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QUALITY MANAGEMENT AND TECHNIQUES

QUALITY MANAGEMENT AND TECHNIQUES. WHY QUALITY - the requirements -. WHY QUALITY. Linking Quality to Business Performance Quality to: Customers (internal and external) Service / Product Providers Stakeholders Society. The External Customers. Also the internal customers

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QUALITY MANAGEMENT AND TECHNIQUES

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  1. QUALITY MANAGEMENT AND TECHNIQUES WHY QUALITY- the requirements -

  2. WHY QUALITY • Linking Quality to Business Performance • Quality to: • Customers (internal and external) • Service / Product Providers • Stakeholders • Society

  3. The External Customers Also the internal customers The person who receives your work The person who receives instructions from you Who is the customer? BUT

  4. The External Customers Also the internal customers The person who receives your work The person who receives instructions from you Who is the customer? Q1: Identify the types of external customers Q2: Are all the different types of customers treated the same? BUT

  5. The External Customers Also the internal customers The person who receives your work The person who receives instructions from you Who is the customer? Q1: List the internal customers who you have to relate to every week. Q2: What product do you deliver to your internal customer? Q3: Identify who your internal suppliers are, and what product they deliver to you. BUT

  6. THE KANO MODEL OF QUALITY • The Kano Model of Customer (Consumer) Satisfaction classifies product attributes based on how they are perceived by customers and their effect on customer satisfaction. These classifications are useful for guiding design decisions in that they indicate when good is good enough, and when more is better. Kano product characteristics can be classified as: • Threshold / Basic attributesAttributes which must be present in order for the product to be successful, can be viewed as a 'price of entry'. However, the customer will remain neutral towards the product even with improved execution of these aspects. • One dimensional attributes (Performance / Linear)These characteristics are directly correlated to customer satisfaction. Increased functionality or quality of execution will result in increased customer satisfaction. Conversely, decreased functionality results in greater dissatisfaction. Product price is often related to these attributes. • Attractive attributes (Exciters / Delighters)Customers get great satisfaction from a feature - and are willing to pay a price premium. However, satisfaction will not decrease (below neutral) if the product lacks the feature. These features are often unexpected by customers and they can be difficult to establish as needs up front. Sometimes called unknown or latent needs.

  7. THE KANO MODEL OF QUALITY Excitement Quality (unspoken) Customer Satisfaction Degree of Achievement Spoken Performance Basic Quality(unspoken) Adapted from Kano et al (1984)

  8. THE KANO MODEL OF QUALITY Please mark where is your organization on this model. Excitement Quality (unspoken) Customer Satisfaction Degree of Achievement Spoken Performance Basic Quality(unspoken) Adapted from Kano et al (1984)

  9. Reinforce your understanding ! Question • Make a list of all the standard things you would want when you book a holiday. You should list what you would expect from a good holiday organization. • Now make a list of all the things that would delight you when you book a holiday. This list should assume that your standard requirements have been met.

  10. QUALITY PHILOSOPHIES Inspection [1950’s] Quality Control [1960’s] Total Quality [1980’s] Quality Assurance [1970’s] Continuous Improvement [1990’s] Knowledge Management [2000’s]

  11. Rework Inspector Business Process Good CUSTOMER Bad Scrap INSPECTION • After-the-fact screening • Expensive • Fallible • Internal and introspective

  12. Rework Inspector Business Process Good CUSTOMER Bad Scrap INSPECTION Do you do this in your organization? To what extent? • After-the-fact screening • Expensive • Fallible • Internal and introspective

  13. Rework Inspector Good Business Process CUSTOMER Bad Scrap Problems with the Inspection Model • Too late • 100% routine inspection doesn’t work • Expensive • Inspector • Scrap, rework, unhappy customers • Creates a barrier between the operator and the customer

  14. Alternatives to 100% Inspection • What is worse than 100% routine inspection?

  15. Alternatives to 100% Inspection • What is worse than 100% routine inspection? • 200% routine inspection!

  16. Alternatives to 100% Inspection • Application of Statistical Process Control • Developed from 1924 by Dr Walter Shewhart, Bell Telephone Laboratories, U.S.A. • Book “Economic Control of Quality of Manufactured Product” published in 1931

  17. QUALITY CONTROL • Self-inspection • Greater process control • Drawing control systems • Product testing Business Process S P C Good Product CUSTOMER

  18. QUALITY CONTROL In Process Quality Control • Self-inspection • Greater process control • Drawing control systems • Product testing Business Process S P C Good Product CUSTOMER How to do this ?

  19. GLOBAL QUALITY EXPERIENCE • Japan – Quality (1950’s) • Japan – Total Quality (1960’s) • USA – Pacific Basin …Europe (1980’s) • Developing Countries (1990’s)

  20. QUALITY GURUS – The American

  21. DEMING’S DEADLY DISEASES • A lack of constancy of purpose • Emphasis on short-term profits • Evaluation of performance, merit-rating, or annual preview • Mobility of management • Management by use only of visible figures, with little or no consideration of unknown or unknowable figures “Hope for instant pudding” “Our QC department takes care of all quality problems”

  22. CROSBY’S FOUR ABSOLUTES • Quality is defined as conformance to requirements, not as ‘goodness’ • The system for causing quality is prevention, not appraisal • The performance standard is Zero Defects, not ‘that’s close enough’ • The measurement of quality is the Price of Non-conformance, not indices

  23. QUALITY GURUS - THE JAPANESE

  24. WHY ZERO DEFECTS? Ask yourself! Is it necessary to go for ZERO defects? Why isn’t 99.9% good enough? It is impossible to be 100% defect free! BUT IS IT? Here are some examples of what life would be like if 99.9% were good enough.

  25. WHY ZERO DEFECTS? • Five minutes of unsafe drinking water every month! • Two unsafe landings per week at world major airports! • Twenty thousand incorrect drug prescriptions every year! • Fifty newborn babies dropped at birth by doctors/nurses every months! • Twenty-two thousand checques deducted from wrong bank accounts each day! • Five hundred incorrect surgical operations each month! • Thirty-two thousand missed heartbeats per person every year!

  26. WHY ZERO DEFECTS? • Five minutes of unsafe drinking water every month! • Two unsafe landings per week at world major airports! • Twenty thousand incorrect drug prescriptions every year! • Fifty newborn babies dropped at birth by doctors/nurses every months! • Twenty-two thousand checques deducted from wrong bank accounts each day! • Five hundred incorrect surgical operations each month! • Thirty-two thousand missed heartbeats per person every year! Can you share with us any similar experience !

  27. WHY ZERO DEFECTS? Suddenly the quest for ZERO defects makes a lot more sense!

  28. Thank You

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