Opermgt 345

Introduction To Production and Operations

Management

Introduction to Quality and TQM

Chapter 7

Shannon Spring 2001

 What is Quality?

➤ The concept of quality is subjective and difficult to

define
➤ Certain aspects of quality can be identified
➤ Ultimately, the judgement of quality rests with the
customer
 Dimensions Of Product Quality

➤ Performance
➤ basic operating characteristics
➤ Features
➤ “extra” items added to basic features
➤ Reliability
➤ probability product will operate over time
 Dimensions Of Product Quality

➤ Conformance
➤ meeting pre-established standards
➤ Durability
➤ life span before replacement
➤ Serviceability
➤ ease of getting repairs, speed & competence of repairs
 Dimensions Of Product Quality

➤ Aesthetics
➤ look, feel, sound, smell or taste
➤ Safety
➤ freedom from injury or harm
➤ Other perceptions
➤ subjective perceptions based on brand name, advertising, etc
Is TQM Dead?
 Process Improvement and Quality
Management
There are many definitions:

▲ A journey to excellence in which everyone in the

organization is focused on continuous process
improvement directed toward increased customer
satisfaction.

▲ Journey
▲ Everyone
▲ Continuous Process Improvement
▲ Increased Customer Satisfaction
 The TQM Unifying Principles

▲ Customer-First Orientation
▲ Top Management Leadership
▲ Continuous Process Improvement
▲ Respect for Employees
▲ Reduction in Process and Product Variation
▲ On-going Education and Training
▲ Statistical Thinking and Emphasis on Data
▲ Emphasis on Prevention Rather Than Detection
▲ Customer-Supplier Partnerships
 Leadership for TQM

▲ Leaders Must:

▲ Become Aware

▲ Become Committed

▲ Truly Understand

▲ Champion the Process

 Is there a Recipe for TQM?

➤ TQM has evolved over many years, and incorporates

the thinking of many people
➤ There is no single recipe or standard, just guiding
principles
 Quality Philosophers

➤ Walter Shewhart
➤ W. Edwards Deming
➤ Joseph Juran
➤ Philip Crosby
➤ Armand Feigenbaum
➤ Kaoru Ishikawa
➤ Genichi Taguchi
 Deming’s 14 Points

1. Create constancy of purpose

2. Adopt philosophy of prevention
3. Cease mass inspection
4. Select a few suppliers based on quality
5. Constantly improve system and workers
6. Institute worker training
 Deming’s 14 Points (continued)

7. Instill leadership among supervisors

8. Eliminate fear among employees
9. Eliminate barriers between departments
10. Eliminate slogans
11. Remove numerical quotas
12. Enhance worker pride
13. Institute vigorous training & education
programs
14. Implement these 13 points
 Traditional United States
Perspective

Top Mgmt Innovation

Middle Mgmt Maintenance

Supervisors

Operations

Time Spent
Source: Kaizen, by Masaaki Imai, McGraw-Hill Book Company, 1986
 Japanese Kaizen Model

Top Mgmt Innovation

Middle Mgmt Kaizen

Supervisors

Operations Maintenance

Time Spent
Source: Kaizen, by Masaaki Imai, McGraw-Hill Book Company, 1986
 The Quality Gap Concept

Word of Personal Past External

Quality Dimensions Mouth Needs Experience Communications

Tangibles
Reliability
Responsiveness Expected
Competence Quality
Courtesy The Quality
Credibility Gap
Security
Access Perceived
Communication Quality
Understanding
the Customer
 Your Quality Experiences

Examples of Poor Quality

Examples of High Quality

 Quality Implementation
Strategies

Six-Sigma Program
Cost of Quality
Benchmarking
Malcolm Baldrige Assessment
Many Others …...
 Six-Sigma Program

Pioneered By Motorola and GE

GE Slide Show:
http:/www.cimplicityhmi.com/croton/ppt/sigma/sld001.htm
 Quality Function Deployment
House of Quality
Text Book Publishing Example

Step 1 ~ Voice of Customer

“WHATS”

Covers subject matter

Meets instructional needs

Good Topical
Coverage
Up-to-Date

Appropriate Level Real-world applications

Exercises Sufficient Quantity

Range of difficulty

Cost Low cost

Clear Easy to read

Presentation Highlights important
Enhances Student

material
ability to learn

Examples illustrate theory

Free No content omissions

from Errors
No typographical errors
 Quality Function Deployment
House of Quality

Amount of mathematics
Research literature coverage
Very strong relationship

Popular literature coverage

Use of figures and tables

Strong relationship

Correctness of grammar
# of discussion exercises
# of numerical exercises
Step 2 ~ Technical Requirements

“Boxed” Examples
Weak relationship

“HOWS”

Subsections
Color

Size
Covers subject matter
Meets instructional needs

Good Topical
Coverage
Up-to-Date

Appropriate Level Real-world applications

Exercises Sufficient Quantity

Range of difficulty

Cost Low cost

Clear Easy to read

Presentation Highlights important
Enhances Student

material
ability to learn

Examples illustrate theory

Free No content omissions
from Errors
No typographical errors
 Quality Function Deployment
House of Quality

Use of figures and tables

Correctness of grammar
Amount of mathematics
Research literature coverage

# of discussion exercises
Popular literature coverage
Very strong relationship

Strong relationship

“Boxed” Examples
# of numerical exercises
Weak relationship
Step 3 ~ Relationship Matrix

Subsections
Color

Size
Covers subject matter
Meets instructional needs

Good Topical
Coverage
Up-to-Date

Appropriate Level Real-world applications

Exercises Sufficient Quantity

Range of difficulty

Cost Low cost

Clear Easy to read

Presentation Highlights important
Enhances Student

material
ability to learn

Examples illustrate theory

Free No content omissions

from Errors
No typographical errors
 Quality Function Deployment
House of Quality

Use of figures and tables

Correctness of grammar
Amount of mathematics
Research literature coverage

# of discussion exercises
Popular literature coverage
Very strong relationship

“Boxed” Examples
Strong relationship

# of numerical exercises
Step 4 ~ Competitive Evaluation Weak relationship

Subsections
Competitive Sellin
Importance evaluation g

Color
points

Size
1 2 3 4 5 1 2 3 4 5
Covers subject matter
Meets instructional needs

Good Topical A B
Coverage
Up-to-Date B A
Appropriate Level Real-world applications A B *

Exercises Sufficient Quantity B A

Range of difficulty A B
Cost Low cost A
*
Easy to read A
B
Clear
Presentation Highlights important B
A B
Enhances Student

material
ability to learn

Examples illustrate theory B A

Free No content omissions A
from Errors B
No typographical errors B
A
 Quality Function Deployment
House of Quality

Very strong relationship

Research literature coverage

Popular literature coverage

Use of figures and tables

Correctness of grammar
Step 5 ~ Completed House Strong relationship

# of discussion exercises
# of numerical exercises
Amount of mathematics
of

“Boxed” Examples
Weak relationship

Quality

Subsections
Competitive Selling
importance evaluation points

Color

Size
1 2 3 4 5 1 2 3 4 5
Covers subject matter
Meets instructional needs

Good Topical A B
Coverage
Up-to-Date B A
Appropriate Level Real-world applications A B *
Exercises Sufficient Quantity B A
Range of difficulty A B
Low cost A
Cost *
B
Easy to read A
Clear B
Presentation Highlights important
Enhances Student

material A B
ability to learn

Examples illustrate theory B A

Free No content omissions A
from Errors B
No typographical errors B A
Competitive evaluation A 3 4 3 4 5 3 3 2 4 5 4
B 5 2 3 3 4 3 4 4 2 5 4
Targets 4 5 2 4 4 5 4 5 5 5 3
Deployment * * * * * *
 The Cost of Quality: Sources of
Costs
◆ Prevention
 Preventing Defects from Happening
◆ Appraisal
 Evaluating Materials and Performance
◆ Internal Failures
 Defects that are Discovered In-House
External Failures
 Defects Discovered by the Customer
◆ Quality Planning
Training
◆
◆ Verification of Design
◆ Plant and Equipment Maintenance
◆ Qualifying Suppliers
◆ Incoming materials Inspection
◆ In-process Inspection
◆ Final End-item Inspection
◆ Maintenance of test Equipment
◆ Training
◆ Calibration
◆ Scrap (waste)
Re-work
◆
◆ Time spent analyzing failures
◆ Tests and re-tests
◆ Operations downtime
◆ Internal Customer Complaints
◆ Liability
◆ Customer Complaints
◆ Warranty Costs and Field Re-Work
◆ Damaged Image
 The Cost of Quality
Distribution of the Costs

Prevention
(10.0%)
Internal and External

failures

(25.0%)
(65.0%) Evaluation

Reduce Quality Costs by Increasing Prevention Efforts

 “Quality is Free”

➤ For the average company, the cost of quality is about

25% of total sales
➤ The cost of prevention is a fraction of the cost of fixing
mistakes after they are made
➤ Investments in prevention can drastically reduce the
total cost of quality
 Benchmarking

1. Identify those processes needing improvement.

2. Identify a firm that is the world leader in performing

the process (Library & WWW).

3. Contact the managers of that company and make a

personal visit to interview managers and workers.

4. Analyze data

20
The Process Model
 Sources of Problems in a Process

▲ Inadequate Knowledge of How the Process

Actually Works
▲ Inadequate Knowledge of How the Process Should
Work
▲ Errors in Executing the Process Functions
▲ Existing Practices that Fail to Take Preventive
Measures
▲ Existence of Non-value Adding Steps in the Process
▲ Variation in Inputs and Outputs
 The Problem Solving Process
Issue
Surfaces
The
Tools of
Organize
Quality
Team

Define
the Problem

Identify & Identify

Test Track &
Analyze Solutions &
Solutions Evaluate
Causes Options
 The Deming Wheel
(or P-D-C-A Cycle)

1. Plan
Identify problem
Develop plan for
improvement
4. Act
2. Do
Institutionalize
Implement plan
improvement
on test basis
Continue cycle

3. Study / Check
Is the plan working
 A Process Improvement Model-
CA-PDCA

CHECK ANALYZE PLAN DO

Chance For Create

Customer Form Check Process Implement
Action
Satisfaction Team Situation Analysis Plans
Plans

Verify
CHECK Results

Continuous Improvement ACT

Make
Routine
 Employees & Quality Improvement

➤ Quality circles
➤ Employee suggestions
➤ Process improvement teams
➤ Self-managed work teams
 The Quality Circle Process

Organization
8-10 members
Same area Training
Presentation
Moderator Group processes
Implementation
Data collection
Monitoring
Problem analysis

Problem ID
Solution List alternatives
Problem analysis
Problem results Consensus
Cause & effect
Brainstorming
Data collection &
analysis
 The Quality Tools

Basic Tools: The New Tools:

Brainstorming Affinity Diagrams
Flowcharting Interrelationship Digarphs
Cause and Effect Tree Diagrams
Diagrams Prioritization Matrices
Pareto Charts Matrix Diagram
Histograms Process Decision Program
Data Checks Sheets Charts
Process Control Charts Activity Network Diagram
Scatter Diagrams
A Flowchart
 Pareto Analysis

80% of the Frequency

problems may
be attributed
to 20% of the
causes.
Design Assy. Purch. Other
Instruct. Training

12
 Cause-and -Effect (Fishbone) Diagram
Measurement Human Machines

Faulty testing equipment Poor supervision Out of adjustment

Incorrect specifications Lack of concentration Tooling problems

Improper methods Inadequate training Old/worn

Quality
Inaccurate Problem
temperature
control Defective from vendor Poor process design
Ineffective quality
Not to specifications management
Dust and Dirt Material- Deficiencies
handling problems in product design

Environment Materials Process

 Run Chart

0.58
0.56
0.54
Diameter

0.52
0.5
0.48
0.46
0.44
1 2 3 4 5 6 7 8 9 10 11 12
Time (Hours)

13
 Histogram
Frequency

Data Ranges

14
 Scatter Diagram

12
10
Defects

8
6
4
2
0
0 10 20 30
Hours of Training

15
 Checksheet
Monday
Billing Errors

Wrong Account

Wrong Amount

A/R Errors

Wrong Account

Wrong Amount

16
 Control Charts

1020
UCL
1010
1000
990
980
LCL

970
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

18
 ISO 9000
➤ Series of standards agreed upon by the International
Organization for Standardization (ISO)
➤ Adopted in 1987
➤ More than 100 countries
➤ A prerequisite for global competition?
➤ ISO 9000 directs you to "document what you do and then do
as you documented."

Web Site: http://www.iso.ch/welcome.html

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