TQM – YEAR 4
Total Quality Management
Yearly investments of
< $250,000 will create little improvement Yearly investments above
$750,000 pushes into diminishing returns
Investments of >
$1,000,000 in a year produces no absolutely additional benefits
Investing more than
$2,000,000 in the same initiative over 2- 3 year period creates little or no additional improvement
These initiatives improve business procedures, resulting in improved efficiencies and cost structures
CPI (Continuous Process Improvement) Systems
-Reduces Material cost and to a lesser degree Labor costs
Vendor/JIT (Just in Time [Inventory]) - Reduces
Material costs and Administrative overhead
QIT (Quality Initiative Training) - Reduces Labor costs
Channel Support Systems Increases the effectiveness of the Sales Budget, and therefore demand
Concurrent Engineering - Reduces R&D cycle time, the time needed to move products on the Perceptual Map and to change MTBF specifications.
A process is a series of progressive and interdependent steps by which an end is attained. Continuous Process Improvement (CPI) is a strategic approach for developing a culture of continuous improvement in the areas of:
reliability process cycle times costs in terms of less total resource consumption quality, and productivity.
Deployed effectively, it increases quality and productivity, while reducing waste and cycle time. Just in Time Inventory
Just-in-Time inventory system is designed to ensure that materials or supplies arrive at a facility just when they are needed so that storage and holding costs are minimized.
The Just-in-Time system requires considerable cooperation between the supplier and the customer.
The customer must specify what will be needed, when, and in what amounts.
The supplier must be sure that the right supplies arrive at the agreed-on time and location.
Leaders of quality initiatives (project managers, managers, and senior leaders) develop useful and relevant knowledge and skills to ensure that company resources and efforts are utilized in the most effective manner.
Leaders gain useful and skill based learning in these core quality leadership areas:
Leading Teams Through Quality Initiatives
Quality Philosophies and Approaches and Lessons
Learned at Other Firms
Customer Needs and Expectations
Quality Improvement Management Systems
Ethical Decision Making
Support system to facilitate information sharing that increases productivity and profitability, untangling the web that once blocked the transfer of information.
Predictive modeling. Determine how to market the right product to the right person at the right price and the right time. Customer, product and business line profitability.
Identify the customer, product, organization and business line profitability bottom line.
Product development and creation. Determine what products will sell; define the distinctive product characteristics and pricing.
Target marketing. Sell the right product to the right person at the right time at the appropriate return.
Sales execution and tracking. Collect information pertaining to who sells what product to whom, when and where. Concurrent Engineering
Concurrent engineering is a business strategy
replaces the traditional product development process with one in which tasks are done in parallel there is an early consideration for every aspect of a product's development process.
Concurrent engineering provides a collaborative, co-operative, collective and simultaneous engineering working environment.
The concurrent engineering approach is based on five key elements:
a process a multidisciplinary team an integrated design model a facility a software infrastructure
These initiatives improve product…