Week 02A – Management of Quality ( Ch 6)

1. SJSU Bus 140 - David Bentley 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

2. SJSU Bus 140 - David Bentley What’s your definition of quality? • High price? • Reliable? • Attractive? • Durable? • Other?

3. SJSU Bus 140 - David Bentley Dimensions of Quality (Goods)- David Garvin • Performance • Aesthetics • Special features • Safety • Reliability • Durability • Perceived quality • Service after sale

4. SJSU Bus 140 - David Bentley Dimensions of Quality (Service)(Parasuraman, Zeithamel, and Berry) • Tangibles • Service Reliability • Responsiveness • Assurance • Empathy • Availability • Professionalism • Timeliness • Completeness • Pleasantness

5. SJSU Bus 140 - David Bentley 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

6. SJSU Bus 140 - David Bentley 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”

7. SJSU Bus 140 - David Bentley 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

8. SJSU Bus 140 - David Bentley 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

9. SJSU Bus 140 - David Bentley 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

10. SJSU Bus 140 - David Bentley Quality Gurus / Pioneers - 2 • 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

11. SJSU Bus 140 - David Bentley Quality Gurus / Pioneers - 3 • 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

12. SJSU Bus 140 - David Bentley Quality Gurus / Pioneers - 4 • 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 improvementhttp://www.asq.org

13. SJSU Bus 140 - David Bentley Quality Gurus / Pioneers - 5 • 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

14. SJSU Bus 140 - David Bentley Cost of Quality (Juran/Feigenbaum)

15. SJSU Bus 140 - David Bentley Quality Gurus / Pioneers - 6 • 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 behavioralchange

16. SJSU Bus 140 - David Bentley Quality Gurus / Pioneers - 7 • 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”

17. SJSU Bus 140 - David Bentley Quality Gurus / Pioneers - 8 • Genichi Taguchi (1924-2012) • Emphasized variationreduction • 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

18. SJSU Bus 140 - David Bentley Awards & Prizes • Deming Prize • Awarded by Union ofJapanese 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

19. SJSU Bus 140 - David Bentley 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

20. SJSU Bus 140 - David Bentley Value of Awards & Prizes • Shows effort • Largely dependent on money spent • Used in advertising • Doesn’t reflect customer view

21. SJSU Bus 140 - David Bentley ISO International Organization For Standardization

22. SJSU Bus 140 - David Bentley 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)

23. SJSU Bus 140 - David Bentley 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

24. SJSU Bus 140 - David Bentley 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 recognizeachievement through prizes and certification

25. SJSU Bus 140 - David Bentley 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

26. SJSU Bus 140 - David Bentley 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

27. SJSU Bus 140 - David Bentley Poka-Yoke Examples (from John Grout’s Poka-Yoke Page)(refer to www.campbell.berry.edu/pokayoke) mod. 09/15/02 DAB

28. SJSU Bus 140 - David Bentley Other TQM Points • Continual improvement (“kaizen”) • Competitive benchmarking • Employee enablement • Use of teams • Training • Extension to suppliers • Traditional vs. TQM cultures

29. SJSU Bus 140 - David Bentley 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

30. SJSU Bus 140 - David Bentley 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

31. SJSU Bus 140 - David Bentley 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

32. SJSU Bus 140 - David Bentley 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 * * * * * *

33. SJSU Bus 140 - David Bentley Histogram Displays large amounts of data that are difficult to interpret in tabular form Shows centering, variation, and shape Illustrates the underlying distribution of the data Provides useful information for predicting future performance Helps to answer the question “Is the process capable of meeting requirements?

34. SJSU Bus 140 - David Bentley 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

35. SJSU Bus 140 - David Bentley 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

36. SJSU Bus 140 - David Bentley 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 * * * * * * *

37. SJSU Bus 140 - David Bentley 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 * * * * * * *

38. SJSU Bus 140 - David Bentley Process Improvement Sequence - 1 • Management responsibility • Develop process improvement plan • Determine process or area to examine • Form and train Process/Quality Improvement Team

39. SJSU Bus 140 - David Bentley Process Improvement Sequence - 2 • Team: use coarse tools • Process flowchart • Check sheets and histograms • Pareto analysis <--- (iterative • Fishbone chart ---> steps)

40. SJSU Bus 140 - David Bentley Process Improvement Sequence - 3 • Team: use fine tools • Process control charts • Run diagrams • Scatter diagrams • Failsafing

41. SJSU Bus 140 - David Bentley Process Improvement Sequence - 4 • Team • Determine process changes • Implement pilot process improvement • Measure and evaluate results • Repeat if results unsatisfactory; deploy full implementation if results satisfactory

42. SJSU Bus 140 - David Bentley 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

43. SJSU Bus 140 - David Bentley 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

44. SJSU Bus 140 - David Bentley 5W2H Approach • What? Subject • Why? Purpose • Where? Location • When? Timing/sequence • Who? People involved • How? Method • How much? Cost/impact

45. SJSU Bus 140 - David Bentley Six Sigma

46. SJSU Bus 140 - David Bentley 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

47. SJSU Bus 140 - David Bentley 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

48. SJSU Bus 140 - David Bentley 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 Welchin 1995 • Grown to be an integrated strategy for attaining extremely high levels of quality

49. SJSU Bus 140 - David Bentley What is Six-Sigma?

50. SJSU Bus 140 - David Bentley Percent Not Meeting Specifications • +1Σ = 32% • +2Σ = 4.5% • +3Σ = 0.3% • +6Σ = 0.00034%