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Defining Quality
Definition of quality is dependent on the people defining it
There is no single, universal definition of quality
“performance to standards”, “meeting customer’s needs”, “satisfying the customer”
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Defining Quality – 5 Definitions
1. Conformance to specifications
How well a product/service meet targets and tolerances defined by its 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
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Manufacturing Quality vs. Service Quality
Manufacturing focuses on tangible product features (can be seen, touched, directly managed)
Conformance
Performance
Reliability
Features
Durability
Serviceability
Service produce intangible products that must be experienced (cannot be seen or touched)
Intangible factors
Consistency
Responsiveness
Courtesy, friendliness
Promptness, timeliness
Atmosphere
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Cost of Quality
Quality affects all aspects of the organization
Quality has dramatic cost implications of:
Quality control costs (to achieve high quality)
Prevention costs
Appraisal costs
Quality failure costs (consequences of poor quality)
Internal failure costs
External failure costs
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Cost of Quality – 4 Categories
Early detection/prevention is less costly
(Could be by a factor of 10)
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Evolution of TQM – New Focus
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Reactive
Proactive
Quality Gurus
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TQM Philosophy
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TQM focuses on identifying quality problem root causes
Encompasses the entire organization
Involves the technical as well as people
Relies on seven basic concepts of
Customer focus
Continuous improvement
Employee empowerment
Use of quality tools
Product design
Process management
Managing supplier quality
TQM Philosophy Concepts
Focus on Customer
Identify and meet customer needs
Stay tuned to changing needs, e.g. fashion styles
Continuous Improvement
Continuous learning and problem solving, e.g. Kaizen, 6 sigma
Plan-Do-Study-Act (PDSA)
Benchmarking
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Ways of Improving Quality
Plan-Do-Study-Act Cycle (PDSA)
Also called the Deming Wheel after originator
Circular, never ending problem solving process or continuous improvement process
Seven Tools of Quality Control
Tools typically taught to problem solving teams
Quality Function Deployment (QFD)
Used to translate customer preferences to design
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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
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PDSA Details - cont'd
Cycle is repeated
After act phase, start planning and repeat process
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TQM Philosophy Concepts - cont'd
Employee Empowerment
Empower all employees; external and internal customers
Team Approach
Teams formed around processes; 8-10 people
Meet weekly to analyze and solve problems
Use of Quality Tools
Ongoing training on analysis, assessment, and correction, & implementation tools
Studying practices at “best in class” companies
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Seven Tools of Quality Control
Cause-and-Effect Diagrams
Flowcharts
Checklists
Control Charts
Scatter Diagrams
Pareto Analysis
Histograms
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1. Cause-and-Effect Diagrams
Called Fishbone Diagram
Focused on solving identified quality problem
Used by quality control teams; brainstorming
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2. Flowcharts
Schematic diagram
Used to document the detailed steps in a process
Often the first step in Process Re-Engineering
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3. Checklist
Simple data check-off sheet
Designed to identify type of quality problems at each work station; per shift, per machine, per operator
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4. Control Charts
The UCL and LCL are calculated limits used to show when a process is in or out of control i.e.; weight, width, or volume
Key tool used in Statistical Process Control - Chap. 6
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5. Scatter Diagrams
A graph showing how two variables are related to one another
The greater the degree of correlation, the more linear are the observations
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6. Pareto Analysis
Technique that displays the degree of importance for each element
Named after the 19th century Italian economist; often called the 80-20 Rule
Principle is that quality problems are the result of only a few problems i.e.; 80% of problems are caused by 20% of causes
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7. Histograms
A chart that shows the frequency distribution of observed values of a variable (i.e.; service time
at a bank drive-up window)
Displays whether the distribution is symmetrical (normal) or skewed
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Reliability – Critical to Quality
Reliability is the probability that the product, service or part will function as expected
No product is 100% certain to function properly
Reliability is a probability function dependent on sub-parts or components
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Reliability; Critical to Quality - cont’d
Reliability of a system is the product of component reliabilities
RS = (R1) (R2) (R3) . . . (Rn)
RS = reliability of the product or system
R1 = reliability of the components 1 thru n
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Reliability; Critical to Quality - cont’d
Increase reliability by placing components in parallel
Parallel components allow system to operate if one or the other fails
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RS = R1 + (R2* Probability of needing 2nd component)
Process Management & Managing Supplier Quality
Quality products come from quality sources
Quality must be built into the process
Quality at the source is the belief that it is better to uncover source of quality problems and correct it
TQM extends to quality of product from company’s suppliers
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Quality Awards and Standards
Malcolm Baldrige National Quality Award (MBNQA)
The Deming Prize
ISO 9000 Certification
ISO 14000 Standards
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MBNQA- What Is It?
Award named after the former Secretary of Commerce – Regan Administration
Intended to reward and stimulate quality initiatives
Given to no more that two companies in each of three categories; manufacturing, service, and small business
Past winners; Motorola Corp., Xerox, FedEx, 3M, IBM, Ritz-Carlton
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MBNQA- Criteria
| # | Categories | Points |
| 1 | Leadership | 120 |
| 2 | Strategic Planning | 85 |
| 3 | Customer and Market Focus | 85 |
| 4 | Information and Analysis | 90 |
| 5 | Human Resource Focus | 85 |
| 6 | Process Management | 85 |
| 7 | Business Results | 450 |
| TOTAL POINTS | 1000 |
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Criteria represents Quality belongs to everyone!
And criteria promotes “continuous improvement”.
The Deming Prize
Given by the Union of Japanese Scientists and Engineers since 1951
Named after W. Edwards Deming who worked to improve Japanese quality after WWII
Not open to foreign companies until 1984
1989 - Florida P & L was first US company winner
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ISO Standards
ISO 9000 Standards: (1987)
Certification developed by International Organization for Standardization
Set of internationally recognized quality standards
Companies are periodically audited & certified
ISO 9000:2000 QMS – Fundamentals and
Standards
ISO 9001:2000 QMS – Requirements
ISO 9004:2000 QMS - Guidelines for Performance
More than 40,000 companies have been certified
ISO 14000: (1987)
Focuses on a company’s environmental responsibility
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Why TQM Efforts Fail
Lack of a genuine quality culture
Lack of top management support and commitment
Over- and under-reliance on SPC methods
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