WEEK 02A – MANAGEMENT OF

QUALITY (CH 6)

Dimensions, determinants, definition, pioneers, Cost of Quality, awards, ISO registration, TQM, process improvement methodology, quality tools, PDCA (PDSA) cycle, Quality Circles, Six Sigma

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What’s your definition of quality?

• High price?• Reliable?• Attractive?• Durable?• Other?

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Dimensions of Quality (Goods)- David Garvin

• Performance• Aesthetics• Special features• Safety• Reliability• Durability• Perceived quality• Service after sale

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Dimensions of Quality (Service) (Parasuraman, Zeithamel, and Berry)

• Tangibles• Service Reliability• Responsiveness• Assurance• Empathy

• Availability• Professionalism• Timeliness• Completeness• Pleasantness

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Quality - a Definition - 1

• “Fitness for use” - Juran• Based on various factors: reliability, durability, performance, usefulness, aesthetics, price, etc. - Various

• “Meets customer requirements” – Various• “Consistently meets or exceeds customer expectations” – Stevenson

• “Ability of a product or service to meet customer needs” - Heizer

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Quality - a Definition - 2

• “Consistently meets or exceeds customer requirements” – Bentley• Emphasis on requirements• Includes understanding of expectations• Implies an agreement

• explicit or • Implicit

• Related concept: • “Do it right the first time and every time”

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Determinants of Quality

• How well a product satisfies its intended purpose based on 4 factors• Design• Conformance to the design• Ease of use• Service after delivery

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Case Study – a personal experience

• Program introduction• General manager kickoff talk• Key question – “What do we do at the end of the month if we’re not sure that a product meets quality requirements?”

• The answer – “That all depends…”• Possible consequences• Program results

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Quality Gurus / Pioneers - 1

• Frederick Taylor (1856-1915)• Inspection

• Gauging http://www.skymark.com/resources/leaders/taylor

• Walter Shewhart (Bell System) (1891-1967)• Developed Statistical control charts• Mentored Deming http://www-groups.dcs.st-and.ac.uk/~/Mathematics/Leaders

• PDCA cycle (shared with Deming)• Identified 2 causes of variation: chance and

assignable

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Quality Gurus / Pioneers - 2

• H.G. Romig (1892-1964) and Harold Dodge (1893-1976) (Bell System)• Acceptance sampling tables

• W. (William) Edwards Deming (1900-1993)• Trained in engineering, mathematics, and physics• Physics professor, U.S. Census Bureau, USDA,

consultant • Taught SQC to Japanese QC people (1947-1965)

• PDCA cycle (shared with Shewhart)• Honored by Japanese prize in his name

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Quality Gurus / Pioneers - 3

• W. (William) Edwards Deming (cont’d.)• 14 points based on:

• Constancy of purpose• Continual improvement• Profound knowledge

• Appreciation for a system• A theory of variation• A theory of knowledge http://www.deming.org

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Quality Gurus / Pioneers - 4

• Joseph M. Juran (Bell System) (1904-2008)• Also lectured in Japan• Authored/Edited Quality Control Handbook• Built on Pareto concept• “Quality Trilogy” concept

• Quality planning• Quality control• Quality improvement http://www.asq.org

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Quality Gurus / Pioneers - 5

• Armand Feigenbaum (GE, General Systems Company) (1922- )• “Cost of nonconformance”• Total quality control concept• Authored Total Quality Control • 40 steps in quality principles

• TQC is system for integration… http://www.asq.org

• Standards, appraisal, corrective action• Technological and human factors• 4 categories of quality costs (next slide)• Control quality at the source

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Cost of Quality (Juran/Feigenbaum)

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TRADITIONAL CoQ CURRENT CoQ

 

External Failure 

  External FailureInternal Failure  

  Internal Failure   

Prevention     

  Prevention   

Appraisal     

  Appraisal

Quality Gurus / Pioneers - 6

• Philip Crosby (Martin Marietta, ITT, PCA) (1926-2001)• Zero Defects• Authored Quality is Free, Quality Without Tears

http://www.asq.org

• Started Quality College (multiple sites)• Company teams trained

• Emphasized behavioral change

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Quality Gurus / Pioneers - 7

• Kaoru Ishikawa (1915-1989)• Quality Circles• 7 Basic Tools of Quality• Cause and effect [“fishbone” or http://www.asq.org

Ishikawa] diagram• Promoted statistical methods• Recognized internal customer• Conceived “company wide quality control”

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Quality Gurus / Pioneers - 8

• Genichi Taguchi (1924-2012)• Emphasized variation reduction• Taguchi loss function http://www.asq.org

• Shigeo Shingo (1909-1990)• Not focused on quality but had significant impact• Setup standardization• Poka-yoke• Source inspection systems http://www.shingoprize.org

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Awards & Prizes

• Deming Prize• Awarded by Union of Japanese Scientists &

Engineers• First awarded in 1951• Named after W. Edwards Deming

• Malcolm Baldrige Award• Awarded by US Department of Commerce• 1987 legislation• Named after Malcolm Baldrige

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Awards & Prizes (cont’d)

• European Quality Award• Award for “organizational excellence”• Originally one per year• Now several categories

• Other awards• Most developed nations have some form of Quality

awards or prizes

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Value of Awards & Prizes

• Shows effort• Largely dependent on money spent• Used in advertising• Doesn’t reflect customer view

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ISOInternational Organization

For Standardization

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Current ISO Standards

• ISO 9000 family – “Quality management”• ISO 9001:2008 (QMS - Requirements)

• ISO 14000 family – “Environmental management”• ISO 14001:2004 (EMS - Requirements)

• ISO 19011:2002 (Guidelines on Quality and/or Environmental Management Systems Auditing)

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ISO Registration

• What’s been good• Focus on quality• Demonstrates effort

• What was bad (mostly fixed in ISO 9000:2000• Became mechanical• Emphasized conformance to documentation, not

meeting QUALITY• Didn’t include customer view

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Quality Today

• Reflects a blend of concepts and contributions from the “pioneers” (“gurus”)

• Stresses organization-wide TQM• Emphasizes the role of the front-line worker (authority and responsibility)

• Seeks to recognize achievement through prizes and certification

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TQM Approach

• Know customer requirements and wants• Design a product to delight the customer• Design a process to do the job right (the first time and) every time• Apply fail-safing techniques (“poka-yoke” devices)

• Monitor and record results for improvement ideas

• Work with suppliers and customers

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Poka-Yoke(Mistake-Proofing)

• Developed by Shigeo Shingo• An approach for mistake-proofing processes using automatic devices or methods to avoid simple human or machine error, such as forgetfulness, misunderstanding, errors in identification, lack of experience, absentmindedness, delays, or malfunctions

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Poka-Yoke Examples (from John Grout’s Poka-Yoke Page)(refer to www.campbell.berry.edu/pokayoke) mod. 09/15/02 DAB

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Other TQM Points

• Continual improvement (“kaizen”)• Competitive benchmarking• Employee enablement• Use of teams• Training• Extension to suppliers• Traditional vs. TQM cultures

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Ishikawa’s Seven Basic Tools of Quality

• Process flowcharts• Check sheets• Scatter diagrams• Histograms• Pareto analysis (charts)• Cause-and-effect diagrams (Ishikawa/Fishbone)

• Control charts• Run charts

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Flowcharts

• Shows unexpected complexity, problem areas, redundancy, unnecessary loops, and where simplification may be possible

• Compares and contrasts actual versus ideal flow of a process

• Allows a team to reach agreement on process steps and identify activities that may impact performance

• Serves as a training tool

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Check Sheet

• Creates easy-to-understand data • Builds, with each observation, a clearer picture of the facts

• Forces agreement on the definition of each condition or event of interest

• Makes patterns in the data become

obvious quickly

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xx xxxxxx x

Scatter Diagram

• Supplies the data to confirm a hypothesis that two variables are related

• Provides both a visual and statistical means to test the strength of a relationship

• Provides a good follow-up to cause and effect diagrams

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* * ** * *

Histogram

Displays large amounts of data that are difficult to interpret in tabular formShows centering, variation, and shapeIllustrates the underlying distribution of the dataProvides useful information for predicting future performanceHelps to answer the question “Is the process capable of meeting requirements?

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Pareto Diagram

• Helps a team focus on causes that have the greatest impact

• Displays the relative importance of problems in a simple visual format

• Helps prevent “shifting the problem” where the solution removes some causes but worsens others

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Cause and Effect Diagram

• Enables a team to focus on the content of a problem, not on the history of the problem or differing personal interests of team members

• Creates a snapshot of collective knowledge and consensus of a team; builds support for solutions

• Focuses the team on causes, not symptoms

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Effect

Cause

Control Chart

• Focuses attention on detecting and monitoring process variation over time

• Distinguishes special from common causes of variation

• Serves as a tool for on-going control• Provides a common language for discussion process performance

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* * * * *

* *

Run Chart

• Monitors performance of one or more processes over time to detect trends, shifts, or cycles

• Allows a team to compare performance before and after implementation of a solution to measure its impact

• Focuses attention on truly vital changes in the process

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* * * * *

* *

Process Improvement Sequence - 1

• Management responsibility• Develop process improvement plan• Determine process or area to examine• Form and train Process/Quality Improvement Team

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Process Improvement Sequence - 2

• Team: use coarse tools• Process flowchart• Check sheets and histograms• Pareto analysis <--- (iterative• Fishbone chart ---> steps)

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Process Improvement Sequence - 3

• Team: use fine tools• Process control charts• Run diagrams• Scatter diagrams• Failsafing

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Process Improvement Sequence - 4

• Team• Determine process changes• Implement pilot process improvement • Measure and evaluate results• Repeat if results unsatisfactory; deploy full

implementation if results satisfactory

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PDCA (or PDSA) Cycle

• Also known as the Deming wheel, or Deming/Shewhart cycle or wheel

• 4 parts to the cycle• Plan - document and analyze• Do - implement “improvement”• Check (or Study) - compare to desired state• Act - correct or standardize

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Quality Circles vs. QITs

• Quality Circles• Limited authority• Focus within department• Often seen as added work• Ongoing

• Quality Improvement Teams• Greater authority• Focus on total process• Recognized as important part of job• End when process improvement complete

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5W2H Approach

• What? Subject• Why? Purpose• Where? Location• When? Timing/sequence• Who? People involved• How? Method• How much? Cost/impact

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SIX SIGMA

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Six Sigma Quality

• Latest popular approach to Quality• ± 6 standard deviations (6) from the process mean = 0.0003% defects

• Represents a goal• Certification from ASQ on processes to support Six Sigma

• Many consulting and training firms on how to implement Six Sigma

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Six Sigma at GE

• “The central idea behind Six Sigma is that if you can measure how many ‘defects’ you have in a process, you can systematically figure out how to eliminate them and get as close to ‘zero defects’ as possible.”

Making Customers Feel Six Sigma Quality

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Six Sigma Evolution

• Started as a simple quality metric at Motorola in 1986 (Bill Smith)

• Concept migrated to Allied Signal• (acquired Honeywell and took its name)

• Picked up by General Electric• Commitment by CEO Jack Welch in 1995• Grown to be an integrated strategy for attaining extremely

high levels of quality

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What is Six-Sigma?

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Sigma () is a Greek letter used to designate a standard deviation (SD)

in statistics Six refers to the number of SD’s

from the specialized limit to the mean. Six sigma is a fairly recent umbrella

approach to achieve quality

Percent Not Meeting Specifications

• +1Σ = 32%• +2Σ = 4.5%• +3Σ = 0.3%• +6Σ = 0.00034%

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Six-Sigma Levels

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Sigma Level Long-term ppm* defects

1 691,462

2 308,538

3 66,807

4 6,210

5 233

6 3.4

Statistics - DPU

• Defect • Six Sigma: “any mistake or error passed on to the

customer” ???• General view: any variation from specifications

• DPU (defects per unit)• Number of defects per unit of work• Ex: 3 lost bags ÷ 8,000 customers

= .000375

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Statistics – dpmo (defects per million opportunities)• Process may have more than one opportunity for error (e.g., airline baggage)

• dpmo = (DPU × 1,000,000) ÷ opportunities for error• Ex: (.000375)(1,000,000) ÷ 1.6 = 234.375 or (3 lost bags × 1,000,000) ÷ (8,000 customers × 1.6 average bags)

= 234.375

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Statistics - Off-CenteringSource: Evans & Lindsay, The Management and Control of Quality, Southwestern, 2005

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k-Sigma Quality Levels Source: Evans & Lindsay, The Management and Control of Quality, Southwestern, 2005

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