chapter 9 management of quality 1saba bahouth – uco

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Chapter 9

Management of Quality

Saba Bahouth – UCO

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.


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



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.


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


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


The Process Improvement Cycle

Implement theImproved process

Select aprocess

Study/document

Seek ways toImprove it

Design anImproved process

Evaluate

Document


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


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



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



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.



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



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


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


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



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?


• Top management• Design• Procurement• Production/operations• Quality assurance• Packaging and shipping• Marketing and sales• Customer service

Responsibility for Quality


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


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


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


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


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.


Cause and Effect (Fishbone) Diagram


Histogram


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

chapter 9 management of quality 1saba bahouth – uco

Documents

quality quality

management of quality

quality principles

cost of quality

defined quality

crosby quality

quality gurus

quality management investment