Importance of Quality
Malcolm Baldrige Quality Award
Created by Congress in 1987
Named after Malcolm Baldrige who served as Secretary of Commerce
from 1981-1987
Award is given annually to recognize US companies that excel in quality
achievement and management
3 Categories: manufacturing, service, small business
http://www.quality.nist.gov/Contacts_Profiles.htm
ISO 9000 Standards
Voluntary standard that is quickly becoming the norm
Series of quality standards defined by the International Organization for
Standardization
Certification to an ISO 9000 standard means that the firm has a quality
management system in place that ensures consistency of output quality
Takes 9 to 18 months to get certified
ISO 9000 does not prescribe particular practices but requires that
businesses implement three-component cycles. Activities affecting quality
must be:
Planned
Controlled
Documented
Note: ISO 14000 series - An environmental management standard which
focuses on pollution prevention and ecological impact
Seven Concepts of TQM
1. Continuous Improvement
Philosophy: Continuously improve the quality of your product or service.
Involves all operations and work centers including suppliers and customers
2. Six Sigma
Originally developed by Motorola
Refers to an extremely high measure of process capability
A Six Sigma capable process will return no more than 3.4 defects per
million operations (DPMO)
Utilizes a highly structured approach to process improvement
Requires the commitment of top management
Utilizes corporate sponsors (Champions)
Provides extensive training to employees
Sets stretch goals
3. Employee Empowerment
Getting employees involved in product and process improvements
85% of quality problems are due to process and material
Techniques
Build communication networks that include employees
Develop open, supportive supervisors
Move responsibility to employees
Build a high-morale organization
Create formal team structures
Quality Circles
Group of employees who meet regularly to solve problems
Trained in planning, problem solving, and statistical methods
Often led by a facilitator
Very effective when done properly
4. Benchmarking
The basic premise behind benchmarking is that to deliver quality, you
need to compare your business against the “best in class” business and
then make changes to your operation so that quality is enhanced.
Benchmarking is the process of determining who is the very best, who sets
the standard, and what that standard is.
5. Just-in-time (JIT)
‘Pull’ system of production scheduling including supply management
Production only when signaled
Allows reduced inventory levels
Inventory costs money and hides process and material problems
Encourages improved process and product quality
6. Taguchi Concepts (aka Robust Design) and others
Taguschi
Pioneered by Dr. Genichi Taguchi
Basic fundamental thinking behind the Robust Design method is to
develop products that hold up to adverse conditions (i.e., telephones
are designed to be dropped because this commonly happens)
If we want to apply this quality principle to service, we should plan for
the worst when designing our service. When the adverse condition
occurs, we can maintain the quality in our service.
Example: if we are going to build a grocery store (typically these
stores depend on a high volume of sales to make money), then the
facility should be designed for heavy traffic. Shelves should be sturdy,
flooring should facilitate the movement of wagons, the layout should
promote quick movement through the facility, and shelves should be
restocked quickly. To insure quality, we look at the worst case
scenario (i.e., a pending hurricane) and plan for it so that quality is
maintained during these times.
Poka-Yoke (pronounced POH-kah YOH-kay)
Also know as failsafing or mistake-proofing
Poka-yoke is Japanese for mistake-proofing
This approach was developed by Shigeo Shingo, an industrial engineer
at Toyota
A poka-yoke device is any mechanism that either prevents a mistake
from being made or makes the mistake obvious at a glance.
He observed that errors occurred, not because employees were
incompetent, but because of interruptions in routine or lapses of
attention.
If we want to apply this quality principle to service, we need to look at
where errors occur in service delivery and develop methods that will
ensure that these errors do not occur.
Example: The french fry scoop at McDonalds measures a consistent
serving of potatoes. If the scoop was not used, french fry orders would
all look different. Some would be half-full (lead to disgruntled and
hungry customers) and some would be bulging over the top (stray fries
would fall on the floor and change the aesthetics of cleanliness).
Quality Function Deployment (QFD)
Developed in Japan and used at Toyota
Underlying idea is that customer input is important in product design
The process results in a comprehensive matrix called the “house of
quality” used to document information, perceptions, and decision.
Quality Function Deployment (QFD) uses a set of powerful product
development tools originally designed to transfer the concepts of
quality control from the manufacturing process into the new product
development process.
To apply this idea to service, we would seek customer input before
establishing a new service.
Example: Market surveys
7. Knowledge of TQM tools
Deming’s Plan-Do-Check-Act (PDCA) Cycle
Plan – select and analyze the problem
Histograms
Scatter Plots
Pareto charts
Flowcharts
Cause and effect diagrams
Control charts
Do – implement the solution
Check – check the results of the change
Act – act to standardize the solution for the long-term