JO8(2）###-20767676
• Quality management refers to systematic policies, methods, and procedures used to ensure that goods and services are designed, created, and delivered to meet customer expectations.
• Dr. Joseph Juran and Dr. W. Edwards Deming introduced quality to the Japanese after WWII, who then created a renewed interest in quality in the U.S.
• Quality is a relentless pursuit and many organizations adopt Six Sigma – a customer-focused and results-oriented quality tool for continuous improvement.
Quality Management
• Total Quality Management (TQM) refers to management methods used to enhance quality and productivity in business organizations.
• Statistical Quality Control (SQC) refers to the use of statistical methods in the monitoring and maintaining of the quality of products and services. A method referred to as statistical process control uses graphical displays (control charts) to determine whether a process should be continued or should be adjusted to achieve the desired quality. It is part of TQM.
TQM and SQC
Quality means different things to different people. It’s all about “customer perceptions”: • Perfection • Consistency • Speed of delivery • Compliance with policies and procedures • Providing a good usable product • Doing it right the first time • Delighting or pleasing customers • Total customer service and satisfaction
Understanding Quality
Understanding Quality: User Education
Understanding Quality: Measuring Tangibles
• Fitness for use is the ability of a good or service to meet customer needs. (Ziploc bags are air tight.)
• Quality of conformance is the ability to deliver output that conforms to design specifications, targets and tolerances . (This LED light bulb has 750 lumens and consumes 6 watts of power.)
• Service Quality is consistently meeting or exceeding customer expectations (external focus) and service delivery system performance criteria (internal focus) during all service encounters.
Quality of Goods and Services
Specs, Conformance, Fitness
Specs, Conformance, Fitness
The Best iPhone 12/13 Features How do you measure the new features below?
SERVQUAL: Reliability, Assurance, Tangibles, Empathy, Responsiveness (RATER)
Mystery shopper
Survey (during and after service encounter)
Customer Effort Score (CES)
Social media
Customer retention/loyalty
Service Quality Measurement
Quality Assurance
QA is part of the quality management program, focusing on the technical aspects. • Quality control (QC):
– inspection to ensure conformance to standards: consistency, usability, grade
– technical role to managerial role
• Total quality control (TQC): – zero defects – everyone’s job – quality at the source – Deming’s 14 principles
Quality Management Methods • ISO 9000 standards • Quality Circles • Taguchi methods (L=D2C) • Cause and effect diagrams • Pareto chart (80-20, ABC): wide applications of
this principle in everything we do. For example: 20% of players score 80% of points, 20% of customers bring 80% of revenues, etc.
• Statistical process control (SPC)
Cost of quality refers to the costs associated with designing better products, purchasing quality materials, ensuring high standard production process, and avoiding poor quality or subsequent results of it.
• Prevention costs prevent bad designs or nonconforming goods and services from being made and reaching the customer.
• Appraisal costs are costs of implementing quality control through measurement and analysis of data.
Cost of Quality: Prevention
• Internal-failure costs are costs incurred as a result of unsatisfactory quality that is found before delivery of good or service to the customer. (e.g. the video clip of the movie Red Violin, students failed before graduation, broken Oreo cookies in factory, etc.)
• External-failure costs are incurred after poor-quality goods or services reach the customer. (e.g. frequent recalls of cars, car seats, contaminated spinach, etc.)
Cost of Quality: Internal vs. External
There is a cost for quality management. Is there a cost for not having a quality management program?
Cost of doing something vs.
Cost of NOT doing something!
Cost of Quality: Do Nothing?
Cost of Doing Nothing
ISO 9000 Standards
It is a set of international standards on quality management and quality assurance developed to help companies effectively document the quality system elements. “ISO certified” means that an organization has developed, maintains and continuously improves its business processes.
Quality Circles
• A quality circle is for a group of workers who do similar work to get together to identify, analyze and solve work-related problems.
• Advantages of Quality Circles are improved communication, personal growth and development, increased individual power, enhanced decision-making skills, improved motivation, management awareness of employee concerns, and better quality products and processes.
Taguchi Methods • The Taguchi method involves reducing the variation
in a process through robust design of experiments. The overall objective of the method is to produce high quality product at low cost to the manufacturer.
• Philosophy: Quality should be designed into a product, not inspected into it.
• Quality is best achieved by minimizing the deviation from a target. It is not the larger the better (for example, agricultural yield), nor is it the smaller the better (for example, CO2 emissions), but the closer to the target the better (for example, interchangeable parts in an assembly, Subway foot- long sandwiches).
The Taguchi Loss Function
• It is a graph that shows how much it costs as your product varies from the target value.
• The goal is to minimize the Taguchi loss function.
Taguchi Methods Too much, one loses profit; too little, customers complain.
Pareto Analysis
Joseph Juran applied the Pareto Principle to management: 80% of consequences often came from 20% of the causes. Managers need to pay attention to the 20% causes to reap the most benefits of their efforts.
Pareto Example
Fix these!
QC Tool: Cause & Effect Analysis Cause & Effect Analysis (fish bone chart) is a diagram- based technique that helps you identify all of the likely causes of the problems you're facing.
QC Tool: Control Chart Control charts, or process-behavior charts, are a statistical process control tool used to determine if a manufacturing or business process is in a state of control or compliance.
Survivor Bias During World War II, American military personnel noticed that some parts of planes were hit by enemy fire more often than other parts. They analyzed the bullet holes in the returning planes and launched a program to have these areas reinforced so that they could withstand enemy fire better.
Study Successes or Failures? By studying the returned planes, one actually missed all the ones that did not return! Those were the ones that needed to be studied!
Tom Peters, In Search of Excellence: eight common attributes of 43 “excellent” companies.
Jim Collins, Good to Great: 11 outstanding performers out of 1435 companies.
Six Sigma Six Sigma is a method that provides organizations tools to improve the capability of their business processes. This increase in performance and decrease in process variation helps lead to defect reduction and improvement in profits, employee morale, and quality of products or services.
Six Sigma focuses on reducing process variation and enhancing process control.
Six Sigma in Practice Six Sigma got its start in manufacturing at Motorola in the 1980s, and later spread to companies like AlliedSignal, General Electric and Honeywell. If you control the processes, you can achieve consistent quality. Six Sigma means less than 3.4 defects per million.
Preventing Medical Mistakes
Discussion Questions Please research the following questions and provide evidence to support your answers. Everyone: Why would companies have quality programs even though they cost money to implement? Everyone: what can be done to systematically minimize medical mistakes? Reference to course materials, please.
Group Discussion Be sure your group is ready to lead and/or discuss the following question in class, with research or facts-based evidence. Expand on the cost of doing something vs. the cost of doing nothing and the survivor bias, are we prone to using factors that can be measured vs. factors that cannot? What are the perils of such bias in management? Any benefits? Use your line of work if possible and discuss ways that can help you become more comprehensive and unbiased in managing your operations.