Introduction to Quality
Total Quality Management
9-1

 What does the term quality mean?
 Quality is the ability of a product or service to consistently meet or exceed customer expectations.
 degree of excellence of a thing.
 Totality of features and characteristics that satisfy needs
9-2

Evolution of Quality Management
 Fredrick Taylor (Scientific Management)
 1924 - Statistical process control charts
 1930 - Tables for acceptance sampling
 1940’s - Statistical sampling techniques
 1950’s - Quality assurance/TQC (
DEMING)
 1960’s - Zero defects
 1970’s - Quality assurance in services
9-3

Quality Assurance vs. Strategic
Approach
 Quality Assurance
 Emphasis on finding and correcting defects before reaching market
 Strategic Approach
 Proactive, focusing on preventing mistakes from occurring
 Greater emphasis on customer satisfaction
9-4

 Performance
 basic operating characteristics of a product; how well a car is handled.
 Features
 “extra” items added to basic features, such as a stereo CD or a leather interior in a car
 Reliability
 probability that a product will operate properly within an expected time frame; that is, a TV will work without repair for about seven years
9-5

 Conformance
 degree to which a product meets pre – established standards
 Durability
 how long product lasts before replacement
 Serviceability
 ease of getting repairs, speed of repairs, courtesy and competence of repair person
9-6

 Aesthetics
 how a product looks, feels, sounds, smells, or tastes
 Safety
 assurance that customer will not suffer injury or harm from a product; an especially important consideration for automobiles
 Perceptions
 subjective perceptions based on brand name, advertising, and the like
9-7

Examples of Quality Dimensions
Dimension
1. Performance
2. Aesthetics
3. Special features
(Product)
Automobile
Everything works, fit & finish Ride, handling, grade of materials used
Interior design, soft touch
Gauge/control placement
Cellular phone, CD player
(Service)
Auto Repair
All work done, at agreed priceFriendliness, courtesy, Competency, quickness
Clean work/waiting area
Location, call when ready
Computer diagnostics
9-8

Examples of Quality Dimensions
(Cont’d)
Dimension (Product) (Service)
Automobile Auto Repair
5. Reliability Infrequency of breakdowns Work done correctly, ready when promised
6. Durability Useful life in miles, resistance Work holds up over to rust & corrosion time
7. Perceived Top-rated car Award-winning service
quality department
8. Serviceability complaints and/or requests for information
Handling of complaints
9-9

 Time and Timeliness
 How long must a customer wait for service, and is it completed on time?
 Is an overnight package delivered overnight?
 Completeness:
 Is everything customer asked for provided?
 Is a mail order from a catalogue company complete when delivered?
9-10

Dimensions of Quality: Service
 Courtesy:
 How are customers treated by employees?
 Are catalogue phone operators nice and are their voices pleasant?
 Consistency
 Is the same level of service provided to each customer each time?
 Is your newspaper delivered on time every morning?
9-11

Dimensions of Quality: Service
 Accessibility and convenience
 How easy is it to obtain service?
 Does a service representative answer you calls quickly?
 Accuracy
 Is the service performed right every time?
 Is your bank or credit card statement correct every month?
9-12

Dimensions of Quality: Service
 Responsiveness
 How well does the company react to unusual situations?
 How well is a telephone operator able to respond to a customer’s questions?
9-13

Challenges with Service Quality
 Customer expectations often change
 Different customers have different expectations
 Each customer contact is a “moment of truth”
 Customer participation can affect perception of quality
 Fail-staffing must be designed into the system
9-14

 Walter Shewart
 In 1920s, developed control charts
 Introduced the term “ quality assurance”
 W. Edwards Deming
 Developed courses during World War II to teach statistical quality-control techniques to engineers and executives of companies that were military suppliers
 After the war, began teaching statistical quality control to
Japanese companies
 Joseph M. Juran
 Followed Deming to Japan in 1954
 Focused on strategic quality planning
9-15

 Armand V. Feigenbaum
 In 1951, introduced concepts of total quality control and continuous quality improvement
 Philip Crosby
 In 1979, emphasized that costs of poor quality far outweigh the cost of preventing poor quality
 In 1984, defined absolutes of quality management — conformance to requirements, prevention, and “zero defects”
 Kaoru Ishikawa
 Promoted use of quality circles
 Developed “fishbone” diagram
 Emphasized importance of internal customer
9-16

 Quality of design
 Intension of designers to include or exclude features in a product or service:
Different car models with different features
 size
 Appearance
 Roominess
 Fuel economy
 Comfort
 Material used
9-17

Determinants of Quality (cont’d)
 Quality of Conformance
 Making sure a product or service is produced according to design:
 if new tires do not conform to specifications, they wobble
 if a hotel room is not clean when a guest checks in, the hotel is not functioning according to specifications of its design
9-18

The Consequences of Poor Quality
 Loss of business
 Liability
 Productivity
 Costs
9-19

 Organizations will benefit in different way:
 Enhance reputation
 Increase market share
 Greater customer loyalty
 Lower liability Cost
 Fewer complains
 Lower production cost
 Higher profits
9-20

 Top management
 Design
 Procurement
 Production/operations
 Quality assurance
 Packaging and shipping
 Marketing and sales
 Customer service
9-21

 Failure Costs - costs incurred by defective parts/products or faulty services.
 Internal Failure Costs
 Costs incurred to fix problems that are detected during the production.
 Defective materials
 Incorrect machine setting
 Faulty equipment
 Carelessness
 Wrong procedure
9-22

 External Failure Costs
 All costs incurred to fix problems that are detected after the product/service is delivered to the customer.
 Warranty work
 Handling of complains
 Replacement
 Liability
9-23

 Appraisal Costs
 Costs of activities designed to ensure quality or uncover defects


Cost of inspector
Testing


Test equipment
Labs
 Field testing
9-24

 Prevention Costs
 Cost of preventing defects form occurring
 Planning and adminstration
 Working with vendors
 Training
 Quality control procedures
9-25

A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.

Continuous Improvement
 Involvement of Everyone
 Customer Satisfaction
9-26

1. Continual improvement ( never ending)
2. Competitive benchmarking
3. Employee empowerment
4. Team approach
5. Decisions based on facts
6. Knowledge of tools
7. Supplier quality
8. Champion
9. Quality at the source
10. Suppliers
9-27

The philosophy of making each worker responsible for the quality of his or her work.
9-28

 Flowcharts
 Check sheets
 Histograms
 Pareto Charts
 Scatter diagrams
 Control charts
 Cause-and-effect diagrams
 Run charts
9-29

Flow Chart : displays the steps in a process showing order and relationships helps in understanding of that process and identifies potential weaknesses i.e.
poor performance
Cause and Effect
Also know as fishbone or Ishikawa
9-30

Pareto Chart a form of bar-chart which displays the relative importance of problems or conditions by ordering frequency and showing the cumulative effect
Histogram displaying variation in a process trying to explain the cause of it
Note: Box Whisker Plots would be a useful addition to this
Scatter Graph looks for relationships between factors and displays their strength
9-31

Clustering
Reduces complexity or size of data set by grouping ideas under headingsUseful for qualitative data from questionnaires
Filtering ideas
Reduces ideas by asking questions e.g. Is the idea feasible? Affordable? Is it within our control? Would it improve the situation?
9-32

COMPONENTS REPLACED BY LAB
TIME PERIOD: 22 Feb to 27 Feb 2002
REPAIR TECHNICIAN: Bob
TV SET MODEL 1013
Integrated Circuits
Capacitors
Resistors
Transformers
Commands
CRT |
||||
|||| |||| |||| |||| |||| ||
||
||||
9-33

Figure 9.12
Human Machines Measurement
Faulty testing equipment
Poor supervision Out of adjustment
Tooling problems Incorrect specifications
Improper methods
Lack of concentration
Inadequate training
Old / worn
Quality
Problem Inaccurate temperature control
Dust and Dirt
Defective from vendor
Not to specifications
Materialhandling problems
Poor process design
Ineffective quality management
Deficiencies in product design
Process Environment Materials
9-34

 Brainstorming
 Quality circles
 Interviewing
 Benchmarking
9-35