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Defining Quality and TQM, Malcolm Bal ridge

and Deming Awards, Concepts of TQM, SPC andControl Charts Mean, R, p, c Charts

Chapter V:

Managing Quality

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DEFINING QUALITY

The totality of features and characteristics of a product or service that bears on its ability

to satisfy stated or implied needs.- American Society for Quality

Sales Gains Via

Improved response

Higher Prices

Improved reputation

Reduced Costs Via

Increased productivity

Lower rework and scrap costs

Lower warranty costs

Increased ProfitsImproved Quality

The Operations Managers objective is build a total quality management system that identifies

and satisfies customer needs.

Two Ways in which Quality Improves Profitability

http://asq.org/

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Leaders in the Field of Quality Management

Leader Philosophy / Contribution

W. Edwards DemingInsisted on management accept responsibility for building good

systems. Developed 14 points

Joseph M. Juran Believes in top management commitment, support and involvementin the quality effort. Emphasized Quality as Fitness for Use

Armand Feigengaum Laid 40 steps to quality improvement process

Philip B. CrosbyWrote a book titled , Quality is Free. Coined the term Zero

Defects

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Organizational Practices:

Leadership, Mission Statement, Effective

operating procedures, Staff Report, Training

Flow of Activities Necessary to Achieve Total Quality Management

Quality Principles:

Customer Focus, Continuous Improvement,

Benchmarking, Just-in-Time, Tools of TQM

Employee Fulfillment:

Empowerment, Organizational commitment

Customer Satisfaction:

Winning orders, Repeat Customers

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Different Perspectives of Quality

Perspective View on Quality

User based Quality lies in the eyes of beholder

Production Managers basedConforming to standards and making it right the first

time

Product based Quality is a precise and measurable variable

Implication Details

Company Reputation New Products, Employment practices, supplier relations

Product liability Consumer Product Safety Acts and their role

Global Implications Competitive advantage globally

Implications of Quality

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Established in 1988 by the U.S. government

Designed to promote TQM practices

Some criteria

Senior executive leadership; strategic planning; management. of

process quality

Quality results; customer satisfaction

Recent winners

Corning Inc.; GTE; AT&T; Eastman Chemical.

Malcom Baldrige National Quality Award

http://www.nist.gov/baldrige/ http://www.nist.gov/public_affairs/factsheet/mbnqa.cfm

http://www.baldrige.nist.gov/Contacts_Profiles.htm

Winners - 2009

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Malcom Baldrige National Quality Award

Baldrige Award is based on,

SEVEN Criteria categories that

cover everything important in a

Management System:

Leadership

Strategic Planning

Customer Focus

Measurement, Analysis and

Knowledge Management

Workforce Focus

Process Management

Results

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Baldrige Award Criteria Framework

Leadership90 pts

DRIVER

Management of

140 pts.

SYSTEM

quality assurancesystem

Human resource

development and

management

Strategic quality

planning

Quality information

benchmarks and

analysis

150 pts.

60 pts.

60 pts.

Customer satisfaction

300 pts.

Customer satisfactionrelative to competitors

Customer retention

Market share gain

GOAL

Product & service quality

180 pts.

Productivity improvement

Waste reduction/

elimination

Supplier performance

MEASURES OF PROGRESS

Financial results

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International Quality Standards

Industrial Standard Z8101-1981 (Japan) Specification for TQM

ISO 9000 series (Europe/EC)

Common quality standards for products

sold in Europe (even if made in U.S.)

ISO 14000 series (Europe/EC) Standards for recycling, labeling etc.

ASQC Q90 series; MILSTD (U.S.)

ISO 9000 is a set of quality standards developed by the International Organization

for Standardization (ISO)

91 countries in 1987 published a series of quality assurance standards known asISO 9000

ISO revised its standards in 2000 into ISO 9001: 2000 with some modifications.

http://www.iso.org/iso/home.html /

Environmental Standard ISO 14000

Core Elements:

Environmental management

Auditing

Performance evaluation

Labeling

Life-cycle assessment

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TraditionalQuality Process (Manufacturing)

Specifies

Need

Customer

Interprets

Need

Marketing

Designs

Product

Defines

Quality

Engineering

Produces

Product

Plans

Quality

MonitorsQuality

Operations

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Total Quality Management (TQM)

Management of an entire organization from Supplier to Customer so that it excels in all

aspects of products and services that are important to customer.

Stresses a commitment by management to have a continuing company-wide drive toward

excellence in all aspects of products and services that are important to the customer.

Organizational Practices

Quality Principles

EmployeeFulfillment

Attitudes

(e.g., Commitment)

How to Do

What to Do

Effective

Business

Customer

Satisfaction

Achieving Total Quality Management

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Demings Fourteen Points

1. Create consistency of purpose

2. Lead to promote change

3. Build quality into the products

4. Build long term relationships

5. Continuously improve product, quality, and service

6. Start training

7. Emphasize leadership8. Drive out fear

9. Break down barriers between departments

10. Stop haranguing workers

11. Support, help, improve

12. Remove barriers to pride in work

13. Institute a vigorous program of education and self-improvement

14. Put everybody in the company to work on the transformation

http://deming.org/index.cfm?content=52

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The Seven concepts of TQM

1. Continuous

Improvement

2. Six Sigma

3. Employee

Empowerment4. Benchmarking

5. Just In Time

(JIT)

6. Taguchi Concepts

(Quality Loss

Function)

7. TQM Tools

Continuous improvement Also known as Kaizenin

Japanese Language uses PDCA (Plan, Do, Check and Act)

model.

Six SigmaPopularized by Motorola, Honeywell and GE. Its aStatistical tool to measure accuracy. It requires the accuracy of 3.4

defects per million i.e. 99.9997% accuracy.

DMAICapproach in Six Sigma reduces defects to help lower

costs, save time and improve customer satisfaction

Employee empowermentInvolving employees in every step ofthe production process.

Building communication networks that include employees

Developing Open, Supportive supervisors

Moving responsibility from both managers and staff to

production employees

Building high-morale organizations

Creating organizations which have teams and Quality Circles

(QCs)

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Concepts of TQM

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Concepts of TQM

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Concepts of TQM Contd.

Benchmarking - Selecting a demonstrated standard of products, services, costs,or practices that represent the very best performance for processes or activities

very similar to your own organization.

Determine what to benchmark?

Form a benchmark team

Identify benchmarking partners

Collect and analyze benchmarking information

Take action to match or exceed the benchmark

Just-in-time (JIT) JIT systems are designed to produce or deliver goods just as

they are needed. JIT is related to quality in THREE ways.

JIT cuts the cost of quality

JIT improves quality

Better quality means less inventory and a better, easier-to-employ JIT system

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Seven Tools of TQM

Check Sheets

Scatter Diagrams

Cause and Effect Diagram (Ishikawa

Fish bone diagram)

Pareto Chart Flow Chart of Process Diagram

Histogram

Statistical Processs Control (SPC) -Control Charts

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Tools of TQM

Check Sheets Cause and Effect Diagram (Ishikawa)

T l f TQM

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Tools of TQM

Pareto

Chart

SALES

INVESTMENT

Process Diagram OR Flow DiagramScatter Diagram

i i l l ( )

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Statistical Process Control (SPC)

SPC is a statistical technique that is widely used to ensure that processes meet standards.

Walter Shewhart of Bell Laboratories developed two types of causes for variations ordeviations from standards

Natural Causes Deviations occurred due to natural causes inspite of everything undercontrol. Parameters used are Mean and SD. As long as the distribution remains with a

specified limits, the process is said to be undercontrol

Assignable Causes- Deviations that occur due to machine wear and tear, misadjustedequipment, fatigued or untrained workers, or new batches of raw material etc.

A process is said to be operating in statistical control when the only source of variation is

common (Natural) causes.

Objective ofprocess control system is toprovide a statistical signalwhen assignable causes ofvariation are present.

S i i l P C l (SPC)

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Statistical Process Control (SPC)

Control Charts A powerful tool to distinguish between Natural causes and

Assignable causes. They are useful for deciding the UCL and LCL of a particular

process.

Control Charts for Variables - Measured on a continuous scale (Mean Chart andR

(Range) Chart)

Control Charts for Attributes

Those that measure the percent defects in a sample are called as PChart

Those that count the number of defects called as CChart

St ti ti l P C t l St

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Produce Good

Provide Service

Stop Process

Yes

No

Assign.

Causes?Take Sample

Inspect Sample

Find Out WhyCreate

Control Chart

Start

Statistical Process Control Steps

Control Charts for Variables x bar Chart and R Charts

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Control Charts for Variables x bar Chart and R Charts

Control Charts for Attributes P Chart and C Charts

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Control Charts for Attributes P Chart and C Charts

P C t l Ch t

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Process Control Chart

Plot of Sample Data Over Time

0

20

40

60

80

1 5 9 13 17 21

Time

Sample

Value Sample

ValueUCL

Average

LCL

http://www.statsoft.com/textbook/quality-control-charts/

Patterns to Look for in Control Charts

http://www.statsoft.com/textbook/quality-control-charts/http://www.statsoft.com/textbook/quality-control-charts/http://www.statsoft.com/textbook/quality-control-charts/http://www.statsoft.com/textbook/quality-control-charts/http://www.statsoft.com/textbook/quality-control-charts/http://www.statsoft.com/textbook/quality-control-charts/

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Patterns to Look for in Control Charts

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Thank you