Quality Management by Tom Lyon

The Purposes of Quality Management 1. United States business leaders have been challenged strongly by foreign competition 2. Our Nation's productivity growth has improved less than our competitors' over the last two decades. 3. Poor quality costs companies as much as 20 percent of sales revenues nationally. 4. Improved quality of goods and services goes hand in hand with improved productivity, lower costs, and increased profitability.

Why Manage Quality 5. Strategic planning for quality and quality improvement programs are essential to the well-being of our Nation's economy our ability to compete effectively in the global marketplace.\ Improved management understanding –the factory floor –worker involvement in quality –a greater emphasis on statistical process control can lead to dramatic improvements in the cost and quality of manufactured products.

Why Manage Quality 6. The concept of quality improvement is directly applicable to –small companies –large companies –service industries –manufacturing industries –the public sector –private enterprise. 7. Quality Improvement Programs –must be management-led and customer-oriented –may require fundamental changes in the way companies and agencies do business.

Quality Management Is a comprehensive philosophy and program to ingrain and promote quality in all aspects of a company’s operation

Achieving Quality techniques system philosophy

Dimensions Of Product Quality Performance Features Reliability Conformance Durability Serviceability Aesthetics Safety Other perceptions

Cost of Quality Prevention costs Appraisal costs Internal failure costs External failure costs

“Quality is Free” For the average company, the cost of quality is about 25% of total sales The cost of prevention is a fraction of the cost of fixing mistakes after they are made Investments in prevention can drastically reduce the total cost of quality

Three Areas to Improve Quality Quality of design Quality of conformance Quality of service

The Meaning of Quality Quality of ConformanceQuality of Design Producer’s Perspective Consumer’s Perspective Fitness for Consumer Use ProductionMarketing Conformance to specifications Cost Quality characteristics Price

Quality Of Conformance Ensuring product or service produced according to design –Depends on design performance materials training

Key Concepts of Quality Management Involvement of people Continuous improvement – based on objective data Focus on the customer

from The Principles Customer-Focused Organization Leadership Involvement of People Process Approach System Approach to Management Continual Improvement Factual Approach to Decision Making Mutually Beneficial Supplier Relationships

Quality Philosophers Walter Shewhart W. Edwards Deming Joseph Juran Philip Crosby Armand Feigenbaum Kaoru Ishikawa Genichi Taguchi

Deming’s 14 Points 1. Create constancy of purpose 2. Adopt philosophy of prevention 3. Cease mass inspection 4. Select a few suppliers based on quality 5. Constantly improve system and workers 6. Institute worker training 7. Instill leadership among supervisors

Deming’s 14 Points (cont’d) 8. Eliminate fear among employees 9. Eliminate barriers between departments 10. Eliminate slogans 11. Remove numerical quotas 12. Enhance worker pride 13. Institute vigorous training & education programs 14. Implement these 13 points

The Deming Wheel (or P-D-C-A Cycle) 1. Plan Identify problem Develop plan for improvement 2. Do Implement plan on test basis 3. Study / Check Is the plan working 4. Act Institutionalize improvement Continue cycle

Seven Quality Control Tools 1. Pareto analysis 2. Flowcharts 3. Check sheets 4. Histograms 5. Scatter diagrams 6. Control charts 7. Fishbone diagram

A Pareto Chart Percent from each cause Causes of poor quality Machine calibrations Defective parts Wrong dimensions Poor Design Operator errors Defective materials Surface abrasions (64) (13) (10) (6) (3) (2)

A Flowchart

Check Sheet COMPONENTS REPLACED BY LAB TIME PERIOD: 22 Feb to 27 Feb 1998 REPAIR TECHNICIAN: Bob TV SET MODEL 1013 Integrated Circuits |||| Capacitors |||| |||| |||| |||| |||| || Resistors || Transformers |||| Commands CRT |

Histogram

Scatter Diagram.

Control Chart Sample number Number of defects UCL = LCL = 1.99 c = 12.67

Fishbone Diagram Quality Problem MachinesMeasurementHuman ProcessEnvironmentMaterials Faulty testing equipment Incorrect specifications Improper methods Poor supervision Lack of concentration Inadequate training Out of adjustment Tooling problems Old/worn Defective from vendor Not to specifications Material- handling problems Deficiencies in product design Ineffective quality management Poor process design Inaccurate temperature control Dust and Dirt

From Quality Digest Quality Management Periodicals and Resources AQP Journal N/A Compliance Engineering Quality in Manufacturing N/A Quality Power Quality Magazine Total Quality Management Magazine Quality Digest

Quality Management Summary Managing Quality is a philosophy and a system Quality has many aspects Better quality and lower cost go together Quality can be achieved by people using problem solving tools.

Customer Focused Organization ISO 9001Beyond ISO 9001 Assure conformance to defined customer requirements. Ensure effective response to customer feedback. Understand current and future customer needs and expectations. Address customer loyalty. Measure customer satisfaction and act on it.

Leadership ISO 9001Beyond ISO 9001 Establish vision, direction and shared values. Set challenging goals and implement strategies to achieve them. Coach, facilitate, and empower people. Set and deploy policy and verifiable objectives. Provide resources and establish an environment for Quality.

Involvement of People ISO 9001Beyond ISO 9001 Establish competency levels, train and qualify personnel. Provide clear authority and responsibility. Create personal ownership of an organizations goals, by using it's peoples knowledge and experience, and through education. Achieve involvement in operational decisions and process improvement.

Process Approach ISO 9001Beyond ISO 9001 Establish, control and maintain documented processes. Explicitly identify internal and external customers and suppliers of processes. Focus on use of resources in process activities, leading to effective use of people, equipment, methods and materials.

System Approach to Management ISO 9001Beyond ISO 9001 Establish and maintain a suitable and effective documented Quality Management System. Identify a set of processes in a system. Understand their interdependencies. Align the processes with the organizations goals. Measure results against key objectives.

Continual Improvement ISO 9001Beyond ISO 9001 Through management review, internal/external audits and corrective/preventive actions. Continually improve the effectiveness of the Quality Management System. Set realistic and challenging improvement goals. Provide resources and give people the tools, opportunities and encouragement to contribute to continual improvement of processes.

Factual Approach to Decision Making ISO 9001Beyond ISO 9001 Management decisions & actions on the Quality Management Systems are based on the analysis of factual data and information gained from reports on audits, corrective action, nonconforming products, customer complaints and other resources. Decisions & actions are based on the analysis of data and information to maximize productivity and to minimize waste and rework. Effort is placed on minimizing cost, improving performance and market share through the use of suitable tools & technology

Mutually Beneficial Supplier Relationships ISO 9001Beyond ISO 9001 Adequately define and document requirements to be met by sub-contractors. Review and evaluate their performance to control the supply of quality products and services. Establish strategic alliances or partnerships, ensuring early involvement and participation. Defining the requirements for joint development and improvement of products, processes and systems. Develop mutual trust, respect and commitment to customer satisfaction and continual improvement.

Establishing a Quality Management Program What is Quality Management? What is quality? Cost of quality! Quality philosophers. Tools and techniques.