Modern Importance of Quality “The first job we have is to turn out quality merchandise that consumers will buy and keep on buying. If we produce it efficiently and economically, we will earn a profit, in which you will share.” - William Cooper Procter
Quality Assurance Quality Assurance refers to the process used to create the appropriate deliverables, and can be performed by a manager, client, or even a third-party reviewer. Examples of quality assurance include process checklists, visual aids, and project audits, mistake proofing, etc.
Quality Control • Quality Control refers to quality related activities associated with the project deliverables • Quality control is used to verify that deliverables are of acceptable quality and that they are complete and correct. • Examples of quality control activities include inspection, audit and the testing process.
Qualitative vs. Subjective • Qualitative quality can be measured, and compared using values that are specific, black and white • Subjective quality cannot be measured, and comparisons are intuitive, gut level, hard to define
Workshop Quality Comparison
Mikasa fine china : $70.00 for 5 piece place setting Corelle dinnerware : $30.00 for 16 piece place setting
2004 Hyundai Sonata $18,000 2004 Jaguar XJ8 $64,000
History of Quality Assurance • Skilled craftsmanship during Middle Ages • Industrial Revolution: rise of inspection and separate quality departments • Statistical methods at Bell System • Quality control during World War II • Quality management in Japan
History of Quality Assurance (2 of 2) • Quality awareness in U.S. manufacturing industry during 1980s: “Total Quality Management” • Malcolm Baldrige National Quality Award (1987) • Quality in service industries, government, health care, and education • Current and future challenge: keep progress in quality management alive
Contemporary Influences on Quality • Partnering • Learning systems • Adaptability and speed of change • Environmental sustainability • Globalization • Knowledge focus • Customization and differentiation • Shifting demographics
Leaders in the Quality Revolution • W. Edwards Deming • Joseph M. Juran • Philip B. Crosby • Armand V. Feigenbaum • Kaoru Ishikawa • Genichi Taguchi
Deming Chain Reaction Improve quality Costs decrease Productivity improves Increase market share with better quality and lower prices Stay in business Provide jobs and more jobs
Deming’s System of Profound Knowledge • Appreciation for a system • Understanding variation • Theory of knowledge • Psychology
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
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
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
Psychology • People are motivated intrinsically and extrinsically • Fear is demotivating • Managers should develop pride and joy in work
Deming’s 14 Points (Abridged)(1 of 2) 1.Create and publish a company mission statement and commit to it. 2. Learn the new philosophy. 3. Understand the purpose of inspection. 4. End business practices driven by price alone. 5. Constantly improve system of production and service. 6. Institute training. 7. Teach and institute leadership. 8. Drive out fear and create trust.
Deming’s 14 Points (2 of 2) 9.Optimize team and individual efforts. 10. Eliminate exhortations for work force. 11. Eliminate numerical quotas and M.B.O. Focus on improvement. 12. Remove barriers that rob people of pride of workmanship. 13. Encourage education and self-improvement. 14. Take action to accomplish the transformation. www.deming.org
Juran’s Quality Trilogy • Quality planning (Assurance) • Quality control (Control) • Quality improvement (CI) www.juran.com
Phillip B. Crosby Quality is free . . . : “Quality is free. It’s not a gift, but it is free. What costs money are the un-quality things -- all the actions that involve not doing jobs right the first time.”
Philip B. Crosby Absolutes of Quality Management: • Quality means conformance to requirements • Problems are functional in nature • There is no optimum level of defects • Cost of quality is the only useful measurement • Zero defects is the only performance standard www.philipcrosby.com
A.V. Feigenbaum • Three Steps to Quality • Quality Leadership, with a strong focus on planning • Modern Quality Technology, involving the entire work force • Organizational Commitment, supported by continuous training and motivation
Kaoru Ishikawa • Instrumental in developing Japanese quality strategy • Influenced participative approaches involving all workers • Advocated the use of simple visual tools and statistical techniques
Loss No Loss Loss 0.480 0.500 0.520 Tolerance Genichi Taguchi • Pioneered a new perspective on quality based on the economic value of being on target and reducing variation and dispelling the traditional view of conformance to specifications:
Workshop Why Quality?
If you settle for 99.9% quality • One hour per month has unsafe drinking water • Over 20,000 wrong prescriptions per year • 500 wrong surgical operations per week • 16,000 lost articles of mail every hour • 22,000 checks from wrong accounts per hour • 32,000 missed heartbeats per year per individual • 2 long or short landing everyday at each major airport • 50 babies dropped by the doctor each day • No electricity for 2 hours each month
Competitive Advantage • Is driven by customer wants and needs • Makes significant contribution to business success • Matches organization’s unique resources with opportunities • Is durable and lasting • Provides basis for further improvement • Provides direction and motivation Quality supports each of these characteristics
Quality and Profitability Improved quality of design Improved quality of conformance Higher perceived value Higher prices Lower manufacturing and service costs Increased market share Increased revenues Higher profitability
Evidence that Quality Impacts Business Results • General Accounting Office study of Baldrige Award applicants • Baldrige stock study (see www.quality.nist.gov) • Hendricks and Singhal study of quality award winners • Performance results of Baldrige Award winners
Reliability Overall satisfaction Product and service quality Customer satisfaction On-time delivery Customer retention Error/defects Complaints Leadership for continuous improvement Market share Competitiveness Profits Costs Quality systems and employee involvement Cycle time Organization benefits Turnover Satisfaction Safety & health Productivity GAO TQ Model
Workshop What is Quality
Quality is Not! • 100% inspection • Management fad • Statistical Process Control • Employee involvement • Another excuse for a “management retreat” • Only applies to manufacturing
Quality is… • A philosophic way of thinking • All things can be looked at from a quality perspective • Manufacturing • Managing • Driving • Using • Living • Etc., etc., etc.
Dimensions of Quality • Definitions of Quality Quality means fitness for use - quality of design - quality of conformance Quality is inversely proportional to variability.
Dimensions of Quality • Quality Improvement Quality improvementis the reduction of variability in processes and products. Alternatively, quality improvementis also seen as “waste reduction”.
Quality Terminology Quality Characteristics • Physical - length, weight, voltage, viscosity • Sensory - taste, appearance, color • Time Orientation - reliability, durability, serviceability
Quality Terminology Quality engineeringis the set of operational, managerial, and engineering activities that a company uses to ensure that the quality characteristics of a product are at the nominal or required levels.
Quality Terminology Two types of data • Attributes Data - discrete data, often in the form of counts. • Variables Data - continuous measurements such as length, weight.
Quality Terminology Specifications Quality characteristics being measured are often compared to standards or specifications. • Nominal or target value • Upper Specification Limit (USL) • Lower Specification Limit (LSL)
Quality Terminology • When a component or product does not meet specifications, they are considered to be nonconforming. • A nonconforming product is considered defective if it has one or more defects. • Defects are nonconformities that may seriously affect the safe or effective use of the product.