Quality Management - GMS422 Lecture 2: Foundations of Quality Management

Quality Management Foundations

Key Figures in Quality Management

  • W. Edwards Deming ; continuous improvement

  • Joseph M. Juran ; “Fitness for use.”

  • Philip B. Crosby ; doing it right first time+ zero defects

  • Armand V. Feigenbaum

  • Kaoru Ishikawa

Deming's Philosophy

  • Focuses on continual improvements in product and service quality.

  • Achieved by reducing uncertainty and variability in design, manufacturing, and service processes.

  • Driven by the leadership of top management.

Deming's 14 Points

  1. Create and publish a company mission statement and commit to it.

  2. Learn the new philosophy.

  3. Understand the purpose of inspection.

  4. End business practices driven by price alone.

  5. Constantly improve system of production and service.

  6. Institute training.

  7. Teach and institute leadership.

  8. Drive out fear and create trust.

  9. Optimize team and individual efforts.

  10. Eliminate appeals for work force.

  11. Eliminate numerical quotas and M.B.O. Focus on improvement.

  12. Remove barriers that rob people of pride of workmanship.

  13. Encourage education and self-improvement.

  14. Take action to accomplish the transformation.

Deming's System of Profound Knowledge

  • Appreciation for a system.

  • Understanding variation.

  • Theory of knowledge.

  • Psychology.

Systems

  • Most organizational processes are cross-functional.

  • Parts of a system must work together.

  • Every system must have a purpose.

  • Management must optimize the system as a whole.

Variation

  • Many sources of uncontrollable variation exist in any process.

  • Excessive variation results in product failures, unhappy customers, and unnecessary costs.

  • Statistical methods can be used to identify and quantify variation to help understand it and lead to improvements.

Knowledge

  • Knowledge is not possible without theory.

  • Experience alone does not establish a theory, it only describes.

  • Theory shows cause-and-effect relationships that can be used for prediction.

Psychology

  • People are motivated intrinsically and extrinsically; intrinsic motivation is the most powerful.

  • Fear is demotivating.

  • Managers should develop pride and joy in work.

Juran's Definition of Quality

  • “Fitness for use.”

  • Viewed from external and internal perspectives:

    • Product performance that results in customer satisfaction.

    • Freedom from product deficiencies, which avoids customer dissatisfaction.

Juran's Quality Trilogy

  • Quality Planning

  • Quality Control

  • Quality Improvement

Juran's Breakthrough Sequence

  • Proof of the Need

  • Project Identification

  • Organization for Breakthrough

  • Diagnostic Journey

  • Remedial Journey

  • Holding the Gains

/

Crosby on Quality

  • “Quality is free . . . … It’s not a gift, but it is free. What costs money are the unquality things -- all the actions that involve not doing jobs right the first time.”

  • Quality means conformance to requirements

  • Problems are functional in nature

  • There is no optimum level of defects

  • Cost of quality is the only useful measurement

  • Zero defects is the only performance standard

Feigenbaum's Contributions

  • Instrumental in developing Japanese quality strategy

  • Influenced participative approaches involving all workers

  • Advocated the use of simple visual tools and statistical techniques

Feigenbaum's TQC

  • Total Quality Control (TQC)

  • Three Steps to Quality

    • Quality Leadership, with a strong focus on planning

    • Modern Quality Technology, involving the entire work force

    • Organizational Commitment, supported by continuous training and motivation

Quality Principles, Practices, and Techniques

  • Principles – foundation of the philosophy

  • Practices – activities by which principles are implemented

  • Techniques – tools and approaches to make practices effective

Core Quality Management Principles

  • Customer Focus

  • Continuous Improvement

  • Teamwork

Modern Quality Management Principles (ISO9000)

  1. Customer Focus

  2. Leadership

  3. Engagement of People

  4. Process Approach

  5. Improvement

  6. Evidence-based Decision Making

  7. Relationship Management

Customer Focus Practices

  • Understand the needs of existing and future customers.

  • Align organizational objectives with customer needs and expectations.

  • Meet customer requirements.

  • Measure customer satisfaction.

  • Manage customer relationships.

  • Aim to exceed customer expectations.

Leadership Practices

  • Establish a vision and direction for the organization.

  • Set challenging goals.

  • Model organizational values.

  • Establish trust.

  • Equip and empower employees.

  • Recognize employee contributions.

Engagement of People Practices

  • Ensure that people's abilities are used and valued.

  • Make people accountable.

  • Enable participation in continual improvement.

  • Evaluate individual performance.

  • Enable learning and knowledge sharing.

  • Enable open discussion of problems, constraints.

Process Approach Practices

  • Manage activities as processes.

  • Measure the capability of activities.

  • Identify linkages between activities.

  • Prioritize improvement opportunities.

  • Deploy resources effectively.

Improvement Practices

  • Improve organizational performance and capabilities.

  • Align improvement activities.

  • Empower people to make improvements.

  • Measure improvement consistently.

  • Celebrate improvements.

Evidence-Based Decision Making

  • Ensure the accessibility of accurate and reliable data.

  • Use appropriate methods to analyze data.

  • Make decisions based on analysis.

  • Balance data analysis with practical experience.

Relationship Management

  • Identify and select suppliers to manage costs, optimize resources, and create value.

  • Establish relationships considering both the short and long term.

  • Share expertise, resources, information, and plans with partners.

  • Collaborate on improvement and development activities.

  • Recognize supplier successes.

TQ Techniques

  • Tools to plan work activities, collect data, analyze results, monitor progress, and solve problems.

    • Excel charts

    • Statistical methods

    • Visual aids for analysis, such as flowcharts and Excel charts.

    • Techniques specific to quality assurance activities, such as control charts, measurement systems analysis, reliability models, and so on.

Variation in Processes

  • All work occurs in a system of interconnected processes

  • Variation exists in all processes

  • Understanding and reducing variation are the keys to success

Sources of Variation in a Production Process

  • Operators

  • Methods

  • Materials

  • Measurement instruments

  • Tools

  • Machines

  • Environment

Impact of Variation

  • Variation increases unpredictability.

  • Variation reduces capacity utilization.

  • Variation contributes to a “bullwhip” effect.

  • Variation makes it difficult to find root causes.

  • Variation makes it difficult to detect potential problems early.

Common vs. Special Causes of Variation

  • Uncontrollable variation (common causes) are a natural part of a process

  • Special (assignable) causes of variation can be recognized and controlled

  • Failure to understand these differences can increase variation in a system

Errors in Interpreting Variation

  • Treating as a special cause any fault, complaint, mistake, breakdown, accident or shortage when it actually is due to common causes

  • Attributing to common causes any fault, complaint, mistake, breakdown, accident or shortage when it actually is due to a special cause

Deming Red Bead Experiment

  • Illustrates the impact of common vs. special causes of variation.

Quality Management System (QMS)

  • A mechanism for managing and continuously improving core processes to "achieve maximum customer satisfaction at the lowest overall cost to the organization."

  • Objectives:

    • Higher product conformity and less variation.

    • Fewer defects, waste, rework, and human error.

    • Improved productivity, efficiency, and effectiveness.

QMS Records

  • A permanent reference for implementing and maintaining a QMS.

  • Typical records

    • inspection reports

    • test data

    • audit reports

    • calibration data

    • Sample Quality Manual

Objectives of a QMS

  • Achieve, maintain, and seek to continuously improve product quality (including services) in relationship to requirements.

  • Improve the quality of operations to continually meet customers’ and stakeholders’ stated and implied needs.

  • Provide confidence to internal management and other employees that quality requirements are being fulfilled and that improvement is taking place.

  • Provide confidence to customers and other stakeholders that quality requirements are being achieved in the delivered product.

  • Provide confidence that quality system requirements are fulfilled.

ISO 9000 Standards

  • ISO 9000:2015 - This document provides fundamental background information and establishes definitions of key terms used in the standards.

  • ISO 9001:2015 - This is the core document that provides the specific requirements for a quality management system to help organizations consistently provide products that meet customer and other regulatory requirements.

Benefits of ISO 9001

  • It provides discipline.

  • It contains the basics of a good quality system.

  • It offers a marketing program.

Building an Effective QMS

  • An effective QMS should:

    • Be integrated with enterprise systems such as ERP, MES, and SCM, and should focus on actionable decision making, seeking the root causes of problems, and improving processes and systems.

    • Drive the principles of quality management throughout the organization by fostering effective practices to implement the principles