The document discusses quality management techniques including Total Quality Management (TQM), specifications and costs of quality, Six Sigma methodology, Japanese quality methods, and external quality awards and benchmarks. It provides an outline of the key topics to be covered, which are TQM principles and origins, defining and measuring quality, quality tools and techniques, and international standards for quality audits.

1. © The McGraw-Hill Companies, Inc., 2006
Quality Management
In this module we will learn what is Total Quality Management
(TQM), how we specific quality and measure quality costs,
examine tools and techniques and understand international,
Japanese and American quality audits and awards.
Outline
} I.Total Quality Management today
} A.TQM today
} B.What is quality
} C.What is consist of
} D. Ideas drawn from
} II. Quality Specifications and Costs
} A. Specifications
} B. Costs
} III. Six Sigma Quality and Tools
} A. Concept
} B. Methodology
} IV. Japanese quality methods
} A.The Shingo System: Fail-Safe Design
} B. Poka-Yoke includes:
} IV. External awards/benchmarks
} A. Malcolm Baldrige National Quality
} B.ISO 9000
} C. External benchmarking
Entire Chapter
I. Total Quality Management (TQM)
} A.TQM today
} GE has been a major promoter of six sigma for
over 10 years
} Six-Sigma is a highly-disciplined process that helps
deliver near perfect products and services.
} Sigma is a term used to measure how far a process
deviates from perfection.
} Six sigma is world class quality.
} TQM became an important item in the 1980’s as a
response to Japanese quality superiority in
manufactured goods.

2. I. Total Quality Management (TQM)
} B.What is quality
} 1. Definitions
} ..is defined as managing the entire organization so
that it excels on all dimensions of products and
services that are important to the customer
} Industry: Meeting and exceeding customer
expectations.
¨ Problems with this definition
¨ Who is “customer”
¨ Customer expectations might be unjust
¨ Expectations change
I. Total Quality Management (TQM)
} B.What is quality
} 2.View as continuous improvement
} Kaizen
¨ Japan
} Involves
¨ Incremental
¨ Systematic
¨ Does not decay
} Explains why Toyota is doing so well (in spite of some of its
current problems).
} Example of weight loss
I. Total Quality Management (TQM)
} C.What is consist of
} Leadership from senior management
} Customer focus
} Total involvement of the workforce
} Continuous improvement

3. I. Total Quality Management (TQM)
} D. Ideas drawn from
} 1. DEMING
} The engineering background resonates his teachings.
¨ Cross-functional teams
¨ Use of SPC
} 2. CROSBY -WROTE A BOOK TITLED "QUALITY IS FREE"
¨ Is this concept consistent with Juran’s static model?
} 3. FEIGENBAUM
} DEFINED A CONCEPT OF TOTAL QUALITY CONTROL (TQC) - TQC
originated in Japan.
} 4. ISHIKAWA (SEE FISHBONE DIAGRAM)
} 5. JURAN A BOOK "QUALITY CONTROL
II. Quality Specifications & costs
} A. Specifications
} Design quality: Inherent value of the product in the
marketplace
} Dimensions include:
} Performance,
} Features,
} Reliability/Durability,
} Serviceability,
} Aesthetics, and
} Perceived Quality.
} Conformance quality: Degree to which the product
or service design specifications are met
II. Quality Specifications & costs
} B. Costs
} 1. Components
} Voluntary
¨ Appraisal costs –
¨ inspection, testing and other tasks to ensure the product or
process is acceptable
¨ Prevention –
¨ All costs to prevent defects such as the costs to identify the
causes of defects, the cost to implement corrective actions, and
the cost to purchase new equipment
} Involuntary
¨ Internal failure costs –
¨ cost for defects incurred within the system – scrap, rework,
repair
¨ External failure costs –
¨ cost for defects that pass through the system and make it to the
customer – warranty, loss of customers, goodwill, handling
complaints, and product repairs.

4. II. Quality Specifications & costs B. Costs (2. Juran’s model)
III. Six Sigma Quality
} A. Concept
} A philosophy and set of
methods companies use to
eliminate defects in their
products and processes.
} Seeks to reduce variation in
the processes that lead to
product defects.
} The name, “six sigma” refers
to the variation that exists
within plus or minus three
standard deviations of the
process outputs.
III. Six Sigma Quality
} B. Methodology
} Define
} From house of quality
} Measure
} Process outcome
} Internal processes
} Analyze
} Improve
} Control
} Ensure changes last
Measure
Improve
Control Analyze
Define

5. III. Six Sigma Quality
} B. Methodology
} Define
} Run charts
} Checksheets
} Measure
} Pareto charts
} Analyze
} Cause & effect
} Improve
} Flowcharts
} Control
} Control chart
Checksheets
Billing Errors
Wrong Account
Wrong Amount
A/R Errors
Wrong Account
Wrong Amount
Monday
Can be used to keep track of
defects or used to make sure
people collect data in a
correct manner
Run Chart
Can be used to identify
when equipment or
processes are not
behaving according to
specifications
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

6. Pareto Analysis
Can be used
to find when
80% of the
problems
may be
attributed to
20% of the
causes
Assy.
Instruct.
Frequency
Design Purch. Training
80%
Cause & Effect Diagram
(also call the fishbone diagram)
Effect
ManMachine
MaterialMethod
Environment
Possible causes: The results
or effect
Can be used to systematically track backwards to
find a possible cause of a quality problem (or
effect)
Flow Chart – value stream mapping software
available.
No,
Continue…
Material
Received
from
Supplier
Inspect
Material for
Defects
Defects
found?
Return to
Supplier
for Credit
Yes
Can be used to
find quality
problems

7. Control Charts
Can be used to monitor ongoing production process
quality and quality conformance to stated standards of
quality
970
980
990
1000
1010
1020
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
LCL
UCL
IV. Japanese quality methods
} A.The Shingo System: Fail-Safe Design
} Shingo’s argument:
} SQC methods do not prevent defects
} Defects arise when people make errors
} Defects can be prevented by providing workers with feedback on
errors
} B. Poka-Yoke includes:
} Checklists
} Special tooling that prevents workers from making errors
IV. External awards/benchmarks
} A. Malcolm Baldrige National Quality
} The department of commerce
} established in 1987 to help companies review and structure
their quality programs and ultimately improve
competitiveness of American firms.
} There are several categories:
} Small businesses,
} manufacturing,
} service,
} education, and
} health care.

8. IV. External awards/benchmarks
} B. ISO 9000
} Internally focused
} Certification
} A series of international quality standards developed by the
International Organization of Standards.
} More than 100 countries recognize these standards as a
tool for preventing defects through better product design,
manufacturing, installation, and servicing.
} However, I SO does not ensure improved quality
} Revised standards
IV. External awards/benchmarks
} C. External benchmarking
} Goes outside the organization to examine what the industry
competitors and the leaders of other industries are doing.
} Developing measures
Outline
} I.Total Quality Management today
} A.TQM today
} B.What is quality
} C.What is consist of
} D. Ideas drawn from
} II. Quality Specifications and Costs
} A. Specifications
} B. Costs
} III. Six Sigma Quality and Tools
} A. Concept
} B. Methodology
} IV. Japanese quality methods
} A.The Shingo System: Fail-Safe Design
} B. Poka-Yoke includes:
} IV. External awards/benchmarks
} A. Malcolm Baldrige National Quality
} B.ISO 9000
} C. External benchmarking