Introduction

Total quality management (TQM) … is a philosophy that stresses three principles for achieving high levels of process performance and quality: Customer satisfaction Employee involvement Continuous improvement in performance Plan Do Check Act The Deming Wheel

Importance of Quality “The first job we have is to turn out quality merchandise that consumers will buy and keep on buying. If we produce it efficiently and economically, we will earn a profit, in which you will share.” - William Cooper Procter

Quality and Profitability Improved quality of design Higher perceived value Increased market share Higher prices Increased revenues Improved quality of conformance Lower manufacturing and service costs Higher profitability

Key Dimensions of Quality Performance – primary operating characteristics Features – “bells and whistles” Reliability – probability of operating for specific time and conditions of use Conformance – degree to which characteristics match standards Durability - amount of use before deterioration or replacement Serviceability – speed, courtesy, and competence of repair Aesthetics – look, feel, sound, taste, smell

Key Dimensions of Service Quality Reliability – ability to provide what was promised Assurance – knowledge and courtesy of employees and ability to convey trust Tangibles – physical facilities and appearance of personnel Empathy – degree of caring and individual attention Responsiveness – willingness to help customers and provide prompt service

Definitions of Quality Transcendent definition: excellence Product-based definition: quantities of product attributes User-based definition: fitness for intended use Value-based definition: quality vs. price Manufacturing-based definition: conformance to specifications

Quality is the Problem The problem can be in Inputs used to produce the product/service Material Information Who is doing the job Qualification How she/he is doing the job Monitoring/auditing procedures and tools The output from the job The services associated with the job

Three Levels of Quality Organizational level: meeting external customer requirements Process level: linking external and internal customer requirements Performer/job level: meeting internal customer requirements

Quality Planning … is a strategic activity that involves Identifying customers (external & internal), Identifying customer’s needs (listening to the voice of the customer), and Develop products/services that meets or exceeds customer expectation.

Quality Assurance … is the set of activities that ensures that the quality levels are properly maintained, and The supplier and customer quality related issues are properly resolved. Documentation of the quality system is an important component. It involves Policy, Procedures, Work instructions and specifications, and Records.

Quality Documentation Policy: What is to be done and why Procedures: The methods and personnel that will implement the policy Work instructions and specifications: Relate to product; department; tool; or machine Records: The way to document Provide history: how a unit was produced; customer complaints; corrective actions; …

Quality Control (QC) and Improvement QC: is the set of activities used to ensuring conformance to requirements and taking corrective action when necessary to correct problems Quality Improvement must be on a continuous basis Done on a project-by-project basis Projects must have significant business impacts Involve qualified team members

Sources of Variation in Processes Measurement Instruments Operators Methods Materials INPUTS PROCESS OUTPUTS Tools Human Inspection Performance Machines Environment

Variation Many sources of uncontrollable variation exist (common causes) Special (assignable) causes of variation can be recognized and controlled Failure to understand these differences can increase variation in a system

Cost of Quality … is the cost of NOT creating a quality product or service. Every time work is redone, the cost of quality increases. Examples include The reworking of a manufactured item. The retesting of an assembly. The rebuilding of a tool. The correction of a bank statement. The reprocessing of a loan operation The replacement of a food order in a restaurant.

Quality costs are the total of the cost incurred by Investing in the prevention of nonconformance to requirements Appraising a product or service for conformance to requirements Failing to meet requirements (internally and eternally)

Legal Aspects of Quality Product liability exposure Concept of strict liability Responsibility of both manufacturer and seller/distributor Advertising must be supported by valid data

Leaders in the Quality Revolution W. Edwards Deming Joseph M. Juran Philip B. Crosby Armand V. Feigenbaum Kaoru Ishikawa Genichi Taguchi

Philosophies and Frameworks Involvement of management System focus Planning and control Preventive Quality Statistical control of processes Continuous improvement Involvement of employees Awareness and training

Quality Systems and Standards ISO 9000 A generic set of standards governing documentation of a quality program ISO 14000 Documentation standards that require participating companies to keep track of their raw materials use and their generation, treatment, and disposal of hazardous wastes. The ISO certification process focuses heavily on quality assurance, without sufficient weight given to quality planning and quality control and improvement

ISO 9000:2000 Quality system standards adopted by International Organization for Standardization in 1987; revised in 1994 and 2000 Technical specifications and criteria to be used as rules, guidelines, or definitions of characteristics to ensure that materials, products, processes, and services are fit for their purpose.

Objectives of ISO Standards (1 of 2) Achieve, maintain, and continuously improve product quality Improve quality of operations to continually meet customers’ and stakeholders’ needs Provide confidence to internal management and other employees that quality requirements are being fulfilled

Objectives of ISO Standards (2 of 2) Provide confidence to customers and other stakeholders that quality requirements are being achieved Provide confidence that quality system requirements are fulfilled

Structure of ISO 9000 Standards 21 elements organized into four major sections: Management Responsibility Resource Management Product Realization Measurement, Analysis, and Improvement

ISO 9000:2000 Quality Management Principles Customer Focus Leadership Involvement of People Process Approach System Approach to Management Continual Improvement Factual Approach to Decision Making Mutually Beneficial Supplier Relationships

The Malcolm Baldrige National Quality Award (MBNQA) The MBNQA process is a valuable assessment tool

Six-Sigma Quality Ensuring that process variation is half the design tolerance (Cp = 2.0) while allowing the mean to shift as much as 1.5 standard deviations.

Six-Sigma Metrics Defects per unit (DPU) = number of defects discovered  number of units produced Defects per million opportunities (dpmo) = DPU  1,000,000  opportunities for error

k-Sigma Quality Levels Six sigma results in at most 3.4 defects per million opportunities

Six-Sigma Implementation Emphasize dpmo as a standard metric Provide extensive training Focus on on corporate sponsor support Create qualified process improvement experts Ensure identification of appropriate metrics Set stretch objectives

GE’s Six-Sigma Problem Solving Approach Define Measure Analyze Improve Control DMAIC

Define Define the Project Define the project's purpose and scope and get background on the process and customer Tools Brainstorming Affinity Diagram CTQ (Critical to Quality) Tree Project Selection Criteria SIPOC (Suppliers, Inputs, Process, Outcomes, Customers) High Level Flowchart Team Charter Team Communication Plan VOC (Voice of the Customer) Data Collection Plan

Measure Measure the Current Situation Focus the improvement effort by gathering information on the current situation Tools Data Collection Plan Flowcharts Check Sheets Cycle-Time Pareto Charts Run Charts and Finding Runs Control Chart

Analyze Analyze to Identify Causes Identify root causes and confirm them with data Tools Brainstorming Scatter Diagram 5 – Why’s Cause and Effect Diagram Tree Diagram

Improve Implement Solutions and Evaluate Results Develop, try out, and implement solutions that address root causes; use data to evaluate both the solutions and the plans used to carry them out Tools Brainstorming Commitment Planning Involvement Matrix Elevator Speech Force Field Analysis Control Chart FMEA Analysis From-to-Matrix Gantt Chart Losses and Gains Chart Pareto Prioritization Matrix Standard Practice Development Worksheet SWOT (Strength, Weakness, Opportunity, Threat) Analysis

Control Standardize and Make Future Plans Maintain the gains by standardizing work methods or processes; anticipate future improvements and preserve the lessons from this effort Tools Closure Checklist Control Charts Process Management Check Storyboard

Tools for Quality Improvement Elementary statistics Advanced statistics Product design and reliability Measurement Process control Process improvement Implementation and teamwork

The Seven QC Tools Flowcharts Check sheets Histograms Cause-and-effect diagrams Pareto diagrams Scatter diagrams Control charts

Control Chart Selection Quality Characteristic variable attribute defective defect no n>1? x and MR constant sampling unit? yes constant sample size? yes p or np no n>=10 or computer? x and R yes no no yes p-chart with variable sample size c u x and s