QUALITY MANAGEMENT

Course Objectives
 To understand the philosophies related to creating and
managing an effective organization.

 To learn the basic quality concepts needed to develop a

greater understanding of the complexities of quality
management.

 To develop a greater understanding of the eight critical

areas: customers, leadership, strategic planning, human
resources development and management, knowledge and
information management, process management and business
results.
Course Objectives (continued)

 To have knowledge of the practical

application of quality management and
principles, tools and techniques covering the
issues and concerns relevant to achieving
efficiency and global competitiveness
through proper quality management.
 Topics
1. Basic Concepts
a. Definition of Quality
b. Total Quality Management
c. Eight Principles of TQM
d. Dimensions of Quality
e. Areas Responsible for Quality
f. Deming’s Fourteen Points on Quality Management
g. The Old and New Culture of Quality
h. Costs of Quality
i. Scope of TQM Activity
2. Overview of Quality Philosophies
a. Dr. Armand Feigenbaum
b. Dr. Walter Shewhart
c. Dr. William Edwards Deming
d. Dr. Joseph Juran
e. Mr. Philip Crosby
f. Frank and Lilian Gilbreth

3. Key Quality Initiatives

a. Six Sigma
b. Malcolm Baldrige National Quality Award
c. ISO 9000
d. ISO 14000
e. ISO 18001
f. Lean Manufacturing
4. Key Topics Important to Quality Management

a. Quality and Global Competitiveness

b. Quality Management, Ethics and Corporate Social
Responsibility
c. Quality Culture, Changing Hearts, Minds and
Attitudes
d. Customer Satisfaction Measurement
5. Process Improvement Tools and Techniques
a. Pareto Diagram
b. Cause and Effect Diagram
c. Histogram
d. Check Sheet
e. Scatter Diagram
f. Control Charts
g. Quality Function and Deployment
h. Benchmarking
i. Just-In-Time Manufacturing
Dr. Armand V. Feigenbaum

 April 6, 1922 – November 13,

2014
 An American quality control expert
and businessman. He devised the
concept of Total Quality Control
which inspired
Total Quality Management (TQM).
 With a master's degree from the
MIT Sloan School of Management,
and his Ph.D. in Economics from
MIT.
Dr. Armand V. Feigenbaum

 He was Director of Manufacturing Operations at

General Electric (1958–1968), and was later the
President and CEO of General Systems Company of
Pittsfield, Massachusetts, an engineering firm that
helps companies define business operating systems.

 He wrote several books and served as President of the

American Society for Quality (1961–1963). On
November 13, 2014, he died at the age of 92.
Dr. Armand V. Feigenbaum
His contributions to the quality body of knowledge
include:

 "Total quality control is an effective system for

integrating the quality development, quality
maintenance, and quality improvement efforts of the
various groups in an organization."
 The concept of a "hidden" plant—the idea that so
much extra work is performed in correcting mistakes
that there is effectively a hidden plant within any
factory.
Dr. Armand V. Feigenbaum

His contributions to the quality body of knowledge

include:

 Accountability for quality: Because quality is

everybody's job, it may become nobody's job—the
idea that quality must be actively managed and have
visibility at the highest levels of management.

 The concept of quality costs.

Dr. Walter Shewhart

 March 18, 1891 – March 11, 1967

 An American physicist, engineer

and statistician, sometimes known
as the father of
statistical quality control and also
related to the Shewhart cycle. He
was also referred to as the
grandfather of Total Quality
Management.
Dr. Walter Shewhart

 With a Doctorate in physics from the

University of California, Berkeley in 1917.

 He was married.

His contributions:

 Created the PDSA –

Dr. Walter Shewhart

His contributions:

 From the late 1930s onwards, Shewhart's interests

expanded out from industrial quality to wider
concerns in science and statistical inference.
 Formulated the statistical idea of tolerance intervals.
 Shewhart collaborated with Deming that involved
work on productivity during World War II and
Deming's championing of Shewhart's ideas in Japan
from 1950 onwards.
Dr. William Edwards Deming

 October 14, 1900 – December 20,

1993

 An American engineer, statistician,

professor, author, lecturer, and
management consultant. Educated
initially as an electrical engineer and
later specializing in
mathematical physics, he helped
develop the sampling techniques still
used by the U.S. Department of the
Census and the Bureau of Labor
Statistics.
Dr. William Edwards Deming

 He got his PHD in the US in Physics and Math.

 Known as the father of the Japanese post-war

industrial revival and was regarded by many as the
leading quality guru in the United States. He passed on
in 1993.

 His expertise was used during World War II to assist

the United States in its effort to improve the quality of
war materials.
Dr. William Edwards Deming

 Deming championed the work of Walter Shewhart,

including statistical process control.

 Best known for his work in Japan after WWII,

particularly his work with the leaders of Japanese
industry.
• That work began in August 1950 at the Hakone
Convention Center in Tokyo, when Deming
delivered a speech on what he called "Statistical
Product Quality Administration.”
Dr. William Edwards Deming

• Many in Japan credit Deming as one of the

inspirations for what has become known as the
Japanese post-war economic miracle of 1950 to
1960, when Japan rose from the ashes of war on
the road to becoming the second-largest economy
in the world through processes partially influenced
by the ideas Deming taught.

 Best known in the United States for his 14 Points on

Quality Management (Out of the Crisis, by W.
Edwards Deming, preface).
Dr. William Edwards Deming

 President Ronald Reagan awarded him the

National Medal of Technology in 1987. The following
year, the National Academy of Sciences gave Deming
the Distinguished Career in Science award.
Dr. William Edwards Deming

.The "Seven Deadly Diseases" include:

1. Lack of constancy of purpose

2. Emphasis on short-term profits
3. Evaluation by performance, merit rating, or annual review
of performance
4. Mobility of management
5. Running a company on visible figures alone
6. Excessive medical costs
7. Excessive costs of warranty, fueled by lawyers who work
for contingency fees
Dr. William Edwards Deming

”A Lesser Category of Obstacles" includes:

1. Neglecting long-range planning

2. Relying on technology to solve problems
3. Seeking examples to follow rather than developing
solutions
4. Excuses, such as "our problems are different"
5. The mistaken belief that management skills can be
taught in classes
Dr. William Edwards Deming

6. Reliance on quality control departments rather than

management, supervisors, managers of purchasing,
and production workers

7. Placing blame on workforces who are only

responsible for 15% of mistakes where the system
designed by management is responsible for 85% of
the unintended consequences

8. Relying on quality inspection rather than improving

product quality
Dr. William Edwards Deming

David Salsburg wrote:

"He was known for his kindness to
and consideration for those he worked
with,
for his robust, if very subtle,
humor, and for his interest in music.
He sang in a choir, played drums
and flute, and published several original
pieces of sacred music."
Dr. Joseph Juran

 December 24, 1904 – February

28, 2008
 Was a Romanian-born American
engineer and management
consultant.
 He was an evangelist for quality
and quality management, having
written several books on those
subjects. An electrical engineer.
He became a lawyer but did not
practice.
 Married for 82 years.
Dr. Joseph Juran

 An internationally acclaimed quality guru, similar to

Edwards Deming, strongly influencing Japanese
manufacturing practices.

 Joseph Juran’s belief that “quality does not happen by

accident” gave rise to the quality trilogy – planning,
controlling and improving.

 Great contributions:

• Quality definition
Dr. Joseph Juran

 Great contributions:

• Breakthrough concept (journey from symptom to

cause; journey from cause to remedy)
• Internal customer
• Quality Council
• Cost of quality
• Pareto analysis
• Quality Trilogy
Dr. Joseph Juran

 He learned about the Japanese concept of quality circles

, which he enthusiastically evangelized in the West.
Mr. Philip Crosby

 June 18, 1926 – August 18, 2001

 Was a businessman and author
who contributed to management
theory and quality management
practices.
 He served in the Navy during
World War II and again during the
Korean War.
Mr. Philip Crosby

 In between, he earned a degree from the

Ohio College of Podiatric Medicine.

 Known as The Fun Uncle of the Quality Revolution.

 Married.
Mr. Philip Crosby

 Where Phil Crosby excellence was in finding a

terminology for quality that mere mortals could
understand. (Dr. Deming and Dr. Juran were the great
brains of the quality revolution)

 He popularized the idea of the "cost of poor quality",

that is, figuring out how much it really costs to do things
badly.

 Known for Philosophies of Quality management,

Zero Defects, Quality Management Maturity Grid.
Mr. Philip Crosby
 Crosby's response to the quality crisis was the principle
of "doing it right the first time" (DIRFT). He also
included four major principles:

• The definition of quality is conformance to

requirements (requirements meaning both the product
and the customer's requirements)
• The system of quality is prevention
• The performance standard is zero defects (relative to
requirements)
• The measurement of quality is the
price of nonconformance
Frank and Lilian Gilbreth

 Frank (1868-1924) and

Lillian Gilbreth (1878-1972).

 Frank married Lillian when

he was 36, after he had done
much of his time-and-motion
work and years after he had
set up his own engineering
consulting business.
Frank and Lilian Gilbreth

 Frank died only 20 years later, after the couple had

produced 12 children, who limited the amount of time
they had to work together.
 Lillian lived on for another 48 years after Frank's death,
forging a career in a discipline—management in the
engineering industry—where women were not at the
time taken seriously.
 Often called “the first lady of management”, she was
also the first female member of the American Society of
Mechanical Engineers.
Frank and Lilian Gilbreth

 They followed the pioneering work in time and motion

studies begun by Frederick Winslow Taylor, and on the
other hand, they developed the study of workplace
psychology.

 The couple are best remembered for a book written by

two of their 12 children (Ernestine and Frank junior).
Called “Cheaper by the Dozen” (first published in
1946).
Six Sigma

 Six Sigma (6σ) is a set of techniques and tools for

process improvement. It was introduced by engineer
Bill Smith while working at Motorola in 1986.
Jack Welch made it central to his business strategy at
General Electric in 1995.

 It seeks to improve the quality of the output of a process

by identifying and removing the causes of defects and
minimizing variability in manufacturing and business
processes;
Six Sigma

 It uses a set of quality management methods, mainly

empirical, statistical methods; and,

 Creates a special infrastructure of people within the

organization who are experts in these methods.
Six Sigma
Six Sigma doctrine asserts:

 Continuous efforts to achieve stable and predictable

process results (e.g. by reducing process variation) are
of vital importance to business success.
 Manufacturing and business processes have
characteristics that can be defined, measured, analyzed,
improved, and controlled.
 Achieving sustained quality improvement requires
commitment from the entire organization, particularly
from top-level management.
Six Sigma
Features that set Six Sigma apart from previous quality-
improvement initiatives include:

 A clear focus on achieving measurable and quantifiable

financial returns from any Six Sigma project.
 An increased emphasis on strong and passionate
management leadership and support.
 A clear commitment to making decisions on the basis of
verifiable data and statistical methods, rather than
assumptions and guesswork.
Six Sigma

 The term "six sigma" comes from statistics and is

used in statistical quality control, which evaluates
process capability.

 Originally, it referred to the ability of manufacturing

processes to produce a very high proportion of output
within specification.
Six Sigma

 Processes that operate with "six sigma quality" over

the short term are assumed to produce long-term
defect levels below 3.4
defects per million opportunities (DPMO).

 The 3.4 dpmo is based on a "shift" of +/- 1.5 sigma

created by the psychologist Dr Mikel Harry.
Malcolm Baldrige National Quality Award

 The Malcolm Baldrige National Quality Award

recognizes U.S. organizations in the business, health
care, education, and nonprofit sectors for performance
excellence.

 The Baldrige Award is the only formal recognition of the

performance excellence of both public and private U.S.
organizations given by the President of the United States.
Malcolm Baldrige National Quality Award

 It is administered by the Baldrige Performance

Excellence Program, which is based at and managed by
the National Institute of Standards and Technology
(NIST), an agency of the
U.S. Department of Commerce.

 Up to 18 awards may be given annually across six

eligibility categories—manufacturing, service, small
business, education, health care, and nonprofit.

 As of 2016, 113 awards have been presented to 106

organizations (including seven repeat winners).
Malcolm Baldrige National Quality Award

 The Baldrige Performance Excellence Program and

the associated award were established by the Malcolm
Baldrige National Quality Improvement Act of 1987
(Public Law 100–107).

 The program and award were named for Malcolm

Baldrige, who served as
United States Secretary of Commerce
ISO 9000

The ISO 9000 family of quality management systems

standards is –

 designed to help organizations ensure that they meet

the needs of customers and other stakeholders,
 while meeting statutory and regulatory requirements
related to a product or service.
ISO 9000

 ISO 9000 deals with the fundamentals of quality

management systems, including the seven quality
management principles upon which the family of
standards is based.

 ISO 9001 deals with the requirements that

organizations wishing to meet the standard must
fulfill.
ISO 9000

Third-party certification bodies provide

independent confirmation that organizations meet the
requirements of ISO 9001.

Over one million organizations worldwide are

independently certified, making ISO 9001 one of the
most widely used management tools in the world today.

However, the ISO certification process has been

criticized as being wasteful and not being useful for all
organizations.
 ISO 14000

ISO 14000 is a family of standards related to

environmental management that exists to help
organizations

(a)minimize how their operations (processes, etc.)

negatively affect the environment (i.e. cause adverse
changes to air, water, or land);

(b)comply with applicable laws, regulations, and other

environmentally oriented requirements; and,

(c)continually improve in the above.

 ISO 14000
 ISO 14000 is similar to ISO 9000
quality management in that both pertain to the
process of how a product is produced, rather than to
the product itself.

 As with ISO 9001, certification is performed by third-

party organizations rather than being awarded by ISO
directly.

 The ISO 19011 and ISO 17021 audit standards apply

when audits are being performed.
 ISO 14000

 The requirements of ISO 14001 are an integral part of

the European Union's
Eco-Management and Audit Scheme (EMAS).

 EMAS's structure and material are more demanding,

mainly concerning performance improvement, legal
compliance, and reporting duties.

 The current version of ISO 14001 is ISO 14001:2015,

which was published in September 2015.
OHSAS 18001

 OHSAS 18001, Occupational Health and Safety

Assessment Series, (officially BS OHSAS 18001) is an
internationally applied British Standard for
occupational health and safety management systems.

 It exists to help all kinds of organizations put in place

demonstrably sound occupational health and safety
performance.

 It is a widely recognized and popular occupational

health and safety management system.
OHSAS 18001

 ISO 45001, which is based in part on OHSAS 18001,

was published in March 2018 and is anticipated by the
International Organization for Standardization to
replace OHSAS 18001 over three years.

 BS ISO 45001 was adopted as a replacement for BS

OHSAS 18001 in the United Kingdom in March 2018.
Lean Manufacturing System
Objective of the session :

• Identification of Waste
The Concept • Lean Manufacturing
Principles

The • To apply the tools

Opportunity
• Gain the benefits of Lean
The Potential Manufacturing
 What is one of the primary objectives of a
Company ?

Old School:

Price = Cost + Profit

New School:

Profit = Price – Cost

Profit
Component of Product Cost

 Theoretically,
 + $ Direct Materials
 + $ Direct Labor
 + $ Factory Overhead
 = Product Cost

 However, $ Waste increases the cost of

materials, labor and overhead.
Components of Waste
1. Waiting

 Waiting for a process

to end
 Waiting for work
 Waiting for
information
 “You are in a
queue… we do value
your call… please
hold…”
2. Over production

 Producing items before

they are actually needed

 Making a few more –

just in case, e.g. a few
extra copies, or buying 10
dozen eggs because these
are cheaper by the dozen ;
producing more to cover
for rejection.
3. Rework

 Time and effort

wasted in checking
someone else’s work
 You pay for defects
many times over –
checking, reworking,
appeasing
customers, regaining
customers, etc.
4. Motion (Unnecessary)

 Bending, stretching
and reaching
 Caused by poorly
design work flow
and layout
 Can cause
unnecessary
physical strain and
hazard
5. Over Processing

 Tools and processes

should be “right sized,”
like Baby Bear’s Chair
– not too big, not too
small, but just right!
 Examples include
“doing very routine
calculations by hand
instead of setting up a
spreadsheet
6. Unnecessary Inventories

 Inventory costs a
fortune!
 Running processes
in batches also
creates another
form of inventory
 Cheaper by the
dozen
7. Transportation

 Moving things
around the
workplace
 Transportation
data, forms, etc.
between
departments
Waste in Service Industry

1. Waiting for the next process step

2. Doing unnecessary work not requested
3. Errors in documents
4. Unnecessary motions
5. Process of getting approvals
6. Backlog in work queues
7. Transport of documents
8. Underutilized employees
 What is Lean Manufacturing
Business as Usual

Waste

Lean Manufacturing
Waste
What is Lean Manufacturing

 Lean focuses on eliminating waste in processes

(i.e. the waste of work in progress and inventories).

 Lean is about expanding capacity by reducing

costs and shortening cycle times between order and
ship date.

 Lean is about understanding what is important to

the customer.
 Steps to a Lean Company

Synchronous
Production

Total Quality Synchronization

Management
of systems
Main Focus Activities

Integration of
Suppliers
Autonomation
(Jidoka)
Total Productive Improvement
Maintenance of Work Unit
Just-in-Time
Cell
Manufacturing
Setup Time
Workplace Reduction
Organization Get Rid of Waste
(5S) Standardized
Work
Visual
Management
Time
1 2 3 4
Years
Lean Manufacturing Building Blocks

Goal
Lean Manufacturing

Pull System One-Piece Flow Takt Time

Principles
 The Principles : Pull System

 The design of operations to respond to the ever changing

needs of the customer

 The concept of “pull” in Lean, is to respond to the pull or

demand of the customer

 Kanban, or “instruction card”, is used where product is

manufactured to the “pull” of the market-driven demand.

 Preceding process produced only what is needed by the

next process. This is known as demand driven.
 The Principle : One-Piece Flow

 Also commonly referred to as continuous flow

manufacturing

 Technique used to manufacture components in a cellular

environment

 No part is allowed to go to the next operation until the

previous operation has been completed

 The goal of one-piece flow is to make one part at a time

correctly all the time
Without unplanned interruptions
Without lengthy queue times
Illustration : One-Piece Flow
 The Principle : Takt Time
 The “rhythm of customer demand”
 The maximum time per unit allowed to produce a product in
order to meet demand
 Derived from the German word “Taktzeit” which means
rhythm or beat
 Sets the pace for production
 Cannot be measured with a stop watch but must be
calculated
 Lean Manufacturing Building Blocks

Goal
Lean Manufacturing

Pull System One-Piece Flow Takt Time

Principles

Workplace Organization
Visual Management
Foundation (5S) VSM
VSM
 5S “Workplace Organization”

 5-Step technique towards system and order, and is based on

the original Japanese terms that begin with “S”.
 The 5S philosophy focuses on effective workplace
organization and standardized work procedures.
 Create a robust foundation for future work in the quality
arena
 Abnormal situations are immediately visible and therefore 5S
creates the discipline to maintain things as defined.
5S
 Seiri / Sort:Identify all items needed in the workplace and then clear and remove
any unnecessary ones.

 Seiton / Straighten: Organize the necessary items in the workplace by utilizing

visual tools such as labels, color coding, etc.

 Seiso / Shine: Clean and sweep the workplace.

 Seiketsu / Standardize: Standardize the first 3 steps and make sure that all team
members are trained in how to perform these steps with consistency.

 Shitsuke / Sustain: Share information about the implemented 5S projects with all
the team members of the organization and set up a monitoring system to observe
the maintenance of the organized and standardized workplace.
5S as a way of LIFE ....
 Visual Management
 Also known as “Visual Factory”
 Is a set of tools that allow for accurate and efficient information
conveyance.

 In a Lean Manufacturing environment, time and resources dedicated to

conveying information, although necessary, are a form of waste.

 Is a technique to make the control of an activity or process easier or more

effective through deliberate use of visual signals.

 Graphical displays can be understood at a glance and are therefore more

likely to be effective at communicating the required message.
 Visual Management

There are two types of application in Visual Factory:

(1) A Visual Display relates information and data to employees in

the area. For example, charts showing the monthly revenues of the company or a
graphic depicting a certain type of quality issue that group members should be
aware of.

(2) A Visual Control is intended to actually control or guide the

action of the group members in performing a certain task.
Examples of controls are readily apparent in society: stop signs, handicap parking signs, no
smoking signs, etc.
 VISUAL MANAGEMENT

Visual Display

Visual Control
 Lean Manufacturing Building Blocks

Goal
Lean Manufacturing

Pull System One-Piece Flow Takt Time

Principles

JIT Autonomation Poka-Yoke TPM

Tools
Standardized Value
Cell Manufg SMED
Work Engg

Workplace Organization
Visual Management
Foundation (5S) VSM
VSM
1. Cell Manufacturing
Cellular Manufacturing is an
approach that helps build a variety
of products with as little waste as
possible.

Equipment and workstations are

arranged in a sequence that
supports a smooth flow of
materials and components
through the process, with minimal
transport or delay.
2. Single Minute Exchange of Die (SMED)

 SMED was developed to reduce the fixed cost

associated with setup and changeover of dies.

 Convert Internal Setup to External Setup

 Combine Equipment Functionality

 Involves standardizing the equipment (parts, tooling,
processes) based on commonality between setups to
reduce the number of setup steps and cycle times
SMED in action ....

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 3. Just-in-Time (JIT) Production
 Is an inventory strategy that strives to reduce in-process
inventory and its associated carrying costs

 Literally means “to have the material needed available at

that time needed, at the quantity needed, and with zero
defect”

 Relies on signals between different points in the process

– signals tell production when to make the next part
 Just-in-Time (JIT) Production

Kanban
 Japanese word which means “signal” or
“instruction card”

 Manual pull devices that allow efficient means

to transfer parts from one area to another and
automatically reorder products using
minimum/maximum inventory levels

 Used in “pull system” where product is

manufactured to the pull of market-driven
demand
Kanban System at work ....
4. Autonomation (Jidoka)

 Type of automation that implements some supervisory

functions rather than production functions, e.g. if an
abnormal situation arises, the machine stops and the
worker will stop the production line

 Is also a quality control process that applies the

following four principles
 Detect the abnormality
 Stop production
 Fix or correct the immediate condition
 Investigate the root cause and install a countermeasure
5. Poka-Yoke
 A Japanese term that means “fool-
proofing” or “mistake-proofing”

 Formalized by Shigeo Shingo as part of

Toyota Production System

 Taken from yokero (avoiding) and poka

(inadvertent errors)

 Ensure that proper conditions exist before

actually executing a process step

 Quick feedback 100% of the time

6. Total Productive Maintenance (TPM)

Techniques needed to achieve the Goal of TPM

 Preventive maintenance – preventing breakdowns

 Corrective maintenance – improving or modifying

equipment to prevent breakdowns or to make
maintenance easier

 Maintenance prevention – designing and installing

equipment that needs little or no maintenance

 Breakdown maintenance – repairing after breakdowns

occur
Total Production Maintenance

 Total Productive Maintenance (TPM) is

an initiative for optimizing the
effectiveness of manufacturing
equipment.

 This requires you to not only prevent

breakdowns and defects, but to do so in
ways that are efficient and economical.
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7. Value Engineering

 Value engineering is an approach to productivity

improvement that attempts to increase the value
obtained by a customer of a product by offering
the same level of functionality at a lower cost.

 The team analyses the function and cost of parts

of the design and tries to find any similar
components that could do the same job at lower
cost.
8. Standardized Work

 Each step in the process should be defined and must be

performed repeatedly in the same manner.

 The Standard Work depicts the key process points,

operator procedures, production sequence, safety issues,
and quality checks.

 Clear documentation and fixed work instructions are

needed. These should reflect the direct outcome of
employee examination and involvement.