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QUALITY PLANNING. By Zaipul Anwar Business & Advanced Technology Centre, Universiti Teknologi Malaysia. QUALITY PLANNING. What Is Quality Planning? Quality planning is the activity of determining customer needs and developing the products and processes required to meet those needs.

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quality planning
QUALITY PLANNING

By Zaipul AnwarBusiness & Advanced Technology Centre,Universiti Teknologi Malaysia

quality planning2
QUALITY PLANNING
  • What Is Quality Planning?

Quality planning is the activity of

    • determining customer needs and
    • developing the products and processes required to meet those needs
quality planning3
QUALITY PLANNING
  • For managers to provide this leadership requires that they
    • Understand how quality planning is being done
    • Understand how quality planning should be done
    • Provide the needed infrastructure and resources

The leadership for change must come from the managers

quality planning4
QUALITY PLANNING
  • MULTIPLE LEVELS OF QUALITY PLANNING
    • The worker level.
    • The departmental level.
    • The multifunctional level
      • This level is concerned with broad processes, such as new product development, recruitment, purchasing, and billing. Such processes thread their way through multiple company functions
    • The corporate or divisional level
quality planning5
OUR ROLE

Customer Processor Supplier

OUR

PROCESS (ES)

Our Customer

Our Supplier

Our Product (s)

Our Inputs

QUALITY PLANNING
the quality planning diagram
The Quality Planning diagram
  • To illustrate, the company is a processor team. In its role as a customerit receives such inputs as
      • Information concerning client needs, competitive products, and government regulations
      • Money from sales and investors
      • Purchased goods and services
      • Feedback from customers
the quality planning diagram7
The Quality Planning diagram
  • In its role as a processor, the company converts these and other inputs into products such as sales contracts, purchase orders, saleable goods and services, invoices, and reports of many kinds
the quality planning diagram8
The Quality Planning diagram
  • In its role as supplier, the company provides clients with goods services, and invoices, and provides suppliers with purchase orders, payments, and feedback. Information is provided to all
slide9
Existing Product and Process

Identify Customers

List of Customers

Discover Customers’ Needs

List of Customers’ Needs (in their language)

THE QUALITY PLANNING ROAD MAP

Translate

APPLY MEASUREMENT

Customers’ Needs (In our language)

Develop Product

Product Features

Develop Process

Process Features (process ready to produce)

Transfer to Operations

quality planning10
Existing Product and Process

INPUT

PROCESS

Identify Customers

OUTPUT

List of Customers

Input-output diagram for identifying customers

QUALITY PLANNING
  • The input is the subject matter of the planning—the product (or process) under consideration
  • The process consists of the activities conducted to discover who is affected by the product
  • The output is a list of those who are affected—the customers
flow charting
Flow Charting

B. Micro-level Flow Charting

A. Macro-level Flow Charting

  • Source: AT&T Network Operations Group
  • Provides understanding of the whole
  • Identifies customers previously neglected
  • Identifies opportunities for improvement
pareto analysis of customers and sales volume
100

Useful Many

Percent

Vital Few

0

Sales

Customers

Pareto analysis of customers and sales volume
  • Use of the Pareto principle
      • A relative few (“vital few”), each of whom is of great importance to us.
      • A relatively large number of customers, each of whom is only of modest importance to us (the “useful many”)
use of the pareto principle example
Use of the Pareto principle - example
  • For example, two types of clients book hotel rooms:
    • Travellers who arrive one by one at random
    • Planners of meetings and conventions who book blocks of rooms far in advance
  • The planners of meetings and conventions constitute the vital-few customers. These planners receive special attention from the hotel. The travellers are the useful many, and they receive standardised attention
key interfaces
Key Interfaces

BUSINESSEXAMPLE OF KEY INTERFACE

Banking Bank teller and depositorRestaurant Waiter and dinerHotel Reception clerk and guestRetailing Salesperson and shopperTelephone Operator and subscriber

a customer is a cast of characters
A Customer Is a Cast of Characters

Example: Those who sell supplies to hospitals soon learn that their customers include the hospital administrator, the purchasing director, the quality director, various heads of specialized departments (e.g., pharmacy, X-ray, histology, and cardiology), and various professionals (e.g., physicians, surgeons, and nurses). All have needs, and all have some degree of influence on what is to be bought, and from whom

a customer is a cast of characters16
A Customer Is a Cast of Characters

Internal Customers

  • Internal customers include the managers of the affected departments. Their influence on quality is considerable.
  • Internal customers also include the work force. Individually, they are among the useful many. Collectively, they are one of the vital few
a customer is a cast of characters17
A Customer Is a Cast of Characters

Consumers

  • Consumers are a vital category of useful-many customers. Their limited technological literacy forces them to rely heavily on fallible, biased human sensing in making their decisions about which products to buy. They discover the technological adequacy of the product later, through subsequent usage. The results of that usage are then influential regarding repeat purchases.
a customer is a cast of characters18
A Customer Is a Cast of Characters

Consumers

  • Suppliers face these realities in various ways:

1. Accept some consumer perceptions, bias and all, and then design products and practices to respond to those consumer perceptions.

2. Try to change consumer perceptions by such methods as providing demonstrations or opportunities for trial use of products.

3. Publish technological data and propaganda to stimulate changes in perceptions.

classification based on use
Classification Based on Use
  • Processors. They use a product as inputs to their process. They then perform additional processing after which they sell the resulting product to their customers. In consequence, the initial product affects multiple levels of customers.
  • Merchants. They buy a product for resale. As part of the resale they may perform some processing along with breaking bulk and repackaging. As with the processors, the initial product affects multiple levels of customers: the merchant, the merchant’s clients, and so on through the distribution chain.
  • Ultimate users. They are the final destination of the product. In some product lines there is a market for used products, so that there are multiple tiers of ultimate users.
  • The public. Members of the public may be affected by a company even though they do not buy its products. The most obvious impacts relate to product safety or to damage to the environment. There are other impacts as well.
slide20
What role should managers play at each step of the planning process?

What role should managers play with respect to the quality planning process generally?

  • auditing of the quality-planning process
    • (the quality-planning process generally, specific elements of the quality-planning process)
  • managers should assure that the methods in use for identifying customers are able to provide the quality planners with the essential customer base
slide21
Existing Product and Process

Identify Customers

List of Customers

Discover Customers’ Needs

List of Customers’ Needs (in their language)

THE QUALITY PLANNING ROAD MAP

Translate

APPLY MEASUREMENT

Customers’ Needs (In our language)

Develop Product

Product Features

Develop Process

Process Features (process ready to produce)

Transfer to Operations

input output diagram for identifying customers needs
Input-output diagram for identifying customers’ needs
  • Discovery of customers’ needs is the second step on the quality-planning road map

List of Customers

INPUT

PROCESS

OUTPUT

Discover Customers’ Needs

Customers’ Needs

(in their language)

types of customers needs
Types of customers’ needs
  • Stated Needs and Real Needs
  • Perceived Needs
  • Cultural Needs
  • Needs Traceable to Unintended Use
methods for discovering customers needs
Methods for Discovering Customers’ Needs
  • Be a Customer
  • Communicate with Customers
  • Market Research
  • Simulate Customers’ Use

Customers’ Needs Are a Moving Target

a role for managers
A ROLE FOR MANAGERS
  • Visits with key customers
  • Review of reports on market researches, sales, customer service, product dissatisfactions, etc.
  • Attendance at industry conferences and shows
slide26
Existing Product and Process

Identify Customers

List of Customers

Discover Customers’ Needs

List of Customers’ Needs (in their language)

THE QUALITY PLANNING ROAD MAP

Translate

APPLY MEASUREMENT

Customers’ Needs (In our language)

Develop Product

Product Features

Develop Process

Process Features (process ready to produce)

Transfer to Operations

input output diagram for translation
Customers’ Needs

(in their language)

INPUT

PROCESS

OUTPUT

Translate

Customers’ Needs

(in our language)

Input-output diagram for translation

Customer needs may be stated in any of several languages:

1. The customer’s language

2. The producer or supplier’s (“our”) language

3. A common language

common languages in the company
Common languages in the company

Upper

Management: Language of

Money

Middle Management: Must be Bilingual

Lower Management and Non-supervisors: Language of Things

a role for managers29
A Role for Managers
  • Managers should accelerate this evolution by creating project teams whose missions are directed at establishing the needed glossaries, standardisation, and measurement.
spreadsheet customer needs
NEEDS

TRANSLATION

NEEDS

TRANSLATION

Tertiary

Secondary

Low purchase price

Warranty coverage

Length of

Warranty

Spreadsheet: Customer needs
slide31
Existing Product and Process

Identify Customers

List of Customers

Discover Customers’ Needs

List of Customers’ Needs (in their language)

THE QUALITY PLANNING ROAD MAP

Translate

APPLY MEASUREMENT

Customers’ Needs (In our language)

Develop Product

Product Features

Develop Process

Process Features (process ready to produce)

Transfer to Operations

input output diagram for product development
Customers’ Needs

(in units of measure)

INPUT

PROCESS

OUTPUT

Develop Product

Product Features

Input-output diagram for product development

Product development is the activity of determining the product features that respond to customer needs

the spiral of progress in quality
The spiral of progress in quality

FEEDBACK

MAINTENANCE

USE

RETAIL

WHOLESALE

slide34
The following table lists some of the products, along with who the suppliers are and who the principal customers are
slide35
Product Features: The Criteria
  • Meets the needs of our customers. “Needs” here, means all customers’ needs: stated, perceived, real, and cultural.
  • Meets our needs as a supplier including the needs of our internal customers.
  • Meets competition. The fact that a product meets customer needs does not assure that customers will buy it; a competitor’s product may be better, or give better value. Hence, meeting competition is an important criterion for product developers.
  • Minimises the combined costs. Customers and suppliers incur costs when they use or supply the product, and each tries to keep their respective costs to a minimum. However, the true optimum as viewed by society is to minimize the combined costs
slide36
Disciplines for determining product features include the quality-oriented disciplines
  • Models and data systems for evaluating and predicting product reliability and maintainability
  • Process-capability studies for evaluating and predicting producibility
  • Experiments for discovering the optimum result attainable from multiple converging variables
  • Spreadsheets for assembling numerous interrelated data into condensed, easy-to-grasp forms
  • Methods for evaluating cost of poor quality
  • Methods for guarding against human error
  • Decision trees, flow diagrams, and still other aids to quality analysis and decision making
product design
Product Design
  • An essential part of product development (i.e., providing the product features required to meet customer needs) is product design. As used here, product design is the activity of defining the product features required meeting customer needs.
  • Product design is a creative process based largely on technological or functional expertise. The designers are design engineers, systems analysts, and still other planners. The end results of product design are specifications, drawings, and procedures
product design38
Product Design
  • The Pros and Cons of Structure
    • Cons - It is a lot of extra work to prepare the spreadsheets (and other elements) of the structured approach
    • Pros -
      • It is an aid to human effectiveness, supplementing human memory and helping to guard against human error
      • It is an aid to participation in quality planning; that is, completing the spreadsheets requires inputs from the affected departments
brief planning and lengthy execution versus lengthy planning and brief execution
Japan Plan

Japan Execute

U.S. Plan

U.S. Execute

Time

Brief planning and lengthy execution versus lengthy planning and brief execution
during the process of launching new products use is made of three generic forms of spread sheet
During the process of launching new products, use is made of three generic forms of spread-sheet
slide43
Existing Product and Process

Identify Customers

List of Customers

Discover Customers’ Needs

List of Customers’ Needs (in their language)

THE QUALITY PLANNING ROAD MAP

Translate

APPLY MEASUREMENT

Customers’ Needs (In our language)

Develop Product

Product Features

Develop Process

Process Features (process ready to produce)

Transfer to Operations

input output diagram for process development
Product Goal

INPUT

PROCESS

OUTPUT

Develop Process

Process Features

Input-output diagram for process development

A process is “a systematic series of actions directed to the achievement of a goal.” As used here, the term includes all functions, non-manufacturing as well as manufacturing. It also includes the human forces as well as the physical facilities

process development
Process Development
  • Process development is a generic term that includes the activities of product design review, choice of process, and process design, provision of facilities, and provision of software (methods, procedures, cautions).
  • Our emphasis is on process design, which is defined as follows: the activity of defining the specific means to be used by the operating forces for meeting the product goals.
  • This definition covers

(a) the physical equipment to be provided;

(b) the associated software (the brain and nervous system of the equipment); and

(c) information on how to operate, control, and maintain the equipment

process capability
Process Capability
  • In the case of process development a major aid for prediction is “process capability”: the inherent ability of a process to carry out its intended mission
  • Example - Engineers who design goods are aided by tables that set out the properties of materials and the failure rates of components
process design
Process Design
  • The end result of process design is a definition of the means to be used by the operating forces for meeting the product goals.
  • To arrive at this definition the process designers require various inputs, especially knowledge of the product quality goals, of the operating conditions, and of the capability of alternative processes
process design48
Supplier Dept.

In-House Dept.

Sub- Assembly Dept.

Final Assembly

To Test and Usage

Process Design

Most major processes consist of multiple operations (also called steps, tasks, unit processes, etc.).

Examples of such operations are opening the mail and heat treating. Such operations are linked together in various ways, mainly by a combination of a procession and an assembly tree

slide50
Existing Product and Process

Identify Customers

List of Customers

Discover Customers’ Needs

List of Customers’ Needs (in their language)

THE QUALITY PLANNING ROAD MAP

Translate

APPLY MEASUREMENT

Customers’ Needs (In our language)

Develop Product

Product Features

Develop Process

Process Features (process ready to produce)

Transfer to Operations

transfer to operations
Transfer to operations
  • Transfer to operations includes a transfer of responsibility from the planners to the operating managers
  • Proof of process capability can be provided by direct measurement of the process (if feasible)
  • Other ways
    • The dry run
    • The pilot test
    • The Acceptance test
    • Simulation
auditing of the quality planning process
AUDITING OF THE QUALITY-PLANNING PROCESS
  • The analysis should concentrate on providing answers to results-oriented questions such as,
    • How well were customers’ needs met?
    • How lengthy was the cycle time?
    • How extensive was the redoing of prior work?
  • The analysis should also examine the quality-planning process used to secure these results. Here the need is to provide answers to questions such as,
    • What specific features of the quality-planning process seemed to have been associated with well-planned projects?
    • What specific obstacles were encountered by the planners?
    • What can be done to help the planners (e.g., superior data base and training)?
slide53
QUALITY CIRCLES
  • The World Turned Upside Down!

CUSTOMER FOCUSED /

CONTINUOUS IMPROVEMENT

CONTROL

CEO

OPERATORS

SNR MGT

SUPERVISORS

MANAGEMENT

MANAGEMENT

SUPERVISORS

SNR MGT

OPERATORS

CEO

MASS PRODUCTIVITY /

SCIENTIFIC MANAGEMENT

COACH

the benefits of quality circles
THE BENEFITS OF QUALITY CIRCLES
  • A Direct Pay-off (cost/benefits)
  • An Operator To Manager Dialogue (involvement, participation, communication)
  • A Manager To Manager Dialogue (awareness)
  • An Operator to Operator Dialogue (attitudes)
  • A Quality Mindedness (product quality and reliability, prevention of non-conformance)
  • The Personal Development of the Participants
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