om quality
TRANSCRIPT
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QUALITY
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QUALITY Many organizations have found quality is a wonderful tonic for
improving operations
Quality or the lack of quality affects the entire organization from
supplier to customer & from product design to maintenance Quality is the ability of a product or service to meet customer needs
In other words we can say that quality is fitness for use
It is the conformance to requirements
INTERNATIONAL QUALITY STANDARDS TOTAL QUALITY MANAGEMENT
It refers to a quality emphasis that encompasses the entireorganizations from supplier to customer.TQM stresses a commitment
by management to have a continuing company wide drive towardexcellence in all aspects of products & services that are important tothe customer
TQM is management of an entire organizations so that it excels in allaspects of products & services that are important to the customer.
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TOTAL QUALITY MANAGEMENT
Continuous Improvement
Six Sigma
Employee Empowerment
Benchmarking
Just-in-Time (JIT)
Taguchi Concepts
Knowledge of TQM Tools
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TOOLS OF TQM Check sheets
Scatter Diagrams
Cause-and-Effect Diagram Pareto Charts
Flow Charts
Histograms
Statistical Process Control (SPC)
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To Make the Quality Focus Work
Motorola:
Aggressively began a worldwide education
program to be sure that employees understood
quality and statistical process control
Established goals
Established extensive employee participation and
employee teams
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Ways in Which Quality Can ImproveProductivity
Sales Gains Improved response
Higher Prices
Improved reputation
Reduced Costs Increased productivity
Lower rework and scrap costs
Lower warranty costs
Increased
Profits
Improved
Quality
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Flow of Activities Necessary to AchieveTotal Quality Management
Organizational Practices
Quality Principles
Employee Fulfillment
Customer Satisfaction
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Organizational Practices
Leadership
Mission statement
Effective operating procedure Staff support
Training
Yields: What is important and what is to beaccomplished
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Quality Principles
Customer focus
Continuous improvement
Employee empowerment
Benchmarking
Just-in-time
Tools of TQM
Yields: How to do what is important and to beaccomplished
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Employment Fulfillment
Empowerment
Organizational commitment
Yields: Employees attitudes that they canaccomplish what is important and to be
accomplished
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Customer Satisfaction
Winning orders
Repeat customers
Yields: An effective organization with acompetitive advantage
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Definitions of Quality
ASC: Product characteristics & features that
affect customer satisfaction
User-Based: What consumer says it is
Manufacturing-Based: Degree to which a
product conforms to design specification
Product-Based: Level of measurableproduct characteristic
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Operation
Reliability & durability
Conformance
Serviceability
Appearance
Perceived quality
Quality
Dimensions of Quality for Goods
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Under-standing
Tangibles
Reliability
CommunicationCredibility
Security
Responsiveness
Competence
Courtesy
Access
1995 Corel Corp.
Service Quality Attributes
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Importance of Quality
Costs & market
share
Companys
reputation
Product
liability
International
implications
Increased
Profits
Lower CostsProductivity
Rework/Scrap
Warranty
Market Gains
Reputation
VolumePrice
Improved
Quality
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Established in 1988 by the U.S. government
Designed to promote TQM practices
Some criteria
Senior executive leadership; strategic planning;management. of process quality
Quality results; customer satisfaction
Recent winners Corning Inc.; GTE; AT&T; Eastman Chemical.
Malcom Baldrige National QualityAward
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6
-1
Costs of Quality
It is the cost of doing things wrong- that is the price of
nonconformance. Four major categories of costs are associated withquality called cost of quality (COQ).
Prevention costs - reducing the potential for
defects (Eg:training,quality improvementprograms)
Appraisal costs - evaluating products( Eg:testing, labs, inspectors )
Internal failure - of producing defective partsor service (Eg : rework, Scrap)
External costs - occur after delivery( Eg:Returned goods, lost goodwill )
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International Quality Standards
Industrial Standard Z8101-1981 (Japan) Specification for TQM
ISO 9000 series (Europe/EC)
Common quality standards for products sold inEurope (even if made in U.S.)
ISO 14000 series (Europe/EC)
Standards for recycling, labeling etc.
ASQC Q90 series; MILSTD (U.S.)
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TraditionalQuality Process (Manufacturing)
Specifies
Need
Customer
Interprets
Need
Marketing
Designs
Product
Defines
Quality
Engineering
Produces
Product
Plans
Quality
Monitors
Quality
Operations
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TQM
Encompasses entire organization, from supplier
to customer
Stresses a commitment by management to have
a continuing, company-wide, drive toward
excellence in all aspects of products and
services that are important to the customer.
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Organizational Practices
Quality Principles
EmployeeFulfillment
Attitudes(e.g., Commitment)
How to Do
What to Do
Effective
Business
Customer
Satisfaction
Achieving
Total Quality Management
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Demings Fourteen Points
Create consistency of purpose
Lead to promote change
Build quality into the products
Build long term relationships
Continuously improve product, quality, andservice
Start training Emphasize leadership
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Demings Points - continued
Drive out fear
Break down barriers between departments
Stop haranguing workers
Support, help, improve
Remove barriers to pride in work
Institute a vigorous program of educationand self-improvement
Put everybody in the company to work onthe transformation
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Concepts of TQM
Continuous improvement
Employee empowerment
Benchmarking Just-in-time (JIT)
Taguchi concepts
Knowledge of TQM tools
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Continuous Improvement
Represents continual improvement of
process & customer satisfaction
Involves all operations
& work units
Other names Kaizen (Japanese)
Zero-defects Six sigma
1984-1994 T/Maker Co.
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Shewharts PDCA Model
4.Act 1.Plan
3.Check 2.Do
Identify the
improvementand make a plan
Test the
plan
Is the
plan
working
Implemen
t the plan
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Employee Empowerment
Getting employees involved in product &
process improvements 85% of quality problems are due to process & material
Techniques Support workers
Let workers make decisions
Build teams & quality circles
1995 Corel Corp.
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Quality Circles
Group of 6-12 employees from same
work area
Meet regularly to solve work-related
problems
4 hours/month
Facilitator trains & helps
with meetings
1995 Corel Corp.
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Benchmarking
Selecting best practices to use
as a standard for performance
Determine what to benchmark
Form a benchmark team
Identify benchmarking partners
Collect and analyze benchmarking information
Take action to match or exceed the benchmark
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Resolving Customer Complaints
Best Practices
Make it easy for clients to complain
Respond quickly to complaints
Resolve complaints on the first contact Use computers to manage complaints
Recruit the best for customer service jobs
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Just-in-Time (JIT)
Relationship to quality:
JIT cuts cost of quality
JIT improves quality
Better quality means less inventory and better,
easier-to-employ JIT system
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Just-in-Time (JIT)
Pull system of production/purchasing
Customer starts production with an order
Involves vendor partnership programs toimprove quality of purchased items
Reduces all inventory levels
Inventory hides process & material problems
Improves process & product quality
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Just-In-Time (JIT) Example
Scrap
Work in process inventory level
(hides problems)
Unreliable Vendors Capacity Imbalances
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Just-In-Time (JIT) Example
Scrap
Reducing inventory reveals
problems so they can be solved.
Unreliable Vendors Capacity
Imbalances
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Tools for TQM
Quality Function Deployment House of Quality
Taguchi technique
Quality loss function Pareto charts
Process charts
Cause-and-effect diagrams Statistical process control
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Quality Function Deployment(QFD)
Determines what will satisfy the customer
Translates those customer desires into the
target design
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Taguchi Techniques
Experimental design methods to improveproduct & process design
Identify key component & process variablesaffecting product variation
Taguchi Concepts
Quality robustness
Quality loss function
Target specifications
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Ability to produce
products uniformly
regardless of
manufacturing
conditions
Put robustness in
House of Qualitymatrices besides
functionality 1984-1994 T/Maker Co.
1995 Corel Corp.
Quality Robustness
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Shows social cost ($) of deviation from target
value
Assumptions Most measurable quality characteristics (e.g., length,
weight) have a target value
Deviations from target value are undesirable
Equation: L = D2C
L = Loss ($); D = Deviation; C = Cost
Quality Loss Function
Q lit L F ti
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Quality Loss Function
Frequency
Target Upper Lower
Target-oriented quality
yields more product in
the "best" category
Distribution of Specifications for Products Produced
Conformance-oriented
quality keeps products
within 3 standarddeviations
Loss
High Loss
Low Loss
Unacceptable
Poor
Fair
Good
Best
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The specifications for the
diameter of a gear are
25.00 0.25 mm.
If the diameter is out of
specification, the gear
must be scrapped at a cost
of$4.00. What is the loss
function?
1984-1994 T/Maker Co.
Quality Loss Function Example
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L = D2C = (X - Target)2C
L = Loss ($); D = Deviation; C = Cost
4.00 = (25.25 - 25.00)2C
Item scrapped if greater than 25.25(USL = 25.00 + 0.25) with a cost of $4.00
C = 4.00 / (25.25 - 25.00)2 = 64
L = D2 64 = (X - 25.00)264 Enter various X values to obtain L & plot
Quality Loss Function Solution
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Freq.
XTarget USLLSL
A study found U.S. consumers preferred Sony TVs
made in Japan to those made in the U.S. Bothfactories used the same designs & specifications. Thedifference in quality goals made the difference in
consumer preferences.
Japanese factory(Target-oriented)
U.S. factory(Conformance-oriented)
Target Specification Example
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Quality Loss Function; Distribution of
Products Produced
Low loss
High loss
Frequency
Lower Target Upper
Specification
Loss (to
producing
organization,
customer, and
society)
Quality Loss Function (a)
Unacceptable
Poor
Fair
Good
Best
Target-oriented
quality yields
more product in
the best
categoryTarget-oriented
quality brings
products toward the
target valueConformance-oriented
quality keeps product
within three standarddeviations
Distribution of
specifications for product
produced (b)
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PDCA Cycle
4.Act:
Implementthe plan
1.Plan:
Identify theimprovementand make a
plan
3.Check:
Is the plan
working
2.Do:
Test the plan
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Tools of TQM Tools for generating ideas
Check sheet
Scatter diagram
Cause and effect diagram
Tools to organize data Pareto charts
Process charts (Flow diagrams)
Tools for identifying problems Histograms Statistical process control chart
l f
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Seven Tools for TQM
l f l f
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Pareto Analysis of Wine Glass Defects(Total Defects = 75)
54
125 4 2
72%
88%93% 97% 100%
0
10
20
30
40
50
60
70
Scratches Porosity Nicks Contamination Misc.
Causes, by percent total defects
Frequency
(Number)
0%
20%
40%
60%
80%
100%
Cumulativ
ePercent
72% 16% 5% 4% 3%
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Shows sequence of events in process
Depicts activity relationships
Has many uses Identify data collection points
Find problem sources
Identify places for improvement Identify where travel distances can be reduced
Process Chart
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SUBJECT: Request tool purchase
Dist (ft) Time (min) Symbol Description
D Write order
D On desk
75 D To buyer
D Examine
= Operation; = Transport; = Inspect;
D = Delay; = Storage
Process Chart Example
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Used to find problem sources/solutions
Other names
Fish-bone diagram, Ishikawa diagram
Steps
Identify problem to correct
Draw main causes for problem as bones
Ask What could have caused problems in these
areas? Repeat for each sub-area.
Cause and Effect Diagram
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Too manydefects
Problem
Cause and Effect Diagram Example
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Method Manpower
Material Machinery
Too manydefects
Main Cause
Main Cause
Cause and Effect Diagram Example
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Method Manpower
Material Machinery
DrillOvertime
Steel
Wood
Lathe
Too manydefects
Sub-Cause
Cause and Effect Diagram Example
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6-55
Method Manpower
Material Machinery
DrillOvertime
Steel
Wood
Lathe
Too manydefects
Tired
Old
Slow
Cause and Effect Diagram Example
Fi hb Ch t P bl ith Ai li
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6-56
Fishbone Chart - Problems with AirlineCustomer Service
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Uses statistics & control charts to tell whento adjust process
Developed by Shewhart in 1920s
Involves Creating standards (upper & lower limits)
Measuring sample output (e.g. mean wgt.)
Taking corrective action (if necessary) Done while product is being produced
Statistical Process Control (SPC)
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Produce GoodProvide Service
Stop Process
Yes
No
Assign.
Causes?Take Sample
Inspect Sample
Find Out WhyCreate
Control Chart
Start
Statistical Process Control Steps
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Process Control Chart
Plot of Sample Data Over Time
0
20
40
60
80
1 5 9 13 17 21
Time
SampleV
alue Sample
Value
UCL
Average
LCL
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Control Chart
Patterns to Look for in
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Patterns to Look for inControl Charts
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Involves examining items to see if an item isgood or defective
Detect a defective product
Does not correct deficiencies in process orproduct
Issues
When to inspect Where in process to inspect
Inspection
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When and Where to Inspect
At the suppliers plant while the supplier is producing
At your facility upon receipt of goods from the supplier
Before costly or irreversible processes
During the step-by-step production processes
When production or service is complete
Before delivery from your facility
At the point of customer contact
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Inspection Points in Services
Organization What is Inspected Standard
Jones Law
Office
Receptionist
performance
Billing
Attorney
Is phone answered by the
second ring
Accurate, timely, and
correct format
Promptness in returning
calls
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Inspection Points in Services
Organization What is Inspected Standard
Hard Rock
Hotel
Reception desk
Doorman
Room
Minibar
Use customers name
Greet guest in less than 30
seconds
All lights working, spotlessbathroom
Restocked and chargesaccurately posted to bill
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Inspection Points in Services
Organization What is Inspected Standard
Bayfield
Community
Hospital
Billing
Pharmacy
Lab
Nurses
Admissions
Accurate, timely, and correct format
Prescription accuracy, inventory accuracy
Audit for lab-test accuracy
Charts immediately updated
Data entered correctly and completely
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Inspection Points in Services
Organization What is Inspected Standard
Hard Rock
Cafe
Busboy
Busboy
Waiter
Serves water and bread within
1 minute
Clears all entre items andcrumbs prior to desert
Knows and suggest specials
and desserts
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Inspection Points in Services
Organization What is Inspected Standard
Nordstroms
Department
Store
Display areas
Stockrooms
Salesclerks
Attractive, well-organized,
stocked, good lighting
Rotation of goods, organized,clean
Neat, courteous, very
knowledgeable
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Inspection Points in Services
BankTeller
stations
Loan
accounts
Checking
accounts
Shortages, courtesy,
speed, accuracy
Collateral, proper credit checks,
rates, terms of loans, default
rates, loan rates
Accuracy, speed of entry,
rate of overdraws
Organization Some Points ofInspection Issues to Consider
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Inspection Points in Services
Retail storeStockrooms
Display areas
Sales counters
Clean, uncluttered, organized,
level of stockouts, amply
supply, rotation of goods
Attractive, well-organized,
stocked, visible goods, good
lighting
Neat, courteous knowledgeable
personnel; waiting time;
accuracy in credit checking and
sales entry
Organization Some Points ofInspection
Issues to Consider
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Inspection Points in Services
Restaurant
Kitchen
Cashier station
Dining areas
Clean, proper storage,
unadulterated food, health
regulations observed, well-organized
Speed, accuracy, appearance
Clean, comfortable,
regular monitoring by
personnel,
Organization Some Points ofInspection
Issues to Consider
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Service quality is more difficult to measure
than for goods
Service quality perceptions depend on
Expectations versus reality
Process and outcome
Types of service quality Normal: Routine service delivery
Exceptional: How problems are handled
TQM In Services
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Goods versus Services
Can be resold
Can be inventoried
Some aspects ofquality measurable
Selling is distinct
from production
Reselling unusual
Difficult to
inventory
Quality difficult to
measure
Selling is part ofservice
Good Service
d d
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Goods versus Services - continued
Product istransportable
Site of facilityimportant for cost
Often easy toautomate
Revenue generatedprimarily fromtangible product
Provider, not productis transportable
Site of facilityimportant forcustomer contact
Often difficult toautomate
Revenue generatedprimarily fromintangible service.
Good Service
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Under-standing
Tangibles
Reliability
CommunicationCredibility
Security
Responsiveness
Competence
Courtesy
Access
1995 Corel Corp.
Service Quality Attributes
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Determinants of Service Quality
Reliability consistency and dependability Responsiveness willingness/readiness of
employees to provide service; timeliness
Competence possession of skills andknowledge required to perform service
Access approachability and ease of contact
Courtesy politeness, respect, consideration,friendliness of contact personnel
Determinants of Service Quality -
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Determinants of Service Quality
Continued
Communication keeping customers informed inlanguages they understand
Credibility trustworthiness, believability,
honesty Security freedom from danger, risk or doubt
Understanding/knowing the customer making
the effort to understands the customers needs Tangibles the physical evidence of the service
QUALITY CIRCLE
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QUALITY CIRCLE
A group of employees meeting regularly with a facilitator to solve work
related problems in their work area.
The members receive training in group planning , problem solving &
statistical quality control
INTERNATIONAL QUALITY STANDARDS
SIX SIGMA : The term is popularized by Motorola , Honeywell & General
Electric, has two meaning in TQM.In a statistical sense it describes aprocess , product , or service with an extremely high capability (99.9997%
accuracy )
A program to save time , improve quality & lower costs.
Six sigma is a comprehensive system a strategy , a discipline & a set of
tools for achieving & sustaining business success.