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Quality Management

Quality Management
• What does the term quality mean?

• Quality is the ability of a product or service to consistently meet or exceed customer expectations.

Evolution of Quality Management
• • • • • • 1924 - Statistical process control charts 1930 - Tables for acceptance sampling 1940’s - Statistical sampling techniques 1950’s - Quality assurance/TQC 1960’s - Zero defects 1970’s - Quality assurance in services

Conformance to specifications (requirements). 5. 2. aesthetics) . 3. 4.Customer–Driven Definitions of Quality 1. Support provided by seller (customer services) Psychological impression (image. Value for money Fitness for use.

Three Levels of Quality 1.Organisation level – Meeting external customer requirements 2.Performer level (job level –or task design level) Meeting the requirements of accuracy.. timeliness and cost.Process level – Meeting the needs of internal customers 3. completeness innovation. .

Juran Armand Feignbaum Philip B. Crosby Kaoru Ishikawa Genichi Taguchi .The Quality Gurus • Walter Shewhart – “Father of statistical quality control” • • • • • • W. Edwards Deming Joseph M.

special & common causes of variation Quality is fitness for use. quality circles Taguchi loss function Continuous improvenment Juran Feignbaum Crosby Ishikawa Taguchi Ohno and Shingo Quality .Key Contributors to Quality Management Contributor Known for Deming 14 points. zero defects Cause-and effect diagrams. quality trilogy Quality is a total field Quality is free.

Deming Wheel/Deming Cycle/P–D–C–A Cycle Deming‟s Triangle (3 Axioms) .

Universal breakthrough sequence. Top management commitment b. Joseph Juran (USA) Defined quality as “fitness for use”. Quality triology d. a. .2. Costs of quality c. 10 steps for quality improvement e.

Appraisal cost – Inspection. Internal failure costs – scrap. External failure costs – Customer delivery issues.Costs of Quality 1. Quality control and iii. 3. new product review. customer complaints etc Quality Triology i. rework. Quality planning ii. training etc 2. Prevention costs – Costs of quality planning. audit etc.Quality improvement . downtime 4.

Quality Vaccine/Crosby Triangle. Wrote a book titled “Quality is free” of which 1 million copies sold) Quality Philosophies i. 14 steps for quality improvement vi. Communication.Philip B Crosby (USA): (Management consultant and director of Crosby‟s Quality College. iv. Continuance.Four absolutes of Quality v.6 „C‟s – Comprehension. communication. Commitment. Quality is free ii.operation . Competence. – Integritypolicies. Systems . Goal of zero defects iii. Correction.

Three steps to quality – Quality leadership. SQC and CWQC (Company-Wide Quality Control) . Feigenbaum (USA) a. Quality at the source c. Concept of TQC (Total Quality Control) b. Organisational Commitment. Modern quality technology. d.Armand V.

W. .Q. – Japanese quality strategy.C.Kaoru Ishikawa (Japan) (Japanese Quality Authority – Quality circles – Ishikawa diagram for problem solving – Quality training – Root cause elimination – Total employee involvement – Customer focus – Elimination of inspection – C.

.Genichi Taguchi (Japan) Quality Engineering Taguchi Methods Taguchi‟s quality loss function (L = cd2) [L=Loss–C = Constant d = deviation i.e. x – T] .

Walter Shewhart (USA) : (Statistician at Bell Laboratories) Statistical Quality Control : (a) SPC control charts (b) Acceptance sampling (with Dodge & Romig) .Masaki Imai (Management Consultant of Japan) – (Continuous improvement) Shigeo Shingo (Japan) “Poka Yoke” – means “Fail proofing” or “Fool-proofing” to reduce defects to zero (Handle errors as they occur) Dr.

Quality improvement 11. Kanban (JIT) 10. Automation Discipline in workforce 7. Total quality control 3.Activities Falling Under Kaizen Umbrella 1. Customer orientation 2. Total productive maintenance 9. Co-operation (labour – management relation) 14. Zero defect program 12. Quality improvement teams 13. Discipline in workforce 8. New product development 15. Robotics 4. Quality circles Automation 6. Advanced technology (NC. CNC machines) 5. Productivity improvement .

Seiton – putting things in order – Everything should be in its place and there should be place for everything (good house keeping) 3. Seiri – Straighten-up – Avoid unnecessary materials.Kaizen Movement or Japanese 5 ‘S’ Approach 1. Seiso – clean-up – Every individual should clean-up his work place everyday after the work. Seiketsu – (Personal cleanliness) – Healthy body – healthy mind. Shitsuke (discipline) – Every worker & manager has to follow rules and procedures in the work place. 5. documents etc. machinery. . tools. 2. 4.

Muda (Waste) 2.3 ‘MU’s Check List (of Kaizen) 1. Muri (Strain) 3. Mura (Discrepancy) .

feel.how well product/service conforms to customer’s expectations • Reliability . smell. taste • Special Features .Dimensions of Quality • Performance .extra characteristics • Conformance .main characteristics of the product/service • Aesthetics .consistency of performance .appearance.

reputation) • Serviceability .indirect evaluation of quality (e.g.Dimensions of Quality (Cont’d) • Durability .service after sale .useful life of the product/service • Perceived Quality .

handling. call when ready Cellular phone. Special features Gauge/control placement Location. Aesthetics 3. Competency. fit & finish Ride. soft touch (Service) Auto Repair All work done. CD Computer diagnostics player . Performance (Product) Automobile Everything works.Examples of Quality Dimensions Dimension 1. at agreed price Friendliness. courtesy. quickness Clean work/waiting area 2. grade of materials used Interior design.

Examples of Quality Dimensions (Cont’d) Dimension (Product) Automobile 5. Perceived quality 8. Reliability Infrequency of breakdowns (Service) Auto Repair Work done correctly. resistance to rust & corrosion Top-rated car 7. Durability Useful life in miles. ready when promised Work holds up over time Award-winning service department 6. Serviceability Handling of complaints and/or Handling of complaints requests for information .

Service Quality • • • • • • • Convenience Reliability Responsiveness Time Assurance Courtesy Tangibles .

Examples of Service Quality Table 9. Reliability 3. Time 5. personnel neat? . Tangibles Were the facilities clean.4 Dimension 1. Assurance 6. Responsiveness 4. Courtesy Examples Was the service center conveniently located? Was the problem fixed? Were customer service personnel willing and able to answer questions? How long did the customer wait? Did the customer service personnel seem knowledgeable about the repair? Were customer service personnel and the cashierfriendly and courteous? 7. Convenience 2.

Assurance ..Reliability .. SERVQUAL How does one measure ‘service quality’? Parasuraman et al pioneered a measuring scale called SERVQUAL. inspire trust from customers . appearance of people ..Tangibles . • Servqual has five dimensions: .perform the promised service ... individualized attention given to customers .physical facilities.Empathy .Responsiveness . willingness & promptness in helping customers .

Challenges with Service Quality • • • • Customer expectations often change Different customers have different expectations Each customer contact is a “moment of truth” Customer participation can affect perception of quality • Fail-safing must be designed into the system .

Quality Function Deployment (QFD) • QFD is incorporation of ‘customer’s voice’ into the design of the product / service • Building a ‘House of Quality’ as per the customer’s requirements. .

The Consequences of Poor Quality • • • • Loss of business Liability Productivity Costs .

Costs of Quality • Failure Costs . • Internal Failure Costs – Costs incurred to fix problems that are detected before the product/service is delivered to the customer. . • External Failure Costs – All costs incurred to fix problems that are detected after the product/service is delivered to the customer.costs incurred by defective parts/products or faulty services.

and quality improvement costs to prevent defects from occurring • Prevention Costs – .Costs of Quality (continued) • Appraisal Costs – Costs of activities designed to ensure quality or uncover defects All TQ training. process control. customer assessment. TQ planning.

.Ethics and Quality • Substandard work – Defective products – Substandard service – Poor designs – Shoddy workmanship – Substandard parts and materials Having knowledge of this and failing to correct and report it in a timely manner is unethical.

Quality Awards Baldrige Award Deming Prize .

0 Information and Analysis (85 points) • 5.0 Business Results (450 points) .Malcolm Baldrige National Quality Award • 1.0 Leadership (125 points) • 2.0 Process Management (85 points) • 7.0 Human Resource Focus (85 points) • 6.0 Customer and Market Focus (85 points) • 4.0 Strategic Planning (85 points) • 3.

Benefits of Baldrige Competition
• • • • Financial success Winners share their knowledge The process motivates employees The process provides a well-designed quality system • The process requires obtaining data • The process provides feedback

European Quality Award
• Prizes intended to identify role models
– Leadership – Customer focus – Corporate social responsibility – People development and involvement – Results orientation

The Deming Prize
• Honoring W. Edwards Deming

• Japan’s highly coveted award
• Main focus on statistical quality control

Quality Certification • ISO 9000 – Set of international standards on quality management and quality assurance. critical to international business • ISO 14000 – A set of international standards for assessing a company’s environmental performance .

ISO 9000 Quality Management Principles • • • • • • • • Customer focus Leadership People involvement Process approach A systems approach to management Continual improvement Factual approach to decision making Mutually beneficial supplier relationships .

ISO 14000 • ISO 14000 .A set of international standards for assessing a company’s environmental performance • Standards in three major areas – Management systems – Operations – Environmental systems .

effluents. and other waste .ISO 14000 • Management systems – Systems development and integration of environmental responsibilities into business planning • Operations – Consumption of natural resources and energy • Environmental systems – Measuring. assessing and managing emissions.

Total Quality Management A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction. T Q M .

Keep track of results 5.Find out what the customer wants 2.Design processes that facilitates doing the job right the first time 4.Extend these concepts to suppliers .Design a product or service that meets or exceeds customer wants 3.The TQM Approach 1.

Continual improvement 2. Champion 9. Suppliers . Employee empowerment 4. Knowledge of tools 7. Quality at the source 10. Team approach 5. Supplier quality 8. Decisions based on facts 6.Elements of TQM 1. Competitive benchmarking 3.

. • Kaizen: Japanese word for continuous improvement.Continuous Improvement • Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs.

.Quality at the Source The philosophy of making each worker responsible for the quality of his or her work.

and increasing customer satisfaction. . reducing costs.4 defects per million • Conceptually – Program designed to reduce defects – Requires the use of certain tools and techniques Six sigma: A business process for improving quality.Six Sigma • Statistically – Having no more than 3.

537 66.SIX SIGMA • What do various Sigma levels mean? Sigma level 1 2 3 4 5 6 Defects per Million opportunities 6.90.807 6.08.210 233 3.000 3.4 .

Six Sigma Programs • Six Sigma programs – Improve quality – Save time – Cut costs • Employed in – Design – Production – Service – Inventory management – Delivery .

Six Sigma Management • • • • Providing strong leadership Defining performance metrics Selecting projects likely to succeed Selecting and training appropriate people .

Six Sigma Technical • • • • Improving process performance Reducing variation Utilizing statistical models Designing a structured improvement strategy .

Six Sigma Team • • • • • Top management Program champions Master “black belts” “Black belts” “Green belts” .

and Control (DMAIC) • Developed by General Electric as a means of focusing effort on quality using a methodological approach • Overall focus of the methodology is to understand and achieve what the customer wants • A 6-sigma program seeks to reduce the variation in the processes that lead to these defects • DMAIC consists of five steps…. Improve.Six Sigma Quality: DMAIC Cycle • Define. . Measure. Analyze.

Measure (M) Customers and their priorities Process and its performance 3.9-53 Six Sigma Quality: DMAIC Cycle (Continued) 1. Control (C) Maintain quality . Define (D) 2. Analyze (A) 4. Improve (I) Causes of defects Remove causes of defects 5.

Obstacles to Implementing TQM • Lack of: – Company-wide definition of quality – Strategic plan for change – Customer focus – Real employee empowerment – Strong motivation – Time to devote to quality initiatives – Leadership .

Obstacles to Implementing TQM • • • • Poor inter-organizational communication View of quality as a “quick fix” Emphasis on short-term financial results Internal political and “turf” wars .

Failure to carefully plan a program . Programs may not be linked to strategies 3. Quality-related decisions may not be tied to market performance 4. Blind pursuit of TQM programs 2.Criticisms of TQM 1.

stores. Design processes – product design (or service design) and design of production/delivery processes that create and deliver products 2. control and improvement of key business process. Process design (conversion processes) 3. Supplier processes/partnering process (vendor development) . Support processes (purchase.Process Management Process management involves design. maintenance. quality control. marketing. finance etc) 4. 4 category of business processes are: 1.

The Process Improvement Cycle Figure.3 Select a process Document Study/document Evaluate Implement the Improved process Seek ways to Improve it Design an Improved process . 9.

Process Improvement • Process Improvement: A systematic approach to improving a process • Process mapping • Analyze the process • Redesign the process .

What is being done? Why is this necessary? Where is it being done? When is it done? Who is doing it? How is it being done? How much does it cost now? .5 W 2 H Approach to Process Improvement 1. 2. 4. 3. 5. 6. 7.

Basic Quality Tools • • • • • • • • Flowcharts Check sheets Histograms Pareto Charts Scatter diagrams Control charts Cause-and-effect diagrams Run charts .

Check Sheet Billing Errors Wrong Account Monday Wrong Amount A/R Errors Wrong Account Wrong Amount .

Number of defects Off Smeared Missing Loose Other center print label .Pareto Analysis 80% of the problems may be attributed to 20% of the causes.

11 1020 1010 1000 UCL 990 980 970 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 LCL .Control Chart Figure 9.

12 Methods Cause Cause Cause Materials Cause Cause Cause Environment Cause Cause Cause Cause Effect Cause Cause People Equipment .Cause-and-Effect Diagram Figure 9.

Ishikawa Diagrams .

Tracking Improvements Figure 9-18 UCL UCL UCL LCL LCL Process centered Process not centered and stable and not stable LCL Additional improvements made to the process .

Failure Mode and Effect Analysis (FMEA) is a structured approach to identify. prioritize. and evaluate risk of possible failures at each stage in the process Design of Experiments (DOE) a statistical test to determine cause-and-effect relationships between process variables and output Poka-Yoke includes Checklists Special tooling that prevents workers from making errors . estimate.

Methods for Generating Ideas • Brainstorming • Quality circles • Interviewing • Benchmarking • 5W2H .

. • Quality Circle is a philosophy of human resource development.QUALITY CIRCLES (QC) • Workers’ direct involvement in solving problems • A QC has 3-15 volunteers’ group (circle) meeting regularly in order to identify. analyze and search for solutions to work-related problems and the ways of implementing solutions.

Quality Circles • Team approach – List reduction – Balance sheet – Paired comparisons .

Strategic benchmarking .  3 Types of Benchmarking 1. Performance benchmarking 2. determining how the best-in-class achieve those performance levels and using the information as a basis for the company‟s targets. Process benchmarking 3.Bench marking :  Measuring a company‟s performance against that of best-in-class companies. strategies and implementation.

Benchmarking Process • Identify a critical process that needs improving • Identify an organization that excels in this process • Contact that organization • Analyze the data • Improve the critical process .

• Questions .