You are on page 1of 57

Session 1 Objectives

• To understand why organizations feel the


need to change their ways of managing
and doing things.

• To determine the causes and


consequences of unquality

• To identify the conditions of success and


the causes of failures of an attempt to
introduce change in an organization,
such as the total quality approach.

Session 1 – The Total Quality Approach

• The concept of quality extends beyond


product quality
• Everyone in the organization is involved
in the quality improvement process.
• Top management demonstrate strong
involvement and leadership.
• Emphasis on attaining and surpassing
customer satisfaction.
• External partners participate.

Principles of Quality
Instructor: Peter Churchill

1
Session 1 – Why do TQM Efforts Fail?

• 80% failure rate.


• Viewed as a philosophy rather than a
practical approach.
• Knowing - doing gap.
• Failure to meet five conditions
– Top Management willing and capable of
changing
– Accurate definition of quality and total quality.
– Knowing how to implement total quality.
– Knowing how to achieve total quality.
– Knowing how to maintain total quality.

Session 1 – The Importance of Quality

• What is driving quality initiatives


– Global competition
– Economic recessions
– High Canadian Dollar
• Quality = improved ROI

Principles of Quality
Instructor: Peter Churchill

2
Session 1 – The Cost of Un-quality

• Poor quality costs estimated at 5% - 20%


- ????

• Chain reaction effect.

• Overquality

• Examples of Unquality and overquality?

Session 2
Redefining Quality & Total Quality

• What is the difference between total


quality and quality?

• Experts cannot agree.

• Many define based on product quality


and customer complaints

• Different definition depending on function

• Ultimately the customers view of quality


over rides others.
– Needs, unquality, overquality

P19-26
6

Principles of Quality
Instructor: Peter Churchill

3
Session 2
Defining Product Quality

• Suitability for intended use


• Functional or Non-Functional
• Main Function and Secondary Function
– Durability
– Reliability
– Availability for use
– Uniformity
– Maintainability
– Dependability (reliable and maintainable)
– Interchangeability
– Safety

P26-28
7

Session 2
Intrinsic & Extrinsic Quality

• Intrinsic characteristics
– Suitability, durability, reliability, uniformity etc.

• Extrinsic quality
– Perceived quality

• Student examples of Intrinsic & Extrinsic

P29

Principles of Quality
Instructor: Peter Churchill

4
Session 2
QVALITY
• Quality – product quality
• Volume – delivery in required
qty,size,etc.
• Administration – systems and
procedures to facilitate all customer
experiences.
• Location – suitable to the customer.
• Interrelationships – treat customer well..
• Image – good corporate citizen,
reputation, etc.
• Timely delivery
• Yield – maximum value for money
• QVALITY – customer focused,
measurable,
• Who defines value??

Session 2
Delighting the Customer

• ACE – Above Customer Expectations

• Offering goods or services that the


customer needs but doesn’t expect.
– Examples??

• Mass production to mass customization


– Unlimited choices

• Do not confuse ACE with Overquality

P39-40

10

Principles of Quality
Instructor: Peter Churchill

5
Session 2
TQ Triad

• Shareholders
– Quality return on investment

• Employees
– Quality of life

• Customers
– QVALITY, Delight

• Discuss the impact on total quality if


TRIAD imbalanced

P41

11

Session 3
TQM – an Extraversive Approach
OBJECTIVES

• To differentiate between quality control,


quality assurance, and quality
management.

• To introduce introversive and


extraversive management concepts.

• To provide an understanding of the TQM


concept and components.

12

Principles of Quality
Instructor: Peter Churchill

6
Session 3
Traditional Management and Total
Quality

• TQM foundation of Japans economic


success
• Majority of techniques and concepts
developed in the US
• When used in North America techniques
produced less than satisfactory results.
• Why have Western companies failed?
– They don’t know what TQM is all about?
– Class examples

P49

13

Session 3
From QC to TQM
• Quality Control
– Quality limited to product or service
– Quality is a technical function – quality staff
are responsible for quality
– Quality cops or watchdogs trying to catch the
guilty
– After the fact.
• Total Quality Management
– Participatory management and teamwork
– Individuals responsible for their own QC
– Quality department supports and assists other
departments
– Satisfy the needs of the TQ Triad
– Collaboration in Supply Chain
• Total quality is achieved through TQM,
practiced everywhere, by everyone, at all
times.

P52
14

Principles of Quality
Instructor: Peter Churchill

7
Session 3
TQM
• Quality does not happen by chance
– It has to be managed like other aspects of the
business.
– TQM includes all activities required to achieve
desired quality, on time, at best possible price.
• Planning – defining quality and means of
achieving it.
• Organization – administrative structure,
systems, resources
• Direction – human aspects of
management.
• QC – to detect errors or defects
• QA – preventative activities
– Ensure planning, organization, direction
carried out efficiently
– Verifying activities are being carried out by
auditing systems, procedures, and products

P55 15

Session 3
TQM
• Clear distinction required between
QM,QA, QC
• Quality Management – required quality
can be attained.
• TQM – total quality can be achieved and
maintained
• TQM must balance and satisfy the needs
of the three stakeholders.

P56

16

Principles of Quality
Instructor: Peter Churchill

8
Session 3
Defining TQM

• TQM is based on a management


philosophy
– Profit oriented, customer focused, people
centered, partner assisted, environmentally
conscious
• Three Dimensions
– Human Aspect
• Most important
• Has to start at top and go down to every worker
• Objective to start and maintain a TQ process
– Logical Aspect
• Customer defined
• Total quality defined and managed
• Continually improved Business Processes
• Everyone must be convinced it will work.
• Everyone is a link in the total quality chain
– Technology & Systems
• methodologies, tools, techniques
• BPR, SPC, ISO
P60 17

Session 3
PDCA
• Plan – review current performance,
gather data on key problems, devise
potential solutions
• Do – Implement the planned solution
(pilot)
• Check – Measure the results
• Act – Based on pilot, refine and expand

18

Principles of Quality
Instructor: Peter Churchill

9
Session 3
DMAIC–Six Sigma PDCA

19
The SIX SIGMA WAY, Pande,Neuman,Cavanagh

Session 4 – Implementing TQM


Objectives

• To Learn a step-by-step process to


implement TQM

• To learn how to evaluate the TQM


implementation process.

• To learn how to take corrective actions


during the implementation process.

20

Principles of Quality
Instructor: Peter Churchill

10
Session 4 – Implementing TQM
Pitfalls to Avoid

10 Essential Conditions
1. Top Management
– Will to implement
– Conviction that TQM is critical to company
success
– Personal commitment to C.I.

2. Concrete, measurable long term vision of TQ


beyond goods and services to TQ Triad

3. CEO has personal responsibility for TQ – visibly


practice and reinforce TQ

4. CEO & Top Mgt. must share conviction that


teamwork and participation from everyone is
required

5. All people in company, shareholders, and


customers – must be mobilized, sensitized, and
educated in the necessity of TQM

P122

21

Session 4 – Implementing TQM


Pitfalls to Avoid

6. People must receive appropriate training

7. People must receive reinforcement


– Formal recognition from management and peers
– Awards or rewards
– Periodic gatherings to celebrate success

8. Open and frank communication on the part of


management, and appropriate dissemination of
information to employees

9. Upstream and downstream partners must be


educated to benefit of TQM for their own good
as well a for your companies.

10. Customers and stockholders must be educated


about the necessity and usefulness of long term
TQM for their benefit.

22

Principles of Quality
Instructor: Peter Churchill

11
Session 4 – Implementing TQM
Program for Implementing

Prerequisites to TQM Implementation

1. Sensitizing and Familiarizing top management


– Remember how important management is in
implementation
– CEO attitude directly related to success.
2. Create a TQM Steering Committee
– Generally members from senior management
– Purpose to create a focus on TQM
– Prevent TQM from getting lost in the other day to
day management issues.
3. Appointing a TQ Coordinator
– Reports to and remains in contact with CEO
– TQ coordinators responsible for finding and
involving people within company to help in
various stages of implementation.
4. Mobilization Campaign
– Convey urgency and imminence of action
– Everyone in company galvanized into action
– Rouse personal needs to do something
– Demystify and popularize TQM concepts 23
P127

Session 4 – Implementing TQM


Program for Implementing
Preparing for Start Up
5. Initiating a TQ Diagnosis
– External – shareholders, customers, etc.
– Internal – people and processes
– Identify actual and potential customers (internal
and external)
– Define total quality
• As expressed by customer
• As compared to industry (benchmarking)
• As compared to competitor performance
– Evaluation of people and processes
– Devising diagnostic tools
6. Establish a Training Program
– Managers – to apply a new mgt style
– All employees to learn teamwork and applying
new tools and techniques
7. Organizing for Total Quality
– Develop formal structure
– People organized into TQ teams

P133 24

Principles of Quality
Instructor: Peter Churchill

12
Session 4 – Implementing TQM
Program for Implementing
Starting the Process

8. The Launch
– 75% of success change in attitude, 25%
procedures and techniques
– Gradual implementation – initial small project in
each area.
– Fine tune carried out during implementation
9. Monitoring and Evaluating Start-up
– Start-up must be carefully monitored
– Don’t get caught up in mechanics
– Halt process if more training required
– Reinforce motivation for participants
– Gradually introduce into all departments
10. Setting up Continuous Improvement Processes
– Reinforcement fuels continuous progress
– Emphasizes pride in a job well done
– Must be constant and unending from all levels of
the organization.

25

Session 5 CI & Re-engineering


Objectives
• Defining continuous improvement

• Defining Re-engineering (Innovation)

• Defining the different levels of re-


engineering

26

Principles of Quality
Instructor: Peter Churchill

13
Session 5 CI & Re-engineering
TQ or Business Re-engineering?

• Re-engineering is not necessarily TQ


– Many Non – TQ companies have gone
through re-engineering
• Traditional view of CI is steady
methodical improvements
– Applies to existing work processes.
– Non-linear improvement
– Law of diminishing return
• Traditional view of BR is major radical
change.
– Not always associated with TQ
– Abandoning existing processes and
replacing with new processes.
• More realistic view of TQ
– Involves improvement in General
– Kaizen
– Includes both CI and BR

P71-74

27

Session 5 CI & Re-engineering


TQ Oriented Re-engineering
• Traditional organizations consist of
functional silos.
– Throw it over the fence mentality.
• Re-engineering focuses on complete
processes as they weave through
different functions.
– Many BR projects focused on cost-cutting
only.
• TQ Oriented Re-engineering
– All processes linked to enhancing
profitability through fulfillment of customer
needs.
• 85% or BR initiatives have failed to
deliver expected results
– Not linked to customer satisfaction or
profitability.
– Culture of organization not changed to
match processes.

P74-76

28

Principles of Quality
Instructor: Peter Churchill

14
Session 5 CI & Re-engineering
Levels of Re-engineering

• Work Process Re-engineering


– Activities through which a major function is
achieved
• Processing an order, hiring an employee etc.
• Business Process Re-engineering
– All the activities that directly or indirectly
contribute towards satisfying needs of
customers while generating ROI
– All the work processes of the company
• Business Re-engineering
– Deals with all aspects of running the
business
– Management style, organizational structure,
business philosophy & strategies etc.

P76

29

Session 5 CI & Re-engineering


Anatomy of a Business Process
A business process is a collection of interrelated
work tasks, initiated in response to an event,
that achieves a specific result for the customer
of the process.

• Characteristics
– Measurable, might be automated, different
levels, must have customers.

• Process Enablers
– Workflow design
– Technology
– Motivation and Measurement
– Human Resources
– Policies and Rules
– Facilities

P76

30

Principles of Quality
Instructor: Peter Churchill

15
Session 5 CI & Re-engineering
Details of the Mainstream Process

• Mainstream process consists of:


– Product quality cycle / process
– A1 cycle (admin and customer
interrelationships
• Product Quality Cycle

31

Session 5 CI & Re-engineering


Details of the Mainstream Process

During each phase of every stage the following


objectives are targeted.

• Phase 1
– Specifications = Need, the product developed
will meet the needs for which it was designed
• Phase 2
– Qualification of workforce, equipment, and
suppliers
• Phase 3
– Product = specification, product conforms to
spec.
• Phase 4
– Product = needs, suitable for intended use.

P84

32

Principles of Quality
Instructor: Peter Churchill

16
Session 5 CI & Re-engineering
Details of the Mainstream Process

Causes of Unquality

P86

33

Session 5 CI & Re-engineering


A-1Cycle

• Customer Satisfaction also includes:


– administrative procedures imposed on customer
– Interrelationships of customers with company,
staff, and representatives

P87

34

Principles of Quality
Instructor: Peter Churchill

17
Session 5 CI & Re-engineering
Shareholder & People Satisfaction

• Finance Processes
– Shareholder oriented
– Objective to optimize returns
– Financial policies
– Measured in ROI, dividends, ROE
• People Management
– Employees more than a resource that can
be used such as financial and physical
resources
– Process must help to achieve a quality of
life for people within and outside work
• Integration of Product Quality, A1,
Financial, and People Mgt. processes
that allow achievement and
maintenance of TQ

P88

35

Session 5 CI & Re-engineering

36

Principles of Quality
Instructor: Peter Churchill

18
Session 6 TQM Practices
OBJECTIVES

• To familiarize participants with


management practices that can be
applied to achieve and maintain total
quality.

• To show where these techniques can


be applied

• To learn how to apply some problem-


solving techniques

37

Session 6 TQM Practices


• TQM and Technology
– TQM practices (the “how”) for achieving and maintaining TQ.
• TQ achieved and maintained by improving
performance.
– Problems must be identified and solved
• In Extraversive companies problems are any reason
for dissatisfaction of shareholders or customers.
• Cause and Consequence or Effect

P345-348

38

Principles of Quality
Instructor: Peter Churchill

19
Session 6 TQM Practices

TQM Practices
• Identifying customers needs (QVALITY) and
evaluating their satisfaction
• Policy Development
• Benchmarking
• Cross functional teams
• Quality function deployment
– Translate customers requirements into company
terms.
• Failure Mode and Effect Analysis
– Identify all possible failures that could occur in
product life
– Types of failures, probability of occurrence,
degree of severity
• Poka-Yoka concept
– Engineering in safeguards to reduce or eliminate
human error.
• Concurrent Engineering
• Horizontal organization
• SPC
• ABC / ABM

P353
39

Session 6 TQM Practices

40

Principles of Quality
Instructor: Peter Churchill

20
Session 6 TQM Practices

Problem diagnosis tools


– Brainstorming
– Nominal Group Technique
– Pareto Diagram and Analysis
– Ishikawa’s Cause and Effect
Diagram
– Five Why’s
– Flowcharting
– Surveys, focus groups
– Control Charts
– Scatter Diagrams

41

Session 6 TQM Practices

42

Principles of Quality
Instructor: Peter Churchill

21
Session 7 TQ in Services
OBJECTIVES

• To understand the similarities and


differences between manufacturing and
service

• How to define quality for a service

• How to apply TQM in a service


environment

43

Session 7 TQ in Services

Categorizing Services
• Internal Services
• External Services
• Main Services
– Central Activity – reason for existence
• Ancillary services
– Support main service

Un-quality in Services
• Why is there more unquality in services
than goods??
• Harder to define or measure.
• Customers tolerant attitude
• Has much changed since the text was
written? (1996)

44

Principles of Quality
Instructor: Peter Churchill

22
Session 7 TQ in Services
Characteristics of Quality in Services

• Is the objective of a service any


different than a product?
– Must satisfy TQ Triad
– Must meet QVALITY
– Customers must be delighted

• What is different
– Services not always tangible
– Cannot be stocked
– Cannot be inspected or repaired before
delivery
– Service quality harder to precisely specify
and measure

45

Session 7 TQ in Services
Product Quality Cycle in Services

• Services and Products must meet the


customers needs and intended use.
• Can be functional or non-functional
• Can be intrinsic or extrinsic

46

Principles of Quality
Instructor: Peter Churchill

23
Session 9
Human Aspect of TQ

Objectives

• To understand the importance of the


human aspects in the implementation
and practice of total quality concepts
and techniques.

• To familiarize the participants with the


necessity and means of mobilizing the
people in the organization

• To present the advantage of teamwork


and skill based pay.

47

Session 9
Human Aspect of TQ

• Are people the most important Asset in


a company?
– They are the company
• To achieve TQ you have to modify
behaviors.
• Logically prove why TQ will benefit
them.
• Must provide the Skills & Knowledge
• Motivating People for TQ
– People will produce TQ to satisfy
themselves (WIIFM)
– Must be clear link between TQ and needs of
people.
– Maslow’s hierarchy of needs impact TQ

P158

48

Principles of Quality
Instructor: Peter Churchill

24
Session 9
Human Aspects of TQ

Pre-requisites for Launching Motivational


Programs
• Make sure problem a human problem - not
machine, process etc.

STRENGTHS

49

Session 9
Human Aspect of TQ

Participative Management
• Move from authoritarian – consultative
– participative.
• Principles
– Generates motivation
– Teamwork
– The team as a decision making unit
– Requires proper coordination
– Collaboration between all levels
– Relationships of trust vs authority
– Free circulation of information
– Self control vs mgt by domination
– Individual responsible for aligned specific
objectives.

P 165

50

Principles of Quality
Instructor: Peter Churchill

25
Session 9
Human Aspect of TQ

Total Quality Teams


• Teamwork essential to TQ Approach
– Continuous Improvement Teams
– Reengineering teams
– Mandatory participation

• Teamwork can fail


– Lack of management support or
involvement
– Used only to solve specific problems
– Used as a stop gap to achieve short term
financial gains

• Teams for TQ or Re-engineering


– 4-12 members
– All work documented
– TQ Improvement – typically functional
– Re-engineering – typically cross functional

P 166 -169

51

Session 9
Human Aspect of TQ

Team Spirit in TQ
• Must be customer focused
• Must have a common cause / objective
• How many companies can generate common
cause without a crisis?

Building Teams
• Employees must learn how to work as a team
• Collaboration and Participation a must
• Focused tasks and deliverables
• Copes with disagreement – does not avoid
conflict
– Avoids Group Think
• Decision by Consensus
• Extremely difficult for people without team
experience.

P 174

52

Principles of Quality
Instructor: Peter Churchill

26
Session 9
Human Aspect of TQ

Mobilization & Reinforcement

53

Session 9
Human Aspect of TQ

• Skill Based Pay


– Vertical – upstream or downstream
knowledge
– Horizontal – diverse skills of similar difficulty
– Specialized
– Comparison Chart – P180

• Training Programs Leading to TQ


– Philosophy
– Techniques
– Awareness
– Familiarization
– All employees participate

P 179

54

Principles of Quality
Instructor: Peter Churchill

27
Session 9
Human Aspect of TQ

Gallup Q12 - Engagement


1. Do I know what is expected of me at
work?
2. Do I have the materials and equipment
I need to do my work right?
3. Do I have the opportunity to do what I
do best every day?
4. In the last seven days, have I received
recognition or praise for doing good
work?
5. Does my supervisor, or someone at
work, seem to care about me as a
person?
6. Is there someone at work who
encourages my development?

55

Session 9
Human Aspect of TQ

Gallup Q12 - Engagement


7. At work, do my opinions count?
8. Does the mission / purpose of my
company make me feel my job is
important?
9. Are my co-workers committed to doing
quality work?
10. Do I have a best friend at work?
11. In the last six months, has someone at
work talked to me about my progress?
12. This last year, have I had opportunities
at work to learn and grow?

56

Principles of Quality
Instructor: Peter Churchill

28
Session 10
Planning For TQ

Objectives

• To understand the process


that preceded total quality
planning.
• To understand the total
quality planning process
• To get acquainted with, and
apply, some TQM planning
techniques.

57

Session 10
Planning For TQ

• Must take into consideration the triad!!


• Vision – what the company wants to be
• Values – the guidelines for running the
business
• Mission – transforming the vision into
explicit and practical terms:
– Customers
– Products or Services
– Markets
– Concern for survival / profitability
– Philosophy
– Self concept
– Concern for Public Image
– Concern for Employees
• Culture – comprised of VVM – evolves
and changes.

58

Principles of Quality
Instructor: Peter Churchill

29
Session 10
Launching the Planning Process

• Aims at materializing (short and long


term) Vision, Mission, Values

1. Diagnosis
2. Objectives
3. Strategy
4. Plan of Action

59

Session 10
Total Quality Diagnosis – Where are We?

• Measuring the degree of satisfaction of


owner / shareholders
• Measuring degree of satisfaction /
dissatisfaction of customers – actual
and potential
• Measuring the degree of satisfaction of
employees
• Assessing the effectiveness of the
companies systems, processes,
equipment etc.
• Evaluating upstream and downstream
relationships
• Measure degree of caring for
environmental issues related to
business

60

Principles of Quality
Instructor: Peter Churchill

30
Session 10
Total Quality Diagnosis – Where are We?

• Defining The Customer & Satisfaction


– Actual and Potential
– Distributors, wholesalers, retailers external
partners and not the real customer.
– Determine needs of customer – QVALITY
and ACE
– Measure past performance – develop some
key indicators.
– Compare your performance to competitors
and industry.
• Diagnosis must examine all links of the
Product Cycle and the A1 cycle.
• Diagnosis helps identify where and how
much improvement is needed.

61

Session 10
Total Quality Objectives – Where Do We
Want to Go?
• Benchmarking
– Measuring your performance against best in
class companies
– Determining how the BIC achieves their
performance levels
– Using the information as a basis for you own
targets, strategies, implementation.
• Focusing
– You cannot do everything at once!
– Choose 1 – 3 characteristics to chase
– Do not totally neglect the others
• Backtracking
– Very similar to reverse engineering
– Look outward at what the customer /
shareholder wants and work backwards
identifying the wrong turns.

62

Principles of Quality
Instructor: Peter Churchill

31
Session 10
Total Quality Objectives – Where Do We
Want to Go?
Internal Customers or Internal Partners?
• Many people in company do not have
direct contact with end customer
• The internal customer concept can
work against teamwork.
– One works for a customer vs a team works
in partnership
• Internal Partner a better approach
– Stresses the importance of collaboration,
and working towards a common goal.

63

Session 10
Total Quality Objectives – The Strategy

How Do We Achieve the Desired Objectives

• Identifies the means to achieve the


objectives in each of the six areas.
• Must be coordinated throughout the
company.

Action Planning – How do you Implement?


• Puts the strategy to work
– Identifies specific activities to be undertaken
– Who is responsible
– Time limits
– The budget
– Methods and procedures
– Control and evaluation

64

Principles of Quality
Instructor: Peter Churchill

32
Session 11
Organizing for Total Quality

Objectives

• To understand the role of a TQ


department

• To get acquainted with new


organizational trends.

• To become familiar with horizontal vs


traditional organizations.

65

Session 11
Organizing for Total Quality

Who is responsible for Quality?

• QC Line or Staff Role?


66

Principles of Quality
Instructor: Peter Churchill

33
Session 11
Organizing for Total Quality

• Responsibility Grid
– Text used Decision Maker, Participation, Consult,
Inform
– RACI - Responsible, Accountable, Consults,
Informs
– RASCI – adds Supervises
• From Quality to TQ
– Traditional organization functionally based,
vertical hierarchy
– TQ companies organize around business
processes
• Sequential / Cascade approach
– Companies operate in a sequential process
– Increase risk of communication distortion
– Very departmentalized
• Parallel Approach
– Work happens concurrently
– All departments in direct contact with customer.
– Utilizes cross functional teams

P217

67

Session 11
Organizing for Total Quality

• Pyramidal Organization
– Based on Cascade approach
– Departmentalized
– Managers for each department
– Multiple org levels
– Communication tends to be vertical
– Functional authority over counterpart line
departments
– No one department in charge of a process
• Matrix Organization
– Product or Project Mgr. Place in charge of
the whole process
– Employees could have two bosses
– Employees typically more loyal to functional
boss vs project boss

P218-20

68

Principles of Quality
Instructor: Peter Churchill

34
Session 11
Organizing for Total Quality

• New Organizational Trends


– Replacement of pyramid shaped org
structure
– Organizing around different components of
the business process
• Use functional teams
• Using cross functional teams
• Diamond Shaped Organizations
– P226 – Customer focused
– Two Pyramids – center line the contact line
• Daisy shaped
– Flat organization
– CEO works with Team Managers
– Team Managers work with teams

P226-27

69

Session 11
Organizing for Total Quality

• Consensus Management
– Decisions made by groups instead of
individuals
– Management by consensus
– Organizations networked teams of educated
knowledge workers.
– Authority shifting from positions of power to
those having the knowledge and ability to
apply

• Consensus is a state of mutual


agreement
– Examples??

70

Principles of Quality
Instructor: Peter Churchill

35
Session 12
Total Quality Assessment and Control

Objectives
• To understand the necessity and
means to assess and control total
quality

• To get acquainted with SPC

• To become familiar with the costs


related to total quality,

P246

71

Session 12
Total Quality Assessment and Control

Total Quality Assessment and Control


System
• Must extend throughout all of companies
functions and Phases
• Create
– Goal of product specs matching customer needs
– Methods of assessment and control
• Opinion polls and surveys
• Meetings between company and customer
• Producibility studies
• Tests, prototypes, simulations
• Verification of design and spec to detect errors
• Checks to verify availability of material,
components etc.
• Preparation
– Verifying the quality
– Qualification of the workforce, equipment,
suppliers
– Assessing process capability
• Assessment and control must extend to all
“moment of truth” areas
72

Principles of Quality
Instructor: Peter Churchill

36
Session 12
Total Quality Assessment and Control

Controlling Product Quality in


Manufacturing
• What should be controlled?
– Essential characteristics must be identified
• Who Controls?
– Operators, suppliers, QC department, customers
representatives.
• How to Control
– Visual inspections, dimensional inspections
– Destructive or Non-destructive testing
– Control by attributes
• Attributes – presence or absence
• Attribute outcome – accept or reject
– Control by variables
• Measurement of one or more characteristics
• Can provide a greater amount of information
• Examples – length of life, output etc.

73

Session 12
Total Quality Assessment and Control

Controlling Product Quality in


Manufacturing
• Where Control is applied
– Examples P 250

• How Often Control is done


– Regular or sporadic
– Only after complaints or incident of error.

• How much to control


– 100% control
– Sampling
– Not at all

• How can this be applied in the service industry?

74

Principles of Quality
Instructor: Peter Churchill

37
Session 12
Total Quality Assessment and Control

The Quality Index


• Just counting defects does not identify the
relative importance of the each defect.
• Some defects are more critical than others.
• Defect weighting must be tailored to specific
product or service. Book example:
– Critical
– Serious
– Major
– Minor
• Each category assigned number of demerits
• Quality index = Total demerits / units produced
– Scale is Demerits per unit

75

Session 12
Total Quality Assessment and Control

Direct and Indirect Costs Related to Total Quality

• Costs related to not satisfying the Q


requirements p264

• Costs related to not satisfying the VALITY


requirements

• Internal failure costs

• Costs common to external and internal failures

• Prevention and Appraisal costs

76

Principles of Quality
Instructor: Peter Churchill

38
Session 12
Total Quality Assessment and Control

The TQ Curve

77

Session 12
Total Quality Assessment and Control

Statistical Process Control

• Method of monitoring process variation


– Identify causes for process variation and resolve
them.
• Allows you to determine “unique” vs “common”
causes of variation.
• Common or non-assignable causes
– Random variation
– Present in processes that are stable, consistent
and repeatable.
– Processes stable and predictable
– Distribution of process remains stable

• Unique or Assignable cause Variation


– Created by non-normal sources
– Result in process distribution changing over time

78

Principles of Quality
Instructor: Peter Churchill

39
Session 12
Total Quality Assessment and Control

Statistical Process Control

• Frequency distributions
– Use example of marks
– Normal or bell curve
– 68% of results will be +/- 1 SD
– 95% of results will be +/- 2 SD
– 99.7% of results will be +/- 3 SD
• Processes with common cause variations will
have a distribution similar to a normal curve.

• GO / NO GO and SPC
– Product falls within specified tolerance range
– Different concept than Acceptable Quality Level!
– SPC – to check if variations of a process are due
to common cause or unique ones.

79

Session 12
Total Quality Assessment and Control

Statistical Process Control

• Control Charts
– Central axis and two control limits
– UCL – upper control limit
– LCL – lower control limit
– Most common charts are mean or x bar and
range.
• Steps in building charts
– Calculate the average value of each sample
– Calculate the range of each sample
– Add up the sample averages and calculate the
average of averages x bar bar
– Calculate the average of all ranges
– Calculate the LCL and UCL for the mean
– Calculate the UCL and LCL for the range
– Create a Mean chart and a range chart with UCL
and LCL’s
– Plot data
– Interpret

80

Principles of Quality
Instructor: Peter Churchill

40
Session 12
Total Quality Assessment and Control

Statistical Process Control

• Process capability
– Capability index
– CP should be greater than 1

ToleranceSpan
CP =
Pr ocessSpread

Process Spread =
6R
d2

81

82

Principles of Quality
Instructor: Peter Churchill

41
83

Sample Measurements Sum Average X Range R


TEST 1 2 3 4 5
1 7.6 7.7 7.6 7.5 7.5
2 7.7 7.8 7.7 7.7 7.8
3 7.7 7.6 7.7 7.8 7.7
4 7.7 7.6 7.7 7.8 7.7
5 7.5 7.8 7.6 7.7 7.7
6 7.6 7.5 7.7 7.9 7.7
7 7.6 7.7 7.7 7.6 7.7
8 7.7 7.8 7.7 7.5 7.7
9 7.6 7.7 7.6 7.5 7.6
10 7.6 7.6 7.6 7.5 7.7
11 7.6 7.6 7.9 7.5 7.5
12 7.9 7.9 7.9 7.8 7.9
13 7.7 7.7 7.9 7.8 7.7
14 7.6 7.6 7.7 7.4 7.8
15 7.5 7.38 7.6 7.7 7.6
16 7.6 7.6 7.6 7.9 7.4

Mean of averages X

Mean of Ranges R

84

Principles of Quality
Instructor: Peter Churchill

42
85

Session 13
TQ Assurance and Purchasing Mgt.

Objectives

• To understand the basic concepts of


quality assurance

• To examine the role of purchasing in


quality assurance

• To become familiar with total quality


aspects of the supplier / purchaser
relationship

86

Principles of Quality
Instructor: Peter Churchill

43
Session 13
TQ Assurance and Purchasing Mgt.
Quality Assurance – Concept and
Definition
• Setting up a system that can give the customer
the assurance that no poor quality will occur in
design, production, or delivery of the product
• External QA – require you suppliers to set up a
system
• Internal QA – company sets up for own use (or
required by their customer)
• Advantages of one over the other??
• Total Quality Assurance is much more than just
product quality
– Touches on all activities within company and with
upstream and downstream partners
– QA aims to ensure customer get the right
product, on time and at the lease cost
– TQA aims at ensuring customers
• Quality return for investors
• QVALITY and ACE for customers
• Quality of life for employees

P275-6

87

Session 13
TQ Assurance and Purchasing Mgt.
Philosophy behind QA
• No system can act as a 100% guarantee of
quality
• Quality Assurance based on a cooperative
attitude between customer and supplier
– Supplier must be perceived as a responsible
partner.
– Often gets used inappropriately

Quality Assurance System


• Objective to provide proof that an optimal level
of quality is being obtained
• System must be adequate and effective – not
just an off the shelf solution.
• System must be actually used
• Validity of system checked by audits
– System audits – work procedures, ITP, org chart
– Process audits
– Product audits
– Supplier audits

P277-8

88

Principles of Quality
Instructor: Peter Churchill

44
Session 13
TQ Assurance and Purchasing Mgt.

The Role of the QA Department


• Supposed to have both an advisory and
support role
• Three main responsibilities
– Assist in formalizing activities
• Policy development
• Documentation requirements and traceability
– Audits systems in place and evaluates their
effectiveness
– Compiles statistics and produces reports on
all aspects of quality.
• Formal QA system should include:
– P280
• To be a TQA system profitability must
be the underlying objective of the entire
process – drive out waste and deliver
value from the customers perspective.
P280

89

Session 13
TQ Assurance and Purchasing Mgt.

The Quality Manual


• Formally sets out the entire quality
system in relation to companies
products and processes.
– Some companies prepare a quality manual
for each major project.

Quality and Purchasing


• External goods and services range
from 30 – 90% of total sales revenue.
• Suppliers have significant impact on
your quality.
• Most businesses involve suppliers in all
four phases of quality cycle
– Creation, Preparation, Realization,
Maintenance

P282

90

Principles of Quality
Instructor: Peter Churchill

45
Session 13
TQ Assurance and Purchasing Mgt.

Customer Supplier Relationship


• Collaboration and partnerships
• Early participation
• Reduction of supply base

Purchasing Departments
Responsibility for Quality
• Who is responsible for the quality of
good purchased?
– Division of responsibility not always clear
• Technical Quality
– Potential users have exclusive responsibility
– Purchasing dept generally must influence
• Economic Quality
– Purchasing department has responsibility
– Often technical quality issues have an
economic quality impact
P282
91

Session 13
TQ Assurance and Purchasing Mgt.
From Definition of Needs to
Satisfaction

92

Principles of Quality
Instructor: Peter Churchill

46
Session 13
TQ Assurance and Purchasing Mgt.

Supplier Evaluation
• Important element in QA
• Must know what to evaluate, who will
do the evaluation, and when it should
be done.
• Some methods of evaluation
– Examination of products
– Reference checks from other customers
– Financial checks
– Trial batches
– Conditional orders
• Major factors that influence quality are:
– The workforce
– The equipment
– The quality management systems

P288

93

Session 13
TQ Assurance and Purchasing Mgt

Supplier Evaluation
• Before submitting an order the buyer
must clearly identify the form of control
required.
– The characteristics that will be evaluated
– How frequently
– Who is responsible for the controlling
– Where control activities take place
– The quantity to be controlled
• Prior agreement on what actions will be
taken if products are refused:
– Returned to supplier at its own expense
– Scrapped
– Temporarily accepted
– Accepted at discount price
– Accepted but modified at the suppliers
expense

P288

94

Principles of Quality
Instructor: Peter Churchill

47
Session 13
TQ Assurance and Purchasing Mgt.

Standardization Development
• Why standardize?
• Standardization process can be set in
motion by users, producers, or
standards body.
– Existing standards studied
– Gather good understanding of mfg
procedures and materials
– Consult the applicable laws and regulations
• Committee Method
• Canvass Method

• What are the benefits of


standardization?

P288

95

Session 14
TQ And ISO 9000

Objectives

• To get a good understanding


of ISO Standards

• To learn how to implement a


quality system according to
ISO 9000

• To understand the purpose


and process of registration
and certification
96

Principles of Quality
Instructor: Peter Churchill

48
Session 14
Total Quality & ISO9000
Objectives
• To get a good understanding
of ISO Standards
• To understand the steps in
implementing a quality
system according to
ISO9000
• To understand the purpose
and process of registration
and certification

ISO is =

• World wide non-governmental agency


with 90 member countries
• Objective to promote the development
of worldwide standards
– Common thread in all standards is to
remove unnecessary impediments to
international communication, collaboration
and trade.
• 30,000 technical experts world wide
participate
• 8600 ISO standards
– Result of agreement between member
bodies of ISO

1
ISO9000

• ISO formed a technical committee on


Quality Mgt. and Quality Assurance in
1976
• British introduced first QMS standard for
commercial use followed by Canada’s
Z299 series – these were used worldwide.
• ISO 9000 created in 1987 based on these
standards.
• Since inception over 50 countries national
standards are equivalent or identical to ISO
• Standards reviewed and reaffirmed at least
once every five years

ISO9001-2000

• Replaces existing 1994 standards


– 9001,9002,9003 become obsolete
• Deadline for conversion or
recertification Dec 15/2003
• Standard based on Eight Quality Mgt.
Principles
– Customer Focus
– Leadership
– Involvement of People
– Process Approach
– Systems Approach to Management
– Continual Improvement
– Factual approach to decision making
– Mutually beneficial supplier relationships

2
ISO9001-2000
Process Model for
Quality Management
4. Quality Management System
5. Management Responsibility
6. Resource Management
7. Product Realization
8. Measurement, Analysis, and
Improvement

What is different about


9001-2000?
• Focus on Process
• Focus on Customer Satisfaction
– Customer Satisfaction is a
mandatory concept
• Continual Improvement
– Based on continuous improvement
cycle PlanDoCheckAct
• Greater Flexibility in
documentation – organizations
can tailor program to their
business.

3
• New requirements
– Communicate with customers (7.2.3).
– Identify customer requirements (5.2, 7.2.1).
– Meet customer requirements (5.2).
– Monitor and measure customer satisfaction
(8.2.1).
– Meet regulatory requirements (5.1).
– Meet statutory requirements (5.1).
– Support internal communication (5.5.3).
– Provide quality infrastructure (6.3).
– Provide a quality work environment (6.4).
– Evaluate the effectiveness of training (6.2.2).
– Monitor and measure processes (8.2.3).
– Evaluate the suitability of quality management
system (8.4).
– Evaluate the effectiveness of quality
management system (8.4).
– Identify quality management system
improvements (5.1, 8.4).
– Improve quality management system (5.1, 8.5).

ISO Process
Flowchart
Identify your
customer needs
and improve if
necessary

Say what you


do!

Do what you
say

Prove it

Improve it!

4
ISO Documentation

Level 1
Defines Approaches and
Responsibility

Quality
Manual
Level 2
Defines Who, What,
When

Procedures

Level 3
Answers How

Work/Job Instructions

Level 4
Provides a Record

Other Documentation

Memory Jogger 9000/2000 – Goal QPC

10

5
Evaluation &
Registration
• Evaluation
– Self Audits – internally
– Second Party Evaluations – typically by
customers
– Third Party Evaluations – independent
• Compliance
– Organizations will follow the program to
point of compliance but not seek
registration.
• Registration / Certification
– Certification generally applies to product
– Registration - assessment and approval of
quality system
• Assessment and periodic audit of quality
system by third party
• Accreditation
– Accredits people or organizations for
certifying and registering others.
11

Implementing
ISO9000
• Determine why you want to implement
ISO
– Part of a TQ program
– Customer demand
– Open up new markets
• Seek outside help
– Implementation Consultants
– Government subsidies
• Commitment from Management –
Remember the 10 conditions

12

6
Implementing
ISO9000
Organizing for Registration
• Obtain Mgt. Commitment
• Establish a Steering team
– Plan the project
• Train team members
• Begin internal auditing
– Gap Analysis – lots of third party tools
available

13

Implementing
ISO9000
Preparing for Registration
• Document existing processes
– procedures and job/work instructions
• Identify areas needing improvement
• Adopt improved procedures and work
instructions
• Prepare Quality Manual
• Apply to Registrar for Assessment -
$$$$$
• Pre Assessment
• Modify and finalize practices
• Train staff

14

7
Implementing
ISO9000
Registration Audit
• Registrar conducts assessment and
identifies discrepancies
• Resolve discrepancies
• Submit to registrar corrective actions
• Certification awarded

15

Implementing
ISO9000
Maintain and Improve
• Maintain Quality Practices
– Internal Audits, Measurement etc.
• Regular external Audits
• Continuous Improvement

16

8
ISO 9000 and Total
Quality
• Most ISO registered companies are
not Total Quality companies
• ISO is a good first step towards TQ
• ISO9000-2000 comes much closer a
TQ philosophy than previous versions.
• Many companies will be really
challenged living up to the spirit of ISO
9000-2000 when they convert from
earlier versions
• Not all ISO Experts embrace a TQ
philosophy

17

ISO Resources

www.qcbinc.com
ISO Courses, Registration
Services
www.qmi.com
ISO courses, Registration
Services, Handbooks and
Standards– Division of CSA
http://praxiom.com/
Free information, ISO tools &
Books
18