Slide 9.

Specifying and Managing Product Quality Definitions of Quality The totality of features and characteristics of a product that bears on the ability to satisfy stated or implied needs.

ISO 8402

CROSBY

Conformity to requirements not goodness.

JURAN

Fitness for use.

Lysons & Farrington, Purchasing and Supply Chain Management, 7th edition, Pearson Education Limited 2005

Slide 9.2

Specifying and Managing Product Quality Garvins Eight Dimensions of Quality

1
2 3

Performance

5
6 7

Durability

Reliability

Features

Serviceability

Aesthetics

Conformance

Perceived quality

Lysons & Farrington, Purchasing and Supply Chain Management, 7th edition, Pearson Education Limited 2005

Slide 9.3

Specifying and Managing Product Quality Quality System and the Quality Loop A quality system is defined as the organisational structure, responsibilities, procedures, processes and resources for implementing quality management. The Quality Loop
Marketing and market research Disposal after use Technical assistance and maintenance Installation and operation Sales and distribution Customer /consumer Producer /supplier Design/specification engineering and product development Procurement Process planning and development Production Inspection, testing and examination Packaging and storage

Lysons & Farrington, Purchasing and Supply Chain Management, 7th edition, Pearson Education Limited 2005

Slide 9.4

Purchasing product innovation, supplier involvement and development Definition of TQM A way of managing an organisation so that every job, every process, is carried out right, first time and every time. TQM Three important principles

1 2 3

A focus on product improvement from the customers viewpoint

A recognition that personnel at all levels share responsibility for product quality Recognition of the importance of a system to provide information to managers about quality processes that enable them to plan, control and evaluate performance

Lysons & Farrington, Purchasing and Supply Chain Management, 7th edition, Pearson Education Limited 2005

Slide 9.5

Specifying and Managing Product Quality

Types of Specifications

Those relating to things Raw materials Components Assemblers Final products Systems Complex structures

Those relating to actions Functions Processes Procedures Services

Lysons & Farrington, Purchasing and Supply Chain Management, 7th edition, Pearson Education Limited 2005

Slide 9.6

Requirement specified may relate to Conditions in which the item or material is to be installed, used, manufactured or stored Characteristics Performance Life Reliability Control of quality checking Packaging and protection Information from the supplier to the user

Lysons & Farrington, Purchasing and Supply Chain Management, 7th edition, Pearson Education Limited 2005

Slide 9.7

Specifying and Managing Product Quality

Purchasing and Standardisation Advantages to the Buyer!

Removal of uncertainty as to what is required

Helps achieve reliability and reduces costs

Eliminating the need to prepare company specifications Saving design time Accurate comparison of quotations Less dependency on specialist suppliers Reduction in error and conflict Facilitation of international sourcing Saving in inventory Reduced investment in spares Reduced cost of material handling
Lysons & Farrington, Purchasing and Supply Chain Management, 7th edition, Pearson Education Limited 2005

Slide 9.8

Specifying and Managing Product Quality Approaches to Quality Assurance

Quality systems including ISO 9000

Design of manufacturing processes

Incoming materials control

New design control

Supplier appraisal

Lysons & Farrington, Purchasing and Supply Chain Management, 7th edition, Pearson Education Limited 2005

Slide 9.9

Specifying and Managing Product Quality

Inspection Activities

Receiving Inspection Materials or components received from outside supplier are inspected for conformance to specifications.

Classification Inspection Inspection to separate parts into categories according to specifications.

Control Inspection Inspection of periodic sample of work-in-progress of an end product to detect and correct deviations.

Audit Inspection Ensuring that procedures and processes are being followed to ensure the validity and reliability of inspection operations

Lysons & Farrington, Purchasing and Supply Chain Management, 7th edition, Pearson Education Limited 2005

Slide 9.10

Specifying and Managing Product Quality Q.F.D The House of Quality

Matrix showing interaction between each engineering characteristic

Engineering characteristics that affect customer requirements

Customer requirements Matrix showing interaction between each engineering characteristic and each customer requirement. Target engineering characteristics Importance of each requirements Customer perceived performance against competitors

Lysons & Farrington, Purchasing and Supply Chain Management, 7th edition, Pearson Education Limited 2005

Slide 9.11

Specifying and Managing Product Quality Cost of Quality Appraisal Costs

Cost of Conformance Appraisal Costs (Cost of assessing the quality achieved)

Laboratory acceptance testing Inspection tests (including Goods Inward) Product quality audits Set up for inspection and test Inspection and test material Product quality audit

Review of test and inspection data Field (on-site) performance testing Internal testing and release Evaluation of field stock and spare parts Data processing inspection and test reports

Lysons & Farrington, Purchasing and Supply Chain Management, 7th edition, Pearson Education Limited 2005

Slide 9.12

Specifying and Managing Product Quality

Miles Definition of Value Analysis

A philosophy implemented by the use of a specific set of techniques, a body of knowledge, and a group of learned skills. It is an organised, creative approach that has for its purpose the efficient identification of unnecessary cost, i.e., cost that provides neither quality nor use nor life, nor appearance nor customer features.

The Value Analysis Checklist

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Does its use contribute value? Is its cost proportionate to its usefulness? Does it need all its features? Is there anything better for the intended use? Can a usable part be made by a lower cost method? Can a standard product be found which will be usable? Is it made on proper tooling considering the quantities used? Are the specified tolerances and finishes really necessary? Do material, reasonable labour, overhead and profit total its cost? Can another dependable supplier provide it for less? Is anyone buying it for less?

Lysons & Farrington, Purchasing and Supply Chain Management, 7th edition, Pearson Education Limited 2005