1. Introduction

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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.

11. 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.

12. 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; …

13. 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

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

15. 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

16. 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.

17. 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)

19. 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

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

21. 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

22. 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

23. 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.

24. 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

25. 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

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

27. 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

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

29. 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.

30. 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

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

32. 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

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

34. 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

35. 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

36. 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

37. 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

38. 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

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

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

42. 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