introduction to ind.eng.

7/30/2019 introduction to ind.eng.

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Overview of the QualityMovement


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Introduction to Industrial Engineering03.12.20072

Modern Importance of QualityModern Importance of QualityThe first job we have is to turn out quality

merchandise that consumers will buy andkeep on buying. If we produce it efficientlyand economically, we will earn a profit, inwhich you will share.

- William Cooper Procter


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Quality Assurance

...is any action directed toward providing

customers with goods and services ofappropriate quality.


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History of Quality Assurance(1 of 2)


Skilled craftsmanship during Middle Ages

Industrial Revolution: rise of inspection andseparate quality departments

Statistical methods at Bell SystemQuality control during World War II

Quality management in Japan


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Quality awareness in U.S. manufacturing

industry during 1980s: Total QualityManagement

Malcolm Baldrige National Quality Award

(1987)Quality in service industries, government,

health care, and educationCurrent and future challenge: keep

progress in quality management alive



6

Contemporary Influences on

QualityLearning systems

Adaptability and speed of change

Environmental sustainability

Globalization

Knowledge focus

Customization and differentiation

Shifting demographics



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Definitions of QualityDefinitions of Quality

Transcendent definition: excellence

Product-based definition: quantities ofproduct attributes

User-based definition: fitness forintended use

Value-based definition: quality vs. priceManufacturing-based definition:

conformance to specifications


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Quality PerspectivesQuality Perspectives

CustomerCustomer

DistributionDistribution

productsproducts

andand

servicesservices

needsneeds

transcendent &transcendent &

productproduct--basedbaseduseruser--basedbased

manufacturingmanufacturing--

basedbased

valuevalue--basedbased

MarketingMarketing

DesignDesign

ManufacturingManufacturing

Information flowInformation flowProduct flowProduct flow


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Customer-Driven QualityCustomer-Driven Quality

Meeting or exceeding customerexpectations

Customers can be...Consumers

External customers Internal customers


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Total Quality People-focused management system

Focus on increasing customer satisfactionand reducing costs

A systems approach that integratesorganizational functions and the entire supplychain

Stresses learning and adaptation to change Based on the scientific method


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Principles of Total QualityCustomer and stakeholder focus

Participation and teamwork

Process focus and continuousimprovement

...supported by an integrated organizationalinfrastructure, a set of management practices,

and a set of tools and techniques


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Customer and Stakeholder

Focus

Customer is principal judge of quality

Organizations must first understandcustomers needs and expectations in

order to meet and exceed them

Organizations must build relationships

with customersCustomers include employees and

society at large


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Participation and TeamworkEmployees know their jobs best and

therefore, how to improve themManagement must develop the systems

and procedures that foster participationand teamwork

Empowerment better serves customers,

and creates trust and motivationTeamwork and partnerships must exist

both horizontally and vertically


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Process Focus and Continuous

ImprovementA process is a sequence of

activities that is intended to achievesome result


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Continuous ImprovementEnhancing value through new products

and servicesReducing errors, defects, waste, and

costs

Increasing productivity andeffectiveness

Improving responsiveness and cycletime performance


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03.12.200716

Demings View of a

Production SystemSuppliers of

materials andequipment

Receipt and test

of materials

Design and

RedesignConsumerresearch

A

B

CD

Production, assemblyinspection

Tests of processes, machines, methodsDistribution

Consumers

INPUTS PROCESSES OUTPUTS


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Learning The foundation for improvement

Understanding why changes are successfulthrough feedback between practices andresults, which leads to new goals and

approaches Learning cycle:

Planning

Execution of plans

Assessment of progress

Revision of plans based on assessment findings


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03.12.200718

Infrastructure, Practices, and

Tools

Leadership Strategic HRM Process Data andLeadership Strategic HRM Process Data and informationinformation

Planning mgt.Planning mgt. managementmanagement

Performance TrainingPerformance Training

appraisalappraisal

Trend chartTrend chartToolsTools

PracticesPractices

InfrastructureInfrastructure


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TQ Infrastructure

Customer relationship management

Leadership and strategic planning

Human resources management

Process management

Data and information management


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03.12.200720

Competitive AdvantageCompetitive Advantage

Is driven by customer wants and needs

Makes significant contribution to businesssuccess

Matches organizations unique resources

with opportunities Is durable and lasting

Provides basis for further improvementProvides direction and motivation

Quality supports each of these characteristics


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Quality and ProfitabilityQuality and ProfitabilityImproved quality

of design

Higher perceived

value

Increased marketshare

Higher

prices

Increasedrevenues

Improved quality

of conformance

Lowermanufacturing and

service costs

Higher profitability

Evidence that Quality Impacts


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Evidence that Quality Impacts

Business Results

General Accounting Office study ofBaldrige Award applicants

Baldrige stock study (seewww.quality.nist.gov)

Hendricks and Singhal study of

quality award winnersPerformance results of Baldrige

Award winners


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GAO TQ Model

Product andservice quality

Customersatisfaction

Leadership forcontinuous

improvement

Quality systems andemployee involvement

Competitiveness

Organizationbenefits

Reliability

On-time delivery

Error/defects

Overall satisfaction

Customer retention

Complaints

CostsCycle time

TurnoverSatisfaction

Safety & health

Productivity

Market share

Profits


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Three Levels of Quality

Organizational level: meeting

external customer requirements

Process level: linking external and

internal customer requirements

Performer/job level: meeting

internal customer requirements


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03.12.200725

Quality and Personal ValuesQuality and Personal Values

Personal initiative has a positive

impact on business success

Quality begins with personal attitudes

Quality-focused individuals oftenexceed customer expectations

Attitudes can be changed throughawareness and effort (e.g., personal

quality checklists)


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ChallengesTrue understanding of the organization

Machine metaphorComputer metaphor

Life-form metaphorPolitical/cultural realities of the

organization

Growth of Modern


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03.12.200727

Growth of Modern

Quality Management

Manufacturingquality

Improvedproduct designs

Servicequality

Performanceexcellence


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Systems Thinking A system is the functions or activities within

an organization that work together for the aimof the organization.

Subsystems of an organization are linked

together as internal customers and suppliers. A systems perspective acknowledges the

importance of the interactions of subsystems,not the actions of them individually.


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Manufacturing Systems(1 of 2)

Marketing and sales

Product design and engineering

Purchasing and receiving

Production planning and scheduling

Manufacturing and assemblyTool engineering


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Manufacturing Systems (2 of 2)

Industrial engineering and processdesign

Finished goods inspection and testPackaging, shipping, and

warehousingInstallation and service


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Quality in Business SupportFunctions for Manufacturing

General management

Finance and accounting

Human resource management

Quality assuranceLegal services


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Quality in ServicesServiceis defined as any primary or

complementary activity that does notdirectly produce a physical product

that is, the non-goods part of thetransaction between buyer (customer)and seller (provider).

Critical Differences between


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03.12.200733


Service and Manufacturing (1 of 2)

Customer needs and performancestandards are more difficult to identifyand measure

Services requires a higher degree ofcustomization

Output is intangible



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Service and Manufacturing (2 of 2)

Services are produced and consumedsimultaneously

Customers are often involved in actual

processServices are more labor-intensive than

manufacturing

Services handle large numbers oftransactions

Components of Service


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Components of Service

System Quality

EmployeesInformation technology

The Ritz Carlton Hotel Co


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The Ritz-Carlton Hotel Co.


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The Quality GurusThe Quality Gurus

Philosophies andFrameworks


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Deming Chain Reaction

Improve quality

Costs decrease

Productivity improves

Increase market share with better

quality and lower prices

Stay in business

Provide jobs and more jobs

Demings System


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g y

of Profound KnowledgeAppreciation for a system

Understanding variationTheory of knowledge

Psychology


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SystemsMost organizational processes are

cross-functionalParts of a system must work

togetherEvery system must have a purpose

Management must optimize thesystem as a whole


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Theory of KnowledgeKnowledge is not possible without

theoryExperience alone does not

establish a theory, it only describesTheory shows cause-and-effect

relationships that can be used forprediction


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PsychologyPeople are motivated intrinsically

and extrinsicallyFear is demotivating

Managers should develop prideand joy in work


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Demings 14 Points (Abridged) (1 of 2)1. Create and publish a company mission

statement and commit to it.

2. Learn the new philosophy.

3. Understand the purpose of inspection.

4. End business practices driven by price alone.5. Constantly improve system of production

and service.

6. Institute training.7. Teach and institute leadership.

8. Drive out fear and create trust.


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Demings 14 Points (2 of 2)9. Optimize team and individual efforts.

10. Eliminate exhortations for work force.

11. Eliminate numerical quotas and M.B.O.Focus on improvement.

12. Remove barriers that rob people of pride

of workmanship.

13. Encourage education and self-improvement.

14. Take action to accomplish the transformation.

www.deming.org

Demings 7 Deadly Sins
http://deming.org/deminghtml/wedi.htmlhttp://deming.org/deminghtml/wedi.html


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Deming s 7 Deadly Sins

1. Lack of constancy of purpose2. Emphasis on short term profits

3. Evaluation of performance, merit rating, orannual review of performance

4. Mobility of management

5. Running a company on visible figures alone6. Excessive medical costs for employee health

care that increase the final costs of goods

and services7. Excessive costs of warranty, fueled by

lawyers who work on the basis of

contingency fees.


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Joseph Juran Resistances to unity:

Multiple functions marketing, production

Multiple levels (hierarchy)

Multiple product lines Different markets, technologies

Solution:

A universal thought process for all levels


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Jurans Insight Corporate finance is based on:

Budgeting (planning)

Cost Control (expense control)

Cost Reduction (profit improvement)

A Financial Trilogy:

Budgeting

Cost Reduction Cost Control


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Jurans Quality TrilogyQuality planning

Quality control

Quality improvement

www.juran.com
http://www.juran.com/main.html


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Jurans Quality Trilogy Control

Process for meeting goals Ensure that operations conducted according to

plan

Planning Preparing to meet quality goals

Ensure that process capable of meeting goals

Improvement

Process of breaking through to new levels

Ensure that operations at superior performance


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Jurans Quality Trilogy (cont.) Current priorities misaligned with assessment

Process Assessment Priority

Control Very Strong Top Priority

Planning Weak LimitedPriority

Improvement Very Weak Very LowPriority

Jurans Trilogy (cont )


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Juran s Trilogy (cont.)

Must address:

Setting goals

Based on competition in the marketplace Removal of traditional wastes

Infrastructure

Enable corporate review of divisionalquality goals, plans and performance

Ensures fit with strategy

Resources

Training

Measurement

Jurans Trilogy (cont )


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Juran s Trilogy (cont.)

Tools were shop floor oriented

Measurement was cost ofquality

To incite management

Economic quality level

Jurans Breakthrough


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Sequence1. Breakthrough in attitudes

2.Identify the vital few projects

3. Organize for breakthrough knowledge Steering group

Diagnostic group4. Conduct the analysis

5. Determine how to overcome resistance to

change6. Institute the change

7. Institute controls

Phillip B Crosby


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Phillip B. Crosby

Quality is free . . . :

Quality is free. Its not a gift, but it is free.

What costs money are the unquality things -- allthe actions that involve not doing jobs right the

first time.


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Philip B. CrosbyAbsolutes of Quality Management:

Quality means conformance to requirementsProblems are functional in nature

There is no optimum level of defects

Cost of quality is the only useful measurement

Zero defects is the only performance standard

www.philipcrosby.com
http://www.philipcrosby.com/


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Crosbys Quality is FreeQuality improvement programs

Take time

Must convince people that it is intheir best interests

5 stages of quality maturity


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Crosbys 14 Steps1. Management commitment2. Quality improvement team

3. Quality measurement

4. Cost of quality evaluation

5. Quality awareness

6. Corrective action

7. Establish an ad hoc committeefor the Zero Defects program


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Crosbys 14 Steps (cont.)8. Supervisor training9. Zero defects day (setting a

new standard)

10. Goal setting

11. Error cause removal

12. Recognition

13. Quality councils

14. Do it over again


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A.V. FeigenbaumThree Steps to Quality

Quality Leadership, with a strongfocus on planning

Modern Quality Technology, involvingthe entire work force

Organizational Commitment,

supported by continuous training andmotivation


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A.V. FeigenbaumNeed to Classify the Cost of Quality

PreventionAppraisal

Failure


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Kaoru IshikawaInstrumental in developing

Japanese quality strategyInfluenced participative approaches

involving all workersAdvocated the use of simple visual

tools and statistical techniques


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Genichi TaguchiPioneered a new perspective on quality

based on the economic value of being ontarget and reducing variation anddispelling the traditional view of

conformance to specifications:

No Loss LossLoss

Tolerance

0.500 0.5200.480


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Key Quality ConceptsSystemic integration of

customer feedback

Strong focus on quality definedas:

Measurable dimensions

Perceptions of internal and

external customersCI

Collaboration not competition

Key Quality Concepts (cont )


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Key Quality Concepts (cont.)

Data driven

TeamworkProper training

Proper motivation

Empowerment

Shared vision

Leadership

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