1. CHAPTER 1 THE MEANING OF QUALITY AND QUALITY IMPROVEMENT

2. QUALITY Quality can be defined in many ways:
Traditionally definition of quality is based on the viewpoint that:
“products and services must meet the requirement of those who use them”
“One or more characteristics that a product or service should possess”.
Quality means fitness for use

3. Understanding quality and its improvement has lead to business success , growth and enhanced competitive position
Applying quality measures has become an integral part of the business strategy

4. DIMENSIONS OF QUALITY QUALITY CAN BE EVALUATED IN MANY WAYS.
GARVIN IN HIS ARTICLE IN HARVARD BUSINESS REVIEW HAS DISCUSSED QUALITY IN TERMS OF EIGHT DIMENSIONS

5. DIMENSIONS OF QUALITY
PERFORMANCE --- WILL THE PRODUCT DO THE INTENDED JOB?--- software packages for PC
RELIABILITY –HOW OFTEN DOES THE PRODUCT FAIL OR NEED REPAIR?--- Automobiles
DURABILITY – HOW LONG DOES THE PRODUCT LAST ( service life)?---automobiles and major appliances

6. DIMENSIONS OF QUALITY
SERVICEABILITY – HOW EASY IT IS TO REPAIR THE PRODUCT TIMEWISE AND ECONOMICALLY?--- automobile and many types of service industry (correction in credit card bill)
AESTHETICS – WHAT DOES THE PRODUCT LOOK LIKE? – ITS STYLE, COLOR, PACKAGING, PHYSICAL CHRACTERISTICS--- soft drink beverage relied on their packaging

7. DIMENSIONS OF QUALITY
FEATURES – WHAT DOES THE PRODUCT DO i.e ADDED FEATURES?--- spreadsheet software having a statistical analysis feature also
PERCIEVED QUALITY – WHAT IS THE REPUTATION OF THE COMPANY OR ITS PRODUCT?—CUSTOMERS SOMETIMES RELY ON THE PAST REPUTATION OF THE COMPANY CONCERNING ITS QUALITY AND THIS REPUTATION IS DIRECTLY INFLUENCED BY FAILURES OF THE PRODUCT THAT ARE HIGHLY VISIBLE TO THE CUSTOMERS.

8. DIMENSIONS OF QUALITY
OTHER THAN THAT THE TREATMENT OF THE CUSTOMER WHEN THE QUALITY RELATED PROBLEM IS REPORTED IS ALSO IMPORTANT.
CONFORMANCE TO STANDARD—IS THE PRODUCT MADE EXACTLY AS THE DESIGNER INTENDED?--- how well does the hood fit on a new car? Gap exactly the same on all sides.

9. DIMENSIONS OF QUALITY OPERATIONALIZING THE DIMENSIONS OF QUALITY
Dimensions must be operationalized into measures or metric which is measurable.
Take an example of a LASER PRINTER:
Performance –
Pages per minute
Print density
Features
Multiple paper tray
Color capability
Number of copies per cartridge

10. DIMENSIONS OF QUALITY Reliability Conformance- Durability
Mean time between failures
Conformance-
Crispness of print relative to competitors
Durability
Estimated time to obsolescence
Expected life of major components e.g. cartridge

11. DIMENSIONS OF QUALITY Serviceability Aesthetics Perceived quality
Availability of authorized repair centers
Aesthetics
Control button layout
Case style
Perceived quality
Brand name recognition
Ratings in “consumer report”
Ratings in hardware magazine

12. DIMENSIONS OF QUALITY
RELATIVE IMPORTANCE OF EACH DIMENSION COULD BE ESTABLISHED BY ASSIGNING EACH DIMENSION A WEIGHT BETWEEN 0 AND 1
DIMENSIONS WEIGHTS
Performance
Reliability
Durability
Serviceability
Aesthetics
Features
Perceived Quality 0.10
Conformance to Standards 0.10
TOTAL

13. Performance 0.30 8 2.40 7 2.10 Reliability 0.15 5 0.75 6 0.90
BRAND X
BRAND Y
DIMENSIONS
WEIGHTS
SCORE
WTD. SCORE
WTD.SCORE
Performance
0.30 8
2.40 7
2.10
Reliability
0.15 5
0.75 6
0.90
Durability 9
1.35
1.20
Serviceability
0.10
0.60

14. Aesthetics
0.05 7
0.30 9
0.45
Features 8 2
0.10
Perceived Quality
0.90 6
0.60
Conformance to Standards
0.80
0.70
TOTAL
1.00
7.45
6.95

15. CONCLUSION
Brand X is determined to be superior than Brand Y

16. DEFINITION OF QUALITY WHAT IS QUALITY ?
DEGREE OF EXCELLENCE, OR GENERAL EXCELLENCE
ATTRBUTES REQUIRED
RELATIVE NATURE, CHRACTER OR PROPERTY OF A PRODUCT

17. “QUALITY IS CONFORMANCE TO REQUIREMENT OR SPECFCATION” (CROSBY 1979)
“QUALITY IS FITNESS TO USE” (JURAN 1988)
QUALITY USUALLY MEANS:
CONSISTENCY AND CONFORMNG TO STANDARDS AND SPECIFCATION
A STATEMENT OF WHAT USER WANTS AND CAN AFFORD
WHAT THE PRODUCER CAN PROVIDE
PRODUCER AND USER SHOULD COOPERATE TO DECIDE AND DEFINE A REASONABLE AND ECONOMICAL SPECIFICATION OF QUALITY

18. This is a traditional definition
Quality of design
Quality of conformance

19. QUALITY OF DESIGN
THERE ARE DIFFERENT GRADES AND LEVELS OF QUALITY IN ALL GOODS AND SERVICES WHICH ARE INTENTIONAL
THESE DIFFERENCES REFERS TO QULAITY OF DESIGN
THEY INCLUDE:
TYPE OF MATERIALS USED
SPECIFCATION ON COMPONENTS
RELIABILITY THROUGH ENGINEERING DEVELOPMENT
For example: Automobiles have the same purpose but differ also in design

20. QUALITY OF CONFORMANCE
HOW WELL THE PRODUCT CONFORMS TO THE SPECIFCATION REQUIRED BY THE DESIGN
INFLUENCED BY THE FACTORS :
CHOICE OF MANUFACTURING PROCESS
TRAINING OF WORKFORCE
MOTIVATION OF WORKFORCE TO ACHIEVE QUALITY STANDARDS ETC.
THIS LEADS TO MUCH LESS FOCUS ON CUSTOMERS AND MORE ON ‘ CONFORMANCE –TO- SPECFICATIONS

21. This is a modern definition of quality.

22. THE TRANSMISSION EXAMPLE

23. TWO QUESTIONS ARISE:
Why Japanese do this?
REDUCED VARIABILITY MEANS LOWER COSTS AS IT LEADS TO FEWER REPAIRS , WARRANTY CLAIMS ETC
How can Japanese do this?-QUALITY IMPROVEMENT

24. The transmission example illustrates the utility of this definition
An equivalent definition is that quality improvement is the elimination of waste. This is useful in service or transactional businesses.

25. QUALITY ENGINEERING TERMINOLOGY
EVERY PRODUCT POSSESSES A NUMBER OF ELEMENTS THAT JOINTLY DESCRIBES ITS QUALITY. THESE PARAMETERS ARE KNOWN AS QUALITY CHRACTERISTICS, SOMETIMES ALSO KNOWN AS CTQ( CRITICAL TO QUALITY) CHARACTERISTICS.
THERE ARE DIFFERENT TYPES OF QUALITY CHRACTERISTICS
PHYSICAL: LENGTH, WEIGHT, VOLUME
SENSORY:TASTE, COLOR, APPEARANCE
TIME ORIENTATON: RELIABILITY, DURABILITY, SERVICEABLITY

26. QUALITY ENGINEERING TERMINOLOGY
QUALITY ENGINEERING: OPERATIONAL, MANUFACTURING, AND ENGINEERING ACTIVITIES COMPANES USE TO ENSURE THAT THE REQUIRED OR NOMINAL VALUES OF QUALITY CHARACTERISITCS ARE ACHIEVED AND VARIABILITY IS AT MINIMUM
VARIABILITY: DIFFERENCES IN QUALITY CHRACTERISTICS FROM UNIT TO UNIT OF THE PRODUCT
STATISTICAL METHODS ARE USED TO CONTROL VARIABILITY AND DATA IS CATEGORIZED IN VARIABLES AND ATTRIBUTES.

27. QUALITY CHARACTERISTICS ARE OFTEN EVALUATED RELATIVE TO SPECIFICATIONS
For manufactured product- specifications are desired measurements for quality characteristics on components and subassemblies that make up the product as well as the desired values of the quality characteristics in the final product.
For services- maximum amount of time to process an order or to provide a particular service
LOWER SPECIFICATION LIMIT
UPPER SPECIFICATION LIMIT
TARGET OR NOMINAL VALUES

28. NONCONFORMING PRODUCT-FAIL TO MEET ONE OR MORE SPECIFICATION – KNOWN AS NONCONFORMITY
DEFECT – A NONCONFORMITY WHICH AFFECT THE SAFE OR EFFECTIVE USE OF A PRODUCT – KNOWN AS DEFECTIVE

29. Statistical Methods STATISTICAL PROCESS CONTROL (SPC)
Control charts, plus other problem-solving tools
Useful in monitoring processes, reducing variability through elimination of assignable causes
On-line technique or in-process procedures
DESIGNED EXPERIMENTS (DOE or DOX)
Discovering the key factors that influence process performance
Process optimization
Off-line technique
ACCEPTANCE SAMPLING-inspection and testing of product on many stages of the production process

31. Control chart

32. EFFECTIVE MANAGEMENT OF QUALITY REQUIRES THE EXECUTION OF THREE ACTIVITIES:
QUALITY PLANNING-identifying customers and their needs, planning to make products which exceeds customer expectations, planning for quality improvement
QUALITY ASSURANCE- set of activities which ensure the maintenance of quality levels of product and services.
QUALITY CONTROL AND IMPROVEMENT- set of activities used to ensure that the products and services meet the requirements and are improved on the continuous basis.

33. Quality Philosophies and Management Strategies
Deming was asked by JUSE to lecture on statistical quality control to management
Japanese adopted many aspects of Deming’s management philosophy
Deming stressed “continual never-ending improvement”
Deming lectured widely in North America during the 1980s; he died 24 December 1993

34. Deming’s 14 Points
1. Create constancy of purpose toward improvement. No short term thinking.
2. Adopt a new philosophy, recognize that we are in a time of change, a new economic age
3. Cease reliance on mass inspection to improve quality. At that tme its too late. Process improvement not inspection
4. End the practice of awarding business to suppliers on the basis of price alone
5. Improve constantly and forever the system of production and service
6. Institute training for all employees.
7. Improve leadership, recognize that the aim of supervision is help people and equipment to do a better job
8. Drive out fear to ask questions, report problems etc
9. Break down barriers between departments

35. Note that the 14 points are about change
14 Points cont’d
10. Eliminate slogans and targets for the workforce such as zero defects
11. Eliminate work standards
12. Remove barriers that rob workers of the right to pride in the quality of their work
13. Institute a vigorous program of education and self-improvement
14. Put everyone to work to accomplish the transformation
Note that the 14 points are about change

36. Deming’s Deadly Diseases of management
Lack of constancy of purpose and improvement
Emphasis on short-term profits
Performance evaluation, merit rating, annual reviews results in short term performances
Mobility of management or job hopping. Thinking about careers rather than current job
Running a company on visible figures alone
Excessive medical costs for employee health care
Excessive costs of warrantees

37. The Juran Trilogy Planning Control Improvement
These three processes are interrelated
Control versus breakthrough
Project-by-project improvement

38. Total Quality Management (TQM)
TQM is “just another program”
Value engineering
Zero defects
“Quality is free”
Recipe for Ineffectiveness and maybe Disaster

39. Six Sigma
Six-Sigma (origins at Motorola in 1987, expanded impact during 1990s to present)
A process is an organized sequence of activities that produces an output that adds value to the organization
All work is performed in (interconnected) processes
Easy to see in some situations (manufacturing)
Harder in others
Any process can be improved
An organized approach to improvement is necessary

40. Dimensions of quality for service industry
Reliability
Responsibility
Tangibility
Empathy

41. Focus of Six Sigma is on Process Improvement with an Emphasis on Achieving Significant Business Impact
A process is an organized sequence of activities that produces an output that adds value to the organization
All work is performed in (interconnected) processes
Easy to see in some situations (manufacturing)
Harder in others
Any process can be improved
An organized approach to improvement is necessary
The process focus is essential to Six Sigma

43. Why “Quality Improvement” is Important: A Simple Example
A visit to a fast-food store: Hamburger (bun, meat, special sauce, cheese, pickle, onion, lettuce, tomato), fries, and drink.
This product has 10 components - is 99% good okay?

44. Link between Quality and Productivity
Rapid changes in technology has made it difficult to overcome the problems in designing and manufacturing products of superior quality.
Effective quality improvement is instrumental in increasing productivity and cost.

45. Example of manufacturing a mechanical component
Rate of production of part = 100 parts per day approx.
First pass yield rate (parts conformed) = 75%= 75% * 100 = 75 parts
Non-conformed parts = 25%= 25 parts
Fallout which can be reworked = 60% = 60% * 25 = 15 parts

46. Direct manufacturing cost of a part = $20
Reworked parts additional cost = $4
Total yield after reworking = parts
Total manufacturing cost per good part produced = $20(100) + $4 (15)/90 = $22.89

47. After implementation of a new statistical-process control procedure
Fallout rate = 5%
Reworked = 60%
Reworked parts = 3
Total yield per day = 98 parts
Cost/good part = $20(100) + $4 (3)/98 = $20.53

48. Quality Costs
Quality costs are those categories of costs that are associated with producing, identifying, avoiding, or repairing products that do not meet requirements.
These cost categories are
Prevention cost- costs associated with efforts in design and manufacturing that are directed towards the prevention of nonconformance….”make it right the first time”

49. Appraisal costs- costs associated with measuring, evaluating, or auditing products, components, and purchased items to ensure conformance to standards.
Internal failure costs- incurred when products, components, materials, and services fail to meet quality requirements, and this failure is discovered prior to delivery of the product to the customer.
External failure costs- when the product does not perform satisfactorily after it is delivered to the customer. This cost disappear if every product s conformed.

50. Quality Costs