WEEK 02A – MANAGEMENT OF QUALITY (CH 6) Dimensions, determinants, definition, pioneers, Cost of...

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

SJSU Bus 140 - David Bentley 1

What’s your definition of quality?

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


Dimensions of Quality (Goods)- David Garvin

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


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

• Tangibles• Service Reliability• Responsiveness• Assurance• Empathy

• Availability• Professionalism• Timeliness• Completeness• Pleasantness


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


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”


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


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


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


http://www-groups.dcs.st-and.ac.uk/~history/PictDisplay/Shewhart.html


• 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



• 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



• 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



• 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


Cost of Quality (Juran/Feigenbaum)


TRADITIONAL CoQ CURRENT CoQ

External Failure

External FailureInternal Failure

Internal Failure

Prevention

Prevention

Appraisal

Appraisal


• 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



• 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”



• 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


http://www.asq.org/

http://www.asq.org/

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


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


Value of Awards & Prizes

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


ISOInternational Organization

For Standardization


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)


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


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


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


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


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


http://www.campbell.berry.edu/pokayoke

Other TQM Points

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


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


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


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


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


* * ** * *

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?


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


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


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


* * * * *

* *

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


* * * * *

* *

Process Improvement Sequence - 1

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



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



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



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

implementation if results satisfactory


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


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


5W2H Approach

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


SIX SIGMA


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


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


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


http://www.motorola.com/

http://en.wikipedia.org/wiki/Image:AlliedSignal.JPG

What is Six-Sigma?


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%


Six-Sigma Levels


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


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


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


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


WEEK 02A – MANAGEMENT OF QUALITY (CH 6) Dimensions, determinants, definition, pioneers, Cost of...

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