Om Quality

7/28/2019 Om Quality

1/78

QUALITY


2/78

QUALITY Many organizations have found quality is a wonderful tonic for

improving operations

Quality or the lack of quality affects the entire organization from

supplier to customer & from product design to maintenance Quality is the ability of a product or service to meet customer needs

In other words we can say that quality is fitness for use

It is the conformance to requirements

INTERNATIONAL QUALITY STANDARDS TOTAL QUALITY MANAGEMENT

It refers to a quality emphasis that encompasses the entireorganizations from supplier to customer.TQM stresses a commitment

by management to have a continuing company wide drive towardexcellence in all aspects of products & services that are important tothe customer

TQM is management of an entire organizations so that it excels in allaspects of products & services that are important to the customer.


3/78

TOTAL QUALITY MANAGEMENT

Continuous Improvement

Six Sigma

Employee Empowerment

Benchmarking

Just-in-Time (JIT)

Taguchi Concepts

Knowledge of TQM Tools


4/78

TOOLS OF TQM Check sheets

Scatter Diagrams

Cause-and-Effect Diagram Pareto Charts

Flow Charts

Histograms

Statistical Process Control (SPC)


5/78

To Make the Quality Focus Work

Motorola:

Aggressively began a worldwide education

program to be sure that employees understood

quality and statistical process control

Established goals

Established extensive employee participation and

employee teams


6/78

Ways in Which Quality Can ImproveProductivity

Sales Gains Improved response

Higher Prices

Improved reputation

Reduced Costs Increased productivity

Lower rework and scrap costs

Lower warranty costs

Increased

Profits

Improved

Quality


7/78

Flow of Activities Necessary to AchieveTotal Quality Management

Organizational Practices

Quality Principles

Employee Fulfillment

Customer Satisfaction


8/78


Leadership

Mission statement

Effective operating procedure Staff support

Training

Yields: What is important and what is to beaccomplished


9/78

Quality Principles

Customer focus

Continuous improvement

Employee empowerment

Benchmarking

Just-in-time

Tools of TQM

Yields: How to do what is important and to beaccomplished


10/78

Employment Fulfillment

Empowerment

Organizational commitment

Yields: Employees attitudes that they canaccomplish what is important and to be

accomplished


11/78

Customer Satisfaction

Winning orders

Repeat customers

Yields: An effective organization with acompetitive advantage


12/78

Definitions of Quality

ASC: Product characteristics & features that

affect customer satisfaction

User-Based: What consumer says it is

Manufacturing-Based: Degree to which a

product conforms to design specification

Product-Based: Level of measurableproduct characteristic


13/78

Operation

Reliability & durability

Conformance

Serviceability

Appearance

Perceived quality

Quality

Dimensions of Quality for Goods


14/78

Under-standing

Tangibles

Reliability

CommunicationCredibility

Security

Responsiveness

Competence

Courtesy

Access

1995 Corel Corp.

Service Quality Attributes


15/78

Importance of Quality

Costs & market

share

Companys

reputation

Product

liability

International

implications

Increased

Profits

Lower CostsProductivity

Rework/Scrap

Warranty

Market Gains

Reputation

VolumePrice

Improved

Quality


16/78

Established in 1988 by the U.S. government

Designed to promote TQM practices

Some criteria

Senior executive leadership; strategic planning;management. of process quality

Quality results; customer satisfaction

Recent winners Corning Inc.; GTE; AT&T; Eastman Chemical.

Malcom Baldrige National QualityAward


17/78

6

-1

Costs of Quality

It is the cost of doing things wrong- that is the price of

nonconformance. Four major categories of costs are associated withquality called cost of quality (COQ).

Prevention costs - reducing the potential for

defects (Eg:training,quality improvementprograms)

Appraisal costs - evaluating products( Eg:testing, labs, inspectors )

Internal failure - of producing defective partsor service (Eg : rework, Scrap)

External costs - occur after delivery( Eg:Returned goods, lost goodwill )


18/78

International Quality Standards

Industrial Standard Z8101-1981 (Japan) Specification for TQM

ISO 9000 series (Europe/EC)

Common quality standards for products sold inEurope (even if made in U.S.)

ISO 14000 series (Europe/EC)

Standards for recycling, labeling etc.

ASQC Q90 series; MILSTD (U.S.)


19/78

TraditionalQuality Process (Manufacturing)

Specifies

Need

Customer

Interprets

Need

Marketing

Designs

Product

Defines

Quality

Engineering

Produces

Product

Plans

Quality

Monitors

Quality

Operations


20/78

TQM

Encompasses entire organization, from supplier

to customer

Stresses a commitment by management to have

a continuing, company-wide, drive toward

excellence in all aspects of products and

services that are important to the customer.


21/78


Quality Principles

EmployeeFulfillment

Attitudes(e.g., Commitment)

How to Do

What to Do

Effective

Business

Customer

Satisfaction

Achieving

Total Quality Management


22/78

Demings Fourteen Points

Create consistency of purpose

Lead to promote change

Build quality into the products

Build long term relationships

Continuously improve product, quality, andservice

Start training Emphasize leadership


23/78

Demings Points - continued

Drive out fear

Break down barriers between departments

Stop haranguing workers

Support, help, improve

Remove barriers to pride in work

Institute a vigorous program of educationand self-improvement

Put everybody in the company to work onthe transformation


24/78

Concepts of TQM

Continuous improvement

Employee empowerment

Benchmarking Just-in-time (JIT)

Taguchi concepts

Knowledge of TQM tools


25/78

Continuous Improvement

Represents continual improvement of

process & customer satisfaction

Involves all operations

& work units

Other names Kaizen (Japanese)

Zero-defects Six sigma

1984-1994 T/Maker Co.


26/78

Shewharts PDCA Model

4.Act 1.Plan

3.Check 2.Do

Identify the

improvementand make a plan

Test the

plan

Is the

plan

working

Implemen

t the plan


27/78

Employee Empowerment

Getting employees involved in product &

process improvements 85% of quality problems are due to process & material

Techniques Support workers

Let workers make decisions

Build teams & quality circles

1995 Corel Corp.


28/78

Quality Circles

Group of 6-12 employees from same

work area

Meet regularly to solve work-related

problems

4 hours/month

Facilitator trains & helps

with meetings

1995 Corel Corp.


29/78

Benchmarking

Selecting best practices to use

as a standard for performance

Determine what to benchmark

Form a benchmark team

Identify benchmarking partners

Collect and analyze benchmarking information

Take action to match or exceed the benchmark


30/78

Resolving Customer Complaints

Best Practices

Make it easy for clients to complain

Respond quickly to complaints

Resolve complaints on the first contact Use computers to manage complaints

Recruit the best for customer service jobs


31/78

Just-in-Time (JIT)

Relationship to quality:

JIT cuts cost of quality

JIT improves quality

Better quality means less inventory and better,

easier-to-employ JIT system


32/78

Just-in-Time (JIT)

Pull system of production/purchasing

Customer starts production with an order

Involves vendor partnership programs toimprove quality of purchased items

Reduces all inventory levels

Inventory hides process & material problems

Improves process & product quality


33/78

Just-In-Time (JIT) Example

Scrap

Work in process inventory level

(hides problems)

Unreliable Vendors Capacity Imbalances


34/78

Just-In-Time (JIT) Example

Scrap

Reducing inventory reveals

problems so they can be solved.

Unreliable Vendors Capacity

Imbalances


35/78

Tools for TQM

Quality Function Deployment House of Quality

Taguchi technique

Quality loss function Pareto charts

Process charts

Cause-and-effect diagrams Statistical process control


36/78

Quality Function Deployment(QFD)

Determines what will satisfy the customer

Translates those customer desires into the

target design


37/78

Taguchi Techniques

Experimental design methods to improveproduct & process design

Identify key component & process variablesaffecting product variation

Taguchi Concepts

Quality robustness

Quality loss function

Target specifications


38/78

Ability to produce

products uniformly

regardless of

manufacturing

conditions

Put robustness in

House of Qualitymatrices besides

functionality 1984-1994 T/Maker Co.

1995 Corel Corp.

Quality Robustness


39/78

Shows social cost ($) of deviation from target

value

Assumptions Most measurable quality characteristics (e.g., length,

weight) have a target value

Deviations from target value are undesirable

Equation: L = D2C

L = Loss ($); D = Deviation; C = Cost

Quality Loss Function

Q lit L F ti


40/78

Quality Loss Function

Frequency

Target Upper Lower

Target-oriented quality

yields more product in

the "best" category

Distribution of Specifications for Products Produced

Conformance-oriented

quality keeps products

within 3 standarddeviations

Loss

High Loss

Low Loss

Unacceptable

Poor

Fair

Good

Best


41/78

The specifications for the

diameter of a gear are

25.00 0.25 mm.

If the diameter is out of

specification, the gear

must be scrapped at a cost

of$4.00. What is the loss

function?

1984-1994 T/Maker Co.

Quality Loss Function Example


42/78

L = D2C = (X - Target)2C

L = Loss ($); D = Deviation; C = Cost

4.00 = (25.25 - 25.00)2C

Item scrapped if greater than 25.25(USL = 25.00 + 0.25) with a cost of $4.00

C = 4.00 / (25.25 - 25.00)2 = 64

L = D2 64 = (X - 25.00)264 Enter various X values to obtain L & plot

Quality Loss Function Solution


43/78

Freq.

XTarget USLLSL

A study found U.S. consumers preferred Sony TVs

made in Japan to those made in the U.S. Bothfactories used the same designs & specifications. Thedifference in quality goals made the difference in

consumer preferences.

Japanese factory(Target-oriented)

U.S. factory(Conformance-oriented)

Target Specification Example


44/78

Quality Loss Function; Distribution of

Products Produced

Low loss

High loss

Frequency

Lower Target Upper

Specification

Loss (to

producing

organization,

customer, and

society)

Quality Loss Function (a)

Unacceptable

Poor

Fair

Good

Best

Target-oriented

quality yields

more product in

the best

categoryTarget-oriented

quality brings

products toward the

target valueConformance-oriented

quality keeps product

within three standarddeviations

Distribution of

specifications for product

produced (b)


45/78

PDCA Cycle

4.Act:

Implementthe plan

1.Plan:

Identify theimprovementand make a

plan

3.Check:

Is the plan

working

2.Do:

Test the plan


46/78

Tools of TQM Tools for generating ideas

Check sheet

Scatter diagram

Cause and effect diagram

Tools to organize data Pareto charts

Process charts (Flow diagrams)

Tools for identifying problems Histograms Statistical process control chart

l f


47/78

Seven Tools for TQM

l f l f


48/78

Pareto Analysis of Wine Glass Defects(Total Defects = 75)

54

125 4 2

72%

88%93% 97% 100%

0

10

20

30

40

50

60

70

Scratches Porosity Nicks Contamination Misc.

Causes, by percent total defects

Frequency

(Number)

0%

20%

40%

60%

80%

100%

Cumulativ

ePercent

72% 16% 5% 4% 3%


49/78

Shows sequence of events in process

Depicts activity relationships

Has many uses Identify data collection points

Find problem sources

Identify places for improvement Identify where travel distances can be reduced

Process Chart


50/78

SUBJECT: Request tool purchase

Dist (ft) Time (min) Symbol Description

D Write order

D On desk

75 D To buyer

D Examine

= Operation; = Transport; = Inspect;

D = Delay; = Storage

Process Chart Example


51/78

Used to find problem sources/solutions

Other names

Fish-bone diagram, Ishikawa diagram

Steps

Identify problem to correct

Draw main causes for problem as bones

Ask What could have caused problems in these

areas? Repeat for each sub-area.

Cause and Effect Diagram


52/78

Too manydefects

Problem

Cause and Effect Diagram Example


53/78

Method Manpower

Material Machinery

Too manydefects

Main Cause

Main Cause



54/78

Method Manpower

Material Machinery

DrillOvertime

Steel

Wood

Lathe

Too manydefects

Sub-Cause



55/78

6-55

Method Manpower

Material Machinery

DrillOvertime

Steel

Wood

Lathe

Too manydefects

Tired

Old

Slow


Fi hb Ch t P bl ith Ai li


56/78

6-56

Fishbone Chart - Problems with AirlineCustomer Service


57/78

Uses statistics & control charts to tell whento adjust process

Developed by Shewhart in 1920s

Involves Creating standards (upper & lower limits)

Measuring sample output (e.g. mean wgt.)

Taking corrective action (if necessary) Done while product is being produced

Statistical Process Control (SPC)


58/78

Produce GoodProvide Service

Stop Process

Yes

No

Assign.

Causes?Take Sample

Inspect Sample

Find Out WhyCreate

Control Chart

Start

Statistical Process Control Steps


59/78

Process Control Chart

Plot of Sample Data Over Time

0

20

40

60

80

1 5 9 13 17 21

Time

SampleV

alue Sample

Value

UCL

Average

LCL


60/78

Control Chart

Patterns to Look for in


61/78

Patterns to Look for inControl Charts


62/78

Involves examining items to see if an item isgood or defective

Detect a defective product

Does not correct deficiencies in process orproduct

Issues

When to inspect Where in process to inspect

Inspection


63/78

When and Where to Inspect

At the suppliers plant while the supplier is producing

At your facility upon receipt of goods from the supplier

Before costly or irreversible processes

During the step-by-step production processes

When production or service is complete

Before delivery from your facility

At the point of customer contact


64/78

Inspection Points in Services

Organization What is Inspected Standard

Jones Law

Office

Receptionist

performance

Billing

Attorney

Is phone answered by the

second ring

Accurate, timely, and

correct format

Promptness in returning

calls


65/78



Hard Rock

Hotel

Reception desk

Doorman

Room

Minibar

Use customers name

Greet guest in less than 30

seconds

All lights working, spotlessbathroom

Restocked and chargesaccurately posted to bill


66/78



Bayfield

Community

Hospital

Billing

Pharmacy

Lab

Nurses

Admissions

Accurate, timely, and correct format

Prescription accuracy, inventory accuracy

Audit for lab-test accuracy

Charts immediately updated

Data entered correctly and completely


67/78



Hard Rock

Cafe

Busboy

Busboy

Waiter

Serves water and bread within

1 minute

Clears all entre items andcrumbs prior to desert

Knows and suggest specials

and desserts


68/78



Nordstroms

Department

Store

Display areas

Stockrooms

Salesclerks

Attractive, well-organized,

stocked, good lighting

Rotation of goods, organized,clean

Neat, courteous, very

knowledgeable


69/78


BankTeller

stations

Loan

accounts

Checking

accounts

Shortages, courtesy,

speed, accuracy

Collateral, proper credit checks,

rates, terms of loans, default

rates, loan rates

Accuracy, speed of entry,

rate of overdraws

Organization Some Points ofInspection Issues to Consider


70/78


Retail storeStockrooms

Display areas

Sales counters

Clean, uncluttered, organized,

level of stockouts, amply

supply, rotation of goods

Attractive, well-organized,

stocked, visible goods, good

lighting

Neat, courteous knowledgeable

personnel; waiting time;

accuracy in credit checking and

sales entry

Organization Some Points ofInspection

Issues to Consider


71/78


Restaurant

Kitchen

Cashier station

Dining areas

Clean, proper storage,

unadulterated food, health

regulations observed, well-organized

Speed, accuracy, appearance

Clean, comfortable,

regular monitoring by

personnel,

Organization Some Points ofInspection

Issues to Consider


72/78

Service quality is more difficult to measure

than for goods

Service quality perceptions depend on

Expectations versus reality

Process and outcome

Types of service quality Normal: Routine service delivery

Exceptional: How problems are handled

TQM In Services


73/78

Goods versus Services

Can be resold

Can be inventoried

Some aspects ofquality measurable

Selling is distinct

from production

Reselling unusual

Difficult to

inventory

Quality difficult to

measure

Selling is part ofservice

Good Service

d d


74/78

Goods versus Services - continued

Product istransportable

Site of facilityimportant for cost

Often easy toautomate

Revenue generatedprimarily fromtangible product

Provider, not productis transportable

Site of facilityimportant forcustomer contact

Often difficult toautomate

Revenue generatedprimarily fromintangible service.

Good Service


75/78

Under-standing

Tangibles

Reliability

CommunicationCredibility

Security

Responsiveness

Competence

Courtesy

Access

1995 Corel Corp.

Service Quality Attributes


76/78

Determinants of Service Quality

Reliability consistency and dependability Responsiveness willingness/readiness of

employees to provide service; timeliness

Competence possession of skills andknowledge required to perform service

Access approachability and ease of contact

Courtesy politeness, respect, consideration,friendliness of contact personnel

Determinants of Service Quality -


77/78

Determinants of Service Quality

Continued

Communication keeping customers informed inlanguages they understand

Credibility trustworthiness, believability,

honesty Security freedom from danger, risk or doubt

Understanding/knowing the customer making

the effort to understands the customers needs Tangibles the physical evidence of the service

QUALITY CIRCLE


78/78

QUALITY CIRCLE

A group of employees meeting regularly with a facilitator to solve work

related problems in their work area.

The members receive training in group planning , problem solving &

statistical quality control

INTERNATIONAL QUALITY STANDARDS

SIX SIGMA : The term is popularized by Motorola , Honeywell & General

Electric, has two meaning in TQM.In a statistical sense it describes aprocess , product , or service with an extremely high capability (99.9997%

accuracy )

A program to save time , improve quality & lower costs.

Six sigma is a comprehensive system a strategy , a discipline & a set of

tools for achieving & sustaining business success.

Om Quality

Documents

Transcript of Om Quality