TM 620: Quality Management

1. TM 620: Quality Management Session Two – September 4, 2012 • Quality Philosophies • Quality Standards

2. If you are a ENGM student: • Email Dr. Kellogg (Stuart.Kellogg@sdsmt.edu) to confirm that he has the correct email address for you. • If you believe you are graduating this semester and you have not discussed this with Dr. Kellogg, do so ASAP.

3. Question • What are the contributions of Deming? Why might some believe he is the most influential quality expert? Would you agree?

4. Suppliers A Production, assembly, inspection B C Tests of processes machines, methods, costs Deming System Design and redesign Consumer Research Distribution

5.   Improve Quality Cost decrease due to less rework, fewer delays  Capture Market Deming System  Productivity Increases   Stay in Business Provide jobs and more jobs

6. Deming’s 14 points • Create constancy of purpose toward improvement of product and service. • Adopt the new philosophy. • Cease dependence on inspection to achieve quality. • End the practice of awarding business on the basis of a price tag. • Improve constantly and forever the system of production and service.

7. Deming’s 14 points • Institute training on the job. • Institute leadership. The aim of supervision should be to help people and machines and gadgets to do a better job. • Drive out fear, so that everyone may work effectively for the company. • Break down barriers between departments. • Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity.

9. Deming’s 14 points • Eliminate work standards (quotas) on the factory floor. • Eliminate management by objectives • Remove barriers that rob the hourly worker of his right to pride of workmanship • Abolishment of annual or merit rating • Institute a vigorous program of education and self-improvement • Put everybody in the company to work to accomplish the transformation.

10. Profound Knowledge • Appreciation for a system • Understanding of variation • Theory of knowledge • experience • theory • Psychology

11. Systems • Most organizational processes are cross-functional • Parts of a system must work together • Every system must have a purpose • Management must optimize the system as a whole

12. Variation • Many sources of uncontrollable variation exist in any process • Excessive variation results in product failures, unhappy customers, and unnecessary costs • Statistical methods can be used to identify and quantify variation to help understand it and lead to improvements

13. Theory of Knowledge • Knowledge is not possible without theory • Experience alone does not establish a theory, it only describes • Theory shows cause-and-effect relationships that can be used for prediction

14. Psychology • People are motivated intrinsically and extrinsically; intrinsic motivation is the most powerful • Fear is demotivating • Managers should develop pride and joy in work

15. Video – Deming on Profound Knowledge

16. 7 Deadly Diseases • Lack of constancy of purpose • Emphasis on short-term profits • Evaluation of performance, merit rating, or annual review of performance • Mobility of management • Running a company on visible figures alone • Excessive medical costs for employee • Excessive costs of warranty, fueled by lawyers who work on the basis of contingency fees

17. Question • Deming believed poor quality rested with management rather than the worker. Would you agree? Why or why not?

18. Question • What was Joseph Juran’s primary contribution to quality thinking in America? Describe his three step process to improving quality.

19. Juran • Trilogy 1. Quality Planning 2. Quality Control 3. Quality Improvement

20. Juran • Cast in traditional organizational structure • Breakthrough thinking 1. proof of need 2. project identification 3. organization for breakthrough 4. diagnostic journey (data, statistics) 5. remedial journey 6. holding the gains • Programs for Quality Improvement

21. Juran 1. Build awareness of the need and opportunity for improvement. 2. Set goals for improvement. 3. Organize to teach the goals (establish a quality council, identify problems, select projects, appoint teams, designate facilitators). 4. Provide training. 5. Carry out projects to solve problems.

22. Juran 6. Report progress. 7. Give recognition. 8. Communicate results. 9. Keep score. 10. Maintain momentum by making annual improvement part of the regular systems and processes of the company.

23. Crosby • formal, company-wide program with emphasis on motivation • Absolutes • quality = conformance to standards • no such thing as quality problem • no such thing as economics of quality • only performance measure is cost of non-conformance • only standard is “Zero Defects” • 14 step program

24. Crosby (14 steps) 1. Make it clear that management is committed to quality. 2. Form quality-improvement teams with representatives from each department. 3. Determine where current and potential quality problems lie. 4. Evaluate the cost of quality and explain its use as a management tool. 5. Raise the quality awareness and personal concern of all employees.

25. Crosby (14 steps) 6. Take actions to correct problems identified through previous steps. 7. Establish a committee for the zero-defects program. 8. Train supervisors to actively carry out their part of the quality-improvement program. 9. Hold a “zero-defects day” to make all employees aware that there has been a change. 10. Encourage individuals to establish improvement goals for themselves and their groups.

26. Crosby (14 steps) 11. Encourage employees to communicate to management the obstacles they face in attaining their improvement goals. 12. Recognize and appreciate those who participate. 13. Establish quality councils to communicate on a regular basis. 14. Do it all over again to emphasize that the quality-improvement program never ends.

27. Feigenbaum • Honorary member ASQC 1986 • 3 contributions 1. International promotion of the quality ethic 2. Concept of Total Quality Control 3. Quality cost classification • 3 steps to quality 1. Quality Leadership 2. Modern Quality Technology 3. Organizational Commitment

28. Feigenbaum • Four Deadly Sins • Hothouse quality • Wishful thinking • Producing overseas • Confining quality to the factory

29. Ishikawa • Quality begins & ends with education. • The first step in quality is to know the requirements of the customer. • The ideal state of quality control occurs when inspection is no longer necessary. • Remove the root cause, not the symptoms. • Quality control is the responsibility of all workers and all divisions. • Do not confuse the means with the objectives.

30. Ishikawa • Put quality first and set your sights on long-term profits. • Marketing is the entrance and exit of quality. • Top management must not show anger when facts are presented by subordinates. • 95% of problems in a company can be solved with simple tools for analysis and problem-solving. • Data without dispersion information (variability) is false data.

31. People Methods Handling Effect Design Tools Cause & Effect

32. Cause & Effect Mix Chips in Dry Automate Fold Longer Too Few Chips Place Chips on by hand Drop Liquid Chips

33. Harrington • cross approach of major 3 • urgent need is in business process; not production processes • business process reengineering • 5-step process 1. organize for improvement 2. understand the process 3. streamlining 4. measurement and control 5. continuous improvement

34. Question • Describe Taguchi’s perspective of quality. What practical applications does it have? If you were a manager would you adopt Taguchi’s approach to quality?

35. Taguchi LSL USL x T x T

36. LSL USL x x USL  LSL C  p 6  x Process Capability

37. OK, Now What?