Chapter 7: Quality

add in Demings 14 points

when did 6 Sigma become famous

1995. reported to save General Electric 200 million

What is this chapters definition of **Quality**

–Ability of supplier to provide goods and services  in conformance with specifications

–Item or service performs per original  requirements

What is this chapters definition of **Function**

What is the item or service designed to perform?

Suitability and what it refers to

–Ability of material to meet its intended function

–Refers to fitness for use

Reliability and what its useful for

–The probability of failure within a given amount of time

–Useful to recognize varying reliabilities of  components and products acquired

What are the 8 Dimensions of Quality

Performance

Features

Reliability

Durability

Conformance

Serviceability

Aesthetics

Percieved Quality

Dimension of Quality: Performance

The primary function of a product or service

Dimension of Quality: Features

The bells and whistles

Dimension of Quality: Reliability

The probability of failure within a specified  time period.

Durability

The Life expectancy

Conformance

The meeting of specifications

Serviceability

the maintenance and ease of fixing

Aesthetics

the look, smell, feel and sound

Percieved Quality

the image in the eyes of the customer

What are the 5 major costs of quality that supply can influence

Prevention Costs

Appraisal costs

Internal Failure Costs

External Failure Costs

Morale Costs

What qualifies as costs of **Good Quality**

Appraisal Costs

Prevention Costs

Cost of Good Quality: whats involved in Appraisal Costs

Associated with evaluation of materials, processes, products

Quality Assessment and approval of suppliers

Performing audits on quality system to make sure they work

Cost of Good Quality: What’re Prevention Costs related to

related to design, implementation and maintenance of quality management system

When are prevention measures planned to happen

before product/material acquired

What are the specific steps to help implement Prevention measures

establish specifications

creation of quality plans

Development, preparation and maintenance of quality training

Cost of Poor Quality: Whats involved in **Internal Failure** costs

occur

Costs:

What’re the costs of Internal Failures?

Defective Products/materials that can’t be used, sold or repaired

costs with fixing those defects

Unnecesary work/inv resulting from errors

finding root causes

Cost of Poor Quality: When do Internal Failures happen?

when product or service doesn’t measure up to standards, identified **before product/service delivered to customer**

When is a problem considered an External Failure?

**after** the product/service is delivered to customer

What’s Included in External Costs

1. Responding to Customer Complaints
2. Failed Products that have to be replaced, Services to be repeated
3. Repair of Returned Products and Products still in the field
4. Handling & Investigating Rejected/Recalled Products, Including transport costs.

What’re the 7 Tools of Quality Control

1. Check Sheets
2. Histograms
3. Pareto Analysis
4. Cause & Effect Diagrams
5. Flow Diagram
6. Control Charts
7. Scatter Diagrams

When and where did the concept of Six Sigma originate

1980’s by Motarola

Who made 6 Sigma famous

Jack Welch

When did Lean first start. Who started it

1910’s With Henry Fords Mass Production line using **Continuous Assembly systems**

Who and when was Lean further implemented

1940’s. Taichi Ohno Shigeo Shingo

**Toyota Production system**

incorporated ford system and others to start LEAN

who coined the term LEAN

John Krafcik. 1988

expanded in 1990 book “The Machine that changed the world.”

What concepts have emerged as LEAN practices and philosophies

Quick Response

Efficient Consumer Response(ECR)

Just In Time(JIT)

Keiretsu Relationships

What’re necessary traits to assure good Service Quality

Reliability

Responsibility

Assurance

Empathy

Tangibles

Reliability

Ability to perform the promised service dependably and accurately

Quality Service: Reliability

Willingness to help customers and provide prompt service

Quality Service: Assurance

Knowledge and courtesy of employees and their ability to inspire trust and confidence

Quality Service: Empathy

Caring, individualized attention the firm provides its customers

Quality Service: Tangibles

Physical facilities, equipment and appearance of personnel

LEAN: Quick Response

the rapid replenishment of a customer's stock by a supplier  with direct access to data from the customer's point of sale.

Lean: Efficient Consumer Response (ECR)

a strategy to increase the level of  services to consumers through close cooperation among retailers, wholesalers,  and manufacturers.

LEAN: Just in Time (JIT)

an inventory strategy to decrease waste by receiving  materials only when and as needed in the production process, thereby reducing  inventory costs.

LEAN: Keiretsu Relationships

involves companies both upstream and downstream \n of a manufacturing process, remaining independent but working closely together.

What is Lean? What is it **not**?

Lean is a philosophy/culture

Lean isn’t a box of methods, idea, or tools

What does Lean usually result in

Large cost reductions

Improved quality

Increased customer service

What Qualifies as Cost of Poor Quality

Internal Failure Costs

External Failure Costs

What’re the 4 Integrated Stages of Quality Function Deployment

Product Planning

Parts deployment

Process Planning

Production Planning

Product Planning

To determine design req’s

Parts Deployment

To determine parts characteristics

Process Planning

to determine manufacturing requirements

Production Planning

To determine Production Requirements

Whats the Six Sigma Acronym

Define
Measure
Analyze
Improve
Control

Define

Describe the problem quantifiably and the underlying process to determine how performance will be measured

Measure

Use measure or metrics to understand performance and the improvement opportunity

Analyze

Identify the true root cause of the underlying problem

Improve

Identify and test the best improvements that address the root cause

Control

Identify sustainment strategies that ensure process performance maintains the improved state

What is the Goal of Six Sigma

attain less than 3.4 defects per million

How does the process of six sigma attain its goal.

Removing Causes of Defect

Minimizing Variability

Control Chart

A graph used to study how a process changes over time

What types of Variation are there

Common Cause Variation

Special Cause Variation

Common Cause Variation

always present to some degree in the process

Special Cause Variation

outside, non-random  problems – e.g.  machine breakdown

What types of special Cause variations are there on statistical graphs?

Out of Control

Trend

Process Shift

Out of Control Special Variation

1 or more points  above or below 3-standard  deviations from the centerline

Trends Special Variation

6 or more points in a row  increasing or decreasing

Process Shift Special Variation

8 or more  points in a row above or  below the centerline

Special Process Control (SPC)

A technique that involves testing a random sample \n of output from a process in order to detect if \n nonrandom changes in the process are \n occurring

What kind of causes are there for Special Process Control(SPC)

Common causes versus special/ Nonrandom Causes

What does ISO stand for

International Organization for Standardization

What are the benefits of having ISO certification

Greater market potential

Compliance to procurement bids

Improved efficiency and cost savings

Higher level of customer service

Heightened staff moral and motivation

What kind of Award is the ISO 9000

–International consensus on good quality management  practices regarding Process control.

What’s Process Capbility

The ability of the process to meet specifications consistently

What kind of award is the ISO 14000

–Similar to ISO 9000 in management principles. Focuses on environmental issues

What’s the The Malcolm Baldrige National Quality  Award

Annual award for U.S. organizations in business,  health care, education and nonprofit.

Recognizes Quality Achievement and Management

Total Quality Management: Demings 14 points

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 in 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.