Bus 241 1

Production Operations Production Operations ManagementManagement

Quality ManagementU. Akinc

Quality ManagementU. Akinc

Bus 241 2

Quality ManagementQuality Management

Quality is defined as “fitness” for intended use(Joseph Juran)

Dimensions:TechnologicalPsychologicalTime OrientedContractual Ethical

Quality is defined as “fitness” for intended use(Joseph Juran)

Dimensions:TechnologicalPsychologicalTime OrientedContractual Ethical

Bus 241 3

Six SigmaSix Sigma

The Six Sigma's Breakthrough Strategy is a disciplined method of using extremely rigorous data-gathering and statistical analysis to pinpoint sources of errors and ways of eliminating them

See Six Sigma and General Electric

Bus 241 4

TQMTQMTotal Quality Management: The management

of quality throughout the organization.. at all levels and across all functions

TQM is both a comprehensive management philosophy and a collection of tools and approaches for its implementation…

Total Quality Management: The management of quality throughout the organization.. at all levels and across all functions

TQM is both a comprehensive management philosophy and a collection of tools and approaches for its implementation…

Bus 241 5

TQM PrinciplesTQM Principles Customer Defines Quality Top management’s leadership is essential Quality is a strategic issue Quality is responsibility of all employees All functions must focus on cont. impr. Quality problems are solved via cooperation Use of statistical and other tools Training and education is critical

Customer Defines Quality Top management’s leadership is essential Quality is a strategic issue Quality is responsibility of all employees All functions must focus on cont. impr. Quality problems are solved via cooperation Use of statistical and other tools Training and education is critical

Bus 241 6

Specific TQM ApproachesSpecific TQM Approaches Continuous Improvement (Kaizen)

Piecemeal improvement of existing processes

Important components:

– Process Selection

– Process Study

– Training, Empowerment

– Leadership

– Quality circles is a common way of implementation

Continuous Improvement (Kaizen)Piecemeal improvement of existing processes

Important components:

– Process Selection

– Process Study

– Training, Empowerment

– Leadership

– Quality circles is a common way of implementation

What to focus on?What to focus on?

What tasks, sub-processes?What tasks, sub-processes?

In tools and methods of improvementIn tools and methods of improvement

Encouragement, reward systemEncouragement, reward system

Bus 241 7

Specific TQM ApproachesSpecific TQM Approaches Business processes re-engineeringFundamental rethinking and redesign of

business processes that deliver quality.– Focus on outcome not on existing tasks – Understand the current process– Remove complexity – Innovation is central – Benchmarking

Business processes re-engineeringFundamental rethinking and redesign of

business processes that deliver quality.– Focus on outcome not on existing tasks – Understand the current process– Remove complexity – Innovation is central – Benchmarking

Quantum leapQuantum leap

Think critically about the processThink critically about the process

Learn from othersLearn from others

Bus 241 8

Edwards Deming’s Chain Edwards Deming’s Chain ReactionReaction

Improve Quality Cost Decreases Productivity Improves Increase or maintain market share Stay in Business Provide jobs and more jobs

Improve Quality Cost Decreases Productivity Improves Increase or maintain market share Stay in Business Provide jobs and more jobs

Bus 241 9

Deming’s 14 PointsDeming’s 14 Points

1. Management Commitment 2. Learn the New Philosophy 3. Understand Inspection 4. End Price Tag Decisions 5. Improve Constantly 6. Institute Training 7. Institute Leadership

1. Management Commitment 2. Learn the New Philosophy 3. Understand Inspection 4. End Price Tag Decisions 5. Improve Constantly 6. Institute Training 7. Institute Leadership

Be CredibleBe Credible

EverybodyEverybody

Price is not the sole criterionPrice is not the sole criterion

Bus 241 10

Deming’s 14 Points Deming’s 14 Points (Cont’d)(Cont’d)

8. Drive Out Fear 9. Optimize Team Efforts 10. Eliminate Exhortations 11. Eliminate Quotas (MBO) 12. Remove Barriers to Pride in Workmanship 13. Institute Education 14. Take Action

8. Drive Out Fear 9. Optimize Team Efforts 10. Eliminate Exhortations 11. Eliminate Quotas (MBO) 12. Remove Barriers to Pride in Workmanship 13. Institute Education 14. Take Action

Create trust, a climate for innovationCreate trust, a climate for innovation

Not Targets but direction Not Targets but direction

For everyoneFor everyone

Bus 241 11

Management of QualityManagement of Quality

Quality of Design: Resolution of the many

trade offs among dimensions of quality Quality of Conformance: Degree to which

design specs are met Time Oriented Dimensions

• Availability• Reliability• Maintainability

Field Service: Repair, Replacement, Service

Quality of Design: Resolution of the many

trade offs among dimensions of quality Quality of Conformance: Degree to which

design specs are met Time Oriented Dimensions

• Availability• Reliability• Maintainability

Field Service: Repair, Replacement, Service

Bus 241 12

Quality Management modelQuality Management model

Bus 241 13

A Quality management A Quality management ParadigmParadigm

Define Quality Attributes

Develop Measuring Scales

Set Quality Standards

Establish an Inspection Plan

Monitor, Discover and Correct Causes of

Poor Quality

Define Quality Attributes

Develop Measuring Scales

Set Quality Standards

Establish an Inspection Plan

Monitor, Discover and Correct Causes of

Poor Quality

Bus 241 14

Quality PolicyQuality Policy• Design Quality• Design Quality

Level of QualityLevel of Quality

PerceivedPerceived

Valueand CostValueand Cost

Bus 241 15

Quality Policy (Quality Policy (JuranJuran))• Conformance

Quality

• Conformance

Quality

Level of ConformanceLevel of Conformance

Costs:•Avoidable•Unavoidable

Costs:•Avoidable•Unavoidable

100%100%0%0%

Bus 241 16

Quality Policy (Quality Policy (CrosbyCrosby))• Conformance

Quality

• Conformance

Quality

Level of ConformanceLevel of Conformance

Costs:•Avoidable•Unavoidable

Costs:•Avoidable•Unavoidable

100%100%0%0%

Bus 241 17

Quality Control Quality Control

Managing Quality of Conformance

Quality Control System A. Inspection points

– Receiving Inspection– Process Control– Final Inspection

Managing Quality of Conformance

Quality Control System A. Inspection points

– Receiving Inspection– Process Control– Final Inspection

Bus 241 18

Quality Control Quality Control (cont’d)(cont’d)

B. Type of Measurements– Measurement by Attributes– Measurement by Variables

C. Amount of Inspection– 100% Inspection– Sampling inspection

D. Agent of Inspection– QC Department– Operator

B. Type of Measurements– Measurement by Attributes– Measurement by Variables

C. Amount of Inspection– 100% Inspection– Sampling inspection

D. Agent of Inspection– QC Department– Operator

Bus 241 19

Quality ControlQuality Control

Statistical QualityControl

Statistical QualityControl

AttributesAttributes VariablesVariables AttributesAttributes Variables Variables

Acceptance Sampling

Acceptance Sampling

ProcessControl

ProcessControl

Bus 241 20

Statistical Process Control Statistical Process Control (SPC)(SPC)

Assignable Causes of Variation Un-assignable Causes of VariationA process is considered in control when it

only exhibits variation due to un-assignable causes.

When the variation exceeds pre-established limits, suspicion arises that there is an assignable (correctable) cause and hence the process is deemed out of control.

Assignable Causes of Variation Un-assignable Causes of VariationA process is considered in control when it

only exhibits variation due to un-assignable causes.

When the variation exceeds pre-established limits, suspicion arises that there is an assignable (correctable) cause and hence the process is deemed out of control.

Bus 241 21

Control ChartsControl Charts X-Bar Charts – Controlling the Central value R Charts– Controlling the spread of the values P- Charts – Controlling the proportion defective C- Charts – Controlling the number of defects

X-Bar Charts – Controlling the Central value R Charts– Controlling the spread of the values P- Charts – Controlling the proportion defective C- Charts – Controlling the number of defects

MeanMean

UCLUCL

LCLLCL

x

x

x

xx

x

x

x

x

x

x