Chapter 3 Tools and Techniques for Quality Design and Control University of Bahrain College of Business Administration MGT 433 Total Quality Management Chapter 3 Tools and Techniques for Quality Design and Control Dr. Mahnmood Asad MGT433

Outline Describe approaches to designing products and services Illustrate the application of a variety of tools for process improvement Discuss the importance of creativity and innovation for quality improvement Describe principles of statistical thinking as a basis for effective management Dr. Mahnmood Asad MGT433

Process Management Design Control Improvement the key activities necessary to achieve a high level of performance in key value creation and support processes, identifying opportunities for improving quality and operational performance, and, ultimately, customer satisfaction

AT&T Process Management Principles Process quality improvement focuses on the end-to-end process. The mind-set of quality is one of prevention and continuous improvement. Everyone manages a process at some level and is simultaneously a customer and a supplier. Customer needs drive process quality improvement. Corrective action focuses on removing the root cause of the problem rather than on treating its symptoms. Process simplification reduces opportunities for errors and rework. Process quality improvement results from a disciplined and structured application of the quality management principles Dr. Mahnmood Asad MGT433

Design for Six Sigma (DFSS) Concept development, in which product functionality is determined based upon customer requirements, technological capabilities, and economic realities. Design development, which focuses on product and process performance issues necessary to fulfill the product and service requirements in manufacturing or delivery. Design optimization, which seeks to minimize the impact of variation in production and use, creating a “robust” design. Design verification, which ensures that the capability of the production system meets the appropriate level of performance. Dr. Mahnmood Asad MGT433

Concept Engineering A focused process for discovering customer requirements and using them to select superior product or service concepts that meet those requirements Understanding the customer’s environment Converting understanding into requirements Operational zing what has been learned Concept generation Concept selection Dr. Mahnmood Asad MGT433

Quality Function Deployment A process of translating customer requirements into technical requirements during product development and production. QFD benefits companies through improved communication and teamwork between all constituencies in the value chain, such as between marketing and design, between design and manufacturing, and between purchasing and suppliers Dr. Mahnmood Asad MGT433

House of Quality Interrelationships Customer requirement Technical requirements Voice of the customer Relationship matrix Technical requirement priorities Customer requirement Competitive evaluation Interrelationships Dr. Mahnmood Asad MGT433

Building the House of Quality Identify customer requirements. Identify technical requirements. Relate the customer requirements to the technical requirements. Conduct an evaluation of competing products or services. Evaluate technical requirements and develop targets. Determine which technical requirements to deploy in the remainder of the production/delivery process. Dr. Mahnmood Asad MGT433

Example Dr. Mahnmood Asad MGT433

Quality Function Deployment Process technical features deployment matrix Process Plan and QC charts Operating Instructions House of Quality Dr. Mahnmood Asad MGT433

DFMEA Design failure mode and effects analysis (DFMEA) – identification of all the ways in which a failure can occur, to estimate the effect and seriousness of the failure, and to recommend corrective design actions. Dr. Mahnmood Asad MGT433

DFMEA Specifications Failure modes Effect of failures on customers Severity, likelihood of occurrence, and detection rating Potential causes of failure Corrective actions or controls Dr. Mahnmood Asad MGT433

Design for Service Quality Outputs not as well defined as in manufacturing Higher interaction with customers Involve both internal and external activities Dr. Mahnmood Asad MGT433

Service Process Design Three basic design components: Physical facilities, processes and procedures Employee behavior Employee professional judgment Dr. Mahnmood Asad MGT433

Key Service Dimensions Customer contact and interaction Labor intensity Customization Dr. Mahnmood Asad MGT433

Process Design: Motorola Approach Identify the product or service: What work do I do? Identify the customer: Who is the work for? Identify the supplier: What do I need and from whom do I get it? Identify the process: What steps or tasks are performed? What are the inputs and outputs for each step? Mistake-proof the process: How can I eliminate or simplify tasks? What “poka-yoke” (i.e., mistake-proofing) devices can I use? Develop measurements and controls, and improvement goals: How do I evaluate the process? How can I improve further? Dr. Mahnmood Asad MGT433

Design for Agility Close customer relationships Empower employees Use effective technology Maintain close supplier and partner relationships Breakthrough improvement Dr. Mahnmood Asad MGT433

Poka-Yoke An approach for mistake-proofing processes using automatic devices or methods to avoid simple human or machine error, such as forgetfulness, misunderstanding, errors in identification, lack of experience, absentmindedness, delays, or malfunctions Dr. Mahnmood Asad MGT433

Two Levels of Mistake-Proofing Prediction, or recognizing that a defect is about to occur and providing a warning; and detection Recognizing that a defect has occurred and stopping the process Dr. Mahnmood Asad MGT433

Common Poka-Yoke Examples (from John Grout’s Poka-Yoke Web Page) Dr. Mahnmood Asad MGT433

Service Errors (1 of 2) Task errors include doing work incorrectly, in the wrong order, or too slowly, as well as doing work not requested Treatment errors arise in the contact between the server and the customer, such as lack of courteous behavior, and failure to acknowledge, listen, or react appropriately to the customer Tangible errors are those in physical elements of the service, such as unclean facilities, dirty uniforms, inappropriate temperature, and document errors Customer errors in preparation arise when customers do not bring necessary materials to the encounter, do not understand their role in the service transaction, or do not engage the correct service Dr. Mahnmood Asad MGT433

Service Errors (2 of 2) Customer errors during an encounter can be because of inattention, misunderstanding, or simply a memory lapse, and include failure to remember steps in the process or to follow instructions Customer errors at the resolution stage of a service encounter include failure to signal service inadequacies, learn from experience, adjust expectations, and execute appropriate post-encounter actions Dr. Mahnmood Asad MGT433

Control Control – the activity of ensuring conformance to requirements and taking corrective action when necessary to correct problems and maintain stable performance Dr. Mahnmood Asad MGT433

Components of Control Systems Any control system has three components: a standard or goal, a means of measuring accomplishment, and comparison of actual results with the standard, along with feedback to form the basis for corrective action. Dr. Mahnmood Asad MGT433

Statistical Thinking All work occurs in a system of interconnected processes Variation exists in all processes Understanding and reducing variation are the keys to success Dr. Mahnmood Asad MGT433

Problems Caused by Variation Variation increases unpredictability Variation reduces capacity utilization Variation contributes to a “bullwhip” effect Variation makes it difficult to find root causes Variation makes it difficult to detect potential problems early Dr. Mahnmood Asad MGT433

Statistical Process Control (SPC) A methodology for monitoring a process to identify special causes of variation and signal the need to take corrective action when appropriate SPC relies on control charts Dr. Mahnmood Asad MGT433

Control Chart Example Dr. Mahnmood Asad MGT433