Quality Mgt.

Defining Quality : 

Defining Quality The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs ‘ Quality is consistent conformance to customers’ expectations. American Society for Quality

Different Views : 

Different Views User-based – better performance, more features Manufacturing-based – conformance to standards, making it right the first time Product-based – specific and measurable attributes of the product

Implications of Quality : 

Implications of Quality Company reputation Perception of new products Employment practices Supplier relations Product liability Reduce risk Global implications Improved ability to compete

Key Dimensions of Quality : 

Key Dimensions of Quality Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived quality Value

Quality control &Assurance : 

Quality control &Assurance Quality control- Establishment of standard Measure the actual quality Comparison of actual with set standard Finding out deviations Taking corrective actions Quality Assurance -Emphasis on finding and correcting defects before reaching market & to minimize the chances that output will be sub-standard

inspection : 

inspection It is the process of examining an object for checking it for verification of quality & quantity in any of its features. In simple words , it means sorting out good products from bad products. Objectives – To safeguard the quality of finished products To locate the defective items To reduce the risk of rejection by consumer To detect the sources of weakness.

Steps for inspection : 

Steps for inspection Parameters to be inspected must be carefully established Decision regarding when & where inspection must take place is to be taken Find out how many items are to be inspected i.e. 100% or sampling inspection. here the level of accuracy desired is taken into consideration. Sampling scheme for selection of items from the lots must be selected Specification limits for acceptance & rejection of items must be formulated

Acceptance sampling : 

Acceptance sampling Method of accepting & rejecting a lot on the basis of a sample. Advantages- Save of time & money Less staff required Problem of inspection fatigue is eliminated Results in quick inspection Disadvantages- Risk of making wrong inference about the quality of lot called producer’s risk( go error) or consumer’s risk( drop error) may be there.

Costs of Quality : 

Costs of Quality Costs of Quality

Costs of Quality : 

Costs of Quality Failure Costs - costs incurred by defective parts/products or faulty services. Internal Failure Costs Costs incurred to fix problems that are detected before the product/service is delivered to the customer. External Failure Costs All costs incurred to fix problems that are detected after the product/service is delivered to the customer.

Costs of Quality (continued) : 

Costs of Quality (continued) Appraisal Costs Costs of activities designed to ensure quality or uncover defects Prevention Costs All TQ training, TQ planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring

Statistical quality control : 

Statistical quality control Random disturbances responsible for deviation in quality of product are of 2 types- Chance causes-like sudden changes in temperature Assignable causes—like difference among workers performance, difference among machines. SQC is a tool to determine whether the variation is due to chance causes or due to assignable causes. If process is found to be statistical control then it indicates that the variation in quality is due to chance causes, otherwise the presence of assignable causes is detected & some corrective action is taken. control charts are the basis of SQC. Advantages- Ensures rapid & efficient inspection at min. cost It minimizes waste ,bias & judgment errors

Control charts : 

Control charts It is a chronological recording of data in a graphic form. Each measurement recorded is represented by a point on a graph. Thus, control charts are graphic comparison of process performance data to compute statistical control limits drawn as limits lines on the chart. Advantages- It gives indication whether the process is in control or not It ensures a particular level of quality It indicates warning limits It helps in setting of tolerance limits

Quality Certification : 

Quality Certification ISO 9000 Set of international standards on quality management and quality assurance, critical to international business ISO 14000 A set of international standards for assessing a company’s environmental performance

ISO 9000 Standards : 

ISO 9000 Standards Requirements System requirements Management Resource Realization Remedial

ISO 9000 Quality Management Principles : 

ISO 9000 Quality Management Principles A systems approach to management Continual improvement Factual approach to decision making Mutually beneficial supplier relationships Customer focus Leadership People involvement Process approach

ISO 14000 : 

ISO 14000 - A set of international standards for assessing a company’s environmental performance Standards in three major areas Management systems Operations Environmental systems ISO 14000

ISO 14000 : 

Management systems Systems development and integration of environmental responsibilities into business planning Operations Consumption of natural resources and energy Environmental systems Measuring, assessing and managing emissions, effluents, and other waste ISO 14000

Total Quality Management : 

Total Quality Management A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction. T Q M

The TQM Approach : 

Find out what the customer wants Design a product or service that meets or exceeds customer wants Design processes that facilitates doing the job right the first time Keep track of results Extend these concepts to suppliers The TQM Approach

Elements of TQM : 

Elements of TQM Continual improvement Competitive benchmarking Employee empowerment Team approach Decisions based on facts Knowledge of tools Supplier quality Champion Quality at the source Suppliers

Continuous Improvement : 

Continuous Improvement Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs. Kaizen: Japanese word for continuous improvement.

Quality at the Source : 

Quality at the Source The philosophy of making each worker responsible for the quality of his or her work.

Six Sigma Quality : 

Six Sigma Quality A philosophy and set of methods companies use to eliminate defects in their products and processes Seeks to reduce variation in the processes that lead to product defects The name, “six sigma” refers to the variation that exists within plus or minus three standard deviations of the process outputs

Six Sigma Quality (Continued) : 

Six Sigma Quality (Continued) Six Sigma allows managers to readily describe process performance using a common metric: Defects Per Million Opportunities (DPMO)

Six Sigma Quality (Continued) : 

Six Sigma Quality (Continued) Example of Defects Per Million Opportunities (DPMO) calculation. Suppose we observe 200 letters delivered incorrectly to the wrong addresses in a small city during a single day when a total of 200,000 letters were delivered. What is the DPMO in this situation? So, for every one million letters delivered this city’s postal managers can expect to have 1,000 letters incorrectly sent to the wrong address. Cost of Quality: What might that DPMO mean in terms of over-time employment to correct the errors?

Six Sigma Quality: DMAIC Cycle : 

Six Sigma Quality: DMAIC Cycle Define, Measure, Analyze, Improve, and Control (DMAIC) Developed by General Electric as a means of focusing effort on quality using a methodological approach Overall focus of the methodology is to understand and achieve what the customer wants A 6-sigma program seeks to reduce the variation in the processes that lead to these defects DMAIC consists of five steps….

Six Sigma Quality: DMAIC Cycle (Continued) : 

Six Sigma Quality: DMAIC Cycle (Continued) 1. Define (D) 2. Measure (M) 3. Analyze (A) 4. Improve (I) 5. control(C) Customers and their priorities Process and its performance Causes of defects Remove causes of defects Maintain quality

Example to illustrate the process… : 

Example to illustrate the process… We are the maker of this cereal. Consumer reports has just published an article that shows that we frequently have less than 15 ounces of cereal in a box. What should we do?

Step 1 - Define : 

Step 1 - Define What is the critical-to-quality characteristic? The CTQ (critical-to-quality) characteristic in this case is the weight of the cereal in the box.

2 - Measure : 

2 - Measure How would we measure to evaluate the extent of the problem? What are acceptable limits on this measure?

2 – Measure (continued) : 

2 – Measure (continued) Let’s assume that the government says that we must be within ± 5 percent of the weight advertised on the box. Upper Tolerance Limit = 16 + .05(16) = 16.8 ounces Lower Tolerance Limit = 16 – .05(16) = 15.2 ounces

2. Measure (continued) : 

2. Measure (continued) We go out and buy 1,000 boxes of cereal and find that they weight an average of 15.875 ounces with a standard deviation of .529 ounces. What percentage of boxes are outside the tolerance limits?

Slide 45: 

Upper Tolerance = 16.8 Lower Tolerance = 15.2 Process Mean = 15.875 Std. Dev. = .529 What percentage of boxes are defective (i.e. less than 15.2 oz)? Z = (x – Mean)/Std. Dev. = (15.2 – 15.875)/.529 = -1.276 NORMSDIST(Z) = NORMSDIST(-1.276) = .100978 Approximately, 10 percent of the boxes have less than 15.2 Ounces of cereal in them!

Step 3 - Analyze - How can we improve the capability of our cereal box filling process? : 

Step 3 - Analyze - How can we improve the capability of our cereal box filling process? Decrease Variation Center Process Increase Specifications

Step 4 – Improve – How good is good enough?Motorola’s “Six Sigma” : 

Step 4 – Improve – How good is good enough?Motorola’s “Six Sigma” 6s minimum from process center to nearest spec

Step 5 – Control : 

Step 5 – Control Statistical Process Control (SPC) Use data from the actual process Estimate distributions Look at capability - is good quality possible Statistically monitor the process over time

Motorola’s “Six Sigma” : 

Motorola’s “Six Sigma” Implies 2 ppB “bad” with no process shift With 1.5s shift in either direction from center (process will move), implies 3.4 ppm “bad”.

Analytical Tools for Six Sigma and Continuous Improvement: Flow Chart : 

Analytical Tools for Six Sigma and Continuous Improvement: Flow Chart No, Continue… Material Received from Supplier Inspect Material for Defects Defects found? Return to Supplier for Credit Yes Can be used to find quality problems

Analytical Tools for Six Sigma and Continuous Improvement: Run Chart : 

Analytical Tools for Six Sigma and Continuous Improvement: Run Chart Can be used to identify when equipment or processes are not behaving according to specifications

Analytical Tools for Six Sigma and Continuous Improvement: Pareto Analysis : 

Analytical Tools for Six Sigma and Continuous Improvement: Pareto Analysis Can be used to find when 80% of the problems may be attributed to 20% of the causes Assy. Instruct. Frequency Design Purch. Training 80%

Analytical Tools for Six Sigma and Continuous Improvement: Checksheet : 

Analytical Tools for Six Sigma and Continuous Improvement: Checksheet Billing Errors Wrong Account Wrong Amount A/R Errors Wrong Account Wrong Amount Monday Can be used to keep track of defects or used to make sure people collect data in a correct manner

Analytical Tools for Six Sigma and Continuous Improvement: Histogram : 

Analytical Tools for Six Sigma and Continuous Improvement: Histogram Number of Lots Data Ranges Defectsin lot 0 1 2 3 4 Can be used to identify the frequency of quality defect occurrence and display quality performance

Analytical Tools for Six Sigma and Continuous Improvement: Cause & Effect Diagram : 

Analytical Tools for Six Sigma and Continuous Improvement: Cause & Effect Diagram Possible causes: The results or effect Can be used to systematically track backwards to find a possible cause of a quality problem (or effect)

Analytical Tools for Six Sigma and Continuous Improvement: Control Charts : 

Analytical Tools for Six Sigma and Continuous Improvement: Control Charts Can be used to monitor ongoing production process quality and quality conformance to stated standards of quality

Other Six Sigma Tools : 

Other Six Sigma Tools Failure Mode and Effect Analysis (DMEA) is a structured approach to identify, estimate, prioritize, and evaluate risk of possible failures at each stage in the process Design of Experiments (DOE) a statistical test to determine cause-and-effect relationships between process variables and output

Six Sigma Roles and Responsibilities : 

Six Sigma Roles and Responsibilities Executive leaders must champion the process of improvement Corporation-wide training in Six Sigma concepts and tools Setting stretch objectives for improvement Continuous reinforcement and rewards

Six Sigma Team : 

Six Sigma Team Top management Program champions Master “black belts” “Black belts” “Green belts”

Obstacles to Implementing TQM : 

Lack of: Company-wide definition of quality Strategic plan for change Customer focus Real employee empowerment Strong strong motivation Time to devote to quality initiatives Leadership Obstacles to Implementing TQM

Obstacles to Implementing TQM : 

Poor inter-organizational communication View of quality as a “quick fix” Emphasis on short-term financial results Internal political and “turf” wars Obstacles to Implementing TQM

Criticisms of TQM : 

Criticisms of TQM Blind pursuit of TQM programs Programs may not be linked to strategies Quality-related decisions may not be tied to market performance Failure to carefully plan a program

Basic Steps in Problem Solving : 

Basic Steps in Problem Solving Define the problem and establish an improvement goal Collect data Analyze the problem Generate potential solutions Choose a solution Implement the solution Monitor the solution to see if it accomplishes the goal