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IS 470 Agenda - IS 470 Agenda - Week 1Week 1

Administrative• Confirm class roster• Confirm meeting time• Review requirements

• Attendance• Participation• Homework• Presentations

• Discuss course objectives/approach

Lecture/discussion• Chapter 1 Quality Basics• The Customer

Week 3 Assignments• Homework -• Read - Ch 1• Presentations:

“Organizing for Quality”

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Quality BasicsQuality Basics

Chapter One

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Defining QualityDefining Quality ASQ - “quality is a subjective term for

which each person has his or her own definition”

What’s your definition?

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Defining QualityDefining Quality In technical usage, quality can have

two meanings:• the characteristics of a product or service

that bear on its ability to satisfy stated or implied needs, and

• a product or service free of deficiencies

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Defining Quality - “Gurus”Defining Quality - “Gurus” Deming - “non-faulty systems”

• Out of the Crisis Juran - “fitness for use”

• Quality Control Handbook Crosby - “conformance to

requirements”• Quality is Free

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Defining Quality- Different Views Defining Quality- Different Views Customer’s view (more subjective)

• the quality of the design (look, feel, function)• product does what’s intended and lasts

Producer’s view• conformance to requirements (Crosby)• costs of quality (prevention, scrap, warranty)• increasing conformance raises profits

Government’s view• products should be safe• not harmful to environment

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Stout’s ViewStout’s View

Quality = PerformanceExpectation

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Value-based ApproachValue-based Approach Manufacturing

dimensions• Performance• Features• Reliability• Conformance• Durability• Serviceability• Aesthetics• Perceived quality

Service dimensions• Reliability• Responsiveness• Assurance• Empathy• Tangibles

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Our Textbook DefinitionOur Textbook Definition Armand Feigenbaum -

• author: Total Quality Control (1961)• “quality is a customer determination based on

the customer’s actual experience with the product or service, measured against his or her requirements - stated or unstated, conscious or merely sensed, technically operational or entirely subjective - and always representing a moving target in a competitive market.”

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Shift to QualityShift to Quality

Pre-World War IIPre-World War II 19451945 1990’s1990’s

IsolatedIsolatedEconomiesEconomies

Focus onFocus onquantityquantity

Period ofPeriod ofchange fromchange fromquantity toquantity toqualityquality

GlobalGlobalEconomyEconomy

Focus onFocus onqualityquality

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History of Quality ParadigmsHistory of Quality Paradigms Customer-craft quality paradigm:

• – design and build each product for a particular customer.• – producer knows the customer directly.

Mass production and inspection quality paradigm:• focus on designing and building products for mass

consumption.• larger volumes will reduce costs and increases profits.• push products on the customer (limit choices).• quality is maintained by inspecting and detecting bad

products. TQM or “Customer Driven Quality” paradigm:

• potential customers determine what to design and build.• higher quality will be obtained by preventing problems

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Need for a New StrategyNeed for a New Strategy Foreign markets have grown

• Import barriers and protection are not the answer.

Consumers are offered more choices• They have become more discriminating.

Consumers are more sophisticated• They demand new and better products.

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Why Quality Improvement?Why Quality Improvement? Global Competition

• Economic and political boundaries are slowly vanishing

• The 1950’s slogan “Built by Americans for Americans” is very far from reality in the 2000’s.

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Why Quality Improvement?Why Quality Improvement? “On the stroke of midnight on December

31, 1992, the United States will become the second-largest economy in the world for the first time in a century”.• Quote from a 1990 Xerox quality conference.

More than corporate profits are at risk; the challenge is to the American standard of living.

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Why Quality Improvement?Why Quality Improvement? It pays

• Less rework, fewer mistakes, fewer delays, and better use of time and materials

• In United States today, 15 to 20% of the production costs are incurred in finding and correcting mistakes.

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How Do Organizations Compete?How Do Organizations Compete? Most common competitive measures:

• Quality (both real and perceived)• Cost• Delivery (lead time and accuracy)

Other measures• safety,• employee morale,• product development (time-to-market, innovative

products)

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Contrasting ApproachesContrasting Approaches Passive /

Reactive• Setting

acceptable quality levels

• Inspecting to measure compliance

Proactive / Preventive• Design quality in

products and processes• Identify sources of

variation (processes and materials)

• Monitor process performance

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The Quality HierarchyThe Quality Hierarchy

Inspection

Quality Control

Quality Assurance

Total QualityManagement

Incorporates QA/QC activitiesinto company-wide system aimedat satisfying the customer

Actions to insure products orservices conform to companyrequirements

Operational techniques to makeinspection more efficient and toreduce the costs of quality.

Inspect products

Prevention

Detection

SPC

SQC