Trang 9(SPC)
within control/specification limits
• Sample mean (Xbar) chart
• Sample mean is plotted
• Sample range (R) chart
• Range of the sample is plotted
Trang 10Statistical Process Control
(SPC) (cont.)
• A description of the required output, including specific characteristics
• e.g., weights and measurements
• The upper control limit (UCL)
• The lower control limit (LCL)
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Trang 11SPC and Control Limits
out of control
• Set to determine the probability of the units within the incoming materials falling within the control limits
• Example:
• With the control limits set as plus and minus two standard deviations away from the mean…
• The process is out of control when…
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Trang 12SPC Chart Examples
example
example
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Upper Control Limit
Lower Control Limit
Trang 13• Control the process so that only 1 out of a million fall out of the control limits
1. Defects per million as a standard metric
2. Extensive employee training
3. The reduction of nonvalueadded activities
Trang 14Taguchi Method
• Complex and can be difficult to implement
• Short term: increases overhead without offering benefits that can immediately be quantified
• Long term: gives the firm strong competitive advantage
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Trang 15Quality Awards
Trang 16Quality Awards (cont.)
• Named for the quality guru Dr. W. Edwards Deming
• 2 types of awards: The Deming Prize, The Deming Application Prize
• Given to a person or group of people who have advanced the practice and furthered awareness of TQC
• Given to companies based on successes attributable to
implementing TQC
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Trang 17• Standards originated in manufacturing used to certify a variety of organizations and business concerns
• ISO 9001
• A 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 requirements
Trang 18Questions?
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