Quality Management

1. Quality Management

2. Definitions of Quality Quality is the ability of a product or service to consistently meet or exceed customer expectations. Quality is a service’s and product’s fitness for its intended use

3. Importance of Quality Sales Gains • Improved response • Higher Prices • Improved reputation • Increased volume Improved Quality Increased Profits Reduced Costs • Increased productivity • Lower rework and scrap costs • Lower warranty costs

4. Dimensions of Quality (1 of 2) • Performance – basic operating characteristics of the product/service • Aesthetics - appearance, feel, sound, smell, taste • Special Features - extra items added to the basic characteristics • Conformance - how well product/service conforms to customer’s expectations, meeting preestablished standards • Reliability - consistency of performance, probability product will operate over time Quality

5. Dimensions of Quality (2 of 2) • Durability – useful life of the product/service. Life span before replacement • Safety- freedom from injury or harm • Perceived Quality – subjective perceptions based on brand name, advertising, etc. indirect evaluation of quality (e.g. reputation) • Serviceability – service after sale, ease of getting repairs, speed & competence of repairs

6. Examples of Quality Dimensions (1 of 2)

7. Examples of Quality Dimensions (2 of 2)

8. Reliability Responsiveness Tangibles Competence Accessibility Security Courtesy © 1995 Corel Corp. Credibility Communication Dimensions of Service Quality Consistency Under-standing Completeness Accuracy Time, timeliness Convenience

9. Dimensions of Service Quality (examples)

10. Costs of Quality (1 of 2) Cost of achieving good quality • Appraisal Costs Costs incurred to evaluate the products, costs of activities designed to uncover defects, inspection and testing, test equipment, operator • Prevention Costs Costs incurred to reduce the potential for defects, all TQ training, planning, product design, customer assessment, process control, and quality improvement costs to prevent defects from occurring

11. Costs of Quality(2 of 2) Cost of poor quality-failure costs - costs incurred by defective parts/products or faulty services. • Internal Failure Costs Costs incurred to fix problemsthat are detected before the product/service is delivered to the customer. (eg. scrap, rework on the defective parts, process failure, process downtime, price downgrading) • External Failure Costs All costs incurred to fix problems that are detected after the product/service is delivered to the customer.(customer complaints, product return, warranty, product liability, lost sales)

12. Quality–Cost Relationship • Increased prevention costs lead to decreased failure costs • Improved quality leads to increased sales and market share • Quality improvement at the design stage • Higher quality products can command higher prices

13. output input • Productivity = • Fewer defects increase output • Quality improvement reduces inputs Quality and Productivity

14. Determinants of Quality • Design (quality of) • Intention of designers to include or exclude features in a product or service • Conformance (quality of) • The degree to which goods or services conform to the intent of the designers, ensuring product or service produced according to design (degree to which the design specifications are met) Depends on: • Design of production process • Performance of machinery • Materials • Training

15. Other Determinants That Affect Quality • Production/operations system • Packaging and shipping • Marketing and sales • Value-added services • Quality Systems • Top management

16. Evolution of Quality Management • 1924 - Statistical process control charts • 1930 - Tables for acceptance sampling • 1940’s - Statistical sampling techniques • 1950’s - Quality assurance/TQC • 1960’s - Zero defects • 1970’s - Quality assurance in services

17. Quality Assurance vs. Strategic Approach • Quality Assurance • Emphasis on finding and correcting defects before reaching market • Strategic Approach • Proactive, focusing on preventing mistakes from occurring • Greater emphasis on customer satisfaction

18. The Quality Gurus • Walter Shewhart • “Father of statistical quality control” • W. Edwards Deming • Joseph M. Juran • Armand Feignbaum • Philip B. Crosby • Kaoru Ishikawa • Genichi Taguchi

19. Key Contributors to Quality Management

20. Total Quality Management T Q M

21. TQM • Encompasses entire organization, from supplier to customer • Stresses a commitment by management to have a continuing, company-wide drive toward excellence on all dimensions of products and services that are important to the customer • Can be defined as a philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.

22. TQM Throughout the Organization • Marketing, sales, research • Engineering • Purchasing • Human resources • Management • Packing, storing, shipping • After-sale support

23. Quality Principles (Elements of TQM) • Customer focus • Continuous improvement • Employee empowerment • Close relations with external suppliers • Team approach • Quality at the source • Supplier quality • Decision based on facts • Knowledge of TQM tools Yields: How to do what is important and to be accomplished

24. Employee Fulfillment • Empowerment • Organizational commitment Yields: Employees’ attitudes that they can accomplish what is important and to be accomplished

25. TQM and External Suppliers • Support of suppliers required to satisfy customer expectations • Single-sourcing • Partnering • Suppliers may be required to adopt quality programs or meet specific standards

26. Customer Satisfaction • Winning orders, loyal customers, repeated sales • Requires some form of measurement system • Customer surveys are widely used • Total customer satisfaction is often an organization’s overriding objective Yields: An effective organization with a competitive advantage

27. Achieving Total Quality Management CustomerSatisfaction Attitudes (e.g., Commitment) Employee Fulfillment How to Do Quality Principles What to Do Organizational Practices

28. Continuous Improvement • Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs to assure customer satisfaction • Involves all operations & work units • Other names • Kaizen (Japanese) • Zero-defects • Six sigma

29. Continuous Improvement: Shewhart’s PDCA Model 4.Act 1.Plan Institutionalize improvement, implement the plan Identify the problem and develop the plan for improvement 2.Do 3.Check Assess the plan; Is it working Implement the pan on a test basis

30. Select a process Document Study/document Evaluate Seek ways to Improve it Implement the Improved process Design an Improved process The Process Improvement Cycle

31. Six Sigma Quality • Statistically • Having no more than 3.4 defects per million • Conceptually • A philosophy and set of methods companies use to eliminate defects in their products and processes • Seeks to reduce variation in the processes that lead to product defects • The name, “six sigma” refers to the variation that exists within plus or minus six standard deviations of the process outputs • Requires the use of certain tools and techniques

32. Six Sigma Process • Define • Measure • Analyze • Improve • Control DMAIC

33. Employees and Quality Improvement • Employee involvement • Quality circles • Process improvement teams • Employee suggestions

34. Employee Empowerment • Getting employees involved in product & process improvements • 85% of quality problems are due to process & material • Techniques of employee empowerment • Support workers • Let workers make decisions • Build teams & quality circles © 1995 Corel Corp.

35. Quality at the Source The philosophy of making each worker responsible for the quality of his or her work.

36. Employee Empowerment Technique:Quality Circles • Group of 6-12 employees from same work area • Meet regularly to solve work-related problems • 4 hours/month • Facilitator trains & helps with meetings © 1995 Corel Corp.

37. Organization 8-10 members Same area Supervisor/moderator Training Group processes Data collection Problem analysis Presentation Implementation Monitoring Problem Identification List alternatives Consensus Brainstorming Solution Problem results Problem Analysis Cause and effect Data collection and analysis The Quality Circle Process

38. The TQM Approach • Find out what the customer wants • Design a product or service that meets or exceeds customer wants • Design processes that facilitates doing the job right the first time • Keep track of results • Extend these concepts to suppliers

39. Total Quality Management Customer defined quality Top management leadership Quality as a strategic issue All employees responsible for quality Continuous improvement Shared problem solving Statistical quality control Training & education for all employees

40. Deming’s Fourteen Points • Create consistency of purpose • Adapt philosophy of prevention • Cease mass inspection • Select a few suppliers based on quality • Constantly improve system and workers • Institute worker training • Instill leadership among supervisors

41. Deming’s Points - continued • Eliminate fear among employees • Break down barriers between departments • Eliminate slogans • Remove numerical quotas • Enhance worker pride • Institute vigorous training and education programs • Develop commitment from top management to implement these 13 points

42. Process 1 2 3 4 Dirt Old Temp Fault 1 2 3 4 5 x x x x x x x x x x x x x x x x UCL LCL Tools of TQM • Tools for organizing data, identifying problems generating ideas and improving the processes • Check sheet • Scatter diagram • Cause and effect diagram • Pareto charts • Process charts (Flow charts) • Run charts • Histograms • Statistical process control chart

43. COMPONENTS REPLACED BY LAB TIME PERIOD: 22 Feb to 27 Feb 2002 REPAIR TECHNICIAN: Bob TV SET MODEL 1013 Integrated Circuits |||| Capacitors |||| |||| |||| |||| |||| || Resistors || Transformers |||| Commands CRT | Check Sheet

44. Histogram Can be used to identify the frequency of quality defect occurrence and display quality performance Number of Lots 0 1 2 3 4 Defectsin lot

45. NUMBER OF CAUSE DEFECTS PERCENTAGE Poor design 80 64 % Wrong part dimensions 16 13 Defective parts 12 10 Incorrect machine calibration 7 6 Operator errors 4 3 Defective material 3 2 Surface abrasions 3 2 125 100 % Pareto Chart

46. 70 (64) 60 50 40 Percent from each cause 30 20 (13) (10) 10 (6) (3) (2) (2) 0 Poor Design Defective parts Operator errors Machine calibrations Defective materials Surface abrasions Wrong dimensions Causes of poor quality Pareto Chart

47. Process Chart • Shows sequence of events in process • Depicts activity relationships • Has many uses • Identify data collection points • Find problem sources • Identify places for improvement • Identify where travel distances can be reduced

48. SUBJECT: Request tool purchase Dist (ft) Time (min) Symbol Description Ñ Write order D lðo D Ñ On desk ¡ðo Ñ 75 To buyer D ¡ o è Ñ Examine D ¡ðn ¡ = Operation; ð = Transport; o = Inspect; D = Delay; Ñ = Storage Process Chart Example

49. Flow Chart No, Continue… Material Received from Supplier Inspect Material for Defects Defects found? Yes Can be used to find quality problems Return to Supplier for Credit

50. Y X Scatter Diagram