1. introduction to quality management and dimentions of quality

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Introduction to QualityIntroduction to Quality

andandCompeting of QualityCompeting of Quality


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What is Quality?What is Quality?

Fitness for UseFitness for Use

Conformance to SpecificationsConformance to Specifications

Total Customer SatisfactionTotal Customer Satisfaction

Exceeding Customer ExpectationsExceeding Customer Expectations

Producing the Very Best ProductsProducing the Very Best ProductsExcellence in Products and ServicesExcellence in Products and Services

Quality improvement starts with reducingQuality improvement starts with reducingProduct VARIABILITY and waste.Product VARIABILITY and waste.


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QualityQuality -- WhatWhat s the Big Deal?s the Big Deal?

The Endless BattleThe Endless Battle :: QQ uantity vs.uantity vs. QQ ualityuality

Quantity goes directly to the bottom line:Quantity goes directly to the bottom line:

more product out ==> more $$$more product out ==> more $$$

But what are the costs associated with Poor Quality?But what are the costs associated with Poor Quality?

Direct Cost Indirect Cost


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QualityQuality -- WhatWhat s the Big Deal?s the Big Deal?

Direct Costs of Poor Quality:Direct Costs of Poor Quality:

Lost RevenueLost Revenue : scrap, rework, repair: scrap, rework, repair Lost ProductivityLost Productivity : materials, machines, and personnel: materials, machines, and personnel

Inspection CostsInspection Costs : inspectors, testing machines: inspectors, testing machines

External CostsExternal Costs : warranty claims, price adjustments, late charges: warranty claims, price adjustments, late charges

Indirect Costs of Poor QualityIndirect Costs of Poor Quality -- Upset CustomersUpset Customers ::

It is harder to attract a new customer than to retain a currentIt is harder to attract a new customer than to retain a current oneone

Dissatisfied customers tell 8Dissatisfied customers tell 8 --20 people about their dissatisfaction.20 people about their dissatisfaction.

Satisfied customers only tell 3Satisfied customers only tell 3 --5 people5 people ..


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Detection ExampleDetection Example

Count the number of f Count the number of f s in this paragraph:s in this paragraph:

The study of SPC can be both fun and rewarding forThe study of SPC can be both fun and rewarding for

everyone. When you find out that the fundamental ideaseveryone. When you find out that the fundamental ideas

of statistics are fairly easy to learn, you will discover thatof statistics are fairly easy to learn, you will discover that

your efforts result in a great deal of satisfaction. If youyour efforts result in a great deal of satisfaction. If you

treat a production problem as a puzzle, the application of treat a production problem as a puzzle, the application of SPC provides clues for its solution, and when the puzzle isSPC provides clues for its solution, and when the puzzle is

finally solved, the feeling of satisfaction is very fulfilling.finally solved, the feeling of satisfaction is very fulfilling.

Puzzles can be frustrating, but their final solution is fun.Puzzles can be frustrating, but their final solution is fun.


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Prevention vs. DetectionPrevention vs. Detection

Detection Model:Detection Model: $$$ lost to:$$$ lost to:

making defective partsmaking defective parts finding defective partsfinding defective parts repairing or scrapping defective partsrepairing or scrapping defective parts

if/when detection fails, additional $$$ lost to:if/when detection fails, additional $$$ lost to: warrantieswarranties cancelled orderscancelled orders

Prevention Model:Prevention Model: minimal increased cost due to adding prevention measuresminimal increased cost due to adding prevention measures

in the processin the process utilizes SPC to reduce product variability at the sourceutilizes SPC to reduce product variability at the source no waste!no waste!


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1:10:100: Rule1:10:100: Rule


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Competing on QualityCompeting on Quality (D.Gravin)(D.Gravin)--Strategic Quality ManagementStrategic Quality Management --

S i Q li MS i Q li M


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Strategic Quality ManagementStrategic Quality Management ss

Aspect of QualityAspect of Quality

High Quality means pleasing customers, not justHigh Quality means pleasing customers, not justprotecting them from annoyanceprotecting them from annoyance

Product designers should shift their attention fromProduct designers should shift their attention from

prices at the time of purchase to life cycle costsprices at the time of purchase to life cycle costs thatthat

include expenditures on service and maintenanceinclude expenditures on service and maintenance

the customers total costs.the customers total costs.


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8 Dimensions/Categories of Quality8 Dimensions/Categories of Quality

Dimensions of Quality that can serve as aDimensions of Quality that can serve as aframework for strategic analysis:framework for strategic analysis:

1. Performance


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1. Performance1. Performance

Performance refers to a productPerformance refers to a product s primary operatings primary operatingcharacteristics.characteristics. Ex:Ex: Automobile: acceleration, comfortAutomobile: acceleration, comfort

Television: picture clarity, color, soundTelevision: picture clarity, color, sound

Because this dimension of quality involvesBecause this dimension of quality involvesmeasurable attributesmeasurable attributes , brands can usually be ranked, brands can usually be rankedobjectively on individual aspects of performanceobjectively on individual aspects of performance

Overall ranking are difficult to develop as theyOverall ranking are difficult to develop as theyinvolve benefits that not every customers need.involve benefits that not every customers need.

The superior performer depends entirely on the taskThe superior performer depends entirely on the taskbeing performed.being performed.


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1. Performance

2. Features


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2. Features2. Features

Features: characteristics that supplement theFeatures: characteristics that supplement the

product/service basic functioning.product/service basic functioning.

Ex: Free drink on plane, automatic tuner on color TVEx: Free drink on plane, automatic tuner on color TV

Features also involve objective and measurableFeatures also involve objective and measurable

attributesattributesobjective individual needs affects their translationobjective individual needs affects their translation

into quality difference.into quality difference.


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1. Performance

2. Features 3. Reliability


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3. Reliability3. Reliability

The probability that a product, piece of equipment or

system performs its intended function without failure,under stated operating conditions over a specifiedperiod of time

RELIABILITY:RELIABILITY:

Reliability cannot be tested into a productReliability cannot be tested into a product

It must be designed and manufactured into itIt must be designed and manufactured into itTesting only indicates how much reliability is in theTesting only indicates how much reliability is in theroductroduct

WHAT RELIABILITY OF 0.95 imply ????


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3. Reliability3. Reliability

Most common measures of reliability:Most common measures of reliability: Mean Time to First Failure / Mean Time to Failure (MTTF)Mean Time to First Failure / Mean Time to Failure (MTTF) Mean Time Between Failure (MTBF)Mean Time Between Failure (MTBF) Mean Time to Repair (MTTR)Mean Time to Repair (MTTR) Availability= MTBF/(MTBF+MTTR)Availability= MTBF/(MTBF+MTTR) Failure Rate per Unit TimeFailure Rate per Unit Time

Reliability become more important to customers forReliability become more important to customers for

whom downtime and maintenance become morewhom downtime and maintenance become moreexpensive.expensive.

Repairable Item


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Failure Rate ExampleFailure Rate Example

2020 air conditioning units designed for use in air conditioning units designed for use in

ISRO space shuttles operated for ISRO space shuttles operated for 1,0001,000 hours hours One failed after One failed after 200200 hours and one after hours and one after 600600 hours hours

FR FR ((% % )) = (100%) = 10%= (100%) = 10%222020

FR FR ((N N )) = = .000106= = .000106 failure/unit hr failure/unit hr 22

(18x1000)+200+600(18x1000)+200+600

Cumulative Failure Curve OverCumulative Failure Curve Over


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Cumulative Failure Curve OverCumulative Failure Curve OverTimeTime

Bathtub Curve/ Failure rate curve/Bathtub Curve/ Failure rate curve/


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Bathtub Curve/ Failure rate curve/ Bathtub Curve/ Failure rate curve/ Product Life Characteristic CurveProduct Life Characteristic Curve

Infantmortality

Few (random) failures Failures dueto wear-out

Weak components due tofrom poor manuf. orquality control procedure

uncontrollable factors likeunexpected stress due tocomplex interaction

Knowing Product life cycle characteristics curve for a product helps engineers:Predict behavior and make decisionsHelpful in developing warrantiescompare manufacturers product with competitors


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Reliability Engineering Measures Lead to:Reliability Engineering Measures Lead to:

Techniques for reducing failure rates:Techniques for reducing failure rates:

Individual component analysis:Individual component analysis: computed the failure probabilitycomputed the failure probability

of key components and aimed to eliminate or strengthen theof key components and aimed to eliminate or strengthen theweakest linkweakest link

DeratingDerating :: required that parts be used below their specifiedrequired that parts be used below their specifiedstress levels.stress levels.

Redundancy:Redundancy: called for parallel systems to back up ancalled for parallel systems to back up an

important component or subsystem in case it failed.important component or subsystem in case it failed.Failure mode and Effect Analysis (FMEA):Failure mode and Effect Analysis (FMEA): Is a systematicIs a systematicmethod of identifying and preventing product and processmethod of identifying and preventing product and processproblems before they occur.problems before they occur.

Failure Mode and Effect AnalysisFailure Mode and Effect Analysis


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Failure Mode and Effect AnalysisFailure Mode and Effect Analysis(FMEA)(FMEA)


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1. Performance

2. Features 3. Reliability

4. Conformance


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4. Conformance4. Conformance

Conformance is the degree to which productConformance is the degree to which product s design ands design and

operating characteristics meet established standards.operating characteristics meet established standards.

Drawback:Drawback: Dispersion within specification limits are ignoredDispersion within specification limits are ignored

leading to tolerance stack up.leading to tolerance stack up.

Alternative: Taguchi ApproachAlternative: Taguchi ApproachSome common measures of failure in conformance:Some common measures of failure in conformance:

Defects rate in factoryDefects rate in factory

Incidences of service callsIncidences of service calls

Accuracy and timelinessAccuracy and timeliness

Counts of processing errorsCounts of processing errors Unanticipated DelaysUnanticipated Delays

Manufacturing

Service

f l


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1. Performance

2. Features

5. Durability

3. Reliability

4. Conformance


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f l8 Di i /C i f Q li


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1. Performance

2. Features

5. Durability

3. Reliability

4. Conformance

6. Serviceability

6 S i bili6 S i bili


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6. Serviceability6. Serviceability

Serviceability is :Serviceability is : the speed,the speed, courtesy,courtesy, Technical competenceTechnical competence (represented by frequency with which(represented by frequency with which

the service calls or repair fail to correct outstanding problemsthe service calls or repair fail to correct outstanding problems )) ,, ResponsivenessResponsiveness (time before which the service is restored(time before which the service is restored

Mean Time To Repair MTTR)Mean Time To Repair MTTR) andand ease of repair.ease of repair.

8 Di i /C i f Q li8 Di i /C i f Q li


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1. Performance

2. Features

7. Aesthetics

5. Durability

3. Reliability

4. Conformance

6. Serviceability

7 A h i7 A th ti


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7. Aesthetics7. Aesthetics

Aesthetics is all about how a product:Aesthetics is all about how a product: looks,looks,

feels,feels,

sounds,sounds,

tastes or smellstastes or smells

It is clearly a matter of personal judgmentIt is clearly a matter of personal judgmentand a reflection of individual preference.and a reflection of individual preference.

8 Di i /C t i f Q lit8 Di i /C t g i f Q lit


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8. Perceived Quality

1. Performance

2. Features

7. Aesthetics

5. Durability

3. Reliability

4. Conformance

6. Serviceability

8 P i d Q lit8 Percei ed Q alit


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8. Perceived Quality8. Perceived Quality

Reputation is a primary stuff of Reputation is a primary stuff of perceived quality.perceived quality.

C ti g Q litCompeting on Quality


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Competing on QualityCompeting on Quality

A company should use the above 8A company should use the above 8dimensional framework to explore thedimensional framework to explore theopportunities it has so as to distinguish itsopportunities it has so as to distinguish itsproducts from competitors.products from competitors.

The company need not follow all theThe company need not follow all thedimensions simultaneously. Sometimesdimensions simultaneously. Sometimestradetrade --off among dimensions has to be done.off among dimensions has to be done.

Strategic ErrorsStrategic Errors


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Strategic ErrorsStrategic Errors

Introduce dimensions of quality that areIntroduce dimensions of quality that areunimportant to customers.unimportant to customers.Quality measures may be inadequate.Quality measures may be inadequate.

Some measures are too limited, they fail to capture theSome measures are too limited, they fail to capture the

aspects of quality that are important for competitive success.aspects of quality that are important for competitive success.


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1. introduction to quality management and dimentions of quality

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