2. Outline
What is Quality?
History of Quality Methodology
Introduction to Process
Deming’s Principles
Taguchi’s Contributions And Philosophy
Total Quality Management
Quality Improvement Tools
Costs related to quality
Benefits/Drawbacks
3. What does the word “quality” mean to
you?
Think about your past experiences staying at
various hotels. Did you stay at a “quality”
hotel? What about the experience made it a
“quality” experience for you?
Think about a product you bought. How can
you define its “quality”?
4. Dimensions of Quality
Garvin (1987)
1. Performance:
Will the product/service do the intended job?
2. Reliability:
How often does the product/service fail?
3. Durability:
How long does the product/service last?
4. Serviceability:
How easy to repair the product / to solve the
problems in service?
5. Dimensions of Quality
5. Aesthetics:
What does the product/service look/smell/sound/feel
like?
6. Features:
What does the product do/ service give?
7. Perceived Quality:
What is the reputation of the company or its
products/services?
8. Conformance to Standards:
Is the product/service made exactly as the
designer/standard intended?
6. Service Quality
Service quality is even more difficult to define than
product quality.
This often results from wide variation created by
high customer involvement.
The example is fountain pen and food service.
7.
8.
9.
10. Quality in different areas of society
Area Examples
Airlines On-time, comfortable, low-cost service
Health Care
Correct diagnosis, minimum wait time, lower
cost, security
Food Services Good product, fast delivery, good environment
Postal Services fast delivery, correct delivery, cost containment
Academia
Proper preparation for future, on-time
knowledge delivery
Consumer Products Properly made, defect-free, cost effective
Insurance Payoff on time, reasonable cost
Military Rapid deployment, decreased wages
Automotive Defect-free
Communications Clearer, faster, cheaper service
11. What is Quality?
Conformance to specifications (British Defense
Industries Quality Assurance Panel)
Conformance to requirements (Philip Crosby)
Fitness for purpose or use (Juran)
A predictable degree of uniformity and dependability, at
low cost and suited to the market (Edward Deming)
Synonymous with customer needs and expectations (R
J Mortiboys)
Meeting the (stated) requirements of the customer- now
and in the future (Mike Robinson)
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)
12. What is Quality?
“The degree to which a system, component, or
process meets
(1) specified requirements, and
(2) customer or users needs or expectations” – IEEE
The totality of features and characteristics of a
product or service that bears on its ability to satisfy
stated or implied needs” – ISO 8402
Degree to which a set of inherent characteristics
fulfils requirements – ISO 9000:2000
14. Deming’s 14 Principles.
1. “Create Constancy of Purpose”
Create constancy of purpose toward improvement of
product and service, with the aim to become competitive
and to stay in business, and to provide jobs.
2. “Adopt A New Philosophy”
Quality costs less not more
Superstitious learning to be avoided i.e. when the connection between
the cause of an action and the outcomes experienced aren't clear
The call for major change
Stop looking at your competition and look at your customer instead
3. “Cease Dependence On Inspection For Quality”
Quality does not come from inspection
Mass inspection is unreliable, costly, and ineffective
Inspectors fail to agree with each other
Inspection should be used to collect data for process control
15. Deming’s 14 Principles.
4. “End Proactive Awarding Of Business Based On Price Alone”
Price alone has no meaning
Change focus from lowest inital cost to lowest cost
Work toward a single source and long term relationship
Establish a mutual confidence and aid between purchaser and
vendor
5. “Improve Every Process Constantly / Forever”
Quality starts qith the intend of management
Teamwork in design is fundamental
Forever continue to reduce waste and continue to improve
Putting out fires is not improvement of the process
6. “Institute Training”
Management must provide the setting where workers can be
succesful
Management must remove the inhibitors to good work
Management needs an appreciation of variation
This is management’s new role
16. Deming’s 14 Principles.
7. “Adopt And Institute Leadership”
Remove barriers to pride of workmanship
Know the work they supervise
Know the difference between special and common cause of
variation
8. “Drive Out Fear”
The common denominator of fear:
Fear of knowledge
Performance appraisals
Management by fear or numbers
9. “Break Barriers Between Staff Areas”
Know your internal suppliers and customers
Promote team work
10. “Eliminate Slogans, Exhortations And Targets”
They generate frustration and resentment
Use posters that explain what management is doing to improve
the work environment
17. Deming’s 14 Principles.
11. “Eliminate Numerical Quotas”
They impede quality
They reduce production
The person’s job becomes meeting a quota
12. “Remove Barriers That Rob Pride Of Workmanship”
Performance appraisal systems
Production rates
Financial management systems
Allow people to take pride in their workmanship
13. “Institute Programs For Education And Self Improvement”
Commitment to lifelong employment
Work with higher education needs
Develop team building skills
14. “Put Everybody In The Company To Work For This
Transformation”
Struggle over the 14 points
Take pride in new philosophy
Include the critical mass of people in the change
18. Taguchi’s Contribution
In the early 1980s, Prof. Genechi
Taguchi introduced his approach to
using experimental design for
1) Designing products or processes so that they are robust to
environmental conditions.
2) Designing/developing products so that they are robust to
component variation.
3) Minimizing variation around a target value. He developed
Quality loss function
By robust, we mean that the product or process performs
consistently on target and is relatively insensitive to factors that
are difficult to control.
19. Taguchi Philosophy
Recommends: statistical experimental
design methods have to be used for
quality improvement, particularly
during parameter and tolerance
design phases.
Key component: reduce the variability around the
target (nominal) value.
20. TQM Definition
Total quality management (TQM) is the
continual process of detecting and reducing
or eliminating errors in manufacturing,
streamlining supply chain management
,improving the customer experience, and
ensuring that employees are up to speed with
training.
21. 21
TQM Philosophy
TQM Focuses on identifying quality problem root
causes
Encompasses the entire organization
Involves the technical as well as people
Relies on seven basic concepts of
Customer focus
Continuous improvement
Employee empowerment
Use of quality tools
Product design
Process management
Managing supplier quality
22. 22
TQM Philosophy - concepts
Focus on Customer
Identify and meet customer needs
Stay tuned to changing needs, e.g. fashion styles
Continuous Improvement
Continuous learning and problem solving, e.g.
Kaizen, 6 sigma
Plan-D-Study-Act (PDSA)
Benchmarking
Employee Empowerment
Empower all employees; external and internal
customers
23. 23
TQM Philosophy– Concepts con’t
Team Approach
Teams formed around processes – 8 to 10 people
Meet weekly to analyze and solve problems
Use of Quality Tools
Ongoing training on analysis, assessment,
and correction, & implementation tools
Studying practices at “best in class”
companies
24. Rev. 03/02/04 SJSU Bus 140 - David Bentley 24
Process Improvement Tools
Process flowcharts
Check sheets
Scatter diagrams
Histograms
Pareto analysis (charts)
Cause-and-effect diagrams
(Ishikawa/Fishbone)
Control charts
25. Rev. 09/06/01 SJSU Bus 140 - David Bentley 25
Flowcharts
Shows unexpected complexity, problem
areas, redundancy, unnecessary loops, and
where simplification may be possible
Compares and contrasts actual versus ideal
flow of a process
Allows a team to reach agreement on
process steps and identify activities that may
impact performance
Serves as a training tool
26. Rev. 09/06/01 SJSU Bus 140 - David Bentley 26
Check Sheet
Creates easy-to-understand data
Builds, with each observation, a clearer picture
of the facts
Forces agreement on the definition of each
condition or event of interest
Makes patterns in the data become
obvious quickly
xx
xxxxxx
x
27. Rev. 09/06/01 SJSU Bus 140 - David Bentley 27
Scatter Diagram
Supplies the data to confirm a hypothesis that
two variables are related
Provides both a visual and statistical means
to test the strength of a relationship
Provides a good follow-up to cause and effect
diagrams
*
* *
* *
*
28. Rev. 09/06/01 SJSU Bus 140 - David Bentley 28
Histogram
Displays large amounts of data that are
difficult to interpret in tabular form
Shows centering, variation, and shape
Illustrates the underlying distribution of the
data
Provides useful information for predicting
future performance
Helps to answer the question “Is the process
capable of meeting requirements?
29. Rev. 09/06/01 SJSU Bus 140 - David Bentley 29
Pareto Diagram
Helps a team focus on causes that have the
greatest impact
Displays the relative importance of problems
in a simple visual format
Helps prevent “shifting the problem” where the
solution removes some causes but worsens
others
30. Rev. 09/06/01 30
Cause and Effect Diagram
Enables a team to focus on the content of a problem, not
on the history of the problem or differing personal interests
of team members
Creates a snapshot of collective knowledge and consensus
of a team; builds support for solutions
Focuses the team on causes, not symptoms
Effect
Cause
31. Rev. 09/06/01 31
Control Chart
Focuses attention on detecting and monitoring
process variation over time
Distinguishes special from common causes of
variation
Serves as a tool for on-going control
Provides a common language for discussion
process performance
* *
*
* *
*
*
32. 32
The Structure of Control Charts
All control charts have a
common structure. They
have a centerline
(representing the
process average) and
upper and lower control
limits (called 3-sigma
limits) that provide
information on the
process variation.
25
20
15
10
5
0
0.2
0.1
0.0
Sample Number
Proportion
P Chart for Fraction
1
P=0.1112
UCL=0.2055
LCL=0.01689
33. 33
Control charts are constructed by drawing samples
and taking measurements of a process characteristic.
Each set of measurements is called a subgroup.
Control limits are based on the variation that occurs
within the sampled subgroups.
In this way, variation between the subgroups is
intentionally excluded from the computation of the
control limits; the common process variation
becomes the variation on which we calculate the
control limits.
The control limit computations assume that there are
no special causes of variation affecting the process. If
a special cause of variation is present, the control
chart, based solely on common variation, will
highlight when and where the special cause
occurred.
36. 36
When the data consist of a series of
fractions that are defective or possess
some other characteristic of interest, the
appropriate control chart is a p-chart.
This is a depiction of the process output in
terms of an attribute of interest - in our
example, the fraction defective.
37. 37
• The centerline for a p-chart is the mean of
the fraction defective.
ion
investigat
under
subgroups
all
in
examined
units
of
number
Total
ion
investigat
under
subgrops
all
in
defectives
of
number
Total
p
38. 38
• Control limits are calculated as
plus and minus three times the
standard error. The standard error
for the average proportion is:
• Where n is the subgroup size.
n
)
p
1
(
p
p
39. 39
• Using this value, the upper and lower
control limits for a p-chart are given by:
n
)
p
1
(
p
3
-
p
LCL(p)
n
)
p
1
(
p
3
p
UCL(p)
40. 40
• We can now find the numerical values for
constructing our p-chart:
• Notice that since a negative fraction
defective is not possible, the lower control
limit is set at 0.00.
009
.
0
200
)
021
.
0
1
)(
021
.
0
(
3
021
.
0
)
p
(
LCL
052
.
0
200
)
021
.
0
1
)(
021
.
0
(
3
021
.
0
)
p
(
UCL
021
.
0
4,800
102
p
42. 42
• The action taken on the process stemming from
investigations of days 8 and 22 should change the
process so that the special causes of variation will
be eliminated. Consequently, the data from days 8
and 22 may now be deleted. After eliminating the
data for the days in which the special causes of
variation are found, the control chart statistics are
recomputed.
0.00
LCL
use
,
Hence
010
.
0
200
)
017
.
0
1
)(
017
.
0
(
3
017
.
0
)
p
(
LCL
045
.
0
200
)
017
.
0
1
)(
017
.
0
(
3
017
.
0
)
p
(
UCL
017
.
0
400
,
4
73
p
44. Building a Cause & Effect Diagram
Turnover in
staff
Policies
People
Procedures
Materials
Inadequate
training
Burnout
Lack of
supervision
Minimal
benefits
No policy on staff
screening
Paperwork
overwhelming
Lack of office
space
“Back-biting”
environment
Restrictive budget
Location
Escorting clients to
appointments and
having to wait
45. Cause & Effect Diagrams
Bones should not include solutions
Bones should not include lists of process steps
Bones include the possible causes
Better understand the current
situation…..
Now begin to develop a change.
46. Histogram
Used to visualize the distribution
Histogram of univariate sample
measurement scale
Density
20 30 40 50
0.00
0.02
0.04
0.06
0.08
48. Pareto Chart
Chart consistencies of most frequent defects
Used to locate Major sources of problems
Able to use with Count and Categorical Data
49. Count
Percent
sample1
Count
17.6 6.5 1.9
Cum % 49.1 74.1 91.7 98.1 100.0
53 27 19 7 2
Percent 49.1 25.0
Other
yellow
green
blue
red
120
100
80
60
40
20
0
100
80
60
40
20
0
Example Pareto Chart
Example Pareto Chart
50. Quality-related costs
Prevention costs
activities to keep unacceptable products from
being generated and to keep track of the
process
Appraisal costs
activities to maintain control of the system
Correction costs
activities to correct conditions out of control,
including errors
51. Prevention costs
Quality planning and engineering
New products review
Product/process design
Process control
Burn-in
Training
Quality data acquisition and analysis
52. Appraisal costs
Inspection and test of incoming material
Product inspection and test
Materials and services consumed
Maintaining accuracy of test equipment
