ISQA 572/ 449 Models for Quality Control/ Process Control and Improvement

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ISQA 572/ 449Models for Quality Control/ Process
Control and Improvement

• Dr. David Raffo
• Tel [phone], Fax [phone]
• Email davidr_at_sba.pdx.edu

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Intro to TQM

• TQM originates from a desire to improve and a
  necessity to compete.
• Product Designed-gt Process Designed -gt Product is
  Manufactured
• Typically, management and engineers design the
  production system.

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Intro to TQM

• How does TQM fit in?
• Have those who are in the best position to know
  how the system is working.
• Use basic tools to use basic data and gain feed
  back on the process?

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What is Quality?

• Quality of Conformance
• Suitable for use by form, fit , function
• Conformance to standard or specification
• Reliability and Consistency
• Quality of Design
• Meets customer needs
• Kinds of materials used
• Tightness of tolerances

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What is Quality?

• Customer Satisfaction
• Providing features and functions to satisfy
  customer
• Total Quality Management
• Customer focus
• Obsession with quality
• Recognizing the structure in work
• Freedom through control
• Unity of purpose/teamwork
• Continuous improvement

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What is Quality?

• Customer Value
• Customer focus
• What do customers want?
• How much are they willing to pay?
• Why do they purchase one product or service over
  another?
• Drive organization to provide products and
  services to meet or exceed customer expectations

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Evolution of the Quality Movement
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Quality Leaders

• Demming
• 14 Points
• Plan-Do-Check-Act Loop
• Focus on management involvement and quality
  improvement

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Demings 14 Points

• 1. Create constancy of purpose for improvement of
  product and service.
• 2. Adopt the new philosophy.
• 3. Cease dependence on mass inspection.
• 4. End the practice of awarding business on price
  tag alone.
• 5. Constantly and forever improve the system of
  production and service.
• 6. Institute modern methods of training on the
  job.
• 7. Institute modern methods of supervising.

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Demings 14 Points

• 8. Drive out fear.
• 9. Break down barriers between departments.
• 10. Eliminate numerical goals for the work force.
• 11. Eliminate work standards and numerical
  quotas.
• 12. Remove barriers that hinder the hourly
  workers.
• 13. Institute a vigorous program of education and
  training.
• 14. Create a structure in top management that
  will push every day on the above 13 points.

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Quality Leaders

• Juran
• 80 of quality defects are management
  controllable and it is management which needs to
  change most.
• 7 Points

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Jurans 7 Points

• 1. Breakthrough in attitudes.
• 2. Identify the vital few projects.
• 3. Organize for breakthrough in knowledge.
• 4. Conduct the analysis.
• 5. Determine how to overcome resistance to
  change.
• 6. Institute the change.
• 7. Institute controls.

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Quality Leaders

• Crosby
• Zero Defects is the Quality Goal Slogan
• Acceptable Quality Level (AQL) Automobile
• 14 Step program

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Crosbys 14 Step Program

• 1. Management commitment
• 2. Quality improvement team
• 3. Quality measurement
• 4. Cost of quality evaluation
• 5. Quality awareness
• 6. Corrective action
• 7. Zero-defects planning

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Crosbys 14 Step Program

• 8. Supervisory training
• 9. Zero-defects day
• 10. Goal setting
• 11. Error cause removal
• 12. Recognition
• 13. Quality councils
• 14. Do it all over again

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Comparative Assessment Matrix Quality
Management Tasks
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Quality Leaders

• Taguchi
• Must Design in Quality
• Design of Experiments to reduce variation
  (Orthogonal Array 15/16)
• Quality Loss Function
• Feigenbaum
• The Hidden Plant is the proportion of plant
  capacity that exists in order to rework
  unsatisfactory parts. Generally 15-40

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Quality Leaders

• Shewhart
• Formulas used for X-bar and R charts
• Ishikawa
• 7 Quality tools - histogram, check sheet, scatter
  diagram, flow chart, control chart, Pareto
  diagram, cause effect diagram
• Quality Circles

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Continuous Process Improvement

• Action is the bottom- line PDCA cycle and TQM
  tools.
• Involves integrating people, processes, and
  technology
• Benchmarking
• Business Process Re-engineering

• Benchmarking Steps
• Identify processes needing improvement
• Identify world leader
• Visit world leader
• Analyze data
• How to implement processes observed in one
  organization at another?

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Steps in Quality Improvement

• Recognize Problem/ Est. Priorities (BS, PA)
• Form Quality Improvement Teams
• Define problem (Why-Why, Fishbone)
• Analyzing problem/ process (Flowchart)

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Steps in Quality Improvement

• Define possible causes
• Fishbone diagram
• Check sheets, histograms
• Scatter diagrams
• Control charts and run charts
• Identify potential solutions
• Implement solution
• Evaluate
• Make permanent, CPI

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TQM Observations

• TQM approaches essentially
• Emphasize customer service
• Seek to eliminate defects in production
• Seek to empower employees as key actors and
  agents of change.
• Management must support the improvement process
  or it will go nowhere
• Improving the process is the central focus

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Quality Certifications

• Examples of quality certifications and awards
• ISO-9000
• Capability Maturity Model
• Malcolm Baldridge, Demming Prize, etc.

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A Commonly Used Standard

• ISO 9000

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ISO 9000

• Series of standards
• Promoted strongly by the European Community
• Intentionally vague (covers wide variety of
  businesses)
• Do what you say and say what you do
• Important for competitive purposes
• Important spirit of law is followed
• Get certified by external auditor

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ISO 9000 Series

• ISO 9000 Quality Management Quality Assurance
  Standards
• Guidelines for selection use
• ISO 9001 Quality Systems
• Model for quality assurance in design
  development, production, installation servicing
• ISO 9002 Quality Systems
• Model for quality assurance in production
  installation
• ISO 9003 Quality Systems
• Model for quality assurance in final insp. test

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ISO 9000 Series

• ISO 9004 Quality Management Quality System
  Guidelines
• Marketing marketing research
• Design/specification engineering
• Purchasing
• Production
• Inspection, test examination
• Handling, packaging storage
• Sales distribution
• Installation operation
• Technical assistance maintenance
• Disposal after use

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Application to Software

• Capability Maturity Model

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Motivation for Process Improvement

• Competition at home and abroad is driving the
  need to reduce costs, reduce cycle time and
  improve quality.
• At the same time, systems are getting
  increasingly complex and the integration of
  hardware and software is more challenging.
• Companies need to improve performance.
• Key question is HOW?

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Introduction
To improve performance, companies have
previously looked at technology and people.
Technology
People
Process
Currently, improving software process is a major
focus for many organizations. Moving to a
Balanced approach.
Source Software Engineering Institute (SEI)
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Capability Maturity Model

• Provides a framework for process improvement
• Processes are assessed to determine their current
  level of process maturity
• Five levels of maturity
• 17 Key Process Areas (KPAs) related to essential
  core software development processes
• Actions to be taken based on current state of the
  process

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The Five Levels of Software Process Maturity
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Implications Of Advancing Through CMM Levels
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Visibility Into The Software Process At Each
Maturity Level
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Key Practice Areas

• Level 2 - Repeatable
• Software requirements management
• Software configuration management
• Project planning
• Project monitoring and control
• Level 3 - Defined
• Organization process definition
• Training program
• Peer Reviews
• Integrated software management

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Key Process Areas

• Level 4 - Managed
• Software quality management
• Quantitative process management
• Level 5 - Optimizing
• Process change management
• Technology change management
• Defect prevention

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The CMM Structure
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Process Improvement Benefits
Source Software Engineering Institute, CMU/
SEI-94-TR-13, p15
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Malcolm Baldrige Award Criteria

• Leadership
• Information Analysis
• Strategic Quality Planning
• Human Resource Utilization
• Quality Assurance of Products Services
• Quality Results
• Customer Satisfaction

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Malcolm Baldrige National Quality Award Criteria

• 1.0 Leadership
• 1) Senior Executive Leadership
• 2) Quality Values
• 3) Management for Quality
• 4) Public Responsibility
• 2.0 Information Analysis
• 1) Scope management of quality data
  information
• 2) Competitive comparisons benchmarks
• 3) Analysis of quality data information
• 3.0 Strategic Quality Planning
• 1) Strategic quality planning process
• 2) Quality goals plans

• 4.0 Human Resource Utilization
• 1) Human resource management
• 2) Employee involvement
• 3) Quality education training
• 4) Employee recognition performance measurement
• 5) Employee well-being morale
• 5.0 Quality Assurance of Products Services
• 1) Design introduction of quality products
  services
• 2) Process quality control
• 3) Continuous improvement of processes
• 4) Quality assessment
• 5) Documentation
• 6) Business process support service quality
• 7) Supplier quality

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Malcolm Baldrige National Quality Award Criteria

• 6.0 Quality Results
• 1) Product service quality results
• 2) Business process, operational support
  service quality results
• 3) Supplier quality results
• 7.0 Customer Satisfaction
• 1) Determining customer requirements
  expectations
• 2) Customer relationship management
• 3) Customer service standards

• 4) Commitment to customers
• 5) Complaint resolution for quality improvement
• 6) Determining customer satisfaction
• 7) Customer satisfaction results
• 8) Customer satisfaction comparison

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MBNQA Results - Employee Relations

• Average improvement of 1.4 in overall employee
  job satisfaction.
• Above average industry attendance rates in 9 of
  11 reporting companies.
• Lower employee turnover than industry averages
  report in 7 of 11 participating companies.
• Safety and health rates were better than industry
  averages in 12 of 14 companies.
• Increase in the total number of quality
  improvement suggestions submitted in 5 of 7
  companies.

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MBNQA Results - Employee Relations

• Millikens suggestion system yielded 262,000
  suggestions during 1989 with an 87 completion
  rate. In 1990 it rose to 472,884.
• At Commercial Nuclear Fuel Division at
  Westinghouse, employee suggestions increased from
  425 in 1985 to 2,000 in 1988.
• Cadillacs employee turnover rate has been cut in
  half. They also experienced a 33 improvement in
  injury and illness rates.
• IBM Rochesters safety record was 57 better,
  absenteeism rate was 48 less and turnover rate
  was 88 less.

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MBNQA Results - Operating Procedures

• Average improvement in reliability was 11.3.
• On-time delivery improved 4.7 on an average
  annual basis.
• Overall average annual order processing time
  improved 12.
• Overall reduction in errors was 10.3 on an
  annual basis.
• Overall product lead time was reduced 5.8.
• Average annual inventory turnover increased 7.2.
• Quality costs improved 9 on an annual basis.
• The range in annual average cost savings was 1.3
  million to 116 million.

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MBNQA Results - Operating Procedures

• Milliken improved from 75 on-time deliveries in
  1984 to 99 in 1988 60 reduction in cost of
  nonconformance productivity increased 43 since
  1983.
• Since 1989, Motorolas quality improvements have
  reduced by 250 million the cost incurred through
  internal and external failures. In the cellular
  telephone operation there was a 30 to 1 reduction
  in factory cycle time and a 90 reduction in
  defects/unit.
• At Commercial Nuclear Fuel Division of
  Westinghouse, first time yields on fuel rods
  increased to 87 in 1987 from 50 in 1984.

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MBNQA Results - Customer Satisfaction

• Customer satisfaction increased an annual average
  rate of 2.5.
• Complaints declined at an average annual rate of
  11.6.
• Customer retention at Cadillac improved 24
  between 1987 and 1990. Customer satisfaction
  with service has increased 17 since 1989.
• Globes customer complaints went from 41 in 1985
  to 4 in 1987.
• At Federal Express, overall customer satisfaction
  for domestic service has averaged better than 95
  since 1987 94 for international service.

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MBNQA Results - Financial Performance

• Market share increased 13.7 annually.
• Sales per employee increased 8.6 annually.
• Return in assets increased 1.3 annually.
• Return on sales increased an average of 0.4.

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Quality Certifications

• Many good ideas
• Process improvement and change are not easy.
• Takes effort and perseverance
• Management commitment
• Mixed results for standard processes Need
  application of the Spirit over the Formality

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