quality management & productivityyunus.hacettepe.edu.tr/~asbay/kmu310/index_dosyalar/lecture...
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Meryem ŞAHİN TÜTÜNCÜHacettepe University Department of Chemical Engineering
KMÜ 310
QUALITY MANAGEMENT & PRODUCTIVITY
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Meryem ŞAHİN TÜTÜNCÜ
Chemical Engineer (Hacettepe University Department of Chemical Engineering) Head of Quality Management System and Productivity Department to TÜBİTAK Experiences of Quality Management Systems, service management and
information security systems (CMMI, ISO 9001, ISO 27001, ISO 20000, AQAP-150, AQAP-160, AS 9100/9006, IEEE 12207, ITIL) for 21 year’s.
Experiences of Perception Survey design, implementation and analysis CMMI L-3 (TÜBİTAK Space Technologies Research Institute) and CMMI L-4
(TÜBİTAK Software and Data Management Institute) Process Improvement Projects as Project Manager in TÜBİTAK.
10 year’s experience in defense systems domain. 2 year’s experience in space domain. Management of CMMI Level-3 (Defence Company) Improvement Projects,
experience in CMMI Class A, Class B Appraisals as CMMI Level-3 SCAMPI A Appraisal Team Member, Ownership of CMMI processes - Product and Process Quality Assurance.
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What is Expectation? (Iterative)
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1 2 3
Iterating allows you
to move from vague
idea to realization
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What is Expectation? (Incremental)
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1 2 3
But, incrementing
calls for a fully
formed idea
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What is Expectation?
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Lecture OutlineChapter 1• Quality Concepts• History of Quality Methodology• Quality GurusChapter 2• Evolution of Quality• Quality Management• Deming’s Principles• Total Quality ManagementChapter 3
• Process Approach• Process Improvement• Tools and TechniquesChapter 4
• Quality and ProductivityChapter 5
• Cost of QualityChapter 6
• Quality Awards and Quality Standards6
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1st Edition, 1982 7
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OthersNicholas, J., 1998, Competitive Manufacturing Management, Irwin/McGraw Hill, USA
Kalite Yönetimi Kuram, İlkeler, Uygulamalar Prof. Dr. Hasan Şimşek Seçkin Yayıncılık, Mart 2010
Juran's Quality Handbook, Sixth Edition
Quality Management for Organizational Excellence, Goetsch, D. L. ve Davis, S. B., 2014, 7th Edition, Pearson, Great Britain.
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Chapter 1
What is Quality?
Meaning of Quality
Dimensions of Quality
History of Quality Methodology
Quality Gurus
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What is Quality?
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What does the word “quality” mean to you?
• Think about your past experiences staying at various hotels. Did you stay at a “quality” hotel? What about the experience made it a “quality” experience for you?
• Think about a product you bought. How can you define its “quality”?
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What does the word “quality” mean?
https://www.facebook.com/PorscheCentreWilloughby/videos/1126756607406845/
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What does the word “quality” mean?
https://www.youtube.com/watch?v=RxPZh4AnWyk
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What is Quality?
Aristoteles (Aristo) (BS 384– BS 322) Ancient Greek philosopher.
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What is Quality?
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What is Quality?
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What is Quality?• Conformance to specifications (British Defense Industries
Quality Assurance Panel)
• Conformance to requirements (Philip Crosby)
• Fitness for purpose or use (Juran)
• A predictable degree of uniformity and dependability, atlow cost and suited to the market (Edward Deming)
• Synonymous with customer needs and expectations(R J Mortiboys)
• Meeting the (stated) requirements of the customer- nowand in the future (Mike Robinson)
• The total composite product and service characteristicsof marketing, engineering, manufacturing andmaintenance through which the product and service inuse will meet the expectations by the customer (ArmandFeigenbaum)
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What is Quality?• “The degree to which a system, component, or process meets
(1) specified requirements, and
(2) customer or users needs or expectations” (IEEE)
• The totality of features and characteristics of a product orservice that bears on its ability to satisfy stated or impliedneeds” (ISO 8402)
• Degree to which a set of inherent characteristics fulfilsrequirements (ISO 9000:2015)
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Defining Quality
The totality of features and characteristics of a product or service that bears on its ability to
satisfy stated or implied needs
American Society for Quality
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Different Views
User-based: better performance, morefeatures
Manufacturing-based: conformance tostandards, making it right the first time
Product-based: specific and measurableattributes of the product
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Implications of Quality
1. Company reputation
Perception of new products
Employment practices
Supplier relations
2. Product liability
Reduce risk
3. Global implications
Improved ability to compete
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Key Dimensions of Quality
Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics
Perceived quality
Value
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Of the many meanings of the word “quality,” two are of critical importance to managing for quality:
1. “Quality” means those features of products which meet customer needs andthereby provide customer satisfaction. In this sense, the meaning of quality isoriented to income. The purpose of such higher quality is to provide greater customersatisfaction and, one hopes, to increase income.
However, providing more and/or better quality features usually requires an investment and hence usually involves increases in costs. Higher quality in this sense usually “costs more.”
2. “Quality” means freedom from deficiencies—freedom from errors that requiredoing work over again (rework) or that result in field failures, customerdissatisfaction, customer claims, and so on. In this sense, the meaning of quality isoriented to costs, and higher quality usually “costs less.”
Meaning of Quality
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Meaning of Quality
Webster’s Dictionary degree of excellence of a thing
American Society for Quality totality of features and characteristics that
satisfy needs
Producer’s and Consumer’s Perspective
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Meaning of Quality:Producer’s Perspective
Quality of Conformance
Making sure a product or service is produced according to design
if new tires do not conform to specifications, they wobble (tereddüt etmek/bocalamak)
if a hotel room is not clean when a guest checks in, the hotel is not functioning according to specifications of its design
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Meaning of Quality:Consumer’s Perspective
Fitness for use how well product or service
does what it is supposed to
Quality of design designing quality
characteristics into a product or service
A Mercedes and a Ford are equally “fit for use,” but with different design dimensions
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Meaning of Quality:A Final Perspective
Consumer’s and producer’s perspectives depend on each other
Consumer’s perspective: «PRICE»
Producer’s perspective : «COST»
Consumer’s view must dominate
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Fitness for
Consumer Use
Producer’s Perspective Consumer’s Perspective
Quality of Conformance
• Conformance to
specifications
• Cost
Quality of Design
• Quality characteristics
• Price
MarketingProduction
Meaning of Quality
Meaning of Quality
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Dimensions of Quality:Manufactured Products
Performance basic operating characteristics of a product; how well
a car is handled or its gas mileage
Features “extra” items added to basic features, such as a
stereo CD or a leather interior in a car
Reliabilityprobability that a product will operate properly
within an expected time frame; that is, a TV will work without repair for about seven years
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Conformancedegree to which a product meets pre–established
standards
Durabilityhow long product lasts before replacement
Serviceabilityease of getting repairs, speed of repairs, courtesy and
competence of repair person
Dimensions of Quality:Manufactured Products (cont.)
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Aestheticshow a product looks, feels, sounds, smells, or tastes
Safety assurance that customer will not suffer injury or
harm from a product; an especially important consideration for automobiles
Perceptions subjective perceptions based on brand name,
advertising, and the like
Dimensions of Quality:Manufactured Products (cont.)
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Understanding
Reliability / Consistency
CommunicationCredibility
Security
Responsiveness
Competence
Courtesy
Accessibility
Dimensions of Quality For Services
Completeness
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Dimensions of Quality For Services
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Dimensions of Quality: Service
Time and TimelinessHow long must a customer wait for service, and is it
completed on time? Is an overnight package delivered overnight?
Completeness Is everything customer asked for provided? Is a mail order from a catalogue company complete
when delivered?
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Dimensions of Quality: Service (cont.)
CourtesyHow are customers treated by employees?Are catalogue phone operators nice and are their voices
pleasant?
Consistency Is the same level of service provided to each customer
each time? Is your newspaper delivered on time every morning?
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Accessibility and convenienceHow easy is it to obtain service?Does a service representative answer you calls quickly?
Accuracy Is the service performed right every time? Is your bank or credit card statement correct every month?
ResponsivenessHow well does the company react to unusual situations?How well is a telephone operator able to respond to a
customer’s questions?
Dimensions of Quality: Service (cont.)
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Dimensions of Quality
1. PerformanceWill the product/service do the intended job?
2. Reliability
How often does the product/service fail?
3. Durability
How long does the product/service last?
4. Serviceability
How easy to repair the product / to solve the problems in service?
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Dimensions of Quality5. Aesthetics
What does the product/service look / smell / sound/feel like?
6. Features
What does the product do/ service give?
7. Perceived Quality
What is the reputation of the company or its products/services?
8. Conformance to Standards
Is the product/service made exactly as the designer/standard intended?
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Quality in different areas of society
Area Examples
Airlines On-time, comfortable, low-cost service
Health CareCorrect diagnosis, minimum wait time, lower cost, security
Food Services Good product, fast delivery, good environment
Postal Services fast delivery, correct delivery, cost containment
AcademiaProper preparation for future, on-time knowledge delivery
Consumer Products Properly made, defect-free, cost effective
Insurance Payoff on time, reasonable cost
Military Rapid deployment, decreased wages, no graft
Automotive Defect-free
Communications Clearer, faster, cheaper service40
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Why Quality is Important?
No quality, no salesNo sale, no profit
No profit, no jobs
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Importance of Quality
• Costs & market share
• Company’s reputation
• Product liability
• International implications
Increased
Profits
Lower Costs
Productivity
Rework/Scrap
Warranty
Market Gains
Reputation
Volume
Price
Improved
Quality
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History of Quality Methodology
• Reach back into antiquity, especially into China,India, Greece and the Roman Empire : skilledcrafstmanship.
• Industrial Revolution (18th century): need for moreconsistent products that are mass-produced andneeded to be interchangeable. Rise of inspectionafter manufacturing completed and separate qualitydepartments.
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History of Quality Methodology
• Science of modern quality methodology started by R.A. Fisher perfected scientific shortcuts for shiftingthrough mountains of data to spot key cause-effectrelationships to speed up development of cropgrowing methods.
• Statistical methods at Bell Laboratories: W. A.Shewhart transformed Fisher’s methods into qualitycontrol discipline for factories (inspired W.E. Demingand J. M. Juran); Control Charts developed by W. A.Shewhart; Acceptance sampling methodologydeveloped by H. F. Dodge and H. G. Romig
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History of Quality Methodology
• World War II: Acceptance of statistical quality-control concepts in manufacturing industries (moresophisticated weapons demanded more carefulproduction and reliability); The American Society forQuality Control formed (1946).
• Quality in Japan: W.E. Deming invited to Japan togive lectures; G. Taguchi developed “Taguchimethod” for scientific design of experiments; TheJapanese Union of Scientists and Engineers (JUSE)established “Deming Price” (1951); The QualityControl Circle concept is introduced by K. Ishikawa(1960).
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History of Quality Methodology
• Quality awareness in U.S. manufacturing industryduring 1980s: “Total Quality Management”; Qualitycontrol started to be used as a mangement tool.
• Malcolm Baldrige National Quality Award (1987)
• International Standard Organization’s (ISO) 9000series of standards: in 1980s Western Europe beganto use; interest increase in US industry in 1990s;Became widely accepted today: necessaryrequirement to world-wide distribution of productand a significant competitive advantage.
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History of Quality Methodology
• Quality in service industries, government, health care, and education
• Current and future challenge: keep progress in quality management alive
• To sum up: A gradual transition
Statistical Quality Control
Quality Assurance
Quality Management
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Quality GurusWalter Shewart
In 1920s, developed control charts Introduced the term “quality assurance”
W. Edwards DemingDeveloped courses during World War II to teach
statistical quality-control techniques to engineersand executives of companies that were militarysuppliers
After the war, began teaching statistical qualitycontrol to Japanese companies
Joseph M. Juran Followed Deming to Japan in 1954 Focused on strategic quality planning
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Armand V. Feigenbaum In 1951, introduced concepts of total quality control
and continuous quality improvement
Philip Crosby In 1979, emphasized that costs of poor quality far
outweigh the cost of preventing poor quality In 1984, defined absolutes of quality management—
conformance to requirements, prevention, and “zerodefects”
Kaoru IshikawaPromoted use of quality circlesDeveloped “fishbone” diagramEmphasized importance of internal customer
Quality Gurus (cont.)
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The Quality Gurus Edward Deming
1900-1993
1986
Quality is “uniformity and dependability”
Focus on SPC and statistical tools
“14 Points” for management
PDCA method
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The Quality Gurus Joseph Juran
1904 - 2008
1951
Quality is “fitness for use”
Pareto Principle
Cost of Quality
General management approach as well as statistics
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W. Edwards DEMINGThe Einstein of Quality
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Chapter 2
Evaluation of Quality
Deming’s Principles
Total Quality Management
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1. Step
Quality Control
Inspection
Poor quality consciousness
1920s
2. Step
Quality Assurance
Process Improvement
The participation of employees
1960s
3. Step
Quality Management
Process capability andproductivity
1980s
4. Step
Excellence
New cultural direction
2000s
TOPLAM KALİTE YÖNETİMİ
Evolution of Quality
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Evolution of Quality Control and Management
Quality control by inspection
Statistical quality control
Total quality control
Total quality management
Six sigma
ISO 9000 standard series
Scientific approaches such as statistical process control, total productive maintenance, quality function deployment
Adapted from: Park (2003)
1930 1950 1990
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Quality Management
Quality Management
Quality Planning Quality Assurance Quality Control
Criteria driven Prevention driven Inspection driven
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Quality Management Components
Quality Planning It identifies the standards and determines how to satisfy
those standards It lays out the roles and responsibilities, resources,
procedures, and processes to be utilized for quality controland quality assurance
Quality Assurance It is the review to ensure aligning with the quality
standards. An assessment will be provided herePlanned and systematic quality activitiesProvide the confidence that the standards will be met
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Quality Control It addresses the assessment conducted during Quality
Assurance for corrective actions
Measure specific results to determine that they match thestandards
Use of Statistical Process Control (SPC) : a methodology formonitoring a process to identify special causes of variationand signal the need to take corrective action whenappropriate
SPC relies on control charts
Quality Management Components
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Quality Planning
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Quality Control
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Quality Assurance
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History
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Quality of products
Reduction of cost
Reduction in time-to-market
Quality of services
Innovation
Environmental, social and
individual responsibility
Products
Processes
Services
Customers/stakeholders
Environment
Society
Change of Emphasis in Total Quality
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https://www.youtube.com/watch?v=mLRnqC69c9Q
https://www.youtube.com/watch?v=OXYZENDzvoc
https://www.youtube.com/watch?v=tDu47czfwiI
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https://www.youtube.com/watch?v=tsF-8u-V4j4
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As J.M. Juran and W.E. Deming have maintained since 1950’s
“At least 85% of an organization’s failures are thefault of management-controlled systems. Workerscan control fewer than 15% of the problems. Inquality leadership, the focus is on constant andrigorous improvement of every system, not onblaming individuals for problems.”
Source: P.R. Scholtes, Total Quality Management, Peter Scholtes, Inc., 1991, 1-12.
Continually Improving Processes and Systems
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Deming’s 14 Principles
1. “Create Constancy of Purpose” Define the problems of today and the future Allocate resources for long-term planning Allocate resources for research and education Constantly improve design of product and service
2. “Adopt A New Philosophy” Quality costs less not more Superstitious learning The call for major change Stop looking at your competition and look at your
customer instead
https://www.youtube.com/watch?v=gpBUZZnoZTI
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Deming’s 14 Principles
3. “Cease Dependence On Inspection For Quality” Quality does not come from inspection Mass inspection is unreliable, costly, and ineffective Inspectors fail to agree with each other Inspection should be used to collect data for process
control
4. “End Proactive Awarding Of Business Based On PriceAlone” Price alone has no meaning Change focus from lowest inital cost to lowest cost Work toward a single source and long term
relationship Establish a mutual confidence and aid between
purchaser and vendor
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Deming’s 14 Principles
5. “Improve Every Process Constantly / Forever” Quality starts qith the intend of management Teamwork in design is fundamental Forever continue to reduce waste and continue to
improve Putting out fires is not improvement of the process
6. “Institute Training” Management must provide the setting where
workers can be succesful Management must remove the inhibitors to good
work Management needs an appreciation of variation This is management’s new role
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Deming’s 14 Principles
7. “Adopt And Institute Leadership” Remove barriers to pride of workmanship Know the work they supervise Know the difference between special and common
cause of variation
8. “Drive Out Fear” The common denominator of fear Fear of knowledge Performance appraisals Management by fear or numbers
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Deming’s 14 Principles
9. “Break Barriers Between Staff Areas” Know your internal suppliers and customers Promote team work
10. “Eliminate Slogans, Exhortations And Targets” They generate frustration and resentment Use posters that explain what management is doing
to improve the work environment
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Deming’s 14 Principles
11. “Eliminate Numerical Quotas” They impede quality They reduce production The person’s job becomes meeting a quota
12. “Remove Barriers That Rob Pride Of Workmanship” Performance appraisal systems Production rates Financial management systems Allow people to take pride in their workmanship
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Deming’s 14 Principles
13. “Institute Programs For Education And Self Improvement” Commitment to lifelong employment Work with higher education needs Develop team building skills
14. “Put Everybody In The Company To Work For This Transformation” Struggle over the 14 points Take pride in new philosophy Include the critical mass of people in the change
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Deming’s Cycle
Act
A
P
D
C
Plan
Do
Check
A
P
D
C
Plan
Do
Check
A
P
D
C
What are we trying toaccomplish?
How will we know that achange is an improvement?
AIM
MEASURE
What change can we make thatwill result in improvement?
Selecting Change
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Deming Wheel: PDCA Cycle
1. PlanIdentify
problem and
develop plan
for
improvement.
2. DoImplement plan
on a test basis.
3. Study/CheckAssess plan; is it
working?
4. ActInstitutionalize
improvement;
continue cycle.
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Deming’s Plan-Do-Check-Act
"Continuous improvement is better than delayed perfection." - Mark Twain
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Total Quality Management
(TQM)
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Total Quality Management (TQM)
Started in the early 1980s, Deming/Juran philosophy as the focal point
Emphasis on widespread training, quality awareness
Training often turned over to HR function
Not enough emphasis on quality control and improvement tools, poor follow-through, no project-by-project implementation strategy
TQM has been unsuccessful in many companies
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The Juran Trilogy
1. Planning
2. Control
3. Improvement
These three processes are interrelated
Control versus breakthrough
Project-by-project improvement
Emphasizes a more strategic and planning oriented approach to quality than does Deming
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Total Quality Management1. The primary focus is on process improvement
2. Most of the variation in a process is due to the system and not the individual
3. Teamwork is an integral part of a quality management organization
4. Customer satisfaction is a primary organizational goal
5. Organizational transformation must occur in order to implement quality management
6. Fear must be removed from organizations
7. Higher quality costs less not more but it requires an investment in training
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Planned, aligned, customer focused efforts by all
Many employees work towards company objectives
All employees work towards their own/departmental objectives
There are a few employees trying to work towards their own/departmental objectives
* *
* *
4
2
3
1
Total Quality
Source: Ahmet Tunçay, General Secretary of Kalder Ankara Branch, 2007.
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Key Principles of TQM
• Devotion to customer satisfaction • Continuous decrease in undesirable variation • KAIZEN: continuous improvement • Teamwork • System and technology development for competition • Planning for future • Supplier improvement and participation • Leadership • Communication and mutual respect • Continuous education • Measurement and statistics • Employee involvement and empowerment • Scientific approach to problem solving
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TQM Organization
Lean
Cross-functional teams
Leadership
Facilitation / support
Employee involvement and empowerment
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Total Quality ManagementCommitment to quality throughout organization
Principles of TQM
Customer-oriented
Leadership
Strategic planning
Employee responsibility
Continuous improvement
Cooperation
Statistical methods
Training and education
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TQM and…
… Partnering a relationship between a company and its
supplier based on mutual quality standards
… Customers system must measure customer satisfaction
… Information Technology infrastructure of hardware, networks, and
software necessary to support a quality program
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Quality Improvement and Role of Employees
Participative problem solving
employees involved inquality management
every employee hasundergone extensivetraining to providequality service toDisney’s guests
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PresentationImplementation
Monitoring
SolutionProblem results
Problem AnalysisCause and effect
Data collection and
analysis
Problem
IdentificationList alternatives
Consensus
Brainstorming
TrainingGroup processes
Data collection
Problem analysis
Organization8-10 members
Same area
Supervisor/moderator
Quality Circle
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Strategic Implications of TQM
Strong leadership Goals, vision, or mission Operational plans and policies Mechanism for feedback
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TQM in Service Companies
Principles of TQM apply equally well to servicesand manufacturing
Services and manufacturing companies havesimilar inputs but different processes andoutputs
Services tend to be labor intensive Service defects are not always easy to measure
because service output is not usually a tangibleitem
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Quality Attributes in Service
Benchmark “best” level of quality
achievement one company or companies seek to achieve
Timelinesshow quickly a service is
provided
“quickest, friendliest, most
accurate service
available.”
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TQM
Encompasses entire organization, from supplier to customer
Stresses a commitment by management to have a continuing, companywide drive toward excellence in
all aspects of products and services that are important to the customer
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Seven Concepts of TQM
1. Continuous Improvement2. Six Sigma3. Employee Empowerment4. Benchmarking5. Just-in-time (JIT)6. Taguchi Concepts7. Knowledge of TQM Tools
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Continuous Improvement
"Continuous improvement is better than delayed perfection." - Mark Twain
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Continuous Improvement
Represents continual improvement of all processes
Involves all operations and work centers including suppliers and customers
People, Equipment, Materials, Procedures
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Quality Improvement
Traditional
Time
Qu
alit
y
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Continuous Improvement Philosophy
1. KAIZEN (KAI:Değişim/Gelişim ZEN:Daha İyiye): Japanese term for continuous improvement. step-by-step improvement of business processes.
2. PDCA: Plan-do-check-act as defined by Deming.
Plan Do
Act Check
3. Benchmarking : what do top performers do?
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Tools used for continuous improvement
1. Process flowchart
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Tools used for continuous improvement
2. Run Chart
Performance
Time
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Tools used for continuous improvement
3. Control Charts
Performance Metric
Time
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What is a Control Chart?
A control chart is a presentation of data in which thecontrol values are plotted against time
Control charts have a central line, upper and lowerwarning limits, and upper and lower action limits
Immediate visualisation of problems
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Control chart-illustration of construction
0 10 20 30 40 50 60 70 80 90 1000.8
0.9
1.0
1.1
1.2
1.3
X-chart Copper
Warning limitAction limit
Central line
Control value
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When to Take Action?
• One point plots outside the Action Limits
• Two consecutive points plots between the Warningand Action Limits
• Eight consecutive points plot on one side of theCenter Line
• Six points plots steadily increasing or decreasing
• When an unusual or nonrandom pattern is observed
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When to Take Action?
-4
-3
-2
-1
0
1
2
3
4
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Month
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Tools used for continuous improvement
4. Cause and effect diagram (fishbone)
Environment
Machine Man
Method Material
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Tools used for continuous improvement
5. Check sheet
Item A B C D E F G
-------
-------
-------
√ √ √
√ √
√ √
√
√
√ √
√ √ √
√
√
√
√
√ √
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Tools used for continuous improvement
6. Histogram
Frequency
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Tools used for continuous improvement
7. Pareto Analysis
A B C D E F
Fre
quen
cy
Per
centa
ge
50%
100%
0%
75%
25%10
20
30
40
50
60
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Six Sigma
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Six Sigma
Two meanings
Statistical definition of a process that is99.9997% capable, 3.4 defects per millionopportunities (DPMO)
A program designed to reduce defects, lowercosts, and improve customer satisfaction
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Two meanings
Statistical definition of a process that is 99.9997% capable, 3.4 defects per million opportunities (DPMO)
A program designed to reduce defects, lower costs, and improve customer satisfaction
Six Sigma
Mean
Lower limits Upper limits
3.4 defects/million
±6
2,700 defects/million
±3
Figure 6.4
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Six Sigma Management1. Define: The problem to be solved needs to be defined along with
the costs, benefits of the project, and the impact on the customer.2. Measure: Definitions for each Critical-To-Quality (CTQ)
characteristic must be developed. In addition, the measurementprocedure must be verified so that it is consistent over repeatedmeasurements.
3. Analyze: The root causes why defects can occur need to bedetermined along with the variables in the process that cause thedefects to occur. Data are collected to determine the underlyingvalue for each process variable, often using control charts.
4. Improve: The importance of each process variable on the CTQcharacteristic are studied using designed experiments. Theobjective is to determine the best level for each variable that can bemaintained in the long run.
5. Control: The objective is to maintain the gains that have been madewith a revised process in the long term by avoiding potentialproblems that can occur when a process is changed.
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Six Sigma
A process for developing and delivering nearperfect products and services
Measure of how much a process deviatesfrom perfection
3.4 defects per million opportunities
Champion
an executive responsible for project success
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Black Belts and Green Belts
Black Belt– project leader
Master Black Belt– a teacher and mentor for Black Belts
Green Belts– project team members
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3.4 DPMO
67,000 DPMO
cost = 25% of
sales
DEFINE CONTROLIMPROVEANALYZEMEASURE
Six Sigma: DMAIC
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Employee Empowerment
Getting employees involved in product and process improvements
85% of quality problems are due
to process and material
Techniques
Build communication networks that include employees
Develop open, supportive supervisors
Move responsibility to employees
Build a high-morale organization
Create formal team structures115
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Benchmarking
Selecting best practices to use as a standard for performance
1. Determine what to benchmark
2. Form a benchmark team
3. Identify benchmarking partners
4. Collect and analyze benchmarking information
5. Take action to match or exceed the benchmark
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Just-in-Time (JIT)
Relationship to quality:
JIT cuts the 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 scheduling including supply management
Production only when signaled
Allows reduced inventory levels
Inventory costs money and hides process and material problems
Encourages improved process and product quality
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Just-In-Time (JIT) Example
ScrapUnreliable Vendors
Capacity Imbalances
Work in process inventory level
(hides problems)
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Just-In-Time (JIT) ExampleReducing inventory reveals problems so they can be solved
ScrapUnreliable Vendors
Capacity Imbalances
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Taguchi’s Contribution
In the early 1980s, Prof. Genechi Taguchi introduced his approach to using experimentaldesign for;
1) Designing products or processes so that they are robust to environmental conditions.
2) Designing/developing products so that they are robust to component variation.
3) Minimizing variation around a target value.
By robust, we mean that the product or process performs consistently on target and is relatively insensitive to factors that are difficult to control.
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Taguchi Philosophy
3 stages in a product’s (or process’s)
development:
1) System design: uses scientific and
engineering principles to determine
the basic configuration.
2) Parameter design: specific values for the system parameters are determined.
3) Tolerance design: determine the best tolerances for the parameters.
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Taguchi Philosophy
Recommends: statistical experimental
design methods have to be used for
quality improvement, particularly
during parameter and tolerance
design phases.
Key component: reduce the variability around the target (nominal) value.
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Taguchi Concepts
Engineering and experimental design methods to improve product and process design
Identify key component and process variables affecting product variation
Taguchi Concepts
Quality robustness
Quality loss function
Target-oriented quality
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Quality Robustness
Ability to produce products uniformly in adverse manufacturing and environmental conditions
Remove the effects of adverse conditions
Small variations in materials and process do not destroy product quality
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Quality Loss Function Shows that costs increase as the product
moves away from what the customer wants
Costs include customer dissatisfaction, warranty and service, internal scrap and repair, and costs to society
Traditional conformance specifications are too simplistic
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Unacceptable
Poor
Good
Best
Fair
Quality Loss Function
High loss
Loss (to producing organization, customer, and society)
Low loss
Frequency
Lower Target Upper
Specification
Target-oriented quality yields more product in the “best” category
Target-oriented quality brings product toward the target value
Conformance-oriented quality keeps products within 3 standard deviations
Figure 6.5
L = D2Cwhere
L = loss to society
D = distance from target value
C = cost of deviation
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Use of Simple Scientific Tools for TQM
1. Pareto analysis
2. Flowcharts
3. Check sheets
4. Histograms
5. Scatter diagrams
6. Control charts
7. Fishbone diagram
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Chapter 3
• Process Approach
• Process Improvement
• Tools and Techniques
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Process Approach
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What is the meaning of Process?
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A process is a set of activities that interact to achieve a result.
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Statistical Methods for Quality
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What is the Process Approach?
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Risk-based thinking...
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PDCA...
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The Process Approach in ISO 9001:2015
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The Process Approach in ISO 9001:2015
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The Process Approach in ISO 9001:2015
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The Process Approach in ISO 9001:2015
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The Process Approach in ISO 9001:2015
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Tools & Techniques
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Quality Improvement Tools
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Quality Improvement Tools
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Brainstorming
Everyone participates
Go round robin and only one person speaks at a time
No discussion of ideas
There is no such thing as a dumb idea
Pass when necessary
Use “BIG” yellow sticky notes and write only 1 idea per sticky note
One person assigned as scribe
For a complicated issue, the session could last 30-45 minutes…or longer!
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Use a Nominal Group Technique
To focus brainstorming results
An internet search on
“Nominal Group Technique”
Will yield many examples and methods
to apply this technique
Nominal Group Technique
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Flow Diagrams
Build a common understanding of a whole process
Develop process thinking
Improve a process
Standardize a process
Why is flow diagramming helpful?
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Understand the root causes of a problemBEFORE you put a “solution” into place
Investigate the Root Causes
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Cause & Effect Diagrams
Identify and display many different possible causes for a problem
See the relationships between the many causes
Helps determine which data to collect
Why are cause and effect diagrams helpful?
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Cause & Effect Diagrams
Bones should not include solutions
Bones should not include lists of process steps
Bones include the possible causes
Better understand the current
situation…..
Now begin to develop a change.
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Clearly define the focused problem
Use brainstorming to identify possible causes
Sort causes into reasonable clusters (no less than 3, not more than 6)
Label the clusters (consider people, policies, procedures, materials if you have not already identified labels)
Develop and arrange bones in each cluster
Check the logical validity of each causal chain
How To Construct Cause & Effect Diagrams
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The 7 Basic Quality Tools for Process Improvement
http://asq.org/learn-about-quality/seven-basic-quality-tools/overview/overview.html
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Seven Quality Control Tools
Pareto Analysis Flow Chart Check Sheet Histogram
Scatter Diagram SPC Chart Cause-and-Effect
Diagram
Quality pros have many names for these seven basic tools ofquality, first emphasized by Kaoru Ishikawa, a professor ofengineering at Tokyo University and the father of “qualitycircles.”
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Cause-and-effect diagram (also called Ishikawa or fishbone chart):Identifies many possible causes for an effect or problem and sorts ideasinto useful categories.Check sheet: A structured, prepared form for collecting and analyzingdata; a generic tool that can be adapted for a wide variety of purposes.Control charts: Graphs used to study how a process changes over time.Histogram: The most commonly used graph for showing frequencydistributions, or how often each different value in a set of data occurs.Pareto chart: Shows on a bar graph which factors are more significant.Scatter diagram: Graphs pairs of numerical data, one variable on eachaxis, to look for a relationship.Stratification: A technique that separates data gathered from a variety ofsources so that patterns can be seen (some lists replace “stratification”with “flowchart” or “run chart”).
• Excerpted from Nancy R. Tague’s The Quality Toolbox, Second Edition, ASQQuality Press, 2005, page 15.
Seven Quality Control Tools
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Tools of TQM
Tools for Generating Ideas
Check sheets
Scatter diagrams
Cause-and-effect diagrams
Tools to Organize the Data
Pareto charts
Flowcharts
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Tools of TQM
Tools for Identifying Problems
Histogram
Statistical process control chart
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/
/
/ / /// /
// ///
// ////
///
//
/
Hour
Defect 1 2 3 4 5 6 7 8
A
B
C
/
/
//
/
Seven Tools of TQM
Check Sheet: An organized method of recording data
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Seven Tools of TQM
Scatter Diagram: A graph of the value of one variable vs. another variable
Absenteeism
Pro
du
cti
vit
y
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Seven Tools of TQM
Cause-and-Effect Diagram: A tool that identifies process elements (causes) that might effect an outcome
Cause
Materials Methods
Manpower Machinery
Effect
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Seven Tools of TQM
Pareto Chart: A graph to identify and plot problems or defects in descending order of frequency
Fre
qu
en
cy
Pe
rce
nt
A B C D E
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Seven Tools of TQM
Flowchart (Process Diagram): A chart that describes the steps in a process
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Seven Tools of TQM
Histogram: A distribution showing the frequency of occurrences of a variable
Distribution
Repair time (minutes)
Fre
qu
en
cy
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Seven Tools of TQM
Statistical Process Control Chart: A chart with time on the horizontal axis to plot values of a statistic
Upper control limit
Target value
Lower control limit
Time
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Cause-and-Effect Diagrams
Material(ball)
Method(shooting process)
Machine(hoop &
backboard)
Manpower(shooter)
Missed free-throws
Rim alignment
Rim size
Backboard stability
Rim height
Follow-through
Hand position
Aiming point
Bend knees
Balance
Size of ball
Lopsidedness
Grain/Feel (grip)
Air pressure
Training
Conditioning Motivation
Concentration
Consistency
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Pareto Charts
Number of
occurrences
Room svc Check-in Pool hours Minibar Misc.72% 16% 5% 4% 3%
12
4 3 2
54
– 100
– 93– 88
– 72
70 –
60 –
50 –
40 –
30 –
20 –
10 –
0 –
Fre
qu
en
cy (
nu
mb
er)
Causes and percent of the total
Cu
mu
lati
ve p
erc
en
t
Data for October
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Flow Charts
MRI Flowchart
1. Physician schedules MRI2. Patient taken to MRI3. Patient signs in4. Patient is prepped5. Technician carries out MRI6. Technician inspects film
7. If unsatisfactory, repeat8. Patient taken back to room9. MRI read by radiologist10. MRI report transferred to
physician11. Patient and physician discuss
11
10
20%
9
880%
1 2 3 4 5 6 7
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Statistical Process Control (SPC)
Uses statistics and control charts to tell when to take corrective action
Drives process improvement
Four key steps
Measure the process
When a change is indicated, find the assignable cause
Eliminate or incorporate the cause
Restart the revised process
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An SPC Chart
Upper control limit
Coach’s target value
Lower control limit
Game number
| | | | | | | | |
1 2 3 4 5 6 7 8 9
20%
10%
0%
Plots the percent of free throws missed
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Chapter 4
• Quality and Productivity
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Quality & Productivity
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Quality Control
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Significance Quality Control
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Methods of Quality Control
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Methods of Quality Control
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Productivity
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Dikkat
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Significance
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Measurement of Productivity
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Örnek
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Örnek
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Örnek
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Factors Influencing Productivity
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Factors Influencing Productivity
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Factors Influencing Productivity
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Factors Influencing Productivity
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Quality Management and Productivity
Productivity
– ratio of output to input
Yield: a measure of productivity
Yield=(total input)(% good units) + (total input)(1-%good units)(% reworked)
or
Y = (I) (%G) + (I) (1-%G) (%R)
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Yield=(total input)(% good units) + (total input)(1-%good units)(% reworked)
or
Y = (I) (%G) + (I) (1-%G) (%R)
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Product Cost
Y
RKIK rd ))(())(( Product Cost
where:
Kd = direct manufacturing cost per unit
I = input
Kr = rework cost per unit
R = reworked units
Y = yield
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Y
RKIK rd ))(())(( Product Cost
where:
Kd = direct
manufacturing cost per
unit
I = input
Kr = rework cost per unit
R = reworked units
Y = yield
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Computing ProductYield for Multistage Processes
Y = (I)(%g1)(%g2) … (%gn)
where:
I = input of items to the production process that will
result in finished products
gi = good-quality, work-in-process products at stage i
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Y = (I)(%g1)(%g2) … (%gn)
where:
I = input of items to the production process that will result in finished
products
gi = good-quality, work-in-process products at stage i
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Quality–Productivity Ratio
QPR
– productivity index that includes productivity and quality costs
QPR =
(non-defective units)
(input) (processing cost) + (defective units) (reworked cost)
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Örnek
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Chapter 5
• Cost of Quality
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Cost of Quality
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Product Cost
Y
RKIK rd ))(())(( Product Cost
where:
Kd = direct manufacturing cost per unit
I = input
Kr = rework cost per unit
R = reworked units
Y = yield
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The Challenger Disaster What Really Happened!
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The Cost of poor Quality !
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Chernobyl Disaster What Really Happened
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https://www.youtube.com/watch?v=BfKm0XXfiis
https://www.youtube.com/watch?v=DOWD0CBxE7w
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The Cost of poor Quality !
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The Cost of poor Quality !
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Cost of Quality
Cost of Achieving Good QualityPrevention costs
costs incurred during product design
Appraisal costscosts of measuring, testing, and analyzing
Cost of Poor Quality Internal failure costs
include scrap, rework, process failure, downtime, andprice reductions
External failure costs include complaints, returns, warranty claims, liability, and
lost sales
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Cost of Quality
1. Prevention costs
2. Appraisal costs
3. Internal failure costs
4. External failure costs
5. Opportunity costs
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Costs of Quality
Prevention costs - reducing the potential fordefects
Appraisal costs - evaluating products, parts, andservices
Internal failure - producing defective parts orservice before delivery
External costs - defects discovered afterdelivery
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External Failure
Internal Failure
Prevention
Costs of Quality
Appraisal
Total
Cost
Quality Improvement
Total Cost
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Prevention Costs Quality planning costs
costs of developing and implementing quality managementprogram
Product-design costs costs of designing products with quality characteristics
Process costs costs expended to make sure productive process conforms to
quality specifications
Training costs costs of developing and putting on quality training programs for
employees and management
Information costs costs of acquiring and maintaining data related to quality, and
development of reports on quality performance
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Appraisal Costs
Inspection and testing costs of testing and inspecting materials, parts, and product
at various stages and at the end of a process
Test equipment costs costs of maintaining equipment used in testing quality
characteristics of products
Operator costs costs of time spent by operators to gar data for testing
product quality, to make equipment adjustments to maintain quality, and to stop work to assess quality
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Internal Failure Costs Scrap costs
costs of poor-quality products that must be discarded, includinglabor, material, and indirect costs
Rework costs costs of fixing defective products to conform to quality
specifications
Process failure costs costs of determining why production process is producing poor-
quality products
Process downtime costs costs of shutting down productive process to fix problem
Price-downgrading costs costs of discounting poor-quality products—that is, selling products
as “seconds”
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External Failure Costs Customer complaint costs
costs of investigating and satisfactorily responding to a customer complaint resulting from a poor-quality product
Product return costs costs of handling and replacing poor-quality products returned by
customer
Warranty claims costs costs of complying with product warranties
Product liability costs litigation costs resulting from product liability and customer
injury
Lost sales costs costs incurred because customers are dissatisfied with poor
quality products and do not make additional purchases
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Measuring and Reporting Quality Costs
Index numbers ratios that measure quality costs against a base value
labor index– ratio of quality cost to labor hours
cost index– ratio of quality cost to manufacturing cost
sales index– ratio of quality cost to sales
production index– ratio of quality cost to units of final product
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Quality–Cost Relationship
Cost of qualityDifference between price of nonconformance
and conformance
Cost of doing things wrong20 to 35% of revenues
Cost of doing things right3 to 4% of revenues
Profitability In the long run, quality is free
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Quality-Related Costs
Prevention costs activities to keep unacceptable products from being
generated and to keep track of the process
Appraisal costs activities to maintain control of the system
Correction costs activities to correct conditions out of control, including
errors
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Prevention Costs Quality planning and engineering New products review Product/process design Process control Burn-in Training Quality data acquisition and analysis
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Appraisal Costs
Inspection and test of incoming material Product inspection and test Materials and services consumed Maintaining accuracy of test equipment
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Correction Costs
1. Internal Failure Costs
Scrap
Rework
Retest
Failure analysis
Downtime
Yield losses
Downgrading (off-specing)
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Correction Costs
2. External Failure Costs
Complaint adjustment
Returned product/material
Warranty charges
Liability costs
Indirect costs
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Chapter 6
• Quality Awards and Setting Quality Standards
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Quality Awards
• Deming Prize1951
• Malcolm Baldrige Quality Award 1988
• EFQM Quality Awards1992
• National Quality Award (based on EFQM model)
1993
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Baldrige Award
• Created in 1987 to stimulate growth of quality management in the United States
• Categories Leadership Information and analysis Strategic planningHuman resource FocusProcess managementBusiness resultsCustomer and market focus
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Other Awards for Quality
• National individual awards
Armand V. FeigenbaumMedal
Deming Medal
E. Jack Lancaster Medal
Edwards Medal
Shewart Medal
Ishikawa Medal
• International awards
European Quality Award
Canadian Quality Award
Australian Business Excellence Award
Deming Prize from Japan
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www.iso.org
International Organization for Standardization
www.iso.org
International Organization for Standardization
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Overview of ISO
9001 and ISO 14001by Roger Frost
e-mail [email protected]
Manager, Communication Services
2009-01-08
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ISO 9001 and ISO 14001 in brief
• ISO 9001 and ISO 14001 are among ISO's most well known standards ever.
• They are implemented by more than a millionorganizations in some 175 countries.
• ISO 9001 helps organizations to implement quality management.
• ISO 14001 helps organizations to implement environmental management.
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Quality Management
• ISO 9001 is for quality management.
• Quality refers to all those features of a product (or service) which are required by the customer.
• Quality management means what the organization does to
• ensure that its products or services satisfy the customer's quality requirements and
• comply with any regulations applicable to those products or services.
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Quality management (cont.)
• Quality management also means what the organization does to
• enhance customer satisfaction, and
• achieve continual improvement of its performance.
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Environmental management
• ISO 14001 is for environmental management. This means what the organization does to:
• minimize harmful effects on the environment caused by its activities,
• to conform to applicable regulatory requirements, and to
• achieve continual improvement of its environmental performance.
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Generic standards
ISO 9001 and ISO 14001 are generic standards.Generic means that the same standards can be applied:
• to any organization, large or small, whatever its product or service,
• in any sector of activity, and• whether it is a business enterprise, a public
administration, or a government department.
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Generic standards (cont.)
Generic also signifies that
• no matter what the organization's scope of activity
• if it wants to establish a quality management system, ISO 9001 gives the essential features
• or if it wants to establish an environmental management system, ISO 14001 gives the essential features.
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Management systems
• Management system means what the organization does to manage its processes, or activities in order that
• its products or services meet the organization’s objectives, such as
• satisfying the customer's quality requirements,
• complying to regulations, or
• meeting environmental objectives
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Management systems
• To be really efficient and effective, the organization can manage its way of doing things by systemizing it.
• Nothing important is left out.
• Everyone is clear about who is responsible for doing what, when, how, why and where.
• Management system standards provide the organization with an international, state-of-the-art model to follow.
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Management systems (cont.)
• Large organizations, or ones with complicated processes, could not function well without management systems.
• Companies in such fields as aerospace, automobiles, defence, or health care devices have been operating management systems for years.
• The ISO 9001 and ISO 14001 management system standards now make these successful practices available for all organizations.
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Processes, not products
• Both ISO 9001 and ISO 14001 concern the way an organization goes about its work.
• They are not product standards.
• They are not service standards.
• They are process standards.
• They can be used by product manufacturers and service providers.
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Processes, not products (cont.)
• Processes affect final products or services.
• ISO 9001 gives the requirements for what the organization must do to manage processes affecting quality of its products and services.
• ISO 14001 gives the requirements for what the organization must do to manage processes affecting the impact of its activities on the environment.
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Certification and registration
• Certification is known in some countries as registration.
• It means that an independent, external body has audited an organization's management system and verified that it conforms to the requirements specified in the standard (ISO 9001 or ISO 14001).
• ISO does not carry out certification and does not issue or approve certificates
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Accreditation
• Accreditation is like certification of the certification body.
• It means the formal approval by a specialized body -an accreditation body - that a certification body is competent to carry out ISO 9001 or ISO 14001certification in specified business sectors.
• Certificates issued by accredited certification bodies -and known as accredited certificates - may be perceived on the market as having increased credibility.
• ISO does not carry out or approve accreditations.
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Certification not a requirement
• Certification is not a requirement of ISO 9001 or ISO 14001.
• The organization can implement and benefit from an ISO 9001 or ISO 14001 system without having it certified.
• The organization can implement them for the internal benefits without spending money on a certification programme.
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Certification is a business decision
• Certification is a decision to be taken for business reasons:
• if it is a contractual, regulatory, or market requirement,
• If it meets customer preferences
• it is part of a risk management programme, or
• if it will motivate staff by setting a clear goal.
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ISO does not certify
• ISO does not carry out ISO 9001 or ISO 14001 certification.
• ISO does not issue certificates.• ISO does not accredit, approve or control the
certification bodies.• ISO develops standards and guides to encourage
good practice in accreditation and certification.
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The ISO 9000 family
• ISO 9001 is the standard that gives the requirementsfor a quality management system.
• ISO 9001:2008 is the latest, improved version.
• It is the only standard in the ISO 9000 family that canbe used for certification.
• There are 16 other standards in the family that canhelp an organization on specific aspects such as performance improvement, auditing, training…
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The ISO 14000 family
• ISO 14001 is the standard that gives the requirements for an environmental management system.
• ISO 14001:2004 is the latest, improved version.
• It is the only standard in the ISO 14000 family thatcan be used for certification.
• The ISO 14000 family includes 21 other standardsthat can help an organization specific aspects such as auditing, environmental labelling, life cycle analysis…
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Benefits of ISO 9001 and ISO 14001
• International, expert consensus on state-of-the-art practices for quality and environmental management
• Common language for dealing with customers and suppliers worldwide
• Increase efficiency and effectiveness
• Model for continual improvement
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Benefits of ISO 9001 and ISO 14001 (cont.)
• Model for satisfying customers and otherstakeholders
• Build quality into products and services from design onwards
• Address environmental concerns of customers and public, and comply with government regulations
• Integrate with global economy
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Benefits of ISO 9001 and ISO 14001 (cont.)
• Sustainable business
• Unifying base for industry sectors
• Qualify suppliers for global supply chains
• Technical support for regulations
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Benefits of ISO 9001 and ISO 14001 (cont.)
• Transfer of good practice to developing countries
• Tools for new economic players
• Regional integration
• Facilitate rise of services
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More information
• ISO 9000/ISO 14000 section on ISO Web site: www.iso.org
• ISO Management Systems magazinewww.iso.org/ims
• IMS Alerts free electronic newsletterwww.iso.org/imsalerts
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ISO 9000 and TQM
Satisfaction needs
FundamentalsISO 9000
Industrial /
technological
needs
Requirements for
competition
Integration
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EFQM Excellence Model
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EFQM Award Winners From Turkey
1996 Brisa
Netaş
1997 Beksa
1998 BEKO
2000 Arçelik
Vitra
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Common Characteristics of EFQM Award Winners
The way they look at reasons of doing business radically
Different approach to business performance measurement
Advanced use of quality tools
Breakthrough techniques
Superior leadership and policy deployment
Understanding how these produce superior business results
Continuous self-assessment / improvement
Fact based management on a defined set of performance indicators
Source: John Kelly, Manager, European Quality Journal, 1999