2. Definition
Quality is the ability of a product or service to consistently meet or exceed
customer expectations.
Evolution
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
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
9-2
3. Key Contributors to Quality Management
9-3
Contributor Contribution
Deming 14 points: special and common cause of variation
Joseph Juran Quality is fitness for use : quality trilogy
Feignbaum Quality is a total field
Crossby Quality is free: zero defects
Ishikawa Cause-effect diagrams: quality circles
Taguchi Taguchi loss function
Ohno and Shingo Continuous improvement
Walter Shewhart Father of statistical quality control
4. Dimensions of Quality
9-4
Attributes
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
Functionality
Reliability consistency of performance
Durability Useful life of the
product/service
Perceived Quality Indirect evaluation of quality
(e.g. reputation)
Serviceability Service after sale
5. Examples of Quality Dimensions
9-5
Dimension Product (Automobile) Service (Auto Repair)
Reliability Infrequency
Breakdown
Work done Correctly,
Ready when promised
Durability Useful life in mile,
resistance to rust and
corrosion
Work holds up over
time
Perceived
Quality
Top rated Car Award winning service
department
Serviceability Handling of Complaints
and/or request for
information
Handling complaints
6. Dimensions of Service(Servicing) 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?
9-6
7. 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-sating must be designed into the system
9-7
8. Determinants of Quality
9-8
Service
Ease of
use
Conforms
to design
Design
Quality of conformance
The degree to which goods or
services conform to the intent of
the designers
The Consequences of Poor Quality
• Loss of business
• Liability
• Productivity
• Costs
Quality of design
Intension of designers to include or
exclude features in a product or
service
9. Responsibility for Quality
Top management
Design
Procurement
Production/operations
Quality assurance
Packaging and shipping
Marketing and sales
Customer service
9-9
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.
• 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
Ethics and Quality
• Substandard work
– Defective products
– Substandard service
– Poor designs
– Shoddy (Careless)
workmanship
– Substandard parts and
materials
Having knowledge of this and failing to correct
and report it in a timely manner is unethical
10. Total Quality Management
A philosophy that involves everyone in an organization in a continual effort to
improve
quality and achieve customer satisfaction.
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
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
9-10
T Q M
11. Continuous Improvement
Philosophy that seeks to make never-ending improvements to the
process of converting inputs into outputs.
Kaizen: Japanese word for continuous improvement.
Quality at Source
The philosophy of making each worker responsible for the quality of his or her
work.
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
Six sigma: A business process for improving quality, reducing costs, and increasing
customer satisfaction.
9-11
12. Six Sigma
1.Program Outcome
o Improve quality
o Save time
o Cut costs`
9-12
2.Employed in
o Design
o Production
o Service
o Inventory management
o Delivery
3A. Approach(Management)
o Providing strong leadership
o Defining performance metrics
o Selecting projects likely to
succeed
o Selecting and training appropriate
people
3B.Technical Issues
o Improving process
performance
o Reducing variation
o Utilizing statistical models
o Designing a structured
improvement strategy
3C. The Team
o Top management
o Program champions
o Master “black belts”
o “Black belts”
o “Green belts”
4. The Process
o Define
o Measure
o Analyze
o Improve
o Control
DMAIC
13. Obstacles to Implementing TQM
1. Lack of:
I. Company-wide definition
of quality
II. Strategic plan for change
III. Customer focus
IV. Real employee
empowerment
V. Strong motivation
VI. Time to devote to quality
initiatives
VII. Leadership
2. Poor inter-organizational
communication
3. View of quality as a “quick fix”
4. Emphasis on short-term financial
results
5. Internal political and “turf” wars
9-13
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
14. QC: 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
9-14
Plan
Do
Study
Act
The PDSA Cycle
15. The Process Improvement Cycle
9-15
Implement the
Improved process
Select a
process
Study/docume
Seek ways to
Improve it
Design an
Improved process
Evaluate
Document
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
20. Sample No Values of pH
1 5.32 5.29 5.38
2 5.28 5.41 5.4
3 5.33 5.37 5.3
4 5.4 5.29 5.32
5 5.31 5.4 5.39
6 5.34 5.27 5.29
7 5.35 5.33 5.36
8 5.4 5.41 5.38
9 5.33 5.37 5.42
10 5.27 5.38 5.36
An automatic continuous blending process needs to be controlled for acidity of the
output, measured in pH . The pH levels are very fine tuned and measured to a
hundredth of a unit.
The following 10 samples of three readings each were taken this morning when the
process were running smoothly
Design (i) Sample mean chart (ii) the range chart for SQC of the process. For a
sample size of 3 A2=1.023, D4=2.575 and D3=0.
Mean (X’) and Range (R) Chart
23. The telephone department of the city of Jhumratalayya receives a number of
complaints about the functioning of the telephones every day. The figures for the
last twenty days are given as follows
Day No. of Complaints Day No.of Complaints
1 9 11 3
2 15 12 2
3 17 13 11
4 4 14 13
5 10 15 5
6 3 16 16
7 7 17 2
8 13 18 19
9 14 19 2
10 6 20 20
Chart of Attributes(Defects)-C Chart
Is the process in control ? State your assumptions and calculations in support
of your answer.
24. Day
No. of
Complaints
1 9
2 15
3 17
4 4
5 10
6 3
7 7
8 13
9 14
10 6
11 3
12 2
13 11
14 13
15 5
16 16
17 2
18 19
19 2
20 20
Avg 9.55 C'
UCL Of C' = C' + 3√C' 18.82092
LCL Of C' = C' - 3√C' 0.279078
Day No. of Complaints
1 9
2 15
3 17
4 4
5 10
6 3
7 7
8 13
9 14
10 6
11 3
12 2
13 11
14 13
15 5
16 16
17 2
18 2
Avg 8.444444444
UCL Of C' = C' + 3√C' 17.16224
LCL Of C' = C' - 3√C' -0.27335
All within Limit
Report
Observation 20
Defect 2
% of defect 0.1 10%
The system works in 90 % perfection
25. Chart of defectives - P Chart
A set of machines is cranking out screws for household use. Every hour, a sample
consisting of 25 screws is taken and checked for defective screws .Over the two
shifts consisting of 15 hours of continuous running of the set of machines, a total
of 16 screws were found to be defective in the samples taken. If the process of
the production of the screw is in control, construct a suitable control chart for the
process. Will it be a p-chart or c-chart. Explain your answer and construct the
chart. Use 3-sigma limit.
Time (Hours)
Diameter
Run Chart
26. Analysis
9-26
80% of the problems may be attributed to 20% of the causes.
The Pareto Analysis, also known as the Pareto principle or 80/20 rule,
It assumes that the large majority of problems (80%) are determined by a few
important causes 20%).
The founder of this analysis, Italian economist Vilfredo Pareto
A few of the 80/20 rule examples from daily practice are:
80% of the customer complaints ensue from 20% of the products or services
delivered.
20% of the products or services yield 80% of the profits.
20% of the people responsible for sales generate 80% of the operational
income.
20% of the system failures are caused by 80% f the system problems.
Pareto Analysis was further developed by TQM guru Joseph Juran (after 1940) and came into practice in actual
management application(for instance decision-making and other complex issues)
27. Defects No. of Occurance % of Occurance Cumulative % Limit Value of 80
Dirt in Paint 65 0.580357143 58.04% 80.00%
Sag 21 0.1875 76.79% 80.00%
Orange Peel 12 0.107142857 87.50% 80.00%
Thin Paint 5 0.044642857 91.96% 80.00%
Sealer Under 4 0.035714286 95.54% 80.00%
Scratch 2 0.017857143 97.32% 80.00%
Off-Color 2 0.017857143 99.11% 80.00%
Other 1 0.008928571 100.00% 80.00%
112
Pareto Analysis-Example
30. QM: Methods for Generating Ideas
1. Brainstorming
2. Quality circles
3. Interviewing
4. Benchmarking
9-30
Quality Circles
Team approach
– List reduction
– Balance sheet
– Paired comparisons
Benchmarking
1. Identify a critical process that
needs improving
2. Identify an organization that excels
in this process
3. Contact that organization
4. Analyze the data
5. Improve the critical process
31. Deming”s 14 point principle for Quality
1. Create constancy of purpose for improving products and services.
2. Adopt the new philosophy.
3. Cease dependence on inspection to achieve quality.
4. End the practice of awarding business on price alone; instead, minimize total cost
by working with a single supplier.
5. Improve constantly and forever every process for planning, production and
service.
6. Institute training on the job.
7. Adopt and institute leadership.
8. Drive out fear.
9. Break down barriers between staff areas.
10. Eliminate slogans, exhortations and targets for the workforce.
11. Eliminate numerical quotas for the workforce and numerical goals for
management.
12. Remove barriers that rob people of pride of workmanship, and eliminate the
annual rating or merit system.
13. Institute a vigorous program of education and self-improvement for everyone.
14. Put everybody in the company to work accomplishing the transformation.
