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1. Quality Management

   Quality Management
2. QM – Philosophy & Concepts The Total Quality Approach Quality and Global Competitiveness Strategic Management Ethics Partnering Quality Culture Customer Satisfaction Employee Empowerment Leadership and Change Teambuilding and Teamwork Effective Communication Training Quality Management
3. QM – Philosophy & Concepts The Total Quality Approach Quality and Global Competitiveness Strategic Management Ethics Partnering Quality Culture Customer Satisfaction Employee Empowerment Leadership and Change Teambuilding and Teamwork Effective Communication Training Quality Management
4. What is Quality? Quality Management
5. Quality Management
6. Quality Quality has been defined in a number of ways. When viewed from a consumer’s perspective, it means meeting or exceeding customer expectations. Quality Management
7. Dimensions of Quality Quality Management
8. Two Views of Quality How well the features of a product or service meet the customer need and therefore provide them with satisfaction => higher quality costs (usually) more Freedom from failures => higher quality costs (usually) less Quality Management
9. Total Quality Total quality is an approach to doing business that attempts to maximize an organization’s competitiveness through the continual improvement of the quality of its products, services, people, processes, and environments. Quality Management
10. Managing for Quality (Juran) A set of universal methods that any organization, whether a business, an agency, a university or a hospital can use to attain superior results by designing, continuously improving and ensuring that all products, services and processes meet customer and stakeholder needs. Quality Management
11. Juran´s trilogy Designing and planning for Quality Compliance, controlling and assuring quality Improving quality Quality Management
12. Juran´s trilogy Creating processes to design goods and services to meet needs of the stakeholders (internal and external). Understand needs of customers Creating processes to control quality. Ensure compliance to design criteria Creating a systematic approach to improve continuously. Failures must be discovered and remedied. => Create functions and skills to do the things above Quality Management
13. Financial trilogy Financial planning Annual financial and operational budgets (revenues, costs and profits) Financial goals for the organization and its divisions Financial control Evaluation of actual financial performance and taking action on the differences Cost control, expense control, risk management, inventory control, etc. Financial improvement Improvement of financial results Cost reduction projects, new facilities, new product development, M &A, joint ventures, etc Quality Management
14. Quality planning Establish the project and design goals Identify the customers Discover the customer needs Develop the product or service features Develop the process features Develop the controls and transfer to operations => Customer – customer needs- product features – process features- process control features Quality Management
15. Quality planning tools Benchmarking Brainstorming Competitive analysis Control charts FMEA Flow diagram Process capability Scatter diagram Etc. Quality Management
16. Quality Control Assure Repeatable and Compliant Processes Quality Management
17. Quality Control Tools SPC (Statistical Process Control) Problem Solving methods Poka Yoke Quality Management
18. Quality Improvement Create breakthroughs in Performance Quality Management
19. Quality Improvement Tools Six Sigma RDMAIC process Recognize Define Measure Analyze Improve Control Quality Management
20. Juran´s trilogy Quality Management
21. The Total Quality Approach toQuality Management Key characteristics of the total quality approach are as follows: strategically based, customer focus, long-term commitment, teamwork, employee involvement and empowerment, continual process improvement, education and training, Quality Management
22. The Total Quality Approach toQuality Management The rationale for total quality can be found in the need to compete in the global marketplace. Countries that are competing successfully in the global marketplace are seeing their quality of living improve. Those that cannot are seeing theirs decline. Quality Management
23. The Total Quality Pioneers W. Edward Deming is best known for his Fourteen Points, the Deming Cycle Joseph M. Juranis best known for the Pareto Principle, and the Juran Trilogy. Armand V. Feigenbaumis best known for his Total Quality Control. Philip B. Crosby is best known for his Quality is Free andthe Zero Defects program Quality Management
24. QM – Philosophy & Concepts The Total Quality Approach Quality and Global Competitiveness Strategic Management Ethics Partnering Quality Culture Customer Satisfaction Employee Empowerment Leadership and Change Teambuilding and Teamwork Effective Communication Training Quality Management
25. Quality and Global Competitiveness Several factors can inhibit competitiveness, including those related to business and government, family, and education. In a global marketplace quality is the key to competitiveness. Total Quality approach minimizes the Cost of Quality, making products or services more competitive Quality Management
26. Costs of Quality Prevention Appraisal and inspection Internal failure External failure COPQ = Costs of Poor Quality COPQ Quality Management
27. Prevention Costs Quality Planning activities FMEA analysis Control Plans Quality training Product design Verification Quality Management
28. Appraisal and Inspection Costs Testing product Reviewing documents Inspecting equipment and supplies End of line inspection Product audits Etc. Quality Management
29. Internal Failure Costs Rework on product Scrap of non conforming product Correcting database errors Stocking extra parts to replace defective components Etc, Quality Management
30. External Failure Costs Warranty claims Investigating complaints Quality Management
31. Direct Cost of Poor Quality (4 – 8% of Sales) Scrap Rework Warranty Customer Return Loss of Customer Loyalty Engineering change Excessive inventory Late delivery Excessive overtime Excessive employee turnover Expediting costs Indirect Cost of Poor Quality (15 – 25% of Sales) Quality Management
32. Cost of Quality Total Costs Failure Appraisal & Prevention Freedom from failures 100% Juran´s Cost of Quality Quality Management
33. Cost of Quality Cost of Quality Quality Costs Excess Quality Junk Zone Profit Zone Customer Value of Quality 100% Freedom from Failures Quality Management
34. Quality Cost as % of Sales Quality Management
35. Cost distribution as a % of total cost of Quality Quality Management
36. COPQ - car recalls Here are the larger recent recalls, and these are just for October 2010- Nissan: 2.2 million vehicles worldwide (747,000 in the U.S.): ignition relay problem BMW: 130,000 vehicles: faulty fuel pump in the twin-turbo inline 6 Honda: 470,000 cars in the U.S.: faulty seal in master brake cylinder Mercedes-Benz: 85,000 E-Class cars: possible power steering connection fitting problem Toyota: 1.53 million cars worldwide (740,000 in the U.S.): faulty seal in master cylinder GM: 392,000 Chevrolet Impalas: faulty front seat-belt anchors. Quality Management
37. COPQ – car recalls USA Automakers recalled about 15.5 million vehicles last year compared with 20 million in 2010, according to figures released on Friday by the National Highway Traffic Safety Administration. The figure was the fourth lowest in the last decade. Quality Management
38. Investment in Quality Cost Quality Management
39. Quality and Global Competitiveness The most important key in maximizing competitiveness is the human resource. The Competitive Edge is in the Quality of the People Quality Management
40. QM – Philosophy & Concepts The Total Quality Approach Quality and Global Competitiveness Strategic Management Ethics Partnering Quality Culture Customer Satisfaction Employee Empowerment Leadership and Change Teambuilding and Teamwork Effective Communication Training Quality Management
41. Strategic Management Strategic management is management that bases all actions, activities, and decisions on what is most likely to ensure successful performance in the marketplace. The two major components of strategic management are strategic planning and strategic execution. Part of strategic planning is thinking creatively to eliminate “sacred cows” that work against competitiveness. Quality Management
42. Strategic planning Who are we? Where are we going? How will we get there? What do we hope to accomplish? What are our core competencies? What are our strengths and weaknesses? What are our opportunities and threats? Quality Management
43. Core competencies Core competencies are things an organization does so well they can be viewed as providing a competitive advantage. Quality Management
44. SWOT analysis SWOT analysis is defined as a structured approach to evaluating the strategic position of a business by identifying its strengths, weaknesses, opportunities and threats SWOT analysis identifies the core competencies of the organization Quality Management
45. SWOT analysis Opportunities Threats => apply to External Factors Strengths Weaknesses => apply to Internal Factors Quality Management
46. SWOT analysis Quality Management
47. SWOT example Quality Management
48. Strategic Management Strategies that organizations can adopt for gaining a sustainable competitive advantage are cost leadership, differentiation, and market-niche strategies. Total Quality can be the most effective cost leadership or differentiation strategy improve efficiency, cut costs continuous improvement of the product features Quality Management
49. Strategic Execution Even the best strategic plan will serve no purpose unless it is effectively executed. Quality Management
50. QM – Philosophy & Concepts The Total Quality Approach Quality and Global Competitiveness Strategic Management Ethics Partnering Quality Culture Customer Satisfaction Employee Empowerment Leadership and Change Teambuilding and Teamwork Effective Communication Training Quality Management
51. Ethics Ethics is about doing the right thing within a moral framework. The most common impediment to ethical conduct is human nature because people tend to behave according to perceived personal interest. Quality Management
52. Ethics The Total Quality approach cannot be successfully implemented in an organization that fails to subscribe to high standards of ethical behavior Quality Management
53. Ethics Many of the fundamental elements of total quality depend on trust and ethical behavior, including communication, interpersonal relations, conflict management, problem solving, teamwork, employee involvement and empowerment, and customer focus. Quality Management
54. QM – Philosophy & Concepts The Total Quality Approach Quality and Global Competitiveness Strategic Management Ethics Partnering Quality Culture Customer Satisfaction Employee Empowerment Leadership and Change Teambuilding and Teamwork Effective Communication Training Quality Management
55. Partnering Partnering means working together for mutual benefit. It involves pooling resources, sharing costs, and cooperating in ways that mutually benefit all parties involved in the partnership. Partnerships may be formed internally (among departments) and externally with suppliers, customers Quality Management
56. Partnering with suppliers 85% of the added value comes from suppliers (automotive industry) Traditional model (based on price only) Total Quality model – partnership from design to delivery Quality Management
57. Partnering with Customers The rationale for forming customer partnerships is customer satisfaction. The best way to ensure customer satisfaction is to involve customers as partners in the product development process. Doing so is, in turn, the best way to ensure competitiveness. Customer-defined quality is a fundamental aspect of total quality. Quality Management
58. QM – Philosophy & Concepts The Total Quality Approach Quality and Global Competitiveness Strategic Management Ethics & Corporate Social Responsibility Partnering and Strategic Alliances Quality Culture Customer Satisfaction Employee Empowerment Leadership and Change Teambuilding and Teamwork Effective Communication Training Quality Management
59. Quality Culture One of the greatest obstacles in implementing Total Quality is the cultural behavior Why? Successful Total Quality implementation requires cultural change People do not like to change! Resisting change is natural human behavior Fear Uncertainty Loss of control More work …… Emotional transition Quality Management
60. Total Quality culture Short vs long term objectives Managers as coaches vs bosses Finger pointing vs problem solving Supplier cooperation Continuous improvement Quality Management
61. QM – Philosophy & Concepts The Total Quality Approach Quality and Global Competitiveness Strategic Management Ethics Partnering Quality Culture Customer Satisfaction Employee Empowerment Leadership and Change Teambuilding and Teamwork Effective Communication Training Quality Management
62. Customer Satisfaction( Every organization has both internal and external customers. An external customer is the one referred to in the traditional definition. An internal customer is any employee whose work depends on that of employees whose work precedes his or hers. Quality Management
63. Customer Satisfaction In a total quality setting, customers define quality. Therefore, customer satisfaction must be the highest priority. Customer satisfaction is achieved by producing high-quality products that meet or exceed expectations. =>It must be renewed with each purchase. Quality Management
64. Customer Satisfaction The key to establishing a customer focus is to put employees in touch with customers so that customer needs are known and understood. Once the customer needs and expectations are defined they need to be translated into product specification. One of the tools to do so is Quality Function Deployment (QFD) Quality Management
65. Quality Function Deployment (QFD) Quality Function Deployment (QFD) is a structured approach to defining customer needs or requirements and translating them into specific plans to produce products to meet those requirements. The "voice of the customer" is the term to describe these stated and unstated customer needs or requirements. The voice of the customer is captured in a variety of ways: direct discussion, surveys, customer specifications, observation, warranty data, field reports, etc. Quality Management
66. Quality Function Deployment (QFD) This understanding of the customer requirements is then summarized in a product planning matrix or "house of quality". These matrices are used to translate higher level "what's" or requirements into lower level "how's" or means to satisfy the requirements Quality Management
67. House of Quality (computer mouse) Quality Management
68. QFD example – car door Quality Management
69. Quality Management
70. Quality Management
71. QFD Six matrices to compare: Customer requirements with related technical features Technical features with applied technologies Applied technologies with manufacturing processes Manufacturing processes with quality control processes (to optimize processes) Quality control processes with statistical process control processes Statistical control parameters with specifications Quality Management
72. QFD Matrices Quality Management
73. Kano model The Kano model is a theory of product development and customer satisfaction developed in the 80s by Professor Noriaki Kano which classifies customer preferences into following categories: Must-Be One-Dimensional Attractive Quality Management
74. Kano model Must-be Quality These attributes are taken for granted when fulfilled but result in dissatisfaction when not fulfilled. One-dimensional Quality These attributes result in satisfaction when fulfilled and dissatisfaction when not fulfilled. These are attributes that are spoken of and ones which companies compete for. Attractive Quality These attributes provide satisfaction when achieved fully, but do not cause dissatisfaction when not fulfilled. These are attributes that are not normally expected,. . Quality Management
75. Kano model Quality Management
76. Customer expectations vs. customer satisfaction Customer expectations Actual performance Customer satisfaction Product A Product B Quality Management
77. Customer Satisfaction, Retention and Loyalty Measuring customer satisfaction alone is not enough. => Many customers who found a defect can be satisfied. Organizations should, in addition, measure customer retention. It costs much more to find a new customer than to retain one. Customer loyalty Quality Management
78. QM – Philosophy & Concepts The Total Quality Approach Quality and Global Competitiveness Strategic Management Ethics Partnering Quality Culture Customer Satisfaction Employee Empowerment Leadership and Change Teambuilding and Teamwork Effective Communication Training Quality Management
79. Employee Empowerment Empowerment means engaging employees in the thinking processes of an organization in ways that matter Empowerment means giving employees ownership of their jobs ( they are the best experts) but it does not mean that managers abdicate their responsibility or authority Empowerment requires a change in organizational culture (resistance to change) Quality Management
80. Empowerement Why empowerment? it is the best way to increase creative thinking resulting in enhancing an organization’s competitiveness. it can be an outstanding motivator. Vehicles: Quality circles Kaizen groups Etc. Quality Management
81. QM – Philosophy & Concepts The Total Quality Approach Quality and Global Competitiveness Strategic Management Ethics Partnering Quality Culture Customer Satisfaction Employee Empowerment Leadership and Change Teambuilding and Teamwork Effective Communication Training Quality Management
82. Leadership and Change Leadership is the ability to inspire people to make a total, willing, and voluntary commitment to accomplishing or exceeding organizational goals. Good leaders overcome resistance to change Good leaders are committed to both the job to be done and the people who must do it. They are good communicators and they are persuasive. Quality Management
83. Leadership and Change To facilitate change in a positive way, leaders: must have a clear vision and corresponding goals, exhibit a strong sense of responsibility, be effective communicators, have a high energy level, and have the will to change. Quality Management
84. Commitment of Top Management Our feedbacks have made clear that the most influential factor in successful quality leadership has been the active participation of upper management. In fact to our knowledge, every successful quality revolution has included the active participation of upper management. We know of no exceptions. J.M.Juran Quality Management
85. Commitment of Top Management It is not enough that top management commit themselves for life to product quality and productivity. They must know what it is they are committed to – i.e. what they must do. These obligations cannot be delegated. More resolutions or approval are not enough. W.Edwards Deming Quality Management
86. QM – Philosophy & Concepts The Total Quality Approach Quality and Global Competitiveness Strategic Management Ethics Partnering Quality Culture Customer Satisfaction Employee Empowerment Leadership and Change Teambuilding and Teamwork Effective Communication Training Quality Management
87. Team Building and Teamwork A team is a group of people with a common, collective goal. The rationale for the team approach to work is that “two heads are better than one” Quality Management
88. Teamwork Quality Circles Kaizen Team oriented problem solving 8D methodology (Ford) Quality Management
89. QM – Philosophy & Concepts The Total Quality Approach Quality and Global Competitiveness Strategic Management Ethics Partnering Quality Culture Customer Satisfaction Employee Empowerment Leadership and Change Teambuilding and Teamwork Effective Communication Training Quality Management
90. Effective communication Communication is the transfer of a message that is both received and understood. Effective communication is a higher order of communication. It means the message is received, understood, and being acted on in the desired manner. Communication is the oil that keeps the total quality engine running. Without it, total quality breaks down. Quality Management
91. Effective communication In Total Quality, the success of the following elements is depending on effective communication: Customer focus Leadership Decision Making Teamwork Problem solving Employee empowerment Quality Management
92. QM – Philosophy & Concepts The Total Quality Approach Quality and Global Competitiveness Strategic Management Ethics Partnering Quality Culture Customer Satisfaction Employee Empowerment Leadership and Change Teambuilding and Teamwork Effective Communication Training Quality Management
93. Training Training is an organized, systematic series of activities designed to enhance an individual’s work-related knowledge, skills, understanding, and motivation. . . Quality Management
94. Training Benefits of training Fewer production errors Increased productivity Improved quality Decreased turnover rate Improved safety and health Increased flexibility of employees Better response to change Improved communication Better teamwork Quality Management
95. QM – Philosophy & Concepts The Total Quality Approach Quality and Global Competitiveness Strategic Management Ethics Partnering Quality Culture Customer Satisfaction Employee Empowerment Leadership and Change Teambuilding and Teamwork Effective Communication Education and Training Quality Management
96. Total Quality Total quality is an approach to doing business that attempts to maximize an organization’s competitiveness through the continual improvement of the quality of its products, services, people, processes, and environments. Quality Management