Presented by Dr. Joan Burtner Certified Quality Engineer Associate Professor and Chair

1. The Certified Quality Process Analyst Handbook 2nd editionChapter 1: Quality ConceptsAuthors: Christensen, Coombes-Betz, and Stein Presented by Dr. Joan Burtner Certified Quality Engineer Associate Professor and Chair Dept. of Industrial Engineering and Industrial Management Mercer University

2. Chapter 1 Overview • Quality planning • Quality standards, requirements, and specifications • Cost of quality • Quality documentation Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering

3. Responsibilities for Quality Planning • Top-level management is responsible for establishing the organization’s commitment to quality. • Typically the organization designates a group (often called the quality council) that acts as a steering committee for the corporate quality initiative. • The quality council is responsible for prioritizing improvement projects and making recommendations to management. Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering

4. Setting Goals and Objectives • SMART guidelines for goals and objectives • S = Specific • M = Measurable • A = Attainable • R = Realistic • T = Time-bound • SMART example: “To ensure that we are satisfying our customers, 90 percent of our customers will give us 5’s or 6’s on our customer satisfaction survey by January 2014.” page 4 of text • Link quality goals to: • Product satisfaction • Service satisfaction • Customer satisfaction • Cost of quality Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering

5. Deploying the Plan • Allocate resources • Designate personnel • Assign specific tasks • Provide equipment, materials, facilities, processes • Hold individuals accountable for implementing the plan • Identify measures of success • Are requirements met? • Are expectations met? • Is the customer satisfied? Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering

6. Quality Standards, Requirements, and Specifications • Quality assurance / total quality control philosophy led to quality standards • ISO 9000 • International standard for quality management systems • Successful companies anticipate customer requirements • Customer requirements are translated into specifications • Physical, measurable characteristics • Environmental, safety, maintainability requirements • May also be federal environmental standards Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering

7. Cost of Quality (COQ) • Cost of quality categories • Prevention • Appraisal • Internal • External • The total cost of quality equals the sum of the costs associated with the four categories listed above. Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering

8. Cost of Quality- Prevention • The costs of all activities specifically designed to prevent poor quality in products or services. • Examples • New product review • Quality planning • Supplier capability surveys • Process capability evaluations • Quality improvement team meetings • Quality improvement projects • Quality education and training Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering

9. Cost of Quality - Appraisal • The costs associated with measuring, evaluating, or auditing products or services to assure conformance to quality standards and performance requirements • Examples • Incoming and source inspection/test of purchased material • In-process and final inspection/test • Product, process, or service audits • Calibration of measuring and text equipment • Associated supplies and materials Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering

10. Cost of Quality - Internal • The costs resulting from products or services not conforming to requirements or customer/user needs. Failure costs occurring prior to delivery or shipment of the product … or the furnishing of a service …to the customer • Examples of internal failure • Scrap • Rework • Re-inspection • Retesting • Material review • Downgrading Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering

11. Cost of Quality - External • The costs resulting from products or services not conforming to requirements or customer/user needs. Failure costs occurring after delivery or shipment of the product … and during or after furnishing of a service …to the customer • Examples of external failure • Processing customer complaints • Customer returns • Warranty claims • Product recalls Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering

12. Quality Documentation • Three purposes • Guide individuals in the performance of their duties • Standardize the work processes throughout the organization • Provide a source of evidence regarding practices See separate PowerPoint on course web site. Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering