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Prof. Saurabh S. Bhange
What is Quality?
What does the word “quality” mean to you?
 Think about your past experience of purchasing a
mobile. Did you buy a “quality” mobile? What
about the experience made it a “quality”
experience for you?
 Think about a product you bought. How can you
define its “quality”?
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?
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. Conformance to Standards:
 Is the product/service made exactly as the
designer/standard intended?
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, no graft
Automotive Defect-free
Communications Clearer, faster, cheaper service
Quality
 Quality is a relative term.
 It is generally used with the end use of the product.
Definition: The standard of something as
measured against other things of a similar kind.
Quality
 Quality can be defined as the fitness for
use/purpose at the most economical cost.
 Quality depends on the perception of a person
in a given situation.
Quality
The word quality has variety of meanings:
 Fitness for use
 Conformance to requirements
 Degree of preference
 Degree of excellence
 Measure of fulfillment of promise
Suitability Reliability Durability
Safety Affordability Maintainability
Aesthetic Look
Satisfaction to
Customers
Economical
The product should have following abilities to
be called as good quality product:
QUALITY DOES NOT
OCCUR BY ACCIDENT
 What does the customer actually want?
 Identify, understand and agree
customer requirements
 How are you going to meet those
requirements?
 Plan to achieve them
Deming’s Cycle
Act
A
P
D
C
Plan
Do
Check
A
P
D
C
Plan
Do
Check
A
P
D
C
What are we trying to
accomplish?
How will we know that a
change is an improvement?
AIM
MEASURE
What change can we make that
will result in improvement?
Selecting Change
PDCA CYCLE
 Plan: Identify an opportunity and plan for change.
 Do: Implement the change on a small scale.
 Check: Use data to analyze the results of the change
and determine whether it made a difference.
 Act: If the change was successful, implement it on a
wider scale and continuously assess your results. If
the change did not work, begin the cycle again.
Quality of Design
 It is concerned with the tightness of the
specifications for the manufacture of the product.
 Quality of design must ensure consistent
performance over it’s stipulated life span and
should consider possible modes of failure.
e.g. A part with the drawing tolerance ±0.001 mm is
preferred over that of ±0.01 mm tolerance.
Factors controlling Quality of
Design
1. Type of customers in the market
 Consuming habits of people.
 The prices they are willing to pay.
 The choice of design of product.
2. Profit Considerations-
Company is not expected to manufacture 100%
quality products.
Factors controlling Quality of
Design
3. Environmental Conditions: Reliability, intended
life.
4. Special Requirements: Strength, fatigue resistance.
5. Higher qualities of design means higher costs.
Quality of Conformance
The measure of truthfulness with which the product
conforms to the design specifications.
Factors controlling Quality of
Conformance
 Incoming raw material,
 Adequacy of machines & tools,
 Proper selection of process,
 Well trained operators,
 Shipment & storage of materials,
 Feed-back from internal inspection & customers.
Quality of Performance
Quality of Performance depends on:
1. Quality of Design
2. Quality of Conformance
Quality Control
Quality Control is defined as the entire collection of
activities (controlling materials, men, machines or
manufacturing conditions), resulting operation will
produce the optimum quality products at minimum
costs.
Meaning of Quality Control
Quality control is a process through which we
measure the actual quality performance,
compare it with the standards and take
corrective action if there is a deviation.
Meaning of Quality Control
It is a systematic control of various factors that
affects the quality of the product. It depends
on: Material, Tools, Machines, Type of labour,
Working conditions, measuring instruments,
etc.
Meaning of Quality Control
Quality control can be defined as the entire
collection of activities which ensures that the
operation will produce the optimum quality
products at minimum cost.
Meaning of Quality Control
It is a name of department which devotes itself
full time to quality functions.
Meaning of Quality Control
It is a system, plan or method of approach to
the solution of quality problems.
Steps in Quality Control
programme
1. Formulate quality policy.
2. Find product requirements and setting standards.
3. Selecting inspection plan & set up procedure.
4. Detect deviations from set standards.
5. Take correction action.
6. Decide salvage method.
Objectives of Quality Control
1. Improve company’s income.
2. Reduce cost through reduction of losses due to
defects.
3. Produce optimum quality at minimum price.
4. Ensure that sub-standard product do not reach
customers.
Advantages of Quality Control
1. Increased sales.
2. Reduced wastages.
3. Improves reputation.
4. Reduced inspection cost.
5. Good customer relations.
6. Uniformity in quality.
Basic Seven Tools of Quality
What are the Basic Seven Tools
of Quality?
 Fishbone Diagrams
 Histograms
 Pareto Analysis
 Flowcharts
 Scatter Plots
 Run Charts
 Control Charts
Where did the Basic Seven come
from?
Kaoru Ishikawa
 The Basic Seven Tools made statistical analysis less
complicated for the average person
 Good Visual Aids make statistical and quality control more
comprehendible.
Fishbone Diagrams
 No statistics involved
 Maps out a process/problem
 Makes improvement easier
 Looks like a “Fish Skeleton”
Constructing a Fishbone Diagram
Step 1 - Identify the Problem
Step 2 - Draw “spine” and “bones”
Example: High Inventory Shrinkage at local Drug Store
Shrinkage
Constructing a Fishbone
Diagram
Step 3 - Identify different areas where problems may arise from
Ex. : High Inventory Shrinkage at local Drug Store
Shrinkage
Employees
Shoplifters
Constructing a Fishbone
Diagram
Step 4 - Identify what these specific causes could be
Ex. : High Inventory Shrinkage at local Drug Store
Shrinkage
shoplifters
Anti-theft tags poorly designed
Expensive merchandise
out in the open
No security/ surveillance
Constructing a Fishbone
Diagram
Ex. : High Inventory Shrinkage at local Drug Store
Shrinkage
shoplifters
Anti-theft tags poorly designed
Expensive merchandise out in the
open
No security/ surveillance
employees
attitude
new trainee
training
benefits practices
Constructing a Fishbone
Diagram
Step 5 – Use the finished diagram to brainstorm solutions to the
main problems.
Example of Fishbone Diagram
Example of Fishbone Diagram
Check sheets
 What is a check sheet?
 A form or sheet used to record data.
Function of Check Sheets
According to Ishikawa 1982, check sheets have the
following functions:
1. Production Process distribution checks
2. Defective item checks
3. Defective location checks
4. Defective cause checks
5. Check-up confirmation checks
6. Others
Example of a simple check sheet.
(for car valet operation)
Car type
Car registration
Ford Focus
W357 PHR
Interior vacuumed √
Upholstery cleaned √
Dash board cleaned √
De odorised √
Body washed √
Washed waxed & Polished √
Under car washed √
Wheels washed √
Tyres blacked √
Comments: Front bumper badly scratched on delivery, this can not be
covered
Performed / Checked by J Bloggs Date 2 May 2008
Example of a simple process check
sheet. (attributes)
Model XYZC217 Batch
failures 1 2 3 4 5 6 7 8 9
1
0
Power up
1 2 1
Boot up
6 4 2 1 2
Sink test
2 1 1 1
Case damage
1 1 2
Keyboard damage
Monitor damaged
1 2
Bundled s/w included
3 1 3
Checked by
pj
a
m jj [j
l
m
l
m
r
m pj
a
m pj
Histograms
 Bar chart
 Used to graphically represent groups of data
Constructing a Histogram
From a set of data compute
 sum
 mean (x)
 Max
 Min
 Range (max-min)
Constructing a Histogram
 Use range to estimate beginning and end
 Calculate the width of each column by dividing the
range by the number of columns
Range
# of Columns
= Width
Acme Pizza Example
Let’s say the owner wants a distribution of Acme’s Thursday
Night Sales
Data Set from last Thursday(slices)
0 2 1 2 2 4 1 3 1 2 1 2 2 4 3 4 1 4 3 2 2 3 2 1 2 2 1 2 2 1 4 2 2 1
2 1 2 2 1 2 1 2 1 2 1 2 1 2 1 2 2 2 1 2 1 2 1 1 2 2 2 3 1 4 2 2 3 2
2 2 1 2 3 2 2 4 2 2 4 4 1 2 2 2 3 2 2 1 2 2 4 2 1 2 4 2 1 7 2 1 2 2
3 1 2 1 1 2 1 2 2 2 1 2 2 1 2 1 2 2 2 4 2 4
Acme Pizza Example
Mean = 2.032258
Max = 7
Min = 0
Range = 7
Acme Pizza Example
33
65
8
12
0 0 1
0
10
20
30
40
50
60
70
1 2 3 4 5 6 7
Slices of Pizza
Histogram
Constructing a Histogram
How is this helpful to Acme?
 2 slices of pizza most common order placed
 Distribution of sales useful for forecasting next
Thursday’s late night demand
If you were an Acme manager how could you apply
this information?
Pareto Analysis
 Very similar to Histograms
 Use of percentages to show importance
Acme Pizza (part 2)
Slices Frequency %
0 1 .3
1 33 13.09
2 65 25.79
3 8 3.17
4 12 4.76
5 0 0
6 0 0
7 1 .3
Acme Pizza (part 2)
The completed Pareto Analysis results in the following graph:
0
10
20
30
40
50
60
70
1 2 3 4 5 6 7
Slices of Pizza
2 1 4 3 7 5 6
Flowcharts
 A graphical picture of a PROCESS
Process Decision
The process
flow
Flowcharts
PROCESS MAPPING
 Process mapping is an essential first step.
 It identifies all of the process activities, sequence and
responsibilities.
 This can either be in a written format, or as a
flowchart.
Flowcharting
 Flowcharting is a graphical tool for analysing
processes.
 Constructing flowcharts leads to a better
understanding of processes.
 Better understanding of processes is a essential for
improvement
Flowcharts
Some standard symbols
Start or end
An activity
a decision point in the process.
a point at which the flowchart connects
with another process.
An off page connection
All records are identified
FLOWCHART
SM01 Enquiry Handling / Quotation Process
Sales director EstimatorCustomer
Customer sends
enquiry
Sales department
receives enquiry
Enquiry entered
into the electronic
Quote log &
Unique serial
number entered
Can this
enquiry be
Quoted ?
Enquiry allocated
to Estimator
No
Quote prepared
from Price guide
Quote customer
Customer
informed that we
are unable to
quote
No
Prepare Quote
Have the
item (s) been
made before?
Yes
Raise estimate
sheet & plan
process
Organize contract
review to cover
Quality
Contractual &
Manufacturing
aspects
Scatter Plots
2 Dimensional X/Y plots
Used to show relationship between
independent(x) and dependent(y)
variables
Acme Pizza
(Scatter Diagram)
Minutes Cooking Defective Pies
10 1
45 8
30 5
75 20
60 14
20 4
25 6
In this simple example, you can find the existing relationship without much
difficulty but…
Scatter Diagrams
0
5
10
15
20
25
0 20 40 60 80
•Easier to see direct
relationship
Time Cooking
(minutes)
Scatter Diagrams
As a quality tool
 What does this tell Acme management about their
processes?
 Improvements?
0
5
10
15
20
25
0 20 40 60 80
Time Cooking (minutes)
Run charts
Time-based (x-axis)
Cyclical
Look for patterns
Run Charts
8 9 10 11 12 1 2 3 4 8 9 10 11 12 1 2 3 4 8 9 10 11 12 1 2 3 4
PM- AM PM- AM PM- AM
Thursday
Week 1
Thursday
Week 2
Thursday
Week 3
Slices/hou
r
Time
Control Charts
Deviation from Mean
Upper and Lower Spec’s
Range
Control Charts
Upper Limit
Lower Limit
Unacceptable
deviation
X
Control Charts
Acme Pizza Management wants to get in on the control
chart action
•Average Diameter = 16 inches
•Upper Limit = 17 inches
•Lower Limit = 15 inches
Acme example Control Charts
Upper Limit
17 inches
Lower Limit
15 Inches
Small Pie
X
16 inches=
Inspection
Definition:
Examination of the product that it meets
the standard.
Inspection
Procedure in which a part or product
feature, such as a dimension, is
examined to determine whether or
not it conforms to design
specification
 Many inspections rely on
measurement techniques, while
others use gaging methods
 Gaging determines simply whether
the part characteristic meets or does
not meet the design specification
 Gaging is usually faster than
measuring, but not much
information is provided about
feature of interest
Types of Inspection
 Inspection involves the use of measurement
and gaging techniques to determine whether
a product, its components, subassemblies, or
materials conform to design specifications
 Inspections divide into two types:
1. Inspection by variables - product or part
dimensions of interest are measured by the
appropriate measuring instruments
2. Inspection by attributes – product or part
dimensions are gaged to determine whether
or not they are within tolerance limits
Measurement
Procedure in which an unknown quantity
is compared to a known standard, using
an accepted and consistent system of
units
 The measurement may involve a simple
linear rule to scale the length of a part
 Or it may require a sophisticated
measurement of force versus deflection
during a tension test
 Measurement provides a numerical
value of the quantity of interest, within
certain limits of accuracy and precision
Inspection is of 2 types:
1. 100% inspection,
2. Sampling Inspection.
Inspection Planning
 An inspection is an organized examination or formal
evaluation exercised.
 The results are equally compared to specified
requirements and standards for determining whether
the item or activity is in line with these targets.
Inspection Planning
Inspection planning is activity of:
1. Designating the inspection stations.
2. Providing inspection facilities to inspection
department.
Objectives of Inspection
1. Receiving inspection
2. In-process inspection
3. To maintain customer relation
4. Gauge maintenance
5. Finished goods inspection
6. Test equipment maintenance
7. Decision on salvage
Acceptance Sampling
 Accept/Reject entire lot based on sample results.
 Created by Dodge and Romig during WWII.
Lot Acceptance Sampling
A SQC technique, where a random sample is taken
from a lot, and upon the results of appraising the
sample, the lot will either be rejected or accepted.
Why use Acceptance Sampling?
 Can do either 100%, or inspect a sample of a few
items taken from the lot
 Complete inspection
Inspecting each item produced to see if each item
meets the level desired
Used when defective items would be detrimental
in some way
Why not 100% Inspection?
Problems with 100% inspection
 Very expensive
 Cant use when product must be destroyed to test
 Handling by inspectors can induce defects
 Inspection must be tedious so defective items do not
slip through inspection
Advantages of Sampling
Inspection
1. Less cost & time as compared to 100% inspection.
2. Only option in case of destructive testing.
3. No inspection fatigue.
4. Smaller inspection staff.
5. Less handling results less damage.
6. Lot can be disposed off in shorter time.
Types of Sampling Inspection
1. Single Sampling Plan,
2. Double Sampling Plan,
3. Multiple Sampling Plan.
Single Sampling Plan
Double Sampling Plan
Vendor Quality Rating (VQR)
Vendor quality rating is an evaluation of a
vendor’s ability to meet quality requirements.
The VQR provides a basis for:
1. Measuring quality of each vendor.
2. Comparing various vendors.
3. Judging the process of each vendor over extended
period of time.
4. Eliminating those vendors who repeatedly fail to
meet competitive quality level.
Supplier Partnership
 40% product cost comes from purchased materials,
therefore Supplier Quality Management is important
 Substantial portion of quality problems arrives from
suppliers
 Need partnership to achieve quality improvement –
long-term purchase contract
QUALITY CIRCLES
Summary of History and
Practices
 Quality Circles were first seen in the United States in the
1950’s
 Circles were developed by Dr, Kaoru Ishikawa in Japan in
the 1960’s
 Circles were re-exported to the US in the early 1970’s
Summary of History and Practice
 1980’s brought Total Quality Management and a reduction
in the use of Quality Circles
 Quality Circles can be a useful tool if used properly
What is a Quality Circle?
 Voluntary groups of employees who work on similar
tasks or share an area of responsibility
 They agree to meet on a regular basis to discuss & solve
problems related to work.
 They operate on the principle that employee
participation in decision-making and problem-solving
improves the quality of workThe reduction, by their
efforts, of the countless number of problems which
impede the effectiveness of their work
 Encourage circles to elect their own leaders towards the
end of the training period
 Frequency and duration of meetings is set by the
group
 Utilising basic 7 QC Tools.
 Japanese experience indicated that 95% of the
problems in the workshop can be solved through 7
QC Tools
What is a Quality Circle? (continue)
The Japanese description of the
effectiveness of a quality circle is expressed
as:
“It is better for one hundred people to take one step
than for one person to take a hundred’
How Do Quality Circles Work?
 All members of a Circle need to receive training
 Members need to be empowered
 Members need to have the support of Senior Management
 Characteristics
 Volunteers
 Set Rules and Priorities
 Use of organized approaches to Problem-Solving
Formation of Quality Circles
 Start on the Shop Floor
 Base Circle on Training
 Allow the Circle to Form Itself
 Do The Training Properly
 Support with Information Required
 Provide Skills and Experience
Requirements of Quality Circles
 Management Support
 Training
 Recognition System
Characteristics of Quality Circle
 Group of 3 to 12.
 Voluntary participation.
 Agrees schedule of meetings.
 Trained for quality control techniques.
 Discuss work related problems.
 Self development, public recognition.
Disadvantages
 Productivity may decrease initially because of regular
meetings.
 Chances of errors due to over excitement.
 May threaten traditional authority structure.
 Workers who lost their initiative, feels uncomfortable.
Just-in-Time/Lean Production
 A repetitive production system
 in which the processing and movement of materials
and goods occur
 just as they are needed!
100
Traditional Systems Compared to
JIT
Priorities
 Traditionally
 Accept all customer orders
 Provide a large number of options from which
customers may order
 JIT
 low cost/high quality within limited market
Capacity
 Traditional
 excess capacity designed into system just-in-case
problem arises
 highly utilized
 inflexible
 JIT
 minimize waste of having extra capacity
 flexible capacity
 moderately utilized
HISTORY
 Evolved in Japan after WWII, as a result of their
diminishing market share in auto industry.
 Founded by Taiichi Ohno, vice president of Toyota.
 Basically implemented in Toyota plant in 1950, but well
established after 1970.
FOLLOWERS
 Adopted by General Electricals in the USA in the 1980.
 Some companies referred JIT with different names:
i. TOYOTA – ‘Toyota System’
ii. IBM – ‘Continuous Flow Manufacturing’
iii. GE – ‘Management by sight’
iv. HP – ‘Stockless production & repetitive
manufacturing system’
Pre-JIT: Traditional Mass Production
Big lot sizes
Lots of inventory
”PUSH” material to next
stage
Lower
per unit
cost
Big purchase shipments
Big “pushes” of finished goods
to warehouses or customers
???
106
Post-JIT: “Lean Production”
Smaller lots
Faster setups
Less inventory, storage space
”PULL” material to next stage
Minimal
or no
inventory
holding
cost
Smaller shipments
Goods are pulled out of
plant by customer demand
107
Tighter coordination along the supply chain
Goods are pulled along
— only make and ship what is needed
JIT Goals
(throughout the supply chain)
 Eliminate disruptions
 Make the system flexible
 Reduce setup times and lead times
 Minimize inventory
 Eliminate waste
108
Waste
Definition:
Waste is ‘anything other than the minimum amount of
equipment, materials, parts, space, and worker’s time,
which are absolutely essential to add value to the
product.’
— Shoichiro Toyoda
President, Toyota
109
7 Forms of Waste:
 Overproduction
 Waiting time
 Transportation
 Processing
 Inventory
 Motion
 Product Defects
110
Inventory as a Waste
 Requires more storage space
 Requires tracking and counting
 Increases movement activity
 Hides yield, scrap, and rework problems
 Increases risk of loss from theft, damage, obsolescence
111
Kanban
 Kanban: Card or other device that communicates demand
for work or materials from the preceding station
 Kanban is the Japanese word meaning “signal” or “visible
record”
 Paperless production control system
 The idea behind this system is to authorize materials for
production only if there is a need for them.
 Through the use of Kanban authorization cards,
production is “pulled” through the system, instead of
pushed out before it is needed and then stored.
Kanban Example
Workcenter A Workcenter B
114
Work-center B uses parts produced by Work-center A
Kanban card: Signal to produce
Workcenter A Workcenter B
Kanban Card
115
When a container is opened by Workcenter B, its kanban card is
removed and sent back to Workcenter A.
This is a signal to Workcenter A to produce another box of parts.
Empty Box: Signal to pull
Workcenter A Workcenter B
116
Empty box sent back. Signal to pull another full box into
Workcenter B.
Question: How many kanban cards here? Why?
Kaizen
 Kaizen, Japanese for
"improvement" or "change for the
best", refers to philosophy or
practices that focus upon continuous
improvement of processes.
 It has been applied in
healthcare, psychotherapy, life-
coaching, government, banking, and
other industries.
Kaizen – Just Do It!
 Kaizen means continuous improvement.
 Moreover, Kaizen means continuing improvement in
personal life, home life, social life, and working life.
 When applied to the workplace Kaizen means
continuing improvement involving everyone –
managers and workers alike.
- Mr. Masaaki Imai (1986)
Japanese word meaning
 Kai - gradual and orderly change, Zen - for
the better
involves everyone in the organization in
small improvements using conventional
knowledge and tools
without large capital investments.
A culture - way of life
focusing on eliminating waste
begins and ends with people
Total system focus – not just one
department
Kaizen Extends to Individual Life
Everybody deserves to and should be
willing to improve himself/herself for
the better continually.
“If a man has not been seen for three
days, his friends should take a good
look at him to see what changes have
befallen him” - an old Japanese saying that
describes how natural Kaizen is.
 THE Kaizen WET BLANKET LIST
1. I am too busy to study it.
2. It's a good idea, but the timing is premature
3. It is not in the budget
4. Theory is different from practice
5. Isn't there something else for you to do ?
6. I think it doesn't match corporate policy
7. It isn't our business; let someone else think about it
8. Are you dissatisfied with your work ?
9. It's not improvement, it's common sense
10. I know the result, even if we don't do it
11. I will not be held accountable for it
12. Can't you think of a better idea ?
 BASIC TIPS FOR KAIZEN ACTIVITIES
1. Discard conventional fixed ideas.
2. Think of how to do it, not why it cannot be done.
3. Do not make excuses. Start by questioning current
practices.
4. Do not seek perfection. Do it right away even if for
only 50% of target.
5. Correct it right away, if you make mistake.
6. Do not spend money for KAIZEN, use your
wisdom.
7. Wisdom is brought out when faced with hardship.
8. Ask 'WHY?" five times and seek root causes.
9. Seek the wisdom of ten people rather than the
knowledge of one.
10. KAIZEN ideas are infinite.
Three functions should happen
simultaneously within any organizations
Maintenance
Innovation
Major improvements in
technology/equipment
Requires substantial investment
Best suited to a good economy
Kaizen
Advantages of Kaizen
 It concentrates attention on the processes and activity
is centered on getting the process right.
 It rewards effort as well as achievement.
 It is a method for active problem solving.
 It delegates responsibility to all participants.
 It gives employees a sense of purpose.
 It acts as a motivator for building quality in to product.
Advantages of Kaizen
 It eliminates the need for inspection.
 It harbours group-centered activity and therefore
encourages teamwork.
 It helps to breakdown departmental barriers.
 The focus for improvement is returned to the needs for
the customer.
 It aims to reduce waste and superfluous activity which
are non-vasible to management.
 It helps to establish long-term goals for the company
so that it can keep abreast of change.
Six Sigma (6)
 Used by MOTOROLA in 1986 as Quality Improvement
tool
 Focuses on eliminating defects (3.4 per million)
 Whereas Kaizen focuses on changing work culture, Six
Sigma focuses on particular problem
ISO-9000 Series
A few words about ISO
Refer to “ISO” not I-S-O
 Because “ISO” is not a set of initials but an international name
Derived from the Greek word “isos”
meaning “equal”
Long name in English
International Organization for Standardization
What is ISO 9000?
 A set of standardized requirements for quality
management system
 Applicable to any organization regardless of it’s
size or whether public or private sector
 As at December 2004 over 670,399 companies
had received certification from 70,364 in 1994.
ISO-9000 series of standards
 ISO 9000 refers to a group of quality assurance
standards established by the International
Organization for Standardization. This group, which is
made up of representatives from 150+ countries,
adopted the standards in 1987.
ISO 9000
• It provides guidelines for selection and use, definitions and
concepts regarding the ISO 9000
• The quality system will generally be codified in a series of
documents which are commonly known as Quality Manual.
All aspects relating to quality should be identified in these
documented procedures which would include all reference to
work instructions and records. The manual should also contain
procedures for specific actions which need to be taken as part
of the quality control procedures.
132
A few words about ISO
 Whatever the country, whatever the language the short
form is always “ISO”
Who is ISO?
 ISO is an international agency consisting of 156
member countries
 ISO was formed in 1947 and is based in Geneva,
Switzerland
 It develops international standards to foster
increased trade of products and services
 By July 2005, ISO had published over 15,000
standards
ISO 9000
Who created the standards?
 International Organization for Standardization -
Geneva
 ISO tech committee - TC 176 started in 1979
 Standards created in 1987
 To eliminate country to country differences
 To eliminate terminology confusion
 To increase quality awareness
ISO 9000
How did ISO get started?
 1906 - International Electro-technical Commission
 1926 - International Federation of the National
Standardizing Associations (ISA)
 1946 London - delegates from 25 countries decided to
create a new international organization "the object of
which would be to facilitate the international
coordination and unification of industrial standards
 1947 - ISO began to officially function
 1951 - The first ISO standard was published
 "Standard reference temperature for industrial length
measurement".
ISO 9000 SERIES
ISO 9000:2005 – Vocabulary (examples)
 Process – set of interrelated or interacting activities
which transform inputs into outputs
 Product – result of a process
 Top management – a person or group of people who
direct and control an organization at the highest level
 Requirement – need or expectation that is stated,
generally implied or obligatory
 Customer satisfaction – customer’s perception of the
degree to which the requirements have been fulfilled
ISO 9001
 The most comprehensive standard. It assures all
aspects of quality from the design stage through
production and servicing.
141
ISO 9002
 This Standard leaves out the design phase of ISO
9001.It focuses on production and delivery. It is
used mainly by commodity companies, such as
chemical or paint producers.
143
ISO 9003
 This standard is less detailed than the two above. It
does not include a comprehensive quality system, but
focuses on testing and inspection. It is useful for
companies like equipment distributors.
144
ISO 9004
 This is not a standard that applies to relations with
outside customers, but suggests internal methods for
meeting the quality measurements in the other
standards. It describes methods for approaching areas
such as procurement , corrective action , and the use
of statistical process controls.
 This standards provides guidelines on the technical,
administrative and human factors affecting the quality
of products or services, at all stages of the quality loop
system.
145
The Growth of ISO 9000
 ISO 9000 registration has become a fundamental marketing tool,
particularly for companies doing business internationally. It gives
assurance of quality and provides a competitive advantage.
 The European Community (EC) already requires ISO 9000 registration
for certain products (e.g., toys, personal protection devices, gas appliances)
and planned to widen this list to items such as medical devices and lifting
equipment.
ISO 9000
Why adopt ISO 9000?
 To comply with customers who require ISO 9000
 To sell in the European Union market
 To compete in domestic markets
 To improve the quality system
 To minimize repetitive auditing by similar and
different customers
 To improve subcontractors’ performance
Internal benefits include:-
 Increased productivity
 Less scrap and rework
 Increased employee satisfaction
 Continual improvement
 Increased profits
EXTERNAL/MARKETING BENEFITS INCLUDE:-
An internationally recognised QMS
Increased opportunities in specific
markets
Increased customer satisfaction
ISO 9000
Ten Steps to ISO Registration
2. Select the appropriate standard
1. Set the registration objective
3. Develop and implement the quality system
4. Select a third-party registrar and apply
5. Perform self-analysis audit
6. Submit quality manual for approval
7. Pre-assessment by registrar
8. Take corrective actions
9. Final assessment by registrar
10. Registration!
ISO 9000
Six Essential Elements of a
Successful Registration Effort
Senior Management Commitment to the Effort
Appropriate ISO 9000 Training
An Effective Management Review Process
Documentation of the Quality System
An Effective Internal Auditing System
An Effective Corrective Action Process
Total Quality Management (TQM)
Definition:
Total Quality Management
 Total Quality Management (TQ, QM or TQM)
and Six Sigma (6) are sweeping “culture change”
efforts to position a company for greater
customer satisfaction, profitability and
competitiveness.
 TQ may be defined as managing the entire
organization so that it excels on all dimensions of
products and services that are important to the
customer.
 We often think of features when we think of the
quality of a product or service; TQ is about
conformance quality, not features.
 Meeting Our Customer’s Requirements
 Doing Things Right the First Time;
Freedom from Failure (Defects)
 Consistency (Reduction in Variation)
 Continuous Improvement
 Quality in Everything We Do
Total Quality Is…
A Quality Management System Is…
 A belief in the employee’s ability to solve
problems
 A belief that people doing the work are best
able to improve it
 A belief that everyone is responsible for quality
Elements for Success
 Management Support
 Mission Statement
 Proper Planning
 Customer and Bottom Line Focus
 Measurement
 Empowerment
 Teamwork/Effective Meetings
 Continuous Process Improvement
 Dedicated Resources
Modern History of Quality Management
 Frederick W. Taylor wrote Principles of Scientific Management in 1911.
 Walter A. Shewhart used statistics in quality control and inspection,
and showed that productivity improves when variation is reduced
(1924); wrote Economic Control of Manufactured Product in 1931.
 W. Edwards Deming and Joseph M. Juran, students of Shewhart, went
to Japan in 1950; began transformation from “shoddy” to “world class”
goods.
 In 1960, Dr. K. Ishikawa formalized “quality circles” - the use of small
groups to eliminate variation and improve processes.
 In the late ‘70’s and early ‘80’s:
 Deming returned from Japan to write Out of the Crisis,
and began his famous 4-day seminars in the United States
 Phil Crosby wrote Quality is Free
 NBC ran “If Japan can do it, why can’t we?”
 Motorola began 6 Sigma
Deming’s 14 Points
1. Create constancy of purpose for improvement
2. Adopt a new philosophy
3. Cease dependence on mass inspection
4. Do not award business on price alone
5. Work continually on the system of production and service
6. Institute modern methods of training
7. Institute modern methods of supervision of workers
8. Drive out fear
9. Break down barriers between departments
10. Eliminate slogans, exhortations, and targets for the work force
11. Eliminate numerical quotas
12. Remove barriers preventing pride of workmanship
13. Institute a vigorous program of education and retraining
14. Take action to accomplish the transformation
History of Quality Management
According to Dr. Joseph M. Juran (1991):
“On the assembly line at the Ford Motor Company in 1923,
most of the workers producing Model T’s were immigrants
and could not speak English. Many were also illiterate.
Workers learned their trade by modeling the actions of
other workers. They were unable to plan, problem-solve,
and make decisions. As a result, the Taylor scientific
school of management flourished, and MBAs and
industrial engineers were invented to do this work. Today,
however, the workforce is educated. Workers know what is
needed to improve their jobs, and companies that do not
tap into this significant source of knowledge will truly be
at a competitive disadvantage.”
History of Total Quality
According to Phil Crosby, Quality is . . .
An attitude:
- Zero Defects
- Continuous Improvement
A measurement:
- Price of Conformance, plus
- Price of Nonconformance (defects)
History of Total Quality
From
Motivation through fear and loyalty
To
Motivation through shared vision
Attitude: “It’s their problem” Ownership of every problem
affecting the customer
Attitude: “the way we’ve always done
it”
Continuous improvement
Decisions based on assumptions/
judgment calls
Decisions based on data and facts
Everything begins and ends with
management
Everything begins and ends with
customers
Crisis management and recovery Doing it right the first time
Choosing participative OR scientific
management
Choosing scientific AND
participative management
TQ: Transforming an Organization
Is 99% Quality Good Enough?
 22,000 checks will be deducted from the wrong
bank accounts in the next 60 minutes.
 20,000 incorrect drug prescriptions will be written
in the next 12 months.
 12 babies will be given to the wrong parents each
day.
Total Quality Management
Why TQM?
Ford Motor Company had operating losses of $3.3 billion
between 1980 and 1982.
Xerox market share dropped from 93% in 1971 to 40% in
1981.
Attention to quality was seen as a way to combat the
competition.
Total Quality Management
TQM: A “Buzzword” Losing
Popularity
 For many companies, the term TQM is
associated with corporate programs (mid 1980s
~ early 1990s) aimed at implementing
employee teams and statistical process control.
 Unfortunately, many companies were
dissatisfied with the perceived results of these
programs, concluding TQM does not work.
Total Quality Management
TQM
 Total - made up of the whole
 Quality - degree of excellence a product or service
provides
 Management - act, art or manner of planning,
controlling, directing,….
Therefore, TQM is the art of managing the whole to
achieve excellence.
Total Quality Management
What does TQM mean?
Total Quality Management means that the
organization's culture is defined by and supports the
constant attainment of customer satisfaction through
an integrated system of tools, techniques, and
training. This involves the continuous improvement of
organizational processes, resulting in high quality
products and services.
Total Quality Management
What’s the goal of TQM?
“Do the right things right the first
time, every time.”
Total Quality Management
Another way to put it
 At it’s simplest, TQM is all managers leading and
facilitating all contributors in everyone’s two main
objectives:
(1) total client satisfaction through quality
products and services; and
(2) continuous improvements to processes,
systems, people, suppliers, partners, products, and
services.
Total Quality Management
Productivity and TQM
 Traditional view:
 Quality cannot be improved without significant
losses in productivity.
 TQM view:
 Improved quality leads to improved
productivity.
Total Quality Management
Basic Tenets of TQM
1. The customer makes the ultimate
determination of quality.
2. Top management must provide leadership and
support for all quality initiatives.
3. Preventing variability is the key to producing
high quality.
4. Quality goals are a moving target, thereby
requiring a commitment toward continuous
improvement.
5. Improving quality requires the establishment
of effective metrics. We must speak with data
and facts not just opinions.
Total Quality Management
Total Quality Management
and Continuous Improvement
 TQM is the management process used to make
continuous improvements to all functions.
 TQM represents an ongoing, continuous commitment
to improvement.
 The foundation of total quality is a management
philosophy that supports meeting customer
requirements through continuous improvement.
Total Quality Management
Continuous Improvement versus
Traditional Approach
 Market-share focus
 Individuals
 Focus on ‘who” and “why”
 Short-term focus
 Status quo focus
 Product focus
 Innovation
 Fire fighting
 Customer focus
 Cross-functional teams
 Focus on “what” and “how”
 Long-term focus
 Continuous improvement
 Process improvement focus
 Incremental improvements
 Problem solving
Traditional Approach Continuous Improvement
Total Quality Management
The TQM System
Customer
Focus
Process
Improvement
Total
Involvement
Leadership
Education and Training Supportive structure
Communications Reward and recognition
Measurement
Continuous
Improvement
Objective
Principles
Elements

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Quality control and quality managment philosophies by Prof.Saurabh S. Bhange

  • 3.
  • 4. What does the word “quality” mean to you?  Think about your past experience of purchasing a mobile. Did you buy a “quality” mobile? What about the experience made it a “quality” experience for you?  Think about a product you bought. How can you define its “quality”?
  • 5. 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?
  • 6. 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. Conformance to Standards:  Is the product/service made exactly as the designer/standard intended?
  • 7. 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, no graft Automotive Defect-free Communications Clearer, faster, cheaper service
  • 8. Quality  Quality is a relative term.  It is generally used with the end use of the product. Definition: The standard of something as measured against other things of a similar kind.
  • 9. Quality  Quality can be defined as the fitness for use/purpose at the most economical cost.  Quality depends on the perception of a person in a given situation.
  • 10. Quality The word quality has variety of meanings:  Fitness for use  Conformance to requirements  Degree of preference  Degree of excellence  Measure of fulfillment of promise
  • 11. Suitability Reliability Durability Safety Affordability Maintainability Aesthetic Look Satisfaction to Customers Economical The product should have following abilities to be called as good quality product:
  • 12. QUALITY DOES NOT OCCUR BY ACCIDENT  What does the customer actually want?  Identify, understand and agree customer requirements  How are you going to meet those requirements?  Plan to achieve them
  • 13. Deming’s Cycle Act A P D C Plan Do Check A P D C Plan Do Check A P D C What are we trying to accomplish? How will we know that a change is an improvement? AIM MEASURE What change can we make that will result in improvement? Selecting Change
  • 14. PDCA CYCLE  Plan: Identify an opportunity and plan for change.  Do: Implement the change on a small scale.  Check: Use data to analyze the results of the change and determine whether it made a difference.  Act: If the change was successful, implement it on a wider scale and continuously assess your results. If the change did not work, begin the cycle again.
  • 15. Quality of Design  It is concerned with the tightness of the specifications for the manufacture of the product.  Quality of design must ensure consistent performance over it’s stipulated life span and should consider possible modes of failure. e.g. A part with the drawing tolerance ±0.001 mm is preferred over that of ±0.01 mm tolerance.
  • 16. Factors controlling Quality of Design 1. Type of customers in the market  Consuming habits of people.  The prices they are willing to pay.  The choice of design of product. 2. Profit Considerations- Company is not expected to manufacture 100% quality products.
  • 17. Factors controlling Quality of Design 3. Environmental Conditions: Reliability, intended life. 4. Special Requirements: Strength, fatigue resistance. 5. Higher qualities of design means higher costs.
  • 18. Quality of Conformance The measure of truthfulness with which the product conforms to the design specifications.
  • 19. Factors controlling Quality of Conformance  Incoming raw material,  Adequacy of machines & tools,  Proper selection of process,  Well trained operators,  Shipment & storage of materials,  Feed-back from internal inspection & customers.
  • 20. Quality of Performance Quality of Performance depends on: 1. Quality of Design 2. Quality of Conformance
  • 21. Quality Control Quality Control is defined as the entire collection of activities (controlling materials, men, machines or manufacturing conditions), resulting operation will produce the optimum quality products at minimum costs.
  • 22. Meaning of Quality Control Quality control is a process through which we measure the actual quality performance, compare it with the standards and take corrective action if there is a deviation.
  • 23. Meaning of Quality Control It is a systematic control of various factors that affects the quality of the product. It depends on: Material, Tools, Machines, Type of labour, Working conditions, measuring instruments, etc.
  • 24. Meaning of Quality Control Quality control can be defined as the entire collection of activities which ensures that the operation will produce the optimum quality products at minimum cost.
  • 25. Meaning of Quality Control It is a name of department which devotes itself full time to quality functions.
  • 26. Meaning of Quality Control It is a system, plan or method of approach to the solution of quality problems.
  • 27. Steps in Quality Control programme 1. Formulate quality policy. 2. Find product requirements and setting standards. 3. Selecting inspection plan & set up procedure. 4. Detect deviations from set standards. 5. Take correction action. 6. Decide salvage method.
  • 28. Objectives of Quality Control 1. Improve company’s income. 2. Reduce cost through reduction of losses due to defects. 3. Produce optimum quality at minimum price. 4. Ensure that sub-standard product do not reach customers.
  • 29. Advantages of Quality Control 1. Increased sales. 2. Reduced wastages. 3. Improves reputation. 4. Reduced inspection cost. 5. Good customer relations. 6. Uniformity in quality.
  • 30. Basic Seven Tools of Quality
  • 31.
  • 32. What are the Basic Seven Tools of Quality?  Fishbone Diagrams  Histograms  Pareto Analysis  Flowcharts  Scatter Plots  Run Charts  Control Charts
  • 33. Where did the Basic Seven come from? Kaoru Ishikawa  The Basic Seven Tools made statistical analysis less complicated for the average person  Good Visual Aids make statistical and quality control more comprehendible.
  • 34. Fishbone Diagrams  No statistics involved  Maps out a process/problem  Makes improvement easier  Looks like a “Fish Skeleton”
  • 35. Constructing a Fishbone Diagram Step 1 - Identify the Problem Step 2 - Draw “spine” and “bones” Example: High Inventory Shrinkage at local Drug Store Shrinkage
  • 36. Constructing a Fishbone Diagram Step 3 - Identify different areas where problems may arise from Ex. : High Inventory Shrinkage at local Drug Store Shrinkage Employees Shoplifters
  • 37. Constructing a Fishbone Diagram Step 4 - Identify what these specific causes could be Ex. : High Inventory Shrinkage at local Drug Store Shrinkage shoplifters Anti-theft tags poorly designed Expensive merchandise out in the open No security/ surveillance
  • 38. Constructing a Fishbone Diagram Ex. : High Inventory Shrinkage at local Drug Store Shrinkage shoplifters Anti-theft tags poorly designed Expensive merchandise out in the open No security/ surveillance employees attitude new trainee training benefits practices
  • 39. Constructing a Fishbone Diagram Step 5 – Use the finished diagram to brainstorm solutions to the main problems.
  • 42. Check sheets  What is a check sheet?  A form or sheet used to record data.
  • 43. Function of Check Sheets According to Ishikawa 1982, check sheets have the following functions: 1. Production Process distribution checks 2. Defective item checks 3. Defective location checks 4. Defective cause checks 5. Check-up confirmation checks 6. Others
  • 44. Example of a simple check sheet. (for car valet operation) Car type Car registration Ford Focus W357 PHR Interior vacuumed √ Upholstery cleaned √ Dash board cleaned √ De odorised √ Body washed √ Washed waxed & Polished √ Under car washed √ Wheels washed √ Tyres blacked √ Comments: Front bumper badly scratched on delivery, this can not be covered Performed / Checked by J Bloggs Date 2 May 2008
  • 45. Example of a simple process check sheet. (attributes) Model XYZC217 Batch failures 1 2 3 4 5 6 7 8 9 1 0 Power up 1 2 1 Boot up 6 4 2 1 2 Sink test 2 1 1 1 Case damage 1 1 2 Keyboard damage Monitor damaged 1 2 Bundled s/w included 3 1 3 Checked by pj a m jj [j l m l m r m pj a m pj
  • 46. Histograms  Bar chart  Used to graphically represent groups of data
  • 47. Constructing a Histogram From a set of data compute  sum  mean (x)  Max  Min  Range (max-min)
  • 48. Constructing a Histogram  Use range to estimate beginning and end  Calculate the width of each column by dividing the range by the number of columns Range # of Columns = Width
  • 49. Acme Pizza Example Let’s say the owner wants a distribution of Acme’s Thursday Night Sales Data Set from last Thursday(slices) 0 2 1 2 2 4 1 3 1 2 1 2 2 4 3 4 1 4 3 2 2 3 2 1 2 2 1 2 2 1 4 2 2 1 2 1 2 2 1 2 1 2 1 2 1 2 1 2 1 2 2 2 1 2 1 2 1 1 2 2 2 3 1 4 2 2 3 2 2 2 1 2 3 2 2 4 2 2 4 4 1 2 2 2 3 2 2 1 2 2 4 2 1 2 4 2 1 7 2 1 2 2 3 1 2 1 1 2 1 2 2 2 1 2 2 1 2 1 2 2 2 4 2 4
  • 50. Acme Pizza Example Mean = 2.032258 Max = 7 Min = 0 Range = 7
  • 51. Acme Pizza Example 33 65 8 12 0 0 1 0 10 20 30 40 50 60 70 1 2 3 4 5 6 7 Slices of Pizza Histogram
  • 52. Constructing a Histogram How is this helpful to Acme?  2 slices of pizza most common order placed  Distribution of sales useful for forecasting next Thursday’s late night demand If you were an Acme manager how could you apply this information?
  • 53. Pareto Analysis  Very similar to Histograms  Use of percentages to show importance
  • 54. Acme Pizza (part 2) Slices Frequency % 0 1 .3 1 33 13.09 2 65 25.79 3 8 3.17 4 12 4.76 5 0 0 6 0 0 7 1 .3
  • 55. Acme Pizza (part 2) The completed Pareto Analysis results in the following graph: 0 10 20 30 40 50 60 70 1 2 3 4 5 6 7 Slices of Pizza 2 1 4 3 7 5 6
  • 56. Flowcharts  A graphical picture of a PROCESS Process Decision The process flow
  • 57. Flowcharts PROCESS MAPPING  Process mapping is an essential first step.  It identifies all of the process activities, sequence and responsibilities.  This can either be in a written format, or as a flowchart.
  • 58. Flowcharting  Flowcharting is a graphical tool for analysing processes.  Constructing flowcharts leads to a better understanding of processes.  Better understanding of processes is a essential for improvement
  • 59. Flowcharts Some standard symbols Start or end An activity a decision point in the process. a point at which the flowchart connects with another process. An off page connection All records are identified
  • 60. FLOWCHART SM01 Enquiry Handling / Quotation Process Sales director EstimatorCustomer Customer sends enquiry Sales department receives enquiry Enquiry entered into the electronic Quote log & Unique serial number entered Can this enquiry be Quoted ? Enquiry allocated to Estimator No Quote prepared from Price guide Quote customer Customer informed that we are unable to quote No Prepare Quote Have the item (s) been made before? Yes Raise estimate sheet & plan process Organize contract review to cover Quality Contractual & Manufacturing aspects
  • 61. Scatter Plots 2 Dimensional X/Y plots Used to show relationship between independent(x) and dependent(y) variables
  • 62. Acme Pizza (Scatter Diagram) Minutes Cooking Defective Pies 10 1 45 8 30 5 75 20 60 14 20 4 25 6 In this simple example, you can find the existing relationship without much difficulty but…
  • 63. Scatter Diagrams 0 5 10 15 20 25 0 20 40 60 80 •Easier to see direct relationship Time Cooking (minutes)
  • 64. Scatter Diagrams As a quality tool  What does this tell Acme management about their processes?  Improvements? 0 5 10 15 20 25 0 20 40 60 80 Time Cooking (minutes)
  • 66. Run Charts 8 9 10 11 12 1 2 3 4 8 9 10 11 12 1 2 3 4 8 9 10 11 12 1 2 3 4 PM- AM PM- AM PM- AM Thursday Week 1 Thursday Week 2 Thursday Week 3 Slices/hou r Time
  • 67. Control Charts Deviation from Mean Upper and Lower Spec’s Range
  • 68. Control Charts Upper Limit Lower Limit Unacceptable deviation X
  • 69. Control Charts Acme Pizza Management wants to get in on the control chart action •Average Diameter = 16 inches •Upper Limit = 17 inches •Lower Limit = 15 inches
  • 70. Acme example Control Charts Upper Limit 17 inches Lower Limit 15 Inches Small Pie X 16 inches=
  • 71. Inspection Definition: Examination of the product that it meets the standard.
  • 72. Inspection Procedure in which a part or product feature, such as a dimension, is examined to determine whether or not it conforms to design specification  Many inspections rely on measurement techniques, while others use gaging methods  Gaging determines simply whether the part characteristic meets or does not meet the design specification  Gaging is usually faster than measuring, but not much information is provided about feature of interest
  • 73. Types of Inspection  Inspection involves the use of measurement and gaging techniques to determine whether a product, its components, subassemblies, or materials conform to design specifications  Inspections divide into two types: 1. Inspection by variables - product or part dimensions of interest are measured by the appropriate measuring instruments 2. Inspection by attributes – product or part dimensions are gaged to determine whether or not they are within tolerance limits
  • 74. Measurement Procedure in which an unknown quantity is compared to a known standard, using an accepted and consistent system of units  The measurement may involve a simple linear rule to scale the length of a part  Or it may require a sophisticated measurement of force versus deflection during a tension test  Measurement provides a numerical value of the quantity of interest, within certain limits of accuracy and precision
  • 75. Inspection is of 2 types: 1. 100% inspection, 2. Sampling Inspection.
  • 76. Inspection Planning  An inspection is an organized examination or formal evaluation exercised.  The results are equally compared to specified requirements and standards for determining whether the item or activity is in line with these targets.
  • 77. Inspection Planning Inspection planning is activity of: 1. Designating the inspection stations. 2. Providing inspection facilities to inspection department.
  • 78. Objectives of Inspection 1. Receiving inspection 2. In-process inspection 3. To maintain customer relation 4. Gauge maintenance 5. Finished goods inspection 6. Test equipment maintenance 7. Decision on salvage
  • 79. Acceptance Sampling  Accept/Reject entire lot based on sample results.  Created by Dodge and Romig during WWII. Lot Acceptance Sampling A SQC technique, where a random sample is taken from a lot, and upon the results of appraising the sample, the lot will either be rejected or accepted.
  • 80. Why use Acceptance Sampling?  Can do either 100%, or inspect a sample of a few items taken from the lot  Complete inspection Inspecting each item produced to see if each item meets the level desired Used when defective items would be detrimental in some way
  • 81. Why not 100% Inspection? Problems with 100% inspection  Very expensive  Cant use when product must be destroyed to test  Handling by inspectors can induce defects  Inspection must be tedious so defective items do not slip through inspection
  • 82. Advantages of Sampling Inspection 1. Less cost & time as compared to 100% inspection. 2. Only option in case of destructive testing. 3. No inspection fatigue. 4. Smaller inspection staff. 5. Less handling results less damage. 6. Lot can be disposed off in shorter time.
  • 83. Types of Sampling Inspection 1. Single Sampling Plan, 2. Double Sampling Plan, 3. Multiple Sampling Plan.
  • 86. Vendor Quality Rating (VQR) Vendor quality rating is an evaluation of a vendor’s ability to meet quality requirements.
  • 87. The VQR provides a basis for: 1. Measuring quality of each vendor. 2. Comparing various vendors. 3. Judging the process of each vendor over extended period of time. 4. Eliminating those vendors who repeatedly fail to meet competitive quality level.
  • 88. Supplier Partnership  40% product cost comes from purchased materials, therefore Supplier Quality Management is important  Substantial portion of quality problems arrives from suppliers  Need partnership to achieve quality improvement – long-term purchase contract
  • 90. Summary of History and Practices  Quality Circles were first seen in the United States in the 1950’s  Circles were developed by Dr, Kaoru Ishikawa in Japan in the 1960’s  Circles were re-exported to the US in the early 1970’s
  • 91. Summary of History and Practice  1980’s brought Total Quality Management and a reduction in the use of Quality Circles  Quality Circles can be a useful tool if used properly
  • 92. What is a Quality Circle?  Voluntary groups of employees who work on similar tasks or share an area of responsibility  They agree to meet on a regular basis to discuss & solve problems related to work.  They operate on the principle that employee participation in decision-making and problem-solving improves the quality of workThe reduction, by their efforts, of the countless number of problems which impede the effectiveness of their work  Encourage circles to elect their own leaders towards the end of the training period
  • 93.  Frequency and duration of meetings is set by the group  Utilising basic 7 QC Tools.  Japanese experience indicated that 95% of the problems in the workshop can be solved through 7 QC Tools What is a Quality Circle? (continue)
  • 94. The Japanese description of the effectiveness of a quality circle is expressed as: “It is better for one hundred people to take one step than for one person to take a hundred’
  • 95. How Do Quality Circles Work?  All members of a Circle need to receive training  Members need to be empowered  Members need to have the support of Senior Management  Characteristics  Volunteers  Set Rules and Priorities  Use of organized approaches to Problem-Solving
  • 96. Formation of Quality Circles  Start on the Shop Floor  Base Circle on Training  Allow the Circle to Form Itself  Do The Training Properly  Support with Information Required  Provide Skills and Experience
  • 97. Requirements of Quality Circles  Management Support  Training  Recognition System
  • 98. Characteristics of Quality Circle  Group of 3 to 12.  Voluntary participation.  Agrees schedule of meetings.  Trained for quality control techniques.  Discuss work related problems.  Self development, public recognition.
  • 99. Disadvantages  Productivity may decrease initially because of regular meetings.  Chances of errors due to over excitement.  May threaten traditional authority structure.  Workers who lost their initiative, feels uncomfortable.
  • 100. Just-in-Time/Lean Production  A repetitive production system  in which the processing and movement of materials and goods occur  just as they are needed! 100
  • 102. Priorities  Traditionally  Accept all customer orders  Provide a large number of options from which customers may order  JIT  low cost/high quality within limited market
  • 103. Capacity  Traditional  excess capacity designed into system just-in-case problem arises  highly utilized  inflexible  JIT  minimize waste of having extra capacity  flexible capacity  moderately utilized
  • 104. HISTORY  Evolved in Japan after WWII, as a result of their diminishing market share in auto industry.  Founded by Taiichi Ohno, vice president of Toyota.  Basically implemented in Toyota plant in 1950, but well established after 1970.
  • 105. FOLLOWERS  Adopted by General Electricals in the USA in the 1980.  Some companies referred JIT with different names: i. TOYOTA – ‘Toyota System’ ii. IBM – ‘Continuous Flow Manufacturing’ iii. GE – ‘Management by sight’ iv. HP – ‘Stockless production & repetitive manufacturing system’
  • 106. Pre-JIT: Traditional Mass Production Big lot sizes Lots of inventory ”PUSH” material to next stage Lower per unit cost Big purchase shipments Big “pushes” of finished goods to warehouses or customers ??? 106
  • 107. Post-JIT: “Lean Production” Smaller lots Faster setups Less inventory, storage space ”PULL” material to next stage Minimal or no inventory holding cost Smaller shipments Goods are pulled out of plant by customer demand 107 Tighter coordination along the supply chain Goods are pulled along — only make and ship what is needed
  • 108. JIT Goals (throughout the supply chain)  Eliminate disruptions  Make the system flexible  Reduce setup times and lead times  Minimize inventory  Eliminate waste 108
  • 109. Waste Definition: Waste is ‘anything other than the minimum amount of equipment, materials, parts, space, and worker’s time, which are absolutely essential to add value to the product.’ — Shoichiro Toyoda President, Toyota 109
  • 110. 7 Forms of Waste:  Overproduction  Waiting time  Transportation  Processing  Inventory  Motion  Product Defects 110
  • 111. Inventory as a Waste  Requires more storage space  Requires tracking and counting  Increases movement activity  Hides yield, scrap, and rework problems  Increases risk of loss from theft, damage, obsolescence 111
  • 112.
  • 113. Kanban  Kanban: Card or other device that communicates demand for work or materials from the preceding station  Kanban is the Japanese word meaning “signal” or “visible record”  Paperless production control system  The idea behind this system is to authorize materials for production only if there is a need for them.  Through the use of Kanban authorization cards, production is “pulled” through the system, instead of pushed out before it is needed and then stored.
  • 114. Kanban Example Workcenter A Workcenter B 114 Work-center B uses parts produced by Work-center A
  • 115. Kanban card: Signal to produce Workcenter A Workcenter B Kanban Card 115 When a container is opened by Workcenter B, its kanban card is removed and sent back to Workcenter A. This is a signal to Workcenter A to produce another box of parts.
  • 116. Empty Box: Signal to pull Workcenter A Workcenter B 116 Empty box sent back. Signal to pull another full box into Workcenter B. Question: How many kanban cards here? Why?
  • 117. Kaizen  Kaizen, Japanese for "improvement" or "change for the best", refers to philosophy or practices that focus upon continuous improvement of processes.  It has been applied in healthcare, psychotherapy, life- coaching, government, banking, and other industries.
  • 118. Kaizen – Just Do It!  Kaizen means continuous improvement.  Moreover, Kaizen means continuing improvement in personal life, home life, social life, and working life.  When applied to the workplace Kaizen means continuing improvement involving everyone – managers and workers alike. - Mr. Masaaki Imai (1986)
  • 119. Japanese word meaning  Kai - gradual and orderly change, Zen - for the better involves everyone in the organization in small improvements using conventional knowledge and tools without large capital investments.
  • 120. A culture - way of life focusing on eliminating waste begins and ends with people Total system focus – not just one department
  • 121. Kaizen Extends to Individual Life Everybody deserves to and should be willing to improve himself/herself for the better continually. “If a man has not been seen for three days, his friends should take a good look at him to see what changes have befallen him” - an old Japanese saying that describes how natural Kaizen is.
  • 122.  THE Kaizen WET BLANKET LIST 1. I am too busy to study it. 2. It's a good idea, but the timing is premature 3. It is not in the budget 4. Theory is different from practice 5. Isn't there something else for you to do ? 6. I think it doesn't match corporate policy 7. It isn't our business; let someone else think about it 8. Are you dissatisfied with your work ? 9. It's not improvement, it's common sense 10. I know the result, even if we don't do it 11. I will not be held accountable for it 12. Can't you think of a better idea ?
  • 123.  BASIC TIPS FOR KAIZEN ACTIVITIES 1. Discard conventional fixed ideas. 2. Think of how to do it, not why it cannot be done. 3. Do not make excuses. Start by questioning current practices. 4. Do not seek perfection. Do it right away even if for only 50% of target. 5. Correct it right away, if you make mistake. 6. Do not spend money for KAIZEN, use your wisdom. 7. Wisdom is brought out when faced with hardship. 8. Ask 'WHY?" five times and seek root causes. 9. Seek the wisdom of ten people rather than the knowledge of one. 10. KAIZEN ideas are infinite.
  • 124. Three functions should happen simultaneously within any organizations Maintenance Innovation Major improvements in technology/equipment Requires substantial investment Best suited to a good economy Kaizen
  • 125. Advantages of Kaizen  It concentrates attention on the processes and activity is centered on getting the process right.  It rewards effort as well as achievement.  It is a method for active problem solving.  It delegates responsibility to all participants.  It gives employees a sense of purpose.  It acts as a motivator for building quality in to product.
  • 126. Advantages of Kaizen  It eliminates the need for inspection.  It harbours group-centered activity and therefore encourages teamwork.  It helps to breakdown departmental barriers.  The focus for improvement is returned to the needs for the customer.  It aims to reduce waste and superfluous activity which are non-vasible to management.  It helps to establish long-term goals for the company so that it can keep abreast of change.
  • 127. Six Sigma (6)  Used by MOTOROLA in 1986 as Quality Improvement tool  Focuses on eliminating defects (3.4 per million)  Whereas Kaizen focuses on changing work culture, Six Sigma focuses on particular problem
  • 129. A few words about ISO Refer to “ISO” not I-S-O  Because “ISO” is not a set of initials but an international name Derived from the Greek word “isos” meaning “equal” Long name in English International Organization for Standardization
  • 130. What is ISO 9000?  A set of standardized requirements for quality management system  Applicable to any organization regardless of it’s size or whether public or private sector  As at December 2004 over 670,399 companies had received certification from 70,364 in 1994.
  • 131. ISO-9000 series of standards  ISO 9000 refers to a group of quality assurance standards established by the International Organization for Standardization. This group, which is made up of representatives from 150+ countries, adopted the standards in 1987.
  • 132. ISO 9000 • It provides guidelines for selection and use, definitions and concepts regarding the ISO 9000 • The quality system will generally be codified in a series of documents which are commonly known as Quality Manual. All aspects relating to quality should be identified in these documented procedures which would include all reference to work instructions and records. The manual should also contain procedures for specific actions which need to be taken as part of the quality control procedures. 132
  • 133. A few words about ISO  Whatever the country, whatever the language the short form is always “ISO”
  • 134. Who is ISO?  ISO is an international agency consisting of 156 member countries  ISO was formed in 1947 and is based in Geneva, Switzerland  It develops international standards to foster increased trade of products and services  By July 2005, ISO had published over 15,000 standards
  • 135. ISO 9000 Who created the standards?  International Organization for Standardization - Geneva  ISO tech committee - TC 176 started in 1979  Standards created in 1987  To eliminate country to country differences  To eliminate terminology confusion  To increase quality awareness
  • 136. ISO 9000 How did ISO get started?  1906 - International Electro-technical Commission  1926 - International Federation of the National Standardizing Associations (ISA)  1946 London - delegates from 25 countries decided to create a new international organization "the object of which would be to facilitate the international coordination and unification of industrial standards  1947 - ISO began to officially function  1951 - The first ISO standard was published  "Standard reference temperature for industrial length measurement".
  • 138.
  • 139.
  • 140. ISO 9000:2005 – Vocabulary (examples)  Process – set of interrelated or interacting activities which transform inputs into outputs  Product – result of a process  Top management – a person or group of people who direct and control an organization at the highest level  Requirement – need or expectation that is stated, generally implied or obligatory  Customer satisfaction – customer’s perception of the degree to which the requirements have been fulfilled
  • 141. ISO 9001  The most comprehensive standard. It assures all aspects of quality from the design stage through production and servicing. 141
  • 142.
  • 143. ISO 9002  This Standard leaves out the design phase of ISO 9001.It focuses on production and delivery. It is used mainly by commodity companies, such as chemical or paint producers. 143
  • 144. ISO 9003  This standard is less detailed than the two above. It does not include a comprehensive quality system, but focuses on testing and inspection. It is useful for companies like equipment distributors. 144
  • 145. ISO 9004  This is not a standard that applies to relations with outside customers, but suggests internal methods for meeting the quality measurements in the other standards. It describes methods for approaching areas such as procurement , corrective action , and the use of statistical process controls.  This standards provides guidelines on the technical, administrative and human factors affecting the quality of products or services, at all stages of the quality loop system. 145
  • 146. The Growth of ISO 9000  ISO 9000 registration has become a fundamental marketing tool, particularly for companies doing business internationally. It gives assurance of quality and provides a competitive advantage.  The European Community (EC) already requires ISO 9000 registration for certain products (e.g., toys, personal protection devices, gas appliances) and planned to widen this list to items such as medical devices and lifting equipment.
  • 147. ISO 9000 Why adopt ISO 9000?  To comply with customers who require ISO 9000  To sell in the European Union market  To compete in domestic markets  To improve the quality system  To minimize repetitive auditing by similar and different customers  To improve subcontractors’ performance
  • 148.
  • 149. Internal benefits include:-  Increased productivity  Less scrap and rework  Increased employee satisfaction  Continual improvement  Increased profits
  • 150. EXTERNAL/MARKETING BENEFITS INCLUDE:- An internationally recognised QMS Increased opportunities in specific markets Increased customer satisfaction
  • 151. ISO 9000 Ten Steps to ISO Registration 2. Select the appropriate standard 1. Set the registration objective 3. Develop and implement the quality system 4. Select a third-party registrar and apply 5. Perform self-analysis audit 6. Submit quality manual for approval 7. Pre-assessment by registrar 8. Take corrective actions 9. Final assessment by registrar 10. Registration!
  • 152. ISO 9000 Six Essential Elements of a Successful Registration Effort Senior Management Commitment to the Effort Appropriate ISO 9000 Training An Effective Management Review Process Documentation of the Quality System An Effective Internal Auditing System An Effective Corrective Action Process
  • 154. Definition: Total Quality Management  Total Quality Management (TQ, QM or TQM) and Six Sigma (6) are sweeping “culture change” efforts to position a company for greater customer satisfaction, profitability and competitiveness.  TQ may be defined as managing the entire organization so that it excels on all dimensions of products and services that are important to the customer.  We often think of features when we think of the quality of a product or service; TQ is about conformance quality, not features.
  • 155.  Meeting Our Customer’s Requirements  Doing Things Right the First Time; Freedom from Failure (Defects)  Consistency (Reduction in Variation)  Continuous Improvement  Quality in Everything We Do Total Quality Is…
  • 156. A Quality Management System Is…  A belief in the employee’s ability to solve problems  A belief that people doing the work are best able to improve it  A belief that everyone is responsible for quality
  • 157. Elements for Success  Management Support  Mission Statement  Proper Planning  Customer and Bottom Line Focus  Measurement  Empowerment  Teamwork/Effective Meetings  Continuous Process Improvement  Dedicated Resources
  • 158. Modern History of Quality Management  Frederick W. Taylor wrote Principles of Scientific Management in 1911.  Walter A. Shewhart used statistics in quality control and inspection, and showed that productivity improves when variation is reduced (1924); wrote Economic Control of Manufactured Product in 1931.  W. Edwards Deming and Joseph M. Juran, students of Shewhart, went to Japan in 1950; began transformation from “shoddy” to “world class” goods.  In 1960, Dr. K. Ishikawa formalized “quality circles” - the use of small groups to eliminate variation and improve processes.  In the late ‘70’s and early ‘80’s:  Deming returned from Japan to write Out of the Crisis, and began his famous 4-day seminars in the United States  Phil Crosby wrote Quality is Free  NBC ran “If Japan can do it, why can’t we?”  Motorola began 6 Sigma
  • 159. Deming’s 14 Points 1. Create constancy of purpose for improvement 2. Adopt a new philosophy 3. Cease dependence on mass inspection 4. Do not award business on price alone 5. Work continually on the system of production and service 6. Institute modern methods of training 7. Institute modern methods of supervision of workers 8. Drive out fear 9. Break down barriers between departments 10. Eliminate slogans, exhortations, and targets for the work force 11. Eliminate numerical quotas 12. Remove barriers preventing pride of workmanship 13. Institute a vigorous program of education and retraining 14. Take action to accomplish the transformation History of Quality Management
  • 160. According to Dr. Joseph M. Juran (1991): “On the assembly line at the Ford Motor Company in 1923, most of the workers producing Model T’s were immigrants and could not speak English. Many were also illiterate. Workers learned their trade by modeling the actions of other workers. They were unable to plan, problem-solve, and make decisions. As a result, the Taylor scientific school of management flourished, and MBAs and industrial engineers were invented to do this work. Today, however, the workforce is educated. Workers know what is needed to improve their jobs, and companies that do not tap into this significant source of knowledge will truly be at a competitive disadvantage.” History of Total Quality
  • 161. According to Phil Crosby, Quality is . . . An attitude: - Zero Defects - Continuous Improvement A measurement: - Price of Conformance, plus - Price of Nonconformance (defects) History of Total Quality
  • 162. From Motivation through fear and loyalty To Motivation through shared vision Attitude: “It’s their problem” Ownership of every problem affecting the customer Attitude: “the way we’ve always done it” Continuous improvement Decisions based on assumptions/ judgment calls Decisions based on data and facts Everything begins and ends with management Everything begins and ends with customers Crisis management and recovery Doing it right the first time Choosing participative OR scientific management Choosing scientific AND participative management TQ: Transforming an Organization
  • 163. Is 99% Quality Good Enough?  22,000 checks will be deducted from the wrong bank accounts in the next 60 minutes.  20,000 incorrect drug prescriptions will be written in the next 12 months.  12 babies will be given to the wrong parents each day.
  • 164. Total Quality Management Why TQM? Ford Motor Company had operating losses of $3.3 billion between 1980 and 1982. Xerox market share dropped from 93% in 1971 to 40% in 1981. Attention to quality was seen as a way to combat the competition.
  • 165. Total Quality Management TQM: A “Buzzword” Losing Popularity  For many companies, the term TQM is associated with corporate programs (mid 1980s ~ early 1990s) aimed at implementing employee teams and statistical process control.  Unfortunately, many companies were dissatisfied with the perceived results of these programs, concluding TQM does not work.
  • 166. Total Quality Management TQM  Total - made up of the whole  Quality - degree of excellence a product or service provides  Management - act, art or manner of planning, controlling, directing,…. Therefore, TQM is the art of managing the whole to achieve excellence.
  • 167. Total Quality Management What does TQM mean? Total Quality Management means that the organization's culture is defined by and supports the constant attainment of customer satisfaction through an integrated system of tools, techniques, and training. This involves the continuous improvement of organizational processes, resulting in high quality products and services.
  • 168. Total Quality Management What’s the goal of TQM? “Do the right things right the first time, every time.”
  • 169. Total Quality Management Another way to put it  At it’s simplest, TQM is all managers leading and facilitating all contributors in everyone’s two main objectives: (1) total client satisfaction through quality products and services; and (2) continuous improvements to processes, systems, people, suppliers, partners, products, and services.
  • 170. Total Quality Management Productivity and TQM  Traditional view:  Quality cannot be improved without significant losses in productivity.  TQM view:  Improved quality leads to improved productivity.
  • 171. Total Quality Management Basic Tenets of TQM 1. The customer makes the ultimate determination of quality. 2. Top management must provide leadership and support for all quality initiatives. 3. Preventing variability is the key to producing high quality. 4. Quality goals are a moving target, thereby requiring a commitment toward continuous improvement. 5. Improving quality requires the establishment of effective metrics. We must speak with data and facts not just opinions.
  • 172. Total Quality Management Total Quality Management and Continuous Improvement  TQM is the management process used to make continuous improvements to all functions.  TQM represents an ongoing, continuous commitment to improvement.  The foundation of total quality is a management philosophy that supports meeting customer requirements through continuous improvement.
  • 173. Total Quality Management Continuous Improvement versus Traditional Approach  Market-share focus  Individuals  Focus on ‘who” and “why”  Short-term focus  Status quo focus  Product focus  Innovation  Fire fighting  Customer focus  Cross-functional teams  Focus on “what” and “how”  Long-term focus  Continuous improvement  Process improvement focus  Incremental improvements  Problem solving Traditional Approach Continuous Improvement
  • 174. Total Quality Management The TQM System Customer Focus Process Improvement Total Involvement Leadership Education and Training Supportive structure Communications Reward and recognition Measurement Continuous Improvement Objective Principles Elements