Quality Management: Introduction

1. Quality Management:Introduction Presented by: Dr. Husam Arman

2. Outline • What is quality? • Evolution of quality management • Quality tools • TQM defined

3. Quality

4. What Is Quality? • Merriam Webster • a degree of excellence • American Society for Quality • totality of features and characteristics that satisfy needs without deficiencies • Consumer’s and producer’s perspective

5. What Is Quality:Customer’s Perspective • Fitness for use • how well product or service does what it is supposed to • Quality of design • designing quality characteristics into a product or service • A Mercedes and a Ford are equally “fit for use,” but with different design dimensions.

6. Dimensions of Quality:Manufactured Products • Performance • basic operating characteristics of a product; how well a car handles or its gas mileage • Features • “extra” items added to basic features, such as a stereo CD or a leather interior in a car • Reliability • probability that a product will operate properly within an expected time frame; that is, a TV will work without repair for about seven years

7. Dimensions of Quality:Manufactured Products • Conformance • degree to which a product meets pre–established standards • Durability • how long product lasts before replacement; with care • Serviceability • ease of getting repairs, speed of repairs, courtesy and competence of repair person

8. Dimensions of Quality:Manufactured Products • Aesthetics • how a product looks, feels, sounds, smells, or tastes • Safety • assurance that customer will not suffer injury or harm from a product; an especially important consideration for automobiles • Perceptions • subjective perceptions based on brand name, advertising, and like

9. Dimensions of Quality: Services • Time and timeliness • how long must a customer wait for service, and is it completed on time? • is an overnight package delivered overnight? • Completeness: • is everything customer asked for provided? • is a mail order from a catalogue company complete when delivered?

10. Dimensions of Quality:Services (cont.) • Courtesy: • how are customers treated by employees? • are catalogue phone operators nice and are their voices pleasant? • Consistency • is same level of service provided to each customer each time? • is your newspaper delivered on time every morning?

11. Dimensions of Quality:Services (cont.) • Accessibility and convenience • how easy is it to obtain service? • does service representative answer your calls quickly? • Accuracy • is service performed right every time? • is your bank or credit card statement correct every month? • Responsiveness • how well does company react to unusual situations? • how well is a telephone operator able to respond to a customer’s questions?

12. What Is Quality:Producer’s Perspective • Quality of conformance • making sure product or service is produced according to design • if new tires do not conform to specifications, they wobble • if a hotel room is not clean when a guest checks in, hotel is not functioning according to specifications of its design

13. Meaning of Quality (Summary)

14. What Is Quality:A Final Perspective • Customer’s and producer’s perspectives depend on each other • Producer’s perspective: • production process and COST • Customer’s perspective: • fitness for use and PRICE • Customer’s view must dominate

15. Definitions of Quality • Transcendent definition: excellence • Product-based definition: quantities of product attributes • User-based definition: fitness for intended use • Value-based definition: quality vs. price • Manufacturing-based definition: conformance to specifications

16. transcendent & product-based user-based needs Marketing Customer value-based Design products and services manufacturing- based Manufacturing Distribution Information flow Product flow Quality Perspectives

17. Evolution of Quality Management: Quality Gurus • Walter Shewart • In 1920s, developed control charts • Introduced term “quality assurance” • W. Edwards Deming • Developed courses during World War II to teach statistical quality-control techniques to engineers and executives of companies that were military suppliers • After war, began teaching statistical quality control to Japanese companies • Joseph M. Juran • Followed Deming to Japan in 1954 • Focused on strategic quality planning • Quality improvement achieved by focusing on projects to solve problems and securing breakthrough solutions

18. Evolution of Quality Management: Quality Gurus • Armand V. Feigenbaum • In 1951, introduced concepts of total quality control and continuous quality improvement • Philip Crosby • In 1979, emphasized that costs of poor quality far outweigh cost of preventing poor quality • In 1984, defined absolutes of quality management—conformance to requirements, prevention, and “zero defects” • Kaoru Ishikawa • Promoted use of quality circles • Developed “fishbone” diagram • Emphasized importance of internal customer

19. Evolution of Quality Management: Quality Gurus • The Taguchi Loss Function Loss Loss Loss Function No Loss LSL USL LSL USL Target

20. Deming’s 14 Points Create constancy of purpose Adopt 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 Eliminate fear among employees Eliminate barriers between departments Eliminate slogans and exhortations

21. Deming’s 14 Points (cont.) • Remove numerical standards • Enhance worker pride • Institute vigorous training and education programs • Develop a commitment from top management to implement the above 13 points

22. Deming Wheel: PDCA Cycle

23. Short case – deliberate defectives It concerns a plant in Ontario, Canada, of IBM, the computer company. It ordered a batch of components from a Japanese manufacturer and specified that the batch should have an acceptable quality level (AQL) of three defective parts per thousand. When the parts arrived in Ontario they were accompanied by a letter which expressed the supplier’s bewilderment at being asked to supply defective parts as well as good ones. The letter also explained that they had found it difficult to make parts which were defective, but had indeed managed it. These three defective parts per thousand had been included and were wrapped separately for the convenience of the customer.

24. Shift to Quality Isolated Economies Global Economy Period of change from quantity to quality Focus on quality Focus on quantity Pre-World War II 1945 1990’s

25. History of Quality Paradigms • Customer-craft quality paradigm: • design and build each product for a particular customer. • producer knows the customer directly. • Mass production and inspection quality paradigm: • focus on designing and building products for mass consumption. • larger volumes will reduce costs and increases profits. • push products on the customer (limit choices). • quality is maintained by inspecting and detecting bad products. • TQM or “Customer Driven Quality” paradigm: • potential customers determine what to design and build. • higher quality will be obtained by preventing problems

26. Need for a New Strategy • Foreign markets have grown • Import barriers and protection are not the answer. • Consumers are offered more choices • They have become more discriminating. • Consumers are more sophisticated • They demand new and better products.

27. Why Quality Improvement? • Global Competition • Economic and political boundaries are slowly vanishing • The 1950’s slogan “Built by Americans for Americans” is very far from reality in the 2000’s.

28. Why Quality Improvement? • It pays • Less rework, fewer mistakes, fewer delays, and better use of time and materials

29. How Do Organizations Compete? • Most common competitive measures: • Quality (both real and perceived) • Cost • Delivery (lead time and accuracy) • Other measures • safety, • employee morale, • product development (time-to-market, innovative products)

30. Passive / Reactive Setting acceptable quality levels Inspecting to measure compliance Proactive / Preventive Design quality in products and processes Identify sources of variation (processes and materials) Monitor process performance Contrasting Approaches

31. The Quality Hierarchy Incorporates QA/QC activities into company-wide system aimed at satisfying the customer Total Quality Management Prevention SPC Actions to insure products or services conform to company requirements Quality Assurance Operational techniques to make inspection more efficient and to reduce the costs of quality. Quality Control Detection SQC Inspection Inspect products

32. TQM as a natural extension of earlier approaches to quality management

33. Quality tools • Process Flow Chart • Cause-and-Effect Diagram • Check Sheet • Pareto Analysis • Histogram • Scatter Diagram • Statistical Process Control Chart

34. TQM: Definition In trying to define TQM it is worth considering the relevance and meaning of the three words in it's title. • Total - The responsibility for achieving Quality rests with everyone in the business no matter what their function. • It recognizes the necessity to develop processes across the business, that together lead to the reliable delivery of exact, agreed customer requirements. This will achieve the most competitive cost position and a higher return on investment.

35. TQM: Definition • Quality - The prime task of any business is to understand the needs of the customer, then deliver the product or service at the agreed time, place and price, on every occasion. This will retain current customers, assist in acquiring new ones and lead to a subsequent increase in market share.

36. TQM: Definition • Management - Top management lead the drive to achieve quality for customers, by communicating the business vision and values to all employees; ensuring the right business processes are in place; introducing and maintaining a continuous improvement culture.

37. TQM : Definition • An integrated, principle-based, organization-wide strategy for improving product and service quality • TQM is both a philosophy and a set of guiding principles for managing an organization to the benefit of all stakeholders. • The eight quality management principles are defined in BS EN ISO9000 as: • Customer focus. Organizations depend on their customers and therefore should understand current and future customer needs, meet customer requirements and strive to exceed customer expectations

38. TQM : Definition • Leadership. Leaders establish unity of purpose and direction of the organization. They should create and maintain the internal environment in which people can become fully involved in achieving the organization’s objectives. • Involvement of people. People at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organization’s benefit. • Process approach. A desired result is achieved more efficiently when activities and related resources are managed as a process.

39. TQM : Definition • System approach to management. Identifying, understanding and managing interrelated processes as a system contributes to the organization’s effectiveness and efficiency in achieving its objective. • Continual improvement. Continual improvement of the organization’s overall performance should be a permanent objective of the organization. • Factual approach to decision-making. Effective decisions are based on the analysis of data and information. • Mutually beneficial supplier relationships. An organization and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value.