chapter 9 management of quality 1saba bahouth – uco
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Saba Bahouth – UCO 2
Chapter 15 Quality Management
• Quality management refers to systematic policies, methods, and procedures used to ensure that goods and services are produced with appropriate levels of quality to meet and exceed the needs of customers.
• Organizations today integrate quality principles into their management systems, using tools such as Total Quality Management (TQM), Six Sigma, and Lean Operating Systems.
Understanding Quality• Quality can be a confusing concept, partly because
people view quality in relation to differing criteria based on their individual roles in the value chain such as:
perfection,doing it right the first time, and/orconsistency.
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Chapter 15 Quality ManagementA Brief History of Quality Management• Historical uses of quality management include the
precision involved in building of Egyptian pyramids, interchangeable parts during Industrial Revolution, and statistical tools used for quality control during World War II.
• Dr. Joseph Juran and Dr. W. Edwards Deming were pioneers in the field (more later on these two quality gurus).
• Japan integrated quality ideas and methods throughout their organizations and developed a culture of continuous improvement. 1924 - Statistical process control charts
1930 - Tables for acceptance sampling1940’s - Statistical sampling techniques1950’s - Quality assurance/TQC1960’s - Zero defects1970’s - Quality assurance in services
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Chapter 15 Quality Management
Investment in Quality Yields Business Results Increased employee participation Improved product and service quality Improved customer satisfaction Improved productivity Improved employee skills Improved financial performance
Principles of Total Quality Management A focus on customers and stakeholders. A process focus supported by continuous improvement and
learning. Participation and teamwork by everyone in the organization.
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Dimensions of Quality
• Performance - main characteristics of the product/service• Aesthetics - appearance, feel, smell, taste• Special Features - extra characteristics• Conformance - how well a product/service meets
expectations• Reliability - consistency of performance
• Durability - useful life of the product/service
• Perceived Quality - indirect evaluation of quality (e.g. reputation)
• Serviceability - service after sale
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W. Edwards Deming• Reducing variability in processes • ^ quality -> ^ productivity and V
costs• “Chain Reaction” theory • “14 Points” management philosophy• Deming Cycle: Plan, Do, Study, and
Act.Joseph Juran• Quality Control Handbook (1951)
• Defined quality as “fitness for use”• Advocated use of quality cost measurement• Quality Trilogy: quality planning - quality control - quality
improvementPhilip B. Crosby• Quality is Free (1979)
• Quality means conformance to requirements, not excellence.• Doing the job right the first time is always cheaper.• Measurement: the cost of quality = expense of nonconformance.• The only performance standard is Zero Defects (ZD).
Feignbaum: Quality is a total fieldIshigawa: Cause and Effect diagram; Quality CirclesTaguchi: Taguchi Loss FunctionOhno and Shingo: Continuous improvement (Toyota)
PDSA Cycle
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The Process Improvement Cycle
Implement theImproved process
Select aprocess
Study/document
Seek ways toImprove it
Design anImproved process
Evaluate
Document
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Chapter 15 Influential Leaders in Quality Management
W. Edwards Deming 14 Points
Point 1: Create Vision; Demonstrate Commitment
Point 2: Learn the Philosophy Point 3: Understand Inspection Point 4: Stop Purely Cost Based DecisionPoint 5: Improve Constantly and Forever Point 6: Institute Training Point 7: Institute LeadershipPoint 8: Drive Out Fear Point 9: Optimize the Efforts of Teams Point 10: Eliminate ExhortationPoint 11: Eliminate Numerical Quotas Point 12: Remove Barriers to Pride in Work Point 13: Reward Education / Self-
Improvement Point 14: Take Action
Deming’sChain Reaction
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Elements of TQMA philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.
1. Continual improvement2. Competitive benchmarking3. Employee empowerment4. Team approach5. Decisions based on facts6. Knowledge of tools7. Supplier quality8. Champion9. Quality at the source10. Relationship with customers and suppliers
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Chapter 15 Quality Management
Six Sigma• Six Sigma is a business improvement approach that
seeks to find and eliminate causes of defects and errors.• Used by companies including Motorola, Allied Signal,
Texas Instruments, and General Electric.• The Six Sigma concept characterizes quality
performance by defects (or errors) per million opportunities – dpmo or epmo.
Statistically speaking:– 3 Sigma results in around 3 defects per thousand (old standard)– 6 Sigma results in around 3-4 defects per million
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Chapter 15 Quality Management
Six Sigma’s DMAIC ProcessDefine: identify customer and priorities, identify and define a
suitable project, identify CTQs (critical to quality characteristics).
Measure: determine how to measure the process, identify key internal processes that influence CTQs.
Analyze: determine likely causes of defects and understand why defects are generated by identifying key variables that cause process variation.
Improve: identify means to remove defects, confirm key variables, modify the process to stay within acceptable range.
Control: determine how to maintain improvements, put tools in place to ensure that key variables remain within acceptance ranges under the modified process.
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Chapter 15 Quality Management
Six Sigma teams are comprised of:• Champions - senior-level managers who promote and lead the
deployment of Six Sigma. • Master Black Belts - full-time Six Sigma experts who are
responsible for Six Sigma strategy, training, mentoring, deployment, and results.
• Black Belts - fully-trained Six Sigma experts with up to 160 hours of training who perform much of the technical analyses required of Six Sigma projects, usually on a full-time basis.
• Green Belts – functional employees who are trained in introductory Six Sigma tools and methodology and work on projects on a part-time basis, assisting Black Belts while developing their own knowledge and expertise.
• Team Members are individuals from various functional areas who support specific projects.
Implementing Six Sigma
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Chapter 15 Quality Management
Cost of Quality Measurements
Cost of quality: costs associated with avoiding poor quality or those incurred as a result of poor quality.
• Prevention costs: expended to keep nonconforming goods and services from being made and reaching the customer – Training cost.
• Appraisal costs: expended on ascertaining quality levels through measurement and analysis of data to detect and correct problems.
• Internal-failure costs: costs incurred as a result of unsatisfactory quality that is found before delivery of good or service to the customer.
• External-failure costs: incurred after poor-quality goods or services reach the customer.
Quality is
Free
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Chapter 15 Quality ManagementISO 9000:2000
• Quality standards 1987, 1994, 2000 to improve the quality of operation’s processes, and provide confidence to organizations and customers.
• Internationally recognized - required in certain countries.
• Standardizes key terms in quality; provides a set of basic principles for initiating quality management systems.
•Customer focus•Leadership•People involvement•Process approach•A systems approach to management•Continual improvement•Factual approach to decision making•Mutually beneficial supplier relationships
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The Deming Prize•Honoring W. Edwards Deming•Japan’s highly coveted award•Main focus on statistical quality control
•Leadership (125 points)
•Strategic Planning (85 points)
•Customer and Market Focus (85 points)
•Information and Analysis (85 points)
•Human Resource Focus (85 points)
•Process Management (85 points)
•Business Results (450 points)
Malcolm Baldrige National Quality Award
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Chapter 15 Quality Management
Continuous Improvement (Kaizen): focuses on small, gradual, and frequent improvements over the long term with participation by everyone in the organization.
Poka-Yoke (Mistake-Proofing): an approach using automatic devices or methods to avoid simple human error.
• French fries are prepackaged for a particular size of a fryer.
• A flash memory with the beveled corner. • Windows: Are you sure?
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• Top management• Design• Procurement• Production/operations• Quality assurance• Packaging and shipping• Marketing and sales• Customer service
Responsibility for Quality
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TQM Tools – 7 Tools
Flowcharts Visual representation of the process - logical sequential flow
Check sheets A tabular or graphical method making data easier to understand
Run charts A graphical approach for tracking performance over time
Pareto analysis Vilfredo Pareto (Italian): few factors account for a large percentage
Cause-and-effect Ishikawa - Fishbone diagrams: grouping causes in categories
Histograms Showing the frequency of events
Control charts A statistical tool for identifying non-randomness in a process
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Customer’s Satisfaction Flowchart for a Restaurant
Warm Welcome
Complete the “Guest’s Suggestion Form”
Identify # of guestsand match with table availability
Rectify
Check and farewell
Fulfill Order/Need
Identify the problem
Daily Report
Need for order
assistance
Enter into guest history profile and initiate a
letter if necessary
Dissatisfied
Suggestions
Routine
Satisfied
Satisfied or not
Need help
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Day TimeMissing
labelSmeared
PrintDented Bottle
Cap is lose Other Total
Mon 8:00 - 9:00 III I II 69:00 -10:00 II I 310:00 - 11:00 III I I (torn) 511:00 - 12:00 I I II 41:00 - 2:00 II I 32:00 - 3:00 I III 43:00 - 4:00 III IIII 7
15 5 8 3 1 32
Type of Defects
Total
Check Sheet
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An Example of a Run Chart
MonthNumber of Complaints Mean
Jan 10 18Feb 12 18Mar 13 18Apr 15 18May 18 18Jun 13 18Jul 19 18Aug 18 18Sep 25 18Oct 20 18Nov 27 18Dec 30 18
Mean 18
Number of Complaints per Year
0
5
10
15
20
25
30
35
Jan
Feb Mar
Apr
May
Jun
Jul
Aug
Sep Oct
Nov
Dec
Months
Co
mp
lain
ts
Number ofComplaints
Mean
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Pareto Chart
Types of Complaints
Number of Complaints
Cum. Perc.
Taste of meal 65 52%Cold Food 25 73%Slow service 20 89%Dirty table 10 97%Other 4 100%Total 124
Restaurant - Pareto Chart
0
20
40
60
80
100
120
Taste ofmeal
Cold Food Slowservice
Dirty table Other
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Number ofComplaints
Cum. Perc.
Types of ComplaintsNumber of Complaints
Cumm. Perc.
Taste of meal 0 0%Cold Food 25 42%Slow Service 20 76%Dirty Table 10 93%Other 4 100%Total 59
Saba's Restaurant - Pareto Chart
0
10
20
30
40
50
Taste ofmeal
Cold Food SlowService
Dirty Table Other
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Number ofComplaints
Cumm.Perc.
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Control Chart
0%
10%
20%
30%
0 1 2 3 4 5 6 7 8 9 10
Game Number
Upper Control Limit
Lower Control Limit
Coach's target value
9-27
Service QualityDimension Examples
1. Convenience Was the service center conveniently located?
2. Reliability Was the problem fixed?
3. Responsiveness Were customer service personnel able to answer questions?
4. Time How long did the customer wait?
5. Assurance Did the customer service personnel seem knowledgeable?
6. Courtesy Were customer service personnel and the cashier friendly?
7. Tangibles Were the facilities clean; personnel neat?
Challenges with Service Quality:• Customer expectations often change• Different customers have different expectations• Each customer contact is a “moment of truth”• Customer participation can affect perception of
quality• “Fail-safe” must be designed into the system
Many Moments of Truth
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