INTRODUCTION TO QUALITY

1. CHAPTER 9 INTRODUCTION TO QUALITY

2. Quality Management • What does the term quality mean? • Quality is the ability of a product or service to consistently meet or exceed customer expectations. • Did you get what you paid for (or more)?

3. Key Contributors to Quality Management

4. Dimensions of Quality • Performance - main characteristics of the product/service • Special features - extra characteristics • Conformance - how well product/service conforms to customer’s expectations • Reliability - consistency of performance/ predictable similarity each time

5. Dimensions of Quality (Cont’d) • Durability - useful life of the product/service • Perceived Quality - indirect evaluation of quality (e.g. reputation) • Serviceability (Service after sale) - handling of customer complaints or checking on customer satisfaction

6. Service Quality (Garvin) • Time & Timeliness • customer waiting time, completed on time • Completeness • customer gets all they asked for • Courtesy • treatment by employees © 1998 by Prentice-Hall Inc Russell/Taylor Oper Mgt 2/e Ch 3 - 6

7. Service Quality (cont.) • Consistency-same level of service for all customers • Accessibility & Convenience - ease of obtaining service • Accuracy - performed right every time • Responsiveness - reactions to unusual situations © 1998 by Prentice-Hall Inc Russell/Taylor Oper Mgt 2/e Ch 3 - 7

8. Examples of Quality Dimensions

9. Examples of Quality Dimensions (Cont’d)

10. Determinants of Quality Ease of use Design Conform-ance to design Service

11. The Meaning of Quality Producer’s Perspective Consumer’s Perspective Quality of Conformance Quality of Design Production Marketing • Quality • characteristics • Price • Conformance to • specifications • Cost Fitness for Consumer Use The Meaning of Quality: Two Perspectives

12. Functional Relationships in Quality Management Management Industrial Engineering Marketing Packaging Inspection Product Transformation Consumer Consumer Product Design Final Product Employees Personnel Purchasing Engineering Service Supplier

13. The Consequences of Poor Quality • Loss of Business • Reputation & Image • Liability • Productivity • Costs

14. Costs of Quality • Failure Costs - incurred by defective parts/products or faulty services. • Internal • Costs to fix problems detected before product/ service is delivered to the customer. • External • Costs to fix problems detected after product/ service is delivered to the customer.

15. Costs of Quality (continued) • Appraisal Costs • All product/service inspection costs. • Prevention Costs • All training, planning, customer assessment, process control, and quality improvement costs to prevent defects

16. Sources of Quality Improvement • Research & Development • Competitors • Customers • Employees

17. MODERN QUALITY MANAGEMENT • Prevention, not detection or correction • Quality is the concern of all • Suppliers as partners • Continual improvement • Management has ultimate responsibility for quality

18. Top Management Initiation of the quality management program (goal setting/strategic planning) Middle Management Implementation of the quality management program Supervisory Management Monitoring and controlling quality Production Process/ Operators Management Roles in Achieving Quality

19. Quality Awards Baldrige Award Deming Prize

20. Malcolm Baldrige National Quality Award • American Companies • Several Categories • Measurable, Structured Criteria

21. Malcolm Baldrige National Quality Award • 1.0 Leadership (100 points) • 2.0 Information and Analysis (70 points) • 3.0 Strategic Quality Planning (60 points) • 4.0 Human Resource Utilization (150 points) • 5.0 Quality Assurance of Products and Services (140 Points) • 6.0 Quality Results (180 points) • 7.0 Customer Satisfaction (300 points)

22. The Deming Prize • Honoring W. Edwards Deming • Japan’s highly coveted award • Main focus on statistical quality control

23. The ISO 9000/14000 Series Standards • World-wide standards • Registration/audits through documentation and on-site assessments • Structural basis for systems • ISO 9000 (Quality Management) • “Euronorms” – doing business internationally • ISO 14000 (Environmental Performance)

24. Total Quality Management • A philosophy that involves everyone in an organization in the continual quest for quality, with customer satisfaction as the driving force.

25. The TQM Approach • Focus on the customer • internal and external • Meet/exceed customer needs • Make processes perfect • mistake proof/right 1st time/fail-safing • Measure, measure,measure …Improve, improve, improve • Involve everyone (including external links)

26. Elements of TQM • Continual Improvement • Competitive Benchmarking • Employee Empowerment • Team Approach • Fact-based decisions • Supplier Quality • Knowledge of Tools • Champions • Quality at the Source

27. Continuous Improvement • Constant upgrading of processes & products/services • All operations & work units • Other names • Kaizen (Japanese) • Zero-defects • Six sigma © 1984-1994 T/Maker Co.

28. Benchmarking Finding best practices (anywhere) as standards for performance • Best Practice - Resolving customer complaints • Make it easy to complain • Respond quickly to complaints • Resolve complaints on first contact • Use computers to manage complaints • Recruit the best for customer service jobs

29. Employee Empowerment • Getting employees involved in process improvements • Know the job • Close to “action” • Techniques • Support/enable workers • Workers make decisions • Build teams & quality circles • Suggestion systems © 1995 Corel Corp.

30. Six Sigma • Statistical basis (3.4 defects per million opportunities) • Eliminate defects in ALL areas • Management (strong leadership) • Technical (statistics, measurement) • Champions, Black Belts, Green Belts • DMAIC Process • Define, Measure, Analyze, Improve, Control

31. Obstacles to TQM • No company-wide definition of quality • No strategic plan for change • No customer focus • Poor communication • No empowerment/enablement • Short-term (“quick fix”) mentality • Politics, “turf issues” • No motivation from employees • Inadequate allocation of time to quality • NO LEADERSHIP/COMMITMENT FROM TOP MANAGEMENT

32. The PDSA Cycle Plan Act Do Study

33. Methods and Tools • Process Mapping/Flowcharts • Histograms • Scatter diagrams • Checksheets • Pareto Analysis • Cause-and-effect diagrams • Control charts • Run charts

34. Process Improvement • Process mapping • Collect information; identify steps • Flowchart the process • Analyze the process • As a whole • Each step • Redesign the process

35. Flowchart Produce Good Start Provide Service No Assign. Take Sample Causes? Yes Inspect Sample Stop Process Create Find Out Why Control Chart

36. COMPONENTS REPLACED BY LAB TIME PERIOD: 22 Feb to 27 Feb 1998 REPAIR TECHNICIAN: Bob TV SET MODEL 1013 Integrated Circuits|||| Capacitors |||| |||| |||| |||| |||| || Resistors || Transformers|||| Commands CRT | Check Sheet © 1998 by Prentice-Hall Inc Russell/Taylor Oper Mgt 2/e Ch 3 - 40

37. Number of defects Offcenter Smeared print Missing label Other Loose Pareto Analysis 80% of the problems may be attributed to 20% of the causes.

38. Tired Drill Over Slow Time Too many defects Old Wood Steel Lathe Cause and Effect Diagram Method Manpower Material Machinery

39. Process Control Chart

40. Tracking Improvements UCL UCL UCL LCL LCL Additional improvements made to the process LCL Process centered and stable Process not centered and not stable

41. Methods and Tools • Quality circles • 5W2H - 5 whys, 2 hows • Interviewing • Brainstorming • Benchmarking

42. Creativity Tools-Brainstorming