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Product Quality


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Product Quality

  1. 1. Presentation On Product Quality Presented To: Presented By: Ms. Japneet Kaur Aarohi Brar Abhinav Chaturvedi Neha Jain Shobitash Jamwal Sumit Thakur3/11/2014 1
  2. 2. • Definition: The group of features and characteristics of a saleable good which determine its desirability and which can be controlled by a manufacturer to meet certain basic requirements defines product quality. 3/11/2014 2
  3. 3. • In other words, we can say that, Product Quality means to incorporate features that have a capacity to meet consumer needs and give customer satisfaction by altering products to make them free from deficiencies or defects. • It is classified on the basis of: 1. Measured Characteristics 2. Attributes Characteristics 3/11/2014 3
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  5. 5. • Product quality mainly depends on important factors like: oThe type of raw materials used for making a product. oHow well are various production-technologies implemented? oSkill and experience of manpower that is involved in the production process. oAvailability of production-related overheads like power and water supply, transport, etc. 3/11/2014 5
  6. 6. • A manufacturer who is determined to ensure product quality could also maintain strict adherence to specifications and product characteristics. Examples of these may be: • Dimensions, such as length, diameter, thickness or area; • Physical properties, such as weight, volume or strength; • Electrical properties, such as resistance, voltage or current; • Appearance, such as finish, colour or texture; • Functional qualities, such as output or kilometre per litre; • Effects on service, such as taste, feel or noise level. 3/11/2014 6
  7. 7. • If a product fulfils the customer‟s expectations, the customer will be pleased and consider that the product is of acceptable or even high quality. • Quality needs to be defined firstly in terms of parameters or characteristics, which vary from product to product. 3/11/2014 7
  8. 8. • To ensure product quality, the entire process of producing the product must be established and streamlined. • It includes fixing product specifications, preparing product design, procuring suitable raw materials, preparation for manufacture, manufacture, and post manufacturing until it gets into the hands of the consumer. 3/11/2014 8
  9. 9. • In many instances, however, the correction of quality deficiencies is also required at the end of the process since in spite of all the efforts made, the required quality will sometimes not be attained and a company may be faced with a pile of scrap and rework. • Corrective and preventative actions have to be taken to avoid unnecessary wastage and rework. 3/11/2014 9
  10. 10. • Focus on product quality is divided into three stages as discussed below: 1. Before Production 2. During Production 3. After Production 3/11/2014 10
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  12. 12. • Importance of product quality can be seen through two sides: 1. For company : Product quality is very important for the company. This is because, bad quality products will affect the consumer's confidence, image and sales of the company. It may even affect the survival of the company. So, it is very important for every company to make better quality products. 3/11/2014 12
  13. 13. • For consumers : Product quality is also very important for consumers. They are ready to pay high prices, but in return, they expect best-quality products. If they are not satisfied with the quality of product of company, they will purchase from the competitors. • Nowadays, very good quality international products are available in the local market. So, if the domestic companies don't improve their products' quality, they will struggle to survive in the market. 3/11/2014 13
  14. 14. • Product quality is based on five main aspects: 1. Quality of design : The product must be designed as per the consumers' needs and high-quality standards. 2. Quality conformance : The finished products must conform (match) to the product design specifications. 3/11/2014 14
  15. 15. 3. Reliability : The products must be reliable or dependable. They must not easily breakdown or become non-functional. They must also not require frequent repairs. They must remain operational for a satisfactory longer-time to be called as a reliable one. 4. Safety : The finished product must be safe for use and/or handling. It must not harm consumers in any way. 5. Proper storage : The product must be packed and stored properly. Its quality must be maintained until its expiry date. 3/11/2014 15
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  17. 17. Total –Complete Quality -Superior, Best quality having essential characteristics satisfying need Management -Collective body of those who manage or direct any enterprise or interest
  18. 18.  TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, engineering, and production, customer service, etc.) to focus on meeting customer needs and organizational objectives.  TQM, is a method by which management and employees can become involved in the continuous improvement of the production of goods and services.  It aims at increasing business and reducing losses due to wasteful practices.
  19. 19.  The simple objective of TQM is "Do the right things, right the first time, every time".  Some of the companies who have implemented TQM include : Ford Motor Company Phillips Semiconductor SGL Carbon, Motorola and Toyota Motor Company.
  20. 20.  The core of TQM is the customer- supplier interfaces, and at each interface lie a number of processes. This core must be surrounded by commitment to quality, communication of the quality message, and recognition of the need to change the culture of the organization to create total quality and they are supported by the key management functions of people, processes and systems in the organization.
  21. 21.  Customer satisfaction is a measure of how products/services supplied by an organisation meet or surpass customer expectation.  TQM is management approach in achieving long-term success with a strong focus on customer satisfaction.  TQM depends on the participation of all members of an organization to improve processes, products, services and their work culture.
  22. 22.  Focus on Customer i. Identify and meet customer needs ii. Stay tuned to changing needs, e.g. fashion styles  Continuous Improvement Continuous learning and problem solving, e.g. Kaizen, 6 sigma  Employee Empowerment Empower all employees external and internal customers
  23. 23.  Understanding Quality Tools Ongoing training analysis, assessment, correction & implementation tools  Team Approach i. Teams formed around processes of 8 to 10 people ii. Meet weekly to analyze and solve problems  Benchmarking Studying practices at “best in class” companies
  24. 24. Five Major Quality Gurus
  25. 25. Philip Crosby is an American who promoted the phrases“zero defects” and “right first time”. As the quality control manager of the Pershing missile program, Crosby was credited with a 25 percent reduction in the overall rejection rate and a 30 percent reduction in Scrap costs. Philip Crosby believes management should take prime responsibility for quality, and workers only follow their managers example.
  26. 26. He defined the Four Absolutes of Quality Management 1 Quality is conformance to requirements 2 Quality prevention is preferable to quality inspection 3 Zero defects is the quality performance standard 4 Quality is measured in monetary terms Basic Elements of Improvement  Determination (commitment by the top management)  Education (of the employees towards Zero Defects )  Implementation (of the organizational processes towards zero defect )
  27. 27. “Joseph Moses Juran ( December 24 , 1904 – February 28 , 2008 ) was a 20th century management consultant who is principally remembered as an evangelist for quality and quality management , writing several influential books on these subjects.”
  28. 28. Pursue quality on two levels:  The mission of the firm as a whole is to achieve high product quality .  The mission of each individual department is to achieve high production quality.  At operational level, focus should be on conformance to specifications through elimination of defects- use of statistical methods.
  29. 29. It is based on- Quality planning :Process of preparing to meet quality goals. Involves understanding customer needs and developing product features. Quality control : Process of meeting quality goals during operations. Control parameters. Measuring the deviation and taking action. Quality improvement : Process for breaking through to unprecedented levels of performance. Identify areas of improvement and get the right people to bring about the change.
  30. 30. The greatest impact of Dr. Shingo Shigeo's teachings can be classified into the three concepts : 1. Zero Quality Control. 2. Just In Time (JIT). 3. Single Minute Exchange of Dies (SMED).
  31. 31.  In terms of quality, Shingo's paramount contribution was his development in the 1960s of poka-yoke .  The basic idea is to stop the process whenever a defect occurs, define the cause and prevent the recurring source of the defect.  Shingo distinguishes between 'mistakes' (which are inevitable) and 'defects' (which result when a mistake reaches a customer).  The aim of poka yoke is to design devices which prevent mistakes becoming defects.
  32. 32. This famous equation is the essence of Zero Quality Control Concepts formulated by Dr. Shigeo Shingo. Poka-Yoke Techniques to Correct Defects + Source Inspection to Prevent Defects = Zero Quality Control
  33. 33. Dr. Shigeo Shingo's Zero Quality Control (ZQC) techniques make use of the following engineering principles:  100 percent inspections done at the source instead of sampling inspections .  Immediate feedback from successive quality checks and self checks.
  34. 34. Just In Time (JIT). It can be defined as: “ A philosophy of manufacturing based on elimination of all waste and continuous improvement of productivity. It encompasses the successful execution of all manufacturing activities required to produce a final product, from design engineering to delivery ” The primary elements include:  having only the required inventory when needed  to improve quality to zero defects  to reduce lead time by reducing setup times
  35. 35. Single Minute Exchange of Dies (SMED) SMED uses the following four-step procedure: 1. Observe and Analyze How the Setup Is Currently performed 2. Separate Internal from External Setup Activities. 3. Convert Internal to External Setup Activities 4. Simplify and Streamline Activities
  36. 36. Genichi Taguchi, a Japanese engineer, realized the importance of cost associated with poor quality and its impact on corporate profitability + losses (due to poor quality) to the society. His main objective to improve quality and decrease costs. His concept of „Robust Design‟ is intended to optimize quality at the design phase. Taguchi developed a mathematical model in which loss is a quadratic function of the deviation of the quality from its target Value-Quality Loss Function
  37. 37.  John S. Oakland is a British quality expert.  According to him, „quality is meeting the customer‟s requirements‟ and „quality starts at the top‟. He considers the pursuit of quality as the basis for the success of any company.  Oakland opines that quality has emerged as the most significant competitive weapon and total quality management (TQM) is a means of managing for the future.
  38. 38. Oakland describes seven principal features of TQM. They are as follows:  Quality is fulfilling the customer‟s needs.  Most quality problems are among departments.  Quality control is monitoring, finding, and eliminating causes of quality problems.  Quality assurance rests on prevention, management systems, effective audit, and review.  Quality must be managed; it does not just happen.  Focus on prevention, not cure.  Reliability is an extension of quality and enables us to „delight the customer‟.
  39. 39. TQM PRACTICES IN Toyota 3/11/2014 41
  40. 40. TOYOTA Established in 1937 out of Sakichi Toyota’s weaving machine company. Toyota is the 3rd largest automotive manufacturer. Toyota Motor Corporation has been headquartered at Toyota City, Aichi. Toyota has an annual sale of $120 Billion. Produces 5.5 million vehicles per year from 56 manufacturing plants across 6 continents. 3/11/2014 42
  41. 41. STEPS TO IMPLEMENT TQM Kaizen – Focuses on Continuous Process Improvement, to make processes visible, repeatable and measureable. Atarimae Hinshitsu – Focuses on intangible effects on processes and ways to optimize and reduce their effects. 3/11/2014 43
  42. 42. Kansei – Examining the way the user applies the product leads to improvement in the product itself. Miryokuteki Hinshitsu – Broadens management concern beyond the immediate product. 3/11/2014 44
  43. 43. CONCEPT OF QUALITY ASSURANCE Focuses on Assembling and Manufacturing processes of the components. Quality Policy: “ We will strive to meet customer’s expectations by providing world class products and services through total employee commitment and continuous progress”. 3/11/2014 45
  44. 44. ORIGIN In 1951, Toyota launched the Creative Idea Suggestion System to support and encourage employees in making effective contributions to the company’s development. In 1960s, Toyota started manufacturing passenger cars. Determined the major cause of product defect was wear in machines making parts. 3/11/2014 46
  45. 45.  Workers used to operate the machines until it breaks down, and then call the engineer to fix it or throw it away. Steps taken to tackle this problem:- Assigned workers a single machine and to maintain a notebook for their machine. Designed special guards and covers for machines to keep dirt and chips out of machines permanently. Systematic Preventative Maintenance . 3/11/2014 47
  46. 46. PRINCIPLES TO ADOPT TQM  Base your management decision on long-term philosophy, even at the expense of short-term financial goals.  Create continuous process flow to bring problems to the surface. 3/11/2014 48
  47. 47.  Use “pull” system to avoid overproduction.  Level out the workload.  Build the culture of stopping to fix the problems to get quality right for the first time.  Standardize tasks are the foundation for continuous improvement and employee empowerment.  Use visual controls so that no problem is hidden.  Use only reliable and thoroughly tested technology that serves your people and process.  Grow leaders who thoroughly understands the work, live the philosophy and teach it to others also. 3/11/2014 49
  48. 48.  Respect your extended network of partners and suppliers by challenging them and helping them to improve.  Go and see for yourself to thoroughly understand the situation.  Make decision slowly by consensus, considering all the options and implementing the decisions rapidly.  Become a learning organization through relentless reflection and continuous improvement. 3/11/2014 50
  49. 49. RULES TO SET OPERATIONS 1st rule govern the way workers do their work. 2nd rule the way they interact with each other. 3rd rule governs how production lines are constructed. 4th rule is about how people learn to improve 3/11/2014 51
  50. 50. TQM PRACTICES IN Mahindra and Mahindra 3/11/2014 52
  51. 51. MAHINDRA & MAHINDRA Started in 1945, by J.C Mahindra and K.C Mahindra with Guam Mohammed as Mahindra and Mohammed as a steel company in Ludhiana. After Independence Guam Mohammed left the company to become the first Finance Minister of Pakistan. 3/11/2014 53
  52. 52.  Entered automotive manufacturing in 1947 and brought the iconic Willis Jeep in India.  US $15.4 Billion multinational group with more than 144,000 employees in over 100 countries in the world.  New global brand name- Mahindra Rise.  It is ranked 21 in the list of top companies in India in the Fortune 500 list of 2011. 3/11/2014 54
  53. 53. PREVIOUS TO TQM(1990)  Tractor division was the sellers market.  Focus was on quality.  No emphasis on development of new products.  Manufacturing activities were more inspection oriented detection.  Interaction with suppliers purely need based.  Sales and service activities lacked standardization.  Employee involvement in improvement activities were very limited. 3/11/2014 55
  54. 54. TQM JOURNEY The TQM journey started in three phases: 1. Introduction Phase.(1990-1994) 2. Promotion Phase.(1995-1999) 3. Development Phase.(2000 onward) 3/11/2014 56
  55. 55. INTRODUCTION PHASE Improving quality control through process control. Improving quality of bought out components. Increasing productivity and reducing the cost of poor quality. Processes like Juran’s Process of Quality improvement and Statistical Process Control were adopted. 3/11/2014 57
  56. 56. PROMOTION PHASE The focus was in both standardization and improvement of operations Certification ISO 9000 and automotive sector specified standard QS 9000 were obtained. Up gradation of manufacturing facilities. Initiation of Deeming Prize Guidelines. 3/11/2014 58
  57. 57. DEVELOPMENT PHASE Improvement in core processes like new product development, manufacturer supplier management and sales customer operation. Certification to environment management system standards ISO 14001. Continuous improvement activity started including 100 % of the employees. 3/11/2014 59
  58. 58. BENEFITS OF TQM Reduction in number of rejections of units. Higher customer satisfaction. Deeming Prize in 2003. Become market leader by introduction of cars like Scorpio, Vento, XUV 500 etc. 3/11/2014 60
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  60. 60. • Quality management tool is a designation given to a fixed set of graphical techniques identified as being most helpful in troubleshooting issues related to quality. • They are called basic because they are suitable for people with little formal training in statistics and because they can be used to solve the vast majority of quality-related issues. 3/11/2014 62
  61. 61.  Types of quality management tools:- 1) Histograms 2) Pareto diagrams 3) Fishbone’s 4) Pokayoke 5) CEDAC 3/11/2014 63
  62. 62. • A Histogram is a picture of variation or distribution, where data has been grouped into cells and their frequency represented as bars. • It is convenient for large amounts of data, particularly when the range is wide. It gives a picture of the extent of variation, highlights unusual areas and indicates the probability of particular values occurring. 3/11/2014 64
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  64. 64. • The diagram is named after Vilfredo Pareto, and its use in quality assurance was popularized by Joseph M. Juran and Kaoru Ishikawa. • A Pareto diagram is a special type of bar chart where the values being plotted are arranged in descending order. • The graph is accompanied by a line graph which shows the cumulative totals of each category, left to right. 3/11/2014 66
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  66. 66. • The Ishikawa diagram (or fishbone diagram or also cause-and-effect diagram) are diagrams, that shows the causes of a certain event. • A common use of the Ishikawa diagram is in product design, to identify potential factors causing an overall effect. 3/11/2014 68
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  68. 68.  CAUSES • Causes in the diagram are often based on a certain set of causes, such as the 6 M's, 8 P's or 4 S's. • Cause-and-effect diagrams can reveal key relationships among various variables, and the possible causes provide additional insight into process behaviour. 3/11/2014 70
  69. 69. • Poka Yoke is a quality management concept developed by a Matsushita manufacturing engineer named Shigeo Shingo to prevent human errors from occurring in the production line. • Poka yoke (pronounced "poh-kah yoh-kay") comes from two Japanese words - "yokeru" which means, "to avoid", and "poka" which means "inadvertent errors." • Thus, poka yoke more or less translates to "avoiding inadvertent errors". 3/11/2014 71
  70. 70.  Three levels of Poka-Yoke:- • Elimination of spills, leaks, losses at the source or prevention of a mistake from being committed. • Detection of a loss or mistake as it occurs, allowing correction before it becomes a problem. • Detection of a loss or mistake after it has occurred, just in time before it blows up into a major issue (least effective). 3/11/2014 72
  71. 71. • Cause-and-Effect Diagram with the Addition of Cards. • Provide a tool for continuous systematic improvement. • To help identify causes of specific problems and to identify, test, and institute process improvements. 3/11/2014 73
  72. 72.  CEDAC can be applied to a variety of situations:- • Product quality; returns and allowances • Customer complaints • Design problems • Rework • Poor communications • Setup problems • Downtime problems 3/11/2014 74
  73. 73. Cost Of Quality(COQ) • Concept • Definition • Measurement • Use Of COQ in • Total Quality Management & Production Management 3/11/2014 75
  74. 74. Concept • Cost of Quality is a financial measure of the quality performance of an organization .It is essentially a measure of lack of quality and can also be termed as cost of bad quality. • Understanding cost of quality helps organizations to develop quality conformance as a useful strategic business tool that improves their product services &brand image. 3/11/2014 76
  75. 75. Definition • Cost of Quality is the total cost to produce the product or service of the project while ensuring quality standards. It includes prevention and appraisal costs (costs of conformance) as well as failure costs (cost of non- conformance). –It was first described by Armand V. Feigenbaum in a 1956 Harvard Business Review Article . 3/11/2014 77
  76. 76. •Scrap •Rework •Warranty costs Hidden Costs Visible costs • Excessive use of material • High inventory • Inadequate resource utilization • Cost of redesign and re-inspection • Cost of resolving customer problems • Lost customers / Goodwill Visible and hidden costs • Conversion efficiency of materials 3/11/2014 78
  77. 77. Categories of Quality Costs Conformance Non-Conformance Quality Costs AppraisalPrevention External failureInternal failure 3/11/2014 79
  78. 78. Measurement • Cost Of Quality is primarily used to understand, analyze & improve the quality performance. Cost of Quality can be used by shop floor personnel as well as a management measure. It can be used as a standard measure to study an organization’s performance vis-à-vis another similar organization and can be used a benchmarking indices. 3/11/2014 80
  79. 79. How Measurement Is Done? • The costs associated with quality are divided into two categories : • Costs due to poor quality – Failure costs are mainly constituted in poor quality costs • Costs associated with improving quality – Prevention costs and appraisal costs are costs associated with improving quality 3/11/2014 81
  80. 80. Specific Cost Areas in Cost Of Quality Accordingly, Cost Of Quality identifies three specific cost areas: – Prevention Cost: The cost associated with planning, training and writing procedures associated with doing it first time right. – Appraisal Cost: The cost associated with checking and testing to find out whether it has been done first time right. – Failure Cost: The cost (internal or external) associated with failure to do it first time right. (All the above costs can be divided in two categories Hard Cost & Soft Cost) 3/11/2014 82
  81. 81. Hard Cost & Soft Cost ?  3/11/2014 83
  82. 82. Hard Costs • These are the costs generally measured & recorded with the organization. » Example(Production Facility) » Prevention: (Training Programs , Preventive Maintenance) » Appraisal: (Measuring Equipment , Inspection Contracts) » Internal Failure : (Scrap , Rework, Downtime , Overtime) » External Failure: (Warranty, Customer Complaints , Product Liability Lawsuits, Lost Sales) 3/11/2014 84
  83. 83. Soft Costs • These are estimated either directly or as a part of an estimate including normal work . These estimates are then converted to cost by using average cost figures from accounts. » Example (Production Facility) » Prevention: (% of man hours spent on training, writing procedures and planning) » Appraisal: (% man hours spent on checking and testing) » Internal Failure: (% man hours spent on rework and downtime) » External Failure: (% man hours spent on handling failure, warranty etc.) 3/11/2014 85
  84. 84. Graphical Presentation Of COQ 3/11/2014 86
  85. 85. Benefits Of Cost Of Quality • Identifying Cost Of Quality can have several benefits like: –It provides a standard measure across the organization and also inter-organization. –It builds awareness of the importance of quality. –It identifies improvement opportunities. –Being a cost measure, it is useful at shop floor as well as at management level 3/11/2014 87
  86. 86. TQM (Total Quality Management) ? 3/11/2014 88
  87. 87. Total Quality Management A core definition of total quality management (TQM) describes a management approach to long–term success through customer satisfaction. In a TQM effort, all members of an organization participate in improving processes, products, services, and the culture in which they work. Quality Conformance is level of effectiveness of the design and production functions in effecting the product manufacturing requirements and process specifications while meeting process control limits, product tolerances and production 3/11/2014 89
  88. 88. Production Management ? 3/11/2014 90
  89. 89. Production Management • Production management means planning, organizing, directing and controlling of production activities. –Production Management deals with converting raw materials into finished goods or products. It brings together 6 M’s i.e. men. money, machines, materials, methods and markets to satisfy the wants of the people. 3/11/2014 91
  90. 90. Uses Of Cost Of Quality In Total Quality Management Prevention costs and appraisal costs have a direct relationship with quality conformance. »They increase as quality conformance increases. Failure Costs have an inverse relationship with quality conformance. » As quality conformance increases failure costs should decrease. 3/11/2014 92
  91. 91. Impact of TQM on costs. prevention Appraisal Internal Failure Prevention Appraisal Internal Failure 0 5 10 15 20 25 30 35 %ofsales An example from Xerox Corp. Before TQM After TQM 3/11/2014 93
  92. 92. Uses Of Cost Of Quality In Production Management Major benefits of introducing Cost Of Quality concept in Production management are as follows: –It gives scope of continuous improvement. –It shifts focus to customer making product more market centric. –It provides more problem solving options in production/ –It builds better teamwork. –Overall helps in keeping productivity to higher level. 3/11/2014 94
  93. 93. Thank You  Any Queries ? 3/11/2014 95