LEAN PRODUCTION AND QUALITY MANAGEMENT

WHAT IS QUALITY? The ability of a product or service to meet customer needs

IMPORTANCE OF QUALITY Improved Reputation/Image Increased Profitability Helps Gain a Competitive Edge

DIMENSIONS OF QUALITY Dimensions of Quality Performance Feature Reliability Conformance Durability Serviceability Aesthetics Perceived Quality

TECHNIQUES FOR IMPROVING QUALITY Quality Control and Quality Assurance Benchmarking ISO Quality Standards Outsourcing Quality Circles Total Quality Management

PERFORMANCE Refers to the primary operating characteristics of a product. Eg. Clarity of a cell phone call. Involves the use of measureable performance attributes so that different brands can be ranked objectively on individual aspects of performance.

FEATURES These are the characteristics and add ons to a product’s basic function. Eg. The camera on a phone. The features can also be measured on an objective basis

RELIABILITY Reflects the chances of a product malfunctioning or failing within a certain time period. Normally measured by the average length of time before a product fails or the average failure rate per item

CONFORMANCE The degree to which a product’s design and performance meet established standards. Normally measured by the defect rates in the factory and the number of service calls once the product is being used by customers.

DURABILITY Measure of product’s life in economic and technical terms. Can be measured by the amount of use a consumer gets from the product before it deteriorates.

SERVICEABILITY Speed, courtesy, effectiveness and ease of repair.

AESTHETICS This is a subjective dimension of quality. How a product looks, feels, tastes or smells is based on consumer judgement and is therefore based on their personal preference.

PERCEIVED QUALITY Many times, customers judge the quality of a product based on the firm’s brand image, reputation and advertising. These can have a direct impact on consumer buying behaviour.

QUALITY CONTROL VS QUALITY ASSURANCE The difference is that QA is process oriented and QC is product oriented. Testing, therefore is product oriented and thus is in the QC domain. Testing for quality isn't assuring quality, it's controlling it. This can ensure or lead to zero defects. Quality Assurance makes sure you are doing the right things, the right way. Setting quality standards can assist with quality assurance.

BENCHMARKS Selecting a demonstrated standard of performance that represents the very best performance for a process or activity. Identify the aspects of the business to be benchmarked Measure performance in these areas Identify the firms in the industry that are considered to be the best Use comparative data from the best firms to establish the main weaknesses in the business Set standards for improvement Change processes to achieve the standards set Re-measurement

ISO QUALITY STANDARDS ISO creates documents that provide requirements, specifications, guidelines or characteristics that can be used consistently to ensure that materials, products, processes and services are fit for their purpose. 

OUTSOURCING Outsourcing is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in house by the company's own employees and staff. 

QUALITY CIRCLES A group of employees meeting regularly with a facilitator to solve work related problems.

TOTAL QUALITY MANAGEMENT Management of an entire organization so that it excels in all aspects of products and services that are important to the customer. Kaizen- a Japanese philosophy that every aspect of an operation can be improved. The end goal is perfection which is never achieved but always sought. It therefore emphasizes continuous improvement.

DEMINGS 14 POINTS FOR IMPLEMENT QUALITY IMPROVEMENT Create consistency of purpose Lead to promote change Build quality into the product, stop depending on inspections to catch the problem Build long term relationships based on performance instead of awarding business based on price Continuously improve product quality and service Start training Emphasize leadership Drive out fear Break down barriers between departments Stop criticizing workers and ordering workers Support, help and improve Remove barriers to pride in work Institute a vigorous program of education and self improvement Put everybody in the company to work on the transformation

LEAN PRODUCTION An approach to management that focuses on cutting out waste, whilst ensuring quality. This approach can be applied to all aspects of a business – from design, through production to distribution. Quality will therefore have to be improved.

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