Quality Today
Presented by:
Kamran Shaukat Ali Khan
chromeis.com/TQM
Download latest version of this File !
 This file was downloaded from: chromeis.com/TQM
 Download latest version of the ...
3
Quality Today
 What is Quality
 Quality Dimensions & Obstacles
 Cost of Quality
 Productivity Enhancement
 Leadersh...
4
ABSTRACT
-- what means ‘quality’ today?
-- what sneaks quality in a product
-- Myths about quality
-- using modern tools...
5
INTRODUCTION
 Originators of Quality?
 Why Quality (Significance)
 …
 An important determinant of business
profitabi...
6
An innovation happens to CREATE or SERVE the market NEED
Invention
(never existed)
Imitation
(copying)
Technology Lead
(...
7
Quality Today
What is Quality
 Quality Dimensions & Obstacles
 Cost of Quality
 Productivity Enhancement
 Leadershi...
8
Definitions
 Conformance to Specifications
 Conformance to Standards
 Freedom from defects
 A Degree of Excellence
...
9
Definitions
 Customer Satisfaction
 Quality is the totality of characteristics of an entity
that bears on its ability ...
10
Means many things to many people - it is usually associated with cost.
 Fitness for purpose
– J M Duran
 Conformance ...
11
What is Quality? …cont.
 Quality is a predictable degree of uniformity and dependability, at
low cost and suited to th...
12
What is Quality? …cont.
 Quality is the total composite product and service characteristics
of marketing, engineering,...
13
Definition:
 Customer Delight
… Tomorrow’s Definition
Customer Delight
Customer Satisfaction
Bugs free – Fulfilling Re...
14
Basic Quality & Excitement Quality are both UNSPOKEN
Basic Quality
Excitement Quality
More About Quality
 Un-stated Re...
15
Satisfy the internal as well as external customers
Emphasis on Improvement rather than Maintenance
Encourage Collaborat...
16
Quality Check Theory – Shewhart:1931
58.4
58.6
58.8
59
59.2
59.4
59.6
59.8
60
60.2
1
2
3
4
5
6
7
8
59-60 is within Qual...
17
Quality Loss Function – Taguchi: 1950
 Customer Requires delivery in 4-6 Days
 Actual Delivery Takes: 4 Days in routi...
18
Quality Today
 What is Quality
 Quality Dimensions & Obstacles
 Cost of Quality
 Productivity Enhancement
 Leaders...
19
Dimensions of Quality – Gravin
 Performance
 Features
 Conformance
 Reliability
 Durability
 Service
 Response
...
20
Meaning of Quality
The meaning of Quality
Consumers PerspectiveProducts Perspective
Quality of Conformance
…………………………
C...
21
Obstacles to Quality
Different hindrances in achieving Quality
Misconception:
Additional cost
Adherence
Poor Reading ha...
22
Rehabilitation and Cultural Change
The Clues are there!
 Official Lifestyle Change (+ve)
 Top Management Involvement
...
23
Strategic Implications of QMS
 Quality is key to effective strategy
 Clear strategic goal, vision, mission
 High qua...
24
Quality Today
 What is Quality
 Quality Dimensions & Obstacles
Cost of Quality
 Productivity Enhancement
 Leadersh...
25
Cost of Quality
 Cost of achieving good quality
 Prevention
 Appraisal
 Cost of poor quality
 Internal failure cos...
26
Quality is Free – Crosby:1950
Preventing: Cost of poor quality
 Prevention Cost
 Appraisal Cost
 Internal Failure Co...
27
Quality Index Example
Quality Costs $ 2004 2005 2006 2007
Prevention $ 27,000.00 41,500.00 74,600.00 112,300.00
Apprais...
28
Quality Index
Total quality Cost *100/base
$810,400 *100 / 4,360,000 = 18.58
Year Sales Cost
2004 18.58 46.04
2005 18.6...
29
Quality Indexes
 Labor Index
quality cost / labor hours
 Cost Index
quality cost / manufacturing cost
 Sales Index
q...
30
Quality Today
 What is Quality
 Quality Dimensions & Obstacles
 Cost of Quality
Productivity Enhancement
 Leadersh...
31
Quality and Productivity
 Productivity = output / input
 Fewer defects increase output
 Improved Quality reduces inp...
32
Productivity Enhancement Techniques
Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
33
How Should I…?
Adjusting Perceptions…
Commitment
Continuous Improvement
No Expectation of Quick Reward
Enabling Vs. Res...
34
Quality Today
 What is Quality
 Quality Dimensions & Obstacles
 Cost of Quality
 Productivity Enhancement
Leadersh...
35
 “Leadership is the ability to inspire people to
make a total, willing and voluntary commitment
to accomplishing or ex...
36
Leadership Characteristics
 Walk the talk
 Persuasiveness
 Positive Influence
 Good Communication
 Positive Role M...
37
Types of Leadership
 Delegating
 Assigns responsibilities
 Assigns authority
 Provides minimal input
 Verifies wor...
38
Types of Leadership Styles
 Participative
 Provides guidance
 Gets involved when necessary
 Accepts works and decis...
39
Misconceptions about Leaders
 Leaders Exists at the top
 Leaders are born not made
 Leaders are Charismatic
 Leader...
40
Leadership for Quality
 Customer (both internal & External) Focus
 Obsession with Quality
 They empower rather than ...
41Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
42
Habits of Highly Effective People
 Proactive not reactive
 There is nothing I can do ::Lets look at our alternatives
...
43
Employees & Quality Improvement
 Quality circles
 Employees’ suggestions
 Process improvement teams
 Self-managed w...
44
The Quality Circle Process
Organization
8-10 members
same area
moderator
Problem Analysis
Causes & effect
data collecti...
45
Customer
Orientation
Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
46
Customer & Quality Management
Customers can be:
 Internal Customers
 What is needed from me?
 What is use of my outp...
47
Customer value Analysis (CVA)
 Customer Value Analysis:
 Determine attributes customers value most
 Rate the relativ...
48
Quality Today
 What is Quality
 Quality Dimensions & Obstacles
 Cost of Quality
 Productivity Enhancement
 Leaders...
49
The Four Absolutes of Quality
 Quality is conformance to requirements
- Do what you said you would do
 The system for...
50
Traditional Way of Quality Control
 Takes place
 During
 And at the end of the process
 Three Main points where ins...
51
ISO 9000 Categories
 ISO 9001 – Suppliers and Designers
 ISO 9002 – Production
 ISO 9003 – Inspection and Test
 ISO...
52
Implications of ISO 9000
 Adopted by U.S. Navy, DuPont, 3M, AT&T & others
 Certification required by many foreign fir...
53
International Organization for Standardization
 International standardization began in the electro-
technical field
 ...
54
Members of ISO
 Member Bodies
 Full members
 Each have one vote
 Correspondent Members
 Pay reduced membership fee...
55
The hallmarks of the ISO brand
 Equal footing
 Each participating member in ISO has one vote
 Voluntary
 As a non-g...
56
ISO 9000 & ISO 14000
 Generic Management System Standards
 Generic means that the same standards can be applied
 to ...
57
Quality Management Principles
 Customer Focus
 Leadership
 Involvement of People
 Process approach
 System approac...
58
Quality Today
 What is Quality
 Quality Dimensions & Obstacles
 Cost of Quality
 Productivity Enhancement
 ISO and...
59
To Accompany Ritzman & Krajewski, Foundations of Operations Management © 2003 Prentice-Hall, Inc. All rights reserved.
...
60
TQM Principles
1. Top management leadership (Long term)
2. Customer Focus
3. Quality as a strategic issue
4. Statistica...
61
TQM: Deming Philosophy
PlanPlan
DoDo
CheckCheck
ActAct
DemingDeming
WheelWheel
Quality Today (TQM) - Kamran Khan – Chro...
62
Deming’s 14 Points
1. Create and communicate to all employees a statement of the
aims and purposes of the company.
2. A...
63
Deming’s 14 Points
6. Institute on-the-job training.
7. Teach and institute leadership to improve all job
functions.
8....
64
Deming’s 14 Points
10. Eliminate exhortations for the work force; instead, focus on
the system and morale.
11. a- Elimi...
65
Benchmarking  Standard or
point of
reference
 “Benchmarking is a systemic method by which
organization can measure th...
66
Benchmarking
 Continuous, systematic process that measures products,
services and practices against those of industry ...
67
Types of Benchmarking
 Process benchmarking - identifying and observing the best practices from
one or more benchmark ...
68
What is our
Performance level?
How do we do it?
What are others
Performance level?
How did they get
there?
Creative
ada...
69
Benchmarking vs. Competitive analysis
 Competitive analysis involves comparing
competitor’s product against yours.
 W...
70
Benchmarking Process
 Obtain management commitment
 Understand Current Performance
 Identify your strong and weak pr...
71
 Will and Commitment
 Vision/Objective link
 Goal to become the best (& simply not to improve)
 Openness to new ide...
72
 Internal Focus
 Unrealistic timetable
 Poor team composition
 Settling for ordinary-in-class
 Insensitivity to Pa...
73
Statistical Process Control
 Take periodic samples from process
 Plot sample points on control chart
 Determine if p...
74
Statistical Process Control
 Monitors standards, makes measurements and take corrective
actions as the product or serv...
75
SPC: Variation
 Common Causes
 Variation inherent in a process
 Can be eliminated only through improvements in the s...
76
Development of Control Chart
 Based on in-control data
 If random causes present discard data
 Correct control chart...
77
Check Sheets
 A Process is in Control if:
 No sample points outside limits
 Most points near process average
 About...
78
Tools to Measure Quality
 Check Sheets
 Scatter Diagram
 Cause & Effect Diagram
 Pareto Chart
 Flow Charts
 Histo...
79
Cause and effect Diagram
 Also called
 Ishikawa diagram after Dr. Kaoru Ishikawa
 Fishbone diagram (because of its s...
80
People Material Work Methods
Govt. Reg.EquipmentEnvironment
Quality
Causes Effects
C&E Diagram: Construction
Quality To...
81
House Paint
Peeling
Material Work Method
EnvironmentEquipment
brush
dirty
bad bristles
humidity
Air pollution
Temperatu...
82
C&E Diagram: Procedure
 Identify the Effect or Quality Problem
 Place it on the right side of a piece of paper
 Iden...
83
Pareto Diagram: Procedure
 Determine the method of classifying the data by
problem, cause, non-conformity etc.
 Decid...
84
Pareto Diagram
 First used for economic theory by Alfredo
Pareto
 “Vital few” and “useful many”
 Examples
 Few cust...
85
NonconformityFrequency
Painting
Welding
Molding
Packing
49%
31%
14%
6 %
Pareto Diagram: Constructing
Packing
Painting
W...
86
Process Flow Diagram
 Shows flow of product or service as it moves through various
processes
 It becomes easy to visu...
87
Production
exec
Telephone
Fax
Letter
Log In
Notify Customer
-delivery date
Schedule
Production
Inventory
Hold
Contract
...
88
Defining Quality
Quantifying…
 “Degree to which a set of
inherent characteristics
fulfills requirements”
 Q = P/E
 W...
89
Where to apply QA
 Design
 Process
 Human
 Deming’s Philosophy:
 “inspection with the aim of finding bad ones and ...
90
Quality Eras
Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
91
Early 1900’s: Tailorism
 The philosophy of job decomposing which separated the tasks of
the craftsman into deskilled i...
92
History (cont..)
 1920’s: Bell Telephone Labs
 A group was formed to develop new theories and methods
of inspection t...
93
 1950’s: Deming and Juran’s introduction to
Japan of Statistical Quality Control
Techniques
 juran.com/drjuran.html
H...
94
History (cont..)
 Industrial Revolution:
 applied to the manufacture of rifles for the US Army
 Made high demands on...
95
 1960’s and 70’s : Increasing Japanese
domination of large sectors of world
trade in manufacturing
 1972 Institute of...
96
Quality is free - the optimum is zero
Philip Crosby
defects.
W. Edwards
Deming
Deming’s 14 points.
How to use statistic...
97
Problem Solving…
Different Approaches…
 Juran’s Trilogy
 Planning
 Control
 Improvement
 PDSA (Shewhart’s and Demi...
98
Juran’s Trilogy
 Plan
 Identify customers (internal/external)
 Discover the Needs
 Develop Product/Service features...
99
Act Plan
DoStudy
Identify the
opportunity
Analyze the
Process
Develop the
Optimal Solution
Implement
Study the
results
...
100
PDCA / PDSA
 Identify the Opportunities
 Identify the problems
 Prioritize the Problems
 Form a team
 Define the ...
101
PDCA / PDSA
 Develop the Optimal Solution
 Creativity and Brainstorming needed
 One of the following may be adopted...
102
PDCA / PDSA
 Study the Results
 Monitor the change
 Evaluate the Change
 Study the effectiveness of the improvemen...
103
Kaizen
5 S…
 Seiri : Proper Arrangement
 Seiton : Put things in order
 Seiso : Clean up
 Shiketsu : Personal Clean...
104
Quality Today
 What is Quality
 Quality Dimensions& Obstacles
 Cost of Quality
 ISO and other Models
 Total Quali...
105
Quality
Improvement
The Pursuit of
QUALITY
is a JOURNEY
not a DESTINATION!
Where are you; on your
STARTING
blocks?
QUA...
106
Six-Sigma – What is it?
 Six Sigma is a business management strategy, originally developed by
Motorola, that today en...
Upcoming SlideShare
Loading in...5
×

Quality Today [TQM] - Kamran Khan [chromeis.com]

6,237

Published on

Significance of Quality (QMS) in an industry (not specific to particular industry)
This outlines significance of implementation of Total Quality Management

Download latest version from: http://chromeis.com/TQM

Outline:
What is Quality
Quality Dimensions & Obstacles
Cost of Quality
Productivity Enhancement
Leadership for Quality
ISO and other Models
Total Quality Management
Benchmarking vs Competitive Analysis
Statistical Process Control
Check Sheet and other tools
Six-Sigma

Published in: Business, Technology
11 Comments
14 Likes
Statistics
Notes
No Downloads
Views
Total Views
6,237
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
379
Comments
11
Likes
14
Embeds 0
No embeds

No notes for slide
  • Target Audience: Anyone seeking significance of implementation of Quality Management System
    Last Updated: 20091023
    © Copy Rights Reserved
    Author: Kamran Shaukat Ali Khan
    E-mail: kamran.khan@chromeis.com [you can add this on GTalk/Google Hangout as long as you don’t expect me to reply  ]
    http://chromeis.com/institute
  • This file was downloaded from:
    http://chromeis.com/TQM
    For more training material, visit
    http://chromeis.com/institute
  • Loads of us get intuition from experienced professional and accept obsolete definitions. This presentation intends to highlight what Quality means Today.
    This highlights the attributes and dimensions of quality which we need to focus.
    This further talks about the areas where we need to focus – to establish true Quality Management System.
  • A lot of stress is given on Quality in every industry. The orientation comes from Japan by American scientists. Americans shunt out their quality professionals and sent them to Japan on the name of rehabilitation. Japan accepted them as god and now Japan is first name in Quality. Example: Now Japan picks up raw cotton from the Pakistani port and after refining, delivers it back on Pakistan port and the price (cost + profit) charged by Japan is far in comparison to if the whole process is done in Pakistan.
    Survival in Competition is the only and absolute reason. If there is no competition, Quality is not NEEDED – Example: Government of any country, WAPDA in Pakistan, PAKTEL monopoly few years back which is broken after other cellular companies. However, nevertheless, an organization may bring in quality if willing.
  • Inventions:
    High cost and high profit – long projects but almost no competition. No Quality needed by virtue of being invention.
    Innovations:
    Generate easy profit comparing to inventions and imitation
    Have existing competition; so Quality is need
    Imitation:
    Copying attributed or creating a ditto copy.
    Market Led: Sensing the market need, building a product and then promoting it
    Technology Led: Scientific Invention is done, then the “use” is projected to CREATE the market need, and then the need is highlighted for increased sales.
  • Quality Definition in ISO 9000:2000: Quality is defined a the degree to which a set of inherent characteristics fulfill requirements.
    Other Definitions of quality on the Web:
    an essential and distinguishing attribute of something or someone; "the quality of mercy is not strained"--Shakespeare
    a degree or grade of excellence or worth; "the quality of students has risen"; "an executive of low caliber"
    a characteristic property that defines the apparent individual nature of something; "each town has a quality all its own"; "the radical character of our demands"
    timbre: (music) the distinctive property of a complex sound (a voice or noise or musical sound); "the timbre of her soprano was rich and lovely"; "the muffled tones of the broken bell summoned them to meet"
    choice: of superior grade; "choice wines"; "prime beef"; "prize carnations"; "quality paper"; "select peaches"
    of high social status; "people of quality"; "a quality family" wordnet.princeton.edu/perl/webwn
    Quality refers to the inherent or distinctive characteristics or properties of a person, object, process or other thing. Such characteristics or properties may set a person or thing apart from other persons or things, or may denote some degree of achievement or excellence. When used in relation to people, the term may also signify a personal character or trait. en.wikipedia.org/wiki/Quality
    The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.www.chesapeakebay.net/info/qa_glossary.cfm
    In publishing parlance, the word quality in reference to a book category (such as quality fiction) or format (quality paperback) is a term of art - individual works or lines so described are presented as outstanding products.www.brochure-design.com/brochure-design-publishing-terms.html
    Subjective term relating to expectations by the customer, printer, and other professionals associated with a printing job and whether the job meets those expectations. Quick printing - Printing using small sheetfed presses, called duplicators, using cut sizes of bond and offset paper. Paper, plastic or rubber plates are made directly from camera-ready copy, as compared to metal plates for commercial printing that require making film first. ...www.marrak.com/resource/glossary.html
    consistent performance of a uniform product meeting the customer's needs for economy and function.www.palletone.com/resource/glossary.html
    the character of a chord given by its third, fifth, and seventh. The qualities are major, dominant, minor, tonic minor, half-diminished and diminished. In theory augmented major and augmented (dominant) would also be 'qualities' but they are usually just considered alterations.www.humboldt1.com/~jazz/glossary.html
    Value which describes the resonance properties of an oscillating system, for example a resonant circuit or a resonant cavity (resonator). The quality of an oscillating system depends on the average energy stored by the system and its power loss. The higher the quality, the steeper the resonance curve and the narrower the bandwidth.www.desy.de/pr-info/desyhome/html/presse/glossary.html
    Wiley Publications are known for their quality of content and high standards of production.www.wiley.com/legacy/wileychi/ecc/publish.html
    The totality of features or properties of an entity that bear on its ability to satisfy stated and implied needs.www.iese.fhg.de/Publications/book/Guides/glossary/content.html
    In the context of GIS data, quality usually refers to how fit the data are for a particular purpose.hds.essex.ac.uk/g2gp/gis/sect101.asp
    Meeting expectation and requirements, stated and un-stated, of the customer.www.vmec.org/glossary/
    All Acromag products undergo rigid quality control procedures to ensure compliance with our published specifications. Customers are welcome to observe our standard inspection procedures at a nominal charge. Factory inspections requiring special tests, documentation, or procedures not normally part of Acromag's standard procedures, are subject to additional charges.www.acromag.com/aa_terms.cfm
    to be at a high degree of excellence; something that is good or well donewww.groundwater.org/kc/kidsvocab.html
    Definition: The percentage of data obtained that is "good" (e.g. not affected by clouds) Data Type: integer Possible Values: 0 <= x <= 100 Default: none Origin: WSC Instrument: Source: Rate of change: per sequence Comment: Never used. See the Warning page.bass2000.bagn.obs-mip.fr/New2003/Pages/thesaurus2001.html
    The composite of material attributes, including performance features and characteristic, of a product or service to satisfy a given need.www.mmd.admin.state.mn.us/mn06008.htm
    The credit rating given to an individual security by a rating agency such as Moody's or Standard & Poor's.www.morganstanley.com/im/glossary/
    Status summary. Scale runs from 0 - 10. This value is determined by 'sigma = int(VEL_RES/VEL_RMS)'. If 'sigma' is 3 standard deviations or less, the QUALITY value is '0' and the image is clean and sharp. If 3sigma < VEL_RES <= 4sigma , QUALITY = 3 If 4sigma < VEL_RES <= 5sigma , QUALITY = 4 If 5sigma < VEL_RES <= 6sigma , QUALITY = 5, etc. ...physics.usc.edu/solar/FITS.html
    the dual of quantity: quality of the first kind is a combination of the irreducible dimensions of mass, length and time, MLT; quality of the second kind is system performance and consists of a ratio of qualities of the first kind.www.corebooksweb.com/definitions.htm
    the filling of time. Reality: sensation in general; points to being (in time). Negation: not-being in time.www.bright.net/~jclarke/kant/princip1.html
    covers the implementation of quality programs which attempt to improve the standard or performance of a company, product or industry and the impact of changes made because of quality factor. Includes TQM and Baldridge material.rdsweb2.rdsinc.com/help/bi_ct_expdef.html
    The quality of the product is to a high standard, we cannot be held responsible for variances in quality from the manufactures.www.cigarsclub.com/terms.htm
    Manufacturing is conducted under the strict requirements of an ISO 9001 quality assurance program.www.ccgicorp.com/systems.helical.piles.php
    Conformance to requirements or fitness for use. Quality can be defined through five principal approaches: (1) Transcendent quality is an ideal, a condition of excellence. (2) Product-based quality is based on a product attribute. (3) User-based quality is fitness for use. (4) Manufacturing-based quality is conformance to requirements. (5) Value-based quality is the degree of excellence at an acceptable price. ...scrc.ncsu.edu/public/DEFINITIONS/P%20-%20R.html
    means the ability of a set of inherent characteristics of a product, system or process to fulfill requirements of customers and other interested parties (from AS/NZS ISO 9000:2000).www.nswfitc.com.au/a/1855.html
    the totality of an entity’s properties which make it capable of satisfying an expressed or hypothetic need, that is, acceptability or suitability for a given purpose;www.unizg.hr/tempusprojects/glossary.htm
    The State will be the sole judge in determining “equals” with regard to quality, price and performance. All products delivered shall be newly manufactured and of the manufacturer’s current model, unless otherwise specified.www.cu.edu/psc/purchasing/vendor/po-terms.html
  • The TOTALITY (each and every attribute with no exception) of characteristics which can contribute to satisfy the user of the product.
    ISO 9000:2000 Definition of Quality:
    Quality is defined as the degree to which a set of inherent characteristics fulfill requirements.
  • Anything possible to make him delighted by means of features, performance, service delivery and support. Go an extra mile for customer delight.
  • Basic Quality: Unstated features which the customer is not aware of. After purchase, customer may sense basic quality and later it may become performance quality. Examples include CFC free gas in air conditioners and readability/write-ability of code of a software.
    Performance Quality: Fulfilling all the stated requirements of customer.
    Excitement Quality: Pleasant surprises to delight the customer. This may include fringes etc.
  • Plan Do Study Act
  • The Quality Loss Function (QLF)
    The quality loss function is based on the work of electrical engineer, Genichi Taguchi. This view disagrees with the traditional (goalpost) view. The quality loss function recognizes that products falling between specific limits are not all equal. The four following statements summarize Taguchi’s philosophy.
    1. We cannot reduce cost without affecting quality.2. We can improve quality without increasing cost.3. We can reduce cost by improving quality.4. We can reduce cost by reducing variation. When we do so, performance and quality will automatically improve.
  • Service Quality:
    http://www.shsu.edu/~mgt_ves/mgt481/lesson1/index.htm
    Time & Timeliness: Customer waiting time, completed on time
    Completeness: customer gets all they asked for
    Courtesy: treatment by employees
    Consistency: same level of service for all customers
    Accessibility & Convenience: ease of obtaining service
    Accuracy: performed right every time
    Responsiveness: reactions to unusual situations
    Conformance Quality:
    Ensuring product or service produced according to design
    Depends ondesign or production process performance of machinery, materials, training.
  • Consumer: Evaluates value for money he is paying for. Expecting after sale satisfaction
    Producer: Highly considerate about:
    Production cost
    Additional quality cost
    Timely product (fearing quality overhead)
    Increased cost of product vs. production quantity
  • Prevention Cost:
    Appraisal Cost:
    Appraisal Cost is a component of 'Cost of Quality'
    This is the cost incurred on Preventing the defects. e.g.
    Cost to establish Methods & Procedures
    Cost to Plan for Quality
    Cost incurred on Training
    Internal Failure Cost:
    Inspection, QC
    External Failure Cost:
    Customer Rebuttal, Transportation, bad repute
  • Appraisal Cost:
    The costs that are incurred in assessing that products/services conform to the requirements. It relates to testing, executing, and examination to assess whether specified quality is being maintained.
    Some example component items of the total appraisal costs are:
    product quality audits,
    process control monitoring,
    inspection and testing of goods,
    and maintenance of test equipment.
  • Base  sales
    $810,400 *100/ 1,760,000.00 =46.04
  • Ref.: http://www.topachievement.com/smart.html
    Creating S.M.A.R.T. Goals
    Specific
    Measurable
    Attainable
    Realistic
    Timely
    Specific - A specific goal has a much greater chance of being accomplished than a general goal. To set a specific goal you must answer the six "W" questions:
    *Who:      Who is involved? *What:     What do I want to accomplish? *Where:    Identify a location. *When:     Establish a time frame. *Which:    Identify requirements and constraints. *Why:      Specific reasons, purpose or benefits of accomplishing the goal.
    EXAMPLE:    A general goal would be, "Get in shape." But a specific goal would say, "Join a health club and workout 3 days a week."
    Measurable - Establish concrete criteria for measuring progress toward the attainment of each goal you set. When you measure your progress, you stay on track, reach your target dates, and experience the exhilaration of achievement that spurs you on to continued effort required to reach your goal.
    To determine if your goal is measurable, ask questions such as......How much? How many? How will I know when it is accomplished?
    Attainable - When you identify goals that are most important to you, you begin to figure out ways you can make them come true. You develop the attitudes, abilities, skills, and financial capacity to reach them. You begin seeing previously overlooked opportunities to bring yourself closer to the achievement of your goals.
    You can attain most any goal you set when you plan your steps wisely and establish a time frame that allows you to carry out those steps. Goals that may have seemed far away and out of reach eventually move closer and become attainable, not because your goals shrink, but because you grow and expand to match them. When you list your goals you build your self-image. You see yourself as worthy of these goals, and develop the traits and personality that allow you to possess them.
    Realistic - To be realistic, a goal must represent an objective toward which you are both willing and able to work. A goal can be both high and realistic; you are the only one who can decide just how high your goal should be. But be sure that every goal represents substantial progress. A high goal is frequently easier to reach than a low one because a low goal exerts low motivational force. Some of the hardest jobs you ever accomplished actually seem easy simply because they were a labor of love.
    Your goal is probably realistic if you truly believe that it can be accomplished. Additional ways to know if your goal is realistic is to determine if you have accomplished anything similar in the past or ask yourself what conditions would have to exist to accomplish this goal.
    Timely - A goal should be grounded within a time frame. With no time frame tied to it there's no sense of urgency. If you want to lose 10 lbs, when do you want to lose it by? "Someday" won't work. But if you anchor it within a timeframe, "by May 1st", then you've set your unconscious mind into motion to begin working on the goal.
    T can also stand for Tangible - A goal is tangible when you can experience it with one of the senses, that is, taste, touch, smell, sight or hearing. When your goal is tangible you have a better chance of making it specific and measurable and thus attainable.
  • Increase input to increase output in such a proportion that ratio is raised.
    Decrease input to decrease output in such a proportion that ratio is raised.
    Input remains same, however output is optimized e.g. wastage control and scrap management, training, labor specialization
    Output remains the same but input is decreased e.g. BPO
    Find out
    Find out
  • Constant improvement is highly desired (TQM)
    Don’t look for rewards… these come later
    Enabling means to open new doors.
    But don’t track to be a dead end. Your project should be extensible. (programmers knows how to make a program extensible)
    Do it right the first time… and every time.
  • The organization's logos in its two official languages, English and French, include the word ISO (pronounced /aɪsoʊ/), and it is usually referred to by this short-form name. ISO is not an acronym for the organization's full name in either official language. Rather, the organization adopted ISO based on the Greek word isos (ἴσος), meaning equal. Recognizing that the organization’s initials would be different in different languages, the organization's founders chose ISO as the universal short form of its name. This, in itself, reflects the aim of the organization: to equalize and standardize across cultures.
  • Management by Objectives
  • Identify organizations that are leaders in these areas - Look for the very best in any industry and in any country. Consult customers, suppliers, financial analysts, trade associations, and magazines to determine which companies are worthy of study.
  • Functional benchmarking - focus single function in order to improve the operation of that particular function. Complex functions such as Human Resources, Finance and Accounting and Information and Communication Technology are unlikely to be directly comparable in cost and efficiency terms and may need to be segregated into processes to make valid comparison.
  • Nature of defect is different in service
    Service Quality Examples:
    Hospitals: timeliness, responsiveness, accuracy
    Grocery Stores: check-out time, stocking, cleanliness
    Airlines: luggage handling, waiting times, courtesy
    Fast food restaurants: waiting times, food quality, cleanliness
  • These tools are also used in Statistical Process Control
    Check Sheets:
    Simple Data Recording Device
    Easy to Design & Implement
    Ensures that data is collected carefully and accurately
    Creativity is important in designing of Check sheet
    You’d be amazed by how many plane crashes are the result of the aircraft running out of fuel — one study has estimated the number at 10 percent since 2000.
    “As a former private pilot, I learned the importance of the simple pre-flight checklist. Making sure your plane is airworthy is not a difficult process — it’s about a 15 minute walkaround — but there are many items to confirm: Are the flaps working in coordinated fashion? Are the tires properly inflated? Radio functioning? Electrical system? Navigation system?” - http://blogs.bnet.com/harvard/?p=358&tag=nl.e713
    Scatter Diagram:
    To identify a relationship of one variable with the other
    Tight Band Indicates the relation
    Cause and Effect Diagram: (Fishbone, Ishikawa Diagram)
    Ishikawa diagram (after the name of Dr. Kaoru Ishikawa
    Fishbone diagram (because of its shape)
    A tool for analyzing and illustrating a process by showing the main causes and sub causes leading to an effect
    Identify the Effect or Quality Problem
    Place it on the right side of a piece of paper
    Identify the major causes:
    Participation by every member
    Quantity of ideas rather than quality of ideas
    Criticism of idea not allowed
    Create a solution oriented atmosphere
    Let the ideas incubate for a period of time
    Pareto Chart:
    A graphical tool for ranking causes from most significant to least significant
    First used for economic theory by Alfredo Pareto
    “Vital few” and “useful many”
    Examples:
    Few customers account for majority of sale
    Few suppliers account for majority of rejected parts
    Few items account for majority of inventory cost
    Constructing a Pareto Diagram:
    Determine the method of classifying the data by problem, cause, non-conformity etc.
    Decide if Rupees, Frequency or both are to be used to rank the characteristics
    Collect data for appropriate time interval or use historical data
    Summarize the data and rank order categories from largest to smallest
    Construct the diagram and construct the vital few
    Flow Chart (Process Diagram):
    Graphical tools that shows the major steps in a process.
    Shows flow of product or service as it moves through various processes
    It becomes easy to visualize the entire system
    Identifies potential trouble spots
    Histogram:
    Shows the frequency of Occurrence of a Variable
  • Means many things to many people - it is usually associated with cost.
    Fitness for purpose - J M Duran
    Conformance to requirements - P B Crosby
    Providing customers, both internal and external, with products and services that fully satisfy their negotiated requirements.
    Fitness for purpose and use
    Conformance quality - conforming to specifications; having a product or service that meets predetermined standards.Requirements quality - meeting total customer requirements; having perceived attributes of a service or product that meet or exceed customer requirements.
    7. "Quality is the total composite product and service characteristics of marketing, engineering, manufacturing and maintenance through which the product and service in use will meet the expectations by the customer."
    Armand Feigenbaum
    8. "Totality of characteristics of an entity that bear on its ability to satisfy stated and implied needs.“ ISO 8402 : 1994
    What Quality means in: JAPAN-Perfection
    GERMANY-Conformance to Specification
    FRANCE-A Luxury
    AMERICA-It Works Doesn't It!
  • Inspection
    Quality Control
    Quality Assurance
    Service Quality Management
    Continuous Quality Improvement
  • NB After the second world war the British Unit was disbanded and whilst the must larger American unit went on to form the American Society of Quality Control
  • http://www.deming.org/deminghtml/wedi.html
  • http://www.deming.org/deminghtml/wedi.html
  • Deming:
    “inspection with the aim of finding bad ones and throwing them out is too late, ineffective and costly. Quality comes not from inspection but improvement of the process”
  • Kaizen 5 steps plan
  • Transcript of "Quality Today [TQM] - Kamran Khan [chromeis.com]"

    1. 1. Quality Today Presented by: Kamran Shaukat Ali Khan chromeis.com/TQM
    2. 2. Download latest version of this File !  This file was downloaded from: chromeis.com/TQM  Download latest version of the slides from above URL.  Feel free to distribute the file and share knowledge  The file is available as Read-Only and does not require password to open.  View in Presentation Mode – the slides animation is designed purposely to nurture audience understanding  Direct your feedback to above URL or to author at kamran.khan@chromeis.com Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute 2
    3. 3. 3 Quality Today  What is Quality  Quality Dimensions & Obstacles  Cost of Quality  Productivity Enhancement  Leadership for Quality  ISO and other Models  Total Quality Management  Benchmarking vs Competitive Analysis  Statistical Process Control  Check Sheet and other tools  Six-Sigma Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    4. 4. 4 ABSTRACT -- what means ‘quality’ today? -- what sneaks quality in a product -- Myths about quality -- using modern tools to establish quality discipline Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    5. 5. 5 INTRODUCTION  Originators of Quality?  Why Quality (Significance)  …  An important determinant of business profitability  Positively & significantly related to higher return on investment Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    6. 6. 6 An innovation happens to CREATE or SERVE the market NEED Invention (never existed) Imitation (copying) Technology Lead (e.g. Pentium Processors) Innovation (something new) Market Lead (e.g. Common Utensils) Why Quality…? Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    7. 7. 7 Quality Today What is Quality  Quality Dimensions & Obstacles  Cost of Quality  Productivity Enhancement  Leadership  ISO and other Models  Total Quality Management  Six-Sigma Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    8. 8. 8 Definitions  Conformance to Specifications  Conformance to Standards  Freedom from defects  A Degree of Excellence  Fitness for intended Purpose/Use … Obsolete Definitions Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    9. 9. 9 Definitions  Customer Satisfaction  Quality is the totality of characteristics of an entity that bears on its ability to satisfy the stated or implied needs. … Today’s Definition Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    10. 10. 10 Means many things to many people - it is usually associated with cost.  Fitness for purpose – J M Duran  Conformance to requirements  Providing customers, both internal and external, with products and services that fully satisfy their negotiated requirements. – P B Crosby  The degree of excellence of a thing. – Concise Oxford Dictionary  Totality of features and characteristics of a product or service that bears upon its ability to satisfy stated or implied needs. – International Standards Organisation What is Quality? Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    11. 11. 11 What is Quality? …cont.  Quality is a predictable degree of uniformity and dependability, at low cost and suited to the market. – Dr Edwards Deming  Quality is meeting the (stated) requirements of the customer- now and in the future. – Mike Robinson  Conformance quality - conforming to specifications; having a product or service that meets predetermined standards.  Requirements quality - meeting total customer requirements; having perceived attributes of a service or product that meet or exceed customer requirements. Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    12. 12. 12 What is Quality? …cont.  Quality is the total composite product and service characteristics of marketing, engineering, manufacturing and maintenance through which the product and service in use will meet the expectations by the customer – Armand Feigenbaum  Totality of characteristics of an entity that bear on its ability to satisfy stated and implied needs – ISO 8402 : 1994 Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    13. 13. 13 Definition:  Customer Delight … Tomorrow’s Definition Customer Delight Customer Satisfaction Bugs free – Fulfilling Req. Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    14. 14. 14 Basic Quality & Excitement Quality are both UNSPOKEN Basic Quality Excitement Quality More About Quality  Un-stated Requirements  Stated Requirements  Additional features as pleasant surprises to delight customer Performance Quality Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    15. 15. 15 Satisfy the internal as well as external customers Emphasis on Improvement rather than Maintenance Encourage Collaboration rather than competition Recognize Team Effort Communication Improvement Establish a System Train & Coach rather than supervise …and a whole lot more!! Empower Rather than Controlling subordinates Strong Commitment to Quality Prefer Quality over Price Emphasis: Prevention is better than Detection Learn from Problems (PDSA) What to do ? Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    16. 16. 16 Quality Check Theory – Shewhart:1931 58.4 58.6 58.8 59 59.2 59.4 59.6 59.8 60 60.2 1 2 3 4 5 6 7 8 59-60 is within Quality but above trend is threatening Req. 59-60 ml of medicine to be filled in bottle. Refer to graph and observe the statistics Identify 2 possible concerns regarding Quality Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    17. 17. 17 Quality Loss Function – Taguchi: 1950  Customer Requires delivery in 4-6 Days  Actual Delivery Takes: 4 Days in routine  Actual Delivery Took: 5 Days  Customer Requirement is being met  But Quality has been compromised Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    18. 18. 18 Quality Today  What is Quality  Quality Dimensions & Obstacles  Cost of Quality  Productivity Enhancement  Leadership for Quality  ISO and other Models  Total Quality Management  Six-Sigma Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    19. 19. 19 Dimensions of Quality – Gravin  Performance  Features  Conformance  Reliability  Durability  Service  Response  Aesthetics  Repute : Stated Req. : Additional offering : To Standards/ISO/CMM : Consistency in performance : Life time of product/service : After sale support/behavior : Curtsey & Delivery time etc : Looks & beautifying things : brand name/advertising Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    20. 20. 20 Meaning of Quality The meaning of Quality Consumers PerspectiveProducts Perspective Quality of Conformance ………………………… Conformance to specifications + Cost Quality of design ………………………… Quality Characteristics + Price Fitness for consumer use Production Marketing Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    21. 21. 21 Obstacles to Quality Different hindrances in achieving Quality Misconception: Additional cost Adherence Poor Reading habits Resistance to Change Poor Writing habits Inertia in accepting Quality Standardization is absolute Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    22. 22. 22 Rehabilitation and Cultural Change The Clues are there!  Official Lifestyle Change (+ve)  Top Management Involvement  Instill the importance of Quality (Quality Circle)  Everyone’s responsibility  Concept of Internal & External customers  Quality at source (Reduced Inspection)  Focus on using Strength rather then weaknesses  Quality consistency (high priority rather than level of output) Trainings for fresh “Train the Trainer” Individual Development Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    23. 23. 23 Strategic Implications of QMS  Quality is key to effective strategy  Clear strategic goal, vision, mission  High quality goals  Operational plans & policies  Feedback mechanism  Strong leadership Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    24. 24. 24 Quality Today  What is Quality  Quality Dimensions & Obstacles Cost of Quality  Productivity Enhancement  Leadership for Quality  ISO and other Models  Total Quality Management  Six-Sigma Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    25. 25. 25 Cost of Quality  Cost of achieving good quality  Prevention  Appraisal  Cost of poor quality  Internal failure costs  External failure costs Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    26. 26. 26 Quality is Free – Crosby:1950 Preventing: Cost of poor quality  Prevention Cost  Appraisal Cost  Internal Failure Cost  External Failure Cost  Myths  High Cost  Overhead  Wastage of Money 0 5 10 15 20 25 30 Cost Poor Q. Cost Time/ Quality Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    27. 27. 27 Quality Index Example Quality Costs $ 2004 2005 2006 2007 Prevention $ 27,000.00 41,500.00 74,600.00 112,300.00 Appraisal $ 155,000.00 122,500.00 113,400.00 107,000.00 Internal failure $ 386,400.00 469,200.00 347,800.00 219,100.00 External failure $ 242,000.00 196,000.00 103,500.00 106,000.00 Total $ 810,400.00 829,200.00 639,300.00 544,400.00 Accounting: Sales $ 4,360,000.00 4,450,000.00 5,050,000.00 5,190,000.00 Mfg. Costs $ 1,760,000.00 1,810,000.00 1,880,000.00 1,890,000.00 Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    28. 28. 28 Quality Index Total quality Cost *100/base $810,400 *100 / 4,360,000 = 18.58 Year Sales Cost 2004 18.58 46.04 2005 18.63 45.18 2006 12.66 34.00 2007 10.49 28.80 Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    29. 29. 29 Quality Indexes  Labor Index quality cost / labor hours  Cost Index quality cost / manufacturing cost  Sales Index quality cost / sales  Production Index quality cost / units produced Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    30. 30. 30 Quality Today  What is Quality  Quality Dimensions & Obstacles  Cost of Quality Productivity Enhancement  Leadership for Quality  ISO and other Models  Total Quality Management  Six-Sigma Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    31. 31. 31 Quality and Productivity  Productivity = output / input  Fewer defects increase output  Improved Quality reduces inputs Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    32. 32. 32 Productivity Enhancement Techniques Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    33. 33. 33 How Should I…? Adjusting Perceptions… Commitment Continuous Improvement No Expectation of Quick Reward Enabling Vs. Restricting Organized Team Synergy Leadership Outcome Empowerment Innovation Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    34. 34. 34 Quality Today  What is Quality  Quality Dimensions & Obstacles  Cost of Quality  Productivity Enhancement Leadership for Quality  ISO and other Models  Total Quality Management  Six-Sigma Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    35. 35. 35  “Leadership is the ability to inspire people to make a total, willing and voluntary commitment to accomplishing or exceeding organizational goals” Leadership and Quality Management  Understand Employees Needs  Understand Individuals’ Beliefs Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    36. 36. 36 Leadership Characteristics  Walk the talk  Persuasiveness  Positive Influence  Good Communication  Positive Role Model  Balanced Commitment Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    37. 37. 37 Types of Leadership  Delegating  Assigns responsibilities  Assigns authority  Provides minimal input  Verifies work  Recognizes employees for accepting responsibility  Directing  Engages in unilateral decision making  Expects employees to follow order  Give information about what to do  Gives information about how to do  Gives information about why it should be done  Recognizes employees for following instructions Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    38. 38. 38 Types of Leadership Styles  Participative  Provides guidance  Gets involved when necessary  Accepts works and decisions of employees  Helps others analyze and solve problems  Recognizes employees for seeking support  Consultative  Seeks input, advice and suggestions  Makes final decision  Recognizes employees for their contribution  … Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    39. 39. 39 Misconceptions about Leaders  Leaders Exists at the top  Leaders are born not made  Leaders are Charismatic  Leadership is rare Skill  Leaders don’t need to be learners Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    40. 40. 40 Leadership for Quality  Customer (both internal & External) Focus  Obsession with Quality  They empower rather than control Subordinates  Emphasize collaboration rather than competition  Regular & Continuous education & Training programs  Try to improve communication (continuously)  Looking for Faults in a system not specific Problem  Select suppliers on the basis of quality and not price  Teamwork  Establish organizational system to support quality effort Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    41. 41. 41Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    42. 42. 42 Habits of Highly Effective People  Proactive not reactive  There is nothing I can do ::Lets look at our alternatives  I must ::I prefer  She makes me so mad ::I control my own feelings  Begin with the End in Mind  Never compromise with honesty  Keep a sense of humor  Exercise daily (healthy body  healthy brain)  Never fear mistakes  Go through leadership articles daily (regularly read about world leaders)  Put First things First  Think Win-Win  First understand, Then be understood  Synergy  Stop blaming – take responsibility Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    43. 43. 43 Employees & Quality Improvement  Quality circles  Employees’ suggestions  Process improvement teams  Self-managed work teams Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    44. 44. 44 The Quality Circle Process Organization 8-10 members same area moderator Problem Analysis Causes & effect data collection & analysis Training Group processes Data collection Problem analysis Presentation Implementation Monitoring Solution Problem results Problem ID List alternatives Consensus Brainstorming Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    45. 45. 45 Customer Orientation Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    46. 46. 46 Customer & Quality Management Customers can be:  Internal Customers  What is needed from me?  What is use of my output?  Gaps between what is needed & what one gets  External Customers (customer defined values)  Performance  Features  Service  Warranty  Price  Reputation Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    47. 47. 47 Customer value Analysis (CVA)  Customer Value Analysis:  Determine attributes customers value most  Rate the relative importance of Attributes  Assess your organization performance against these attributes  Let customers Compare these attributes with your competitors  Repeat the process periodically  Issues in hand:  Understand your Customer  Identify customers’ needs  Continuous communication with your customer Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    48. 48. 48 Quality Today  What is Quality  Quality Dimensions & Obstacles  Cost of Quality  Productivity Enhancement  Leadership  ISO and other Models  Total Quality Management  Six Sigma Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    49. 49. 49 The Four Absolutes of Quality  Quality is conformance to requirements - Do what you said you would do  The system for producing quality is NOT prevention, NOR is it appraisal - Solve problems permanently  The performance standard is ZERO defects - Right first time and every time  Quality is measured by the cost of Non-Conformance - Repair / re-work is paid for out of profits Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    50. 50. 50 Traditional Way of Quality Control  Takes place  During  And at the end of the process  Three Main points where inspection is done  When raw material is purchased  When production is going on  When product ready to be dispatched  Disadvantages:  Does not add value  Is not timely  Done by Quality Control Inspection Team Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    51. 51. 51 ISO 9000 Categories  ISO 9001 – Suppliers and Designers  ISO 9002 – Production  ISO 9003 – Inspection and Test  ISO 9004 – Quality Management  ISO 14000 – Environmental Hazards  ISO 27001 – Security Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    52. 52. 52 Implications of ISO 9000  Adopted by U.S. Navy, DuPont, 3M, AT&T & others  Certification required by many foreign firms  U.S. firms export > $100 billion/yr Europe  Truly international in scope  ISO Accreditation  European registration  3rd party registrar assesses quality program  European Conformity (CE) mark authorized  United States 3rd party registrars  American National Standards Institute (ANSI)  American Society of Quality Control (ASQC)  Registrar Accreditation Board (RAB) Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    53. 53. 53 International Organization for Standardization  International standardization began in the electro- technical field  ISO’s Principal activity is to develop technical Standards  Network of the national standards institutes of 156 countries  ISO is a non-governmental organization Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    54. 54. 54 Members of ISO  Member Bodies  Full members  Each have one vote  Correspondent Members  Pay reduced membership fees  Do not yet have a fully developed national standards activity  Are entitled to participate in any policy or technical body as observers  No voting rights  Subscriber Members  Are institutes from countries with very small economies Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    55. 55. 55 The hallmarks of the ISO brand  Equal footing  Each participating member in ISO has one vote  Voluntary  As a non-governmental organization, ISO has no legal authority to enforce their implementation  Market-driven  ISO develops only those standards for which there is a market requirement  Consensus  ISO incorporate any changes after consent of members  Worldwide  Worldwide operations – worldwide members  Global Industries  Having members from various industries worldwide to make is generic model Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    56. 56. 56 ISO 9000 & ISO 14000  Generic Management System Standards  Generic means that the same standards can be applied  to any organization, large or small  whatever its product - including whether its "product" is actually a service  in any sector of activity  whether it is a business enterprise, a public administration, or a government department  Management system refers to what the organization does to manage its processes, or activities  ISO 9000 is concerned with “Quality Management”  concerns with: customer's quality requirements  applicable regulatory requirements  aims to: enhance customer satisfaction  achieving continual improvement of its performance in pursuit of these objectives  ISO 14000 is Primarily concerned with “Environment Management” Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    57. 57. 57 Quality Management Principles  Customer Focus  Leadership  Involvement of People  Process approach  System approach  Continual improvement  Factual approach to decision making  Mutual beneficial supplier relationship Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    58. 58. 58 Quality Today  What is Quality  Quality Dimensions & Obstacles  Cost of Quality  Productivity Enhancement  ISO and other Models  Total Quality Management  Six Sigma Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    59. 59. 59 To Accompany Ritzman & Krajewski, Foundations of Operations Management © 2003 Prentice-Hall, Inc. All rights reserved.  Product Design  Process Design  (Purchasing)  Benchmarking  Problem Solving Tools TQM Wheel Customer satisfaction Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    60. 60. 60 TQM Principles 1. Top management leadership (Long term) 2. Customer Focus 3. Quality as a strategic issue 4. Statistical Quality Control 5. Shared problem solving 6. Continuous Improvement (business and production Process) 7. Training & education for all employees 8. All employees responsible for quality Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    61. 61. 61 TQM: Deming Philosophy PlanPlan DoDo CheckCheck ActAct DemingDeming WheelWheel Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    62. 62. 62 Deming’s 14 Points 1. Create and communicate to all employees a statement of the aims and purposes of the company. 2. Adapt to the new philosophy of the day; industries and economics are always changing. 3. Build quality into a product throughout production. 4. End the practice of awarding business on the basis of price tag alone; instead, try a long-term relationship based on established loyalty and trust. 5. Work to constantly improve quality and productivity. Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    63. 63. 63 Deming’s 14 Points 6. Institute on-the-job training. 7. Teach and institute leadership to improve all job functions. 8. Drive out fear; create trust. 9. Strive to reduce intradepartmental conflicts. Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    64. 64. 64 Deming’s 14 Points 10. Eliminate exhortations for the work force; instead, focus on the system and morale. 11. a- Eliminate work standard quotas for production. Substitute leadership methods for improvement. b- Eliminate MBO. Avoid numerical goals. Alternatively, learn the capabilities of processes, and how to improve them. 12. Remove barriers that rob people of pride of workmanship 13. Educate with self-improvement programs. 14. Include everyone in the company to accomplish the transformation. Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    65. 65. 65 Benchmarking  Standard or point of reference  “Benchmarking is a systemic method by which organization can measure themselves against the best industry Practices”  “Benchmarking is the process of comparing and measuring an organization’s operations or its internal processes against those of a best-in-class performer from inside or outside its industry” Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    66. 66. 66 Benchmarking  Continuous, systematic process that measures products, services and practices against those of industry leaders. Basic Steps  Planning  Analysis  Integration  Action Planning  Determine what to Benchmark  Form a benchmark team  Identify benchmarking partners  Determine the measures of performance  Collect the data Analysis  Determine the gap between your firm’s current performance and that of the benchmark firms  Identify the causes of significant gaps Integration  Establish goals  Obtain the support of managers who must provide resources for accomplishing the goals Action  Develop action plans and team assignments  Implement the plans  Monitor progress and recalibrate the benchmarks as improvement is made Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    67. 67. 67 Types of Benchmarking  Process benchmarking - identifying and observing the best practices from one or more benchmark firms.  Financial benchmarking - performing a financial analysis and comparing the results in an effort to assess overall competitiveness and productivity.  Performance benchmarking - allows the initiator firm to assess their competitive position by comparing products and services with target firms.  Product benchmarking - the process of designing new products or upgrades to current ones. This process can sometimes involve reverse engineering which is taking apart competitors products to find strengths and weaknesses.  Strategic benchmarking - involves observing how others compete. This type is usually not industry specific, meaning it is best to look at other industries.  Operational benchmarking - embraces everything from staffing and productivity to office flow and analysis of procedures performed.  Functional benchmarking - focus single function in order to improve the operation of that particular function. Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    68. 68. 68 What is our Performance level? How do we do it? What are others Performance level? How did they get there? Creative adaptation Breakthrough Performance Key Points:  It is a mean of identifying processes that require major change  Done between consenting companies (which may or may not be competitors)  Compares your process or practice with target company to find “secrets of success”  Equally beneficial for large and small companies Benchmarking Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    69. 69. 69 Benchmarking vs. Competitive analysis  Competitive analysis involves comparing competitor’s product against yours.  While Benchmarking involves comparing how product is engineered, manufactured, distributed and supported. Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    70. 70. 70 Benchmarking Process  Obtain management commitment  Understand Current Performance  Identify your strong and weak processes and document them (Baseline your own processes)  Decide what to benchmark (Find out high impact areas i.e. Critical success factors)  Form benchmarking teams  Research the best-in-class  Collect data  Analyze the data and establish the gap  Plan action to close the gap/surpass  Implement change  Monitor Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    71. 71. 71  Will and Commitment  Vision/Objective link  Goal to become the best (& simply not to improve)  Openness to new ideas  Process Documented  Understanding of existing Processes, Products, Services and customer needs  Process Analysis skills  Research, Communication and Team building skills Prerequisites to Benchmarking Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    72. 72. 72  Internal Focus  Unrealistic timetable  Poor team composition  Settling for ordinary-in-class  Insensitivity to Partners  Limited Top Management Support Obstacles to Benchmarking Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    73. 73. 73 Statistical Process Control  Take periodic samples from process  Plot sample points on control chart  Determine if process is within limits  Prevent quality problems Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    74. 74. 74 Statistical Process Control  Monitors standards, makes measurements and take corrective actions as the product or service is being produced.  Stats  Collection  Tabulation  Analysis  Presenting  For Decision making  Population and Sample  It is a technical tool  Controls the process  Has the capability to improve it Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    75. 75. 75 SPC: Variation  Common Causes  Variation inherent in a process  Can be eliminated only through improvements in the system  Special Causes  Variation due to identifiable factors  Can be modified through operator or management action  Types of Data Collected:  Attribute data  Product characteristic evaluated with a discrete choice Good/bad, yes/no  Variable data  Product characteristic that can be measured Length, size, weight, height, time, velocity Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    76. 76. 76 Development of Control Chart  Based on in-control data  If random causes present discard data  Correct control chart limits  Scale [brackets]  USL & LSL  Defects or variance Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    77. 77. 77 Check Sheets  A Process is in Control if:  No sample points outside limits  Most points near process average  About equal number of points above & below centerline  Points appear randomly distributed  Remember:  Ensures that data is collected carefully and accurately  Creativity is important in designing of Check sheet  … Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    78. 78. 78 Tools to Measure Quality  Check Sheets  Scatter Diagram  Cause & Effect Diagram  Pareto Chart  Flow Charts  Histograms  Process Flow Diagram PopulationandSample Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    79. 79. 79 Cause and effect Diagram  Also called  Ishikawa diagram after Dr. Kaoru Ishikawa  Fishbone diagram (because of its shape)  C & E are used to find out either the bad effect or good effect  Team participation Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    80. 80. 80 People Material Work Methods Govt. Reg.EquipmentEnvironment Quality Causes Effects C&E Diagram: Construction Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    81. 81. 81 House Paint Peeling Material Work Method EnvironmentEquipment brush dirty bad bristles humidity Air pollution Temperature Acid Rain C&E Diagram: House Paint Peeling Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    82. 82. 82 C&E Diagram: Procedure  Identify the Effect or Quality Problem  Place it on the right side of a piece of paper  Identify the major causes  Participation by every member  Quantity of ideas rather than quality of ideas  Criticism of idea not allowed  Create a solution oriented atmosphere  Let the ideas incubate for a period of time Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    83. 83. 83 Pareto Diagram: Procedure  Determine the method of classifying the data by problem, cause, non-conformity etc.  Decide if Rupees, Frequency or both are to be used to rank the characteristics  Collect data for appropriate time interval or use historical data  Summarize the data and rank order categories from largest to smallest  Construct the diagram and construct the vital few Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    84. 84. 84 Pareto Diagram  First used for economic theory by Alfredo Pareto  “Vital few” and “useful many”  Examples  Few customers account for majority of sale  Few suppliers account for majority of rejected parts  Few items account for majority of inventory cost Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    85. 85. 85 NonconformityFrequency Painting Welding Molding Packing 49% 31% 14% 6 % Pareto Diagram: Constructing Packing Painting Welding Molding 21% 53% NonconformityRupees Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    86. 86. 86 Process Flow Diagram  Shows flow of product or service as it moves through various processes  It becomes easy to visualize the entire system  Identifies potential trouble spots  Measure of Dispersion  Range  R= X (highest) - X (lowest)  Standard Deviation  Measure of Central Tendency  Average  Mean  Median  Mode Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    87. 87. 87 Production exec Telephone Fax Letter Log In Notify Customer -delivery date Schedule Production Inventory Hold Contract Review Credit Check PFD – Order Entry Activity Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    88. 88. 88 Defining Quality Quantifying…  “Degree to which a set of inherent characteristics fulfills requirements”  Q = P/E  Where Q is quality  P is Performance  E is Expectations Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    89. 89. 89 Where to apply QA  Design  Process  Human  Deming’s Philosophy:  “inspection with the aim of finding bad ones and throwing them out is too late, ineffective and costly. Quality comes not from inspection but improvement of the process” Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    90. 90. 90 Quality Eras Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    91. 91. 91 Early 1900’s: Tailorism  The philosophy of job decomposing which separated the tasks of the craftsman into deskilled isolated operations  The links between Customer/ Design/ Manufacture/ Inspection were broken craftsman inspection product product inspection Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    92. 92. 92 History (cont..)  1920’s: Bell Telephone Labs  A group was formed to develop new theories and methods of inspection to improve and maintain quality  This is where the term Quality Assurance was first used  Developed  Control Charts  Sampling Techniques  Economics of Quality  1930’s: First book on Quality Control  WW-2: US military adopts a system of statistical sampling and the imposition of strict standards to be met by suppliers. - time Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    93. 93. 93  1950’s: Deming and Juran’s introduction to Japan of Statistical Quality Control Techniques  juran.com/drjuran.html History (cont..) Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    94. 94. 94 History (cont..)  Industrial Revolution:  applied to the manufacture of rifles for the US Army  Made high demands on the manufacturing process  Quality Assurance imperative (especially for large buyers) Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    95. 95. 95  1960’s and 70’s : Increasing Japanese domination of large sectors of world trade in manufacturing  1972 Institute of Quality Assurance (IQA) established History (cont..)  Early 90’s: Japan still increasing its domination of manufacturing sectors and services; with one of the fastest growing economies  The West in recession and focusing heavily on quality systems Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    96. 96. 96 Quality is free - the optimum is zero Philip Crosby defects. W. Edwards Deming Deming’s 14 points. How to use statistics. Armand Feigenbaum Total quality control. Joseph Juran Quality as fitness for use, rather than conformance to specification. Genichi Taguchi Loss function. Minimize variation. Kaoru Ishikawa Quality circles and cause and effect diagrams. More Quality Gurus Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    97. 97. 97 Problem Solving… Different Approaches…  Juran’s Trilogy  Planning  Control  Improvement  PDSA (Shewhart’s and Deming)  Kaizen (Japanese approach)  Reengineering  Six Sigma Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    98. 98. 98 Juran’s Trilogy  Plan  Identify customers (internal/external)  Discover the Needs  Develop Product/Service features  Develop Process able to produce product/service features  Control  Determine what to be controlled and their unit of measure  Set goals for the control  Measure actual performance  Compare actual performance to goals  Act on difference  Improvement  Attain levels of performance that are higher than current levels  Establish Quality Council  Adopt Problem Solving Methods Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    99. 99. 99 Act Plan DoStudy Identify the opportunity Analyze the Process Develop the Optimal Solution Implement Study the results Standardize The solution Plan for future PDCA / PDSA Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    100. 100. 100 PDCA / PDSA  Identify the Opportunities  Identify the problems  Prioritize the Problems  Form a team  Define the Scope (sphere of problem observed)  Give clear authority, objective, scope, composition and direction and control to the team  Analyze the Current Process  Establish Process Flow Diagram  Define Target Performance Measures  Analyze the available data  If needed, change data collection tools/techniques  Determine root cause, using different techniques Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    101. 101. 101 PDCA / PDSA  Develop the Optimal Solution  Creativity and Brainstorming needed  One of the following may be adopted  Creating new process  Combine different processes  Modify the existing process  Implement Changes  Preparing the implementation plan  5Ws and How  Obtain Approval  From the Quality Council  From the departments where change will be implemented  Implementing the Process Improvements Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    102. 102. 102 PDCA / PDSA  Study the Results  Monitor the change  Evaluate the Change  Study the effectiveness of the improvement Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    103. 103. 103 Kaizen 5 S…  Seiri : Proper Arrangement  Seiton : Put things in order  Seiso : Clean up  Shiketsu : Personal Cleanliness  Shitsuke : Discipline  Kai: “change”  Zen: “good” Kaizen Check List…  Personnel  Work techniques  Work Methods  Procedures  Time  Facilities  Equipment  Tools  Material  Plant layout  Paradigms (mind sets) Kaizen involves:  People  Processes  Products Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    104. 104. 104 Quality Today  What is Quality  Quality Dimensions& Obstacles  Cost of Quality  ISO and other Models  Total Quality Management  Six Sigma Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    105. 105. 105 Quality Improvement The Pursuit of QUALITY is a JOURNEY not a DESTINATION! Where are you; on your STARTING blocks? QUALITY starts here and NOW! Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
    106. 106. 106 Six-Sigma – What is it?  Six Sigma is a business management strategy, originally developed by Motorola, that today enjoys wide-spread products in diversified sectors of industry.  Six Sigma seeks to identify and remove the causes of defects and errors in manufacturing and business processes.  It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization ("Black Belts" etc.) who are experts in these methods.  Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified financial targets (cost reduction or profit increase)  Innovation Algorithm DMAIC (Define-Measure-Analyze-Improve-Control) Design for Six Sigma Algorithm DMADV (Define-Measure-Analyze-Design-Verify)  (DFFS) Makes Integrative Use of: Various strategies and tools from Statistics, QMS, Business, Engineering etc Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute

    ×