quality overview

8/7/2019 Quality Overview

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Quality ManagementQuality Management

Module:

Quality Overview

Kalpesh Ashar


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AgendaAgenda3

What is Quality ?

3 What is Grade ?

3 Dimensions of Quality

3 Determinants of Quality

3 Cost of Quality

3 TraditionalApproach to Quality Management

3 NewApproach to Quality Management

3 View of Quality Gurus

3 Process Capability


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What is Quality ?What is Quality ?

y It has several definitions

y Conformance to requirements

y Fitness for use

y Degree to which a product or service meets customerexpectations

y Quality is determined by customers


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Class DiscussionClass Discussion

Is the quality of McDonalds better than thatof a pav vada stall ?


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What is Grade ?What is Grade ?

y Why do we pay more for a BMW over a Maruti ?

y Both MarutiAlto & BMW 7 Series are considered to be

of high quality

y It is the Grade that is different

y BMW is of a higher grade than Maruti as it offers more

number of and sophisticated features inline withcustomer expectations for that Grade

y Plus, it gives you exclusivity


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Dimensions of QualityDimensions of Quality

yPerformance how well it performs the customers intended use

y Features special characteristics that appeal to customers

y Reliability likelihood of breakdown, malfunction, or need for repairs

y Serviceability speed, cost, and convenience of repairs

y Durability length of time before it needs to be repaired or replaced

y Appearance effects of human senses that give a psychological boost

y CustomerService treatment received before, during, and after the sale

y Safety how well it protects you

y Others


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Determinants of QualityDeterminants of Quality

y Quality ofDesign how well is the product or service designed to serveits intended customers

y Quality capability ofproduction process how good are theproduction processes to build such a product or service

y Quality of conformance how well is the production process in ensuringthat the product or service is produced within the defined boundaries

y Quality of customer service all customer contacts (touch points)should make the customer feel that he/she is attended to promptly and fairly

y Organization quality culture this is the most important of all.Acompany that truly believes in quality will product quality products and

services. It is a top-down approach.


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Class DiscussionClass Discussion

List the Dimensions & Determinants ofQuality for a 5-star hotel


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Cost of QualityCost of Quality


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Impact of Poor QualityImpact of Poor Quality

y Increased costs

y Low morale

y Low customer satisfaction

y Increased risk

y Rework

y Schedule delays


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TraditionalApproach to QualityTraditionalApproach to Quality

ManagementManagementy Inspection based

y Greater the inspection effort better the quality

y Spend most resources in post-production inspection

y This approach does not try to improve the productionprocess or quality mindset

y It is costly in the long-run and reduces employee moraleas they become defensive to inspection


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How much to inspect ?How much to inspect ?

AnnualCosts

Percent ofproductsinspected

Optimal Level of Inspection


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NewApproach to QualityNewApproach to Quality

ManagementManagement

y Quality should be built into the process

y Quality should be planned rather than inspected

y Everybody is in-charge of quality

y Do it right the first time


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Quality GurusQuality Gurus

y W. Edwards Deming

y Philip B. Crosby

y Armand V. Feigenbaum

y Kaoru Ishikawa

y Joseph M. Juran

y GenichiTaguchi


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Background of W. Edwards DemingBackground of W. Edwards Deming

y He is known as the father of quality control in Japan

y Was anAmerican

y American companies did not recognize his ideas

y He sold the idea that higher quality means lower cost

y He taught this to companies in Japan

y He made a 14-point charter

y He also introduced the PDCA cycle in quality management


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Demings 14 PointsDemings 14 Points

1. Create constancy ofpurpose toward product quality to achieveorganizational goals

2. Refuse to allow commonly acceptable levels ofpoor quality

3. Stop depending on inspection to achieve quality

4. Use fewer suppliers, selected based on quality and dependability

instead ofprice

5. Instill programs for continuous improvement of costs, quality,service, and productivity

6. Train all employees on quality concepts


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Demings 14 Points (cont)Demings 14 Points (cont)

7. Focus supervision on helpingpeople to do a better job

8. Eliminate fear, create trust, and encourage two-way

communications between workers and management

9. Eliminate barriers between departments and encourage joint

problem solving

10. Eliminate the use of numerical goals and slogans to make workerswork harder

11. Use statistical methods for continuous improvement of quality and

productivity instead of numerical quotas


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Demings PDCA Cycle (DemingDemings PDCA Cycle (Deming

Wheel)Wheel)


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Demings PDCA Cycle (DemingDemings PDCA Cycle (Deming

Wheel)Wheel)


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Contribution of CrosbyContribution of Crosby

y He said that Quality Is Free

y According to him the goal should be ofzerodefects

y According to him, costs ofpoor quality areunderstated

y Any amount of money spent on improvingquality is justified by increased profitability


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Contribution ofContribution of FeigenbaumFeigenbaum

y He introduced the concept of Total Quality Control(TQC)

y As per him responsibility of quality rests with the

persons who do the work

y Sold the concept ofquality at source

y Said that a worker should be given the authority tostopproduction whenever quality problem occurs


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Contribution of IshikawaContribution of Ishikawa

y Came up with Quality Circles

y Introduced Fishbone diagrams for Quality

Control

y Said that responsibility of quality should

not be with a few staffpersonnel, butwith everybody


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Contribution ofContribution of JuranJuran

y Popularized 80-20 rule (Paretosprinciple)

y Jurans Quality Trilogy


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Process CapabilityProcess Capability

y Comparison between the performance of a processagainst its specifications

y Has 2 limits LSL & USL

y A highly capable process has its spread well within the

limits

y A barely capable process is just within the limits

y An incapable process is outside the limits


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Process Capability Index (PCI)Process Capability Index (PCI)

yMathematical measurement ofprocess capability

y PCI = (UL LL) / 6

y (sigma) this is a measure of spread of the process also called as standard

deviation

y PCI >= 1 means process is capable

y PCI < 1 means process is not capable


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Process Capability Index (PCI)Process Capability Index (PCI)

y UL = 1.5

y LL = 1.0

y = 0.08

y Is the process capable ?

y PCI = (1.5 1.0) / 6*0.08 = 1.042

y Yes. The process is capable as PCI > 1. But it is barely capable.


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Thank You

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