Quality Management

Manufacturing & Service IndustryQuality in OperationsTopics1. Definition of Quality2. Special Concepts Related to Quality3. The Quality GURUs4. Cost of Quality5. The 7 QC ToolsDefine Quality ?What is your definition of Quality ?Why 2 different quality products from 2 different societies ???Indian CarGerman car

Parks Management in 2 Cities : Quality is a State of Mind

Differences in Healthcare Infrastructure : 2 Hospital Wards

Healthcare Infrastructure : Patient Reception

Healthcare Infrastructure : Patient Reception

Definition of Quality in BusinessIt is ameasureof excellence or a state of beingfreefromdefects, deficiencies, andsignificant variations, brought about by the strict and consistent adherence to measurable and verifiable standards toachieve uniformityof outputthat satisfies specific customer requirements.

Definitions

Formal Definitions What is Quality?

I. Degree to which a set of inherent characteristics fulfills requirements (Clause 3.1.1 of ISO 9000: 2005)

II.Fitness for intended use2. What is QMS (Quality Management System) ?management system to direct and control an organization with regard to quality. (Clause 3.2.3 of ISO 9000: 2005))Special Definition of Terminologies in Quality ManagementConcept of CUSTOMER has evolved.

Quality is a JOURNEY not a destination.

(iii) Evolution of the concept of Quality Control Function.

Internal and External Customers

Quality is a Journey

KAIZEN ????What is it ????Kaizen :What it means to the Japanese

Kaizen Just Do It!Kaizen means continuous improvement. Moreover, Kaizen means continuing improvement in personal life, home life, social life, and working life. When applied to the workplace Kaizen means continuing improvement involving everyone managers and workers alike. - Mr. Masaaki Imai (1986)

Evolution of Quality FocusQMS Principles Customer Focus Leadership Involvement of people Process approach (PDCA)Systems approach to managementContinual improvementFactual approach to decision makingMutually beneficial supplier relationships (Win Win)

GURUS of QualityShewhartDemingJuranIshikawaParetoFeigenbaumCrosbyTaguchi

Walter Shewhart (1891-1967)

American Professor known to be the pioneer in the field of Quality in Manufacturing.The teacher of Deming (Guru of Gurus)Known for developing: Statistical Process ControlStatistical Process Control (SPC)

Edward Deming (1900-1993)Known as the Father of Quality EvolutionAmerican born, but worked and made his mark in Japan. Known for: -Demings 14 points -PDCA Cycle (Deming Wheel) -Most prestigious quality award named after him

Dr. Edward Deming He dispelled the MYTH that it costs more to make better quality products. He proved that a high-quality process is less costly than a low quality one. By making the product properly the first time, we save substantially by eliminating unnecessary labor, scrap, or re-work.

241. Create constancy of purpose for improvement 2. Adopt a new philosophy 3. Cease dependence on mass inspection 4. Do not award business on price alone 5. Work continually on the system of production and service 6. Institute modern methods of training 7. Institute modern methods of supervision of workers 8. Drive out fear 9. Break down barriers between departments10. Eliminate slogans, exhortations, and targets for the work force11. Eliminate numerical quotas12. Remove barriers preventing pride of workmanship13. Institute a vigorous program of education and retraining14. Take action to accomplish the transformation

Demings 14 PointsDeming Wheel: First Adopted in Japan by Toyota

Break up of the Deming Wheel (PDCA)

P4

P3

P2

P1

C 3

C 2

C 1

A3A2A1D1D2D3 P : Plan D : Do C : Check A : ActionPDAC

P D C A

How Deming Transformed Organizations in Japan29Essential elements to business success include: Customer LoyaltyEmployee CommitmentOperating Efficiency

Some interesting evidence to validate transitioning into a Customer Focused company: Customer perception of quality in the top 1/5.pretax ROI=32% Customer perception of quality in the bottom 2/5.pretax ROI=14% Almost 70% of why customers left companies had nothing to do with product quality Only 4% of customers complain 65-90% of unhappy customers would never again buy from the company When people did complain and their problems were resolved quickly, 82% would buy again It costs five times as much to replace a typical customer as it does to take actions that would have kept the customer in the first place Only 4% of company problems or barriers to delighting the customer are known to top managers. (9% to managers, 74% to supervisors, 100% baseline employee)

Truth: Quality offers something to everyonethe customer, the employee, and the business. It stands for what most employees especially believe indoing a job right the first time, being the best at what they do, and having everyones ideas treated with respect.

Kaoru Ishikawa (1915-1989)Mostly noted for developing the Cause and Effect Diagram aka Ishikawa Diagram or Fish-Bone DiagramUsed to Identify Root Causes of ProblemsAlso introduced the concept of Quality Circles

Ishikawas Fish-bone or Cause & Effect Diagram

Joseph Juran (1904-2008) Known for:Juran TrilogyCost of QualityDefined quality as fitness for intended use

Vilfredo ParetoItalian engineer known for developing the Pareto DiagramHis theory was based on the findings that 80% problems were caused by 20% reasons, hence, priority should be given after finding this 20%

Pareto Diagram

....more GURUS of QualityArmand Feigenbaum (followed up on Jurans ideas)Philip Crosby (He preached that quality is Free & that defects have costly consequences)Genichi Taguchi (He expanded the concept of cost of quality from firm-level to include whole of society)

Cost of Quality1. Cost of Prevention

2. Cost of Detection/Appraisal/Inspection

3. Cost of Failure : (a) Internal Failure (b) External Failure

New Paradigms in Quality Management1. Total Quality Management: is an integrative philosophy of management for continuously improving the quality of products and processes. In a TQM effort, all members of an organization participate in improving processes, products, services and the culture in which they work. TQM requires the involvement of management, workforce, suppliers, and customers, in order to meet or exceed customer expectations.2. Six Sigma ( 6 ): Developed by Motorola, A six sigma process is one in which 99.9999966% of the products manufactured are statistically expected to be free of defects (i.e. max. 3.4 failures per million). It is a management approach that requires a highly trained set of people to implement it.

Definition:Total Quality ManagementTotal Quality Management (TQM) and Six Sigma (6) are sweeping culture change efforts to position a company for greater customer satisfaction, profitability and competitiveness.TQM may be defined as managing the entire organization so that it excels on all dimensions of products and services that are important to the customer.We often think of features when we think of the quality of a product or service; TQM is about conformance quality, not features.

431980s Long Range

Encompasses entire organizationInternational Quality RecognitionQuality Recognition Certifications: (a) ISO 9000 Series (process quality standards) (b) Malcom Baldridge National Quality Award (MBNQA)-USA (c) EFQM Excellence Model (Europe) (d) Deming Prize (Japan) (e) ISO 14000 Series (environmental compliance standards)

Seven Basic Quality Tools To improve Process QualityScatter Diagrams: Plot data on a chart no attempt is made to classify the data or massage itPareto Charts: Organize data on a histogram based on frequency from most prevalent to least. Help identify major causes or occurrences (80:20 rule)Check Sheets: Easy way to count frequency of occurrence by front line workersHistograms: Categorize data is cells and plot (see if any patterns emerge)Run Charts: Plot data as a function of timeCause and effects Charts: fishbone diagrams are used to identify the root causes of a problemControl Charts: are statistical tools used to determine if the variation in results is caused by common or special events

Assignment : Project Work for MSC 301Please form a QCC (max of 5 students per QC Circle) and take the following steps: Select a Leader and a Deputy Leader Name the QCC Take up problem(s) which may be within the campus or outside Make effort to solve the problem(s) basing on the outcome of brainstorming and using TQM / QC ToolsPlease make a presentation of your QCC recommended solutionFrom

Motivation through fear and loyalty

To

Motivation through shared vision

Attitude: Its their problemOwnership of every problem affecting the customer

Attitude: the way weve always done it

Continuous improvement

Decisions based on assumptions/ judgment callsDecisions based on data and facts

Everything begins and ends with management

Everything begins and ends with customers

Crisis management and recoveryDoing it right the first time

Choosing participative OR scientific managementChoosing scientific AND participative management