TM 620: Quality Management

Session Two – September 4, 2012

• Quality Philosophies

• Quality Standards

• If you are a ENGM student:

– Email Dr. Kellogg (Stuart.Kellogg@sdsmt.edu) to confirm that he has the correct email address for you.

– If you believe you are graduating this semester and you have not discussed this with Dr. Kellogg, do so ASAP.

Question

• What are the contributions of Deming? Why might some believe he is the most influential quality expert? Would you agree?

Deming System

Production, assembly, inspection

Suppliers

A

B

C

Tests of processesmachines, methods, costs

Distribution

Consumer Research

Design and redesign

Deming System

Productivity Increases

Provide jobsand more jobs

ImproveQuality

Stay in Business

CaptureMarket

Cost decrease dueto less rework, fewerdelays

Deming’s 14 points

1. Create constancy of purpose toward improvement of product and service.

2. Adopt the new philosophy.3. Cease dependence on inspection to

achieve quality.4. End the practice of awarding business on

the basis of a price tag.5. Improve constantly and forever the system

of production and service.

Deming’s 14 points

6. Institute training on the job.7. Institute leadership. The aim of supervision

should be to help people and machines and gadgets to do a better job.

8. Drive out fear, so that everyone may work effectively for the company.

9. Break down barriers between departments.10. Eliminate slogans, exhortations, and targets for

the work force asking for zero defects and new levels of productivity.

Deming’s 14 points

11. Eliminate work standards (quotas) on the factory floor.

– Eliminate management by objectives

12. Remove barriers that rob the hourly worker of his right to pride of workmanship

– Abolishment of annual or merit rating

13. Institute a vigorous program of education and self-improvement

14. Put everybody in the company to work to accomplish the transformation.

Profound Knowledge

• Appreciation for a system

• Understanding of variation

• Theory of knowledge– experience– theory

• Psychology

Systems

• Most organizational processes are cross-functional

• Parts of a system must work together

• Every system must have a purpose

• Management must optimize the system as a whole

Variation

• Many sources of uncontrollable variation exist in any process

• Excessive variation results in product failures, unhappy customers, and unnecessary costs

• Statistical methods can be used to identify and quantify variation to help understand it and lead to improvements

Theory of Knowledge

• Knowledge is not possible without theory

• Experience alone does not establish a theory, it only describes

• Theory shows cause-and-effect relationships that can be used for prediction

Psychology

• People are motivated intrinsically and extrinsically; intrinsic motivation is the most powerful

• Fear is demotivating

• Managers should develop pride and joy in work

Video – Deming on Profound Knowledge

7 Deadly Diseases

• Lack of constancy of purpose• Emphasis on short-term profits• Evaluation of performance, merit rating, or

annual review of performance• Mobility of management• Running a company on visible figures alone• Excessive medical costs for employee• Excessive costs of warranty, fueled by lawyers

who work on the basis of contingency fees

Question

• Deming believed poor quality rested with management rather than the worker. Would you agree? Why or why not?

Question

• What was Joseph Juran’s primary contribution to quality thinking in America? Describe his three step process to improving quality.

Juran

• Trilogy

1. Quality Planning

2. Quality Control

3. Quality Improvement

Juran

• Cast in traditional organizational structure• Breakthrough thinking

1. proof of need

2. project identification

3. organization for breakthrough

4. diagnostic journey (data, statistics)

5. remedial journey

6. holding the gains

• Programs for Quality Improvement

Juran

1. Build awareness of the need and opportunity for improvement.

2. Set goals for improvement.

3. Organize to teach the goals (establish a quality council, identify problems, select projects, appoint teams, designate facilitators).

4. Provide training.

5. Carry out projects to solve problems.

Juran

6. Report progress.7. Give recognition.8. Communicate results.9. Keep score.10.Maintain momentum by making annual

improvement part of the regular systems and processes of the company.

Crosby

• formal, company-wide program with emphasis on motivation

• Absolutes– quality = conformance to standards– no such thing as quality problem– no such thing as economics of quality– only performance measure is cost of non-

conformance– only standard is “Zero Defects”

• 14 step program

Crosby (14 steps)

1. Make it clear that management is committed to quality.

2. Form quality-improvement teams with representatives from each department.

3. Determine where current and potential quality problems lie.

4. Evaluate the cost of quality and explain its use as a management tool.

5. Raise the quality awareness and personal concern of all employees.

Crosby (14 steps)

6. Take actions to correct problems identified through previous steps.

7. Establish a committee for the zero-defects program.

8. Train supervisors to actively carry out their part of the quality-improvement program.

9. Hold a “zero-defects day” to make all employees aware that there has been a change.

10. Encourage individuals to establish improvement goals for themselves and their groups.

Crosby (14 steps)

11. Encourage employees to communicate to management the obstacles they face in attaining their improvement goals.

12. Recognize and appreciate those who participate.

13. Establish quality councils to communicate on a regular basis.

14. Do it all over again to emphasize that the quality-improvement program never ends.

Feigenbaum

• Honorary member ASQC 1986• 3 contributions

1. International promotion of the quality ethic2. Concept of Total Quality Control3. Quality cost classification

• 3 steps to quality1. Quality Leadership2. Modern Quality Technology3. Organizational Commitment

Feigenbaum

• Four Deadly Sins– Hothouse quality– Wishful thinking– Producing overseas– Confining quality to the factory

Ishikawa

• Quality begins & ends with education.• The first step in quality is to know the

requirements of the customer.• The ideal state of quality control occurs when

inspection is no longer necessary.• Remove the root cause, not the symptoms.• Quality control is the responsibility of all workers

and all divisions.• Do not confuse the means with the objectives.

Ishikawa

• Put quality first and set your sights on long-term profits.

• Marketing is the entrance and exit of quality.• Top management must not show anger

when facts are presented by subordinates.• 95% of problems in a company can be

solved with simple tools for analysis and problem-solving.

• Data without dispersion information (variability) is false data.

Cause & Effect

Effect

People Methods Handling

DesignTools

Cause & Effect

Too Few Chips

AutomateMix Chips in Dry

Fold Longer

Drop Liquid Chips

Place Chips on by hand

Harrington• cross approach of major 3• urgent need is in business process; not production

processes• business process reengineering• 5-step process

1. organize for improvement2. understand the process3. streamlining4. measurement and control5. continuous improvement

Question

• Describe Taguchi’s perspective of quality. What practical applications does it have? If you were a manager would you adopt Taguchi’s approach to quality?

Taguchi

x

LSL USL

T

x

T

Process Capability

x

LSL USL

x

CUSL LSL

px

6

OK, Now What?