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    QUALITY

    PLANNING

    By

    Zaipul Anwar

    Business & Advanced Technology Centre,

    Universiti Teknologi Malaysia

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    QUALITY PLANNING

    What Is Quality Planning?

    Quality planning is the activity of

    determining customer needs and

    developing the products and processesrequired to meet those needs

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    QUALITY PLANNING

    For managers to provide this leadership requires

    that they

    Understand how quality planning is being done Understand how quality planning should be done

    Provide the needed infrastructure and resources

    The leadership for change must come from the

    managers

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    QUALITY PLANNING

    MULTIPLE LEVELS OF QUALITY PLANNING

    The worker level.

    The departmental level. The multifunctional level

    This level is concerned with broad processes,

    such as new product development, recruitment,purchasing, and billing. Such processes thread

    their way through multiple company functions

    The corporate or divisional level

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    OUR ROLE

    Customer Processor Supplier

    OUR

    PROCESS (ES)

    Our

    SupplierOur

    Inputs

    Our

    Product (s)

    Our

    Customer

    QUALITY PLANNING

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    The Quality Planning diagram

    To illustrate, the company is a processorteam.

    In its role as a customer it receives such inputs

    as Information concerning client needs,

    competitive products, and government

    regulations

    Money from sales and investors

    Purchased goods and services

    Feedback from customers

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    The Quality Planning diagram

    In its role as aprocessor, the company converts

    these and other inputs into products such as

    sales contracts, purchase orders, saleable goodsand services, invoices, and reports of many

    kinds

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    The Quality Planning diagram

    In its role as supplier, the company

    provides clients with goods services, and

    invoices, and provides suppliers with

    purchase orders, payments, and feedback.

    Information is provided to all

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    A

    PPLYMEASU

    REMENT

    Existing Product and Process

    Identify Customers

    List of Customers

    Discover Customers Needs

    List of Customers Needs (in their language)

    Translate

    Customers Needs (In our language)

    Develop Product

    Product Features

    Develop Process

    Process Features (process ready to produce)

    Transfer to Operations

    THE

    QUALITYPLANNINGROAD MAP

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    QUALITY PLANNING

    Identify Customers

    Existing Product and Process

    PROCESS

    INPUT

    OUTPUT List of Customers

    Input-output diagram for identifying customers

    The inputis the subject matter of the planningthe product (or

    process) under consideration

    Theprocess consists of the activities conducted to discover who is

    affected by the product

    The outputis a list of those who are affectedthe customers

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    Flow ChartingA. Macro-level Flow Charting B. Micro-level Flow Charting

    Source: AT&T Network Operations Group

    Provides understanding of the whole

    Identifies customers previously neglected

    Identifies opportunities for improvement

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    Pareto analysis of customers and

    sales volume

    Useful

    Many

    Vital Few

    SalesCustomers

    Percent

    100

    0

    Use of the Pareto principle

    A relative few (vital few),

    each of whom is of greatimportance to us.

    A relatively large number of

    customers, each of whom

    is only of modest

    importance to us (theuseful many)

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    Use of the Pareto principle -

    example

    For example, two types of clients book hotel rooms:

    Travellers who arrive one by one at random

    Planners of meetings and conventions who book blocks

    of rooms far in advance

    The planners of meetings and conventions

    constitute the vital-few customers. These planners

    receive special attention from the hotel. Thetravellers are the useful many, and they receive

    standardised attention

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    Key Interfaces

    BUSINESS EXAMPLE OF KEY

    INTERFACE

    Banking Bank teller and depositorRestaurant Waiter and diner

    Hotel Reception clerk and guest

    Retailing Salesperson and shopperTelephone Operator and subscriber

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    A Customer Is a Cast of

    Characters

    Example: Those who sell supplies to hospitals

    soon learn that their customers include the

    hospital administrator, the purchasing director,

    the quality director, various heads of specialized

    departments (e.g., pharmacy, X-ray, histology,

    and cardiology), and various professionals (e.g.,

    physicians, surgeons, and nurses). All haveneeds, and all have some degree of influence on

    what is to be bought, and from whom

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    A Customer Is a Cast of

    Characters

    Internal Customers

    Internal customers include the managers of the

    affected departments. Their influence on qualityis considerable.

    Internal customers also include the work force.

    Individually, they are among the useful many.

    Collectively, they are one of the vital few

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    A Customer Is a Cast of

    Characters

    Consumers

    Consumers are a vital category ofuseful-many

    customers. Their limited technological literacyforces them to rely heavily on fallible, biased

    human sensing in making their decisions about

    which products to buy. They discover the

    technological adequacy of the product later,

    through subsequent usage. The results of that

    usage are then influential regarding repeat

    purchases.

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    A Customer Is a Cast of

    Characters

    Consumers

    Suppliers face these realities in various ways:

    1. Accept some consumer perceptions, bias and all,

    and then design products and practices to respond

    to those consumer perceptions.

    2. Try to change consumer perceptions by such

    methods as providing demonstrations oropportunities for trial use of products.

    3. Publish technological data and propaganda to

    stimulate changes in perceptions.

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    Classification Based on Use

    Processors. They use a product as inputs to their process. They then

    perform additional processing after which they sell the resulting product totheircustomers. In consequence, the initial product affects multiple levels

    of customers.

    Merchants. They buy a product for resale. As part of the resale they may

    perform some processing along with breaking bulk and repackaging. As

    with the processors, the initial product affects multiple levels of customers:

    the merchant, the merchants clients, and so on through the distribution

    chain.

    Ultimate users. They are the final destination of the product. In some

    product lines there is a market for used products, so that there are multipletiers of ultimate users.

    The public. Members of the public may be affected by a company even

    though they do not buy its products. The most obvious impacts relate to

    product safety or to damage to the environment. There are other impacts

    as well.

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    What role should managers play at each step of

    the planning process?What role should managers play with respect to the

    quality planning process generally?

    auditing of the quality-planning process (the quality-planning process generally, specific

    elements of the quality-planning process)

    managers should assure that the methods in usefor identifying customers are able toprovide the

    quality planners with the essential customer

    base

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    APPLYMEASU

    REMENT

    Existing Product and Process

    Identify Customers

    List of Customers

    Discover Customers Needs

    List of Customers Needs (in their language)

    Translate

    Customers Needs (In our language)

    Develop Product

    Product Features

    Develop Process

    Process Features (process ready to produce)

    Transfer to Operations

    THE

    QUALITYPLANNINGROAD MAP

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    Input-output diagram for

    identifying customers needs

    Discovery of customers needs is the second step on

    the quality-planning road map

    List of Customers

    Discover Customers Needs

    Customers Needs

    (in their language)

    INPUT

    PROCESS

    OUTPUT

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    Stated Needs and Real Needs

    Perceived Needs

    Cultural Needs

    Needs Traceable to Unintended

    Use

    Types of customers needs

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    Methods for Discovering

    Customers Needs Be a Customer

    Communicate with Customers

    Market Research Simulate Customers Use

    CustomersNeeds Are a Moving Target

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    A ROLE FOR MANAGERS

    Visits with key customers

    Review of reports on market researches, sales,customer service, product dissatisfactions, etc.

    Attendance at industry conferences and shows

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    APPLYMEASU

    REMENT

    Existing Product and Process

    Identify Customers

    List of Customers

    Discover Customers Needs

    List of Customers Needs (in their language)

    Translate

    Customers Needs (In our language)

    Develop Product

    Product Features

    Develop Process

    Process Features (process ready to produce)

    Transfer to Operations

    THE

    QUALITYPLANNINGROAD MAP

    Input output diagram for

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    Input-output diagram for

    translation

    Translate

    Customers Needs

    (in our language)

    INPUT

    PROCESS

    OUTPUT

    Customers Needs

    (in their language)

    Customer needs may be stated in any of several languages:

    1. The customers language

    2. The producer orsuppliers(our) language

    3. A common language

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    Common languages in the

    company

    Upper

    Management:

    Language ofMoney

    Middle Management:

    Must be Bilingual

    Lower Management andNon-supervisors:

    Language of Things

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    A Role for Managers

    Managers should accelerate this evolution by

    creating project teams whose missions are

    directed at establishing the needed glossaries,standardisation, and measurement.

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    Spreadsheet: Customer needs

    NEEDS

    Secondary TertiaryLow purchase price

    Warranty coverage

    TRANSLATION

    NEEDS TRANSLATION

    Length of

    Warranty

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    APPLYMEASU

    REMENT

    Existing Product and Process

    Identify Customers

    List of Customers

    Discover Customers Needs

    List of Customers Needs (in their language)

    Translate

    Customers Needs (In our language)

    Develop Product

    Product Features

    Develop Process

    Process Features (process ready to produce)

    Transfer to Operations

    THE

    QUALITYPLANNINGROAD MAP

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    Develop Product

    Product Features

    INPUT

    PROCESS

    OUTPUT

    Customers Needs

    (in units of measure)

    Input-output diagram for

    product development

    Product development is the activity of determining the

    product features that respond to customer needs

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    The spiral of progress in quality

    FEEDBACK

    MAINTENANCE

    USE

    RETAIL

    WHOLESALE

    The following table lists some of the

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    The following table lists some of theproducts, along with who the

    suppliers are and who the principalcustomers arePRODUCTS SUPPLIERS PRINCIPAL CUSTOMERSInvoicesPurchase orders

    Financial statementsRecruitsOffice SpaceLegal advice

    FinancePurchasing

    FinancePersonnelOffice serviceLegal department

    ClientsSuppliers

    ManagersAll departmentsAll office departmentsAll departments

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    Product Features: The Criteria

    Meets the needs of our customers. Needs here, means all

    customers needs: stated, perceived, real, and cultural.

    Meets our needs as a supplierincluding the needs of our internal

    customers.

    Meets competition. The fact that a product meets customer

    needs does not assure that customers will buy it; a competitors

    product may be better, or give better value. Hence, meeting

    competition is an important criterion for product developers.

    Minimises the combined costs. Customers and suppliers incurcosts when they use or supply the product, and each tries to

    keep their respective costs to a minimum. However, the true

    optimum as viewed by society is to minimize the combined costs

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    Disciplines for determining productfeatures include the quality-orienteddisciplines Models and data systems for evaluating and predicting product

    reliability and maintainability

    Process-capability studies for evaluating and predicting producibility

    Experiments for discovering the optimum result attainable from

    multiple converging variables

    Spreadsheets for assembling numerous interrelated data into

    condensed, easy-to-grasp forms

    Methods for evaluating cost of poor quality

    Methods for guarding against human error

    Decision trees, flow diagrams, and still other aids to quality analysis

    and decision making

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    Product Design

    An essential part of product development (i.e.,

    providing the product features required to meet

    customer needs) is product design. As used here,

    product design is the activity of defining the productfeatures required meeting customer needs.

    Product design is a creative process based largely

    on technological or functional expertise. Thedesigners are design engineers, systems analysts,

    and still other planners. The end results of product

    design are specifications, drawings, and procedures

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    Product Design

    The Pros and Cons of Structure

    Cons - It is a lot of extra work to prepare the

    spreadsheets (and other elements) of the structured

    approach Pros -

    It is an aid to human effectiveness, supplementing

    human memory and helping to guard against human

    error

    It is an aid to participation in quality planning; that is,

    completing the spreadsheets requires inputs from the

    affected departments

    Brief planning and lengthy

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    Brief planning and lengthy

    execution versus lengthy

    planning and brief execution

    Japan Plan Japan Execute

    U.S. Plan U.S. Execute

    Time

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    During the

    process oflaunching

    new

    products,

    use ismade of

    three

    generic

    forms ofspread-

    sheet

    Example of spreadsheet showing

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    Example of spreadsheet showing

    standardised symbols

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    Qualitative customer needs and

    quantitative product

    CUSTOMER NEEDS(in qualitative terms)

    RESULTING PRODUCT FEATURES(in quantitative terms)

    PromptnessReliabilitySafetyRoominessPurity

    Delivery timeMean time between failuresTensile strengthSpatial dimensionsParts per million of impurities

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    APPLYMEASU

    REMENT

    Existing Product and Process

    Identify Customers

    List of Customers

    Discover Customers Needs

    List of Customers Needs (in their language)

    Translate

    Customers Needs (In our language)

    Develop Product

    Product Features

    Develop Process

    Process Features (process ready to produce)

    Transfer to Operations

    THE

    QUALITYPLANNINGROAD MAP

    d

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    Input-output diagram for

    process development

    Aprocess is a systematic series of actions directed to the

    achievement of a goal. As used here, the term includes all functions,

    non-manufacturing as well as manufacturing. It also includes the

    human forces as well as the physical facilities

    Develop Process

    Process Features

    INPUT

    PROCESS

    OUTPUT

    Product Goal

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    Process Development

    Process developmentis a generic term that includes the activities of

    product design review, choice of process, and process design,

    provision of facilities, and provision of software (methods, procedures,

    cautions).

    Our emphasis is on process design, which is defined as follows: the

    activity of defining the specific means to be used by the operatingforces for meeting the product goals.

    This definition covers

    (a) the physical equipment to be provided;

    (b) the associated software (the brain and nervous system of the

    equipment); and

    (c) information on how to operate, control, and maintain the

    equipment

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    Process Capability

    In the case of process development a major aid for

    prediction is process capability: the inherent ability

    of a process to carry out its intended mission

    Example - Engineers who design goods are aided

    by tables that set out the properties of materials and

    the failure rates of components

    D i

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    The end result of process design is a definition of

    the means to be used by the operating forces for

    meeting the product goals.

    To arrive at this definition the process designers

    require various inputs, especially knowledge of the

    product quality goals, of the operating conditions,

    and of the capability of alternative processes

    Process Design

    P D i

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    Most major processes consist of multiple operations (also

    called steps, tasks, unit processes, etc.).Examples of such operations are opening the mail and heat

    treating. Such operations are linked together in various

    ways, mainly by a combination of a procession and an

    assembly tree

    Process Design

    FIGURE 22 The procession

    SUPPLIER DEPARTMENT

    IN HOUSE DEPARTMENTS

    To Test and Usage

    Final Assembly

    Sub- Assembly

    Dept.

    In-House Dept.

    Supplier Dept.

    To Test and

    Usage

    Spreadsheet: Product features and

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    Spreadsheet: Product features and

    process

    PRODUCTFEATURE

    PRODUCTGOAL

    PROCESS FEATURES

    Wave Solder ConditionsParts Bin

    Arrangement Solder Temp Contact Time Alloy Purity

    Identity ofcomponents

    100% correct partnumbers inserted

    **

    Componentpolarity

    100% correctorientation

    *

    Continuity ofsolder joints

    100% continuity ** ** **

    Key: ** Strong relationship

    * Weak relationship

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    APPLYMEASU

    REMENT

    Existing Product and Process

    Identify Customers

    List of Customers

    Discover Customers Needs

    List of Customers Needs (in their language)

    Translate

    Customers Needs (In our language)

    Develop Product

    Product Features

    Develop Process

    Process Features (process ready to produce)

    Transfer to Operations

    THE

    QUALITYPLANNINGROAD MAP

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    Transfer to operations

    Transfer to operations includes a transfer ofresponsibility from the planners to the operating

    managers

    Proof of process capability can be provided bydirect measurement of the process (if feasible)

    Other ways

    The dry run The pilot test

    The Acceptance test

    Simulation

    AUDITING OF THE QUALITY

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    AUDITING OF THE QUALITY-

    PLANNING PROCESS

    The analysis should concentrate on providing answers to results-oriented questions such as,How well were customers needs met?

    How lengthy was the cycle time?

    How extensive was the redoing of prior work?

    The analysis should also examine the quality-planning process used to

    secure these results. Here the need is to provide answers to questions

    such as,What specific features of the quality-planning process seemed to have

    been associated with well-planned projects?What specific obstacles were encountered by the planners?

    What can be done to help the planners (e.g., superior data base and

    training)?

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    The World Turned Upside Down!

    QUALITY CIRCLES

    CEO

    SNR MGT

    MANAGEMENT

    SUPERVISORS

    OPERATORS

    CONTROL

    COACHMASS PRODUCTIVITY /

    SCIENTIFIC MANAGEMENT

    CEO

    SNR MGT

    MANAGEMENT

    SUPERVISORS

    OPERATORS

    CUSTOMER FOCUSED /

    CONTINUOUS IMPROVEMENT

    THE BENEFITS OF

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    THE BENEFITS OF

    QUALITY CIRCLES A Direct Pay-off (cost/benefits)

    An Operator To Manager Dialogue(involvement, participation, communication)

    A Manager To Manager Dialogue (awareness)

    An Operator to Operator Dialogue (attitudes)

    A Quality Mindedness (product quality and

    reliability, prevention of non-conformance)

    The Personal Development of theParticipants