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Quality improvement
in technical concerns
Pirzada
January 22, 2013
Chapter 1
Introduction to Quality
p i r z a d a
Quality- Competitive Edge
“No quality, no sales.
No sales, no profit.
No profit, no jobs.”
- VP of Chrysler Corp.
History
The age of Craftsmanship-
Manufactures directly dealing with customers
- (Middle Ages)
 Development of interchangeable component products
- The Blanc’s muskets (1750)
2 years project took 10 years to complete!
Gun Making with Interchangeable parts
http://www.uh.edu/engines/epi1252.htm
History
The Early 20th Century
 Separation of planning from execution (Frederick Taylor)
 Quality by inspection
 Quality departments (responsibility of quality department)
 SQC (Bell Telephone Laboratories- 1920)
War production (II-WW) SQC was strictly imposed.
Early History
Post War II
Shortage of goods- Quality not a priority
SQC introduced in Japan by Juran and Deming
- 20 years -
Kaizen helps Japan beat West in Quality and
penetrate in Western Markets
Early History
The US Quality Revolution
 Government safety regulations
 Consumer Products Safety Commission
 Product-liability judgments
“If Japan can … Why Can’t We?”
Early History
XEROX
- Leadership Through Quality initiative (David Kearns).
 Defects per 1000 machines reduced by 78%
 Unscheduled maintenance decreased by 40%
 Manufacturing cost dropped by 20%
 Product development tine decreased by 60%
 Overall product quality improved by 93%
 Service response time improved by 27%
Won Malcolm National Baldridge Award 1989
Strong growth in 1990’s !
Excellace
From Product Quality to Performance Excellence
NASA: Excellence award for quality and productivity (1985)
US Congress: Malcolm Baldrige Quality Award (1987)
President Reagan: Federal Quality Prototype Award (1988)
Florida Power and Light won Deming Prize (1989)
AT&T Won Deming Prize (1994)
Little Q and Big Q
q: Manufacturing Quality
Q: Management of Quality
Long-term relationships,
Develop strategy,
Measure performance,
Analyze data,
Reward & train employees,
Design and Deliver product and services
Customer satisfaction
Bad Practices
Disappointments and Criticism
Douglas Aircraft
Poor organizational approach
Poor quality strategies
Poor execution of good strategies
Bad Management
Quality
Current and Future Challenges -
- Reinterpretation
1. Partnering
2. Learning systems
3. Adaptability and flexability
4. Environmental Stability
5. Globalization
6. Knowledge Focus
7. Customization and differentiation
8. Shifting Demographies
“Quality is a race
without a finish
line” …..
David Kearns
Defining Quality
What is Quality?
Defining Quality
 Perfection
 Consistency
 Eliminating waste
 Speed of delivery
 Compliance with policies and procedure
 Providing a good, usable product
 Doing it right the first time
 Delighting or pleasing costumers
 Total customer service and satisfaction
Defining Quality
Judgmental Perspective
Transcendent/ superior (Absolute recognizable)
- Rolex watches, BMW, Lexus
Excellence (Abstract/ subjective)
Defining Quality
Product-Based Perspective
- function of some measurable variables
 No. of knots/sq in
 No. of dots/in
 No. of cylinders in an engine
Mistakenly assumed to be related to price!
Quality
User-Based Perspective
-what a customer wants!
 Fitness for intended use.
 Service conditions.
 Environment etc.
Defining Quality
Value-Based Perspective
Usefulness or satisfaction Vs price
(Value pricing)
Better performance for comparable price
- internet facilities
What about purchases based on lowest quotations!
Quality
Manufacturing-Based Perspective
Conformance to specifications (measurable)
- targets, tolerances,
- dimensions, taste, experience
Quality
Integrating Perspectives on Quality
Do designer, manufacturers, service provider,
distributors and customer have same perspective?
Quality
Costumer Driven Quality
Customers, Consumers and Suppliers
 Internal Customers
 External Customers
“Our costumers are intelligent: they expect us continuously
evolve to meet their ever-changing needs. They can’t afford to
have a thousand mediocre suppliers in today’s competitive
environment. They want a few exceptional ones”
CEO Fujitsu
Quality is meeting or exceeding customer expectations
“Quality in a service or product is not what
you put into it. It is what the client or
customer gets out of it.” – Peter Drucker
"If you don't have time to do it right you
must have time to do it over." – Unknown
"Optimizing processes in a company is like
cultivating good habits at home" –
Unknown
“Productivity and efficiency can be
achieved only step by step with sustained
hard work, relentless attention to details and
insistence on the highest standards of
quality and performance.” - J. R. D. Tata
Quality
Total Quality Control
- Total System approach
Total quality is a people-focused management system that aims at
continual increase in costumer satisfaction at continual lower real
cost.
Horizontally and vertically integrated approach stressing learning
and adaptation to continual change. Unyielding and continually
improving effort.
Total Quality
Principles of Total Quality
1. Customer & stakeholder focus.
2. Everyone's participation
3. Continual improvement and learning
Total Quality
Customer & Stakeholder Focus
Beyond merely meeting specifications
Delighting the customer
External costumers are important
Internal customers are equally important
Knowledge, skills, creativity are key to success.
Motivation, recognition of employees.
Total Quality
Participation and teamwork
Empowerment
Freedom and encouragement to make decisions
Horizontal coordination
Involvement in solving systemic problems
(Cross functional boundaries)
Total Quality
Process Focus and Continual Improvement
1. Enhancing value through improved products
2. Reducing defects, wastes etc.
3. Increasing productivity and effectiveness
4. Improving responsiveness
Improvement depends on learning.
1. Planning
2. Execution
3. Assessment of progress
4. Revision of plans
Quality
Quality and Competitive Advantage
- Ability to achieve market superiority
Characteristics
1. Customer need driven
2. Contributes to success of the business
3. Matches companies unique opportunities
4. Difficult to copy
5. Potential of further improvement
6. Provides direction and motivation to
organization
Product quality
provides
profitability due
to larger market
share and
premium prices.
Quality in Pakistan
Where do we stand?
“Quality
means
doing it
right when
no one is
looking.”
Henry Ford

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Introduction to Quality Daniel Pirzada

  • 1. Quality improvement in technical concerns Pirzada January 22, 2013
  • 2. Chapter 1 Introduction to Quality p i r z a d a
  • 3.
  • 4. Quality- Competitive Edge “No quality, no sales. No sales, no profit. No profit, no jobs.” - VP of Chrysler Corp.
  • 5. History The age of Craftsmanship- Manufactures directly dealing with customers - (Middle Ages)  Development of interchangeable component products - The Blanc’s muskets (1750) 2 years project took 10 years to complete!
  • 6. Gun Making with Interchangeable parts http://www.uh.edu/engines/epi1252.htm
  • 7. History The Early 20th Century  Separation of planning from execution (Frederick Taylor)  Quality by inspection  Quality departments (responsibility of quality department)  SQC (Bell Telephone Laboratories- 1920) War production (II-WW) SQC was strictly imposed.
  • 8. Early History Post War II Shortage of goods- Quality not a priority SQC introduced in Japan by Juran and Deming - 20 years - Kaizen helps Japan beat West in Quality and penetrate in Western Markets
  • 9. Early History The US Quality Revolution  Government safety regulations  Consumer Products Safety Commission  Product-liability judgments “If Japan can … Why Can’t We?”
  • 10. Early History XEROX - Leadership Through Quality initiative (David Kearns).  Defects per 1000 machines reduced by 78%  Unscheduled maintenance decreased by 40%  Manufacturing cost dropped by 20%  Product development tine decreased by 60%  Overall product quality improved by 93%  Service response time improved by 27% Won Malcolm National Baldridge Award 1989 Strong growth in 1990’s !
  • 11. Excellace From Product Quality to Performance Excellence NASA: Excellence award for quality and productivity (1985) US Congress: Malcolm Baldrige Quality Award (1987) President Reagan: Federal Quality Prototype Award (1988) Florida Power and Light won Deming Prize (1989) AT&T Won Deming Prize (1994)
  • 12. Little Q and Big Q q: Manufacturing Quality Q: Management of Quality Long-term relationships, Develop strategy, Measure performance, Analyze data, Reward & train employees, Design and Deliver product and services Customer satisfaction
  • 13. Bad Practices Disappointments and Criticism Douglas Aircraft Poor organizational approach Poor quality strategies Poor execution of good strategies Bad Management
  • 14. Quality Current and Future Challenges - - Reinterpretation 1. Partnering 2. Learning systems 3. Adaptability and flexability 4. Environmental Stability 5. Globalization 6. Knowledge Focus 7. Customization and differentiation 8. Shifting Demographies “Quality is a race without a finish line” ….. David Kearns
  • 16. Defining Quality  Perfection  Consistency  Eliminating waste  Speed of delivery  Compliance with policies and procedure  Providing a good, usable product  Doing it right the first time  Delighting or pleasing costumers  Total customer service and satisfaction
  • 17. Defining Quality Judgmental Perspective Transcendent/ superior (Absolute recognizable) - Rolex watches, BMW, Lexus Excellence (Abstract/ subjective)
  • 18. Defining Quality Product-Based Perspective - function of some measurable variables  No. of knots/sq in  No. of dots/in  No. of cylinders in an engine Mistakenly assumed to be related to price!
  • 19. Quality User-Based Perspective -what a customer wants!  Fitness for intended use.  Service conditions.  Environment etc.
  • 20. Defining Quality Value-Based Perspective Usefulness or satisfaction Vs price (Value pricing) Better performance for comparable price - internet facilities What about purchases based on lowest quotations!
  • 21. Quality Manufacturing-Based Perspective Conformance to specifications (measurable) - targets, tolerances, - dimensions, taste, experience
  • 22. Quality Integrating Perspectives on Quality Do designer, manufacturers, service provider, distributors and customer have same perspective?
  • 23. Quality Costumer Driven Quality Customers, Consumers and Suppliers  Internal Customers  External Customers “Our costumers are intelligent: they expect us continuously evolve to meet their ever-changing needs. They can’t afford to have a thousand mediocre suppliers in today’s competitive environment. They want a few exceptional ones” CEO Fujitsu Quality is meeting or exceeding customer expectations
  • 24. “Quality in a service or product is not what you put into it. It is what the client or customer gets out of it.” – Peter Drucker "If you don't have time to do it right you must have time to do it over." – Unknown "Optimizing processes in a company is like cultivating good habits at home" – Unknown “Productivity and efficiency can be achieved only step by step with sustained hard work, relentless attention to details and insistence on the highest standards of quality and performance.” - J. R. D. Tata
  • 25. Quality Total Quality Control - Total System approach Total quality is a people-focused management system that aims at continual increase in costumer satisfaction at continual lower real cost. Horizontally and vertically integrated approach stressing learning and adaptation to continual change. Unyielding and continually improving effort.
  • 26. Total Quality Principles of Total Quality 1. Customer & stakeholder focus. 2. Everyone's participation 3. Continual improvement and learning
  • 27. Total Quality Customer & Stakeholder Focus Beyond merely meeting specifications Delighting the customer External costumers are important Internal customers are equally important Knowledge, skills, creativity are key to success. Motivation, recognition of employees.
  • 28. Total Quality Participation and teamwork Empowerment Freedom and encouragement to make decisions Horizontal coordination Involvement in solving systemic problems (Cross functional boundaries)
  • 29. Total Quality Process Focus and Continual Improvement 1. Enhancing value through improved products 2. Reducing defects, wastes etc. 3. Increasing productivity and effectiveness 4. Improving responsiveness Improvement depends on learning. 1. Planning 2. Execution 3. Assessment of progress 4. Revision of plans
  • 30. Quality Quality and Competitive Advantage - Ability to achieve market superiority Characteristics 1. Customer need driven 2. Contributes to success of the business 3. Matches companies unique opportunities 4. Difficult to copy 5. Potential of further improvement 6. Provides direction and motivation to organization Product quality provides profitability due to larger market share and premium prices.
  • 32. “Quality means doing it right when no one is looking.” Henry Ford