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TAGUCHILOSSFUNCTIONANDQUALITYMANAGEMENT

TotalQualityManagement
MGT510

VU

C o m m erce

Term

C o m p u ter S ci en ce
E arth S ci en ces

Totalqualitymanagement

QualityManagement

ManufacturingProcesses

TAGUCHILOSSFUNCTIONANDQUALITYMANAGEMENT

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Term

Lesson#08

Concepts

Quality

Totalqualitymanagement

TableofContents:

TotalQualityParadigms

E n g i n eeri n g
English

1. OVERVIEWOFQUALITYMANAGEMENT:PROFESSI

AdoptingaTQphilosophyrequiressignificantchangesinorganizationdesign,workprocesses,and

Fo rm al S ci en ces

culture.Organizationsuseavarietyofapproaches.Someemphasizetheuseofqualitytools,suchas

2. TOTALQUALITYMANAGEMENTANDTOTALORG

Heal th S ci en ces

statisticalprocesscontrolofSixSigma(whichwediscussinthenextchapter),buthavenotmadethe

3. INTEGRATINGPEOPLEANDPERFORMANCETHRO

Man ag em en t

necessaryfundamentalchangesintheirprocessesandculture.Itiseasytofocusontoolsandtechniques

4. FUNDAMENTALSOFTOTALQUALITYANDRATER

butveryhardtounderstandandachievethenecessarychangesinhumanattitudesandbehavior.Others

Marketi n g

haveadoptedabehavioralfocusinwhichtheorganization'speopleareindoctrinatedinacustomer

5. TOTALQUALITYMANAGEMENTANDGLOBALCO

Mas s C o m m

focusedculture,oremphasizeerrorpreventionanddesignquality,butfailtoincorporatecontinuous

6. TOTALQUALITYMANAGEMENTANDPLANNINGF

Natu ral S ci en ces

improvementefforts.Stillothercompaniesfocusonproblemsolvingandcontinuousimprovements,but
failtofocusonwhatistrulyimportanttothecustomer.Althoughthesefirmswillrealizelimited

7. LEADERSINQUALITYREVOLUTIONANDDEFININ

Po l i ti cal S ci en ce

8. TAGUCHILOSSFUNCTIONANDQUALITYMANAGE

improvements,thefullpotentialoftotalqualityislostduetoalackofcompleteunderstandingbythe

S o ci al S ci en ces

9. WTO,SHIFTINGFOCUSOFCORPORATECULTURE

entireorganization.

10. HISTORYOFQUALITYMANAGEMENTPARADIGMS

Singleapproaches,suchasstatisticaltools,behavioralchange,orproblemsolvingcanhavesomeshort

S i teMap
Li n ks

termsuccess,butdonotseemtoworkwellovertime.Totalqualityrequiresacomprehensiveeffortthat

11. DEFININGQUALITY,QUALITYMANAGEMENTAND

encompassesalloftheseapproaches.Atotalchangeinthinking,notanewcollectionoftools,is

12. LEARNINGABOUTQUALITYANDAPPROACHESFR

needed.Totalqualityrequiresasetofguidingprinciples.Suchprincipleshavebeenpromotedbythe

13. TOTALQUALITYMANAGEMENTTHEORIESEDWA

many"qualitygurus"
Deming,Juran,andCrosby,IshikawaandTaguchi.Theirinsightsonmeasuring,

14. DEMINGSPHILOSOPHYAND14POINTSFORMANA

managing,andimprovingqualityhavehadprofoundimpactsoncountlessmanagersandentire

15. DEMINGCYCLEANDQUALITYTRILOGY:JuransTh

corporationsaroundtheworld.

16. JURANANDCROSBYONQUALITYANDQUALITYI
DefiningQualityasLossFunction

17. CROSBYSCONCEPTOFCOSTOFQUALITY:Costof

Taguchi(1986)suggeststhatthereisincreasingloss,fortheproducer,thecustomer,andsociety,

18. COSTSOFQUALITYANDRETURNONQUALITY:To

associatedwithincreasingvariability,ordeviationfromatargetvaluethatreflectsthe"idealstate."This

19. OVERVIEWOFTOTALQUALITYAPPROACHES:The

relationshiptovariabilitycanbeexpressedasalossfunction,asshownforthedistributionofrodsfrom

20. BUSINESSEXCELLENCEMODELS:Excellenceinallfu

grindingoperationC,inFigure12.Thegreaterthevariability,deviationfromtarget,thegreatertheloss

21. DESIGNINGORGANIZATIONSFORQUALITY:Custom

willbe.

22. DEVELOPINGISOQMSFORCERTIFICATION:Process
Traditionalspecifications,usedinthemanufacturingbasedapproachtoquality,defineconformityn

23. ISO9001(2000)QMSMANAGEMENTRESPONSIBILIT

termsofupperandlowerspecificationlimits.Forexamplesteelrodsshouldmeettheengineering
specificationforlengthofsixinches,plusorminus10onehundredthsoaninch(6+or_.10).This

24. ISO9001(2000)QMS(CLAUSE#6)RESOURCESMAN

approachtendstoallowcomplacencyconcerningvariationwithinthatrange.Itassumesthataproduct

25. ISO9001(2000)(CLAUSE#7)PRODUCTREALIZATIO

justbarelymeetingspecifications,justwithinthelimit,isjustas"good"asonrightinthemiddle,but

26. ISO9001(2000)QMS(CLAUSE#7)CONTROLOFPRO

onejustoutsidethelimitis"bad."Taguchiquestionstheseassumptions,andsuggeststhedegreeof
"badness"or"loss"increasesgraduallyasthedeviationfromthetargetvalueincreases.Although

27. ISO9001(2000)QMS(CLAUSE#8)MEASUREMENT,

managersmaychoosetodotherightthing(thetarget),inordertoprovidesuperiorvaluetocustomers

28. QUALITYINSOFTWARESECTORANDMATURITY

throughsuperior"quality,"theymustalsocontinuouslyimprovetheirsystemsandreducevariationto
meetthetarget.20Inthe1980s,MotorolacommittedtoacampaigncalledSixSigma,whichisoneway

29. INSTALLINGANISO9001QMSYSTEM:Implementati

ofsayingreducevariationsomuchthatthechanceofproducingdefectsisdowntoabout3.4defectsper

30. CREATINGBUSINESSEXCELLENCE:ElementsofaTo

million,or99.99966percentperfect.

31. CREATINGQUALITYATSTRATEGIC,TACTICALA

32. BIGQANDSMALLqLEADERSHIPFORQUALITY:T

33. STRATEGICPLANNINGFORQUALITYANDADVAN

34. HOSHINKANRIANDSTRATEGICPOLICYDEPLOYM

35. QUALITYFUNCTIONDEPLOYMENT(QFD)ANDOT

36. BASICSQCIMPROVEMENTTOOLS:TOTALQUALIT

37. HOWQUALITYISIMPLEMENTED?ADIALOGUEW

38. CAUSEANDEFFECTDIAGRAMANDOTHERTOOLS

39. STATISTICALPROCESSCONTROL(SPC)FORCONT
30

40. STATISTICALPROCESSCONTROL.CONTD:Contro

41. BUILDINGQUALITYTHROUGHSPC:TypesofData,D

42. ANINTERVIEWSESSIONWITHOFFICERSOFACM

43. TEAMWORKCULTUREFORTQM:SteeringCommittees
TotalQualityManagement
MGT510

Taguchi'slossfunction:lossincreasesasafunctionofvariation

VU

44. UNDERSTANDINGEMPOWERMENTFORTQANDC

45. CSR,INNOVATION,KNOWLEDGEMANAGEMENTA

Loss($)

Loss($)

duetovariation

duetovariation

Distributionofoutput

Lengthofrodin
5.9
LSL

6.0

6.1

Target

USL

inches

TheDemingManagementPhilosophy
DemingwastrainedasstatisticianandworkedforWesternElectricduringitspioneeringeraof
statisticalqualitycontroldevelopmentinthe1920sand1930s.DuringWorldWarIIhetaughtquality
controlcoursesaspartofthenationaldefenseeffort.AlthoughDemingtaughtmanyengineersinthe
UnitedStates,hewasnotabletoreachuppermanagement.Afterthewar,DemingwasinvitedtoJapan
toteachstatisticalqualitycontrolconcepts.Topmanagerstherewereeagertolearn,andheaddressed
21toexecutiveswhocollectivelyresented80percentofthecounty'scapital.TheyembracedDeming's
messageandtransformedtheirindustries.Bythemid1970s,thequalityofJapaneseproductsexceeded
thatofWesternmanufacturers,andJapanesecompanieshadmadesignificantpenetrationintoWestern
markets.
DemingtaughtqualitytoJapaneseandIshikawawasDeming'sstudent.Americansdidnotlistento
DemingasattentivelyasJapanesedidandtookhisaprophetofquality.

31