UNIT 1 QM

QUALITY MANAGEMENTQUALITY MANAGEMENT

UNIT IUNIT I

Meaning of quality

Excellence of a product or service

Fitness for use - Juran (1974)conformance to requirements or specifications –Crosby (1979)

G dGradeDegree of preference

“The quality of a product or service is the fitness ofthat product or service for meeting or exceeding itsintended use as required by the customer”.

Quality Characteristic

A physical or chemical property/element(s) that are used todefine the nature of the product or service (which contributesto fitness for use) is a quality characteristicto fitness for use) is a quality characteristic.

“Elements that define the intended quality level of a product orservice ”service.”

Can be classified as:

Technological/Structural – length, Weight, Strength, dia.,frequency, etc.q y,

Psychological (Sensory) – taste, odour, beauty etc.Time-oriented – Reliability, maintainability, Warranty etc.Ethical – Honesty Integrity etcEthical – Honesty, Integrity etc.

Quality characteristic

Quality characteristic may beQuality characteristic may be

1. Directly measurable - weight, shear strength,y g , g ,Sp. Gravity, length, dia. Etc.

bl d fl k2. Non-measurable - rejections due to flaws, cracks,breakages etc.


Fall in to two broad classes –


Fall in to two broad classes

Variables - Measurable, Expressed on a numerical scale, p

and

Attributes - if classified as either conforming or nonconforming to a stipulated specificationnonconforming to a stipulated specification

Nonconformity and Nonconforming UnitNonconformity and Nonconforming Unit

• A nonconformity is a quality characteristic that does notmeet its stipulated specification.

• ExampleExample

• A nonconforming unit has one or more nonconformitiessuch that the unit is unable to meet the intendedstandards and is unable to function as requiredstandards and is unable to function as required.

• Example

Defect and DefectiveDefect and Defective

• Nonconformity - Defect

and

• Nonconforming Unit - Defective

Quality of serviceQuality of service

• Concept of service:

1. Technical aspect - tangible product

2. Behavioral aspect (difficult to quantify, measure, control)

bl- Intangible component

Quality of serviceService Industries• Education

Quality of service

• Retailing & Distribution• Financial services – banking, insurance• Governmental services (Defense municipal services)• Governmental services (Defense, municipal services)• Personal services (Hotels and Motels)• Transportation (Airlines, railroads, buses)

P bli tiliti ( l d l h )• Public utilities (Electricity, gas and telephone services)• Leisure, recreation, entertainment• Professional and business services like accountancy, y

marketing, law, consulting• Healthcare• Software etc.

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1. Service is intangible - it cannot be easily measured,tested and verified in advance of sales to assurequality

2. Services are perishable (can not be backordered)-time constraint

3. Precise standards like manufacturing can rarely be set

4 It i t d d d i lt l4. It is created and consumed simultaneously or nearsimultaneously.Service Production and Consumption are ofteninseparable i e Customer is in service factoryinseparable i.e. Customer is in service factory.

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6. Services offered can vary from “Producer to Producer” ye.g. outlet to outlet

7 Outcome of Service is as important as process of7. Outcome of Service is as important as process of delivery. assessment of quality is made during the service delivery process.

8. Service Quality is more difficult for customer, to evaluate, than product qualityp q y

9. Customer cannot retain the actual service. The effect of the service can be retainedof the service can be retained.

Service quality Characteristics and measures

1.Human Factors and behavioral characteristics


- No. of customer complaints- No. of complimentary responses

2. Timeliness characteristics- waiting time in bank

h k- Time to check in at airport- waiting time before receiving baggage

Time to hear from an insurance company- Time to hear from an insurance company


3. Service nonconformity characteristic


y- No. of errors per 1000 transactions in banks- No. of billing errors per1000a/c by utility company

4. Facility related characteristicf l- No. of complaints

a) due to an uncomfortable bed in hotel roomb) due to unavailability of a swimming pool in ab) due to unavailability of a swimming pool in a hotelc)Insufficient leg room in an aircraft) g

Quality of Product/ServiceQuality of Product/Service

Three aspects:

Q lit f D iQuality of Design

Quality of ConformanceQuality of Conformance

Quality of performanceQ y p

Quality of Design

“ The product or service must be designed to meet at leastminimally the needs of the consumer”.y

Design should be simplest and least expensive while stillmeeting the customer’s expectations.

Yield strength (customer requirement) = 100kg/cm2Yield strength (customer requirement) = 100kg/cm2

“Tightness of the specifications for manufacture of theTightness of the specifications for manufacture of the product”

Tolerance : ± 0.001 mm and ± 0.01mm

Quality of DesignQuality of Design

Factors controlling Quality of Design

1. Type of customers in the market (consuming habits, prices, choice of design)

2 Intended life Reliability Importance of continuity of2. Intended life, Reliability, Importance of continuity of service

3. Profit policy of the firmp y4. Environmental conditions5. Special requirements of the product

Cost or Value Vs. Designed quality level (Q lit f D i )(Quality of Design)

Quality of Conformance

“ The manufactured product or the service rendered mustmeet the standards selected in the design phase”.

Defect prevention, finding, analysis and rectification

Factors controlling Quality of conformance1. Adequate quality of incoming raw materialq q y g2. Adequate machines, tools and measuring instruments3. Proper selection of process4 W ll t i d i d d ti t d t4. Well trained, experienced and motivated operators5. Proper storage and shipment6. Feedback from internal inspection and customers6. Feedback from internal inspection and customers7. Use of S.Q.C. techniques

Quality of performance

“ How well the manufactured product functions or service

Quality of performance

pperforms when put to use”.

Measures the degree to which the product or servicesatisfies the customer.

Function of

Quality of design Quality of conformance

Three aspects of Quality

.

p y

QualityQuality

Quality of Conformance

Quality of D i

Quality of Design Performance

Quality Assurance

• Everyone involved is responsible for quality• Can create ineffective system

Q y

• Can create ineffective system• A system is needed

• Objective : to have in place a formal systemQuality assurance team audits and assists

ANSI/ASQC defines QA“ All those planned or systematic actions necessary toAll those planned or systematic actions necessary to

provide confidence that a product or service will satisfygiven needs.”

Quality System

Definition as given by ANSI/ASQC:

Quality System

Definition as given by ANSI/ASQC:

“The collective plans activities and events thatThe collective plans, activities, and events thatare provided to ensure that a product, process,or service will satisfy given needs.”y g

Cost of QualityThe cost of carrying out the company’s quality functions

(meeting the quality needs of the customers) areknown as costs of quality.

Four categories: As per ASQC

Cost of Prevention

Cost of Appraisal

C t f I t l f ilCost of Internal failures

Cost of external failuresCost of external failures

Cost of Prevention

Costs incurred in planning, implementing and maintaining aquality system.Includes SalariesIncludes Salaries.Incurred to keep failure and appraisal costs to a minimum.

1 Cost of quality planning market research product1. Cost of quality planning – market research, productdevelopment (product , process and equipment design),inspection plan

2. Cost of documentingg3. Process control cost4. Cost of training5. Costs associated with preventing recurring defects5. Costs associated with preventing recurring defects6. Cost of investigation, analysis and correction of causes of

defects by QC and Engg. Deptt.7. Cost of cost consciousness programmesp g

Cost of Appraisal Costs associated with the measuring, evaluating orauditing products, components and purchasedmaterials to assure conformance with specifiedmaterials to assure conformance with specifiedstandards.

1. Cost of verification- incoming , in-process, after productionproduction

2. Cost of quality audits (appraisal of the quality system)

3. Cost of inspection equipments, maintenance, Calibration

4. Cost of material and products consumed in a pdestructive test

5. Cost of vendor rating

Cost of internal FailuresCosts associated with defective products,components and materials that fail to meet qualityrequirements and result in manufacturing lossesrequirements and result in manufacturing losses.(prior to the transfer of ownership to the customer)

1. Scrap (material, Labour and overheads)1. Scrap (material, Labour and overheads)

2. Rework or rectification (material, Labour and overheads)

3. Re-inspection4. Downgrading5. Waste6. Failure analysis7. Lost production time

Cost of external failures

Costs which are generated because of defectiveproducts being shipped to customers.p g ppWhen product does not perform satisfactory afterownership is transferred

1. Repair and servicing2 Warranty claims2. Warranty claims3. Customer Complaints4. Returns4. Returns5. Loss of goodwill

Economics of quality of conformanceEconomics of quality of conformance

Value of quality

“ Return direct or indirect gained by the manufacturer due

Value of quality

g yto mission of quality control”.

It is composed of 1. Value inherent in the design2 Value inherent in the conformance to that design2. Value inherent in the conformance to that design

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Difficult to assess the value of quality.

Factor for assessment:Factor for assessment:

1. Saving due to increased productiong p2. Reduction in scrap and rework cost3. Increased sales of good quality product4 I di t f t h4. Indirect factors such as

a. Reputation of manufacturer and goodwill of thecustomerb. Psychological stability in the enterprise and security of jobs to workers.

Deming’s approach to quality

• W. Edward Deming and Japanese Industry after WW II• Phy. Maths and stats. – Bureau of Census and U.S. war deptt.

(1939).• Logistic problem - coordination• His Revolutionary technique helped win the war____ Quality Control• JUSE invited to address leading industrialists• Japanese Industries moved to the forefront• Was awarded Prestigious second order medal of the sacred treasure

by Emperor Hirohito• In 1951 JUSE instituted Deming Award• Toyota, Nissan, Nippon steel, Hitachi• Texas instruments in 1985

Deming’s Philosophy

• Emphasizes the role of Management• 85% of the problems can be solved by the management• 85% of the problems can be solved by the management• Organization is an integrated entity• Total Quality programTotal Quality program• Quality Improvement cycle• Quality and Productivity• Plan of actions to achieve long term goals• Need for management and workers a common language

(l f t ti ti )(language of statistics)• 14 points for Management

Deming’s Philosophy

• Continuous improvement - System of profound

g p y

Continuous improvement System of profound knowledge

1. Knowledge of the system and the theory of optimizationp2. Knowledge of the theory of variation3. Exposure to the theory of knowledge3. Exposure to the theory of knowledge4. Knowledge of psychology

Deming’s 14 points for management

• Point 1: Create and publish Vision and Demonstrate

Deming s 14 points for management

pCommitment

• Point 2: Learn the new Philosophy

• Point 3: Understand purpose of Inspection

• Point 4: Stop Making Decisions Purely on the Basis of p g yCost

• Point 5: Improve Constantly and Forever the system

• Point 6: Institute Training

• Point 7: Teach and Institute Leadership p

Deming’s 14 points for management• Point 8: Drive Out Fear. Create trust. Create a climate

for innovation

• Point 9: Optimize the Efforts of Teams , Groups and staff areas

i 0 l h f h kf• Point 10: Eliminate Exhortations for the workforce

• Point 11: a) Eliminate Numerical Quotas for the work force

b) Eliminate management by objectives

• Point 12: Remove Barriers to Pride in Work

• Point 13: Encourage Education and Self-Improvement

• Point 14: Take Action to accomplish the transformation.

Act (A)Implement the plan to improve

PDCA cycleplan to improve

customer satisfaction

Plan (P)h k ( ) Plan (P)Recognize the opportunity for improvement

Check (C) Analyze results

of the test phase improvement

Do (D)Test the theoryTest the theory on small scale

Quality Function Deployment

• Planning Tool - Designing quality into a productor serviceor service

• System approach involves cross-functional teams

• Customer driven Customer needs into technical• Customer driven - Customer needs into technicalrequirements

• Evaluates competitors from• Evaluates competitors from

- customer’s perspective

technical perspective- technical perspective

• Reduces product development cycle time

Mi i i id t d i h• Minimize midstream design changes

Quality Function DeploymentQuality Function Deployment

• Can be used toCan be used to

t t i i- create training programs

- select new employeesp y

- establish supplier development criteria

- Improve services

Quality Function Deployment

• Identified by other namesy- House of quality- Matrix product planningMatrix product planning- Customer-driven Engineering- Decision MatrixDecision Matrix

History

• Dr. Shigeru Mizuno and Yoji Akao are credited with theinitial development of QFD in the 1960’s. Their purpose

t d l lit th d th t ldwas to develop a quality assurance method that woulddesign customer satisfaction into a product before it wasmanufactured. Prior quality control methods wereq yprimarily aimed at fixing a problem during or aftermanufacturing.

• First application -- Kobe Shipyards of Mitsubishi HeavyIndustries, Ltd. in Japan (design of an oil tanker-1972), p ( g )

History

• Adopted by Toyota in 1978; and by many other Japanese companies later on.

• First used in the U.S. by Ford in 1983 to counter Toyota’s competition Has been used by many Americancompetition. Has been used by many American companies such as GM, Proctor & Gamble, AT&T, Digital Equipment, etc.

QFD TeamQFD Team

• Significant Amount Of Timeg– Communication

• Two Types Of Teams– New Product– Improve Existing Product

k l d• Marketing, Design, Quality, Finance, Production, Etc.

House of Quality – Credit Card Services

Correlation Matrix of “Hows”

Technical Descriptors or “Hows”

Target Goals of “Hows”

t f

Objective statement

Relationship matrix between the “Hows” and the “Whats”

Assessm

ent

mpe

titors

ce ra

tings of

Wha

ts”Customer

requirements the “Hows” and the “Whats”

Custom

er

of co m

Impo

rtan

c“W

qor “Whats”

Technical competitive assessment of “Hows”

Importance ratings of Customer requirements or “Whats”“Whats”

Customer Requirements (Whats) Importance ratingsCustomer Requirements (Whats) Importance ratings

Low interest rate 2

Error‐free Transactions 5

No annual Fee 1

Extended warranty at no additional cost 3

Customer service 24 hours a day 4

Customer’s advocate in billing disputes 4

Customer Assessment of competitorsp

Customer Requirements (Whats)Competitive assessments ofCompetitive assessments of companies

A B C DA B C D

Low interest rate 3 2 2

Error‐free Transactions 4 3 3

4

5Error free Transactions 4 3 3

No annual Fee 2 3

Extended warranty at no additional cost 2 2 1 4

5

55

Extended warranty at no additional cost 2 2 1 4

Customer service 24 hours a day 2 2 3

Customer’s advocate in billing disputes 2 2 3

4

Customer s advocate in billing disputes 2 2 34

Target Goals of Technical Descriptors“Hows” 1 2 3 4 5 6 7

TargetGoals . .

LegendLegend

Number Technical Descriptors or “Hows”

1 A software to detect billing errors

2 Employee training on data input and customer services

3 Negotiations with manufacturers and retailers (vendors)

4 Expanded scheduling (including flextime) of employees

5 Effective recruiting

6 Legal training

7 Financial management services7 Financial management services

Symbols Target Goal

Maximize or increase attained value

Minimize or decrease attained value

Achieve a target value.

+ + +

How#1 How#2 How#3 How#4 How#5 How#6 How#7

Billing Error software

Employee training

Vendor negotiations

Expanded scheduling

Recruiting Legal training Financial Management

srevices

Legend + + Strong positive relationship

+ positive relationship

(( _ Negative relationship

_ _ Strong Negative relationship

Technical Competitive Assessment of “Hows”

Technical Descriptors (“Hows”)

Company 1 2 3 4 5 6 7Company 1 2 3 4 5 6 7

A 4 3 2 3 4 4 5

B 3 1 1 2 3

C 2 2 2 3 2

5 4

5 5

D 2 2 1 3 3 4

5 5

4

Relationship between “Whats” and “Hows”p

0 – No relationshipp1- Low relationship3- Medium Relationship5- High relationship

Relationship matrix of absolute and relative scores

Customer requirements (“Whats”)

Importance ratings

Technical Descriptors (“Hows”)

1 2 3 4 5 6 7

L i t t t 2 0 (0) 0 (0) 5 (10) 0 (0) 0 (0) 0 (0) 5 (10)Low interest rate 2 0 (0) 0 (0) 5 (10) 0 (0) 0 (0) 0 (0) 5 (10)

Error-free Transactions 5 5 (25) 5 (25) 0 (0) 3 (15) 5 (25) 0 (0) 0 (0)

No annual Fee 1 0 (0) 0 (0) 3 (3) 0 (0) 0 (0) 0 (0) 5 (5)

Extended warranty at no additional cost

3 0 (0) 1 (3) 5 (15) 0 (0) 0 (0) 3 (9) 3 (9)

Customer service 24 hours a day

4 1 (4) 3 (12) 0 (0) 5 (20) 5 (20) 3 (12) 0 (0)hours a day

Customer’s advocate in billing disputes

4 1 (4) 3 (12) 5 (20) 0 (0) 3 (12) 5 (20) 1 (4)

THE PROCESS OF QFD

• The aim of QFD is to transfer the requirements of the

customer into product and process characteristics by

systematically letting the requirements be reflected at

every level of the product development process.

The Four Steps of the QFD process:1. Product Planning (House of Quality)2 Product Design (Parts Deployment)2. Product Design (Parts Deployment)3. Process Design (Process Planning)4. Production Design (Production Planning)g ( g)

THE PROCESS OF QFDQ

1.Product Planning: The requirements of the customer(voice of the customer) are transferred to the properties(voice of the customer) are transferred to the propertiesor characteristics of the product. Information fromcompetitors’ products are also used. This is done byb ilding a “ho se of q alit ”building a “house of quality.”

2 Product Design: The design concept is chosen that2.Product Design: The design concept is chosen thatbest fulfils the given target values in the house ofquality. Parts and components that will be critical for the

d t id tifi d d th th t tiproduct are identified and then the part properties areset.

THE PROCESS OF QFD

3.Process Design: The critical detail properties aretransferred to production operations and their criticaltransferred to production operations and their criticalparameters are identified. Methods for process controland process improvement are decided upon.

4.Production Design: Production instructions aredesigned The operator needs exact descriptions of thedesigned. The operator needs exact descriptions of theparts that have to be measured and the measurementsthat have to be observed. Ends with prototype and

d ti l hproduction launch.

Phases of Use of QFD

Customer requirements

Product Design

Parts characteristics

Process Designq g g

P d iProduction requirements

Documents

UNIT 1 QM