defining quality

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 TUM School of Management Production and Supply Chain Management Prof Martin Grunow T echnische Universität München Quality Engineering & Management  Session 1.1: Defining Quality Dr. Holly Ott Production and Supply Chain Management Chair: Prof. Martin Grunow TUM School of Management  Holly Ott Quality Engineering & Management Module 1.1 1

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Defining Quality

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  • TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universitt Mnchen

    Quality Engineering & Management

    Session 1.1: Defining Quality

    Dr. Holly Ott Production and Supply Chain Management

    Chair: Prof. Martin Grunow TUM School of Management

    Holly Ott Quality Engineering & Management Module 1.1 1

  • TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universitt Mnchen

    Defining Quality

    2 Quality Engineering & Management Module 1.1 Holly Ott

    Defining Quality Understanding

    Customer Expectations

    DEFINE

    MEASURE

  • TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universitt Mnchen

    Learning Objectives

    3 Quality Engineering & Management Module 1.1 Holly Ott

    Define quality as relative to a set of requirements and in terms of customer expectations.

    Compare the concept of quality management today to the past. List major milestones in the development of Quality Management.

  • TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universitt Mnchen

    Defining Quality

    4 Quality Engineering & Management Module 1.1 Holly Ott

    Fitness for use Dr. Juran

    Fitness for use and meeting or exceeding customer expectations. The most fundamental truth is that quality is relative: The customer focuses simply on value, seeing it as a ratio of quality over priceOnly when we offer more value than our competitor do we really succeed.

    - Professor Godfrey, A. Blanton (2002), "What is Quality?" Quality Digest, January, pp. 12.

    2012 from "A First Course in Quality Engineering: Integrating Statistical and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced by permission of Taylor and Francis Group, LLC, a division of Informa plc.

  • TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universitt Mnchen

    Defining Quality

    5 Quality Engineering & Management Module 1.1 Holly Ott

    Quality has several dimensions: Performance - Features - Reliability Conformance

    Durability - Serviceability - Aesthetics Perceived Quality

    Quality must be defined for each product based on what the customer wants in the product through measurable characteristics and their limits of variability

    2012 from "A First Course in Quality Engineering: Integrating Statistical and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced by permission of Taylor and Francis Group, LLC, a division of Informa plc.

  • TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universitt Mnchen

    Defining Quality

    6 Quality Engineering & Management Module 1.1 Holly Ott

    Quality is always relative to a set of requirements.

    Functional (breakdown) Subjective (optical, aesthetic)

    Quality meets or exceeds customer expectations.

    What is Non-Quality?

    2012 from "A First Course in Quality Engineering: Integrating Statistical and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced by permission of Taylor and Francis Group, LLC, a division of Informa plc.

  • TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universitt Mnchen

    Defining Quality

    7 Quality Engineering & Management Module 1.1 Holly Ott

    "It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently. (Warren Buffett)

  • TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universitt Mnchen

    Past View of Quality Management

    8 Quality Engineering & Management Module 1.1 Holly Ott

    Preconception: Quality is

    Testing Costly Re-active

  • TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universitt Mnchen

    Historical Overview

    9 Quality Engineering & Management Module 1.1 Holly Ott

    2012 from "A First Course in Quality Engineering: Integrating Statistical and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced by permission of Taylor and Francis Group, LLC, a division of Informa plc.

    1920s: Bell Laboratories Dr. Walter A. Shewhart: Statistical control charts / Drs. Harold Dodge & Harry Romig: Sampling plans

    1920s: Sir Ronald Fisher / 1950s: Dr. Genechi Taguchi: product and process D.O.E. for engineers.

    1940s: WWII: Statistical methods used in the production of goods and ammunition for the U.S. military

    Post-War 1950s: development of the science of reliability

  • TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universitt Mnchen

    10 Quality Engineering & Management Module 1.1 Holly Ott

    2012 from "A First Course in Quality Engineering: Integrating Statistical and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced by permission of Taylor and Francis Group, LLC, a division of Informa plc.

    1950: Edward Deming Toyota Production System (Lean Manufacturing)

    1980s: Motorola Six-Sigma Process : systematic, problem-solving approach

    1987: Creation of Standards for Quality Assurance by the International Organization for Standardization (ISO 9000)

    Today: acceptance of Quality as a strategic parameter for business planning

    Consumer awareness of quality

    Historical Overview

  • TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universitt Mnchen

    Statistics in Quality Six Sigma

    11 Quality Engineering & Management Module 1.1 Holly Ott

    Example: Assume a car consists of 10,000 parts and production processes. Scenario A: Failure rate per part of 6,210 ppm (4 sigma)

    Would be 100% faulty vehicles. Scenario B: Stable processes with 3.4 ppm per part (6 sigma)

    Roughly 97% fault-free vehicles.

    Source of Graph: Automotive News Europe (Supplement), March 2008

  • TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universitt Mnchen

    Today's View of Quality Management

    12 Quality Engineering & Management Module 1.1 Holly Ott

    Source: Manfred Seika own image (orange icons are examples only)

  • TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universitt Mnchen

    QM is Interdisciplinary

    13 Quality Engineering & Management Module 1.1 Holly Ott

    Source: Manfred Seika own image (orange icons are examples only)

    CSR

    Finance

    Design

    Communication Sociology

    Ethics

    Business

    Organisational

    Supply Chain

    Statistics

    Engineering

    Marketing

    Law Production

    Communication

  • TUM School of Management Production and Supply Chain Management Prof Martin Grunow Technische Universitt Mnchen

    Coming Up

    Lecture 1.2 Understanding Customer Expectations

    14 Quality Engineering & Management Module 1.1 Holly Ott