quality management overview nic

7/31/2019 Quality Management Overview Nic

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Productivity and Quality Tools

QUALITY MANAGEMENT

AN OVERVIEW


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One of the most important issues

that businesses have focused on inthe last 20-30 years has beenquality.

As markets have become muchmore competitive - quality hasbecome widely regarded as a key

ingredient for success in business.


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Meaning of Quality Websters Dictionary

degree of excellence of a thing

American Society for Quality

totality of features and characteristics thatsatisfy needs

Consumers and Producers Perspective


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This is a modern definition of quality


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This is a traditional definition

Quality of design

Quality of conformance


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What is quality? Quality is first and foremost about

meeting the needs and expectations

of customers. It is important tounderstand that quality is about morethan a product simply "working

properly".


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QUALITY

Quality is the ability of a product or serviceto consistently meet or exceed customer

expectations. Quality is defined as meeting or exceeding

customers requirements now and in the

future, i.e. the product or service is fit for the

customers use.


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quality as representing all the

features of a product or servicethat affect its ability to meetcustomer needs.

If the product or service meets allthose needs - then it passes thequality test. If it doesn't, then it is

sub-standard.


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What is Quality?

Fitness for Use

Conformance to Specifications

Producing the Very Best Products Excellence in Products and Services

Total Customer Satisfaction

Exceeding Customer Expectations Quality improvement starts with reducing Product

VARIABILITY.


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1 What is Quality? Inspection (Detection)

Quality Control (Detection using statistics)

Quality Assurance (Prevention)

Zero Defects e.g. ISO 9001:2000 Total Quality Management

e.g. EFQM Excellence Model


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Statistical Quality Control (SQC) The application of statistical techniques to the

control of quality (SPC, Acceptance Sampling, etc.)

Statistical Process Control (SPC) The application of statistical techniques to the

control of processes (sometimes considered asubset of SQC)

Total Quality Management (TQM) An all-encompassing approach to quality

consistent with Demings 14 points

Some definitions-

Definitions from Quality Systems Terminology, American

Society for Quality Control, ANSI/ASQC A3-1987


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Statistical Process Control How do we reduce Product Variability?

We use Statistical Process Control ! (SPC)

Statistical Process Control: The application

of statistical techniques to the control andimprovement of processes.


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Meaning of Quality:

Consumers Perspective Fitness for use

how well product orservice does what it is

supposed to

Quality of design

designing qualitycharacteristics into aproduct or service

A Mercedes and a Fordare equally fit for use,but with differentdesign dimensions


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Dimensions of Quality:

Manufactured Products 1 Performance

basic operating characteristics of a product; how

well a car is handled or its gas mileage 2 Features

extra items added to basic features, such as astereo CD or a leather interior in a car

3 Reliability probability that a product will operate properly

within an expected time frame; that is, a TV willwork without repair for about seven years


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Dimensions of Quality:Manufactured Products (cont.)

4 Durability

how long product lasts before replacement

5 Serviceability

ease of getting repairs, speed of repairs,

courtesy and competence of repair person

6 Conformance

degree to which a product meets pre

established standards


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Dimensions of Quality:Manufactured Products (cont.)

7 Aesthetics how a product looks, feels, sounds, smells,

or tastes 8 Perceptions or Perceived Quality

subjective perceptions based on brandname, advertising, and the like

9 Safety assurance that customer will not suffer

injury or harm from a product; an

especially important consideration forautomobiles


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Dimensions of Quality:Service

1 Time and Timeliness

How long must a customer wait for service,

and is it completed on time? Is an overnight package delivered

overnight?

2 Completeness: Is everything customer asked for provided?

Is a mail order from a catalogue company

complete when delivered?


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Dimensions of Quality:Service (cont.)

3 Courtesy:

How are customers treated by employees?

Are catalogue phone operators nice andare their voices pleasant?

4 Consistency

Is the same level of service provided toeach customer each time?

Is your newspaper delivered on time every

morning?


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Dimensions of Quality:Service (cont.)

5 Accessibility and convenience How easy is it to obtain service?

Does a service representative answer you calls quickly?

6 Accuracy Is the service performed right every time?

Is your bank or credit card statement correct everymonth?

7 Responsiveness How well does the company react to unusual

situations?

How well is a telephone operator able to respond to acustomers questions?


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Meaning of Quality:Producers Perspective

8 Quality of Conformance

Making sure a product or service is

produced according to design if new tires do not conform to specifications,

they wobble

if a hotel room is not clean when a guest

checks in, the hotel is not functioning accordingto specifications of its design


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Meaning of Quality:A Final Perspective

Consumers and producersperspectives depend on each other

Consumers perspective: PRICE

Producers perspective: COST

Consumers view must dominate


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Fitness forConsumer Use

Producers Perspective Consumers Perspective

Quality of Conformance

Conformance to

specifications Cost

Quality of Design

Quality characteristics

Price

MarketingProduction

Meaning of Quality

Meaning of Quality


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Quality Gurus

Walter Shewart In 1920s, developed control charts

Introduced the termquality assurance

W. Edwards Deming Developed courses during World War II to teach statistical

quality-control techniques to engineers and executives ofcompanies that were military suppliers

After the war, began teaching statistical quality control to

Japanese companies Joseph M. Juran

Followed Deming to Japan in 1954

Focused on strategic quality planning


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Quality Gurus (cont.)

Armand V. Feigenbaum In 1951, introduced concepts oftotal quality control and

continuous quality improvement

Philip Crosby In 1979, emphasized that costs of poor quality far outweigh

the cost of preventing poor quality

In 1984, defined absolutes of quality managementconformance to requirements, prevention, andzero

defects Kaoru Ishikawa

Promoted use ofquality circles

Developedfishbone diagram

Emphasized importance of internal customer


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Evolution of QualityManagement

1924 - Statistical process control charts

1930 - Tables for acceptance sampling

1940s - Statistical sampling techniques1950s - Quality assurance/TQC

1960s - Zero defects

1970s - Quality assurance in services


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Gurus!
http://www.lecturer-uk.co.uk/keele/Juran.ppthttp://www.lecturer-uk.co.uk/keele/Taguchi.ppthttp://www.lecturer-uk.co.uk/keele/Shingo.ppthttp://www.lecturer-uk.co.uk/keele/Ishikawa.ppthttp://www.asq.org/join/about/history/shewhart.htmlhttp://www.lecturer-uk.co.uk/keele/Peters.ppthttp://www.qmtzone.f9.co.uk/html/feiganbaum.htmlhttp://www.lecturer-uk.co.uk/keele/Crosby.ppthttp://www.lecturer-uk.co.uk/keele/Deming.ppt


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The Quality Gurus

Walter ShewhartFather of statistical quality control

W. Edwards Deming Joseph M. Juran

Armand Feignbaum

Philip B. Crosby

Kaoru Ishikawa

Genichi Taguchi


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Key Contributors to QualityManagement

Contributor

Deming

Juran

Feignbaum

Crosby

Ishikawa

Taguchi

Known for

14 points; special & common causes ofvariation

Quality is fitness for use; quality trilogy(Q planning, Q control, Q improvement)

Quality is a total field

Quality is free; zero defects

Cause-and effect diagrams; qualitycircles

Taguchi loss function

Table 9.2


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The early 50s

Three gurus who took the message to

Japan

Deming

Juran

Feigenbaum

Guru summaries adapted from Prof Tony BendellAvailable at:www.cems.uwe.ac.uk/~jmcobby/industrialstats/qualitygurus.pdfand from

http://www.qmtzone.f9.co.uk/html/guru.html
http://www.cems.uwe.ac.uk/~jmcobby/industrialstats/qualitygurus.pdfhttp://www.cems.uwe.ac.uk/~jmcobby/industrialstats/qualitygurus.pdfhttp://www.lecturer-uk.co.uk/keele/Deming.ppt


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Dr W Edwards Deming

Deming (1900-1994) is arguably the most famous of all the

Quality Gurus and is often credited with Japan's rise to

industrial dominance.

He was born in 1900 and was awarded a doctorate in

mathematical physics in 1928 by Yale University.

His approach to quality draws heavily on Shewhart's concept

ofstatistical process control.

Deming's work had initially no impact in America primarily

because in the postwar booming market, everything built was

sold.
http://www.lecturer-uk.co.uk/keele/Deming.ppt


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Dr W Edwards Deming

For many years at the start of his career he worked as a

statistician for the US Government Service, specialisingin statistical sampling techniques.

After the war, in 1946, he went to Japan as an Adviserto the Japanese Census. The Union of JapaneseScientists and Engineers (JUSE) invited him to lecture onquality control techniques to engineers and senior

managers. His contribution to rebuilding the Japaneseeconomy was recognized by the Emperor who awardedhim the Second Order of the Sacred Treasure (Bendell,1991).


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Dr W Edwards Deming

His main message to the Japanese was that variability is

inherent in any process and is due to two types of

causes, namely, special causeswhich are easily

assignable, identifiable and solvable by operators

themselves, and common causeswhich are due to

design and operation and only management can

eliminate. Deming argues that 94 per cent of the qualityproblems are the responsibility of management

Dr W Edwards Deming


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Dr W Edwards Deming

Throughout the 1950s, Deming conducted manylectures in Japan on statistical methods.

Included in these lectures were many of theprinciples now constituting the "company-wide"approach or TQM.

Whilst much of Deming's message to the Japanese

reflected his statistical background, his workextended far beyond statistical methods.


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Dr W Edwards Deming

He encouraged the Japanese to adopt a systematicapproach to problem solving, later to become known asthe PDCA (Plan, Do, Check, Action) cycle.

He also urged senior managers to become more

actively involved in quality improvement programmes.

It was not until the 1970s that managers in the Westbegan to consider whether Deming's methods could dofor their companies what they had done for theJapanese.


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Dr W Edwards Deming

The PDCA cycle

PLAN

DOCHECK

ACT
http://www.lecturer-uk.co.uk/keele/Juran.ppt


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Dr Joseph Juran

Born 1904 in the Balkans, naturalised

American

Went to Japan in the early 50s

Highly respected internationally,

particularly in Japan

Concerned with the wider aspects of

management, beyond quality
http://www.lecturer-uk.co.uk/keele/Juran.ppt


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Dr Joseph Juran

Manufacturing-based approach

Introduced the concept of the internal

customer

See Kelemen p28 for his 8 step

planning map.


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Dr Joseph Juran

Quality trilogy

QualityControl QualityPlanning

QualityImprovement

Holding the gains

Breakthrough Pareto analysis

Project by project
http://www.qmtzone.f9.co.uk/html/feiganbaum.html


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Dr Armand Feigenbaum

Two key texts:

Quality Control: Principles, Practiceand Administration 1951

Total Quality Control: Engineering andManagement 1961

Value-based approach

best for the customer use at the rightselling price (in Kelemen 2005 p29)
http://www.qmtzone.f9.co.uk/html/feiganbaum.htmlhttp://www.qmtzone.f9.co.uk/html/feiganbaum.html


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Dr Armand Feigenbaum Totalquality:

Quality is neither a department, nor a

technique, nor a philosophy. It is afundamental way of managing. Central

to this is the recognition that, without

quality, your customersare simply notgoing to buy from you.

www.managementfirst.com/quality/interviews/feigenbaum


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Dr Armand Feigenbaum

Costingquality:

Prevention costs planning systems

and processes to avoid defects beforethey happen

Appraisal costs inspection and qualitycontrol

Internal failure costs scrap, rework

External failure costs warranty costs,complaints


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From the late 50s

Three Japanese gurus who developed

the message

Ishikawa

Taguchi

Shingo


http://www.cems.uwe.ac.uk/~jmcobby/industrialstats/qualitygurus.pdfhttp://www.cems.uwe.ac.uk/~jmcobby/industrialstats/qualitygurus.pdfhttp://www.lecturer-uk.co.uk/keele/Ishikawa.ppt


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Dr Kaoru Ishikawa

Professor Ishikawa (1915-1989) studied Applied

Chemistry at the Engineering Department of Tokyo

University.

During his life he was awarded many prizes for his

work and writings on Quality Control and is best known

as the pioneer of the Quality Circle movement in

Japan during the 1960s.
http://www.lecturer-uk.co.uk/keele/Ishikawa.ppt


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Dr Kaoru Ishikawa

Like many of the Japanese "gurus",Ishikawa was keen to promote the use ofstatistical techniques in commerce and

industry.

In particular, Ishikawa believed that allemployees should have a basic training intechniques such as:

* Bar Charts and Histograms* Pareto Analysis* Scatter Diagrams

* Cause and Effect Analysis


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Quality circles:

A voluntary group of some 5-10 workers from thesame workshop who meet regularly and are led by a

foreman, assistant foreman, work leader or one of theworkers.

Their aim is to:

contribute to the improvement and development of the

enterprise by dealing with problems and looking for ways toimprove the quality of the process and product

Respect human relations and build a happy workshop

offer job satisfaction via the drawing out of each personscapabilities to achieve their potential.

Dr Kaoru Ishikawa


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Dr Kaoru Ishikawa

The Fishbone or Ishikawa diagram

Methods Equipment

Materials People

Result


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Dr Kaoru Ishikawa

Away from his technical contributions, Ishikawawas a strong advocate of the Company-Widemovement.

He saw this approach as implying that:

"quality does not only mean the quality of the

product, but also of after-sales services,management, the company itself and the humanbeings who work in it".
http://www.lecturer-uk.co.uk/keele/Taguchi.ppt


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Dr Genichi Taguchi

During the Second World War he worked in the

Navigation Institute of the Imperial Japanese

Navy and then the Institute of Statistical

Mathematics at the Ministry of Education.

In 1950 he joined the Nippon Telephone and

Telegraph Company and during his 12 year staydeveloped many of his methods.
http://www.lecturer-uk.co.uk/keele/Taguchi.ppt


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Dr Genichi Taguchi In the early 1970s Taguchi developed the concept of

the "Quality Loss Function" and by the end of thatdecade was highly acclaimed in his own country.

It was not until 1980 that Western companies,particularly in the USA began to implement Taguchi'smethods. The most notable of these being Xerox, Fordand ITT.

Taguchi had made little impact in Europe until theInstitute of Statisticians organised a conference inLondon in 1987 to discuss his methods.


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Dr Genichi Taguchi

The UK Taguchi Club, (now the Quality Methods Association) wasformed later that year.

Taguchi's methodology is geared towards pushing the concepts ofquality and reliability back into the design stage, ie, prior tomanufacturing.

His method provides an efficient technique for designing product

tests prior to beginning manufacturing.

Taguchi methodology is fundamentally a prototyping technique thatenables engineers/designers to produce a robust design which cansurvive repetitive manufacturing in order to deliver the functionalityrequired by the customer.
http://www.lecturer-uk.co.uk/keele/Shingo.ppt


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Shigeo Shingo

Shigeo Shingo is the least known Japanesequality writer in the West. His approachemphasizes production rather than

organizational issues, and it is thusmanufacturing-based. He believed thatstatistical methods detect errors too late in themanufacturing process. Shingo's methodemphasizes 'zero defects' through goodengineering and process investigation andrectification (Shingo, 1986).
http://www.lecturer-uk.co.uk/keele/Shingo.ppt


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Shigeo Shingo His method,poka-yokeor zero defects,

stops the process whenever a defect occurs,defines the cause and prevents the

recurring source of the defect. The methodrelies on a process of continuouslymonitoring potential sources of error. Themachines used in this process are equipped

with feedback instrumentation that identifieserrors before they become defects, soremedial action can be taken.


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From the 70s

Later American gurus

Crosby

Peters


http://www.cems.uwe.ac.uk/~jmcobby/industrialstats/qualitygurus.pdfhttp://www.cems.uwe.ac.uk/~jmcobby/industrialstats/qualitygurus.pdfhttp://www.lecturer-uk.co.uk/keele/Crosby.ppt


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Phil Crosby

Philip Crosby is perhaps the most well marketed andcharismatic of the American Quality Gurus.

He is a graduate of the Western Reserve University,and after serving with the US Navy in the Korean war,he held a variety of quality control jobs.

He spent fourteen years working his way up within ITT,eventually becoming Corporate VP and Director ofQuality, with worldwide responsibilities.
http://www.lecturer-uk.co.uk/keele/Crosby.ppt


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Phil Crosby In 1979 Crosby published his famous "Quality is

Free" book, and as a result of that success, left ITTto form his own company, Philip Crosby AssociatesInc.

Crosby's name is most strongly associated with the"Do it Right First Time" and "Zero Defects"concepts.

Crosby believes that most companies spend up to5% of their operating revenues in correctingmistakes which need not have been made in thefirst place.


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Phil Crosby

He does not subscribe to the view that

workers should take primary responsibility

for quality. He places great emphasis on

the "top-down" approach, stressing that

senior management is entirely responsible

for quality


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Phil Crosby Crosby defines quality as conformance to

requirements which the company itself hasestablished for its products based directly on its

customers' needs. Quality is an inherentcharacteristic of the product, not an addedelement. Crosby argues that management is toblame for the vast majority of the qualityproblems within an organization. Moreover, themost important performance measurementwithin an organization is the cost of qualityandit is cheaper to get things right first time.


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Phil Crosby Crosby defines Four Absolutes of Quality Management:

1. Quality is defined as conformance to requirements, not

"goodness" or "elegance".

2. The system for causing quality is prevention, not appraisal.

3. The performance standard must be Zero Defects, not "that's

close enough".

4. The measurement of quality is the price of non-conformance.

See Kelemen p37 for his 14 steps to quality improvement
http://www.lecturer-uk.co.uk/keele/Peters.ppt


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Tom Peters Tom Peters is an American consultant who has

researched into the secrets of most successful

American companies. In his most popular book, In

Search of Excellence(with Waterman, 1982) he

presents Excellence as a universal icon that can guide

businesses and sift through winners and losers.

Excellence is synonymous with quality yet it isindefinable through objective and rational methods of

research.
http://www.lecturer-uk.co.uk/keele/Peters.ppt


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Tom Peters

In a second book,A Passion forExcellence(1985), Peters and Austinidentify leadership as central to thequality improvement process. Theysee management by walking about(MBWA) as the basis of leadership for

it enables the leader to keep in touchwith the workers, customers andsuppliers.


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Tom Peters

In his third book, Thriving on Chaos

(1987) he prescribes ways of bringing

about a management revolution in the

West. Such ways tend to focus on the end-

user as the most important factor in

judging quality efforts.


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Quality management

Quality management is concernedwith controlling activities with the aim

of ensuring that products and servicesare fit for their purpose and meet thespecifications.


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Quality assurance

Quality assurance is about how abusiness candesignthe way a product

of service is produced or delivered tominimize the chances that output willbe sub-standard. The focus of quality

assurance is, therefore on the productdesign/development stage.


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QUALITY ASSURANCEWhy focus on these stages? The idea is

that - if the processes and procedures

used to produce a product or service aretightly controlled - then quality will be"built-in". This will make the productionprocess much more reliable, so there

will be less need to inspectproduction output (quality control).


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QUALITY ASSURANCE

Quality assurance involvesdeveloping close relationships with

customers and suppliers. A business willwant to make sure that the suppliersto its production process understand

exactly what is required - and deliver!

Quality Assurance vs. StrategicA h


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Q y gApproach

Quality Assurance Emphasis on finding and correcting defectsbefore reaching market

Strategic Approach

Proactive, focusing on preventing mistakesfrom occurring

Greater emphasis on customer satisfaction


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Dimensions of quality

QUALITY

PerformanceFeatures

Reliability

AestheticsResponse

Serviceability

Durability

Conformance


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Dimensions of Quality

Performance- main characteristics ofthe product/service

Aesthetics- appearance, feel, smell,taste

Special Features- extra

characteristics


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Conformance- how well product/serviceconforms to customers expectations

Reliability- consistency of performance


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Dimensions of Quality (Contd)

Durability- useful life of theproduct/service

Perceived Quality -indirectevaluation of quality (e.g. reputation)

Serviceability - service after sale

Examples of Quality


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p Q yDimensions

Dimension

1. Performance

2. Aesthetics

3. Special features

(Product)Automobile

Everything works, fit &finishRide, handling, grade of

materials usedInterior design, soft touch

Gauge/control placementCellular phone, CD

player

(Service)Auto Repair

All work done, at agreedpriceFriendliness, courtesy,

Competency, quicknessClean work/waiting area

Location, call when readyComputer diagnostics

Examples of Quality Dimensions


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Examples of Quality Dimensions(Contd)

Dimension

5. Reliability

6. Durability

7. Perceivedquality

8. Serviceability

(Product)Automobile

Infrequency of breakdowns

Useful life in miles, resistanceto rust & corrosion

Top-rated car

Handling ofcomplaints and/orrequests for information

(Service)Auto Repair

Work done correctly,ready when promised

Work holds up overtime

Award-winning service

department

Handling of complaints

Service Quality


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Service Quality

TangiblesConvenience

Reliability

ResponsivenessTime

Assurance

Courtesy


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Examples of Service QualityDimension Examples1. Tangibles Were the facilities clean, personnel neat?

2. Convenience Was the service center conveniently located?

3. Reliability Was the problem fixed?

4. Responsiveness Were customer service personnel willing andable to answer questions?

5. Time How long did the customer wait?

6. Assurance Did the customer service personnel seemknowledgeable about the repair?

7. Courtesy Were customer service personnel and thecashierfriendly and courteous?

Determinants of Quality (contd)


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Determinants of Quality (cont d)

Quality of design

Intension of designers to include or excludefeatures in a product or service

Quality of conformance

The degree to which goods or servicesconform to the intent of the designers


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The Q alit S stem


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Purchasing

& Inventory

AssessmentOccurrence

Management

Information

Management

Process

ImprovementCustomer

Service

Facilities &

Safety

The Quality System

Organization Personnel Equipment

Documents

& Records

Process

Control

(QC & EQA) &

SpecimenManagement


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Competitive Advantage

The terminology used in the field

of strategic management that might

possibly garner the prize for the mostoverworked and least understood catch-

phrase is "competitive advantage."

The extension of that phrase into

"sustainable competitive advantage" is

currently an elaboration of ambiguity.


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that which one firm can do better thananother to satisfy customer requirements.

Some benefit value provided by a product orcompany, often unique to the organization

concerned, that gives it superiority in themarket place.


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Condition which enables a company tooperate in a more efficient otherwisehigher-quality manner than the companiesit competes with, and which results inbenefits accruing to that company.


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process by which a company studies the

actions of its major competitors in order

to determine what specific strategies theyare following and how those strategies

affect its own; also used by marketers as

they try to develop competitive

advantages, ...


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Order Qualifiers and Winners

Order winners

are the criteria that differentiates

the products and services of onefirm from another

criterion that differentiates yourservice/product above the competition price, quality, reliability


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