1 © 2010 nkumbwa™. all rights reserved. total quality management in engineering sir. eng. r. l....

1© 2010 Nkumbwa™. All Rights Reserved.

Total Quality Management in EngineeringTotal Quality Management in Engineering

Sir. Eng. R. L. Nkumbwa™Sir. Eng. R. L. Nkumbwa™www.nkumbwa.weebly.comwww.nkumbwa.weebly.com


ObjectivesObjectives

What is QualityWhat is Quality Evolution of QualityEvolution of Quality Total Quality ManagementTotal Quality Management Employee InvolvementEmployee Involvement Cost of QualityCost of Quality Quality AwardsQuality Awards The Quality Management SystemThe Quality Management System

1. Leadership1. Leadership 2. Strategic planning2. Strategic planning 3. Customer satisfaction3. Customer satisfaction 4. Performance management4. Performance management 5. Human resources5. Human resources 6. Construction quality6. Construction quality 7. Supplier partnerships7. Supplier partnerships 8. Results8. Results


What Is Quality?What Is Quality?

““The degree of excellence of a thing” The degree of excellence of a thing”

(Webster’s Dictionary)(Webster’s Dictionary)

““The totality of features and characteristics that satisfy The totality of features and characteristics that satisfy needs” ( ASQC)needs” ( ASQC)

Fitness for useFitness for use


What are the dimensions of Product Quality What are the dimensions of Product Quality

Quality

Performance

Features

Reliability

Conformance

Durability

Serviceability

Aesthetics

Safety


Dimensions of Service QualityDimensions of Service Quality

Quality

Time & Timeliness

Completeness

Consistency

Courtesy

Accessibility &Convenience

Accuracy

Responsiveness


Evolution of Quality ManagementEvolution of Quality Management

Quality ControlQuality Control Testing and InspectionTesting and Inspection Quality Dept. as a police force—Quality Dept. as a police force—

protecting the customerprotecting the customer Higher quality implied higher Higher quality implied higher

costcost Conformance to specConformance to spec Workers the source of most Workers the source of most

problemsproblems

Quality ManagementQuality Management Building Process CapabilityBuilding Process Capability Everyone owns the quality of Everyone owns the quality of

their worktheir work Quality is the key to improving Quality is the key to improving

cost and performancecost and performance Fitness for useFitness for use Process source of most defectsProcess source of most defects

From To


Deming’s 14 PointsDeming’s 14 Points

1. Create constancy of purpose1. Create constancy of purpose2. Adopt philosophy of prevention2. Adopt philosophy of prevention3. Cease mass inspection3. Cease mass inspection4. Select a few suppliers based on 4. Select a few suppliers based on

qualityquality5. Constantly improve system and 5. Constantly improve system and

workersworkers6. Institute worker training6. Institute worker training

7. Instill leadership among 7. Instill leadership among supervisorssupervisors

8. Eliminate fear among employees8. Eliminate fear among employees9. Eliminate barriers between 9. Eliminate barriers between

departmentsdepartments10. Eliminate slogans10. Eliminate slogans11. Remove numerical quotas11. Remove numerical quotas12. Enhance worker pride12. Enhance worker pride13. Institute vigorous training & 13. Institute vigorous training &

education education programsprograms14. Implement these 13 points14. Implement these 13 points


Total Quality ManagementTotal Quality Management

Encompasses entire organization, from supplier to customerEncompasses entire organization, from supplier to customer

Stresses a commitment by management to have a continuing Stresses a commitment by management to have a continuing company-wide drive toward excellence in all aspects of company-wide drive toward excellence in all aspects of

products and services that are important to the products and services that are important to the customercustomer..


Total Quality Management PracticesTotal Quality Management Practices

1. Customer defined quality1. Customer defined quality

2. Top management leadership2. Top management leadership

3. Quality as a strategic issue3. Quality as a strategic issue

4. All employees responsible for quality4. All employees responsible for quality

5. Continuous improvement/Benchmarking5. Continuous improvement/Benchmarking

6. Shared problem solving6. Shared problem solving

7. Statistical quality control7. Statistical quality control

8. Training & education for all employees8. Training & education for all employees


Quality as a Strategic IssueQuality as a Strategic Issue

Quality is key to effective strategyQuality is key to effective strategy Clear strategic goal, vision, missionClear strategic goal, vision, mission High quality goalsHigh quality goals Operational plans & policies linked to goalsOperational plans & policies linked to goals Feedback mechanismFeedback mechanism Strong leadershipStrong leadership


TQM Throughout The OrganizationTQM Throughout The Organization

Marketing, sales, R&DMarketing, sales, R&D EngineeringEngineering PurchasingPurchasing PersonnelPersonnel ManagementManagement Packing, storing, shippingPacking, storing, shipping Customer serviceCustomer service


BenchmarkingBenchmarking

Selecting best practices to use Selecting best practices to use as a standard for performanceas a standard for performance

Determine what to benchmarkDetermine what to benchmark Form a benchmark teamForm a benchmark team Identify benchmarking partnersIdentify benchmarking partners Collect and analyze benchmarking informationCollect and analyze benchmarking information Take action to match or exceed the benchmarkTake action to match or exceed the benchmark


Continuous Improvement: The Deming Continuous Improvement: The Deming WheelWheel

Identify problemDevelop plan for improvement

Implement plan on test basis

Is the plan working

Institutionalize improvementContinue cycle

1. Plan

2. Do

3. Study / Check

4. Act

P-D-C-A Cycle


Employees & Quality ImprovementEmployees & Quality Improvement

Quality circles Quality circles Employee suggestionsEmployee suggestions Process improvement teamsProcess improvement teams Self-managed work teamsSelf-managed work teams Participation in the Companies Quality PlanningParticipation in the Companies Quality Planning


Seven Quality Control ToolsSeven Quality Control Tools

1. Pareto analysis1. Pareto analysis

2. Flowcharts2. Flowcharts

3. Check sheets3. Check sheets

4. Histograms4. Histograms

5. Scatter diagrams5. Scatter diagrams

6. Control charts6. Control charts

7. Fishbone diagram7. Fishbone diagram


A Flowchart—Understand the Process and A Flowchart—Understand the Process and select performance measures select performance measures


Scatter Diagram—collect dataScatter Diagram—collect data

.


Control Chart—collect dataControl Chart—collect data

18

12

6

3

9

15

21

24

27

2 4 6 8 10 12 14 16

Sample number

Num

ber

of d

efec

ts

UCL = 23.35

LCL = 1.99

c = 12.67


Check Sheet—collect dataCheck Sheet—collect data

COMPONENTS REPLACED BY LABTIME PERIOD: 22 Feb to 27 Feb 1998REPAIR TECHNICIAN: Bob

TV SET MODEL 1013

Integrated Circuits ||||

Capacitors |||| |||| |||| |||| |||| ||

Resistors ||

Transformers ||||

CommandsCRT |


Histogram—analyze dataHistogram—analyze data

0

510152025303540

1 2 6 13 10 16 19 17 12 16 20 17 13 5 6 2 1


A Pareto Chart-A Pareto Chart-Analyze dataAnalyze data

Per

cent

fro

m e

ach

caus

e

Causes of poor quality

Mac

hine

cal

ibra

tions

Defec

tive

parts

Wro

ng d

imen

sions

Poor D

esig

n

Ope

rato

r erro

rsDef

ectiv

e m

ater

ials

Surfa

ce a

bras

ions

0

10

20

30

40

50

60

70(64)

(13)(10)

(6)(3) (2) (2)


Fishbone Diagram—brainstorming causes Fishbone Diagram—brainstorming causes

QualityProblem

MachinesMeasurement Human

ProcessEnvironment Materials

Faulty testing equipment

Incorrect specifications

Improper methods

Poor supervision

Lack of concentration

Inadequate training

Out of adjustment

Tooling problems

Old/worn

Defective from vendor

Not to specifications

Material-handling problems

Deficienciesin product design

Ineffective qualitymanagement

Poor process design

Inaccuratetemperature control

Dust and Dirt


Cost Of QualityCost Of Quality

Cost of achieving good qualityCost of achieving good qualityPreventionPreventionAppraisalAppraisal

Cost of poor qualityCost of poor qualityInternal failure costsInternal failure costsExternal failure costsExternal failure costs


The Cost of QualityDistribution of the Costs

(25.0%)(65.0%)

(10.0%)

Prevention

Evaluation

failures

Internal and External

Reduce Quality Costs by Increasing Prevention Efforts


““Quality is Free”Quality is Free”

For the average company, the cost of quality is about 25% For the average company, the cost of quality is about 25% of total sales of total sales

The cost of prevention is a fraction of the cost of fixing The cost of prevention is a fraction of the cost of fixing mistakes after they are mademistakes after they are made

Investments in prevention can drastically reduce the total Investments in prevention can drastically reduce the total cost of qualitycost of quality


Quality IndexesQuality Indexes

Labor indexLabor indexquality cost / labor hoursquality cost / labor hours

Cost indexCost indexquality cost / manufacturing costquality cost / manufacturing cost

Sales indexSales indexquality cost / salesquality cost / sales

Production indexProduction indexquality cost / units producedquality cost / units produced


Quality Index ExampleQuality Index Example

19961996 19971997 19981998 19991999

Quality CostsQuality Costs

PreventionPrevention $ 27,000$ 27,000 41,50041,500 74,60074,600 112,300112,300

AppraisalAppraisal 155,000155,000 122,500122,500 113,400113,400 107,000107,000

Internal failureInternal failure 386,400386,400 469,200469,200 347,800347,800 219,100219,100

External failureExternal failure 242,000242,000 196,000196,000 103,500103,500 106,000106,000

TotalTotal $ 810,400$ 810,400 829,200829,200 639,300639,300 544,400544,400

Accounting measuresAccounting measures

SalesSales $ 4,360,000$ 4,360,000 4,450,0004,450,000 5,050,0005,050,000 5,190,0005,190,000

Mfg costsMfg costs 1,760,0001,760,000 1,810,0001,810,000 1,880,0001,880,000 1,890,0001,890,000


Quality IndexQuality Index

YearYear Sales Sales CostCost

19961996 18.5818.58 46.0446.04

19971997 18.6318.63 45.1845.18

19981998 12.6612.66 34.0034.00

19991999 10.4910.49 28.8028.80

Total quality costs * 100 / base $810,400 * 100 / 4,360,000 = 18.58


Quality And Productivity Quality And Productivity

Productivity = output / inputProductivity = output / input

Fewer defects increase outputFewer defects increase output

Quality improvement reduces inputsQuality improvement reduces inputs


Measuring Yield & ProductivityMeasuring Yield & Productivity

where where

Y = yieldY = yield

I = number units started in productionI = number units started in production

% G = percentage good units% G = percentage good units

% R = percentage of defective units reworked% R = percentage of defective units reworked

Y = (I)(%G) + (I)(1-%G)(%R)


Product Yield ExampleProduct Yield Example

Start 100 motors per dayStart 100 motors per day

80% are good80% are good

50% of poor quality units can be reworked50% of poor quality units can be reworked

Y = (I)(%G) + (I)(1-%G)(%R)

Y = 100 (0.80) + 100 (1- 0.80) (0.50) = 90 motors


Product CostProduct Cost

=direct mfg cost unit rework cost reworked units

= dK rK R

input

yield

I

Y

dK direct manufacturing cost

rK rework cost per unit

I = input

R reworked units

Y yield

where


Product Cost ExampleProduct Cost Example

Direct mfg cost = $30, Rework cost = $12Direct mfg cost = $30, Rework cost = $12

100 motors started, 20% defective100 motors started, 20% defective

50% of defective motors can be reworked50% of defective motors can be reworked

Product cost = dK rK R

=$30 $12 10

90 motors per motor

I

Y

10067$34.


Multistage Product Yield Multistage Product Yield

Y = (I) (%gY = (I) (%g11)(%g)(%g22)...(%g)...(%gnn) )

wherewhere

I = input batch sizeI = input batch size

%g%gi i = percent good at stage I= percent good at stage I


Multistage Process YieldMultistage Process Yield

Motors produced in four-stage processMotors produced in four-stage process

Start with 100 motorsStart with 100 motors

Stage Stage % Good quality% Good quality

11 0.930.93

22 0.950.95

33 0.970.97

44 0.920.92

Y = (I) (%g1)(%g2)...(%gn) = (100)(0.93)(0.95)(0.97)(0/92)

Y = 78.8 motors


Input Required For Output OfInput Required For Output Of100 Good Motors100 Good Motors

motors 8.126

0.920.970.950.93

100=I

%g%g%g%g

Y=I

4321


Quality Awards And CertificationsQuality Awards And Certifications

The Malcolm Baldrige Award The Malcolm Baldrige Award The Deming PrizeThe Deming Prize Industry, regional, and company awardsIndustry, regional, and company awards

Institute of Industrial EngineersInstitute of Industrial EngineersNASANASAEuropean Quality AwardEuropean Quality Award

ISO 9000 ISO 9000


Quality Management System OverviewQuality Management System Overview

1. Leadership1. Leadership

2. Strategic planning2. Strategic planning

3. Customer satisfaction3. Customer satisfaction

4. Performance management4. Performance management

5. Human resources5. Human resources

6. Construction quality6. Construction quality

7. Supplier partnerships7. Supplier partnerships

8. Results8. Results


LeadershipLeadership

Leaders align everyone in the Leaders align everyone in the organization with a common purpose, organization with a common purpose,

values, and priorities.values, and priorities.

Strong leadership is the key to Strong leadership is the key to becoming world class.becoming world class.


This MeansThis Means

Senior managers set direction and Senior managers set direction and priorities.priorities.

Senior managers actively reinforce Senior managers actively reinforce the message.the message.

Employees actions are aligned with Employees actions are aligned with company priorities.company priorities.


Successful OrganizationsSuccessful Organizations

Share a culture of common values—ALIGNMENTShare a culture of common values—ALIGNMENT Senior managers actively communicate mission, vision, and Senior managers actively communicate mission, vision, and

valuesvalues Everyone walks the talkEveryone walks the talk Get feedback from employees and use it to improveGet feedback from employees and use it to improve Are good corporate citizensAre good corporate citizens


LinksLinks

Senior leaders ensure that the company’s values and Senior leaders ensure that the company’s values and priorities are embraced throughout the organization.priorities are embraced throughout the organization.


Action StepsAction Steps

Develop mission, vision, and values statements.Develop mission, vision, and values statements. Actively seek daily opportunities to reinforce the company Actively seek daily opportunities to reinforce the company

culture. culture. Survey employees annually. Survey employees annually. Devote time to charitable community activities.Devote time to charitable community activities.


What to MeasureWhat to Measure

Review operational results and employee Review operational results and employee performance data.performance data.


Critical Success FactorsCritical Success Factors

Constant ReinforcementConstant Reinforcement

AlignmentAlignment

Walk the Talk!Walk the Talk!


Strategic PlanningStrategic Planning

Achieving a future vision of what Achieving a future vision of what the company can become the company can become

requires creating and executing a requires creating and executing a strategic plan for getting there.strategic plan for getting there.


This MeansThis Means

There is a difference between There is a difference between business planning and strategic business planning and strategic planning. Successful companies do planning. Successful companies do both.both.

You have a long-range view of how You have a long-range view of how you want your company to operate you want your company to operate in the future.in the future.

There is a roadmap that keeps There is a roadmap that keeps everyone focused on the important everyone focused on the important changes needed to make it happen.changes needed to make it happen.


Successful OrganizationsSuccessful Organizations

Use a structured approach for strategic developmentUse a structured approach for strategic development Measure 5-7 key success driversMeasure 5-7 key success drivers Evaluate the competitive environment in detailEvaluate the competitive environment in detail Have clear goals for the company’s futureHave clear goals for the company’s future Senior managers translate goals into action plans.Senior managers translate goals into action plans. Engage everyone to make the changesEngage everyone to make the changes Monitor and control progress monthlyMonitor and control progress monthly


LinksLinks

Leadership direction drives strategic plans.Leadership direction drives strategic plans. Strategic plans drive:Strategic plans drive:

HR developmentHR development product and market innovationsproduct and market innovations customer satisfaction improvementscustomer satisfaction improvements quality improvementsquality improvements partnering initiatives partnering initiatives


Action StepsAction Steps

Integrate strategic planning in the annual business planning Integrate strategic planning in the annual business planning process.process.

Define measurements for each key success driver.Define measurements for each key success driver. Develop strategic goals.Develop strategic goals. Involve employees to develop action plans.Involve employees to develop action plans. Review progress against the plan monthly.Review progress against the plan monthly.

1 © 2010 nkumbwa™. all rights reserved. total quality management in engineering sir. eng. r. l....

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