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Chapter 9 – Management of Quality

Dimensions, determinants, definition, pioneers, Cost of

Quality, awards, ISO certification, TQM, process improvement

methodology, quality tools, PDCA cycle, Quality Circles

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What’s your definition of quality? High price? Reliable? Attractive? Durable? Other?

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Dimensions of Quality Performance Aesthetics Special features Safety Reliability Durability Perceived quality Service after sale

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Quality - a Definition - 1 “Fitness for use” - Juran Based on various factors: reliability,

durability, performance, usefulness, aesthetics, price, etc. - Various

“Meets customer requirements” – Various

“Consistently meets or exceeds customer expectations” - Stevenson

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Quality - a Definition - 2 “Consistently meets or exceeds

customer requirements” – Bentley Emphasis on requirements Includes understanding of expectations Implies an agreement

explicit or Implicit

Concept: “Do it right the first time and every time”

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Determinants of Quality How well a product satisfies its

intended purpose based on 4 factors Design Conformance to the design Ease of use Service after delivery

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Case Study – a personal experience

Program introduction General manager kickoff talk Key question – “What do we do at the

end of the month if we’re not sure that a product meets quality requirements?”

The answer – “That all depends…” Possible consequences Program results

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Quality Gurus / Pioneers - 1

Frederick Taylor (1856-1915) Inspection Gauging

Walter Shewhart (Bell Telephone) (1891-1967) Developed Statistical control charts Mentored Deming PDCA cycle (shared with Deming) Identified 2 causes of variation: chance and

assignable

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Quality Gurus / Pioneers - 2

H.G. Romig and Harold Dodge (Bell Labs) Acceptance sampling tables

W. (William) Edwards Deming (1900-1993) Trained in engineering, mathematics, and physics Physics professor, U.S. Census Bureau, consultant Taught SQC to Japanese QC people (1947-1965) PDCA cycle (shared with Shewhart) Honored by Japanese prize in his name

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Quality Gurus / Pioneers - 2

W. (William) Edwards Deming (cont’d.) 14 points based on:

Constancy of purpose Continual improvement Profound knowledge

Appreciation for a system A theory of variation A theory of knowledge

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Quality Gurus / Pioneers - 3

Joseph M. Juran (Western Electric) (1904- ) Also lectured in Japan Authored/Edited Quality Control Handbook Conceived idea of “Cost of Quality” “Quality Trilogy” concept

Quality planning Quality control Quality improvement

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Quality Gurus / Pioneers - 4 Armand Feigenbaum (GE, General

Systems Company) (????- ) “Cost of nonconformance” Total quality control concept Authored Total Quality Control 40 steps in quality principles

TQC is system for integration… Standards, appraisal, corrective action Technological and human factors 4 categories of quality costs Control quality at the source

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Quality Gurus / Pioneers - 5

Philip Crosby (Martin Marietta, ITT, PCA) (1926-2001) Zero Defects Authored Quality is Free, Quality

Without Tears Started Quality College (multiple

sites) Company teams trained

Emphasized behavioral change

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Quality Gurus / Pioneers - 6

Kaoru Ishikawa (1915-1989) Quality Circles Cause and effect [“fishbone” or

Ishikawa] diagram Promoted statistical methods Recognized internal customer Conceived “company wide quality

control

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Quality Gurus / Pioneers - 7

Genichi Taguchi (1924- ) Emphasized variation reduction Taguchi loss function

Shigeo Shingo (1909-1990) Not focused on quality but had significant

impact Setup standardization Poka-yoke Source inspection systems

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Cost of Quality External Failure

Internal Failure

Prevention

Appraisal

External Failure

Internal Failure

Prevention

Appraisal

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Awards & Prizes

Deming Prize Awarded by Union of Japanese Scientists

& Engineers First awarded in 1951 Named after W. Edwards Deming

Baldrige Award Awarded by US Department of Commerce 1987 legislation Named after Malcolm Baldrige

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Awards & Prizes (cont’d)

European Quality Awards Awards for “organizational excellence” 4 levels of recognition 5 areas of concentration

Other awards Most developed nations have some

form of Quality awards or prizes

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Value of Awards & Prizes Shows effort Largely dependent on money

spent Used in advertising Doesn’t reflect customer view

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International Standards Org’n

ISO 9000 (QMS - Fundamentals and vocabulary)

ISO 9001 (QMS - Requirements) ISO 9004 (QMS Guidance for

performance improvement) ISO 19011 (Guidelines on Quality and/or

Environmental Management Systems Auditing)

ISO 14000 (environmental responsibility)

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ISO Registration What’s been good

Focus on quality Demonstrates effort

What’s been bad (mostly fixed in ISO 9000:2000 Becomes mechanical Emphasizes conformance to documentation, not

meeting QUALITY Doesn’t include customer view

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Quality Today Reflects a blend of concepts and

contributions from the “pioneers” (“gurus”)

Stresses organization-wide TQM Emphasizes the role of the front-line

worker (authority and responsibility) Seeks to recognize achievement

through prizes and certification

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TQM Approach Know customer requirements and wants Design a product to delight the customer Design a process to do the job right (the

first time and) every time Apply fail-safing techniques (“poka-yoke”

devices) Monitor and record results for

improvement ideas Work with suppliers and customers

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Poka-Yoke(Mistake-Proofing)

Developed by Shigeo Shingo An approach for mistake-proofing

processes using automatic devices or methods to avoid simple human or machine error, such as forgetfulness, misunderstanding, errors in identification, lack of experience, absentmindedness, delays, or malfunctions

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Other TQM Points Continual improvement (“kaizen”) Competitive benchmarking Employee enablement Use of teams Training Extension to suppliers Traditional vs. TQM cultures

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Process Improvement Tools

Process flowcharts Check sheets Scatter diagrams Histograms Pareto analysis (charts) Cause-and-effect diagrams

(Ishikawa/Fishbone) Control charts Run charts

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Flowcharts Shows unexpected complexity, problem

areas, redundancy, unnecessary loops, and where simplification may be possible

Compares and contrasts actual versus ideal flow of a process

Allows a team to reach agreement on process steps and identify activities that may impact performance

Serves as a training tool

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Check Sheet Creates easy-to-understand data Builds, with each observation, a

clearer picture of the facts Forces agreement on the definition

of each condition or event of interest

Makes patterns in the data become obvious quickly

xx xxxxxx x

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Scatter Diagram

Supplies the data to confirm a hypothesis that two variables are related

Provides both a visual and statistical means to test the strength of a relationship

Provides a good follow-up to cause and effect diagrams

* * ** * *

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Histogram Displays large amounts of data that are

difficult to interpret in tabular form Shows centering, variation, and shape Illustrates the underlying distribution of

the data Provides useful information for

predicting future performance Helps to answer the question “Is the

process capable of meeting requirements?

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Pareto Diagram Helps a team focus on causes that

have the greatest impact Displays the relative importance of

problems in a simple visual format Helps prevent “shifting the

problem” where the solution removes some causes but worsens others

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Cause and Effect Diagram

Enables a team to focus on the content of a problem, not on the history of the problem or differing personal interests of team members

Creates a snapshot of collective knowledge and consensus of a team; builds support for solutions

Focuses the team on causes, not symptoms

Effect

Cause

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Control Chart Focuses attention on detecting and

monitoring process variation over time Distinguishes special from common

causes of variation Serves as a tool for on-going control Provides a common language for

discussion process performance* * * * *

* *

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Run Chart Monitors performance of one or more processes

over time to detect trends, shifts, or cycles Allows a team to compare performance before

and after implementation of a solution to measure its impact

Focuses attention on truly vital changes in the process

* * * * *

* *

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Process Improvement Sequence - 1

Develop process improvement plan Determine process or area to

examine Form and train Process/Quality

Improvement Team

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Process Improvement Sequence - 2

Use coarse tools Process flowchart Check sheets and histograms Pareto analysis <--- (iterative Fishbone chart ---> steps)

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Process Improvement Sequence - 3

Use fine tools Process control charts Run diagrams Scatter diagrams Failsafing

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Process Improvement Sequence - 4

Determine process changes Implement pilot process improvement Measure and evaluate results Repeat if results unsatisfactory; deploy full

implementation if results satisfactory

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PDCA (or PDSA) Cycle Also known as the Deming wheel, or

Deming/Shewhart cycle or wheel 4 parts to the cycle

Plan - document and analyze Do - implement “improvement” Check (Study) - compare to desired state Act - correct or standardize

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Quality Circles vs. QITs Quality Circles

Limited authority Focus within department Often seen as added work Ongoing

Quality Improvement Teams Greater authority Focus on total process Recognized as important part of job End when process improvement complete

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5W2H Approach What? Subject Why? Purpose Where? Location When? Timing/sequence Who? People involved How? Method How much? Cost/impact

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Six Sigma Quality Latest popular approach to Quality ± 6 standard deviations (6) from the

process mean = 0.0003% defects Represents a goal Certification from ASQ on processes

to support Six Sigma Many consulting and training firms

on how to implement Six Sigma

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Six Sigma at GE “The central idea behind Six Sigma

is that if you can measure how many ‘defects’ you have in a process, you can systematically figure out how to eliminate them and get as close to ‘zero defects’ as possible.”

Making Customers Feel Six Sigma Quality