environmental and quality aspects in design and ...rudan/materiale_didattico/... · environmental...

Lecture Two - Total Quality Management

Environmental and Quality Aspects in Design and ManufacturingModule I – Business Excellence and Project ManagementGaetano C. D’Emma – Bologna – Oct-Nov 2009

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Environmental and Quality Aspectsin Design and ManufacturingModule I: Business Excellence

and Project Management

Gaetano C. D’Emma

Lecture Two: Total Quality Management

22nd of October 2009

Quality Assurance

Quality Assurance covers all activities from design, development, production, installation, servicing and documentation:

“fit for purpose““do it right the first time”.

Quality Assurance includesthe regulation of the quality of raw materials, assemblies, products and components;services related to production;management, production inspection processes.

One of the most widely used paradigms is thePlan-Do-Check-Act approach (PDCA, Shewhart or Deming cycle).



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Plan-Do-Check-Act

PDCA

PLAN Establish the objectives and processes necessary to deliver results in accordance with the expected output.

DO Implement the new processes, on a small scale if possible.

CHECK Measure the new processes and compare the results against the expected results to ascertain any differences.

ACT Analyze the differences to determine their cause.



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Quality Assurance

Determination of adequate technical requirement of inputs and outputs.

Certification and rating of suppliers.

Testing of procured material for its conformance to established quality, performance, safety, and reliabilitystandards.

Proper receipt, storage, and issue of material.

Audit of the process quality.

Evaluation of the process to establish requiredcorrective response audit of the final output for conformance to (a) technical, (b) reliability, (c) maintainability, and (d) performance requirements.

Quality Assurance

"Assurance" consists of a system of rules or procedures setting standards for activities in an organisation.

It is possible to develop this for one company, but having one which several organisations conform to has its benefits.

Once the benefits of applying such standards had become apparent, the concept spread to industries in general, leading to the development by the British Standards Institute in 1979 of a standardised, formal quality assurance system known as BS 5750.

This, in turn, led to the development of an internationally recognised Quality System Standard known as ISO 9000.



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Sales Decrease

Despite the frameworks of (statistical) Quality Control and/or Quality Assurance have been implemented, sales decrease!

Why?

Products are of “good” quality, but...

Sales Decrease – What to Do?

Because Quality Control and/or Quality Assurance are primarily applied to production activities.

The major problem which leads to a decrease in salesis that the specifications did not include the most important factor, “What the customer required”.

Solution:Apply the Quality Assurance principles to all areas of business from design to delivery instead of confining them only to production activities.

Continue to use Quality Control, Quality Assurance and PDCA!



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Improvements ?

Consider the different processes in an organisation..

Inspect the processes, not only the final product.

Where mistakes are being made ?

Why mistakes are being made ?

How to avoid recurring mistakes ?

Process

A set of interrelated or interacting activities that that transforms inputs into outputs.

A sequence of activities that achieves a business result or a key “outcome”.

Processes correspond to natural business activities, but are often buried in organisational structures.

Major processes typically cross organisational boundaries to complete the desired business outcome.



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On-Going

Focus on the critical issues.

Improve in closing identified gaps.

Implement the solution.

Evaluate again.

Start again the whole cycle.

Total Quality Control vs. Quality Control

Inspection of processes

Prevention actions

Measure and analyse failures



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Total Quality Control

Management system in which

all employees in all departments

improve quality and procedures

to give customers a product which is most economical, useful and of best quality.

How to Measure a Process ?

Example: Deliveries, part of logistics process

Logistics is the management of the flow of goods, between the point of origin and the point of consumption in order to meet the requirements of consumers.

Logistics involve the integration of information, transportation, inventory, warehousing, material-handling, and packaging.



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Deliveries

A customer order can have different positions.

For each position there is:an item number,the item description,the item price,the ordered amount andthe price for the total number of that item.

An order can be dispatched and delivered fully or partially.

A customer complaint in consequence of a wrong delivery has two possible sources:

wrong item delivered,wrong quantity delivered.

Delivery Failures

To measure the quality of deliveries, a database is built up with the following monthly information:

Number of positions dispatchedNumber of wrong items deliveredNumber of wrong quantities delivered

The number of wrong deliveries is the sum of the number of wrong items and of wrong quantities.



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Wrong items & wrong quantities

0

5

10

15

20

25

30

35

40

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Wrong quantity Wrong item

Wrong deliveries & Number of positions

0

5

10

15

20

25

30

35

40

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Wrongdeliveries

0

1'000

2'000

3'000

4'000

5'000

6'000

7'000

8'000

Nb. of positions

Wrong deliveries Nb of positions



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Wrong deliveries

0

1

2

3

4

5

6

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

0/00

Error rate Rolling 12 months

How to Improve a Process ?

Establish cross-functional teams.

Identify and describe the process.

Measure and analyse the process.

Focus on the "what" and "how",not on the "who" and "where".



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Dynamics

Objective reality:specifications, features, standards, location, accessibility, etc.

Perceived reality:It's better than I expected.It's a nice product.I will come back.

Competitors !

Find the weak point of competition.

No Value

Dynamics?

How to take into account the market dynamics?

Expand Total Quality Control into Total Quality Management!



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Total Quality Management

Total Quality Management (TQM) is a dynamic approach to management.

It involves all the preceding aspects of quality quality control (QC),quality assurance (QA).total quality control (TQC),


Total Quality Management (TQM) integrates quality control, quality assurance and total quality control further completely into an organisation.

TQM focuses on : Customer SatisfactionInvolvementContinuous Improvement



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How to achieve TQM ?

Recognise that improvement of processes must be on-going.

Improve customer satisfaction.

Measure both customer and employees feedback.

Use all the quality tools available.

TQM - Customer Satisfaction

Consider both current and future customer needs.

Develop new products and services that customers might not think of on their own, but which they would respond positively to.

Exceed customers' expectations ! How ?



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Exceed Customers' Expectations

Use Quality Function Deployment!

This method ensures quality from the very beginning of the development of a new product.

Quality Function Deployment identifies and translatescustomer requirements into technical specifications for

product planning, design, process, production and delivery.

QFD Method

The method Quality Function Deployment consists of a structured procedure that

starts with the qualities desired by the customer,

leads through the functions required to provide these products,

identifies the means for deploying the available resources to best provide these products.



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TQM - Involvement

Everyone in an organisation must be committed.

Achieving this commitment is not easy and takes a long time.

Organisations need strong leadership and commitment from the top.

Leadership?

Total Quality Management : (…) Oganisations need strong leadership and commitment from the top.

Leadership means Set directions, values and expectationsCreate customer focusConstancy of purpose



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Constancy of Purpose

The organisation's leaders must create :

a clarity and unity of purpose within the organisation and

an environment in which people can excel.

Contribution to Customers' View

Quality and performance are judged by customers :

Reduce defects and errors

Meet specifications

Reduce complaints

Elimination of causes of dissatisfaction



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TQM - Continuous Improvement

All processes are constantly under examination.

Everyone in the company is committed to the concept of continuous improvement.

Do right 1st time, improve 2nd time !

Continuous Improvement

PLAN for changes to bringabout improvement

DO changes on a smallscale first to trial them

CHECK to see if changesare working and to

investigate selectedprocesses

ACT to get the greatestbenefit from changes



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CustomerSatisfied ?

Y ⇒ Retention

N ⇒ Risks

Customer Value Management


BuildProducts andServices

DeliverProducts andServices

Service theCustomer

CreateNewOfferings

CustomerNeedIdentified

Innovation Process Operations Process Post-sale Process

Conclusion of Lectures One & Two

Quality Control: Check the quality of a product by testing samples.

Quality Assurance:“Fit for purpose““Do it right the first time”.

Total Quality Control:All employees improve processes.

Total Quality Management:Customer SatisfactionInvolvementContinuous Improvement



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Something to be aware of....

“There is nothing more difficult,

nor doubtful of success,

nor dangerous to handle,

than to initiate a new order of things.”

Niccolò Machiavelli

References of Lecture Two

Wikipedia, http://en.wikipedia.org

Department of Business Organisation, Heriot Watt University, Edinburgh, Scotlandhttp://omni.bus.ed.ac.uk/opsman/quality/front.htm

Quality Function Deployment Institute is the official source for QFD, http://www.qfdi.org

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