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QualityQuality
ManagementManagement
Confidential to SoftTech Engineers Pvt. Ltd. Pune
Quality is the ability of a product or service to
consistently meet or exceed customer expectations.
9-2
What is Quality
C...
Evolution of Quality Management
• 1924 - Statistical process control charts
• 1930 - Tables for acceptance sampling
• 1940...
Quality Assurance vs. Strategic Approach
• Quality Assurance
– Emphasis on finding and correcting defects before
reaching ...
The Quality Gurus
• Walter Shewhart (“Father of statistical quality control”)
• W. Edwards Deming
• Joseph M. Juran
• Arma...
Key Contributors to Quality Management
9-6
Contributor
Deming
Juran
Feignbaum
Crosby
Ishikawa
Taguchi
Ohno and
Shingo
Know...
Principles of Quality Management
• Quality management is becoming increasingly important to
the leadership and management ...
Principles of Quality Management
"A quality management principle is a comprehensive and
fundamental rule / belief, for lea...
Principles of Quality Management
The Eight Principles are:
1. Customer-Focused Organisation
2. Leadership
3. Involvement o...
Principles of Quality Management
Principle 1: Customer Focused Organisation
Organizations depend on their customers and th...
Principles of Quality Management
Principle 1: Customer Focused Organisation
Applying the principle of customer-focused org...
Principles of Quality Management
Principle 1: Customer Focused Organisation
Beneficial applications of this principle incl...
Principles of Quality Management
Principle 2: Leadership
Leaders establish unity of purpose and direction of the
organisat...
Principles of Quality Management
Principle 2: Leadership
Applying the principle of leadership leads to the following actio...
Principles of Quality Management
Principle 2: Leadership
• Providing people with the required resources and freedom to act...
Principles of Quality Management
Principle 2: Leadership
Beneficial applications of this principle include:
For policy and...
Principles of Quality Management
Principle 3: Involvement of people
People at all levels are the essence of an organisatio...
Principles of Quality Management
Principle 3: Involvement of people
Applying the principle of involvement of people leads ...
Principles of Quality Management
Principle 3: Involvement of people
• Being innovative and creative in furthering the orga...
Principles of Quality Management
Principle 3: Involvement of people
Beneficial applications of this principle include:
• F...
Principles of Quality Management
Principle 4: Process approach
A desired result is achieved more efficiently when activiti...
Principles of Quality Management
Principle 4: Process approach
Applying the principle of process approach leads to the fol...
Principles of Quality Management
Principle 4: Process approach
• Establishing clear responsibility, authority, and account...
Principles of Quality Management
Principle 4: Process approach
Beneficial applications of this principle include:
For poli...
Principles of Quality Management
Principle 4: Process approach
For human resource management establishing cost efficient
p...
Principles of Quality Management
Principle 5: System approach to management
Identifying, understanding and managing a syst...
Principles of Quality Management
Principle 5: System approach to management
Applying the principle of system approach to m...
Principles of Quality Management
Principle 5: System approach to management
Beneficial applications of this principle incl...
Principles of Quality Management
Principle 6: Continual improvement
Continual improvement should be a permanent objective ...
Principles of Quality Management
Principle 6: Continual improvement
Applying the principle of continual improvement leads ...
Principles of Quality Management
Principle 6: Continual improvement
• Providing every member of the organisation with appr...
Principles of Quality Management
Principle 6: Continual improvement
Beneficial applications of this principle include:
For...
Principles of Quality Management
Principle 7: Factual approach to decision making
Effective decisions are based on the ana...
Principles of Quality Management
Principle 7: Factual approach to decision making
Beneficial applications of this principl...
Principles of Quality Management
Principle 8: Mutually beneficial supplier relationships
An organisation and its suppliers...
Principles of Quality Management
Principle 8: Mutually beneficial supplier relationships
Applying the principle of mutuall...
Principles of Quality Management
Principle 8: Mutually beneficial supplier relationships
Beneficial applications of this p...
Dimensions of Quality
9-38
• Performance - main characteristics of the product/service
• Aesthetics - appearance, feel, sm...
Examples of Quality Dimensions
9-39
Dimension
1. Performance
2. Aesthetics
3. Special features
(Product)
Automobile
Everyt...
Examples of Quality Dimensions (Cont’d)
9-40
Dimension
5. Reliability
6. Durability
7. Perceived
quality
8. Serviceability...
Service Quality
• Convenience
• Reliability
• Responsiveness
• Time
• Assurance
• Courtesy
• Tangibles
9-41Confidential to...
Examples of Service Quality
Dimension Examples
1. Convenience Was the service center conveniently located?
2. Reliability ...
Challenges with Service Quality
• Customer expectations often change
• Different customers have different expectations
• E...
Determinants of Quality
9-44
Service
Ease of
use
Conforms
to design
Design
Confidential to SoftTech Engineers Pvt. Ltd. Pu...
Determinants of Quality (cont’d)
9-45
• Quality of design
– Intension of designers to include or exclude features in a
pro...
The Consequences of Poor Quality
• Loss of business
• Liability
• Productivity
• Costs
9-46Confidential to SoftTech Engine...
Responsibility for Quality
• Top management
• Design
• Procurement
• Production/operations
• Quality assurance
• Packaging...
Costs of Quality
• Failure Costs - costs incurred by defective parts/products or
faulty services.
• Internal Failure Costs...
Costs of Quality (continued)
• Appraisal Costs
– Costs of activities designed to ensure quality or
uncover defects
• Preve...
Ethics and Quality
• Substandard work
– Defective products
– Substandard service
– Poor designs
– Shoddy workmanship
– Sub...
Quality Awards
• Malcolm Baldrige National Quality Award
08/01/16 Confidential to SoftTech Engineers Pvt. Ltd. Pune
Quality Awards
• Malcolm Baldrige National Quality Award
08/01/16 Confidential to SoftTech Engineers Pvt. Ltd. Pune
Quality Awards
• Benefits of Baldrige Competition
08/01/16 Confidential to SoftTech Engineers Pvt. Ltd. Pune
• Financial s...
Quality Awards
• European Quality Award
08/01/16 Confidential to SoftTech Engineers Pvt. Ltd. Pune
Prizes intended to iden...
Quality Awards
• The Deming Prize
Confidential to SoftTech Engineers Pvt. Ltd. Pune
• Honoring W. Edwards Deming
• Japan’s...
Quality Certification
• ISO 9000
– Set of international standards on quality management
and quality assurance, critical to...
ISO 9000 Standards
Requirements
– System requirements
– Management
– Resource
– Realization
– Remedial
9-57Confidential to...
ISO 9000 Standards
In December 2000 the first major changes to ISO 9000 were made, introducing the
following three new sta...
ISO 9000 Quality Management Principles
• Customer focus
• Leadership
• People involvement
• Process approach
• A systems a...
ISO 14000
• ISO 14000 - A set of international standards for assessing a
company’s environmental performance
• Standards f...
Total Quality Management
A philosophy that involves everyone in an organization in a
continual effort to improve quality a...
The TQM Approach
1. Find out what the customer wants
2. Design a product or service that meets or exceeds
customer wants
3...
Elements of TQM
1. Continual improvement
2. Competitive benchmarking
3. Employee empowerment
4. Team approach
5. Decisions...
Continuous Improvement
• Philosophy that seeks to make never-ending
improvements to the process of converting
inputs into ...
Quality at the Source
The philosophy of making each worker
responsible for the quality of his or her
work.
9-65Confidentia...
Six Sigma
• Statistically
– Having no more than 3.4 defects per million
• Conceptually
– Program designed to reduce defect...
Six Sigma Programs
• Six Sigma programs
– Improve quality
– Save time
– Cut costs
• Employed in
– Design
– Production
– Se...
Six Sigma Management
• Providing strong leadership
• Defining performance metrics
• Selecting projects likely to succeed
•...
Six Sigma Technical
• Improving process performance
• Reducing variation
• Utilizing statistical models
• Designing a stru...
Six Sigma Team
• Top management
• Program champions
• Master “black belts”
• “Black belts”
• “Green belts”
9-70Confidentia...
Six Sigma Process
• Define
• Measure
• Analyze
• Improve
• Control
9-71
DMAIC
Confidential to SoftTech Engineers Pvt. Ltd....
Obstacles to Implementing TQM
• Lack of:
– Company-wide definition of quality
– Strategic plan for change
– Customer focus...
• Poor inter-organizational communication
• View of quality as a “quick fix”
• Emphasis on short-term financial results
• ...
Criticisms of TQM
1. Blind pursuit of TQM programs
2. Programs may not be linked to strategies
3. Quality-related decision...
Basic Steps in Problem Solving
1. Define the problem and establish an improvement goal
2. Define measures and collect data...
The PDSA Cycle
9-76
Plan
Do
Study
Act
Confidential to SoftTech Engineers Pvt. Ltd. Pune
The Process Improvement Cycle
9-77
Implement the
Improved process
Select a
process
Study/document
Seek ways to
Improve it
...
Process Improvement
Process Improvement: A systematic approach to improving a
process
• Process mapping
• Analyze the proc...
Process Improvement and Tools
• Process improvement - a systematic approach to
improving a process
– Process mapping
– Ana...
Basic Quality Tools
• Flowcharts
• Check List
• Histograms
• Pareto Charts
• Scatter diagrams
• Control charts
• Cause-and...
Basic Quality Tools
Flowcharts
• A flowchart is a schematic diagram of the sequence of steps
involved in an operation or p...
Basic Quality Tools
Checklist
• Checklists are a simple way of gathering data so that decisions
can be based on facts, rat...
Basic Quality Tools
Histogram
• A histogram is a chart that shows the frequency distribution
of observed values of a varia...
9-84
80% of the
problems
may be
attributed to
20% of the
causes.
80% of the
problems
may be
attributed to
20% of the
cause...
9-85Confidential to SoftTech Engineers Pvt. Ltd. Pune
Scatter diagrams are graphs that show how two variables are
related ...
9-86Confidential to SoftTech Engineers Pvt. Ltd. Pune
Control Chart: The charts are made by plotting in sequence the
measu...
Cause-and-Effect Diagram: They are charts that identify potential
causes for particular quality problems. They are often c...
Run Chart
9-88
Time (Ho urs )
0.44
0.46
0.48
0.5
0.52
0.54
0.56
0.58
1 2 3 4 5 6 7 8 9 10 11 12
Time (Hours)
Diameter
Conf...
Tracking Improvements
9-89
UCL
LCL
LCL
LCL
UCL
UCL
Process not centered
and not stable
Process centered
and stable
Additio...
Methods for Generating Ideas
• Brainstorming
• Quality circles
• Interviewing
• Benchmarking
• 5W2H (Who, What, When, Wher...
Quality Circles
• Team approach
– List reduction
– Balance sheet
– Paired comparisons
9-91Confidential to SoftTech Enginee...
Benchmarking Process
• Identify a critical process that needs improvement
• Identify an organization that excels in this p...
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Quality management

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Quality management

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Quality management

  1. 1. QualityQuality ManagementManagement Confidential to SoftTech Engineers Pvt. Ltd. Pune
  2. 2. Quality is the ability of a product or service to consistently meet or exceed customer expectations. 9-2 What is Quality Confidential to SoftTech Engineers Pvt. Ltd. Pune
  3. 3. Evolution of Quality Management • 1924 - Statistical process control charts • 1930 - Tables for acceptance sampling • 1940’s - Statistical sampling techniques • 1950’s - Quality assurance/TQC • 1960’s - Zero defects • 1970’s - Quality assurance in services 9-3Confidential to SoftTech Engineers Pvt. Ltd. Pune
  4. 4. Quality Assurance vs. Strategic Approach • Quality Assurance – Emphasis on finding and correcting defects before reaching market • Strategic Approach – Proactive, focusing on preventing mistakes from occurring – Greater emphasis on customer satisfaction 9-4Confidential to SoftTech Engineers Pvt. Ltd. Pune
  5. 5. The Quality Gurus • Walter Shewhart (“Father of statistical quality control”) • W. Edwards Deming • Joseph M. Juran • Armand Feignbaum • Philip B. Crosby • Kaoru Ishikawa • Genichi Taguchi 9-5Confidential to SoftTech Engineers Pvt. Ltd. Pune
  6. 6. Key Contributors to Quality Management 9-6 Contributor Deming Juran Feignbaum Crosby Ishikawa Taguchi Ohno and Shingo Known for 14 points; special & common causes of variation Quality is fitness for use; quality trilogy Quality is a total field Quality is free; zero defects Cause-and effect diagrams; quality circles Taguchi loss function Continuous improvenment Quality Confidential to SoftTech Engineers Pvt. Ltd. Pune
  7. 7. Principles of Quality Management • Quality management is becoming increasingly important to the leadership and management of all organisations. • It is necessary to identify Quality Management as a distinct discipline of management and lay down universally understood and accepted rules for this discipline. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  8. 8. Principles of Quality Management "A quality management principle is a comprehensive and fundamental rule / belief, for leading and operating an organisation, aimed at continually improving performance over the long term by focusing on customers while addressing the needs of all other stake holders". Confidential to SoftTech Engineers Pvt. Ltd. Pune
  9. 9. Principles of Quality Management The Eight Principles are: 1. Customer-Focused Organisation 2. Leadership 3. Involvement of People 4. Process Approach 5. System Approach to Management 6. Continual Improvement 7. Factual Approach to Decision Making and 8. Mutually Beneficial Supplier Relationships. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  10. 10. Principles of Quality Management Principle 1: Customer Focused Organisation Organizations depend on their customers and therefore should understand current and future customer needs, meet customer requirements and strive to exceed customer expectations. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  11. 11. Principles of Quality Management Principle 1: Customer Focused Organisation Applying the principle of customer-focused organisation leads to the following actions: • Understanding the whole range of customer needs and expectations for products, delivery, price, dependability, etc. • Ensuring a balanced approach among customers and other stakeholders (owners, people, suppliers, local communities and society at large) needs and expectations. • Communicating these needs and expectations throughout the organisation, • Measuring customer satisfaction and acting on results, and • Managing customer relationships. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  12. 12. Principles of Quality Management Principle 1: Customer Focused Organisation Beneficial applications of this principle include: For policy and strategy formulation, making customer needs and the needs of other stakeholders understood throughout the organisation; For goal and target setting, ensuring that relevant goals and targets are directly linked to customer needs and expectations; For operational management, improving the performance of the organisation to meet customer needs; For human resources management, ensuring the people have the knowledge and skills required to satisfy the organisation’s customers. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  13. 13. Principles of Quality Management Principle 2: Leadership Leaders establish unity of purpose and direction of the organisation. They should create and maintain the internal environment in which people can become fully involved in achieving the organisation’s objectives. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  14. 14. Principles of Quality Management Principle 2: Leadership Applying the principle of leadership leads to the following actions: • Being proactive and leading by example, • Understanding and responding to changes in the external environment, • Considering the needs of all stakeholders including customers, owners, people, suppliers, local communities and society at large, • Establishing a clear vision of the organisation’s future, • Establishing shared values and ethical role models at all levels of the organisation, • Building trust and eliminating fear, Confidential to SoftTech Engineers Pvt. Ltd. Pune
  15. 15. Principles of Quality Management Principle 2: Leadership • Providing people with the required resources and freedom to act with responsibility and accountability, • Inspiring, encouraging and recognizing people’s contributions, • Promoting open and honest communication, • Educating, training and coaching people, • Setting challenging goals and targets, and • Implementing strategy to achieve these goals and targets. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  16. 16. Principles of Quality Management Principle 2: Leadership Beneficial applications of this principle include: For policy and strategy formulation, establishing and communicating a clear vision of the organisation’s future; For goal and target setting, translating the vision of the organisation into measurable goals and targets; For operational management, empowered and involved people achieve the organisation’s objectives; For human resource management, having an empowered, motivated, well informed and stable workforce. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  17. 17. Principles of Quality Management Principle 3: Involvement of people People at all levels are the essence of an organisation and their full involvement enables their abilities to be used for the organisation’s benefit. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  18. 18. Principles of Quality Management Principle 3: Involvement of people Applying the principle of involvement of people leads to the following actions by the people: • Accepting ownership and responsibility to solve problems, • Actively seeking opportunities to make improvements, • Actively seeking opportunities to enhance their competencies, knowledge and experience, • Freely sharing knowledge and experience in teams and groups, • Focusing on the creation of value for customers, Confidential to SoftTech Engineers Pvt. Ltd. Pune
  19. 19. Principles of Quality Management Principle 3: Involvement of people • Being innovative and creative in furthering the organisations objectives, • Better representing the organisation to customers, local communities and society at large, • Deriving satisfaction from their work, and be enthusiastic and proud to be part of the organisation. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  20. 20. Principles of Quality Management Principle 3: Involvement of people Beneficial applications of this principle include: • For policy and strategy formulation, people effectively contributing to improvement of the policy and strategies of the organisation; • For goal and target setting, people sharing ownership of the organisation’s goals; • For operational management, people being involved in appropriate decisions and process improvements; • For human resource management, people being more satisfied with their jobs and being actively involved in their personal growth and development, for the organisation’s benefit. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  21. 21. Principles of Quality Management Principle 4: Process approach A desired result is achieved more efficiently when activities and related resources are managed as a process. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  22. 22. Principles of Quality Management Principle 4: Process approach Applying the principle of process approach leads to the following actions: • Defining the process to achieve the desired result, • Identifying and measuring the inputs and outputs of the process, • Identifying the interfaces of the process with the functions of the organisation, • Evaluating possible risks, consequences and impacts of processes on customers, suppliers and other stakeholders of the process, Confidential to SoftTech Engineers Pvt. Ltd. Pune
  23. 23. Principles of Quality Management Principle 4: Process approach • Establishing clear responsibility, authority, and accountability for managing the process, • Identifying the internal and external customers, suppliers and other stakeholders of the process • When designing processes, consideration is given to process steps, activities, flows, control measures, training needs, equipment, methods, information, materials and other resources to achieve the desired result. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  24. 24. Principles of Quality Management Principle 4: Process approach Beneficial applications of this principle include: For policy and strategy formulation, utilizing defined processes throughout the organisation will lead to more predictable results, better use of resources, shorter, cycle times and lower costs; For goal and target setting, understanding the capability of processes enables the creation of challenging goals and targets; for operational management, adopting the process approach for all operations results in lower costs, prevention of errors, control of variation, shorter cycle times and more predictable outputs; Confidential to SoftTech Engineers Pvt. Ltd. Pune
  25. 25. Principles of Quality Management Principle 4: Process approach For human resource management establishing cost efficient processes for human resource management, such as hiring, education and training, enables the alignment of these processes with the needs of the organisation and produces a more capable workforce. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  26. 26. Principles of Quality Management Principle 5: System approach to management Identifying, understanding and managing a system of interrelated processes for a given objective improves the organisation’s effectiveness and efficiency. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  27. 27. Principles of Quality Management Principle 5: System approach to management Applying the principle of system approach to management leads to the following actions: • Defining the system by identifying or developing the processes that affect a given objective, • Structuring the system to achieve the objective in the most efficient way, • Understanding the interdependencies among the processes of the system, • Continually improving the system through measurement and evaluation, and • Establishing resource constraints prior to action. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  28. 28. Principles of Quality Management Principle 5: System approach to management Beneficial applications of this principle include: • For policy and strategy formulation, the creation of comprehensive and challenging plans that link functional and process inputs; • For goal and target setting, the goals and targets of individual processes are aligned with the organisation’s key objectives; • For operational management, a broader overview of the effectiveness of processes which leads to understanding the causes of problems and timely improvement actions; • For human resource management, provides a better understanding of roles and responsibilities for achieving common objectives thereby reducing cross functional barriers and improving teamwork. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  29. 29. Principles of Quality Management Principle 6: Continual improvement Continual improvement should be a permanent objective of the organisation. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  30. 30. Principles of Quality Management Principle 6: Continual improvement Applying the principle of continual improvement leads to the following actions: • Making continual improvement of products, processes and systems an objective for every individual in the organisation, • Applying the basic improvement concepts of incremental improvement and breakthrough improvement, • Using periodic assessments against established criteria of excellence to identify areas for potential improvement, • Continually improving the efficiency and effectiveness of all processes, • Promoting prevention based activities, Confidential to SoftTech Engineers Pvt. Ltd. Pune
  31. 31. Principles of Quality Management Principle 6: Continual improvement • Providing every member of the organisation with appropriate education and training, on the methods and tools of continual improvement such as: • The Plan-Do-Check-Act cycle, • Problem solving, process re-engineering, and process innovation, • Establishing measures and goals to guide and track improvements, and recognizing improvements. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  32. 32. Principles of Quality Management Principle 6: Continual improvement Beneficial applications of this principle include: For policy and strategy formulation, creating and achieving more competitive business plans through the integration of continual improvement with strategic and business planning; For goal and target setting, setting realistic and challenging improvement goals and providing the resources to achieve them; For operational management, involving people in the organisation in the continual improvement of processes; For human resource management, providing all people in the organisation with the tools, opportunities, and encouragement to improve products, processes and systems. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  33. 33. Principles of Quality Management Principle 7: Factual approach to decision making Effective decisions are based on the analysis of data and information. Applying the principle of factual approach to decision making leads to the following actions: • Taking measurements and collecting data and information relevant to the objective, • Ensuring the data and information are sufficiently accurate, reliable and accessible, • Analysing the data and information using valid methods, • Understanding the value of appropriate statistical techniques, and making decisions and taking action based on the results of logical analysis balance with experience and intuition. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  34. 34. Principles of Quality Management Principle 7: Factual approach to decision making Beneficial applications of this principle include: For policy and strategy formulation, strategies based on relevant data and information are more realistic and more likely to be achieved; For goal and target setting, using relevant comparative data and information to set realistic and challenging goals and targets; For operational management, data and information are the basis for understanding both process and system performance to guide improvements and prevent future problems; For human resource management, analysing data and information from sources such as people surveys, suggestions and focus groups to guide the formulation of human resource policies. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  35. 35. Principles of Quality Management Principle 8: Mutually beneficial supplier relationships An organisation and its suppliers are interdependent, and a mutually beneficial relationship enhances the ability of both to create value. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  36. 36. Principles of Quality Management Principle 8: Mutually beneficial supplier relationships Applying the principle of mutually beneficial supplier relationships leads to the following actions: • Identifying and selecting key suppliers, • Establishing supplier relationships that balance short-term gains with long-term considerations for the organisation and society at large, • Creating clear and open communications, initiating joint development and improvement of products and processes, jointly establishing a clear understanding of customers’ needs, • Sharing information and future plans, and recognizing supplier improvements and achievements. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  37. 37. Principles of Quality Management Principle 8: Mutually beneficial supplier relationships Beneficial applications of this principle include: For policy and strategy formulation, creating competitive advantage through the development of strategic alliances or partnerships with suppliers; For goal and target setting, establishing more challenging goals and targets through early involvement and participation of suppliers; For operational management, creating and managing supplier relationships to ensure reliable, on-time, defect-free delivery of supplies; For human resource management, developing and enhancing supplier capabilities through supplier training, and joint improvement efforts Confidential to SoftTech Engineers Pvt. Ltd. Pune
  38. 38. Dimensions of Quality 9-38 • Performance - main characteristics of the product/service • Aesthetics - appearance, feel, smell, taste • Special Features - extra characteristics • Conformance - how well product/service conforms to customer’s expectations • Reliability - consistency of performance • Durability - useful life of the product/service • Perceived Quality - indirect evaluation of quality (e.g. reputation) • Serviceability - service after sale Confidential to SoftTech Engineers Pvt. Ltd. Pune
  39. 39. Examples of Quality Dimensions 9-39 Dimension 1. Performance 2. Aesthetics 3. Special features (Product) Automobile Everything works, fit & finish Ride, handling, grade of materials used Interior design, soft touch Gauge/control placement Cellular phone, CD player (Service) Auto Repair All work done, at agreed price Friendliness, courtesy, Competency, quickness Clean work/waiting area Location, call when ready Computer diagnostics Confidential to SoftTech Engineers Pvt. Ltd. Pune
  40. 40. Examples of Quality Dimensions (Cont’d) 9-40 Dimension 5. Reliability 6. Durability 7. Perceived quality 8. Serviceability (Product) Automobile Infrequency of breakdowns Useful life in miles, resistance to rust & corrosion Top-rated car Handling of complaints and/or requests for information (Service) Auto Repair Work done correctly, ready when promised Work holds up over time Award-winning service department Handling of complaints Confidential to SoftTech Engineers Pvt. Ltd. Pune
  41. 41. Service Quality • Convenience • Reliability • Responsiveness • Time • Assurance • Courtesy • Tangibles 9-41Confidential to SoftTech Engineers Pvt. Ltd. Pune
  42. 42. Examples of Service Quality Dimension Examples 1. Convenience Was the service center conveniently located? 2. Reliability Was the problem fixed? 3. Responsiveness Were customer service personnel willing and able to answer questions? 4. Time How long did the customer wait? 5. Assurance Did the customer service personnel seem knowledgeable about the repair? 6. Courtesy Were customer service personnel and the cashier friendly and courteous? 7. Tangibles Were the facilities clean, personnel neat? 9-42 Confidential to SoftTech Engineers Pvt. Ltd. Pune
  43. 43. Challenges with Service Quality • Customer expectations often change • Different customers have different expectations • Each customer contact is a “moment of truth” • Customer participation can affect perception of quality • Fail-safing must be designed into the system 9-43Confidential to SoftTech Engineers Pvt. Ltd. Pune
  44. 44. Determinants of Quality 9-44 Service Ease of use Conforms to design Design Confidential to SoftTech Engineers Pvt. Ltd. Pune
  45. 45. Determinants of Quality (cont’d) 9-45 • Quality of design – Intension of designers to include or exclude features in a product or service • Quality of conformance – The degree to which goods or services conform to the intent of the designers Confidential to SoftTech Engineers Pvt. Ltd. Pune
  46. 46. The Consequences of Poor Quality • Loss of business • Liability • Productivity • Costs 9-46Confidential to SoftTech Engineers Pvt. Ltd. Pune
  47. 47. Responsibility for Quality • Top management • Design • Procurement • Production/operations • Quality assurance • Packaging and shipping • Marketing and sales • Customer service 9-47Confidential to SoftTech Engineers Pvt. Ltd. Pune
  48. 48. Costs of Quality • Failure Costs - costs incurred by defective parts/products or faulty services. • Internal Failure Costs – Costs incurred to fix problems that are detected before the product/service is delivered to the customer. • External Failure Costs – All costs incurred to fix problems that are detected after the product/service is delivered to the customer. 9-48Confidential to SoftTech Engineers Pvt. Ltd. Pune
  49. 49. Costs of Quality (continued) • Appraisal Costs – Costs of activities designed to ensure quality or uncover defects • Prevention Costs – All TQ training, TQ planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring 9-49Confidential to SoftTech Engineers Pvt. Ltd. Pune
  50. 50. Ethics and Quality • Substandard work – Defective products – Substandard service – Poor designs – Shoddy workmanship – Substandard parts and materials 9-50 Having knowledge of this and failing to correct and report it in a timely manner is unethical. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  51. 51. Quality Awards • Malcolm Baldrige National Quality Award 08/01/16 Confidential to SoftTech Engineers Pvt. Ltd. Pune
  52. 52. Quality Awards • Malcolm Baldrige National Quality Award 08/01/16 Confidential to SoftTech Engineers Pvt. Ltd. Pune
  53. 53. Quality Awards • Benefits of Baldrige Competition 08/01/16 Confidential to SoftTech Engineers Pvt. Ltd. Pune • Financial success • Winners share their knowledge • The process motivates employees • The process provides a well-designed quality system • The process requires obtaining data • The process provides feedback
  54. 54. Quality Awards • European Quality Award 08/01/16 Confidential to SoftTech Engineers Pvt. Ltd. Pune Prizes intended to identify role models • Leadership • Customer focus • Corporate social responsibility • People development and involvement • Results orientation
  55. 55. Quality Awards • The Deming Prize Confidential to SoftTech Engineers Pvt. Ltd. Pune • Honoring W. Edwards Deming • Japan’s highly coveted award • Main focus on statistical quality control (The Deming Prize is a Japanese award given to companies to recognize their efforts in quality improvement. The award is named after W. Edwards Deming, who visited Japan after World War II upon the request of Japanese industrial leaders and engineers. While there, he gave a series of lectures on quality. The Japanese considered him such an important quality guru that they named the quality award after him.)
  56. 56. Quality Certification • ISO 9000 – Set of international standards on quality management and quality assurance, critical to international business • ISO 14000 – A set of international standards for assessing a company’s environmental performance 9-56Confidential to SoftTech Engineers Pvt. Ltd. Pune
  57. 57. ISO 9000 Standards Requirements – System requirements – Management – Resource – Realization – Remedial 9-57Confidential to SoftTech Engineers Pvt. Ltd. Pune
  58. 58. ISO 9000 Standards In December 2000 the first major changes to ISO 9000 were made, introducing the following three new standards: ISO 9000:2000–Quality Management Systems–Fundamentals and Standards: Provides the terminology and definitions used in the standards. It is the starting point for understanding the system of standards. ISO 9001:2000–Quality Management Systems–Requirements: This is the standard used for the certification of a firm’s quality management system. It is used to demonstrate the conformity of quality management systems to meet customer requirements. ISO 9004:2000–Quality Management Systems–Guidelines for Performance: Provides guidelines for establishing a quality management system. It focuses not only on meeting customer requirements but also on improving performance. 9-58Confidential to SoftTech Engineers Pvt. Ltd. Pune
  59. 59. ISO 9000 Quality Management Principles • Customer focus • Leadership • People involvement • Process approach • A systems approach to management • Continual improvement • Factual approach to decision making • Mutually beneficial supplier relationships 9-59Confidential to SoftTech Engineers Pvt. Ltd. Pune
  60. 60. ISO 14000 • ISO 14000 - A set of international standards for assessing a company’s environmental performance • Standards focus on three major areas – Management systems standards measure systems development and integration of environmental responsibility into the overall business. – Operations standards include the measurement of consumption of natural resources and energy. – Environmental systems standards measure emissions, effluents, and other waste systems. 9-60Confidential to SoftTech Engineers Pvt. Ltd. Pune
  61. 61. Total Quality Management A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction. 9-61 T Q M Confidential to SoftTech Engineers Pvt. Ltd. Pune
  62. 62. The TQM Approach 1. Find out what the customer wants 2. Design a product or service that meets or exceeds customer wants 3. Design processes that facilitates doing the job right the first time 4. Keep track of results 5. Extend these concepts to suppliers 9-62Confidential to SoftTech Engineers Pvt. Ltd. Pune
  63. 63. Elements of TQM 1. Continual improvement 2. Competitive benchmarking 3. Employee empowerment 4. Team approach 5. Decisions based on facts 6. Knowledge of tools 7. Supplier quality 8. Champion 9. Quality at the source 10. Suppliers 9-63Confidential to SoftTech Engineers Pvt. Ltd. Pune
  64. 64. Continuous Improvement • Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs. • Kaizen: Japanese word for continuous improvement. 9-64Confidential to SoftTech Engineers Pvt. Ltd. Pune
  65. 65. Quality at the Source The philosophy of making each worker responsible for the quality of his or her work. 9-65Confidential to SoftTech Engineers Pvt. Ltd. Pune
  66. 66. Six Sigma • Statistically – Having no more than 3.4 defects per million • Conceptually – Program designed to reduce defects – Requires the use of certain tools and techniques 9-66 Six sigma: A business process for improving quality, reducing costs, and increasing customer satisfaction. Confidential to SoftTech Engineers Pvt. Ltd. Pune
  67. 67. Six Sigma Programs • Six Sigma programs – Improve quality – Save time – Cut costs • Employed in – Design – Production – Service – Inventory management – Delivery 9-67Confidential to SoftTech Engineers Pvt. Ltd. Pune
  68. 68. Six Sigma Management • Providing strong leadership • Defining performance metrics • Selecting projects likely to succeed • Selecting and training appropriate people 9-68Confidential to SoftTech Engineers Pvt. Ltd. Pune
  69. 69. Six Sigma Technical • Improving process performance • Reducing variation • Utilizing statistical models • Designing a structured improvement strategy 9-69Confidential to SoftTech Engineers Pvt. Ltd. Pune
  70. 70. Six Sigma Team • Top management • Program champions • Master “black belts” • “Black belts” • “Green belts” 9-70Confidential to SoftTech Engineers Pvt. Ltd. Pune
  71. 71. Six Sigma Process • Define • Measure • Analyze • Improve • Control 9-71 DMAIC Confidential to SoftTech Engineers Pvt. Ltd. Pune
  72. 72. Obstacles to Implementing TQM • Lack of: – Company-wide definition of quality – Strategic plan for change – Customer focus – Real employee empowerment – Strong motivation – Time to devote to quality initiatives – Leadership 9-72Confidential to SoftTech Engineers Pvt. Ltd. Pune
  73. 73. • Poor inter-organizational communication • View of quality as a “quick fix” • Emphasis on short-term financial results • Internal political and “turf” wars 9-73 Obstacles to Implementing TQM Confidential to SoftTech Engineers Pvt. Ltd. Pune
  74. 74. Criticisms of TQM 1. Blind pursuit of TQM programs 2. Programs may not be linked to strategies 3. Quality-related decisions may not be tied to market performance 4. Failure to carefully plan a program 9-74Confidential to SoftTech Engineers Pvt. Ltd. Pune
  75. 75. Basic Steps in Problem Solving 1. Define the problem and establish an improvement goal 2. Define measures and collect data 3. Analyze the problem 4. Generate potential solutions 5. Choose a solution 6. Implement the solution 7. Monitor the solution to see if it accomplishes the goal 9-75Confidential to SoftTech Engineers Pvt. Ltd. Pune
  76. 76. The PDSA Cycle 9-76 Plan Do Study Act Confidential to SoftTech Engineers Pvt. Ltd. Pune
  77. 77. The Process Improvement Cycle 9-77 Implement the Improved process Select a process Study/document Seek ways to Improve it Design an Improved process Evaluate Document Confidential to SoftTech Engineers Pvt. Ltd. Pune
  78. 78. Process Improvement Process Improvement: A systematic approach to improving a process • Process mapping • Analyze the process • Redesign the process 9-78Confidential to SoftTech Engineers Pvt. Ltd. Pune
  79. 79. Process Improvement and Tools • Process improvement - a systematic approach to improving a process – Process mapping – Analyze the process – Redesign the process • Tools – There are a number of tools that can be used for problem solving and process improvement – Tools aid in data collection and interpretation, and provide the basis for decision making 9-79Confidential to SoftTech Engineers Pvt. Ltd. Pune
  80. 80. Basic Quality Tools • Flowcharts • Check List • Histograms • Pareto Charts • Scatter diagrams • Control charts • Cause-and-effect diagrams • Run charts 9-80Confidential to SoftTech Engineers Pvt. Ltd. Pune
  81. 81. Basic Quality Tools Flowcharts • A flowchart is a schematic diagram of the sequence of steps involved in an operation or process. It provides a visual tool that is easy to use and understand. • By seeing the steps involved in an operation or process, everyone develops a clear picture of how the operation works and where problems could arise. 9-81Confidential to SoftTech Engineers Pvt. Ltd. Pune
  82. 82. Basic Quality Tools Checklist • Checklists are a simple way of gathering data so that decisions can be based on facts, rather than anecdotal evidence. • It is a simple yet effective fact-finding tool that allows the worker to collect specific information regarding the defects observed. 9-82Confidential to SoftTech Engineers Pvt. Ltd. Pune
  83. 83. Basic Quality Tools Histogram • A histogram is a chart that shows the frequency distribution of observed values of a variable. 9-83Confidential to SoftTech Engineers Pvt. Ltd. Pune
  84. 84. 9-84 80% of the problems may be attributed to 20% of the causes. 80% of the problems may be attributed to 20% of the causes. Smeared print Numberofdefects Off center Missing label Loose Other Confidential to SoftTech Engineers Pvt. Ltd. Pune Pareto Analysis: Few quality problems are important, whereas many others are not critical. Basic Quality Tools
  85. 85. 9-85Confidential to SoftTech Engineers Pvt. Ltd. Pune Scatter diagrams are graphs that show how two variables are related to one another. They are particularly useful in detecting the amount of correlation, or the degree of linear relationship, between two variables. Basic Quality Tools
  86. 86. 9-86Confidential to SoftTech Engineers Pvt. Ltd. Pune Control Chart: The charts are made by plotting in sequence the measured values of samples taken from a process. Basic Quality Tools 970 980 990 1000 1010 1020 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 UCL LCL
  87. 87. Cause-and-Effect Diagram: They are charts that identify potential causes for particular quality problems. They are often called fishbone diagrams because they look like the bones of a fish. The “head” of the fish is the quality problem. 9-87Confidential to SoftTech Engineers Pvt. Ltd. Pune Basic Quality Tools
  88. 88. Run Chart 9-88 Time (Ho urs ) 0.44 0.46 0.48 0.5 0.52 0.54 0.56 0.58 1 2 3 4 5 6 7 8 9 10 11 12 Time (Hours) Diameter Confidential to SoftTech Engineers Pvt. Ltd. Pune Basic Quality Tools
  89. 89. Tracking Improvements 9-89 UCL LCL LCL LCL UCL UCL Process not centered and not stable Process centered and stable Additional improvements made to the process Confidential to SoftTech Engineers Pvt. Ltd. Pune
  90. 90. Methods for Generating Ideas • Brainstorming • Quality circles • Interviewing • Benchmarking • 5W2H (Who, What, When, Where, Why, How, How Much) 9-90Confidential to SoftTech Engineers Pvt. Ltd. Pune
  91. 91. Quality Circles • Team approach – List reduction – Balance sheet – Paired comparisons 9-91Confidential to SoftTech Engineers Pvt. Ltd. Pune
  92. 92. Benchmarking Process • Identify a critical process that needs improvement • Identify an organization that excels in this process • Contact that organization • Analyze the data • Improve the critical process 9-92Confidential to SoftTech Engineers Pvt. Ltd. Pune

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