Quality Management

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 specifcations 

Quality of conformance 

Extend 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 organizations employees.

Demings 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 Principles

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 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 a quality problem

• Doing the right job 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.

Six Sigma

• 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.

• Level of capability indiciates a level of near zero defects

  • Defect: mistake or error that is passed on to the customer

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

    • Defects per unit = number of defects discovered/ number of units produced.

• Quanitifies wuality performance by defects per million opportunities

  • DMP = number of defects discovered/ opportunities for error X 1,000,000

• In service applications, the term errors per million opportunities EPMO is used

Prevention costs

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

  • Quality planning costs

  • Process control costs

  • Information systems costs

  • Training and general management costs

Appraisal costs

•  helps 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 delviery 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.

conformance quality

specifications/actual

low conformance = numerous defects 

Tolerances

acceptable deviation from specifications

performance quality

attributes

core performance

primary characteristics

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 a 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.

costs of quality management

• Cost of quality: costs associated with avoiding poor quality or those incurred as a result of poor quality

• 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

ISO 9000:2000

• Define quality system standards, based on the premise that management practices can be standardized

  • Helps outputs meet customer expectations and requirements

• Internationally recognized

• Prescribe documentation for all processes affecting quality

• Principles

  • Customer focused organization

  • Leadership

  • Involvement of people

  • Process approach

  • System approach to management

  • Continual imporvement

  • Factual approach to decision making

  • Mutually beneficial supplier relationships.

DMAIC Principles for six sigma 

• Define (D)

  • Identify customers and their priorities

  • Identify and deine a suitable project

  • Identify CTQ;s (Critical to quality characteristics

• Measure (M)

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

  • Identify key internal processes that influence CTQ's

  • Measure current defects

• Analyze (A)

  • Determine likely causes of defects

  • Understand why defects are generated by identifying the key variables that cuase process variation

• Improve (I)

  • Identify means to remove the causes of defects

  • Confirm key variables and quanify their effects on CTQ's

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

  • Modify the process to stay within an acceptable range

• Control ©

  • Determine how to maintain the improvements

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

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