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Norman Augustine
INTRODUCTION
The concept and vocabulary of quality are elusive.
Different people interpret quality differently.
The banker will answer service
The healthcare worker will answer quality health care
The hotel employee will answer customer satisfaction
The manufacturer will simply answer quality product
The institution head will answer students satisfaction
Quality
Quality is the ability of a product or service to
consistently meet or exceed customer expectations.
Perceived Quality: An assessment of quality based on
the reputation of the firm. Ex: Mercedes Benz
Qc is defined as maintaining requisite standards in
products or services.
ISO 8402 defines QC as the operational techniques
and activities that are used to fulfill requirements of
quality.
Different views of quality
Receiving the right product for their use
Being satisfied that their needs have been met
Meeting their expectations
Being treated with integrity, courtesy and respect
9-8
Developing quality specifications
Dimensions of
quality
Conformance quality
Determinants of Quality
Design Ease of
use
Capability of
production
Design process
Conforms
to design Service
Quality
9-10
Culture
Examples of Service Quality-Customer
Care/Maintenance
Dimension Examples
1. Convenience Was the service center conveniently located?
9-14
Quality must be consider at all stages in the life
cycle, as shown below, of a product.
Marketing &
Market Research
Requirements&
Disposal
Specification
Installation&
Procurement
operation
Packaging& Production
Storage
Inspection, testing&
Examination
Principles of QM
Inspection
The ISO standard defines as activity of measuring , examining
, testing one or more characteristics of a product or service and
comparing the results wit specified requirements in order to
establish whether conformity is achieved for each
characteristics.
Types of Inspection:
Pre-production QC inspection
In process inspection
Trail run inspection: Tools and M/c s are checked before
operation
First off Inspection : First produced item
Inspection by self control : By operators at different levels of
production process
Decentralized inspection:Semi finished goods on machine or in
production line
Centralized inspection:Single inspection unit for the whole set up.
QC inspection in production
Component dominant : Incoming material
Set-up Dominant
Machine dominant : Operation drift away from initial set-
up
Operator Dominant
Information Dominant
Record Dominant
Inspection-Sampling Plan
Single sampling plan
Double sampling plan
Multiple sampling plan
Inspection, Quality control & quality assurance and TQM
Quality Control and Quality
Assurance(QC VS QA)
Qc is defined as maintaining requisite standards in products or services.
ISO 8402 defines QC as the operational techniques and activities that are
used to fulfill requirements of quality.
Concepts of Quality Control
Quality Assurance - Concepts
Total Quality - Concepts
Quality Tools
Noise is shown to be present in the process but should have no effect on the output! This is the primary aim of the
Taguchi experiments - to minimize variations in output even though noise is present in the process. The process is
then said to have become ROBUST.
If the product to be optimized has a signal input that directly decides the output, the optimization involves
determining the best control factor levels so that the "input signal / output" ratio is closest to the desired
relationship. Such a problem is called as a "DYNAMIC PROBLEM".
Correct Hole
Incorrect Hole
Benefits
Improved profitability, revenues, budgetary performance.
Reduces costs, improves cash flow, improves return on
investment.
Increases competitiveness, improves customer retention and
loyalty, improves effectiveness of decision making, optimization
of available resources.
Employee accountability, optimization, effective and efficient
processes.
Improves supply chain performance.
Enhances organizational performance, credibility and
sustainability.
Module 2:
ORGANIZING QUALITY
Costs of Quality
Cost of Quality has two main components
Cost of Conformance(Cost of good quality)(Costs of control)
The total cost of ensuring that a product is good quality. It is an organizations
investment into quality of its products.
Quality Assurance costs, i.e. training, standards and processes and
Quality Control costs, i.e. reviews, audits, inspections and testing.
1 Prevention Cost:
The costs incurred to avoid or minimize the number of defects at first place are known as
prevention costs. Some examples of prevention costs are improvement of manufacturing
processes, workers training, quality engineering, statistical process control etc.
2 Appraisal costs: Appraisal costs (also known as Detection costs and Inspection costs)
are those cost that are incurred to identify defective products before they are shipped to
customers.
All costs associated with the activities of manufacturing processes to ensure required
quality standards. Identification of defective products involve the maintaining a team of
inspectors.
Cost of Non-conformance(Costs of poor quality)(Costs of failure
of control)
Costs incurred by an organization once the product or services fail in
achieving their goals
cost of fixing production issues, possible loss of business etc
1 Internal failure costs: are those costs that are incurred to remove
defects from the products before shipping them to customers.
cost of rework, rejected products, scrap etc.
2 External failure costs: If defective products have been shipped to
customers, external failure costs arise.
Warranties, replacements, lost sales because of bad reputation, payment
for damages arising from the use of defective products etc.
Costs of Quality
Category Definition Example
Quality
Improvement
Process oriented
9-57
Principles of TQM
Principles of TQM
Quality oriented management
Focus on customer
Involving entire work force
Continuous improvement
Supplier partnership
Measuring performance
Scope of the TQM
TQM
Customer
satisfaction SPC ISO 9000
Acceptance
Employee Sampling ISO 14000
improvement
Reliability Benchmarking
Continuous
improvement Experimental Total
design productive
Supplier maintenance
partnership FMEA Management
tools
Performance
measures QFD Concurrent
engineering
Failure modes and effects analysis (FMEA) is a step-by-step approach for
identifying all possible failures in a design, a manufacturing or assembly
process, or a product or service.
Quality function deployment (QFD) is the translation of user requirements
or requests into designs that meet those specifications.
Statistical Process Control (SPC) is an industry-standard methodology
for measuring and controlling quality during the manufacturing
process.
ISO 9000 deals with the fundamentals of quality management systems,
including the seven quality management principles upon which the family
of standards is based.
ISO 14000 is a series of international, voluntary environmental
management standards, guides, and technical reports. The standards
specify requirements for establishing an environmental policy
,determining environmental impacts of products or services, planning
environmental objectives, implementing programs to meet objectives,
and conducting corrective action and management review.
Scope of TQM
Benefits of TQM
Greater customer loyalty
Market share improvement
Higher stock prices
Reduced service calls
Higher prices
Greater productivity
Quality Gurus
W. Edwards Deming
Assisted Japan in improving productivity and quality after World War II
In 1951 Japan established Deming Prize
US was slow in recognizing his contributions
Introduced Japanese companies to the Plan-Do-Check-Act (PDCA) cycle
(developed by Shewart)
Developed 14 Points for managers
PDCA Cycle
4. ACT 1. PLAN
Permanently Identify im-
implement provements and
improvements develop plan
3. CHECK 2. DO
Evaluate plan Try plan on
to see if it a test basis
works
Demings 14 Points for Managers
1. Create constancy of purpose toward product quality to
achieve organizational goals
-Don't just do the same things better find better things to do
2. Refuse to allow commonly accepted levels of poor quality
- Embrace quality throughout the organization
- Create your quality vision, and implement it.
3. Stop depending on inspection to achieve quality
- Inspections are costly and unreliable and they don't improve quality, they merely
find a lack of quality
4. Use fewer suppliers, selected based on quality and
dependability instead of price
-Encourage them to spend time improving their own quality they shouldn't
compete for your business based on price alone
5. Instill programs for continuous improvement of costs,
quality, service, and productivity
-to improve quality and productivity, and thus constantly decrease costs.
Contd..
6. Train all employees on quality concepts
- Build a foundation of common knowledge
- Allow workers to understand their roles in the "big picture"
7. Focus supervision on helping people do a better job
-Don't simply supervise provide support and resources so that each staff member can do his or her best. Be a
coach instead of a policeman.
8. Eliminate fear, create trust, and encourage two-way
communications between workers and management
- Allow people to perform at their best by ensuring that they're not afraid to express ideas or
concerns.
- Make workers feel valued, and encourage them to look for better ways to do things.
9. Eliminate barriers between departments and encourage joint problem-solving
-People in research, design, sales, and production must work as a team, to foresee
problems of production and in use that may be encountered with the product or
service.
10. Eliminate the use of numerical goals and slogans to make workers work harder
- Let people know exactly what you want don't make them guess. Don't let words
and nice-sounding phrases replace effective leadership.
Contd..
11. Use statistical methods for continuous improvement of quality and productivity
instead of number. Quotas
-Look at how the process is carried out, not just numerical targets.
- Measure the process rather than the people behind the process.
12. Remove barriers to pride of workmanship
-This means, inter alia, abolishment of the annual or merit rating and of management
by objective.
13. Encourage education and self-improvement
- Improve the current skills of workers.
- Encourage people to learn new skills to prepare for future changes and challenges.
14. Clearly define managements permanent commitment to quality and productivity.
-The transformation is everybody's job.
- Improve your overall organization by having each person take a step toward quality.
Elements of TQM
Top management commitment and involvement
Customer involvement
Design products for quality
Design production processes for quality
Control production processes for quality
Developing supplier partnerships
Customer service, distribution, and installation
Building teams of empowered employees
Benchmarking and continuous improvement