Total Quality Management - CII Institute of Logistics

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Total Quality Management a company will be selected to receive the Deming award, the quality control circle, and cause-and-effect diagrams--a principle tool for quality management. Taguchi’s contributions were centered on explaining the economic value of reducing variation. He maintained that the manufacturing-based definition of quality as conformance to specification limits is inherently flawed. He also contributed to improving engineering approaches to product design. By designing a product that is insensitive to variation in manufacture, specification limits become meaningless. Taguchi advocated certain techniques of experimental design to identify the most important design variables in order to minimize the effects of uncontrollable factors on product variation. Thus, his approaches attacked quality problems early in the design stage rather than react to problems that might arise later in production. Taguchi measured quality as the variation from the target value of a design specification, and then translated that variation into an economic "loss function" that expresses the cost of variation in monetary terms. In doing this, Taguchi offered a method of measuring the monetary loss resulting from creation of products or services that do not conform to quality standards. This method was used by Deming to compare the decreased costs of producing products or services with quality values closer to those of standard quality specifications. CII Institute of Logistics 16 Website: www.ciilogistics.com
Total Quality Management 1.7 Quality and Competitiveness Attempt to Define and Delineate Quality Webster's definition of quality is vague and simplistic. "(Quality is) that which makes something what it is; characteristic element." The ANSI/ASQ definition states quality is "the totality of features and characteristics of a product or service that bears on its ability to satisfy given needs." No single definition is adequate because customer needs are constantly changing and because quality is "situational" -- e.g. a good design for one purpose, and in the eyes of one set of customers, may represent a poor design for another use or another set of customers. Reliance on a single definition of quality is frequently a source of problems. Formal definitions of quality followed by distilled practitioners are given in the following table: Popular Quality Definitions Transcendent definition: Excellence Product-based definition: Quantities of product attributes User-based definition: Fitness for intended use Value-based definition: Quality vs. price Manufacturing-based definition: Conformance to specifications Quality definitions, such as the user-based, value-based, and even manufacturingbased concepts are applicable both to products and services. For example, in a university setting, fitness for intended use may be seen by the example of a small liberal-arts college that provides an outstanding science curriculum for people who CII Institute of Logistics 17 Website: www.ciilogistics.com
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