TOPIC 9

QUALITY

The ability of a product or service to consistently meet or exceed customer expectations.

FREDERICK WINSLOW TAYLOR

• “Father of the Scientific Management” 

  • He gave new emphasis to quality by including product inspection and gauging in his list of fundamental manufacturing management.

G.S. RADFORD

• Improved Taylor’s method.

• 2 significant contributions:

1. Notions of involving quality considerations early in the product design stage.

   1. Making connections among high quality, increased productivity and lower costs.

1924

Bell Telephone Laboratories introduced statistical control charts that could be used to monitor production.

1930

H.F. Dodge and H.G. Romig, also of Bell Labs introduced tables for sampling.

WORLD WAR 2

• caused a dramatic increase in emphasis on quality control.

  • The U.S. Army refined sampling techniques for dealing with large shipments of arms from many suppliers.

END OF 1940S

the U.S. Army, Bell Labs, and major universities were training engineers and other industries in the use of statistical sampling techniques.

1950S

• the quality movement evolved into quality assurance.

  • In the mid-1950s total quality control efforts enlarged the realm of quality efforts from its primary focus on manufacturing to include products design and incoming raw materials.

1960S

• Zero defects gained favor. This approach focused on employee motivation and awareness, and the expectation of perfection from each employee.

  • It evolved from the success of the Martin Company in producing a “perfect” missile for the U.S. Army.

1970

• Quality assurance methods gained increasing emphasis in services including government operations, health care, banking and the travel industry.

• Organization of Petroleum Exporting Countries (OPEC) caused an increase in energy costs, and automobile buyers became more interested in fuel-efficient lower-cost vehicles.

  • Japanese auto producers, who had been improving their products were poised to take advantage of these changes, and they captured an increased share of the automobile market.

LATE 1970S AND 1980S

American producers, alarmed by their loss of market share, spent much trying to improve the quality of their goods while lowering their costs.LAT

LATE 1970S

• The evolution of quality took a dramatic shift from quality assurance to a strategic approach to quality.

  • Up until that time, the main emphasis had been on finding and correcting defective products before they reached the market.

WALTER A. SHEWHART

• father of statistical quality control.

  • He developed control charts for analyzing the output of processes to determine when corrective action was necessary.

W. EDWARD DEMING

a statistics professor at New York University in the 1940s, went to Japan after World War II to assist the Japanese in improving quality and productivity.

DEMING PRIZE

• Prize established by the Japanese and awarded annually to the firms that distinguished themselves with quality management programs.

JOSEPH JURAN

He taught Japanese manufacturers how to improve the quality of their goods, and he, too can be regarded as a major force in Japan’s success in quality.

ARMAD FEIGENBAUM

• He was instrumental in advancing the “cost of nonconformance” approach as a reason for management to commit quality.

  • He recognized that quality was not simply a collection of tools and techniques, but a “total field”.

PHILIP CROSBY

• developed the concept of zero defects and popularized the phrase. “Do it right the first time”.

• He stressed prevention, and he argued against the idea that there will be some level of defectives.

• He is the author of Quality is Free and Quality Without Tears: The Art of Hassle-Free Management.

KAURO ISHIKAWA

• The late Japanese expert on quality was strongly influenced by both Deming and Duran, although he made significant contributions of his own to quality management.

• Among his key contribution was the development of cause-and-effect diagram (fishbone diagram) for problem solving and the implementation of quality circles which involve workers in quality improvement.

GENICHI TAGUCHI

• known for Taguchi loss function which involves a formula for determining the cost of poor quality.

• The idea is that the deviation of a part from a standard causes a loss, and the combined effect of deviations of all parts from their standards can be large, even though each individual deviation is small.

TAIICHI OHNO AND SHIGEO OHNO

• They both developed the philosophy and methods of kaizen, a Japanese term for continuous improvement.

• Continuous improvement is one of the hallmarks of successful quality management.

PERFORMANCE

Main characteristics of the product

AESTHETICS

appearance, feel, smell, taste

SPECIAL FEATURES

extra characteristics

CONFORMANCE

how well a product corresponds to design specifications

RELIABILITY

dependable performance

DURABILITY

 ability to perform overtime

PERCEIVED QUALITY

indirect evaluation of quality

SERVICEABILITY

handling of complaints or repairs

CONSISTENCY

quality does not vary

CONVENIENCE

the availability and accessibility of the service

RELIABILITY

the ability to perform a service dependably, consistently and accurately

RESPONSIVENESS

the willingness of service providers to help customers in unusual situations and to deal with problem

TIME

the speed with which service is delivered

ASSURANCE

the knowledge exhibited by personnel who come into contact with a customer and their ability to convey trust and confidence.

COURTESY

the way customers are treated by employees who come into contact with them

TANGIBLES

the physical appearance of facilities, equipment, personnel, and communication materials

CONSISTENCY

the ability to provide the same level of good quality repeatedly

EXPECTATION

meet or exceeds customer expectation

QUALITY OF DESIGN

• Intention of designers to include or exclude features in a product or service.

QUALITY OF CONFORMANCE

•  The degree to which goods or service conform to the intent of designer.

APPRAISAL COSTS

Costs of activities designed to ensure quality or uncover defects.

PREVENTION COSTS

Costs of preventing defects from occurring.

FAILURE COSTS

Costs caused by defective parts of products or by faulty services.

INTERNAL FAILURE COSTS

Failure discovered during production

EXTERNAL FAILURE COSTS

 failure discovered after delivery to the customer.

RETURN ON QUALITY

An approach that evaluates the financial return of investments in quality.

THE BALDRIGE AWARD

• Annual award given by the U.S. government to recognize quality achievement of U.S. companies.

• It is administered by the National Institute of Standard and Technology to stimulate efforts to improve quality, to recognize quality achievements and to publicize successful programs.

THE EUROPEAN QUALITY AWARD

• It is the most prestigious award for organizational excellence.

THE DEMING PRIZE

•  named in the honor of W. Edwards Deming. It is given annually to any company that meets the award’s standards. The major focus of the judging is on statistical quality control, making it much narrower in scope than the Baldridge Award.

ISO 9000

• A set of international standards on quality management and quality assurance critical to international business. It concerns what organization does to ensure that its products or services conform to customer requirements.

ISO 14000

• A set of international standards for assessing a company’s environmental performance. It concerns what organization does to minimize harmful effects to the environment caused by its operations.

ISO 24700

• A set of international standards that pertains to the quality and performance of office equipment that contains reused components.

TOTAL QUALITY MANAGEMENT

It is a philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.

INDUSTRIAL REVOLUTION

Prior to the ____, skilled craftsmen performed all stages of production. One person or a small group were responsible for an entire product.