1. Project Quality Management Quality Theories

2. Evolution of Quality Management Nayyer Kazmi2

3. W. Edwards Deming: 1927 - 1940 Deming’s 14 points for management Use of statistics and sampling methods Influenced by Shewhart’s Plan/Do/Check/Act Deming Cycle for Improvement 85% of quality problems require management initiatives and 15% controlled by the workers Quality of raw materials, purchasing policies and procedures responsibility of management Processes to be placed under statistical analysis and control Nayyer Kazmi3

4. W. Edwards Deming: 1927 - 1940 Continuous refinement of processes rather than quotas Common cause variations inherited in processes – poor lots of raw material, poor product design, work conditions, equipment Special or assignable causes of variations – lack of knowledge by workers, workers trained in the use of statistical process control charts Nayyer Kazmi4

5. PDSA Details Plan – Evaluate current process – Collect procedures, data, identify problems – Develop an improvement plan, performance objectives Do – Implement the plan – trial basis Study – Collect data and evaluate against objectives Act – Communicate the results from trial – If successful, implement new process Nayyer Kazmi5

6. Plan-Do-Check-Act Cycle Nayyer Kazmi6

7. Dr. Joseph M Juran - 1954 10 Steps to quality Improvement (1958) Juran Trilogy : – Quality Improvement – Quality Planning – Quality Control Manufacturer's view of quality - adherence to specifications Customer view of quality – “Fitness for Use” Nayyer Kazmi7

8. Dr. Joseph M Juran - 1954 Five attributes of “Fitness for Use” – Quality of Design – Quality of conformance – Availability – Safety – Field Use Cost of Quality Nayyer Kazmi8

9. Dr. Joseph M Juran - 1954 Legal implications of quality – Criminal liability – Civil liability – Appropriate corporate actions – warranties Grades of Quality – Structural – Sensory – Time-oriented – Commercial – ethical Nayyer Kazmi9

10. Phillip B. Crosby 14 steps to quality improvement Conformance to requirements Quality comes from prevention Performance standard “zero defects” Quality is measured by the cost of nonconformance “Quality is Free” – 1979 Hidden cost of poor quality: – increase machine downtime – Customer delivery delays and losts – Increase warranty costs Nayyer Kazmi10

11. Quality Management – Historical Perspective Prior to World War I – Inspection – Sorting out the good items from the bad – Problem identification World War I to 1950 – Quality Control principles were emerging – Statistical and mathematical techniques – Sampling tables – Process control charts Nayyer Kazmi11

12. Quality Management – Historical Perspective 1950 – 1960 – Quality control evolved into Quality Assurance – Problem avoidance rather than problem detection – Cost of Quality – Zero Defect – Reliability engineering – Total Quality Control Nayyer Kazmi12

13. Quality Management – Historical Perspective Prior to the recession of 1979 – 1982 – Ford, GM and Chrysler were competitors rather than Japanese Prior to the recession of 1989 – 1994 – High-tech engineering companies never fully recognized Need for shortening product time Relationship between project management, total quality management and concurrent engineering Nayyer Kazmi13

14. Genichi Taguchi – after world war II Optimize the process of engineering experimentation Design of experiment Quality designed into the product and not inspected into it Quality - minimizing deviation from the target and immune to uncontrollable environmental factors Cost of quality – function of deviation from the standard Nayyer Kazmi14

15. Genichi Taguchi – after world war II Parameter design approach – Low cost or cost solution may be achieved by adjusting the levels and controlling the variation of other factors – Cost savings realized far exceed the cost of additional experiments needed to reduce variations Nayyer Kazmi15

16. Cake Baking Experiment Nayyer Kazmi16

17. Factors and Levels for a Pound Cake Experiment Nayyer Kazmi17

18. Taguchi Experiment Flow Diagram Nayyer Kazmi18

19. Quality Gurus Nayyer Kazmi 19

20. Strategic Quality Management Quality is defined by the customer Quality is linked with profitability on both the market and cost sides Quality has become a competitive weapon Quality is now an integral part of strategic planning process Quality requires an organization-wide commitment Nayyer Kazmi20

21. Critical Factors that can affect quality is market expectations Salability : the balance between quality and cost Produceability Social acceptability Operability Availability Reliability Maintainability Nayyer Kazmi21

22. Defining Quality – 5 Ways 1.Conformance to specifications  Does product/service meet targets and tolerances defined by designers? 2.Fitness for use  Evaluates performance for intended use 3.Value for price paid  Evaluation of usefulness vs. price paid 4.Support services  Quality of support after sale 5.Psychological  Ambiance, prestige, friendly staff Nayyer Kazmi22

23. Changing Views of Quality PASTPRESENT Quality is the responsibility of blue-collar workers and direct labor employees working on the floor Quality is everyone's responsibility, including white collar workers, the indirect labor force, and the overhead staff Quality defects should be hidden from the customers (and possibly management) Defects should be highlighted and brought to the surface for corrective action Quality problems lead to blame, faulty justification, and excuses Quality problems lead to cooperative solutions Corrections-to-quality problems should be accomplished with minimum documentation Documentation is essential for "lessons learned" so that mistakes are not repeated Increased quality will increase project costsImproved quality saves money and increases business Quality is internally focusedQuality is customer focused Quality occurs during project executionQuality occurs at project initiation and must be planned for within the project Nayyer Kazmi23

24. Manufacturing Quality vs. Service Quality Manufacturing quality focuses on tangible product features – Conformance, performance, reliability, features Service organizations produce intangible products that must be experienced – Quality often defined by perceptional factors like courtesy, friendliness, promptness, waiting time, consistency Nayyer Kazmi24

25. Cost of Quality – 4 Categories Early detection/prevention is less costly – (Maybe by a factor of 10) Nayyer Kazmi25 Source: Operations Management – An Integrated Approach Fourth Edition by Reid and Sanders