Chap 1 Historical Perspective W CM
Chap 1 Historical Perspective W CM
Chap 1 Historical Perspective W CM
Manufacturing
Chapter 1
Historical Perspective
Dimensions of
competitiveness
Cost or price
Quality
Product or service differentiation
Dependability as a supplier
Reliability
Flexibility
Speedy delivery
Customer service
Employee productivity and managerial
expertise
Production management
contribution to strategy
Operations Decisions
Quality
Product
Process
Location
Layout
Human resource
Supply chain
Inventory
Scheduling
Maintenance
Low Price
Delivery
Speed
Dependability
Quality
Conformance
Performance
Quality Maturity
Level Zero
No consideration for quality
Level One
A company begins to explore the field of
quality often through the necessity to
conform to ISO 9000 standards
Level Two
Quality begins to be seen as reality.
Installation process is deviced and people are
trained & supported about quality and what it
will do
Level Three
Embedded the quality process. Fight to
achieve quality
Level Four
When the CEO starts to make Quality
process sweat. He wants it to use it for
business advantage and drives the process
accordingly. He sets hard goals, Installs
sharp measures, establish benchmarks
from external sources and gears up
everybody for delivery
Level Five
Strong returns and widespread success fuels
continuous improvement. Kaizens and breakthroughs, leadership and empowerment, the
quality process and business objectives all get
integrated
Level Six
The company is receiving accolades from
outside. The company becomes lean, fast and
capable. They are consistent in their approach,
whenever and what ever they do.
Postwar Japan
Limited natural resources
Reduced production capacity
Strategy for developing international
trade based on quality and efficient
production
Assistance from U.S. occupation
forces
Recognition of Demings contribu
2. Streamlined Flow
Where appropriate, a demand-based
flow or "pull" production strategy is
adopted, using kanbans and demand
flow techniques, to produce to order
rather than to stock.
3. Quick Changeover
Quick changeover methods are
employed to increase equipment
availability and respond quickly and
economically to changing schedules
and customer needs.
5. Empowered Teams
Employees are multi-skilled members
of motivated, capable work groups
with clear roles, responsibilities and
performance standards.
6. Cross-Functional Teamwork
There is a high level of teamwork and
coordination between organizational
units and strong internal customersupplier relationships.
7. Associate Involvement
&Commitment
Shop floor employees routinely solve
problems, suggest and implement
improvements and are committed to
world-class performance.
8. Process Reliability
A formalized system is in place to
maximize equipment uptime and
reduce variation in product quality.
Overall Equipment Effectiveness
(OEE) measures are at world-class
levels.
9. Continuous Improvement
Employees are engaged in CI
and/orKaizen Events on a regular
basis. All teams meet to set goals,
solve operating problems and
implement corrective action.
Deming award
Instituted in 1951 by the Union of Japanese Scientists
and Engineers (JUSE) to recognize and appreciate
Demings achievements in SQC.
Organizations tested on CWQC CompanyWide Quality
Control system.
No losers Organizations failing to qualify this year
automatically considered for the next three years.
Winners also eligible for Japan Quality Medal.
CWQC requires involvement of everyone in the company
and their understanding of quality aims to accomplish
business objectives.
Policy
Organization and operations
Collecting and using information
Analysis
Planning for the future
American Quality
Preoccupation with quantity for years
Reliance on inspection (Quality
Control)
Effect of oil embargos in the 1970s
Malcolm Baldrige Award
Presidents Quality Award (PQA)
Six Sigma
Leadership
Strategic planning
Customer and market focus
Information and analysis
Human resource focus
Process management
Business results