1000 words journal
Quality Management
John Wu, Ph.D.
Professor of Supply Chain and Transportation
CSU San Bernardino
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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
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Everyone talks about quality. What is it? And how does an organization ensure quality for their products and services?
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
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Quality is all about customer perceptions. It’s more important what customers think quality is, not just what the producers think. Are these all related to product/service itself or other CBP(customer benefit package) items? Are any dimensions/perceptions more important than others? What are your organization’s priorities for goods and services?
What does this tell you?
What does this tell you? The magazines are being used as a surrogate measure of quality of service? What is your thought after you have learned performance measurement and quality?
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
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These are the different aspects of quality. There may be factors beyond service provider’s control. For example, a crying baby sitting next to you on a long flight to Europe may affect your flight quality but it’s beyond the airline’s control.
Specs, Conformance, Fitness
Examples of specs.
Specs, Conformance, Fitness
Another example of specs with service elements added.
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
Do you have examples of a QA that includes everyone?
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)
More quality control tools. Pay special attention to Pareto chart as it has many applications in business and life.
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
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Quality is not free. It needs commitment and investment. These are just some cost items.
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
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Generally speaking, internal failures cost less in the long run, even though it seems expensive in the beginning. If you Google Ford Explorer recall and Toyota Lexus sudden acceleration, you will know.
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
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If you think of cost of quality is high, try not doing it. What’s the cost of a flu shot? $15? $20? What’s the cost of NOT getting one? What’s the cost of a bike helmet? What’s the cost of not using one?
Emblem in the back of car
This is an Infiniti J30. I owned a car similar to this many years ago. I bought it used, not knowing it had been rear ended and fixed. The emblem in the back of the car was glued back, upside down. I had not noticed until a friend of mine visited me from Japan and took pictures of my car because they didn’t have it in Japan. Things got interesting when he showed his friend in Nissan (who makes Infiniti)…
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His Nissan friend found that the emblem was placed upside down. This is a biggie for the Japanese. He was not in quality management or manufacturing or anything related to it. He was just a Nissan employee. But he started to email other people at Nissan, showing them the picture of my car and how the emblem was misplaced by the body shop mechanic in America.
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Two prongs, 1 small and 1 large, added
Original, no prongs
A few email exchanges later, the engineer at Nissan found a solution. They redesign the emblem with two prongs of different sizes then drilled two corresponding holes on the car. The emblem could only fit in one way. There was no way that it could be fitted wrong. Problem solved. And that’s my contribution to the million of Nissan and Infiniti cars running on the road with the correctly positioned emblems!
Talking about quality as everyone’s job! We talk about it while the Japanese do it!
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