lecture 6- Final Managing Quality

8/7/2019 lecture 6- Final Managing Quality

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Operations ManagementOperations Management

Managing QualityManaging Quality

Muhammad Afaq Mazhar Muhammad Afaq Mazhar



Group Making ExerciseGroup Making Exercise

andandassignment of projectassignment of project

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Ten OM Strategy DecisionsTen OM Strategy Decisions

DesignDesign of Goods and Servicesof Goods and Services

Managing QualityManaging Quality

Process StrategyProcess Strategy

Location StrategyLocation Strategy

Layout StrategyLayout Strategy

HR strategyHR strategy

Supply Chain StrategySupply Chain Strategy Inventory ManagementInventory Management

SchedulingScheduling

MaintenanceMaintenance



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OutlineOutline

History of TQMHistory of TQM

QUALITY AND STRATEGYQUALITY AND STRATEGY

DEFINING QUALITYDEFINING QUALITY�� Implications of QualityImplications of Quality

�� Malcolm Baldrige National Quality AwardMalcolm Baldrige National Quality Award

�� Cost of Quality (COQ)Cost of Quality (COQ)

INTERNATIONAL QUALITY STANDARDSINTERNATIONAL QUALITY STANDARDS

�� ISO 9000ISO 9000

�� ISO14000ISO14000



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OutlineOutline -- ContinuedContinued

TOTAL QUALITY MANAGEMENTTOTAL QUALITY MANAGEMENT�� Continuous ImprovementContinuous Improvement

�� Employee EmpowermentEmployee Empowerment�� BenchmarkingBenchmarking

�� JustJust--inin--Time (JIT)Time (JIT)

�� Taguchi ConceptsTaguchi Concepts�� Knowledge of TQM ToolsKnowledge of TQM Tools



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TOOLS OF TQMTOOLS OF TQM�� Check sheetsCheck sheets

�� Scatter DiagramsScatter Diagrams�� CauseCause--andand--Effect DiagramEffect Diagram

�� Pareto ChartsPareto Charts

�� Flow ChartsFlow Charts

�� HistogramsHistograms

�� Statistical Process Control (SPC)Statistical Process Control (SPC)



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THE ROLE OF INSPECTIONTHE ROLE OF INSPECTION

�� When and Where to InspectWhen and Where to Inspect�� Source InspectionSource Inspection

�� Service Industry InspectionService Industry Inspection

�� Inspection of Attributes vsInspection of Attributes vsVariablesVariables

TQM IN SERVICESTQM IN SERVICES



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Learning ObjectivesLearning Objectives

When you complete this chapter, youWhen you complete this chapter, youshould be able to:should be able to:

Identify or DefineIdentify or Define::

�� QualityQuality

�� Malcolm Baldrige National QualityMalcolm Baldrige National Quality

AwardAward�� Taguchi ConceptsTaguchi Concepts



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Learning ObjectivesLearning Objectives -- continuedcontinued

When you complete this chapter, youWhen you complete this chapter, youshould be able to :should be able to :

ExplainExplain::�� Why quality is importantWhy quality is important

�� Total Quality Management (TQM)Total Quality Management (TQM)

�� Pareto chartsPareto charts

�� Process chartsProcess charts

�� Quality robust productsQuality robust products

�� InspectionInspection



Defining QualityDefining Quality

TQM system are driven by identifyingTQM system are driven by identifyingand satisfying customer needsand satisfying customer needs

Adopted by American Society of Adopted by American Society of QualityQuality

�� Totality of features and characteristic of Totality of features and characteristic of production or services that bear on itsproduction or services that bear on its

ability to satisfy stated or impliedability to satisfy stated or impliedneeds.needs.

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History of QualityHistory of Quality Roots of Total Quality Management (TQM) can be traced back toRoots of Total Quality Management (TQM) can be traced back to

early 1920s when statistical theory was first applied to productearly 1920s when statistical theory was first applied to productquality control.quality control.

Concept was further developed in Japan in the 40s led byConcept was further developed in Japan in the 40s led byAmericans, such as Deming,Americans, such as Deming, JuranJuran andand FeigenbaumFeigenbaum

InspectionInspection

�� In 1911, Frederick W. Taylor helped to satisfy this need.PublishedIn 1911, Frederick W. Taylor helped to satisfy this need.PublishedµThe Principles of Scientific Management¶ which provided aµThe Principles of Scientific Management¶ which provided a

framework for the effective use of people in industrial organisations.framework for the effective use of people in industrial organisations.One of Taylor¶s concepts was clearly defined tasks performed underOne of Taylor¶s concepts was clearly defined tasks performed understandard conditions. Inspection was one of these tasks andstandard conditions. Inspection was one of these tasks and

Was intended to ensure that no faulty product left the factory orWas intended to ensure that no faulty product left the factory orworkshopworkshop

Focuses on the product and the detection of problems in theFocuses on the product and the detection of problems in theproductproduct

Involves testing every item to ensure that it complies withInvolves testing every item to ensure that it complies withproduct specificationsproduct specifications

Is carried out at the end of the production process; and relies onIs carried out at the end of the production process; and relies on

specially trained inspectors.specially trained inspectors. 1111



ContdContd«.«. Quality Control and Statistical TheoryQuality Control and Statistical Theory

�� Dr W.Dr W. ShewhartShewhart developed the application of statisticaldeveloped the application of statisticalmethods to the management of quality during 1920s.methods to the management of quality during 1920s.

�� Made the first modern control chart and demonstratedMade the first modern control chart and demonstratedthat variation in the production process leads tothat variation in the production process leads tovariation in productvariation in product

�� Statistical Quality ControlStatistical Quality Control focuses on product and the detection and control of quality problems;focuses on product and the detection and control of quality problems;

involves testing samples and statistically infers compliance of allinvolves testing samples and statistically infers compliance of allproducts;products;

is carried out at stages through the production process; andis carried out at stages through the production process; and

Relies on trained production personnel and quality controlRelies on trained production personnel and quality controlprofessionalsprofessionals

�� Shewart¶sShewart¶s work was later developed by Deming, Dodgework was later developed by Deming, Dodgeandand RomingRoming.. However, manufacturing companies didHowever, manufacturing companies didnot fully utilise these techniques until the late 1940snot fully utilise these techniques until the late 1940s

��1212



ContdContd«..«.. Quality in JapanQuality in Japan

�� In 1940 invited a few quality gurus, such as Deming,In 1940 invited a few quality gurus, such as Deming, JuranJuran,,

andand FeigenbaumFeigenbaum to learn how to achieve produce innovativeto learn how to achieve produce innovativehigh quality productshigh quality products

�� In the 1950s, quality control and management developedIn the 1950s, quality control and management developedquickly and became a main theme of Japanese managementquickly and became a main theme of Japanese management

�� Quality circles started in the early 60sQuality circles started in the early 60s

�� A byA by--product of quality circles was employee motivation .product of quality circles was employee motivation .Workers felt that they were involved and heardWorkers felt that they were involved and heard

Total QualityTotal Quality

�� Term µtotal quality¶ was used for the first time in a paper byTerm µtotal quality¶ was used for the first time in a paper byFeigenbaumFeigenbaum at the first international conference on qualityat the first international conference on quality

control in Tokyo in 1969control in Tokyo in 1969�� Ishikawa also discussed µtotal quality control¶ in Japan, whichIshikawa also discussed µtotal quality control¶ in Japan, which

is different from the western idea of total quality. Accordingis different from the western idea of total quality. Accordingto his explanation, it means µcompanyto his explanation, it means µcompany--wide quality control¶ wide quality control¶ that involves all employees, from top management to thethat involves all employees, from top management to theworkers, in quality control.workers, in quality control.

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Contd....Contd.... Total Quality ManagementTotal Quality Management

�� In the 1980s to the 1990s, a new phase of quality control andIn the 1980s to the 1990s, a new phase of quality control and

management began.management began.

�� A typical definition of TQM includes phrases such as: customerA typical definition of TQM includes phrases such as: customerfocus, the involvement of all employees, continuousfocus, the involvement of all employees, continuousimprovement and the integration of quality management intoimprovement and the integration of quality management intothe total organisation. Although the definitions were allthe total organisation. Although the definitions were all

similar, there was confusion. It was not clear what sort of similar, there was confusion. It was not clear what sort of practices, policies, and activities needed to be implemented topractices, policies, and activities needed to be implemented tofit the TQM definitionfit the TQM definition

Quality Awards and Excellence ModelsQuality Awards and Excellence Models

�� In 1988In 1988 development of the Malcolmdevelopment of the Malcolm BaldrigeBaldrige Award in theAward in the

United StatesUnited States�� Developed by the United States government to encourageDeveloped by the United States government to encourage

companies to adopt the model and improve theircompanies to adopt the model and improve theircompetitivenesscompetitiveness

�� Today, hundreds of quality awards and several models existToday, hundreds of quality awards and several models existall over the world. Like 'Excellenceall over the world. Like 'Excellence Models'Models'

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ContdContd«..«..

Business ExcellenceBusiness Excellence�� TQM models are often called Business ExcellenceTQM models are often called Business Excellence

Models. Also, TQM itself is now often calledModels. Also, TQM itself is now often calledBusiness Excellence. This is to distinguish the ³newBusiness Excellence. This is to distinguish the ³newTQM´ from the past work on TQM.TQM´ from the past work on TQM.

�� There was confusion as to what TQM was in the 80sThere was confusion as to what TQM was in the 80sand early 90s. This was because any businessand early 90s. This was because any businessimprovement programme was becoming calledimprovement programme was becoming calledTQM. Therefore, the name TQM became tarnishedTQM. Therefore, the name TQM became tarnished

�� Business Excellence is really the same as TQM, butBusiness Excellence is really the same as TQM, butwith a more clearly defined approachwith a more clearly defined approach

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Ways in Which Quality CanWays in Which Quality CanImprove ProductivityImprove Productivity

Sales GainsSales Gains�� Improved responseImproved response

�� HigherPricesHigherPrices�� Improved reputationImproved reputation

Reduced CostsReduced Costs

�� Increased productivityIncreased productivity�� Lower rework and scrapLower rework and scrap

costscosts�� Lower warranty costsLower warranty costs

Increased

Profits

Improved

Quality



Flow of Activities for TQMFlow of Activities for TQM

Organizational Practice

Quality Principles

Employee fulfillment

Customer Satisfaction

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Organizational PracticesOrganizational Practices

LeadershipLeadership

Mission statementMission statement

Effective operating procedureEffective operating procedure Staff supportStaff support

TrainingTraining

Y iel ds: What is import ant and what Y iel ds: What is import ant and what is to be acc ompl ished is to be acc ompl ished



1919

Quality PrinciplesQuality Principles

Customer focusCustomer focus

Continuous improvementContinuous improvement

Employee empowermentEmployee empowerment BenchmarkingBenchmarking

JustJust--inin--timetime

Tools of TQMTools of TQMY iel ds: How to do what is import ant Y iel ds: How to do what is import ant and to be acc ompl ished and to be acc ompl ished



2020

Employment FulfillmentEmployment Fulfillment

EmpowermentEmpowerment

Organizational commitmentOrganizational commitment

Y iel ds: E mpl oyees¶ attitudes that Y iel ds: E mpl oyees¶ attitudes that they can acc ompl ish what isthey can acc ompl ish what isimport ant and to be acc ompl ished import ant and to be acc ompl ished



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Customer SatisfactionCustomer Satisfaction

Winning ordersWinning orders

Repeat customersRepeat customers

Y iel ds: An effec tive organiz ationY iel ds: An effec tive organiz ationwith a c ompetitive adv ant agewith a c ompetitive adv ant age



Implications of QualityImplications of Quality

Company ReputationCompany Reputation

Product LiabilityProduct Liability

�� Org held responsible for any defect inOrg held responsible for any defect inproductproduct

Global ImplicationGlobal Implication

�� Inferior products harm firm profitabilityInferior products harm firm profitability

and nation¶s balance of payment.and nation¶s balance of payment.

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OperationOperation

Reliability & durabilityReliability & durability

ConformanceConformance

ServiceabilityServiceability

AppearanceAppearance

Perceived qualityPerceived quality

Quality

Dimensions of Quality for Dimensions of Quality for

Goods

Goods



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Award named at formalAward named at formal secysecy of commerceof commerce MalcomMalcomBaldrige.Baldrige.

Established in 1988 by the U.S. governmentEstablished in 1988 by the U.S. government

Designed to promote TQM practicesDesigned to promote TQM practices

Some criteria of judgingSome criteria of judging�� Senior executive leadership;Senior executive leadership;

�� strategic planning;strategic planning;

�� management. of process qualitymanagement. of process quality

�� Quality results;Quality results;

�� customer satisfactioncustomer satisfaction

Winners in 2002Winners in 2002

�� Motorola.; Xerox; AT&T; Eastman Chemical.Motorola.; Xerox; AT&T; Eastman Chemical.

MalcomMalcom Baldrige NationalBaldrige NationalQuality AwardQuality Award



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Costs of QualityCosts of Quality

Prevention costsPrevention costs -- reducing thereducing thepotential for defectspotential for defects

Appraisal costsAppraisal costs -- evaluatingevaluatingproductsproducts

Internal failureInternal failure -- of producingof producingdefective parts or servicedefective parts or service

External costsExternal costs -- occur afteroccur afterdeliverydelivery



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C osts of poor qual ity ³are huge, but C osts of poor qual ity ³are huge, but the amounts are not known withthe amounts are not known withprec ision. In most c ompanies, theprec ision. In most c ompanies, theacc ounting system provides onl y a acc ounting system provides onl y a

minority of the information needed tominority of the information needed toquantify this c ost of poor qual ity quantify this c ost of poor qual ity

Juran on Quality by DesignJuran on Quality by Design,, The Free PressThe Free Press

(1992), p. 119(1992), p. 119



International Quality StandardsInternational Quality Standards

ISO 9000ISO 9000

Set of quality standards developed by ISOSet of quality standards developed by ISO

EstbEstb in 1981, 91 member nation published ain 1981, 91 member nation published aseries of quality standards, focusing onseries of quality standards, focusing on

�� Management procedureManagement procedure�� DocumentationDocumentation

�� Work instructionWork instruction

�� record keepingrecord keeping

�� Emphasis on Customer Satisfaction (ISO 9001Emphasis on Customer Satisfaction (ISO 9001-- 2000)2000)

9 to 18 Month process9 to 18 Month process

�� Documenting quality procedureDocumenting quality procedure

�� On site assessmentOn site assessment

�� Audit of product and servicesAudit of product and services2727



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EC Environmental StandardEC Environmental StandardISO 14000ISO 14000

Core Elements:Core Elements:

�� Environmental managementEnvironmental management

�� AuditingAuditing

�� Performance evaluationPerformance evaluation

�� LabelingLabeling

�� LifeLife--cycle assessmentcycle assessment

AdvantagesAdvantages

�� Positive public image, reduce exposure to liabilityPositive public image, reduce exposure to liability

�� Pollution preventionPollution prevention

�� Regulatory requirementRegulatory requirement

�� Reduction in need for multiple auditReduction in need for multiple audit



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International Quality StandardsInternational Quality Standards

Industrial Standard Z8101Industrial Standard Z8101--19811981(Japan)(Japan)

�� Specification for TQMSpecification for TQM ISO 9000 series (Europe/EC)ISO 9000 series (Europe/EC)

�� Common quality standards for productsCommon quality standards for productssold in Europe (even if made in U.S.)sold in Europe (even if made in U.S.)

ISO 14000 series (Europe/EC)ISO 14000 series (Europe/EC)�� Standards for recycling, labeling etc.Standards for recycling, labeling etc.

ASQC Q90 series; MILSTD (U.S.)ASQC Q90 series; MILSTD (U.S.)



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TraditionalTraditionalQuality Process (Manufacturing)Quality Process (Manufacturing)

Specifies

Need

Customer

Interprets

Need

Marketing

Designs

Pr oduct

Defines

Quality

Engineer ing

Pr oduces

Pr oduct

Plans

Quality

Monitors

Quality

Oper ations



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TQMTQM

Encompasses entire organization,Encompasses entire organization,from supplier to customerfrom supplier to customer

Stresses a commitment byStresses a commitment bymanagement to have a continuing,management to have a continuing,companycompany--wide, drive towardwide, drive towardexcellence in all aspects of productsexcellence in all aspects of products

and services that are important toand services that are important tothe customer.the customer.



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Total Quality Management (TQM)Total Quality Management (TQM)

Better to produce item right the firstBetter to produce item right the firsttime than to try to inspect quality intime than to try to inspect quality in

Quality at the sourceQuality at the source --responsibility shifted from qualityresponsibility shifted from qualitycontrol department to workerscontrol department to workers



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Deming¶s Fourteen Points for TQMDeming¶s Fourteen Points for TQM

Create consistency of purposeCreate consistency of purpose

Lead to promote changeLead to promote change

Build quality into the productsBuild quality into the products Build long term relationshipsBuild long term relationships

Continuously improve product,Continuously improve product,

quality, and servicequality, and service Start trainingStart training

Emphasize leadershipEmphasize leadership



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Deming¶s PointsDeming¶s Points -- continuedcontinued

Drive out fearDrive out fear

Break down barriers betweenBreak down barriers betweendepartmentsdepartments

Stop haranguing workersStop haranguing workers Support, help, improveSupport, help, improve

Remove barriers to pride in workRemove barriers to pride in work

Institute a vigorous program of Institute a vigorous program of education and self education and self--improvementimprovement

Put everybody in the company toPut everybody in the company towork on the transformationwork on the transformation



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Concepts of TQMConcepts of TQM

Deming 14 points has been developedDeming 14 points has been developedinto 6 concept of effective TQMinto 6 concept of effective TQMprogram.program.

�� Continuous improvementContinuous improvement�� Employee empowermentEmployee empowerment

�� BenchmarkingBenchmarking

�� JustJust--inin--time (JIT)time (JIT)

�� Taguchi conceptsTaguchi concepts

�� Knowledge of TQM toolsKnowledge of TQM tools



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Continuous ImprovementContinuous Improvement

Represents continualRepresents continualimprovement of process & improvement of process & customer satisfactioncustomer satisfaction

Involves all operationsInvolves all operations& work units& work units

Other namesOther names

�� PlanPlan--DoDo--CheckCheck--Act (PDCA)Act (PDCA)

�� Kaizen (Japanese)Kaizen (Japanese)

�� ZeroZero--defectsdefects

�� Six sigmaSix sigma



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Shewhart¶sShewhart¶s PDCA ModelPDCA Model

4.Act 1.Plan

3.Check 2 .Do

Identify t he

improvement and make a plan

Test t he planIs t he plan

working

Implement

t he plan



ContdContd«.«.

KaizenKaizen

�� The Japanese word for the ongoingThe Japanese word for the ongoing

process of incremental improvementprocess of incremental improvement

Six sigmaSix sigma

�� A quality program that yields 99.9997% A quality program that yields 99.9997%

accurate products and servicesaccurate products and services

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3939

A Brief History of Six SigmaA Brief History of Six Sigma

The Six Sigma concept was developed byThe Six Sigma concept was developed byBill Smith, a senior engineer at Motorola,Bill Smith, a senior engineer at Motorola,in 1986 as a way to standardize the wayin 1986 as a way to standardize the waydefects were tallied.defects were tallied.

Sigma is the Greek symbol used inSigma is the Greek symbol used instatistics to refer to standard deviationstatistics to refer to standard deviationwhich is a measure of variation.which is a measure of variation.

Adding ³six´ to ³sigma´ combines aAdding ³six´ to ³sigma´ combines a

measure of process performance (measure of process performance (sigmasigma))with the goal of nearly perfect qualitywith the goal of nearly perfect quality((si x si x ).).



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A Brief History of Six SigmaA Brief History of Six Sigma

In the popular bookIn the popular book The Six SigmaThe Six SigmaWay,Way, Six Sigma is defined as:Six Sigma is defined as:

�� a c omprehensive and f l ex ibl e system for a c omprehensive and f l ex ibl e system for

ac hieving, sust aining and max imizingac hieving, sust aining and max imizingbusiness succ ess. Si x Sigma is uniquel y business succ ess. Si x Sigma is uniquel y driven by cl ose underst anding of driven by cl ose underst anding of c ustomer needs, disc i pl ined use of f ac ts,c ustomer needs, disc i pl ined use of f ac ts,

d at a, and st atisti cal anal ysis, and di l igent d at a, and st atisti cal anal ysis, and di l igent attention to managing, improving, and attention to managing, improving, and reinventing business proc esses. ( p. x i)reinventing business proc esses. ( p. x i)



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Employee EmpowermentEmployee Empowerment

Getting employees involved inGetting employees involved inproduct & processproduct & processimprovementsimprovements

�� 85% of quality problems are due85% of quality problems are dueto process & materialto process & material

TechniquesTechniques

�� Support workersSupport workers�� Let workers make decisionsLet workers make decisions

�� Build teams & quality circlesBuild teams & quality circles



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Quality CirclesQuality Circles

Group of 6Group of 6--12 employees from12 employees fromsame work areasame work area

Meet regularly to solve workMeet regularly to solve work--related problemsrelated problems

�� 4 hours/month4 hours/month

Facilitator trains & helpsFacilitator trains & helpswith meetingswith meetings



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BenchmarkingBenchmarking

Benchmarking involves comparing anBenchmarking involves comparing anorganization's processes with the bestorganization's processes with the bestpractices to be found. Benchmarkingpractices to be found. Benchmarkingis used for a variety of purposes,is used for a variety of purposes,including:including:

�� Comparing an organization's processesComparing an organization's processeswith the best organization's processes.with the best organization's processes.

�� Comparing an organization's productsComparing an organization's productsand services with those of otherand services with those of otherorganizations.organizations.



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Identifying the best practices toIdentifying the best practices toimplement.implement.

Projecting trends in order to be ableProjecting trends in order to be ableto respond proactively to futureto respond proactively to futurechallenges and opportunities.challenges and opportunities.



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How to Benchmark?How to Benchmark?

�� Determine what to benchmarkDetermine what to benchmark

�� Form a benchmark teamForm a benchmark team

�� Identify benchmarking partnersIdentify benchmarking partners�� Collect and analyze benchmarkingCollect and analyze benchmarking

informationinformation

�� Take action to match or exceed theTake action to match or exceed thebenchmarkbenchmark



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Resolving Customer ComplaintsResolving Customer Complaints

Best PracticesBest Practices

Make it easy for clients to complainMake it easy for clients to complain

Respond quickly to complaintsRespond quickly to complaints Resolve complaints on the first contactResolve complaints on the first contact

Use computers to manage complaintsUse computers to manage complaints

Recruit the best for customer serviceRecruit the best for customer servicejobsjobs



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JustJust--inin--Time (JIT)Time (JIT)

Relationship to quality:Relationship to quality:

�� JIT cuts cost of qualityJIT cuts cost of quality

�� JIT improves qualityJIT improves quality

�� Better quality means less inventoryBetter quality means less inventoryand better, easierand better, easier--toto--employ JITemploy JITsystemsystem



4848

JustJust--inin--Time (JIT)Time (JIT)

µPull¶ system of production/purchasingµPull¶ system of production/purchasing

�� Customer starts production with anCustomer starts production with anorderorder

Involves µvendor partnership programs¶ Involves µvendor partnership programs¶ to improve quality of purchased itemsto improve quality of purchased items

Reduces all inventory levelsReduces all inventory levels

�� Inventory hides process & materialInventory hides process & materialproblemsproblems

Improves process & product qualityImproves process & product quality



4949

JustJust--InIn--Time (JIT) ExampleTime (JIT) Example

S crapS crap

Work in process inventory level Work in process inventory level

( hides problems)( hides problems)

UnreliableUnreliable

VendorsVendors

C apacity C apacity

ImbalancesImbalances



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JustJust--InIn--Time (JIT) ExampleTime (JIT) Example

S crapS crap

Reducing inventory revealsReducing inventory reveals

problems so t hey can be solved .problems so t hey can be solved .

UnreliableUnreliable

VendorsVendors

C apacity C apacity

ImbalancesImbalances



5151

Tools for TQMTools for TQM

Quality Function DeploymentQuality Function Deployment�� House of QualityHouse of Quality

Taguchi techniqueTaguchi technique

Quality loss functionQuality loss function

Pareto chartsPareto charts

Process chartsProcess charts

CauseCause--andand--effect diagramseffect diagrams

Statistical process controlStatistical process control



5252

Taguchi TechniquesTaguchi Techniques

Experimental design methods toExperimental design methods toimprove product & process designimprove product & process design

�� Identify key component & processIdentify key component & process

variables affecting product variationvariables affecting product variation TaguchiTaguchi C onc eptsC onc epts

�� Quality robustnessQuality robustness

�� Quality loss functionQuality loss function�� Target specificationsTarget specifications



5353

AbilityAbility toto produceproduceproductsproducts uniformlyuniformlyregardlessregardless of of

manufacturingmanufacturingconditionsconditions

PutPut robustnessrobustness ininHouseHouse of of QualityQuality

matricesmatrices besidesbesidesfunctionalityfunctionality

© 1984-1994 T/Maker Co.

© 1995 Corel Corp.

Quality RobustnessQuality Robustness



5454

Shows social cost ($) of deviation fromShows social cost ($) of deviation fromtarget valuetarget value

AssumptionsAssumptions�� Most measurable quality characteristicsMost measurable quality characteristics

(e.g., length, weight) have a target value(e.g., length, weight) have a target value

�� Deviations from target value are undesirableDeviations from target value are undesirable

Equation: L = DEquation: L = D22CC�� L = Loss ($); D = Deviation; C = CostL = Loss ($); D = Deviation; C = Cost

Quality Loss FunctionQuality Loss Function

S T l f TQMS T l f TQM



5555

Seven Tools for TQMSeven Tools for TQM



5656

Pareto Analysis of Wine GlassPareto Analysis of Wine GlassDefects (Total Defects = 75)Defects (Total Defects = 75)

54

12

5 4 2

72%

88%93% 97% 100%

0

10

20

30

40

50

60

70

Scratches Porosity Nicks Contamination Misc.

Causes, by percent total defects

Frequency (Number)

0%

20%

40%

60%

80%

100%

Cumulative

Percent

72% 16% 5% 4% 3%



5757

Shows sequence of events inShows sequence of events inprocessprocess

Depicts activity relationshipsDepicts activity relationships Has many usesHas many uses

�� Identify data collection pointsIdentify data collection points

�� Find problem sourcesFind problem sources�� Identify places for improvementIdentify places for improvement

�� Identify where travel distances can beIdentify where travel distances can bereducedreduced

Process ChartProcess Chart



5858

SUBJECT: Request tool purchase

Dist (f t) Time (min) Symbol Descr iption

D� Wr ite or der

D � On desk

75 D� To buyer

D�

Examine = Operation; = Transport; = Inspect;

D = Delay;� = S torage

Process Chart ExampleProcess Chart Example



5959

Used to find problem sources/solutionsUsed to find problem sources/solutions

Other namesOther names

�� FishFish--bone diagram, Ishikawa diagrambone diagram, Ishikawa diagram

StepsSteps

�� Identify problem to correctIdentify problem to correct

�� Draw main causes for problem as µbones¶ Draw main causes for problem as µbones¶

�� Ask µWhat could have caused problems inAsk µWhat could have caused problems inthese areas?¶ Repeat for each subthese areas?¶ Repeat for each sub--area.area.

Cause and Effect DiagramCause and Effect Diagram



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M et hod M anpower

M aterial M ac hinery

Drill Drill Drill Drill OvertimeOvertimeOvertimeOvertime

S teel S teel S teel S teel

Wood Wood Wood Wood

Lat heLat heLat heLat he

Too many

defects

Tired Tired Tired Tired

Old Old Old Old

S low S low S low S low

Cause and Effect DiagramCause and Effect Diagram

ExampleExample

Fishbone ChartFishbone Chart Problems with AirlineProblems with Airline



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Fishbone ChartFishbone Chart -- Problems with AirlineProblems with AirlineCustomer ServiceCustomer Service

S CS C



6262

Uses statistics & control charts to tellUses statistics & control charts to tellwhen to adjust processwhen to adjust process

Developed by Shewhart in 1920¶sDeveloped by Shewhart in 1920¶s

InvolvesInvolves

�� Creating standards (upper & lower limits)Creating standards (upper & lower limits)

�� Measuring sample output (e.g. meanMeasuring sample output (e.g. mean

wgt.)wgt.)�� Taking corrective action (if necessary)Taking corrective action (if necessary)

Done while product is being producedDone while product is being produced

Statistical Process ControlStatistical Process Control

(SPC)(SPC)



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ControlControl ChartsCharts

Repetitive operation will not produceRepetitive operation will not produceexactly the same outputs.exactly the same outputs.

Pattern of variability often described byPattern of variability often described bynormal distribution.normal distribution.

Random samples that fully represent theRandom samples that fully represent thepopulation being checked are taken.population being checked are taken.

Sample data plotted on control charts toSample data plotted on control charts to

determine if the process is still underdetermine if the process is still undercontrol.control.



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Process Control ChartProcess Control Chart

Plot of Sample Data Over Time

0

20

40

60

80

1 5 9 13 17 21

Time

Sample V

alu Sample

ValueUCL

Average

LCL



6565

Control Chart with Limits Set at ThreeControl Chart with Limits Set at Three

Standard DeviationsStandard Deviations



6666

Involves examining items to see if Involves examining items to see if an item is good or defectivean item is good or defective

Detect a defective productDetect a defective product�� Does not correct deficiencies inDoes not correct deficiencies in

process or productprocess or product

IssuesIssues

�� When to inspectWhen to inspect

�� Where in process to inspectWhere in process to inspect

InspectionInspection



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When and Where to InspectWhen and Where to Inspect

At the supplier¶s plant while the supplierAt the supplier¶s plant while the supplieris producingis producing

At your facility upon receipt of goodsAt your facility upon receipt of goodsfrom the supplierfrom the supplier

Before costly or irreversible processesBefore costly or irreversible processes During the stepDuring the step--byby--step productionstep production

processesprocesses When production or service is completeWhen production or service is complete Before delivery from your facilityBefore delivery from your facility At the point of customer contactAt the point of customer contact



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Service quality is more difficult toService quality is more difficult tomeasure than for goodsmeasure than for goods

Service quality perceptions depend onService quality perceptions depend on�� Expectations versus realityExpectations versus reality

�� Process and outcomeProcess and outcome

Types of service qualityTypes of service quality�� Normal: Routine service deliveryNormal: Routine service delivery

�� Exceptional: How problems are handledExceptional: How problems are handled

TQM In ServicesTQM In Services



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Determinants of Service QualityDeterminants of Service Quality

ReliabilityReliability ±± consistency and dependabilityconsistency and dependability

ResponsivenessResponsiveness ±± willingness/readiness of willingness/readiness of employees to provide service; timelinessemployees to provide service; timeliness

CompetenceCompetence ±± possession of skills andpossession of skills andknowledge required to perform serviceknowledge required to perform service

AccessAccess ±± approachability and ease of approachability and ease of contactcontact

CourtesyCourtesy ±± politeness, respect,politeness, respect,consideration, friendliness of contactconsideration, friendliness of contactpersonnelpersonnel

D t i t f S i Q litD t i t f S i Q lit



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Determinants of Service QualityDeterminants of Service Quality

--ContinuedContinued CommunicationCommunication ±± keeping customers informedkeeping customers informed

in languages they understandin languages they understand

CredibilityCredibility ±± trustworthiness, believability,trustworthiness, believability,

honestyhonesty SecuritySecurity ±± freedom from danger, risk or doubtfreedom from danger, risk or doubt

Understanding/knowing the customerUnderstanding/knowing the customer ±±making the effort to understands themaking the effort to understands the

customer¶s needscustomer¶s needs TangiblesTangibles ±± the physical evidence of thethe physical evidence of the

serviceservice



Process StrategyProcess Strategy

Next Lecture«..Next Lecture«..

Any Question««.?Any Question««.?

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THANKSTHANKS

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History of TQMHistory of TQM

Dr.Dr. ShewartShewart began using statisticalbegan using statisticalcontrol at the Bell Institute in 1930scontrol at the Bell Institute in 1930s

Military standards developed in 1950sMilitary standards developed in 1950s

After World War II, Japanese UnionAfter World War II, Japanese Unionof Scientist and Engineers beganof Scientist and Engineers beganconsulting with Demingconsulting with Deming

Deming Prize introduced in Japan inDeming Prize introduced in Japan in19511951



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History of TQMHistory of TQM continued continued

Quality assurance concept proposed inQuality assurance concept proposed in1952 by1952 by JuranJuran in USin US

JuranJuran makes first trip to Japan in 1954makes first trip to Japan in 1954

Quality becomes Japan¶s national sloganQuality becomes Japan¶s national sloganin 1956in 1956

First quality circles created in 1957First quality circles created in 1957

10,000 quality circles by 196610,000 quality circles by 1966

100,000 quality circles by 1977100,000 quality circles by 1977

First U.S. quality circle 1974First U.S. quality circle 1974

Documents

lecture 6- Final Managing Quality