IM443 – Quality Engineering
Introduction and Course Overview
Company Profile: Arnold Palmer Hospital
 Since 1989, the Arnold Palmer Hospital, named after its
famous golfing benefactor, has touched the lives of more than
7 million children and women and their families.
 Its patients come not only from its Orlando location but from
all 50 states and around the world.
 Over 13,000 babies are delivered every year at Arnold Palmer,
and its huge neonatal intensive care unit boasts one of the
highest survival rates in the U.S.
IM443 – Quality
Engineering
Introduction and Course Overview
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
Company Profile: Arnold Palmer Hospital
Quality Management at Arnold Palmer Hospital
 Every hospital professes quality health care, but at Arnold
Palmer quality practices are more like the Ritz-Carlton
practices in the hotel industry.
 The hospital typically scores in the top 10% of national
benchmark studies in terms of patient satisfaction.
 Continuous improvement
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 The hospital constantly seeks new ways to lower infection rates,
readmission rates, deaths, costs, and hospital stay times.
 Employee empowerment
 When employees see a problem, they are trained to take care of it.
 Just like at the Ritz, staff are empowered to give gifts to patients displeased
with some aspect of service.
 Benchmarking
 The hospital belongs to a 2,000 member organization that monitors
standards in many areas and provides monthly feedback to the hospital.
 Just-in-time
 Supplies are delivered to Arnold Palmer on a JIT basis.
 This keeps inventory costs low and keeps quality problems from hiding.
 Tools such as Pareto charts and flowcharts
 These tools monitor processes and help the staff graphically spot problem
areas and suggest ways they can be improved.
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
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Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
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Company Profile: Arnold Palmer Hospital
Quality and Strategy
 From their first day of orientation, employees from janitors to
nurses learn that the patient comes first.
 Staff standing in hallways will never be heard discussing their
personal lives or commenting on confidential issues of health
care.
 This culture of quality at Arnold Palmer Hospital makes a
hospital visit, often traumatic to children and their parents, a
warmer and more comforting experience.
 Managing quality helps build successful strategies of
differentiation, low cost, and response.
 Improvements in quality help firms increase sales and reduce
costs, both of which can increase profitability.
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
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Copyright © 2014, Prof. Khaled S. El-Kilany, Ph.D.
Department of Industrial and Management Engineering
 Increases in sales often occur as firms speed response, lower selling
prices as a result of economies of scale, and improve their reputation
for quality products.
 Improved quality allows costs to drop as firms increase productivity
and lower rework, scrap, and warranty costs.
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
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IM443 – Quality Engineering
Introduction and Course Overview
Quality and Strategy
The Flow of Activities
 Quality, or the lack of quality, affects the entire organization
from supplier to customer and from product design to
maintenance.
 Perhaps more importantly, building an organization that can
achieve quality is a demanding task.
 A successful quality strategy begins with an organizational
environment that fosters quality, followed by an understanding
of the principles of quality, and then an effort to engage
employees in the necessary activities to implement quality.
 When these things are done well, the organization typically
satisfies its customers and obtains a competitive advantage.
Organizational Practices
• Leadership, Mission statement, Effective operating procedures, Staff
support, Training
• Yields: What is important and what is to be accomplished
Quality Principles
• Customer focus, Continuous improvement, Benchmarking, Just-in-time,
Tools of TQM
• Yields: How to do what is important and to be accomplished
Employee Fulfilment
• Empowerment, Organizational commitment
• Yields: Employee attitudes that can accomplish what is important
Customer Satisfaction
• Winning orders, Repeat customers
• Yields: An effective organization with a competitive advantage
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
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Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
Different Views
Implications of Quality
 User-based: better performance, more features
 Company reputation
 Quality “lies in the eyes of the beholder”.
 Higher quality means better performance, nicer features.
 Characteristics favored by the user should be identified.
 Product liability
 Courts increasingly hold organizations that design, produce, or distribute
faulty products or services liable for damages or injuries resulting from
their use.
 Impure foods that cause illness, shirts that burn, tires that fall apart, can all
lead to huge legal expenses, large settlements or losses, and terrible
publicity.
 This approach views quality as a precise and measurable
variable.
 Identified characteristics are translated into specific product
attributes.
 Manufacturing-based: conformance to standards,
making it right the first time
 Global implications
 For both a company and a country to compete effectively in the global
economy, products must meet global quality, design, and price
expectations.
 Inferior products harm a firm’s profitability and a nation’s balance of
payments.
 Production managers are more concerned with
manufacturing-based quality
 Manufacturing processes are organized to ensure that
products are made precisely to specifications.
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 Perception of new products
 Employment practices
 Supplier relations
 Product-based: specific and measurable attributes of the
product
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
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Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
Awards for Promoting Quality
Leaders in Quality
 Malcolm Baldrige National Quality Award
 W. Edwards Deming
 Established in 1988 by the U.S. government
 Designed to promote TQM practices
 The Deming Prize
 Japanese award named after the American Dr. W. Edwards Deming
 The Dubai Quality Award
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 Deming insisted management accept responsibility for building good
systems. The employee cannot produce products that on average
exceed the quality of what the process is capable of producing. His 14
points for implementing quality improvement are presented later in
this course.
 Joseph M. Juran
 Given to organizations that have demonstrated commitment to best
practice in their respective industries.
 The award program was introduced in 1994 and is administered by the
department of economic development that belongs to the Government
of Dubai.
 A pioneer in teaching the Japanese how to improve quality, Juran
believed strongly in top-management commitment, support, and
involvement in the quality effort. He was also a believer in teams that
continually seek to raise quality standards.
 Juran varies from Deming somewhat in focusing on the customer and
defining quality as fitness for use, not necessarily the written
specifications.
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
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Copyright © 2014, Prof. Khaled S. El-Kilany, Ph.D.
Department of Industrial and Management Engineering
IM443 – Quality Engineering
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IM443 – Quality Engineering
Introduction and Course Overview
Leaders in Quality (Cont.)
Costs of Quality (COQ)
 Amarnd Feigenbaum
 The cost of doing things wrong—that is, the price of
nonconformance.
 Four major categories of costs are associated with quality:
 His 1961 book Total Quality Control laid out 40 steps to quality
improvement processes. He viewed quality not as a set of tools but as a
total field that integrated the processes of a company. His work in how
people learn from each other’s successes led to the field of crossfunctional teamwork.
 Philip B. Crosby
 Training, quality improvement programs…
 Appraisal costs - evaluating products, parts, and services
 Testing, labs, inspectors…
 Quality Is Free was Crosby’s attention-getting book published in 1979.
Crosby believed that in the traditional trade-off between the cost of
improving quality and the cost of poor quality, the cost of poor quality
is understated. The cost of poor quality should include all of the things
that are involved in not doing the job right the first time. Crosby coined
the term zero defects and stated, “There is absolutely no reason for
having errors or defects in any product or service.”
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
 Prevention costs - reducing the potential for defects
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 Internal failure - producing defective parts or service before delivery
 Rework, scrap, downtime…
 External costs - defects discovered after delivery
 Returned goods, liabilities, lost goodwill, costs to society…
 When GE had to recall 3.1 million dishwashers (because of a defective
switch), the cost of repairs exceeded the value of all the machines.
 This leads to the belief by many experts that the cost of
poor quality is consistently underestimated.
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
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The Very High Cost of Quality at Mercedes
The Very High Cost of Quality at Mercedes
 In 2001 Mercedes made the difficult decision… squeeze costs
to pump out better corporate profits and demand lower prices
from suppliers… the result: suppliers cut corners on quality.
 In 2004, the company suffered a series of problems with brake
control systems; 680,000 cars were recalled.
 Then in 2005, Mercedes announced the biggest recall in its
history; 1.3 million cars with faulty fuel pumps made by
supplier Robert Bosch.
 Software problems and interfaces that failed to let complex
electronics systems talk to each other were to blame for many
other defects.
 All totalled, Mercedes spent $600 million in one year to cover
warranty costs.
 The cost of the quality also lead to losses in sales as well.
Market shares in the U.S. and Europe are down.
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
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Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
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Ethics and Quality Management
Evolution of Quality
 The development of poor-quality products, because of
inadequate design and production processes, results not only
in higher production costs but also leads to injuries, and
increased government regulation.
 If a firm believes that it has introduced a questionable
product, ethical conduct must dictate the responsible action.
 A manufacturer must accept responsibility for any poor-quality
product released to the public.
 In 1798, Eli Whitney began designing and manufacturing
muskets with interchangeable parts.
 Firing mechanisms, barrels, or other parts could be used on
any musket of the same design.
 If the parts were not made to specification, during assembly, a
randomly selected part may or may not fit together easily with
its mating part.
 By making parts interchangeable, Eli Whitney created the need
for quality control.
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
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Copyright © 2014, Prof. Khaled S. El-Kilany, Ph.D.
Department of Industrial and Management Engineering
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
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IM443 – Quality Engineering
Introduction and Course Overview
Inspection
Quality Control
 Inspection refers to those activities designed to detect or find
non-conformances existing in already completed products or
services.
 Inspection involves the measuring, examining, testing, or
gauging of one or more characteristics of a product or service.
 Inspection results are then compared with established
standards to determine whether the product or service
conforms.
 Inspection should be during the manufacturing or assembly of
a part and not after it has been completed.
 Quality control (QC) refers to the use of specifications and
inspection of completed parts, subassemblies, and products to
design, produce, review, sustain, and improve the quality of a
product or service.
 Quality control goes beyond inspection by
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
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1.
2.
3.
4.
Establishing standards for the product or service, based on customer
needs, requirements, and expectations.
Ensuring conformance to these standards.
Taking action if there is a lack of conformance to the standards.
Implementing plans to prevent future non-conformance.
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
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Statistical Quality Control
Statistical Process Control
 Statistics is now added to the four quality control activities to
the results of parts inspection.
 In the 1920s, statistical control charts were developed by
Walter A. Shewhart of Bell Telephone Laboratories to monitor
and control product variables.
 H. F. Dodge and H. G. Romig, also of Bell Telephone
Laboratories, developed acceptance sampling plans based on
statistics as a substitute for 100 percent inspection.
 The use of statistical methods for production monitoring and
parts inspection became known as statistical quality control
(SQC), wherein statistical data are collected, analyzed, and
interpreted to solve problems.
 Over time, companies came to realize that there was a need to
be proactive when dealing with problems.
 Thus, rather than using statistical quality control to detect
poor quality it should be used to prevent poor quality.
 Prevention of defects by applying statistical methods to control
the process is known as Statistical Process Control (SPC).
 The most significant difference between prevention and
inspection is that with prevention, the process—rather than
solely the product—is monitored, controlled, and adjusted to
ensure correct performance.
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
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Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
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Total Quality Management
Continuous Improvement
 As the use of statistical process control grew in the 1980s,
industry saw the need to monitor and improve the entire
system of providing a quality product or service.
 Total quality management (TQM) is a management approach
that places emphasis on continuous process and system
improvement as a means of achieving customer satisfaction to
ensure long-term company success.
 Total quality management
 The continuous improvement (CI) philosophy focuses on
improving processes to enable companies to give customers
what they want the first time, every time.
 This customer-focused, process improvement approach to
doing business results in increased satisfaction for both
customers and employees.
 Continuous improvement efforts are characterized by their
emphasis on determining the best method of operation for a
process or system.
 The keywords to note are continuous and process.
 Focuses on process improvement
 Utilizes the strengths and expertise of all the employees of a company
 Utilizes statistical problem-solving and charting methods of statistical
process control.
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
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Copyright © 2014, Prof. Khaled S. El-Kilany, Ph.D.
Department of Industrial and Management Engineering
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
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IM443 – Quality Engineering
Introduction and Course Overview
Continuous Improvement
Evolution of Quality
 To move from a company focused on simply inspecting quality
into its products to a company that is proactive in meeting or
exceeding its customers needs and requirements,
organizations adopt particular standards or methodologies.
 ISO 9000 is an example of these standards.
 Six sigma is also an example of these methodologies.
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
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Course Aim and Objectives
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
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IM443 – Quality Engineering
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Tentative Course Contents
 Course Aim
 Providing a comprehensive guide for students and to develop a broad
understanding of Quality Management and the recent developments in
the field: Improvement Approaches, Six Sigma, and new challenges in
Quality Management; the latest information on the ISO 9000 series of
quality management system series standards; combined with up-todate tools, techniques and quality systems..
 Course Objectives
 To provide insight into diverse ways of understanding and applying total
quality.
 To familiarize the student with the broad array of tools, techniques and
philosophies regarding quality management.
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
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ABET Student Outcomes (SOs)
NAQAA Intended Learning Outcomes (ILOs)
Concepts and theories of mathematics and sciences,
appropriate to the discipline
Assess and evaluate the characteristics and performance
b.5
of components, systems and processes
Investigate the failure of components, systems, and
b.6
processes
Analyze results of numerical models and assess their
b.11
limitations
Use computational facilities and techniques, measuring
c.5 instruments, workshops and laboratory equipment to
design experiments, collect, analyze and interpret results
Use appropriate computer-based support tools for
c.14
problem-solving and analysis of results
a.1
1
• An ability to identify, formulate, and solve complex
engineering problems by applying principles of
engineering, science, and mathematics
3
• An ability to communicate effectively with a range of audiences
4
• An ability to recognize ethical and professional responsibilities in
engineering situations and make informed judgments, which
must consider the impact of engineering solutions in global,
economic, environmental, and societal contexts
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
d.3 Communicate effectively
IM443 – Quality Engineering
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Copyright © 2014, Prof. Khaled S. El-Kilany, Ph.D.
Department of Industrial and Management Engineering
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
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IM443 – Quality Engineering
Introduction and Course Overview
Grades Distribution





Regulations!
20% 7th Week Exam.
15% 12th Week Exam.
15% Quizzes and Assignments.
10% Continuous assessment during semester.
40% Final Exam.
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
 All students are expected to attend classes regularly and
promptly. Students who are absent from classes or tutorial
periods more than 20% of the time (3 times absence) will face
forced withdrawal.
 Any student who does not take a scheduled quiz or exam will
receive a grade of zero for the examination missed.
 No makeup is allowed under any circumstances.
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Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
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Other Information
 Teaching Assistant: Eng. Farah Ayman
 Course material will be available on moodle to all students,
including handouts and sheets.
 Textbook
 Dale H. Besterfield; “Quality Improvement”. 9th Edition, Pearson, 2014.
 References
 Summers, D. C.; “Quality Management”. 2nd Edition, Prentice Hall,
2009.
 Goetsch, D. L. and Davis, S. B.; “Quality Management”. 5th Edition,
Prentice Hall, 2006.
 Foster, S. T.; “Managing Quality: Integrating the Supply Chain”. 3rd Ed.,
Prentice Hall, 2007.
 Dale, B. G., van der Wiele, T., and van Iwaarden, J.; “Managing Quality”,
5th Ed., Wiley, 2007.
Prof. Khaled S. El-Kilany, PhD
Department of Industrial and Management Engineering
IM443 – Quality Engineering
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Copyright © 2014, Prof. Khaled S. El-Kilany, Ph.D.
Department of Industrial and Management Engineering
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