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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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QUALITY AWARD AND QUALITY CERTIFICATION

Page 410 – 415 read on your own

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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

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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

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EXAMPLE OF COMPETITIVE COMPARISON

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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.

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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

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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

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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

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BASIC QUALITY TOOLS

Flowcharts Check sheets Histograms Pareto Charts Scatter diagrams Control charts Cause-and-effect diagrams Run charts

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CHECK SHEET

Billing Errors

Wrong Account

Wrong Amount

A/R Errors

Wrong Account

Wrong Amount

Monday

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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.

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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

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CAUSE-AND-EFFECT DIAGRAM

Effect

MaterialsMethods

EquipmentPeople

Environment

Cause

Cause

Cause

Cause

Cause

CauseCause

Cause

CauseCause

Cause

Cause

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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

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TRACKING IMPROVEMENTS

UCL

LCL

LCLLCL

UCLUCL

Process not centeredand not stable

Process centeredand stable

Additional improvementsmade to the process

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METHODS FOR GENERATING IDEAS

Brainstorming Quality circles Interviewing Benchmarking 5W2H

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Team approach List reduction Balance sheet Paired comparisons

QUALITY CIRCLES

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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

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CHAPTER 10 – QUALITY CONTROL

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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

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PHASES OF QUALITY ASSURANCE

Acceptancesampling

Processcontrol

Continuousimprovement

Inspection of lotsbefore/afterproduction

Inspection andcorrective

action duringproduction

Quality builtinto theprocess

The leastprogressive

The mostprogressive

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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

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Co

st

OptimalAmount of Inspection

INSPECTION COSTS

Cost of inspection

Cost of passingdefectives

Total Cost

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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

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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

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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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