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What is quality?
The common element of the business definitions is that the quality of a product or service refers to the perception of the degree to which the product or service meets the customer's expectations. The business meanings of quality have developed over time. Various interpretations are given below: ISO 9000: "Degree to which a set of inherent characteristics fulfills requirements." The standard defines requirement as need or expectation. Six Sigma: "Number of defects per million opportunities." Genichi Taguchi: a. "Uniformity around a target value." h h " f d l " American Society for Quality: "A subjective term for which each person has his or her own definition. In technical usage, quality can have two meanings: a. The characteristics of a p product or service that bear on its ability to satisfy stated or implied needs; b. A product or y y p ; p service free of deficiencies." Peter Drucker: "Quality in a product or service is not what the supplier puts in. It is what the customer gets out and is willing to pay for." Source: http://en.wikipedia.org/wiki/Quality_%28business%29
Quality • Quality is the ability of a product or service to consistently meet or exceed customer expectations.
A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.
History of quality
In the 1920’s statistical theory began to be applied to quality control, and in 1924 Shewhart made the first sketch of a modern control chart. At that time, Japan’s industrial system was virtually destroyed, and it had a reputation for cheap imitation products and an illiterate workforce. The Japanese recognized these problems and set about solving illit t kf Th J i d th bl d t b t l i them with the help of some notable quality gurus – Juran, Deming and Feigenbaum. By the late 1960’s/early 1970’s Japan’s imports into the USA and Europe increased significantly, due to its cheaper, higher quality products. In 1969 the first international conference on quality control, sponsored by Japan, America and Europe, was held in Tokyo. and Europe was held in Tokyo 1980 Total Quality management is introduced The British Standard (BS) 5750 for quality systems had been published in 1979, and in 1983 the National Quality Campaign was launched, using BS5750 as its main theme. Since then the International Standardisation Organisation (ISO) 9000 has become the internationally recognised standard for quality management systems. internationally recognised standard for quality management systems Source: http://www.businessballs.com/dtiresources/quality_management_history.pdf
Quality and customer expectations
• Quality is also defined as excellence in the product or service that fulfills or exceeds the product or service that fulfills or exceeds the expectations of the customer. • There are 9 dimensions of quality that may be q y y found in products that produce customer‐ satisfaction. • Though quality is an abstract perception it has a Though quality is an abstract perception,it has a quantitative measure‐ Q= (P / E ) , where Q=quality, P= performance(as measured by the Mfgr.), and E = expectations( of the customer).
The 9 Dimensions of Quality
• • • • • • • • • • • Performance Features Conformance ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Reliability Durability Service ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Response‐ of Dealer/ Mfgr. to Customer Aesthetics – of product Reputation‐ of Mfgr /Dealer of Mfgr./Dealer
Cost Service Features
Effects of poor Quality
• • • • • • • • • Low customer satisfaction Low customer satisfaction Low productivity, sales & profit Low morale of workforce ow morale of workforce More re‐work, material & labour costs High inspection costs Delay in shipping l h High repair costs Higher inventory costs Higher inventory costs Greater waste of material
Benefits of Quality
• • • • • • • • • • • Higher customer satisfaction Higher customer satisfaction Reliable products/services Better efficiency of operations More productivity & profit More productivity & profit Better morale of work force Less wastage costs Less Inspection costs Less Inspection costs Improved process More market share Spread of happiness & prosperity Spread of happiness & prosperity Better quality of life for all.
The Quality Gurus
Dr. Walter Shewhart (1891‐1967) ‐developed the Plan, Do, Check, Act (PDCA) cycle ( (known as “Plan‐Do‐Study‐Act” y ‐ Shewart transformation process ‐“Father of statistical quality control”
Dr. Joseph M. Juran developed the quality trilogy – quality planning, quality improvement, and quality control. quality control
Armand V. Feigenbaum ‐ developed the idea of total quality control based on three steps to quality consisting of quality leadership, modern quality technology, quality leadership modern quality technology and an organizational commitment to quality. 10
The Quality Gurus
Dr. W. Edwards Deming ‐developed his complete philosophy of management, which he encapsulated into his hi h h l di hi “fourteen points” and the “seven deadly diseases of management”. ‐ use of control charts, and his theories on , knowledge, psychology and variation. ‐“Deming Cycle”. Dr. Kaoru Ishikawa ‐ developed the Ishikawa diagram and was known for popularizing the seven basic tools of quality and the philosophy of total quality. l d h hl h f l l
The Quality Gurus
Dr. Genichi Taguchi developed the “Taguchi methodology” of robust design, also known as “designing in quality”, which focused on making “d i i i li ” hi h f d ki the design less sensitive to variation in the manufacturing process instead of trying to control manufacturing variation. g
Shigeo Shingo ‐ d l developed l d lean concepts such as Si l Mi t t h Single Minute Exchange of Die (SMED) or reduced set‐up times instead of increased batch sizes as well as Poka‐Yoke (mistake p proofing) to eliminate obvious opportunities for g) pp mistakes. ‐ worked with Taiichi Ohno to refine Just‐In‐Time (JIT) manufacturing
The Quality Gurus
Philip B. Crosby (1926‐ 2001) ‐developed the idea of “quality is free” which asserts that implementing quality improvement pays for itself through the implementing quality improvement pays for itself through the savings from the improvement, increased revenue from greater customer satisfaction, and the improved competitive advantage that results. ‐ His popularized “zero defects” to define the goal of a quality program as the elimination of all defects and not the reduction of defects to an acceptable quality level.
Evolution of Quality Management
• • • • • • 1924 Statistical process control charts 1924 ‐ Statistical process control charts 1930 ‐ Tables for acceptance sampling 1940’s ‐ S i i l 9 0’ Statistical sampling techniques li h i 1950’s ‐ Quality assurance/TQC 1960’s ‐ Zero defects 1970 s Quality assurance in services 1970’s ‐ Quality assurance in services
The term Quality management has a specific meaning within many business sectors. This specific definition, which does not aim to assure 'good quality' by the more general definition (but rather to ensure that an organization or product is consistent). Quality management is focused not only on product/service quality, but also the means to achieve it. Quality management therefore uses quality assurance and control of processes as well as p products to achieve more consistent quality. q y
Quality management Quality planning Identifying which quality standards are relevant and how to confirm to it and how to confirm to it Quality control emphasizes testing of products to uncover defects and reporting to management who make the decision to allow or deny product release. Quality assurance attempts to improve and Quality assurance attempts to improve and stabilize production (and associated processes) to avoid, or at least minimize, issues which led to the defect(s) in the first place.
Deals with techniques for improving quality
Source: Project quality management: why, what and how By Kenneth Rose
Business, customer, product/service Location, government, exports t t etc.
Quality policy Who is in charge? Where we are going? Where we are going? How are we going to get there?
Supplier Component 1 Component 1 Component 2 Component N Quality?
Customer satisfaction Quality?
Which Standard? Quality standards‐ ISO 9000 and others
Statistical Process Control is an analytical decision making tool which allows you to see when a process is working correctly and when it is not. Variation is present in any process, deciding when the variation is natural and when it needs correction is the key to quality control. th k t lit t l Identification and Data gathering Prioritizing Prioritizing Pareto Charts Analysis Of Selected Problem Cause‐and‐Effect or Fishbone Diagram Flowcharting l h Scatter Plots Data Gathering And Initial Charting Check Sheets Histograms Probability Plot Control charts X bar, R charts Xb R h t
Quality assurance, or QA (in use from 1973) for short, is the systematic monitoring and evaluation of the various aspects of a project, service or facility to maximize the probability that minimum standards of quality are being attained by the production process. Failure testing Statistical control Total quality management Total quality management
There are many methods for quality improvement. These cover product improvement, process improvement and people based improvement. In the following list are methods of quality management and techniques that incorporate and drive quality improvement: ISO 9004:2008 — guidelines for performance improvement. ISO 15504‐4: 2005 — information technology — process assessment — Part 4: Guidance on use for process improvement and process capability determination. G id f i t d bilit d t i ti QFD — quality function deployment, also known as the house of quality approach. Kaizen — 改善, Japanese for change for the better; the common English term is continuous improvement. Zero Defect Program — created by NEC Corporation of Japan, based upon statistical Zero Defect Program created by NEC Corporation of Japan based upon statistical process control and one of the inputs for the inventors of Six Sigma. Six Sigma — 6σ, Six Sigma combines established methods such as statistical process control, design of experiments and failure mode and effects analysis (FMEA) in an overall framework.
PDCA — plan, do, check, act cycle for quality control purposes. (Six Sigma's DMAIC method (define, measure, analyze, improve, control) may be viewed as a particular implementation of this.) implementation of this.) Quality circle — a group (people oriented) approach to improvement. Taguchi methods — statistical oriented methods including quality robustness, quality loss function, and target specifications. l f i d ifi i The Toyota Production System — reworked in the west into lean manufacturing. Kansei Engineering — an approach that focuses on capturing customer emotional feedback about products to drive improvement. TQM — total quality management is a management strategy aimed at embedding TQM total quality management is a management strategy aimed at embedding awareness of quality in all organizational processes. First promoted in Japan with the Deming prize which was adopted and adapted in USA as the Malcolm Baldrige National Quality Award and in Europe as the European Foundation for Quality Management award (each with their own variations).
TRIZ — meaning "theory of inventive problem solving“ BPR — business process reengineering, a management approach aiming at clean slate BPR — business process reengineering a management approach aiming at 'clean slate' improvements (That is, ignoring existing practices). OQM — Object‐oriented Quality Management, a model for quality management.
Proponents of each approach have sought to improve them as well as apply them for small, medium and large gains. Simple one is Process Approach, which forms the basis of ISO 9001:2008 Quality Management System standard,
Quality improvement Other quality terms Other quality terms
Just‐inTIme (JIT) A system for producing and delivering the right items at the right time in the right amounts. JIT approaches just‐on‐time when upstream activities occur minutes or seconds h j i h i ii i d before downstream activities, so single‐piece flow is possible. The key elements of JIT are flow, pull, standard work and takt time. Poka Yoke A mistake‐proofing device or procedure to prevent a defect during order taking or manufacture. Kanban A small card attached to boxes of parts that regulates pull in the Toyota Production System by signaling the upstream production and delivery. Quality Function Deployment (QFD) A visual decision making procedure for multi‐skilled project teams which develops a common understanding of the voice of the customer and a consensus on the final common understanding of the voice of the customer and a consensus on the final engineering specifications of the product that has the commitment of the entire team.
Quality management system (QMS)
A quality management system is a set of interrelated or interacting elements that organizations use to direct and control how quality policies are implemented and g q yp p quality objectives are achieved. A process‐based QMS uses a process approach to manage and control how its quality policy is implemented and quality objectives are achieved. li i i l t d d lit bj ti hi d A process‐based QMS is a network of many interrelated and interconnected processes (elements). Each process uses resources to transform inputs into outputs. Since the output of one process becomes the input of another process, processes interact and are interrelated by means of such input‐output relationships. These process interactions create a single process‐based QMS. process interactions create a single process based QMS
Quality – planning, control, assurance, improvement Quality – attitude (to improve) Quality – standards (as per other international companies) such as ISO 9000
What is a standard? Why standards are important? Who develops standards? How standards are developed? How standards are developed? Applicable quality standards.
What is a standard?
A standard can be defined in multiple ways depending on the context in which it is used and developed. According to standards.gov (a portal maintained by the National Institute of Standards and Technology, a Department of Commerce agency) standards are: "common and repeated use of rules, conditions, guidelines or characteristics for products or related processes and production methods, and related management systems practices.“ Therefore, a standard is an agreed, repeatable way of doing something. The British Standard Institution (BSI) group defines a standard as a published document that contains a technical specification or other precise criteria designed to be used consistently as a a technical specification or other precise criteria designed to be used consistently as a rule, guideline, or definition. They also mention the following: “Standards help to make life simpler and to increase the reliability and the effectiveness of many goods and services we use. Standards are created by bringing together the experience and expertise of all interested parties such as the producers, sellers, buyers, users and regulators of a particular material, product, process or service. Standards are generally developed collectively. Committees of manufacturers, users, research generally developed collectively Committees of manufacturers users research organizations, government departments and consumers work together to draw up standards that evolve to meet the demands of society and technology."
What is a standard?
There are standards for almost everything that is done commercially. Standards can be categorized in various ways as mentioned below: The purpose, such as product standards, process standards, service standards. The intended user group, such as company standard, international standard, industry standard, government standards. The manner in which they specify requirements, such as design standards. The manner in which they specify requirements such as design standards Types of standards, such as voluntary standards, consensus standards, mandatory/regulatory standards, de facto standard. References f  Standards, 2010. URL: http://www.standards.gov  BSI, 2010. URL: http://www.bsigroup.com/en/Standards‐and‐Publications/About‐ standards/What‐is‐a‐standard /
Standardization is the process of developing and implementing technical standards. The goals of standardization can be to help with independence of single suppliers (commoditization), compatibility, interoperability, safety, repeatability, or quality.
Some common standards
There are many international standards organizations. The three largest and most well‐established such organizations are:
International Organization for Standardization (ISO) International Organization for Standardization (ISO)
International Electrotechnical Commission (IEC) International Telecommunication Union (ITU) which have each existed for more than 50 years (founded in 1947, 1906, and 1865, respectively) and which are all based in Geneva, Switzerland. These three organizations together comprise the World Standards Cooperation (WSC) alliance. C ti (WSC) lli Other important organizations: American Society for Testing and Materials (ASTM) Institute of Electrical and Electronics Engineers (IEEE) SAE the World Wide Web Consortium (W3C) the World Wide Web Consortium (W3C) American National Standards Institute (ANSI) British Standards Institution (BSI), In India: Bureau of Indian Standards (BIS)
The International Organization for Standardization, (widely known as ISO, is an international standard‐setting body composed of representatives from various national standards organizations. national standards organizations Founded on February 23, 1947, the organization promulgates worldwide proprietary, industrial and commercial standards. It has its headquarters in Geneva, Switzerland. ISO is funded by a combination of: • Organizations for participating in the technical work Organizations for participating in the technical work • Subscriptions from member bodies of different countries • Sale of standards. ISO's main products are the International Standards. ISO also publishes Technical ' d h l d d l bl h h l Reports, Technical Specifications, Publicly Available Specifications, Technical Corrigenda, and Guides. www.iso.org
Policy Development Committees Council Technical Management Board Technical Advisory Groups Technical Committees Technical Committees Technical Committees Technical Committees
What has ISO Accomplished?
• ISO film speed code • Standard format for telephone and banking cards • ISO 9000 which provides a framework for quality management and quality assurance management and quality assurance • ISO 14000 series provides a similar framework for environmental management • Internationally standardized freight containers • Standardized paper sizes. • Automobile control symbols Automobile control symbols • ISO international codes for country names, currencies and languages
The Bureau of Indian Standards (BIS) is the national Standards Body of India, Government of India. The organization was formerly the Indian Standards Institution (ISI). g y ( ) It is established by the Bureau of Indian Standards Act, 1986 which came into effect on 23 December 1986. BIS is a founder member of International Organisation for Standardization (ISO). It represents India in ISO,t he International Electrotechnical Commission, the International Telecommunication Union (ITU) and the World Standards Service Network (WSSN) ISI mark is given by BIS. this is a third party gurantee of quality. BIS does certain checks on the product and provides the ISI mark. BIS also provides other quality check certificates also, like AGMARK, Hallmark etc. also like AGMARK Hallmark etc
How standards are developed?
A standard published by ISO/IEC is the last stage of a long process that commonly starts with the proposal of new work within a committee. Here are some abbreviations used for marking a standard with its status: PWI ‐ Preliminary Work Item NP or NWIP ‐ New Proposal / New Work Item Proposal (e.g., ISO/IEC NP 23007) AWI Approved new Work Item (e.g., ISO/IEC AWI 15444 14) AWI ‐ Approved new Work Item (e g ISO/IEC AWI 15444‐14) WD ‐ Working Draft (e.g., ISO/IEC WD 27032) CD ‐ Committee Draft (e.g., ISO/IEC CD 23000‐5) FCD ‐ Final Committee Draft (e.g., ISO/IEC FCD 23000‐12) DIS ‐ Draft International Standard (e.g., ISO/IEC DIS 14297) f l d d( / ) FDIS ‐ Final Draft International Standard (e.g., ISO/IEC FDIS 27003) PRF ‐ Proof of a new International Standard (e.g., ISO/IEC PRF 18018) IS ‐ International Standard (e.g., ISO/IEC 13818‐1:2007) ( g, / ) Stage 1: Proposal stage, Stage 2: Preparatory stage, Stage 3: Committee stage, Stage 4: Enquiry stage, Stage 5: Approval stage, Stage 6: Publication stage
Management and leadership standards of ISO
ISO standards that provide requirements or give guidance on good management practice are among the best known of ISO's offering. Many, although not all, are modelled on the management system structure of ISO 9001 and ISO 14001. g y Management system Management system refers to what the organization does to manage its processes, or activities, so that its products or services meet the objectives it has set itself, such as: satisfying the customer's quality requirements, complying with regulations, or l h l meeting environmental objectives. Management system standards g y Management system standards provide a model to follow in setting up and operating a management system. This model incorporates the features on which experts in the field have reached a consensus as being the international state of the art. h h d b i th i t ti l t t f th t
Of ISO's management standards , two have achieved truly global status and are now thoroughly integrated with the world economy: y ISO 9001:2008 – Quality management which gives the requirements for quality management systems, is now firmly established as the globally implemented standard i fi l t bli h d th l b ll i l t d t d d for providing assurance about the ability to satisfy quality requirements and to enhance customer satisfaction in supplier‐ customer relationships. ISO 14001:2004 – Environmental management which gives the requirements for environmental management systems, confirms its global relevance for organizations wishing systems confirms its global relevance for organizations wishing to operate in an environmentally sustainable manner.
The ISO 9000 family of standards relates to quality management systems and is designed to help organizations ensure they meet the needs of customers and other stakeholders. ISO 9000: 1987 version ISO 9000:1987 had the same structure as the UK Standard BS 5750, with three 'models' for quality management systems, the selection of which was based on the scope of for quality management systems the selection of which was based on the scope of activities of the organization: ISO 9001:1987 Model for quality assurance in design, development, production, installation, and servicing was for companies and organizations whose activities included the creation of new products. ISO 9002:1987 Model for quality assurance in production, installation, and servicing had ISO 9002:1987 Model for quality assurance in production, installation, and servicing had basically the same material as ISO 9001 but without covering the creation of new products. ISO 9003:1987 Model for quality assurance in final inspection and test covered only the ISO 9003 1987 M d l f lit i fi l i ti dt t d l th final inspection of finished product, with no concern for how the product was produced.
2000 version ISO 9001:2000 combines the three standards 9001, 9002, and 9003 into one, called 9001. Design and development procedures are required only if a company does in fact engage in the creation of new products. The 2000 version sought to make a radical change in thinking by actually placing the concept of process management front and center ( Process management was the monitoring and optimizing of a front and center ("Process management" was the monitoring and optimizing of a company's tasks and activities, instead of just inspecting the final product). The ISO 9004:2009 document gives guidelines for performance improvement over and The ISO 9004:2009 document gives guidelines for performance improvement over and above the basic standard (ISO 9001:2000). This standard provides a measurement framework for improved quality management, similar to and based upon the measurement framework for process assessment.
Key features of ISO 9001
QMS ISO 9001 is based on eight quality management principles which are basically fundamentals to good business practices and help organizations focus on goal orientation, systematic management and continual improvement of performance: • • • • • • • • Customer focus (leads to customer satisfaction & exceed expectations) Leadership (provide direction to organization) Involvement of people (use of full skill/ resources) Process approach (management of activities as process for higher output) System approach to management (management of interrelationship of independent process) Continual improvement (A permanent objective to achieve next set goal) Fact based decision making (decision based on the correct information) Fact based decision‐making (decision based on the correct information) Mutually beneficial supplier relationships (your business partner in your growth)
The above eight principles are structured into the following five major section with reduced documentation requirements with high emphasizes on continual improvement and customer d hh h h l d satisfaction. • Quality management system • Management responsibility g p y • Resource management • Product realization • Measurement, analysis, and improvement
ISO 9000 contents
ISO 9001:2008 Quality management systems — Requirements is a document of approximately 30 pages which is available from the national standards organization in each country. It is supplemented by two other standards, ISO 9000:2005 Quality management systems — Fundamentals and vocabulary and ISO 9004:2009 Managing for the sustained systems Fundamentals and vocabulary and ISO 9004:2009 Managing for the sustained success of an organization — A quality management approach, which do not contain specific requirements and are not used directly in certification. Outline contents for ISO 9001 are as follows: Page iv: Foreword Pages v to vii: Section 0 Intro Pages 1 to 14: Requirements Section 1: Scope Section 1: Scope Section 2: Normative Reference Section 3: Terms and definitions (specific to ISO 9001, not specified in ISO 9000) Pages 2 to 14 132 1 Section 4: Quality Management System l Section 5: Management Responsibility Section 6: Resource Management Section 7: Product Realization Section 8: Measurement, analysis and improvement In effect, users need to address all sections 1 to 8, but only 4 to 8 need implementing within a QMS.
ISO 9000 contents
Contents of ISO 9001 Pages 15 to 22: Tables of Correspondence between ISO 9001 and other standards Page 23: Bibliography The standard specifies six compulsory documents: Control of Documents (4.2.3) ( ) Control of Records (4.2.4) Internal Audits (8.2.2) Control of Nonconforming Product / Service ( ) (8.3) Corrective Action (8.5.2) Preventive Action (8.5.3) In addition to these, ISO 9001:2008 requires a quality policy and Quality Manual q q yp y Q y (which may or may not include the above documents).
Why is ISO 9000 important?
• European Union directive European Union directive
– ISO 9000 certification required by suppliers of “Regulated Products” Regulated Products
• health, safety, and the environment
– EC has strict corporate liability legislation EC has strict corporate liability legislation protecting consumers
• Globalization impact Globalization impact
Who created the standards?
• International Organization for Standardization International Organization for Standardization ‐ Geneva • ISO tech committee TC 176 started in 1979 ISO tech committee ‐ TC 176 started in 1979 • Standards created in 1987
– To eliminate country to country differences – To eliminate terminology confusion – To increase quality awareness
Why adopt ISO 9000?
• To comply with customers who require ISO To comply with customers who require ISO 9000 • To sell in the European Union market To sell in the European Union market • To compete in domestic markets • To improve the quality system • To minimize repetitive auditing by similar and p g y different customers To improve subcontractors performance • To improve subcontractors’ performance
Ten Steps to ISO Registration
10. Registration! 9. Final assessment by registrar 8. Take corrective actions 7. Pre-assessment by registrar 6. Submit quality manual for approval q y pp 5. Perform self-analysis audit 4. 4 Select a third-party registrar and apply third party 3. Develop and implement the quality system 2. S l t th 2 Select the appropriate standard i t t d d 1. Set the registration objective ISO 9000
Six Essential Elements of a Successful Registration Effort
Senior Management Commitment to the Effort Appropriate ISO 9000 Training An Effective Management Review Process Documentation of the Quality System An Effective Internal Auditing System An Effective Corrective Action Process
ISO 14000, WEEE, RoHS
• • ISO 14000 ‐ A set of international standards for assessing a company’s environmental performance Standards in three major areas Standards in three major areas – Management systems • Systems development and integration of environmental responsibilities into business planning responsibilities into business planning – Operations • Consumption of natural resources and energy – Environmental systems Environmental systems • Measuring, assessing and managing emissions, effluents, and other waste The Waste Electrical and Electronic Equipment (WEEE) is a EU directive on The Waste Electrical and Electronic Equipment (WEEE) is a EU directive on recycling regulations becoming effective in Aug 2005. Restriction of Hazardous Substances (RoHS) is another legislation starting in July 1, 2006. It limits the amount of several elements that can be used in products. Dome examples of hazardous elements are lead, mercury, cadmium.
ISO 9001 Design Control and Service
Now IS SO 9000
ISO 9002 Purchasing,Contracting g, g Process control ISO 9003 ISO 9003 Production, inspection, testing ISO 14000 Environmental issues
Total quality management or TQM is an integrative philosophy of management for continuously improving the quality of products and processes. TQM functions on the premise that ‐ the quality of products and processes is the responsibility of everyone who is involved. In other words, TQM capitalizes on the involvement of management, workforce, I th d TQM it li th i l t f t kf suppliers, and even customers, in order to meet or exceed customer expectations. In a TQM effort, all members of an organization participate in improving processes, products, services and the culture in which they work. The methods for implementing this approach come from people such as Philip B. Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa and Joseph M. Juran. W Edwards Deming Armand V Feigenbaum Kaoru Ishikawa and Joseph M Juran
TQM six basic Concepts
1. Management commitment to TQM principles and methods & long term Quality plans for the and methods & long term Quality plans for the Organisation 2. Focus on customers – internal & external Focus on customers internal & external 3. Quality at all levels of the work force. 4. Continuous improvement of the 4 Continuous improvement of the production/business process. 5. Treating suppliers as partners Treating suppliers as partners 6. Establish performance measures for the p processes.
The TQM Approach
• Find out what the customer wants Find out what the customer wants • Design a product or service that meets or exceeds customer wants exceeds customer wants • Design processes that facilitates doing the job right the first time job right the first time
– Pokayoke : fail‐safing : foolproofing
• Keep track of results Keep track of results • Extend these concepts to suppliers
Elements of TQM
• • • • • • • • • Continual improvement: Kaizen Competitive benchmarking Employee empowerment Team approach T h Decisions based on facts g Knowledge of tools Supplier quality Champion Quality at the source: The philosophy of making each
worker responsible for the quality of his or her work.
The TQM Organization
• Quality infused Personnel and Processes.
TM Q U MM LM A L INPUTs I T Y Other Staff
TQ: Transforming an Organization
From Motivation through fear and loyalty Attitude: “It’s their problem” Attitude: “the way we’ve always done it” Decisions based on assumptions/ judgment calls Everything begins and ends with management Crisis management and recovery Choosing participative OR scientific management To Motivation through shared vision Ownership of every problem affecting the customer Continuous improvement Decisions based on data and facts Everything begins and ends with customers Doing it right the first time Choosing scientific AND participative management
TQ: Transforming an Organization
Traditional Approach Continuous improvement
• • • • • • • •
Market‐share focus Individuals Focus on ‘who” and “why” Short‐term focus Status quo focus Product focus Innovation Fire fighting
• • • • • • • •
Customer focus Cross‐functional teams Focus on “what” and “how” Long‐term focus Continuous improvement C i i Process improvement focus Incremental improvements Incremental improvements Problem solving
Total Quality Management
Obstacles to Implementing TQM
• Lack of:
– Company‐wide definition of quality – Strategic plan for change Strategic plan for change
• Resistance to a change
– Customer focus Customer focus – Real employee empowerment
• Red tape Red tape
– Strong motivation – Time to devote to quality initiatives Time to devote to quality initiatives – Leadership
Baldrige Award Baldrige Award Deming Prize
Six Sigma is a business management strategy originally developed by Motorola, USA in 1986. Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization ("Black Belts", "Green Belts", etc.) who are experts in these methods. The term Six Sigma originated from terminology associated with manufacturing, specifically terms associated with statistical modeling of manufacturing processes. A six sigma process is one in which 99.99966% of the products manufactured are statistically expected to be free of defects (3.4 defects per million).
• A business process for improving quality reduce A business process for improving quality, reduce cost and increasing customer satisfaction. • Statistically
– Having no more than 3.4 defects per million
– Program designed to reduce defects – Requires the use of certain tools and techniques q q
• EX: Motorola, GE, TI, Kodak
Six Sigma projects follow two project methodologies inspired by Deming's Plan‐Do‐Check‐Act Cycle. These methodologies, composed of five phases Plan Do Check Act Cycle These methodologies composed of five phases each, bear the acronyms DMAIC and DMADV. DMAIC is used for projects aimed at improving an existing business process. DMADV is used for projects aimed at creating new product or process designs.
Six Sigma Programs
• Six Sigma programs g p g
– Improve quality – Save time – Cut costs
• Employed in
– Design i – Production – Service – Inventory management – Delivery y
Voter Turnout in 50 States ‐ 1980
Normally Distributed Curve
Graph of the normal distribution, which underlies the statistical assumptions of the Six Sigma model. The Greek letter σ (sigma) marks the distance on the horizontal axis between the mean, µ, and the curve's inflection point. The greater this distance, the greater is the spread of values encountered. For the curve shown above, µ = 0 and σ = 1. The upper and lower specification limits (USL, LSL) are at a distance of 6σ from the 1 The upper and lower specification limits (USL LSL) are at a distance of 6σ from the mean.
Calculating the Variance and/or Standard Deviation i i
(X Xi )
(X X )
DPMO = Defects per million opportunities = Defects per million opportunities
List of some six sigma companies 3M Air Canada Amazon.com Bank of America B k fA i Boeing Cognizant Technology Solutions DHL Ford Motor Company General Electric GlaxoSmithKline HCL Technologies HCL Technologies Heinz Co. Honeywell LG Group Lockheed Martin Motorola Mumbai's dabbawalas PepsiCo Samsung Group Siemens AG SKF Toshiba United States Army United States Marine Corps United States Navy U it d St t N Vodafone Whirlpool Wipro Xerox
Quality management tools and methods used in Six Sigma
Six Sigma utilizes many established quality‐management tools that are also used outside of Six Sigma. The following table shows an overview of the main methods used. 5 Whys 5 Whys Analysis of variance ANOVA Axiomatic design Business Process Mapping Cause & effects diagram (also known as fishbone or Ishikawa diagram) Check sheet Chi‐squared test Control chart Correlation Cost‐benefit analysis C tb fit l i Design of experiments Failure mode and effects analysis General linear model Histograms Pareto analysis Pareto chart Pareto chart Pick chart Process capability Quality Function Deployment (QFD) Quantitative marketing research Regression analysis Root cause analysis Run charts Run charts Scatter diagram SIPOC analysis (Suppliers, Inputs, Process, Outputs, Customers) Stratification Taguchi methods Taguchi Loss Function TRIZ Source: http://en.wikipedia.org/wiki/Six_Sigma
Basic Quality Tools
• • • • • • • Flowcharts Check sheets Histograms Pareto Charts Scatter diagrams Control charts Cause‐and‐effect diagrams di • Run charts