quality management an overview - nicmar - october 2007
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QUALITY MANAGEMENTAN OVERVIEW
PEM 2007-09NICMAR
October 2007
One of the most important issues that businesses have focused on in the last 20-30 years has been quality.
As markets have become much more competitive - quality has become widely regarded as a key ingredient for success in business.
Meaning of Quality
Webster’s Dictionary degree of excellence of a thing
American Society for Quality totality of features and characteristics
that satisfy needs Consumer’s and Producer’s
Perspective
This is a modern definition of quality
•This is a traditional definition
•Quality of design
•Quality of conformance
•
What is quality?
Quality is first and foremost about meeting the needs and expectations of customers. It is important to understand that quality is about more than a product simply "working properly".
QUALITY Quality is the ability of a product or
service to consistently meet or exceed customer expectations.
“Quality is defined as meeting or exceeding
customers requirements now and in the future, i.e. the product or service is fit for the customer’s use.”
quality as representing all the features of a product or service that affect its ability to meet customer needs.
If the product or service meets all those needs - then it passes the quality test. If it doesn't, then it is sub-standard.
What is Quality?
Fitness for Use Conformance to Specifications Producing the Very Best Products Excellence in Products and Services Total Customer Satisfaction Exceeding Customer Expectations Quality improvement starts with reducing
Product VARIABILITY.
1 What is Quality? Inspection (Detection)
Quality Control (Detection using statistics)
Quality Assurance (Prevention) Zero Defects e.g. ISO 9001:2000
Total Quality Management e.g. EFQM Excellence Model
Statistical Quality Control (SQC) The application of statistical techniques to
the control of quality (SPC, Acceptance Sampling, etc.)
Statistical Process Control (SPC) The application of statistical techniques to
the control of processes (sometimes considered a subset of SQC)
Total Quality Management (TQM) An all-encompassing approach to quality
consistent with Deming’s “14 points”
Some definitions-
Definitions from Definitions from Quality Systems TerminologyQuality Systems Terminology, American , American Society for Quality Control, ANSI/ASQC A3-1987Society for Quality Control, ANSI/ASQC A3-1987
Statistical Process Control How do we reduce Product Variability?
We use Statistical Process Control ! (SPC)
Statistical Process Control: The application of statistical techniques to the control and improvement of processes.
Meaning of Quality:Consumer’s Perspective Fitness for use
how well product or service does what it is supposed to
Quality of design designing quality
characteristics into a product or service
A Mercedes and a Ford are equally “fit for use,” but with different design dimensions
Dimensions of Quality:Manufactured Products Performance
basic operating characteristics of a product; how well a car is handled or its gas mileage
Features “extra” items added to basic features, such as
a stereo CD or a leather interior in a car Reliability
probability that a product will operate properly within an expected time frame; that is, a TV will work without repair for about seven years
Dimensions of Quality:Manufactured Products (cont.)
Conformance degree to which a product meets pre–
established standards Durability
how long product lasts before replacement
Serviceability ease of getting repairs, speed of repairs,
courtesy and competence of repair person
Dimensions of Quality:Manufactured Products (cont.) Aesthetics
how a product looks, feels, sounds, smells, or tastes
Safety assurance that customer will not suffer
injury or harm from a product; an especially important consideration for automobiles
Perceptions subjective perceptions based on brand
name, advertising, and the like
Dimensions of Quality:Service
Time and Timeliness How long must a customer wait for service,
and is it completed on time? Is an overnight package delivered
overnight? Completeness:
Is everything customer asked for provided? Is a mail order from a catalogue company
complete when delivered?
Dimensions of Quality:Service (cont.)
Courtesy: How are customers treated by employees? Are catalogue phone operators nice and
are their voices pleasant? Consistency
Is the same level of service provided to each customer each time?
Is your newspaper delivered on time every morning?
Dimensions of Quality:Service (cont.)
Accessibility and convenience How easy is it to obtain service? Does a service representative answer you calls
quickly? Accuracy
Is the service performed right every time? Is your bank or credit card statement correct every
month? Responsiveness
How well does the company react to unusual situations?
How well is a telephone operator able to respond to a customer’s questions?
Meaning of Quality:Producer’s Perspective
Quality of Conformance Making sure a product or service is
produced according to design if new tires do not conform to
specifications, they wobble if a hotel room is not clean when a guest
checks in, the hotel is not functioning according to specifications of its design
Meaning of Quality:A Final Perspective
Consumer’s and producer’s perspectives depend on each other
Consumer’s perspective: PRICE Producer’s perspective: COST Consumer’s view must dominate
Fitness forConsumer Use
Fitness forConsumer Use
Producer’s PerspectiveProducer’s Perspective Consumer’s PerspectiveConsumer’s Perspective
Quality of ConformanceQuality of Conformance
• Conformance to specifications
• Cost
Quality of DesignQuality of Design
• Quality characteristics• Price
MarketingMarketingProductionProduction
Meaning of Quality Meaning of Quality
Meaning of Quality
Quality Gurus Walter Shewart
In 1920s, developed control charts Introduced the term “quality assurance”
W. Edwards Deming Developed courses during World War II to teach
statistical quality-control techniques to engineers and executives of companies that were military suppliers
After the war, began teaching statistical quality control to Japanese companies
Joseph M. Juran Followed Deming to Japan in 1954 Focused on strategic quality planning
Quality Gurus (cont.) Armand V. Feigenbaum
In 1951, introduced concepts of total quality control and continuous quality improvement
Philip Crosby In 1979, emphasized that costs of poor quality far
outweigh the cost of preventing poor quality In 1984, defined absolutes of quality management—
conformance to requirements, prevention, and “zero defects”
Kaoru Ishikawa Promoted use of quality circles Developed “fishbone” diagram Emphasized importance of internal customer
Evolution of Quality Management
1924 - Statistical process control charts1930 - Tables for acceptance sampling1940’s - Statistical sampling techniques1950’s - Quality assurance/TQC1960’s - Zero defects1970’s - Quality assurance in services
Gurus!
The Quality Gurus
Walter Shewhart “Father of statistical quality control”
W. Edwards Deming Joseph M. Juran Armand Feignbaum Philip B. Crosby Kaoru Ishikawa Genichi Taguchi
Key Contributors to Quality Management
Contributor
Deming Juran Feignbaum Crosby Ishikawa Taguchi
Known for
14 points; special & common causes of variation Quality is fitness for use; quality trilogy Quality is a total field Quality is free; zero defects Cause-and effect diagrams; quality circles Taguchi loss function
Quality
Table 9.2
The early 50s Three gurus who took the
message to Japan
Deming
Juran
Feigenbaum
Guru summaries adapted from Prof Tony BendellAvailable at:www.cems.uwe.ac.uk/~jmcobby/industrialstats/qualitygurus.pdfand fromhttp://www.qmtzone.f9.co.uk/html/guru.html
Dr W Edwards Deming
Deming (1900-1994) is arguably the most famous of
all the Quality Gurus and is often credited with Japan's
rise to industrial dominance.
He was born in 1900 and was awarded a doctorate in
mathematical physics in 1928 by Yale University.
His approach to quality draws heavily on Shewhart's
concept of statistical process control.
Deming's work had initially no impact in America
primarily because in the postwar booming market,
everything built was sold.
Dr W Edwards Deming
For many years at the start of his career he worked as a statistician for the US Government Service, specialising in statistical sampling techniques.
After the war, in 1946, he went to Japan as an Adviser to the Japanese Census. The Union of Japanese Scientists and Engineers (JUSE) invited him to lecture on quality control techniques to engineers and senior managers. His contribution to rebuilding the Japanese economy was recognized by the Emperor who awarded him the Second Order of the Sacred Treasure (Bendell, 1991).
Dr W Edwards Deming
His main message to the Japanese was that
variability is inherent in any process and is due to
two types of causes, namely, special causes
which are easily assignable, identifiable and
solvable by operators themselves, and common
causes which are due to design and operation
and only management can eliminate. Deming
argues that 94 per cent of the quality problems
are the responsibility of management
Dr W Edwards Deming
Throughout the 1950s, Deming conducted many lectures in Japan on statistical methods.
Included in these lectures were many of the principles now constituting the "company-wide" approach or TQM.
Whilst much of Deming's message to the Japanese reflected his statistical background, his work extended far beyond statistical methods.
Dr W Edwards Deming
He encouraged the Japanese to adopt a systematic approach to problem solving, later to become known as the PDCA (Plan, Do, Check, Action) cycle.
He also urged senior managers to become more actively involved in quality improvement programmes.
It was not until the 1970s that managers in the West began to consider whether Deming's methods could do for their companies what they had done for the Japanese.
Dr W Edwards Deming
The PDCA cycle
PLAN
DOCHECK
ACT
Dr Joseph Juran Born 1904 in the Balkans,
naturalised American
Went to Japan in the early 50s
Highly respected internationally,
particularly in Japan
Concerned with the wider aspects
of management, beyond quality
Dr Joseph Juran Manufacturing-based approach
Introduced the concept of the
internal customer
See Kelemen p28 for his 8 step
planning map.
Dr Joseph Juran Quality trilogy
Quality Control Quality Planning
Quality Improvement
Holding the gains
Breakthrough Pareto analysis
Project by project
Dr Armand Feigenbaum Two key texts:
‘Quality Control: Principles, Practice and Administration’ 1951
‘Total Quality Control: Engineering and Management’ 1961
Value-based approach “best for the customer use at the
right selling price” (in Kelemen 2005 p29)
Dr Armand Feigenbaum Total quality:
“Quality is neither a department, nor a technique, nor a philosophy. It is a fundamental way of managing. Central to this is the recognition that, without quality, your customers…are simply not going to buy from you.”
www.managementfirst.com/quality/interviews/feigenbaum
Dr Armand Feigenbaum Costing quality:
Prevention costs – planning systems and processes to avoid defects before they happen
Appraisal costs – inspection and quality control
Internal failure costs – scrap, rework External failure costs – warranty
costs, complaints
From the late 50s Three Japanese gurus who
developed the message
Ishikawa
Taguchi
Shingo
Guru summaries adapted from Prof Tony BendellAvailable at:www.cems.uwe.ac.uk/~jmcobby/industrialstats/qualitygurus.pdfand fromhttp://www.qmtzone.f9.co.uk/html/guru.html
Dr Kaoru Ishikawa
Professor Ishikawa (1915-1989) studied Applied
Chemistry at the Engineering Department of
Tokyo University.
During his life he was awarded many prizes
for his work and writings on Quality Control and is
best known as the pioneer of the Quality Circle
movement in Japan during the 1960s.
Dr Kaoru Ishikawa
Like many of the Japanese "gurus", Ishikawa was keen to promote the use of statistical techniques in commerce and industry.
In particular, Ishikawa believed that all employees should have a basic training in techniques such as:
* Bar Charts and Histograms * Pareto Analysis * Scatter Diagrams * Cause and Effect Analysis
Quality circles: A voluntary group of some 5-10 workers from
the same workshop who meet regularly and are led by a foreman, assistant foreman, work leader or one of the workers.
Their aim is to: contribute to the improvement and development of
the enterprise by dealing with problems and looking for ways to improve the quality of the process and product
Respect human relations and build a happy workshop offer job satisfaction via the drawing out of each
person’s capabilities to achieve their potential.
Dr Kaoru Ishikawa
Dr Kaoru Ishikawa
The ‘Fishbone’ or ‘Ishikawa’ diagram
Methods Equipment
Materials People
Result
Dr Kaoru Ishikawa
Away from his technical contributions, Ishikawa was a strong advocate of the Company-Wide movement.
He saw this approach as implying that:
"quality does not only mean the quality of the product, but also of after-sales services, management, the company itself and the human beings who work in it".
Dr Genichi Taguchi During the Second World War he worked in
the Navigation Institute of the Imperial Japanese Navy and then the Institute of Statistical Mathematics at the Ministry of Education.
In 1950 he joined the Nippon Telephone and Telegraph Company and during his 12 year stay developed many of his methods.
Dr Genichi Taguchi In the early 1970s Taguchi developed the concept
of the "Quality Loss Function" and by the end of that decade was highly acclaimed in his own country.
It was not until 1980 that Western companies, particularly in the USA began to implement Taguchi's methods. The most notable of these being Xerox, Ford and ITT.
Taguchi had made little impact in Europe until the Institute of Statisticians organised a conference in London in 1987 to discuss his methods.
Dr Genichi Taguchi
The UK Taguchi Club, (now the Quality Methods Association) was formed later that year.
Taguchi's methodology is geared towards pushing the concepts of quality and reliability back into the design stage, ie, prior to manufacturing.
His method provides an efficient technique for designing product tests prior to beginning manufacturing.
Taguchi methodology is fundamentally a prototyping technique that enables engineers/designers to produce a robust design which can survive repetitive manufacturing in order to deliver the functionality required by the customer.
Shigeo Shingo Shigeo Shingo is the least known
Japanese quality writer in the West. His approach emphasizes production rather than organizational issues, and it is thus manufacturing-based. He believed that statistical methods detect errors too late in the manufacturing process. Shingo's method emphasises 'zero defects' through good engineering and process investigation and rectification (Shingo, 1986).
Shigeo Shingo His method, poka-yoke or zero defects,
stops the process whenever a defect occurs, defines the cause and prevents the recurring source of the defect. The method relies on a process of continuously monitoring potential sources of error. The machines used in this process are equipped with feedback instrumentation that identifies errors before they become defects, so remedial action can be taken.
From the 70s Later American gurus
Crosby
Peters
Guru summaries adapted from Prof Tony BendellAvailable at:www.cems.uwe.ac.uk/~jmcobby/industrialstats/qualitygurus.pdfand fromhttp://www.qmtzone.f9.co.uk/html/guru.html
Phil Crosby Philip Crosby is perhaps the most well marketed
andcharismatic of the American Quality Gurus.
He is a graduate of the Western Reserve University, and after serving with the US Navy in the Korean war, he held a variety of quality control jobs.
He spent fourteen years working his way up within ITT, eventually becoming Corporate VP and Director of Quality, with worldwide responsibilities.
Phil Crosby In 1979 Crosby published his famous "Quality
is Free" book, and as a result of that success, left ITT to form his own company, Philip Crosby Associates Inc.
Crosby's name is most strongly associated with the "Do it Right First Time" and "Zero Defects" concepts.
Crosby believes that most companies spend up to 5% of their operating revenues in correcting mistakes which need not have been made in the first place.
Phil Crosby
He does not subscribe to the view that
workers should take primary
responsibility for quality. He places
great emphasis on the "top-down"
approach, stressing that senior
management is entirely responsible
for quality
Phil Crosby Crosby defines quality as conformance to
requirements which the company itself has established for its products based directly on its customers' needs. Quality is an inherent characteristic of the product, not an added element. Crosby argues that management is to blame for the vast majority of the quality problems within an organization. Moreover, the most important performance measurement within an organization is the cost of quality and it is cheaper to get things right first time.
Phil Crosby Crosby defines Four Absolutes of Quality Management:
1. Quality is defined as conformance to requirements, not "goodness" or "elegance".
2. The system for causing quality is prevention, not appraisal.
3. The performance standard must be Zero Defects, not "that's close enough".
4. The measurement of quality is the price of non-conformance.
See Kelemen p37 for his 14 steps to quality improvement
Tom Peters Tom Peters is an American consultant who has
researched into the secrets of most successful
American companies. In his most popular book,
In Search of Excellence (with Waterman, 1982)
he presents Excellence as a universal icon that
can guide businesses and sift through winners
and losers. Excellence is synonymous with
quality yet it is indefinable through objective and
rational methods of research.
Tom Peters In a second book, A Passion for
Excellence (1985), Peters and Austin identify leadership as central to the quality improvement process. They see management by walking about (MBWA) as the basis of leadership for it enables the leader to keep in touch with the workers, customers and suppliers.
Tom Peters In his third book, Thriving on Chaos
(1987) he prescribes ways of bringing
about a management revolution in
the West. Such ways tend to focus on
the end-user as the most important
factor in judging quality efforts.
Quality management
Quality management is concerned with controlling activities with the aim of ensuring that products and services are fit for their purpose and meet the specifications.
Quality assurance
Quality assurance is about how a business can design the way a product of service is produced or delivered to minimize the chances that output will be sub-standard. The focus of quality assurance is, therefore on the product design/development stage.
QUALITY ASSURANCEWhy focus on these stages? The idea is
that - if the processes and procedures used to produce a product or service are tightly controlled - then quality will be "built-in". This will make the production process much more reliable, so there will be less need to inspect production output (quality control).
QUALITY ASSURANCE
Quality assurance involves developing close relationships with customers and suppliers. A business will want to make sure that the suppliers to its production process understand exactly what is required - and deliver!
Quality Assurance vs. Strategic Approach
Quality Assurance Emphasis on finding and correcting defects before reaching market
Strategic Approach Proactive, focusing on preventing mistakes from occurring
Greater emphasis on customer satisfaction
Dimensions of quality
QUALITY
Performance
Features
Reliability
Aesthetics
Response
Serviceability
Durability
Conformance
Dimensions of Quality
Performance - main characteristics of the product/service
Aesthetics - appearance, feel, smell, taste
Special Features - extra characteristics
Conformance - how well product/service conforms to customer’s expectations
Reliability - consistency of performance
Dimensions of Quality (Cont’d)
Durability - useful life of the product/service
Perceived Quality - indirect evaluation of quality (e.g. reputation)
Serviceability - service after sale
Examples of Quality Dimensions
Dimension
1. Performance 2. Aesthetics 3. Special features
(Product) Automobile
Everything works, fit & finish Ride, handling, grade of materials used Interior design, soft touch Gauge/control placement Cellular phone, CD player
(Service) Auto Repair
All work done, at agreed price Friendliness, courtesy, Competency, quickness Clean work/waiting area Location, call when ready Computer diagnostics
Examples of Quality Dimensions (Cont’d)
Dimension
5. Reliability 6. Durability 7. Perceived quality 8. Serviceability
(Product) Automobile
Infrequency of breakdowns Useful life in miles, resistance to rust & corrosion Top-rated car Handling of complaints and/or requests for information
(Service) Auto Repair
Work done correctly, ready when promised Work holds up over time Award-winning service department Handling of complaints
Service QualityTangiblesConvenienceReliabilityResponsivenessTimeAssuranceCourtesy
Examples of Service Quality
Dimension Examples1. Tangibles Were the facilities clean, personnel
neat?
2. Convenience Was the service center conveniently located?
3. Reliability Was the problem fixed?
4. Responsiveness
Were customer service personnel willing and able to answer questions?
5. Time How long did the customer wait?
6. Assurance Did the customer service personnel seem knowledgeable about the repair?
7. Courtesy Were customer service personnel and the cashierfriendly and courteous?
Determinants of Quality (cont’d)
Quality of design Intension of designers to include or exclude features in a product or service
Quality of conformance The degree to which goods or services conform to the intent of the designers
The Consequences of Poor Quality
Loss of businessLiabilityProductivityCosts
Purchasing & Inventory
AssessmentOccurrence
Management
Information Management
Process Improvement
Customer Service
Facilities & Safety
The Quality System
Organization Personnel Equipment
Documents & Records
Process Control (QC & EQA) &
Specimen Management
Competitive Advantage The terminology used in the field of strategic management that might possibly garner the prize for the most overworked and least understood catch-phrase is "competitive advantage." The extension of that phrase into "sustainable competitive advantage" is currently an elaboration of ambiguity.
that which one firm can do better than another to satisfy customer requirements.
Some benefit value provided by a product or company, often unique to the organization concerned, that gives it superiority in the market place.
Condition which enables a company
to operate in a more efficient otherwise higher-quality manner than the companies it competes with, and which results in benefits accruing to that company.
process by which a company studies the actions of its major competitors in order to determine what specific strategies they are following and how those strategies affect its own; also used by marketers as they try to develop competitive advantages, ...
Order Qualifiers and Winners
Order winners are the criteria that differentiates the products and services of one firm from another
criterion that differentiates your service/product above the competition price, quality, reliability
Order qualifiers
are the basic criteria that permit the firms products to be considered as candidates for purchase by customers
screening criterion that allows your products to be considered delivery on-time, reliability, general
quality
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