MEM 650 Agenda - Week 1 Week 3 Assignments Homework - Ch 1 - 9 Administrative Confirm class roster Confirm meeting time Review requirements Attendance Participation Homework Presentations Discuss course objectives/approach Lecture/discussion Chapter 1 Quality Basics The Customer Week 3 Assignments Homework - Ch 1 - 9 Read - Ch 1 Presentations: “Organizing for Quality” MEM 650 Quality Control

Quality Basics Chapter One MEM 650 Quality Control

Defining Quality ASQ - “quality is a subjective term for which each person has his or her own definition” What’s your definition? MEM 650 Quality Control

Defining Quality In technical usage, quality can have two meanings: the characteristics of a product or service that bear on its ability to satisfy stated or implied needs, and a product or service free of deficiencies MEM 650 Quality Control

Defining Quality - “Gurus” Deming - “non-faulty systems” Out of the Crisis Juran - “fitness for use” Quality Control Handbook Crosby - “conformance to requirements” Quality is Free MEM 650 Quality Control

Defining Quality- Different Views Customer’s view (more subjective) the quality of the design (look, feel, function) product does what’s intended and lasts Producer’s view conformance to requirements (Crosby) costs of quality (prevention, scrap, warranty) increasing conformance raises profits Government’s view products should be safe not harmful to environment MEM 650 Quality Control

Stout’s View Quality = Performance Expectation MEM 650 Quality Control

Value-based Approach Manufacturing dimensions Service dimensions Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived quality Service dimensions Reliability Responsiveness Assurance Empathy Tangibles MEM 650 Quality Control

Our Textbook Definition Armand Feigenbaum - author: Total Quality Control (1961) “quality is a customer determination based on the customer’s actual experience with the product or service, measured against his or her requirements - stated or unstated, conscious or merely sensed, technically operational or entirely subjective - and always representing a moving target in a competitive market.” MEM 650 Quality Control

Shift to Quality Isolated Economies Global Economy Period of change from quantity to quality Focus on quality Focus on quantity Pre-World War II 1945 1990’s MEM 650 Quality Control

History of Quality Paradigms Customer-craft quality paradigm: – design and build each product for a particular customer. – producer knows the customer directly. Mass production and inspection quality paradigm: focus on designing and building products for mass consumption. larger volumes will reduce costs and increases profits. push products on the customer (limit choices). quality is maintained by inspecting and detecting bad products. TQM or “Customer Driven Quality” paradigm: potential customers determine what to design and build. higher quality will be obtained by preventing problems MEM 650 Quality Control

Need for a New Strategy Foreign markets have grown Import barriers and protection are not the answer. Consumers are offered more choices They have become more discriminating. Consumers are more sophisticated They demand new and better products. MEM 650 Quality Control

Why Quality Improvement? Global Competition Economic and political boundaries are slowly vanishing The 1950’s slogan “Built by Americans for Americans” is very far from reality in the 2000’s. MEM 650 Quality Control

Why Quality Improvement? “On the stroke of midnight on December 31, 1992, the United States will become the second-largest economy in the world for the first time in a century”. Quote from a 1990 Xerox quality conference. More than corporate profits are at risk; the challenge is to the American standard of living. MEM 650 Quality Control

Why Quality Improvement? It pays Less rework, fewer mistakes, fewer delays, and better use of time and materials In United States today, 15 to 20% of the production costs are incurred in finding and correcting mistakes. MEM 650 Quality Control

How Do Organizations Compete? Most common competitive measures: Quality (both real and perceived) Cost Delivery (lead time and accuracy) Other measures safety, employee morale, product development (time-to-market, innovative products) MEM 650 Quality Control

Contrasting Approaches Passive / Reactive Setting acceptable quality levels Inspecting to measure compliance Proactive / Preventive Design quality in products and processes Identify sources of variation (processes and materials) Monitor process performance MEM 650 Quality Control

The Quality Hierarchy Total Quality Management Quality Assurance Incorporates QA/QC activities into company-wide system aimed at satisfying the customer Total Quality Management Prevention SPC Actions to insure products or services conform to company requirements Quality Assurance Operational techniques to make inspection more efficient and to reduce the costs of quality. Quality Control Detection SQC Inspection Inspect products MEM 650 Quality Control