Session 10&11 - Quality & TQM
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Transcript of Session 10&11 - Quality & TQM
Agenda
Basic Concepts – Quality & TQMThe Quality GurusCommonality of Themes of Quality GurusCommonality of Themes of Quality Gurus
QA, QC, SQCQA, QC, SQCCost of QualityQuality ModelsBenefits of TQMState of Quality Model Implementation in IndustriesConclusion
QualityTQM
Quality Gurus
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IntroductionWhat is quality?
Dictionary has many definitions: “Essential characteristic,” “Superior,” etc.
Some definitions that have gained wide acceptance in various organizations: “Quality is customer satisfaction,” “Quality is Fitness for Use.”
The American National Standards Institute (ANSI) and the American Society for Quality (ASQ) define quality as:
“The totality of features and characteristics of a product or service that bears on its ability to satisfy given needs.”
Why care about qualityincrease productivity
expand market share
raise customer loyalty
enhance competitiveness of the firm
at a minimum, serve as a price of entry
Deming JURAN Philip Crosby
Basic Premise: Good quality – low price - profitableProposed: 4 step process: Plan – Do – Check – Act (PDCA)
Juran, like Deming was invited to Japan in 1954 by the union of Japanese Scientists and engineers.
Proposed: simple definition of “Fitness for Use”Quality PlanningQuality ControlQuality Improvement
Quality is defined as conformance to requirements, not “goodness”
• Prevention, not appraisal.
• Zero defect• Price of non-
conformance, not indexes.
The Quality Gurus
• Karou Ishikawa: “Quality Control Circles (QC Circles).• Shigeo Shingo: “Poka Yoke” – Mistake – proofing• Genichi Taguchi: Design Quality
Commonality of Themes of Quality GurusInspection is never the answer to quality improvement, nor
is “policing”.
Involvement of leadership and top management is essential to the necessary culture of commitment to quality.
A program for quality requires organization-wide efforts and long term commitment, accompanied by the necessary investment in training.
Quality is first and schedules are second.
DIFINITION OF QUALITYThe concept and vocabulary of quality are elusive. Different
people interpret quality differently.
When asked what differentiates their product or service;
The banker will answer” service” The healthcare worker will answer “quality health care” The hotel employee will answer “customer satisfaction” The manufacturer will simply answer “quality product”
Dictionary Definition
Quality Assurance-
All actions taken to ensure that standards and procedures are followed to and that delivered products or services meet performance requirements.
Quality Control-
Quality control refers to the process, most often implemented in manufacturing, of monitoring the quality of finished products through measures and an overall corporate commitment to producing defect-free products.
QA V.S QC
Quality Assurance
Examples of quality assurance include process checklists and project audits as well.
The auditor being able to tell if the deliverable seems acceptable based on the process used to create it (quality assurance).
Quality Control
Examples of quality control activities include deliverable peer reviews and the testing process too.
If your project gets audited, for instance, an auditor might not be able to tell if the content of a specific deliverable is acceptable (quality control).
Dimensions of Quality
Quality Improvement Quality improvement is the reduction of
variability in processes and products.
Alternatively, quality improvement is also seen as “waste reduction”.
Dimensions of Quality
Statistical Methods for Quality Control and Improvement
Statistical ProcessControl (SPC)Control charts are used for process monitoring and variability reduction.
SPC is an on-line quality control tool.
INTRODUCTION TO TQMWhat is TQM?
TQM is the integration of all functions and processes within an organization in order to achieve continuous improvement of the quality of goods and services. The goal is customer satisfaction.
“ No doubt , humans are always deficient”
(Al-Quran)
Customer Satisfaction Three Part System
Human Resource Management
Customer Expectations
Company Operations(Processes)
Customer Satisfaction
Cost Of Quality
Types of Quality Costs
The cost of quality is generally classified into four categories
1. Cost of Prevention
2. Cost of Appraisal
3. Cost of Internal Failure
4. Cost of External Failure
• Higher quality means higher cost• The cost of improving quality is less than the
resulting savings.• Quality costs are those incurred in excess of
those that would have been incurred if the product were built or the service performed exactly right the first time.
Three Views of quality Costs
Quality CostsCost of PreventionPrevention costs include those activities which remove and
prevent defects from occurring in the production process.Included are such activities as quality planning, production
reviews, training, and engineering analysis, which are incurred to ensure that poor quality is not produced. Appraisal
Those costs incurred to identify poor quality products after they occur but before shipment to customers. e.g. Inspection activity.
Quality Costs
Internal FailureThose incurred during the production process.Include such items as machine downtime, poor quality
materials, scrap, and rework.External FailureThose incurred after the product is shipped.External failure costs include returns and allowances,
warranty costs, and hidden costs of customer dissatisfaction and lost market share.
Quality CostsCOST OF QUALITY IS THE COST OF NON QUALITY
1: 10:100 Rule
“A stitch in time saves nine”
%
of sales
0
5
10
15
20
25
2001 2002 2003 2004 2005
External Costs
Internal Costs
Appraisal
Prevention
ISO 9000: 2000Malcolm Baldrige National Quality Award
Deming PrizeSix Sigma
ISO10012
ISO10012
ISO9000ISO
9000
Quality management
systems - Fundamentals &
vocabulary
ISO9004ISO
9004
Quality management
systems - Guidelines for performance improvement
ISO9001ISO
9001Quality management systems - Requirements
Technical Reports
Technical Reports
ISO10012
ISO10012Measureme
nt
ISO19011
ISO19011Audits
Guidelines
Annexes A & B for information
only
A desired result is achieved more efficiently when activities and related resources are managed as a process
PROCESS“set of interrelated or interacting activities
which transforms inputs into outputs
PROCESS“set of interrelated or interacting activities
which transforms inputs into outputs
INPUT OUTPUT
RESOURCES
CONTROLS
PRODUCT
PROCESS EFFECTIVENESS
Extent to which planned activities are realized and planned
results achieved
PROCESS EFFICIENCY
Relationship between the result achieved and
the resources used
ISO 9001:2000 Process Approach
Concept of integration
► ISO 9001:2008, ISO 14001:2004 & OHSAS 18001:2007 standards based on PDCA concept, therefore having similar structure:
Policy
Planning
Implementation and operation
Performance assessment
Improvement
Management review
Toyota Method- Top leadership commitment required
Problem Solving(Continous
inprovement & learning)
People and Partners
(Respect, challenge, and Grow them)
Process
(Eliminate Waste)
Philosophy
(Long-Term Thinking)
• Commitment to building a learning organisation• Commitment to understand process in detail• Commitment to through consideration in decision making
• Commitment to developing leaders who live the philosophy• Commitment to developing people and partners for the long term
• Commitment to lean methods for waste elimination • Commitment to value stream perspective.•Commitment to develop excellent process suported by throughly tested technology• Commitment to long –term
contribution to society• Commitement to company ecnomic performance and growth.
The Cornerstone of Lean – The Toyota Production System
Based on two philosophies:1. Elimination of waste 2. Respect for people
7 Wastesoverproductionwaiting timetransportprocessinventorymotiondefective goods
Deming Prize
PolicyOrganization and operations
Collection and use of information
Analysis
Planning for futureEducation and
trainingQuality assuranceQuality effectsStandardizationControl
Concentrates on :
Baldrige Criteria Framework: A Systems Perspective
Category Point Values1 Leadership 1202 Strategic Planning 853 Customer Focus 854 Measurement, Analysis, and
Knowledge Management 905 Workforce Focus 856 Process Management
857 Results
450TOTAL POINTS 1,000
30
Six Sigma - SIGMA LEVELSSigma Level ( Process Capability)
Defects per Million Opportunities
2 308,537
3 66,807
4 6,210
5 233
6 3.4
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PHASESPhases of Six Sigma are:
Define specific goals to achieve outcomes, consistent with customers demand and business strategy
Measure reduction of defectsAnalyze problems ,cause and effects must be
consideredImprove process on bases of measurements and
analysisControl process to minimize defects
Benefits of TQMGreater customer loyaltyMarket share improvementHigher stock pricesReduced service callsHigher pricesGreater productivity
Conclusion Remember the earth revolves around the CUSTOMER. Quality begets
customers and customers beget quality. Let us all have action plans to support quality, this will make the world happy and earn us the blessing of God Almighty.
“Actions are direct reflection of one’s intentions” (Al-Quran)