Professional Documents
Culture Documents
MANAGEMENT
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SOME DEFINITION OF QUALITY
What is quality?
QUALITY PERSPECTIVES
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What is quality?
OTHER QUALITY PERSPECTIVES
Everyone defines Quality based on their own
perspective of it. Typical responses about the definition
of quality would include:
1. Perfection
2. Consistency
3. Eliminating waste
4. Speed of delivery
5. Compliance with policies and procedures
6. Doing it right the first time
7. Delighting or pleasing customers
8. Total customer satisfaction and service
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INTRODUCTION
What is quality?
Dictionary has many definitions: “Essential
characteristic,” “Superior,” etc.
Some definitions that have gained wide acceptance in
various organizations: “Quality is customer satisfaction,”
“Quality is Fitness for Use.”
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QUALITY LEVELS
At organizational level, we need to ask following
questions:
Which products and services meet your expectations?
Which products and services you need that you are not
currently receiving?
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INTRODUCTION
What is a customer?
Anyone who is impacted by the product or process delivered
by an organization.
External customer: The end user as well as intermediate
processors. Other external customers may not be purchasers
but may have some connection with the product.
Internal customer: Other divisions of the company that receive
the processed product.
What is a product?
The output of the process carried out by the organization. It
may be goods (e.g. automobiles, missile), software (e.g. a
computer code, a report) or service (e.g. banking, insurance)
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INTRODUCTION
How is customer satisfaction achieved?
Two dimensions: Product features and Freedom from
deficiencies.
Product features – Refers to quality of design.
Examples in manufacturing industry: Performance,
Reliability, Durability, Ease of use, Esthetics etc.
Examples in service industry: Accuracy, Timeliness,
Friendliness and courtesy, Knowledge of server etc.
Freedom from deficiencies – Refers to quality of
conformance.
Higher conformance means fewer complaints and
increased customer satisfaction. 19
WHY QUALITY?
Reasons for quality becoming a cardinal priority for
most organizations:
Competition – Today’s market demand high quality
products at low cost. Having `high quality’ reputation is
not enough! Internal cost of maintaining the reputation
should be less.
Changing customer – The new customer is not only
commanding priority based on volume but is more
demanding about the “quality system.”
Changing product mix – The shift from low volume,
high price to high volume, low price have resulted in a
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need to reduce the internal cost of poor quality.
WHY QUALITY?
Product complexity – As systems have become more
complex, the reliability requirements for suppliers of
components have become more stringent.
Higher levels of customer satisfaction – Higher
customers expectations are getting spawned by
increasing competition.
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A QUALITY MANAGEMENT SYSTEM IS…
TQM
SIX SIGMA
ISO 9001
EXAMPLE S OF QUALITY MANAGEMENT
SYSTEM
SIX SIGMA
EXAMPLE S OF QUALITY MANAGEMENT
SYSTEM
ISO9001
ELEMENTS FOR SUCCESS
Management Support
Mission Statement
Proper Planning
Customer and Bottom Line Focus
Measurement
Empowerment
Teamwork/Effective Meetings
Continuous Process Improvement
Dedicated Resources
The Continuous Improvement
Process
Measurement
Empowerment/
Shared Leadership
Measurement
Measurement
Customer
Satisfaction
Business
Results Process
Team Improvement/
Management
Problem
Solving
...
Measurement
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TOTAL QUALITY CONTROL PHILOSOPHY
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TOTAL QUALITY CONTROL PHILOSOPHY
TQM Focuses on identifying quality problem root
causes
Encompasses the entire organization
1. quality goals
2. quality policies; and
3. quality plans
Quality Audit
Experience from firms which have understood and
realized the TQM vision shows that firms ought to
concentrate on short-term plans (one-year plans)
and long-term plans, the latter often being three-
year plans which are revised annually in connection
with an annual quality audit.
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TOTAL QUALITY
MANAGEMENT
Total Quality Control Philosophy
TQM Focuses on identifying quality
problem root causes
Encompasses the entire organization
Involves the technical as well as people
Total Quality Control Philosophy
Customer focus ▪ Goal is to first
Continuous identify and then
improvement meet customer needs
Employee ▪ TQM recognizes that
empowerment a perfectly produced
Use of quality tools product has little
value if it is not what
Product design the customer wants
Process management ▪ Quality is customer
Managing supplier driven.
quality
Total Quality Control Philosophy
Customer focus ▪ A philosophy of never-
Continuous ending improvement
improvement ▪ The Plan–Do–Study–
Employee Act Cycle
empowerment ▪ Benchmarking
Use of quality tools
Product design
Process management
Managing supplier
quality
Total Quality Control Philosophy
Customer focus to seek out quality
Continuous problems and correct
improvement them
Employee Employees are
empowerment rewarded for
Use of quality tools uncovering quality
problems, not
Product design punished
Process management
Managing supplier
quality
Total Quality Control Philosophy
Customer focus External customers
Continuous ◼ those that purchase
improvement the company’s
Employee goods and services
empowerment Internal
Use of quality tools customers
Product design ◼ employees of the
Process management organization who
Managing supplier receive goods or
quality services from
others in the
company
Total Quality Control Philosophy
Customer focus Team Approach
Continuous ◼ Two heads are
improvement better than one
Employee ◼ Using techniques such
empowerment as brainstorming,
discussion, and quality
Use of quality tools control tools, teams
Product design work regularly to
correct problems.
Process management
◼ The contributions of
Managing supplier teams are considered
quality vital to the success of
the company.
Total Quality Control Philosophy
Customer focus Quality Circle
Continuous ◼ A team of volunteer
improvement production employees
and their supervisors
Employee who meet regularly to
empowerment solve quality problems.
Use of quality tools
Product design
Process management
Managing supplier
quality
Total Quality Control Philosophy
Customer focus Employees need to
Continuous identify and correct
improvement quality problems so
Employee they need proper
empowerment training
Use of quality tools They need to
understand how to
Product design assess quality by
Process management using a variety of
Managing supplier quality control tools,
quality how to interpret
findings, and how to
correct problems
Total Quality Control Philosophy
Customer focus Seven Tools of Quality
Continuous Control
improvement
Employee
empowerment
Use of quality tools
Product design
Process management
Managing supplier
quality
Total Quality Control Philosophy
Customer focus Quality Function
Continuous Deployment
improvement ◼ A tool used to translate
the preferences of the
Employee customer into specific
empowerment technical requirements
Use of quality tools
Product design
Process management
Managing supplier
quality
Total Quality Control Philosophy
Customer focus QFD encompasses
Continuous ◼ Customer requirements
improvement ◼ Competitive evaluation
◼ Product characteristics
Employee
◼ Relationship matrix
empowerment
◼ Trade-off matrix
Use of quality tools
◼ Setting Targets
Product design
Process management
Managing supplier
quality
Total Quality Control Philosophy
Customer focus Reliability
Continuous ◼ The probability that a
improvement product, service, or part
will perform as
Employee intended.
empowerment ◼ No product is 100%
Use of quality tools certain to function
properly
Product design ◼ Reliability is a
Process management probability function
Managing supplier dependent on sub-parts
or components
quality
Total Quality Control Philosophy
Customer focus Reliability
Continuous ◼ Reliability of a system is
improvement the product of
component reliabilities
Employee ◼ RS = (R1) (R2)... (Rn)
empowerment RS = reliability of the
Use of quality tools product or system
R1 = reliability of the
Product design components
Process management ◼ Increase reliability by
placing components in
Managing supplier
parallel
quality
Total Quality Control Philosophy
Customer focus Reliability
Continuous ◼ Parallel components
improvement allow system to operate
if one or the other fails
Employee ◼ RS = R1 + (R2*
empowerment Probability of needing
Use of quality tools 2nd component)
Product design
Process management
Managing supplier
quality
Total Quality Control Philosophy
Customer focus Quality products come
Continuous from quality sources
improvement Quality must be built
Employee into the process
empowerment
Use of quality tools
Product design
Process management
Managing supplier
quality
Total Quality Control Philosophy
Customer focus Quality at the source
Continuous ◼ a belief that it is better
improvement to uncover source of
quality problems and
Employee correct it
empowerment TQM extends to
Use of quality tools quality of product
Product design from company’s
Process management suppliers
Managing supplier
quality
Total Quality Control Philosophy
Customer focus An inspection
Continuous performed to check
improvement the quality of
Employee materials that has
empowerment arrived is viewed as a
practice contributing
Use of quality tools to poor quality and
Product design wasted time and cost.
Process management
Managing supplier
quality
Total Quality Control Philosophy
Customer focus TQM extends the
Continuous concept of quality to
improvement suppliers and ensures
Employee that they engage in
empowerment the same quality
practices.
Use of quality tools
Product design
Process management
Managing supplier
quality
Quality Awards and Standards
Philippine Quality Award
Malcolm Baldrige National Quality Award
(MBNQA)
The Deming Prize
ISO 9000 Certification
ISO 14000 Standards
Philippine Quality Award
Sets a standard of excellence to help
Filipino organizations achieve world-class
performance and serves as a “template”
for competitiveness based on the
principles of Total Quality Management
(TQM).
A national quality award comparable with
the Malcolm Baldrige National Quality
Award (MBNQA) of the US and those in
Europe and Asia.
Malcolm Baldrige National Quality
Award (MBNQA)
Award named after the former Secretary
of Commerce – Regan Administration
Intended to reward and stimulate quality
initiatives
Given to no more that two companies in
each of three categories; manufacturing,
service, and small business
Past winners; Motorola Corp., Xerox,
FedEx, 3M, IBM, Ritz-Carlton
The Deming Prize
Given by the Union of Japanese Scientists
and Engineers since 1951
Named after W. Edwards Deming who
worked to improve Japanese quality after
WWII
Not open to foreign companies until 1984
Florida P & L was first US company winner
ISO 9000 Standards
Certification developed by International
Organization for Standardization
Set of internationally recognized quality
standards
Companies are periodically audited &
certified
ISO 9000 Standards
ISO 9000:2000 QMS
◼ Fundamentals and Standards
Provides the terminology and definitions used in the
standards.
It is the starting point for understanding the system
of standards.
ISO 9001:2000 QMS
◼ Requirements
This is the standard used for the certification of a
firm’s quality management system.
It is used to demonstrate the conformity of quality
management systems to meet customer
requirements.
ISO 9000 Standards
ISO 9004:2000 QMS
◼ Guidelines for Performance
Provides guidelines for establishing a quality
management system.
It focuses not only on meeting customer
requirements but also on improving performance.
More than 40,000 companies have been
certified
ISO 14000 Standards
Focuses on a company’s environmental
responsibility
Why TQM Efforts Fail
Lack of a genuine quality culture
Plan
Do Implement the plan – trial basis
Study
Act
The Plan–Do–Study–Act Cycle
Plan
Do
Study Collect data and evaluate
Act against objectives
The Plan–Do–Study–Act Cycle
Plan
Do Communicate the results from
Study trial
Act If successful, implement new
process
Benchmarking
Studying the business practices of other
companies for purposes of comparison
THE QC TOOLS
Seven Tools of Quality Control
Cause-and-Effect A chart that identifies
Diagrams potential causes of
Flowcharts particular quality
Checklists problems.
Control Charts Cause-and-effect
diagrams are
Scatter Diagrams problem-solving tools
Pareto Analysis commonly used by
Histograms quality control teams.
Seven Tools of Quality Control
Cause-and-Effect
Measurement Human
Specific Machines
causes of
Diagrams
Faulty problems can be
explored through
testing equipment Poor supervision Out of adjustment
Flowcharts
Incorrect specifications
Checklists
Lack of concentration brainstorming.
Tooling problems
Product design
Process management
Managing supplier
quality
TOTAL QUALITY CONTROL PHILOSOPHY
Customer focus to seek out quality
Continuous problems and correct
improvement them
Employee Employees are
Managing supplier
quality
TOTAL QUALITY CONTROL PHILOSOPHY
Customer focus External customers
Continuous those that purchase
improvement the company’s goods
and services
Employee
empowerment Internal customers
employees of the
Use of quality tools
organization who
Product design receive goods or
Process management
services from others in
the company
Managing supplier
quality
TOTAL QUALITY CONTROL PHILOSOPHY
Customer focus Team Approach
Continuous Two heads are better
improvement than one
Using techniques such
Employee
as brainstorming,
empowerment discussion, and quality
Use of quality tools control tools, teams
work regularly to
Product design correct problems.
Process management The contributions of
Managing supplier
teams are considered
vital to the success of
quality the company.
TOTAL QUALITY CONTROL PHILOSOPHY
Customer focus Quality Circle
Continuous A team of volunteer
improvement production employees
and their supervisors
Employee who meet regularly to
empowerment solve quality problems.
Use of quality tools
Product design
Process management
Managing supplier
quality
TOTAL QUALITY CONTROL PHILOSOPHY
Customer focus Employees need to
Continuous identify and correct
improvement quality problems so
they need proper
Employee
training
empowerment
They need to
Use of quality tools
understand how to
Product design assess quality by
Process management using a variety of
Managing supplier quality control tools,
quality how to interpret
findings, and how to
correct problems
TOTAL QUALITY CONTROL PHILOSOPHY
Customer focus Seven Tools of Quality
Continuous Control
improvement
Employee
empowerment
Use of quality tools
Product design
Process management
Managing supplier
quality
TOTAL QUALITY CONTROL PHILOSOPHY
Customer focus Quality Function
Continuous Deployment
improvement A tool used to translate
the preferences of the
Employee customer into specific
empowerment technical requirements
Use of quality tools
Product design
Process management
Managing supplier
quality
TOTAL QUALITY CONTROL PHILOSOPHY
Customer focus QFD encompasses
Continuous Customer requirements
improvement Competitive evaluation
Product characteristics
Employee
Relationship matrix
empowerment
Trade-off matrix
Use of quality tools
Setting Targets
Product design
Process management
Managing supplier
quality
TOTAL QUALITY CONTROL PHILOSOPHY
Customer focus Reliability
Continuous The probability that a
improvement product, service, or part
will perform as
Employee intended.
empowerment No product is 100%
Use of quality tools certain to function
properly
Product design
Reliability is a
Process management probability function
dependent on sub-parts
Managing supplier
or components
quality
TOTAL QUALITY CONTROL PHILOSOPHY
Customer focus Reliability
Continuous Reliability of a system
improvement is the product of
component reliabilities
Employee RS = (R1) (R2)... (Rn)
empowerment RS = reliability of the
Use of quality tools product or system
R1 = reliability of the
Product design components
Process management Increase reliability by
placing components in
Managing supplier
parallel
quality
TOTAL QUALITY CONTROL PHILOSOPHY
Customer focus Reliability
Continuous Parallel components
improvement allow system to operate
if one or the other fails
Employee RS = R1 + (R2*
empowerment Probability of needing
Use of quality tools 2nd component)
Product design
Process management
Managing supplier
quality
TOTAL QUALITY CONTROL PHILOSOPHY
Customer focus Quality products come
Continuous from quality sources
improvement Quality must be built
Product design
Process management
Managing supplier
quality
TOTAL QUALITY CONTROL PHILOSOPHY
Customer focus Quality at the source
Continuous a belief that it is better
improvement to uncover source of
quality problems and
Employee correct it
empowerment TQM extends to
Use of quality tools quality of product
Product design from company’s
Process management
suppliers
Managing supplier
quality
TOTAL QUALITY CONTROL PHILOSOPHY
Customer focus An inspection
Continuous performed to check
improvement the quality of
materials that has
Employee
arrived is viewed as a
empowerment
practice contributing
Use of quality tools
to poor quality and
Product design wasted time and cost.
Process management
Managing supplier
quality
TOTAL QUALITY CONTROL PHILOSOPHY
Customer focus TQM extends the
Continuous concept of quality to
improvement suppliers and ensures
that they engage in
Employee
the same quality
empowerment
practices.
Use of quality tools
Product design
Process management
Managing supplier
quality
History of The Quality
Movement.
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History of The Quality Movement.
As early as the 1950s, Japanese companies
began to see the benefits of emphasizing quality
throughout their organizations and enlisted the
help of an American.
Dr. W. Edwards Deming, who is credited with
giving Japanese companies a massive head
start in the quality movement.
His methods include Statistical Process Control
(SPC) and Problem-Solving Techniques (PST).
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Dr. W. Edward Deming.
105
History of The Quality Movement.
(SPC) & (PST) were very effective in
gaining the necessary momentum to
change the mentality of organizations
needing to produce high quality products
and services.
Deming developed his (14 points) to
communicate to managers how to
increase quality within an organization.
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History of The Quality Movement.
Deming believed that (85 percent) of all quality
problems were the fault of management.
In order to improve, management had to take
the lead and put in place the necessary
resources and systems.
For example, consistent quality in incoming
materials could not be expected when
purchasers (buyers) were not given the
necessary tools to understand quality
requirements of those products and services.
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History of The Quality Movement.
Purchasers (buyers) needed to fully understand
how to assess the quality of all incoming
products and services, understand the quality
requirements, as well as be able to
communicate these requirements to vendors.
In a well managed quality system, purchasers
(buyers) should also be allowed to work closely
with vendors and help them meet or exceed the
required quality requirements.
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History of The Quality Movement.
According to Deming, there were two
different concepts of improvement
process that quality systems needed to
address:
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History of The Quality Movement.
1- Systematic causes are shared by
numerous personnel, machines, or
products.
Systematic causes of error include:
- Poor product / service design
- Materials are not suited for their use.
- Improper bills of lading.
- Poor physical conditions.
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History of The Quality Movement.
2- Special causes are associated with
an individual employees or
equipment.
Special causes of error include:
- lack of skills
- Lack of training.
- Poor lot of incoming materials.
- An equipment out of order.
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- Edwards Deming.
- Common Causes of Errors.
- Special Causes of Errors.
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History of The Quality Movement.
Another influential individual in the
development of quality control was
Joseph M. Juran, who, like Deming, was
working in Japanese organizations
focusing on improving quality.
Juran also established the Juran Institute
in 1979; its goals and objectives were
centered on helping organizations
improve the quality of their products and
services.
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Dr. Joseph M. Juran.
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History of The Quality Movement.
Juran defined quality as “fitness for use”
meaning that the users of products or
services should be able to rely on that
product or service with (100 percent) all
the time without any worry of defects.
If this was true, the product could be
classified as fit for use (Qualified).
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History of The Quality Movement.
Quality of design could be described as
what distinguishes a Yugo from a
Mercedes-Benz and involves the design
concept and specifications.
The quality of a product or service is only
as good as its design and specifications
(intention).
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History of The Quality Movement.
Thus, it is important to include quality
issues in the design process, as well as to
have in mind during the design phase …
The difficulties one might have in
replicating the product or service with the
intended quality level.
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History of The Quality Movement.
Quality of conformance is reflected in the
ability to replicate each aspect of a
product or service with the same quality
level as that intended in the design.
This responsibility is held by individuals
to develop the processes for replication,
the workforce and their training,
supervision, and adherence to test
programs.
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History of The Quality Movement.
Availabilityrefers to freedom from
disruptive problems throughout the
process and is measured by the frequency
or probability of defects.
For example, if a process does not have a
steady flow of electricity and this causes
defective parts, or when an employee
must complete two jobs at once and is
therefore forced to make concessions on
the quality of both products or services.
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History of The Quality Movement.
Safety is described by Juran as
calculating the risk of injury due to
product hazards.
For example, even if the product or
service meets or exceeds all quality
standards and expectations, but there is a
possibility that if it is not used properly it
could injure someone, the product will not
be considered high-quality.
For example auto switched-off heater.
120
History of The Quality Movement.
Field Service use refers to the ability
of the product to reach the end user
(consumer) with the desired level of
quality.
This involves packaging,
transportation, storage and field
service competence, and
promptness.
121
History of The Quality Movement.
Juran also developed a
comprehensive approach to quality
that spanned a product or service’s
entire life cycle.
From design to customer relations
and all the steps in between.
122
History of The Quality Movement.
Juran preached that an organization
should dissect all processes and
procedures from a quality
perspective and analyze for a “fitness
for use.”
Once this is completed, the
organization can begin to make
changes based on the “fitness for
use” model.
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- Joseph M. Juran. - Fitness for use.
- Design & Specifications. - Ability to Replicate.
- Availability. - Safety.
-Field Service. - Fitness for use Model.
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The Rationale Behind TQM.
Why TQM ?
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The Rationale Behind TQM.
Why TQM ?
128
Difinition.
Other Definitions:
“TQM is the management approach
of an organization, centered on
quality, based on the participation of
all its members and aiming at long-
term success through customer
satisfaction, and benefits to all
members of the organization and to
society”
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Elements of TQM.
130
TQM.
Managing the entire organization so that it excels in all dimensions of
products and services that are important to the customer.
131
TQM.
1- Philosophical element.
Customer-driven Quality.
Leadership.
Continuous improvement.
Employee participation.
Quick response.
Design quality.
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TQM.
2- Generic tools.
SPC tools:
- Process flow charts.
- Check sheets.
- Pareto analysis & Histogram.
- Cause, Effect & and prevention.
- Management by fact.
- Partnership development.
133
TQM.
3- Tools of the department.
1- SQC methods:
- Sampling plans.
- Process capability.
- Taguchi methods.
134
TQM.
Tools of the department.
2- Benchmarking:
- P
- T
135
TQM.
Tools of the department.
136
TQM.
Tools of the department.
137
TQM.
Tools of the department.
139
The Seven Tools of Quality.
ISHIKAWA (Q-7).
140
Seven Tools of Quality (Q-7).
Professor Ishikawa proposed seven
elemental (Q-7) tools based on
statistical techniques.
2- Histograms.
4- Pareto diagrams.
5- Stratification analysis.
6- Scatter diagrams.
7- Control charts.
142
1- Check Sheets.
Data-Collection Sheets.
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