BKAM3063

TOPIC 8: METHOD OF QUALITY MEASUREMENT 

PREPARED FOR:

MDM. HAZELINE BT AYOUP 

PREPARED BY:

CHUA HUI PIN 219140

CHIAM SEOW SIAH 219227

NUR NATASYA BT MHD FISHAH 228202 NURUL IZZATY BT ABDUL RAZAK 228690

TOTAL QUALITY MANAGEMENT

oManagement systems that focus on quality and provides a framework for implementing effective quality and productivity initiatives that can increase the profitability and competitiveness of organizations.

oManagement methods used to enhance quality and productivity in business organizations.

History of TQM

1920

• Principles of scientific management swept through United States industry.

• Worker productivity could be impacted by participation.

1930

• Walter Shewhart developed the methods for statistical analysis and control of quality.

• W. Edwards Deming taught methods for statistical analysis and control of quality to Japanese engineers and executives in 1950s.

1968

• Japanese named their approach to total quality companywide quality control.

• Kaoru Ishikawa make a synthesis of the philosophy contributed to Japan’s ascendancy as a quality leader.

The eight elements of TQM

Integrity Ethics

Trust Training

Leadership Teamwork

Recognition Communication

Making TQM work

Participative management which is continuous process improvement and the utilization of teamso Participative management refers to the intimate

involvement of all members of a company in the management process.

o This technique improves upper management's grasp of operations and more importantly, is an important motivator for workers who begin to feel like they have control and ownership of the process in which they participate.

Continuous process improvement

o Entails the recognition of small, incremental gains toward the goal of total quality.

o This concept described a long-term approach by managers and the willingness to invest in the present for benefits that manifest themselves in the future.

Teamwork

o Involves the organization of cross-functional teams within the company.

o Helps workers to share knowledge, identify problems and opportunities that derive a comprehensive understanding of their role in the overall process and align their work goals with those of the organization.

Practicing TQM

• Quality and price are central in this philosophy.

• In an environment where only price matters and consumers meekly put up with the successive removal of services or features in order to get products as cheaply as possible, the strategy will be less successful.

KAIZENo “Continuous improvement" by

doing little things better and setting and achieving increasingly higher standards.

o Focuses on quality that is the aim of daily life, quality which needs the gradual and infinite improvement and pursuing the perfection.

History of Kaizen

Principles of Kaizen

Say no to status quo, implement new methods

and assume they will work

If something is wrong, correct it

Before making decisions, ask "why" five times to get to the root cause. (5

Why Method)

Empower everyone to take part in problems

solving

Be economical. Save money through small

improvements and spend the saved money on

further improvements

Abolish old, traditional concepts

Improve everything continuously

Accept no excuses and make things happen

Get information and opinions from multiple

people

Remember that improvement has no

limits. Never stop trying to improve

Making Kaizen work

Kaizen’s Ten-Step Process: Define the problem Document the current situation Visualize the ideal situation Define measurement targets Brainstorm solutions to the problem Develop Kaizen plan Implement plan Measure, record and compare results to targets Prepare summary documents Create short term action plan, on-going standards and

sustaining plan Empowering Process Change

Practicing KaizenKaizen aims for improvements in productivity, effectiveness, safety, and waste reduction and those who follow the approach often find a whole lot more in return:

Less waste - inventory is used more efficiently as are employee skills.People are more satisfied - they have a direct impact on the way things are done.Improved commitment - team members have more of a stake in their job and are more inclined to commit to doing a good job.Improved retention - satisfied and engaged people are more likely to stay.Improved competitiveness - increases in efficiency tend to contribute to lower costs and higher quality products.Improved consumer satisfaction - coming from higher quality products with fewer faults.Improved problem solving - looking at processes from a solutions perspective allows employees to solve problems continuously.Improved teams - working together to solve problems helps build and strengthen existing teams.

5S (FIVE S)

Seiri

Seiton

SeisoSeiketsu

Shitsuke

ISO• ISO is an international standard-setting body

composed of representatives from various national standards organizations.

• An independent, non-governmental organization, the members of which are the standards organization of the 164 member countries.

• It was founded on 23 February 1947 in Geneva, Switzerland.

• ISO is the world's largest developer of voluntary international standards.

• ISO covers standardization in all fields excluding electrical and electronic engineering and telecommunications

ISO 9000 FAMILY OF STANDARDS• The ISO 9000 standards are a set of international

quality management system standards and guidelines.

• It is designed to help organizations ensure that they meet the needs of customers and other stakeholders while meet statutory and regulatory requirements.

• ISO 9000 is a flexible standard that lays down requirements for an organization to follow, but allows the organization to fulfill the requirements any way they choose.

• The ISO 9000 family of standards is the exact same standard across the globe even though they are called by different names. Ex: Australia - AS/NZS ISO 9001:2008

EVOLUTION OF ISO 9000 STANDARDS

2015 versionThe scope of the standard has not changed. However, the structure and core terms were modified to allow it to integrate more easily

with other standards. It is less prescriptive than its predecessors and focuses on performance.

2008 versionISO 9001:2008 in essence re-narrates ISO 9001:2000 and some changes intended to improve consistency with ISO 14001:2004There were no new requirements.

2000 versionISO 9001:2000 replaced all three former standards of 1994 issue, ISO 9001, ISO 9002 and ISO 9003

The goal was to improve effectiveness via process performance metrics.

1994 versionISO 9000:1994 emphasized quality assurance via preventive actions, instead of just checking final product

1987 versionISO 9000:1987 had the same structure as the UK Standard BS 5750, with three "models" (ISO 9001:1987, ISO 9002:1987 and ISO 9003:1987). The emphasis tended to be placed on conformance with procedures rather than the overall process of management

CHOOSING BETWEEN 2008 AND 2015

ISO 9001:2008

• We have an existing system compliant to the 2008 version and we wish to gain certification before changing our QMS to the new standard.

• We would like to attain certification now and allow industry understanding to develop before adopting the new standard.

ISO 9001:2015

• We want to implement the current best practice and future proof the business systems.

• Demonstrate to customers and stakeholders that the company is up to date.

• We are integrating the QMS with environmental management system and would like to use Annex SL to make this process easier.

• The certificate have the full three year duration rather than expiring in September 2018, thus giving us better value for money.

ISO 9000 SERIES QUALITY MANAGEMENT PRINCIPLES

• Customer focus• Good leadership• Involvement of people• Process approach to quality

management• Management system approach• Continual Improvement• Factual approach to decision making• Supplier relationships

AUDITING• Two types of auditing are required to

become registered to the standard: – auditing by an external certification body

(external audit)– audits by internal staff (internal audits).

• The aim is a continual process of review and assessment to verify that the system is working as it is supposed to, to find out where can improve and to correct or prevent problems identified.

CERTIFICATION• ISO does not certify organizations itself.

Numerous certification bodies exist to issue ISO 9001 compliance certificates.

• Although commonly referred as "ISO 9000" certification, the actual standard to which an organization's QMS can be certified is ISO 9001:2008.

• An organization is audited based on an extensive sample of its functions, products, services and processes. The auditor presents a list of problems (defined as "nonconformities", "observations", or "opportunities for improvement") to management.

• If there are no major nonconformities, the certification body will issue a certificate.

• If major nonconformities are identified, the organization will present an improvement plan.

• Once the certification body is satisfied that the organization has carried out sufficient corrective action, it will issue a certificate.

• An ISO 9001 certificate is not a once-and-for-all award, but must be renewed at regular intervals (once every three years)

• There are no grades of competence within ISO 9001 (certified or not).

EXAMPLE OF ISO 9000 FAMILY OF STANDARDS

• Gives guidance on the application of quality management in projects.

ISO 10006:2003

• Provides guidelines for the application of the acquisition, supply, development, operation and maintenance of computer software and related support services.

ISO/IEC 90003:2004

• Represents the requirements for a comprehensive quality management system for the design and manufacture of medical devices.

• It is a stand-alone standard because it is relevant to medical devices manufacturers.

ISO 13485:2003

ADVANTAGES / BENEFITSBenefits to the Organization Benefits to the Customers

Creates a more efficient, effective operation - save time, money and resources

Increases customer satisfaction and retention

Promotes international trade Increases profit Reduces waste and increases productivity Provides continuous assessment and

improvement Improved stakeholder relationships

Improved quality and service Delivery on time Right first time attitude Fewer returned products and

complaints

CRITICISMS OF ISO 9000

• A common criticism is the amount of money, time and paperwork required for registration.

• The risks and uncertainty of not knowing if there are direct relationships to improved quality, and what kind and how many resources will be needed.

• Reliance on the specifications of ISO 9001 does not guarantee a successful quality system.

Statistical Process Control SPC is a way of using statistical methods and

visual display of data to allow us to understand the variation in a process.

By understanding the types of variation in the process we can make improvements to the process that we predict will lead to better outcomes.

SPC can also then be used to see whether our predictions were correct.

Understanding variation

Common cause variation- Which is intrinsic to the process and will always be present.

Special cause variation- Which stems from external sources and indicates that the process is out of statistical control

Run Chart Run charts are graphs where a measure is

plotted over time, often with a median also shown.

Run charts are a powerful tool for detecting non-random variation and so sufficient for most improvement projects.

However they are not so sensitive in detecting special causes.

Control Charts

A control chart is a graphical and analytic tool for monitoring process variation.

The natural variation in a process can be quantified using a set of control limits.

Control limits help distinguish common-cause variation from special-cause variation.

Stability, predictability and capability

If only common cause variation is seen then we say that a process is stable. This makes it predictable (within a range of random variation) because if it was stable in the past we can be confident it will be stable in the future.

Even a stable and predictable process may not deliver acceptable performance.  A process is capable if it is reproducibly delivering the required outcomes. Control charts can be used to determine if a process is capable.

Implications for Improvement

If a process is stable (only showing common cause variation) but not capable, we need to make a change if we wish to see an improvement.

If we also detect special causes we need to investigate what might be happening and learn from them.  Not all special cause variation is bad.  If we see a special cause which shows good performance that might be something we'd want to investigate, with a view to testing as a change to the process.

Continue…

If we seek to improve a process by making a change we are intending to introduce a special cause. However, if we see special causes that are causing poor performance we will want to remove them.

HISTORY OF SX SIGMA

Developed by Bill Smith, a senior engineer of Motorola in 1986

Defined as comprehensive and flexible system for achieving, sustaining and maximizing business success

Sir Bill Smith has introduced this quality improvement methodology to Motorola.

Six Sigma Process

Business model that aims to continue the enhancement of a product based on customer standards

Achieved through constant motivation of teams and employees in maintaining the good performance

Emphasizes the implementation of company-wide activities in order to motivate the designated employees and teams for a higher performance.

Very beneficial when it comes to making sure that quality in products is achieved at a faster rate and maintain customer satisfaction

Define • Defining the goals, customer, project scope, problem or opportunity

Measure • Identify performance measure, collect data, evaluate current process performance

Analyse • Develop and test theories related to root causes of

problem • Identify causes and effect relationship

Improve

Control

• Develop and evaluate solutions to reduce gap between desired process performance and current performance

• Monitor process to sustain improved performance

• Ensure that problems do not resurface

Reducing Lead Time

A Six Sigma approach to reducing lead time would be to compare

various customer needs with the time it takes to incorporate these features into a

product, and determine how to cut

lead times with minimal effect on customer needs.

Reducing Inventory

The project team introducing efficient

systems of communication

between suppliers and different departments,

so that the company can operate a "just in time" delivery system

that minimizes the need for inventory.

Labour Efficiency

Six Sigma can be applied to maximize labor efficiency .The team will take the

detailed analysis to find out if any employees are mismatched with their positions, and

transfer them to positions that they are qualified to work more

efficiently.

Six Sigma Process

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