Quality Management - mg 395

quality management

used to ensure that goods and services are produced with appropriate levels of quality to meet the needs of customers

• deals with issues relating to how goods and services are designed, created, and delivered to meet customer expectations

quality

• meeting or exceeding customers’ expectations

• how well outputs of a manufacturing or service process conform to the design specifications

quality of conformance

extent to which a process is able to deliver outputs that conform to the design specifications

specifications

targets and tolerances determined by designers of goods and services

service quality

consistently meeting or exceeding customer expectations and service-delivery system performance criteria

dimensions:

• tangibles

• reliability

• responsiveness

• assurance

• empathy

principles of total quality

• focus on customers and stakeholders

• process focus supported by continuous improvement and learning

• participation and teamwork by an organization’s employees

Deming’s Quality management

focuses on improving product and service quality by reducing variability in goods and services design

• higher quality leads to higher productivity and lower costs leads to improved market share and long-term competitive strength

Deming cycle

PDSA

Plan, Do, Study, and Act

Joseph Juran Principle

defined quality as fitness for use

• sought to improve quality by working within a familiar cultural system

• advocated the use of quality cost and measurement

• focused on elimination of defects using statistical tools for analysis

Crosby’s Absolutes of Quality Management

• quality means conformance to requirements, not elegance

• there is no such thing as quality problem

• doing the job right the first time is always cheaper

• only performance measurement is the cost of quality, which is the expense of nonconformance

• only performance standard is Zero Defects

GAP Model

• evaluates the quality of both goods and services

• identifies where to focus design and improvement efforts

• recognizes that there are several ways to mismanage the creation and delivery of high levels of quality

Gap 1

discrepancy between customer expectations and management perceptions of those expectations

Gap 2

discrepancy between management perceptions of what features constitute:

• target level of quality

• task of translating these perceptions into executable specifications

Gap 3

discrepancy between quality specifications documented in operating and training manuals and plans and their implementation

Gap 4

discrepancy between actual manufacturing and service-delivery system performance and external communications to the customers

Gap 5

difference between the customer’s expectations and perceptions

ISO 9000:2000 standards

define quality system standards, based on the premise that management practices can be standard

• helps outputs meet customer expectations and requirements

• internationally recognized

• prescribe documentation for all processes affecting quality

Principles of ISO 9000:2000

• customer-focused organization

• leadership

• involvement of people

• process approach

• system approach to management

• continual improvement

• factual approach to decision making

• mutually beneficial supplier relationships

six sigma

a business improvement approach

• seeks to find and eliminate causes of defects and errors in manufacturing and service processes

• focuses on outputs that are critical to customers: results in a clear financial return for the organization

six sigma (DPU)

level of capability indicates a level of near-zero defects

• defect: mistake ie error that is passed on to the customer

• unit of work: output of a process or an individual process step

Defects per unit(DPU) = number of defects discovered/number of units produced

six sigma (DPMO)

quantifies quality performance by defects per million opportunities (DPMO)

DPMO= number of defects discovered/opportunities for error x 1,000,000

• in service applications, the term errors per million opportunities (EPMO) is used

key concepts of implementing six sigma

• emphasizing DPMO or EPMO as standard metric that can be applied to all parts of an organization

• providing extensive training followed by project team deployment

• focusing on corporate sponsors responsible for supporting team activities

DMAIC process for implementation of six sigma

(D)

Define (D)

• identify customers and their priorities

• identify and define a suitable project

• identify CTQs (critical-to-quality characteristics)

DMAIC process for implementation of six sigma

(M)

Measure (M)

• determine how to measure a process and how it is performing

• identify key internal processes that influence CTQs

• measure current defects

DMAIC process for implementation of six sigma

(A)

Analyze (A)

• determine likely causes of defects

• understand why defects are generated by identifying the key variables that cause process variation

DMAIC process for implementation of six sigma

(I)

Improve (I)

• identify means to remove the causes of defects

• confirm key variables and quantify their effects on CTQs

• identify the maximum acceptable ranges of key variables and system for measuring deviations of the variables

• modify the process to stay within an acceptable range

DMAIC process for implementation of six sigma

(C)

Control (C)

• determine how to maintain the improvements

• put tools in place to ensure that the key variables remain within acceptable ranges under the modified process

Cost of Quality Measurement

helps operations managers:

• communicate better between operations managers and senior-level managers

• identify and justify major improvement opportunities

• evaluate the importance of quality and improvement in operations

Cost of Quality

Costs associated with avoiding poor quality or those incurred as a result of poor quality

Categories of quality costs

• prevention costs

• appraisal costs

• internal failure costs

• external failure costs

Prevention Costs

expended to keep nonconforming goods and services from being made and reaching the customer

• quality planning costs

• process-control costs

• information-systems costs

• training and general management costs

Appraisal costs

help ascertain quality levels through measurement and data analysis to detect and correct problems

• test and inspection costs

• instrument maintenance costs

• process-measurement and process-control costs

Internal failure costs

incurred as a result of unsatisfactory quality that is found before the delivery of a good or service

• scrap and rework costs

• costs of corrective action

• downgrading costs

• process failures

external failure costs

incurred after poor-quality goods or services reach the customer

• costs due to customer complaints and returns

• goods and services recall costs and warranty and service guarantee claims

• product-liability costs

Seven QC Tools

• flowcharts

• run charts and control charts

• checksheets

• histograms

• pareto diagrams

• cause and effect (or fishbone) diagrams

• scatter diagrams

flowcharts

identify the sequence of activities or flow of materials and information in a process

run charts

line graph with data plotted over time

control charts

include upper and lower control limits

checksheets

data-collection forms where the results are interpreted directly on the forms without additional processing

histograms

graphically represent the frequency of values within a specified group

pareto diagrams

• separate the vital few from the trivial many causes

• provide direction for selecting projects for improvement

Cause and Effect (fishbone) diagrams

present a chain of causes and effects

scatter diagrams

graphical component of regression analysis

5-why technique of root cause analysis

helps redefine a problem statement as a chain of causes and effects to identify the source of the systems

• asks why, ideally 5 times

• uses the seven QC tools

kaizen quality improvement approach

focuses on small, gradual, and frequent improvements over a long term, with:

• minimum financial investment

• participation by everyone in the organization

kaizen event

intense and rapid improvement process

• all resources of a team or department are directed into an improvement project over a short time period

poka-yoke quality improvement approach

processes mistake-proofing

• uses automatic devices or methods to avoid simple human error

• uses applications that are simple, creative, and inexpensive to implement