Quality Management in Business and Manufacturing Sectors

1. Quality Management in Business and Manufacturing Sectors

2. Quality • For a single product, the quality refers to the degree of conformity of the actual function of a product made to the required function of a product to be developed. • A product has a target (say t) and its actual performance (say y). The quality is about the closeness between y and t, namely |y – t|. The quality loss or financial loss is a function of this difference. • For a batch of products (say m numbers of the product), not only |y-t| is an attribute to measure the quality but also the variation of |y-t| for the product in the batch is an attribute to measure the quality. The variation is called robustness or sensitivity.

3. Quality - Quality is nothing new. There has been the concept of quality in both the ancient world and modern world. • Difference in the quality concept between now and the past is: • Past: inspection, sorting out the defect products, getting the percentage of defect products, developing instruments to measure or inspect the quality. There is no sense of quality management. • Now: (1) quality assurance/control is made at design stage, manufacturing stage, use stage, and whole life cycle of product by means of inspection, (2) quality is not just about the inspection but also management which determines for example when to inspect and how often to inspect.

4. Quality Examples of Management • Is the number of check points suitable (e.g., certainly if the check point is just at the end, it is usually not enough)? • Is there any personnel who looks after quality inspection? • Is there any procedure that looks after quality problem correction? • Etc. Management: Activities of • Leading, • Planning/scheduling • Coordinating, • Controlling

5. Minimum Quality assurance How to control quality ??? Focus on process and its management to a product ISO 9000 - Overview 1. Purpose Context: Globalization Product Quality: perceived and non-perceived • A standard for quality control in Business Sector • A standard in governing management practice

6. ISO 9000 - Overview 2. What it is and its evolution • 1987, ISO 9000 series of management • 1994, 2000 -? ISO 9001 • Provide a system model for quality assurance in design, production and servicing • There must be time-based performance measure

7. ISO 9000 - Overview • Cost-related performance measure • Customer satisfaction measure

8. ISO 9000 - Overview 3. Quality Control Architecture Components Level System Level Management Level ISO 9000

9. ISO 9000 - Overview 4. Behavior of the ISO 9000 certificate - Enforce an explicit statement of declared aims and specifications - Enforce a system of monitoring and keeping records - Establish clearly documented procedures that are understood by everyone concerned - Provide adequate quality training for everyone - Focus on customer needs - Supplier/customer relationship with mutually agreed requirements - Provide an auditable system that can be verified by external auditors If an organization has the above behavior, it can get ISO 9000 certificate

10. Methodology for an organization to achieve ISO 9000 Certificate 5. Registration Road Map - Establish a quality steering committee with empowerment - Train management and employees - Communicate a registration plan - Develop an implementation plan - Create self-assessment questions - Establish a quality manual and procedures - Establish an internal auditing system

11. 5. Registration Road Map (cont. …..) - Measure compliance to the procedures - Establish a corrective action system - Review results and act appropriately

12. Summary • Quality management. • ISO 9000 Certificate for quality management. • Methodology for an organization to obtain ISO 9000 Certificate.

13. Similarly, • ISO 14000 is a series of environmental management standards • A guideline or framework for organizations that need to systematize and improve their environmental management efforts. • Not designed to aid the enforcement of environmental laws and do not regulate the environmental activities of organizations. • Adherence to these standards is voluntary.