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CHAPTER 9 AND 10: MANAGEMENT OF QUALITY & QUALITY CONTROLSuman Niranjan
OUTLINE
Introduction to quality Evolution of quality management Pioneers in modern quality
Insights on quality management Quality certification (reading assignment) Total quality management (TQM)
Six sigma Process Improvement Problem solving Introduction to quality control Inspection 2
INTRODUCTION TO QUALITY What is quality?
It is the ability of a product to consistently meet or exceed the customer requirements
Examples of quality Honda and Toyota are considered to produce
automobiles of very good quality Products of apple are known for their user interface Mark Levinson, Bose, Harmon Kardon etc. are known for
their quality in audio products Dolce & Gabbana, Hugo Boss etc. are known for quality
in premium clothing These companies have clear set goals for quality
Realized the importance of quality Made quality an integral part of product or service Set benchmark for quality in respective areas
3
EVOLUTION OF QUALITY MANAGEMENT All started by Frederick Winslow Taylor, the “Father of
Scientific Management” Emphasis to quality - importance to inspection
Considering quality as early as design of product Connection between – high quality, increased productivity and lower
costs
1924 – 1930 bell telephone laboratories Statistical quality control procedures
End of 1940’s – US Army Sampling techniques for their suppliers
1950’s – Total Quality Control Focus on manufacturing and product design
1960’s – concept of zero defects 1980’s – strategic approach to quality
Preventing mistakes rather than inspecting America automobile manufacturers lost their major market most
market share
4
FOUNDATIONS OF MODERN QUALITY MANAGEMENT
Walter Shewhart “Father of statistical quality control” Developed methods for analyzing output
W. Edwards Deming Joseph M. Juran
Quality control hand book Armand Feignbaum
Total quality control Philip B. Crosby
Zero defects Kaoru Ishikawa Genichi Taguchi
5
KEY CONTRIBUTIONS
Contributor
Deming Juran Feignbaum Crosby Ishikawa Taguchi Ohno and Shingo
Known for
14 points; special & common causes of variation Quality is fitness for use; quality trilogy Quality is a total field Quality is free; zero defects Cause-and effect diagrams; quality circles Taguchi loss function Continuous improvenment
Quality
6
INSIGHTS ON QUALITY MANAGEMENT
Defining quality in operational terms Understanding the costs and benefits of
quality Recognizing the consequences of poor
quality Recognizing the need for ethical behavior
7
DEFINING QUALITY: DIMENSIONS OF QUALITY
Quality has two important dimensions Product Quality Service quality
Product Quality Performance - main characteristics of the
product/service Aesthetics - appearance, feel, smell, taste Special Features - extra characteristics Conformance - how well product/service conforms to
customer’s expectations Reliability - consistency of performance Durability - useful life of the product/service Perceived Quality - indirect evaluation of quality (e.g.
reputation) Serviceability - service after sale
8
DIMENSIONS OF QUALITY
Service Quality
Dimension Examples1. Convenience Was the service center conveniently
located?
2. Reliability Was the problem fixed?
3. Responsiveness Were customer service personnel willing and able to answer questions?
4. Time How long did the customer wait?
5. Assurance Did the customer service personnel seem knowledgeable about the repair?
6. Courtesy Were customer service personnel and the cashier friendly and courteous?
7. Tangibles Were the facilities clean, personnel neat?9
THE DETERMINANTS OF QUALITY
There are four determinants which determine the satisfaction of the product or service Quality of design
A decision made by the designers to include or exclude certain features
Designers must work closely with marketing, operations, and finance
Quality of conformance Does it reflect the intent of the designers?
Ease of use Service after purchase
10
POOR AND GOOD QUALITY
Consequences of poor quality Loss of business Liability Productivity Costs
Benefits of good quality Good reputation Increased market share Great customer loyalty Lower liability costs Reduced production costs Fewer complaints High profits
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COMPARISON OF WARRANTY AND QUALITY
12
RESPONSIBILITY FOR QUALITY Top management
Ultimate responsibility Design
Initiation begins from here Procurement
Good raw material Production/operations
Fixing root cause problems Quality assurance
Analyzing data Packaging and shipping
Making sure the product does not reach the customer in a broken state
Marketing and sales Customer needs
Customer service Learn problems with the existing product
13
COST OF QUALITY
Appraisal cost Costs of activities designed to ensure control
Prevention cost Preventing defects from occurring
Failure cost Cost of a product failure
Internal failures Failures discovered during production
External failure Failures discovered after delivery to customer
Return on quality Investment made on quality control and return on
investment
14
QUALITY AWARD AND QUALITY CERTIFICATION
Page 410 – 415 read on your own
15
TOTAL QUALITY MANAGEMENT (TQM)
What is Total Quality Management (TQM)? It is a philosophy which strives on continuous
improvement of the quality and customer satisfaction
Three key philosophies Continuous improvement – Japanese term
“Kaizen” Involvement of everyone Customer satisfaction
TQM approach: What customers want?
Internal customers (next in line) External customers (final customers)
Design of product that is easy to use
16
TOTAL QUALITY MANAGEMENT (TQM)
Doing the job right the first time “Mistake proof” or “Pokayoke” or “foolproofing”
Always try to improve by keeping track of what “now” and what “next” – look at the results
Other Elements Employee empowerment Decisions based on facts rather than opinion Team approach Knowledge of tools Supplier quality Champion – an expert as a leader Quality at the source – is the work executed
correct Competitive benchmarking
17
EXAMPLE OF COMPETITIVE COMPARISON
18
TOTAL QUALITY MANAGEMENT (TQM)
Six Sigma It is a statistical approach used to improve the
quality, customer satisfaction, reducing defects and costs
No more than 3.4 defects per million opportunities in any process, product, or service
Motorola initiated this concept in the 1980’s, since then there have been many others like GE, Texas Instruments, Eastman Kodak etc.
19
OBSTACLES TO IMPLEMENT 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
Poor inter-organizational communication View of quality as a “quick fix” Emphasis on short-term financial results Internal political and “turf” wars 20
CRITICISMS OF TQM
Blind pursuit of TQM programs Programs may not be linked to strategies Quality-related decisions may not be tied to
market performance Failure to carefully plan a program
21
STEPS IN PROBLEM SOLVING
Problem solving is one of the basic requirements for TQM The approach is to eliminate the root cause of the
problem The Plan-do-study-act (PDSA)
A framework used for problem solving and improvement
Steps Define the problem and establish an improvement goal Define measures and collect data Analyze the problem Generate potential solutions Choose a solution Implement the solution Monitor the solution to see if it accomplishes the goal
22
PDSA CYCLE
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PROCESS IMPROVEMENT
What is process improvement? A systematic approach to improving a process
Increasing customer satisfaction Achieving high quality Reducing waste Increase productivity Reduce processing time
24
BASIC QUALITY TOOLS
Flowcharts Check sheets Histograms Pareto Charts Scatter diagrams Control charts Cause-and-effect diagrams Run charts
25
CHECK SHEET
Billing Errors
Wrong Account
Wrong Amount
A/R Errors
Wrong Account
Wrong Amount
Monday
26
PARETO ANALYSIS
80% of the problems may be
attributed to 20% of the
causes.
80% of the problems may be
attributed to 20% of the
causes.
Smearedprint
Nu
mb
er o
f d
efec
ts
Offcenter
Missinglabel
Loose Other27
CONTROL CHART
970
980
990
1000
1010
1020
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
UCL
LCL
28
CAUSE-AND-EFFECT DIAGRAM
Effect
MaterialsMethods
EquipmentPeople
Environment
Cause
Cause
Cause
Cause
Cause
CauseCause
Cause
CauseCause
Cause
Cause
29
RUN CHART
Time (Hours )
0.440.460.480.5
0.520.540.560.58
1 2 3 4 5 6 7 8 9 10 11 12
Time (Hours)
Dia
met
er
30
TRACKING IMPROVEMENTS
UCL
LCL
LCLLCL
UCLUCL
Process not centeredand not stable
Process centeredand stable
Additional improvementsmade to the process
31
METHODS FOR GENERATING IDEAS
Brainstorming Quality circles Interviewing Benchmarking 5W2H
32
Team approach List reduction Balance sheet Paired comparisons
QUALITY CIRCLES
33
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
BENCHMARKING PROCESS
34
CHAPTER 10 – QUALITY CONTROL
35
INTRODUCTION TO QUALITY CONTROL
What is quality control? Comparing a process with some industry
standard and taking corrective measures Acceptance sampling Statistical process control (SPS) Designing quality into process
Mistake prevention
36
PHASES OF QUALITY ASSURANCE
Acceptancesampling
Processcontrol
Continuousimprovement
Inspection of lotsbefore/afterproduction
Inspection andcorrective
action duringproduction
Quality builtinto theprocess
The leastprogressive
The mostprogressive
37
INSPECTION
Inspection is a appraisal activity that compares goods and services to a standard
How Much/How Often Where/When Centralized vs. On-site
Inputs Transformation Outputs
Acceptancesampling
Processcontrol
Acceptancesampling
38
Co
st
OptimalAmount of Inspection
INSPECTION COSTS
Cost of inspection
Cost of passingdefectives
Total Cost
39
WHERE TO INSPECT IN THE PROCESS
Raw materials and purchased parts
Finished products
Before a costly operation
Before an irreversible process
Before a covering process
40
EXAMPLES OF INSPECTION POINTS
Type ofbusiness
Inspectionpoints
Characteristics
Fast Food CashierCounter areaEating areaBuildingKitchen
AccuracyAppearance, productivityCleanlinessAppearanceHealth regulations
Hotel/motel Parking lotAccountingBuildingMain desk
Safe, well lightedAccuracy, timelinessAppearance, safetyWaiting times
Supermarket CashiersDeliveries
Accuracy, courtesyQuality, quantity
41
CENTRALIZED VERSUS ON-SITE INSPECTION
Centralized Performed off-site in a centralized location Performed in lab Specialized lab Increased time to make decision More favorable test environment More specialized equipment
On-site Quick decisions Avoiding damage or alteration of samples during
transportation Self-inspections 42
VIDEO
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