Quality

Management

(Reference: Chapter 2 – Ensuring Quality from

Russell & Taylor)

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Topics
• Meaning of Quality
• Total Quality Management
• Quality Improvement and Role of Employees
• Strategic Implications of TQM
• Six Sigma
• TQM in Service Companies
• Cost of Quality
• Quality Management and Productivity
• Identifying Quality Problems and Causes
• Quality Awards and Setting Quality Standards
• ISO 9000
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Meaning of Quality
Webster’s Dictionary
degree of excellence of a thing

American Society for Quality

totality of features and characteristics
that satisfy needs

Consumer’s and producer’s

perspective

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Meaning of Quality:
Consumer’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
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Meaning of 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
.
Meaning of Quality:
A Final Perspective
Consumer’s and producer’s
perspectives depend on each
other
Consumer’s perspective: PRICE
Producer’s perspective: COST
Consumer’s view must
dominate

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 Meaning of Quality

Meaning
Meaning of
of Quality
Quality

Producer’s
Producer’s Perspective
Consumer’s
Consumer’s Perspective
Perspective Perspective

Quality
Quality of Quality
Quality of
of Conformance
Conformance of Design
Design
Production
Production • Conforman • Quality characteristicsMarketing
Marketing
ce to • Price
specificatio
ns
• Cost Fitness
Fitness for
for
Consumer
Consumer Use
Use
.
Dimensions of Quality:
Manufactured Products
 Performance
- basic operating characteristics of a product;
how well a car is handled 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

.
Dimensions of Quality:
Manufactured Products
(cont.)
 Conformance
- degree to which a product meets pre–
established standards
 Durability
- how long product lasts before
replacement?
 Serviceability
- ease of getting repairs, speed of
repairs, courtesy and competence of
repair person
.
Dimensions of Quality:
Manufactured Products
(cont.)
 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,
Dimensions of
Quality:
Service
 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?
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Dimensions of
Quality:
Service (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? .
Dimensions of Quality:
Service (cont.)
Accessibility and convenience
- how easy is it to obtain service?
- does service representative answer you 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 at able to
respond to a customer’s
.
questions?
Evolution of Quality -
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
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Evolution of Quality -
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

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Deming’s 14
Points
1. Create constancy of purpose
2. Adopt philosophy of prevention
3. Cease mass inspection
4. Select a few suppliers based on
quality
5. Constantly improve system and
workers
6. Institute worker training
7. Instill leadership among
supervisors .
Deming’s 14 Points (cont.)
8. Eliminate fear among employees
9. Eliminate barriers between departments
10. Eliminate slogans & numerical targets
11. Remove numerical quotas
12. Enhance worker pride
13. Institute vigorous training and education
programs
14. Develop a commitment from top
management to implement above 13 points
.
Deming Wheel: PDCA
Cycle

4. Act 1. Plan
Institutionalize Identify problem
improvement; and develop
continue cycle. plan for
improvement.

3. Study/Check 2. Do
Assess plan; is it Implement plan
working? on a test basis.

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Total Quality Management
 Commitment to quality throughout
organization
 Reducing cycle time without reducing
quality
• Principles of TQM
–Customer-oriented
–Leadership
–Strategic planning
–Employee responsibility
–Continuous improvement
–Cooperation
–Statistical methods
–Training and education
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TQM and…
… Partnering
- a relationship between a company
and its supplier based on mutual
quality standards
… Customers
- system must measure customer
satisfaction
… Information Technology
- infrastructure of hardware, networks,
and software necessary to support a
quality program
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Quality Improvement and
Role of Employees
1. Participative
problem solving
• employees involved in
quality management
• every employee has
undergone extensive
training to provide quality
service to Disney’s guests
2. Kaizen
• involves everyone in
process of continuous
improvement of personal &
professional life
3. Process/Quality
improvement teams
(QITs) .
Quality Improvement and
Role of Employees
Organization
4. Quality Circle
8-10 members
Same area
Supervisor/
moderator Training
Group
Presentation processes
Implementation Data collection
Monitoring Problem
analysis

Problem
Identification
Solution
List
Problem results
Problem alternatives
Consensus
Analysis
Brainstorming
Cause and
effect
Data collection
and analysis
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Six Sigma

 First developed at Motorola

 A process for developing and delivering
near perfect products and services
 Measure of how much a process
deviates from perfection
 3.4 defects per million opportunities
(3.4 DPMO)
 Champion: an executive responsible for
project success

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 Six Sigma:
Breakthrough Strategy—
DMAIC
DEFINE
DEFINE MEASURE
MEASURE ANALYZE
ANALYZE IMPROVE
IMPROVE CONTROL
CONTROL

3.4
3.4 DPMO
DPMO

67,000
67,000 DPMO
DPMO
cost
cost == 25%
25% of
of
sales
sales
Six Sigma:
Black Belts and
Green Belts
Black Belt
- project leader

Master Black Belt

- a teacher and
mentor for Black
Belts

Green Belts
- project team
members
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Six Sigma

Design for Six Sigma (DFSS)

- a systematic approach to designing
products and processes that will achieve
Six Sigma

Profitability
- typical criterion for selection Six Sigma
project
- one of the factors distinguishing Six
Sigma from TQM
Seven Quality Control
Tools
 Pareto Analysis
 Flow Chart
 Check Sheet
 Histogram
 Scatter Diagram
 SPC Chart
 Cause-and-Effect
Diagram

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Pareto Analysis:

Helps in determining the cause of poor

quality
NUMBER OF
CAUSE DEFECTS PERCENTAGE

Poor design 80 64 %
Wrong part dimensions 16 13
Defective parts 12 10
Incorrect machine calibration 7 6
Operator errors 4 3
Defective material 3 2
Surface abrasions 3 2
125 100 %

.
 Percent from each cause

10
20
30
40
50
60
70

0
Po
W or
ro De
ng si
gn
(64)

di
m
De en
fe si
on
ct
iv s

(13)
M e
ac p ar
hi ts
ne
O
ca (10)
pe libr
ra at
to io
(6)

.
re ns
De rr
fe or
ct s
iv
(3)

e
Su m
at

Causes of poor quality

rfa er
ce ia
(2)

ab ls
Pareto Chart

ra
si
on
s
(2)
Flow Chart:
A diagram of the steps in a process
Helps focus on location of problem in a
process

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Check Sheet:

To tally the number of defects.

COMPONENTS REPLACED BY LAB
TIME PERIOD: 22 Feb to 27 Feb 2002
REPAIR TECHNICIAN: Bob

TV SET MODEL 1013

Integrated Circuits ||||
Capacitors |||| |||| |||| |||| |||| ||
Resistors ||
Transformers ||||
Commands
CRT |

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Histogram:

Frequency of data related to quality

20

15

10

0
1 2 6 13 10 16 19 17 12 16 2017 13 5 6 2 1
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Scatter Diagram:

X
.
Statistical Process Control
Chart:
24
UCL = 23.35
21
Number of defects

18 c = 12.67

15

12

6
LCL = 1.99
3
2 4 6 8 10 12 14 16
Sample number
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Cause-and-Effect Diagram/Fish
bone:

Measurement
Measurement Human
Human Machines
Machines
Faulty
testing equipment Poor supervision Out of adjustment

Incorrect specifications Lack of concentration Tooling problems

Improper methods Inadequate training Old / worn

Quality
Quality
Inaccurate Problem
Problem
temperature
control Defective from vendor Poor process design
Ineffective quality
Not to specifications management
Dust and Dirt Material- Deficiencies
handling problems in product design

Environment
Environment Materials
Materials Process
Process

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Baldrige Award
Created in 1987 to stimulate
growth of quality management in
United States
Categories
- Leadership
- Information and analysis
- Strategic planning
- Human resource
- Focus
- Process management
- Business results
- Customer and market focus
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Other Awards for Quality
National individual International
awards awards
- Armand V. - European Quality
Feigenbaum Medal Award
- Deming Medal - Canadian Quality
- E. Jack Lancaster Award
Medal - Australian Business
- Edwards Medal Excellence Award
- Shewart Medal - Deming Prize from
- Ishikawa Medal Japans

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 ISO 9000
ISO is a word derived from Greek word:
“ISOS” meaning equal
• A set of procedures • ISO 9001:2000
and policies for • Quality Management
international quality Systems—
certification of Requirements
suppliers • standard to assess
ability to achieve
• Standards customer satisfaction
• ISO 9000:2000 • ISO 9004:2000
• Quality Management
Systems— • Quality Management
Fundamentals and Systems—Guidelines
Vocabulary for Performance
• defines fundamental Improvements
terms and definitions • guidance to a
used in ISO 9000
family . company for continual
Implications of ISO 9000 for
U.S. Companies
 Many overseas
companies will not do
business with a supplier
unless it has ISO 9000
certification
 ISO 9000 accreditation
 ISO registrars
 A total commitment to
quality is required
throughout an
organization

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Thank You!

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