Quality Management

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Quality Management

• Henry C. Co
• Technology and Operations Management,
• California Polytechnic and State University

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Dimensions of Quality

• Performance -- Primary operating characteristics.
• Features -- Secondary operating characteristics
  added touches.
• Time --
• Waiting in line.
• Concept to production
• To complete a service.
• Reliability -- Extent of failure-free operation.
• Durability -- Amount of use until replacement is
  preferable to repair.

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• Conformance -- How well product/service conforms
  to customers expectations.
• Uniformity -- Low variation among repeated
  outcomes of a process.
• Consistency -- Match with documentation,
  advertising, deadlines, or industry standards.
• Service after sale -- Handling of customer
  complaints or checking on customer satisfaction.
• Aesthetics -- Characteristics that relate to the
  senses.
• Perceived Quality -- Indirect evaluation of
  quality (e.g. reputation).

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Quality Costs

• Quality costs escalate as value is added to
  product or service

Cost of finding and correcting a defective
component
Supplier Inspection
0.003
Incoming Inspection
0.03
Fabrication Inspection
0.30
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Subproduct Test
Final Product Test
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300
Field Service
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Quality Masters
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W. Edwards Deming
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• 1900 to 1993
• Trained as a physicist
• Master of Science
• Taught SQC during World War II
• Went to Japan in 1946
• Brought SQC to Japan
• Enthusiastically adopted by Japanese

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Joseph M. Juran
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• Born 1904
• Worked for Western Electric 1924 - 1941
• Started course Managing for Quality
• American Management Association
• Taught to more than 100,000 in 40 countries
• Wrote Quality Control Handbook
• Focus on management

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Phillip Crosby
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• Started as a line inspector
• Worked up to VP Quality for ITT
• Now a management consultant
• Author of Quality is Free
• Goal of quality is zero defects
• Founded the Quality College in Florida

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Masaaki Imai
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• Wrote Kaizen The Key to Japans Competitive
  Success
• Chairs the Cambridge Corporation, an
  international management consultancy, Tokyo

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Continuous Improvement

• KAIZEN management philosophy
• continuous improvement
• process view
• success comes from people
• constant sense of urgency
• Basis of Japans quality efforts

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Dimensions of Service Quality
Table 9.4
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Total Quality Management
T
Q
M

• A philosophy that involves everyone in an
  organization in a continual effort to improve
  quality and achieve customer satisfaction.

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Continuous Improvement

• Kaizen Japanese word for continuous
  improvement.

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Six Sigma

• Statistically
• Having no more than 3.4 defects per million
• Conceptually
• Program designed to reduce defects
• Requires the use of certain tools and techniques

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Six Sigma Process

• Define
• Measure
• Analyze
• Improve
• Control

DMAIC
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The PDSA Cycle
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The Process Improvement Cycle
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Methods for Generating Ideas

• Brainstorming
• Quality circles
• Interviewing
• Benchmarking
• 5W2H

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Quality Circle

• Team approach
• List reduction
• Balance sheet
• Paired comparisons

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Quality Circles

• A small group of employees (averaging 9 people)
  who volunteer to meet regularly to undertake
  work-related projects designed to advance the
  company, improve working conditions, and spur
  mutual self development, by using quality control
  concepts and techniques (Business Week, July 20,
  1981).

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Continuous Improvement
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Continuous Improvement

• Philosophy that seeks to make never-ending
  improvements to the process of converting inputs
  into outputs.
• Kaizen Japanese word for continuous improvement.

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Continuous Improvement Tools

• Production environments that utilize modern
  quality control methods are dependent upon
  statistical literacy. The tools used therein are
  called the seven quality control tools.

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Run Chart

• Step 1 Gathering Data
• Step 2 Organizing Data
• Determine what the values for the x (time, day of
  week) and day (data, minutes to work) axis will
  be.

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Run Chart

• Step 3 Charting Data
• Step 4 Interpreting Data
• Mondays taking most time and Fridays generally
  taking the least amount of time.

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Pareto Analysis

• 80 of the problems may be attributed to 20 of
  the causes.

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Flow Chart
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Checklist and Histogram
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Scatter Diagram
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Cause Effect (Ishikawa) Diagram
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Control Charts
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Benchmarking
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• Identify those processes needing improvement.
• Identify a firm that is the world leader in
  performing the process (Library WWW).
• Contact the managers of that company and make a
  personal visit to interview managers and workers.
• Analyze data.

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Quality Awards
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Quality Awards
Baldrige Award
Deming Prize
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Malcolm Baldrige National Quality Award

• Leadership (100 points)
• Information and Analysis (70 points)
• Strategic Quality Planning (60 points)
• Human Resource Utilization (150 points)
• Quality Assurance of Products and Services (140
  Points)
• Quality Results (180 points)
• Customer Satisfaction (300 points)

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Baldrige Award Categories

• Manufacturing companies or subsidiaries that
  produce and sell manufactured products or
  manufacturing processes or produce agricultural,
  mining, or construction products.
• Service companies or subsidiaries that sell
  service.
• Small businesses.

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Award Winners

• The companies formulated a vision of what they
  thought quality was and how they would achieve
  it.
• Senior management was actively involved.
• Companies carefully planned and organized their
  quality effort to be sure it would be effectively
  initiated.
• They vigorously controlled the overall process.

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Benefits of Baldrige Competition

• Financial success
• Winners share their knowledge
• The process motivates employees
• The process provides a well-designed quality
  system
• The process requires obtaining data
• The process provides feedback

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Japanese Deming Prize

• Established 1951
• Annual prize
• Awarded for
• development of quality tools, or
• quality improvement programs
• Created by JUSA(Union of Japanese Scientists and
  Engineers

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Quality Certification

• ISO 9000
• Set of international standards on quality
  management and quality assurance, critical to
  international business

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ISO 9000 Registration Process

• When an organization feels that its quality
  system is good enough, it may ask an accredited
  registrar or other third party audit team for
  pre-assessment.

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ISO 9000 Registration Process

• The final audit begins with a review of the
  company's quality manual, which the accredited
  registrar or third party audit team typically
  uses as its guide. The audit team checks to see
  that the documented quality system meets the
  requirement of ISO 9000 and that the organization
  is practicing what is documented.

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ISO 9000 Registration Process

• When the registrar is satisfied with the
  favorable recommendation of the audit team, it
  grants registration and issues a registration
  document to the company.

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Three Forms of Certification

• First party A firm audits itself against ISO
  9000 standards.
• Second party A customer audits its supplier.
• Third party A "qualified" national or
  international standards or certifying agency
  serves as auditor.

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