Ops management lecture 5 quality management

Chapter five

Quality management

Learning objectives• Understand the need for quality in organizations• Describe different definitions of quality• Describe a good or service in terms of the

quality dimensions• Identify and describe the eight principles of

quality systems• Discuss some of the popular quality standards• Name and describe the contributions of some of

the quality gurus• Describe the roles of various South African

organisations for quality

Learning objectives (cont.)

• Discuss some of the popular quality standards

• Name and describe the contributions of some of the quality gurus

• Describe the roles of various South African organisations for quality.

5.1 Introduction

• Quality:– Expectations– Standards– Apply to both goods and services– Set by customers– Government regulations.

5.2 Exploring definitions of quality • Highly perceptual & value driven• No set definition• Quality can be defined in terms of:

– fitness for use– conformance to requirements e.g. meets specification– freedom from deficiencies– Transcendentally – something intuitive but impossible

to communicate e.g. Beauty of love, greatness etc. – a system e.g. ISO9000– Culturally e.g. management style, work practices etc.– Judgmentally – what customer says it is– Value – more benefits than the personal sacrifices

made to acquire

5.2 Exploring definitions of qualityQuality dimensions for goods

– Performance – achieves intended purpose– Features – “bells and whistles”– Reliability – does it perform consistently?– Conformance – specification within prescribed tolerances– Durability – tolerates stress or trauma without failing– Serviceability – ease of maintenance and repair– Aesthetics – does it look, feel, taste…….good?– Perceived quality – perceptions of different users– Safety – does product protect users?– Environmental friendliness – does product have a destructive

effect on natural resources?

5.2 Exploring definitions of qualityQuality dimensions for services

– Tangibles – e.g.. Physical appearance of service facility

– Reliability – is service delivered dependable and accurately?

– Responsiveness – is service provider helpful and prompt?

– Assurance – are employees knowledgeable and courteous?

– Empathy – does service satisfy customers requirement for caring and attentive service?

5.2 Exploring definitions of quality (cont.)

• Why has quality become a priority?– Competition - globalisation– The customer-focused organisation - loyalty– Higher level of customer expectation – availability of

information, greater number of suppliers– Performance improvement– Change in the form of organisations– Changing work force– The information revolution– The role of the ‘quality department’. Responsibility of

everyone!

5.3 Gurus of quality

Deming

•Management of a system for improving quality•Use of statistics for continual improvement•World authority on quality management•Large influence on American and Japanese industry•Trained in engineering and mathematical physics•His mantra “continual never-ending improvement”

QUALITY = JOURNEY WITHOUT A DESTINATION

5.3 Gurus of quality

• Deming’s14 points

DEMING’S 14 POINTS

1. Create constancy of purpose• Organisations exist not just to make money• Also exist to serve customers and employees• Must have strategic plans• Clear vision and mission• Must be communicated throughout organisation• Must invest in innovation, training, research• Must commit resources over long term to ensure

completion of quality initiatives

QUALITY IMPROVEMENT LONGTERM


2. Adopt a new philosophy•Customer centred approach•Based on mutual co-operation between management and work force•Everyone is engaged in continual improvement•Reduction in defects improvement in satisfaction•Specification measurement customer service measures of quality


3. Cease mass inspection•Routine inspection does not add value•Inspector responsible for detecting defects – no everyone is responsible•Increase in cost•Decrease in productivity•Instill quality at source no requirement for mass inspection

QUALITY IS NOT RESPONSIBILITY OF QUALITY DEPARTMENT


4. Do not award business on price tags

•Traditionally purchasing decisions based on price not quality•Defective raw materials = defective final product•Minimise number of suppliers•Build trust and loyalty in long term relationship

MANY SUPPLIERS IMPROVED QUALITY AND DECREASED COST


5. Constantly improve the system

•Improve constantly and forever•Improve quality and productivity•Thus constantly reduce cost•Should occur in small increments

Poor performance of a system Poor management!


6. Institute training on the job

•Essential to have necessary training

•Training improves productivity and morale

•Training does not guarantee successful implementation of a quality system


7. Improve leadership

•Key to improving quality

•Upper management MUST be involved for wide ranging success

•Supervisors aim should be to help people, machines, processes do a better job


8. Drive out fear

•Only way to work effectively•Culture should encourage suggestions without fear of being labelled “troublemaker”•Should acknowledge and reward suggested improvements•Japanese firms offer lifetime employment to overcome fears!

DEMING’S 14 POINTS9. Breakdown barriers between department

•Must work as a team

•Eradicates production problems

•Work collectively to meet needs of customer

TEAMWORK ATTAIN ORGANISATIONS GOALS AND

OBJECTIVES


10. Eliminate slogans

•Remove slogans asking for zero quality defects etc.

•Cause adversarial relationships within workforce


11. Eliminate work standards

•Once work standards met continual improvement stops?


12. Remove barriers to pride

•Workers should be proud of quality work

•Supervisors role should be to ensure quality not manage numbers

•Casual labour can be de-motivating

•Employees should feel trusted and able to make decisions

•Performance appraisals are destructive??


13. Institute education and self help

•Culture should be one of learning•Reinforce and reward learning•Employees should strive to achieve their best•Very motivational


14. Put everyone to work

•Everyone in organisation should be striving for transformation•Transformation is EVERYONE’S job•A quality management system must therefore include all workers in organisation

5.3 Gurus of quality (cont.)

• Juran

• The Juran Trilogy:– Planning – everything begins with this.

Meeting customers needs– Control – manufactured to specification– Improvement – investigation of problems,

identification of root causes. Implementation of improvement


• Crosby

• Quality = source of profit

• 14 steps

• Page 121


• Ishikawa

• ‘Company wide quality control’

• 11 points

• Page 122

5.4 Quality spheres

Figure 5.1.

QUALITY SPHERES

QUALITY CONTROL

•Deciding what to measure

•Implementing a measurement system

•Measuring the selected parameters

•Comparing the measurements with a standard

•Taking necessary corrective action if deviation from standard

QUALITY CONTROL

QUALITY CONTROL

QUALITY SPHERESQUALITY ASSURANCE

Provision of evidence to establish confidence in a product. Used to show that:-•Product fit for purpose and safe to use•Product meets legal, professional and industrial standards and regulations•Product conforms to customer requirements•Procedures are adequate and being adhered to•All concerned parties are aware of quality requirements•Corrective action is taken as appropriate•Improvement opportunities are identified and implemented

QUALITY SPHERES

QUALITY MANAGEMENT•Planning and implementing quality•Creating an organizational culture that promotes quality•Planning and providing resources for implementation and maintenance of quality•Motivating and rewarding employees•Ensuring suppliers are meeting quality standards required

5.5 Quality contributions from other disciplines

• Financial perspective

• Human resources perspective

• Engineering perspective.

5.6 Costs of quality

• Internal costs:– Incurred before

delivery– Types:

• Prevention costs• Appraisal costs• Internal failure costs i.e.

rework

• External costs– Occur post delivery

5.7 Quality management systems

• What is ISO 9000?

• Series of standards

• European

• Most recent - ISO 9000:2000

• Focuses on 8 principles of quality management

5.7 Quality management systems (cont.)

• 8 principles of quality management:– 1 Customer-focused organisation – 2 Leadership – 3 Involvement of people. – 4 Process approach. – 5 Systems approach to management. – 6 Continual improvement. – 7 Factual approach to decision making,

whereby effective decisions are based on the analysis of data and information.

– 8 Mutually beneficial supplier relationships

5.7 Quality management systems (cont.).

• Certification

• Registration

• Motivational or demotivational? Advantages/disadvantages. P129

5.7 Quality management systems (cont.)

• ISO 9000:2000• Three standards:

– Fundamentals and vocabulary– Requirements– Guidelines for performance improvement– Also:

• ISO 14000: Environmental standards• OHSAS: Safety standards• ISO 22000: Food safety standard

ISO 9000 QUALITY STANDARDS

ISO 9000 QUALITY STANDARDS

5.8 Quality awards

• Malcolm Baldrige National Quality Award [MBNQA]

• Deming prize for quality

• European Quality Award [EQA].

5.9 South African quality organisations

• SABS – South African Bureau of Standards• SAQI – South African Quality Institute• SASQ – South African Society for Quality• SAACTA. – South African Auditors and

Certification Training Association

Summary

• Foundational knowledge regarding ‘quality’• Definitions• Dimensions• Reasons for quality as a priority• Gurus• Standards and quality management• Awards• SA quality organisations.

NEXT SESSION

• Quality tools & techniques• Essentially a workshop on quality tools• Please bring:-

• Your brains!• Calculator• Graph paper• Pencil• Eraser• Ruler

Education

Ops management lecture 5 quality management