Introduction TQM.pdf
- 2. Outline 2 What is Quality? Dimension of Quality. History of Quality Methodology Different Perspectives on Quality What is Quality Management? Deming’s Principles Costs related to quality Benefits/Drawbacks
- 3. What is Quality? 3 Conformance to specifications (According to British Defense Industries Quality Assurance Panel) Conformance to requirements (Philip Crosby) Meeting the (stated) requirements of the customer- now and in the future (Mike Robinson) “The degree to which a system, component, or process meets (1) specified requirements, and (2) customer or users needs or expectations”
- 4. Scientists and associations of Quality Quality definitions Guran definitions (Juran & Cryna,1993) Quality is fitness for use, the basic criterion for judging the quality product if a product is suitable for use or is not, regardless of the status and condition of the product. Crosby definitions (Ross, 2000) Quality is conformity to requirements; that means when more product specifications conform to the customer requirement; this product has a good quality. Edward Deming definition (Evans & Dean, 2003) Quality is a trend to satisfy consumer needs at present and in the future. American Society for Quality Control definitions (Goetsch & Davis, 2010) Quality is a group of goods and services able to meet the specific needs. International Organization for Standardization; ISO definitions (Alwan, 2005) Quality is meeting all features in the product to customer requirements. 4
- 5. Quality in different areas of society 5 Area Examples Airlines On-time, comfortable, low-cost service Health Care Correct diagnosis, minimum wait time, lower cost, security Food Services Good product, fast delivery, good environment Postal Services fast delivery, correct delivery, cost containment Communications Clearer, faster, cheaper service Consumer Products Properly made, defect-free, cost effective Insurance Payoff on time, reasonable cost Automotive Defect-free
- 6. History of Quality Methodology 6 Reach back into antiquity, especially into China, India, Greece and the Roman Empire : skilled crafstmanship. Industrial Revolution (18th century): need for more consistent products that are mass-produced and needed to be interchangeable. Rise of inspection after manufacturing completed and separate quality departments.
- 7. History of Quality Methodology 7 Science of modern quality methodology started by R. A. Fisher perfected scientific shortcuts for shifting through mountains of data to spot key cause-effect relationships to speed up development of crop growing methods. Statistical methods at Bell Laboratories: W. A. Shewhart transformed Fisher’s methods into quality control discipline for factories (inspired W.E. Deming and J. M. Juran); Control Charts developed by W. A. Shewhart; Acceptance sampling methodology developed by H. F. Dodge and H. G. Romig
- 8. History of Quality Methodology 8 World War II: Acceptance of statistical quality-control concepts in manufacturing industries (more sophisticated weapons demanded more careful production and reliability); The American Society for Quality Control formed (1946). Quality in Japan: W.E. Deming was invited to Japan to give lectures; G. Taguchi developed “Taguchi method” for scientific design of experiments; The Japanese Union of Scientists and Engineers (JUSE) established “Deming Price” (1951); The Quality Control Circle concept is introduced by K. Ishikawa (1960).
- 9. History of Quality Methodology 9 Quality awareness in U.S. manufacturing industry during 1980s: “Total Quality Management”; Quality control started to be used as a mangement tool. Malcolm Baldrige National Quality Award(1987) International Standard Organization’s (ISO) 9000 series of standards: in 1980s Western Europe began to use; interest increase in US industry in 1990s; Became widely accepted today: necessary requirement to world-wide distribution of product and a significant competitive advantage.
- 10. History of Quality Methodology Quality in service industries, government, health care, and education Current and future challenge: keep progress in quality management alive. To sum up: A gradualtransition Statistical Quality Control Quality Assurance Quality Management 10
- 11. Evolution of Quality Management. 11 Early 1900s Scientific management 1920s Statistical Process Control 1930s Acceptance sampling 1940s Military standards 1950s Deming & Juran in Japan 1960s Taguchi method and other tools 1970s Quality as "strategic"; major adoption in the US 1980s Lean, TQM, Teams 1990s Reengineering and Six Sigma 2000s Supply Chain Mgmt, Lean Six Sigma
- 12. 2. Features 3. Reliability 4. Conformance 5. Durability 6. Serviceability 7.Aesthetics 8. Perceived Quality 12 Dimensions of Quality -according to Garvin (1987) 1. Performance
- 13. 13 -according to Garvin (1987) 1. Performance: Will the product/service do the intended job? 2. Reliability: How often does the product/service fail? 3. Durability: How long does the product/service last? 4. Serviceability: How easy is it to repair the product / to solve the problems in service? Dimensions of Quality
- 14. 14 Dimensions of Quality -according to Garvin (1987) 5. Aesthetics: What does the product/service look/smell/sound/feel like? 6. Features: What does the product do/ service give? 7. Perceived Quality: What is the reputation of the company or its products/services? 8. Conformance to Standards: Is the product/service made exactly as the designer/standard intended?
- 15. Different Views of Quality that can Exist in the Same Firm Engineering Marketing Accounting A product engineer might associate quality with product design A marketing executive might associate quality with quick design time An accountant might associate quality with low product cost 15 Recognizing Different Perspectives on Quality
- 16. 16 An Engineering Perspective An Operations Perspective A Strategic Management Perspective A Marketing Perspective A Financial Perspective The Human Resources Perspective Differing Functional Perspectives on Quality
- 17. Idea Generation Preliminary Design Final Definition Product Design & Evaluation Implementation Design Life Cycle 17 Prototype Development Prototype Iterations Engineering Perspective on Quality
- 18. Operations Perspective on Quality-- The Systems View of Operation Management The Conversion Systems Model of Operation Management Planning Organizing Controlling Inputs Conversion Process Outputs Customer Customer Feedback 18 Process Control
- 19. Strategic Management Perspective on Quality A Generic Strategic Planning Process Firm Mission and Goals Strategic Options Conflict Politics and Change StrategicAlignment Between Org. Reward Systems Organizational Design Internal Analysis External Analysis Business Level Strategy Corporate Level Strategy Operational Subplans 19
- 20. Marketing Perspective on Quality A Marketing System Payment 20 Offering Offering Offering Payment Payment Intermediary Organization
- 21. Financial Perspective on Quality The Deming Value Chain Improve Quality Productivity Improves Capture the Market Provide Jobs and More Jobs Stay in Business Cost decrease 21
- 22. Financial Perspective on Quality Basic Economic Quality Level Cost Costs of Improving Quality Losses due to poor quality Total Quality Costs = Sum of Losses and Costs Optimum Quality Level. 22 Minimum Cost
- 23. Human Resource Perspective on Quality HRM versus TQHRM: Traditional HRM TQHRM Process Characteristics 23 Content Characteristics Unilateral role Centralization Pull Administrative Nomothetic Compartmentalized Worker-oriented Performance measures Job-based Consulting role Decentralization Release Developmental Pluralistic Holistic System-oriented Satisfaction measures Person-based
- 24. Quality Management 24 Quality Management System : The act of overseeing all activities and tasks needed to maintain a desired level of excellence. This includes creating and implementing quality planning and assurance, as well as quality control and quality improvement.
- 26. Quality Management Components 26 Quality Planning ◦ It identifies the standards and determines how to satisfy those standards. ◦ It lays out the roles and responsibilities, resources, procedures, and processes to be utilized for quality control and quality assurance. QualityAssurance ◦ It is the review to ensure aligning with the quality standards. ◦ Planned and systematic quality activities. ◦ Provide the confidence that the standards will be met.
- 27. 27 Quality Management Components Quality Control ◦ It addresses the assessment conducted during Quality Assurance for corrective actions. ◦ Measure specific results to determine that they match the standards. ◦ Use of Statistical Process Control (SPC) for monitoring a process to identify special causes of variation and signal the need to take corrective action when appropriate.
- 28. 28 By quality management, we mean all the activities that are intended to bring about the desired level of quality. By quality audit we mean the procedural controls that ensure participants are adequately following the required procedures. Quality Management Vs QualityAudit
- 29. Responsibilities/duties of quality control officer 29 Ensure a high level of internal and external customer service. Investigate (and correct) customer issues and complaints relating to quality. Supervise workers engaged in inspection and testing activities to ensure high productivity and high technical integrity. Develop and analyse statistical data specifications to determine standards and and product to establish quality and reliability expectancy of finished products.
- 30. Responsibilities/duties; cotd… 30 Coordinate objectives with production procedures in cooperation with other plant managers to maximize product reliability and minimize costs. Create, document and implement inspection criteria and procedures. Interpret quality control philosophy to key personnel within company. Provide and oversee inspection activity for product throughout production cycle.
- 31. Responsibilities/duties; cotd… 31 Apply total quality management tools and approaches to analytical and reporting processes. Interact with vendors to ensure quality of all purchased parts. Create and direct environmental test functions and applications. Maintain active role on internal Continuous Improvement teams. Design, develop and implement quality control training programs.
- 32. Deming’s system of thought/ profound knowledge The System of Profound Knowledge (SoPK) is the culmination of Dr. W. Edwards Deming’s lifelong work. It is an effective theory of management that provides a framework of thought and action for any leader wishing to transform and create a thriving organization, with the aim for everybody to win. By management appropriately applying the principles and practices of SoPK, a business can simultaneously reduce costs through reducing waste, rework, staff attrition and litigation, while increasing quality, customer loyalty, worker satisfaction and ultimately, profitability. 32
- 33. Four components of Deming’s system of thought. 33 Deming advocated that all managers need to have what he called a System of Profound Knowledge, consisting of four parts: 1. Appreciation of a system: understanding the overall processes involving suppliers, producers, and customers (or recipients) of goods and services. 2. Knowledge of variation: the range and causes of variation in quality, and use of statistical sampling in measurements; 3. Theory of knowledge: the concepts explaining knowledge and the limits of what can be known. 4. Knowledge of psychology: concepts of human nature.
- 34. 34 1. The problems facing manufacturers can be solved through cooperation, despite differences. 2. Marketing is not merely "sales," but the science of knowing what people, who buy your product repeatedly, think of that product and whether they will buy it again, and why. 3. In the initial stages of design, you must conduct market research, applying statistical techniques for experimental and planning and inspection of samples. 4. And you must perfect the manufacturing process. Deming’s Ideas to raise the economy
- 35. 1. 35 “Create Constancy of Purpose” Define the problems of today and the future Allocate resources for long-term planning Allocate resources for research and education Constantly improve design of product and service 2. “Adopt A NewPhilosophy” Quality costs less not more They call for major change Stop looking at your competition and look at your customer instead 3. “Cease Dependence On Inspection For Quality” Quality does not come from inspection Mass inspection is unreliable, costly, and ineffective Inspectors fail to agree with each other Inspection should be used to collect data for process control Deming’s 14 Principles.
- 36. 4. 36 “End Proactive Awarding Of Business Based On PriceAlone” Price alone has no meaning Change focus from lowest inital cost to lowest cost Work toward a single source and long term relationship Establish a mutual confidence and aid between purchaser and vendor 5. “Improve Every Process Constantly / Forever” Quality starts with the intent of management Teamwork in design is fundamental Forever continue to reduce waste and continue to improve Putting out fires is not improvement of the process 6. “InstituteTraining” Management must provide the setting where workers can be successful Management must remove the inhibitors to good work Management needs an appreciation of variation This is management’s new role Deming’s 14 Principles.
- 37. 7. Remove barriers to pride of workmanship Know the work they supervise Know the difference between special and common cause of variation The common denominator of fear Fear of knowledge Performance appraisals Management by fear or numbers 9. 37 Deming’s 14 Principles. Know your internal suppliers and customers Promote team work 10. “Eliminate Slogans, Exhortations AndTargets” They generate frustration and resentment Use posters that explain what management is doing to improve the work environment “Break Barriers Between StaffAreas” “Drive Out Fear” “Adopt And InstituteLeadership”
- 38. 38 Deming’s 14 Principles. 11. “Eliminate Numerical Quotas” They impede quality They reduce production The person’s job becomes meeting a quota 12. “Remove Barriers That Rob Pride Of Workmanship” Performance appraisal systems Production rates Financial management systems Allow people to take pride in their workmanship 13. “Institute Programs For Education And Self-Improvement” Commitment to lifelong employment Work with higher education needs Develop team building skills 14. “Put Everybody In The Company ToWork ForThis Transformation” Struggle over the 14 points Take pride in new philosophy
- 39. Deming’s Cycle A four-step problem-solving iterative technique used to improve business processes. The four steps are plan-do-check- act. The PDCA Cycle can be used to effect both major performance breakthroughs as well as small incremental improvements in projects and processes. Also known as the Deming wheel or Shewhart cycle. 39
- 40. PLAN: Establish the objectives and processes necessary to deliver results in accordance with the expected output (the target or goals) by establishing output expectations. DO: Implement the plan, execute the process, make the product. Collect data for charting and analysis in the following "CHECK" and "ACT" steps. 40
- 41. CHECK: Study the actual results (measured and collected in "DO" above) and compare against the expected results (targets or goals from the "PLAN") to ascertain any differences. Look for deviation in implementation from the plan and also look for the appropriateness and completeness of the plan to enable the execution. ACT: Request corrective actions on significant differences between actual and planned results. Analyze the differences to determine their root causes. Determine where to apply changes that will include improvement of the process or product. 41 Determine
- 42. 42 The "cost of quality" isn't the price of creating a quality product or service. It's the cost incurred for NOT creating a quality product or service. Every time rework is done, the cost of quality increases. Obvious examples include: ◦ The reworking of a manufactured item. ◦ The retesting of an assembly. ◦ The rebuilding of a tool. ◦ The correction of a bank statement. ◦ The reworking of a service, such as the reprocessing of a loan operation or the replacement of a food order in a restaurant. In short, any cost that would not have been expended if quality were perfect contributes to the cost of quality. Quality Cost / Cost of Quality
- 43. 43 According to Philip B. Crosby the cost of quality has two main components: 1. The cost of poor quality (or the cost of non- conformance). 2. The cost of good quality (or the cost of conformance) Classification of Quality Cost
- 44. 44 The cost of poor quality affects: ◦ Internal and external costs resulting from failing to meet requirements. The cost of good quality affects: ◦ Costs for investing in the prevention of non-conformance to requirements. ◦ Costs for appraising a product or service for conformance to requirements. Classification of Quality Cost
- 45. 45 Classification of Quality Cost
- 46. 46 Internal failure costs are costs that are caused by products or services not conforming to requirements or customer/user delivery of products and needs and are found before services to external customers. Examples include the costs for: ◦ Rework ◦ Delays ◦ Re-designing ◦ Shortages ◦ Failure analysis ◦ Re-testing ◦ Lack of flexibility and adaptability Internal Failure Costs
- 47. 47 External failure costs are costs that are caused by deficiencies found after delivery of products and services to external customers, which lead to customer dissatisfaction. Examples include the costs for: ◦ Complaints ◦ Repairing goods and redoing services ◦ Warranties ◦ Customers’bad will ◦ Losses due to sales reductions ◦ Environmental costs External Failure Costs lack
- 48. 48 Prevention costs are costs of all activities that are designed to prevent poor quality from arising in products or services. Examples include the costs for: ◦ Quality planning ◦ Supplier evaluation ◦ New product review ◦ Error proofing ◦ Capability evaluations ◦ Quality improvement team meetings ◦ Quality improvement projects ◦ Quality education and training Prevention Costs
- 49. 49 Appraisal costs are costs that occur because of the needs to control products and services to ensure a high quality level standards and in all stages, conformance to quality performance requirements. Examples include the costs for: ◦ Checking and testing purchased goods and services ◦ In-process and final inspection/test ◦ Product, process or service audits The total quality costs are then the sum of these costs. Appraisal Costs