9-1
Introduction to Quality
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-2
Introduction to Quality
PART FOUR
•Chapter Nine
•Introduction to Quality
•Chapter Ten
QUALITY
•Quality Control
•Chapter Ten Supplement
•Acceptance Sampling
•Chapter Eleven
•TQM and Quality Tools
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-3
Introduction to Quality
Chapter 9
Introduction
to Quality
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-4
Introduction to Quality
Quality Management
• What does the term quality mean?
• Quality is the ability of a product or
service to consistently meet or
exceed customer expectations.
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-5
Introduction to Quality
Dimensions of Quality
• Performance - main characteristics of the
product/service
• Aesthetics - appearance, feel, smell, taste
• Special features - extra characteristics
• Conformance - how well product/service
conforms to customer’s expectations
• Safety - Risk of injury
• Reliability - consistency of performance
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-6
Introduction to Quality
Dimensions of Quality (Cont’d)
• Durability - useful life of the
product/service
• Perceived Quality - indirect evaluation of
quality (e.g. reputation)
• Service after sale - handling of customer
complaints or checking on customer
satisfaction
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-7
Introduction to Quality
Examples of Quality Dimensions
Table 9-1
Dimension
(Product)
Automobile
(Service)
Auto Repair
1. Performance
Everything works, fit &
finish
Ride, handling, grade of
materials used
Interior design, soft touch
All work done, at agreed
price
Friendliness, courtesy,
Competency, quickness
Clean work/waiting area
2. Aesthetics
3. Special features Gauge/control placement Location, call when ready
Convenience
Cellular phone, DVD
Computer diagnostics
High tech
player
4. Safety
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Antilock brakes, airbags
Separate waiting area
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-8
Introduction to Quality
Examples of Quality Dimensions (Cont’d)
Table 9-1
Dimension (Product)
Automobile
(Service)
Auto Repair
5. Reliability
Infrequency of breakdowns
Work done correctly,
ready when promised
6. Durability
Long life, resistance to rust &
corrosion
Work holds up over
time
7. Perceived
quality
Top-rated car
Award-winning service
department
8. Service after Handling of complaints and/or Handling of complaints
sale
requests for information
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-9
Introduction to Quality
Determinants of Quality
Design
Ease of
use
Conformance to
design
McGraw-Hill Ryerson
Service
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-10
Introduction to Quality
The Consequences of Poor Quality
• Loss of business
• Liability
• Productivity
• Costs
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-11
Introduction to Quality
Responsibility for Quality
•
•
•
•
•
•
•
•
Top management
Design
Procurement
Production/operations
Quality assurance
Packaging and shipping
Marketing and sales
Customer service
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-12
Introduction to Quality
Costs of Quality
• Failure Costs - costs incurred by defective
parts/products or faulty services.
• Internal Failure Costs
– Costs incurred to fix problems that are detected
before the product/service is delivered to the
customer.
• External Failure Costs
– All costs incurred to fix problems that are
detected after the product/service is delivered to
the customer.
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-13
Introduction to Quality
Costs of Quality (continued)
• Appraisal Costs
– All product and/or service inspection costs.
• Prevention Costs
– All TQ training, TQ planning, customer
assessment, process control, and quality
improvement costs to prevent defects from
occurring
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-14
Introduction to Quality
Ethics and Quality
• Substandard work
– Defective products
– Substandard service
– Poor designs
– Shoddy workmanship
– Substandard parts and materials
Having knowledge of this and failing to correct
and report it in a timely manner is unethical.
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-15
Introduction to Quality
Key Contributors to Quality Management
Table 9-5
Contributor Known for
Deming
14 points; special & common causes of
variation
Juran
Quality is fitness for use; quality trilogy
Feigenbaum
Quality is a total field; the customer defines
quality
Crosby
Quality is free; zero defects
Ishikawa
Cause-and effect diagrams; quality circles
Taguchi
Taguchi loss function
Quality
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-16
Introduction to Quality
Quality Awards
Baldrige Award
Canada Awards
for Excellence
Deming Prize
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-17
Introduction to Quality
Malcolm Baldrige National Quality Award
• 1.0 Leadership
• 2.0 Strategic Planning
• 3.0 Customer and Market Focus
• 4.0 Information and Analysis
• 5.0 Human Resource Development and
Management
• 6.0 Process Management
• 7.0 Business Results
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-18
Introduction to Quality
The Canada Awards for Excellence
Administered by National Quality Institute (NQI):
1.
2.
3.
4.
5.
6.
7.
Leadership
Planning
Customer Focus
People Focus
Process Management
Supplier/Partner Focus
Overall Business Performance
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-19
Introduction to Quality
The Deming Prize
• Honoring W. Edwards Deming
• Japan’s highly coveted award
• Main focus on statistical quality
control
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-20
Introduction to Quality
Quality Certification
• ISO 9000
• Set of international standards on quality
management and Quality assurance, critical to
international Business
• ISO 9000 series standards, briefly, require firms to
document their quality-control systems at every
step (incoming raw materials, product design, inprocess monitoring and so forth) so that they’ll be
able to identify those areas that are causing
quality problems and correct them.
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-21
Introduction to Quality
The ISO 9000 Series Standards
• ISO 9000 requires companies to
document everything they do that
affects the quality of goods and
services.
– Hierarchical approach to documentation
of the Quality Management System
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-22
Introduction to Quality
ISO 9000 Series
Table 9-7
ISO 9000
Helps companies determine which standard
of ISO 9001, 9002, and 9003 applies
ISO 9001
Outlines guidelines for companies that
engaged in design, development, production,
installation, and servicing of products or
service
Similar to 9001, but excludes companies
engaged in design and development
ISO 9002
ISO 9003
Covers companies engaged in final inspection
and testing
ISO 9004
The guidelines for applying the elements of
the Quality Management System
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-23
Introduction to Quality
ISO 10000 Series
ISO 10011
Quality system auditing guide
ISO 10013
Quality manual development guide
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-24
Introduction to Quality
ISO 9000 Registration Process
• When an organization feels that its
quality system is good enough, it may
ask an accredited registrar or other
third party audit team for preassessment.
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-25
Introduction to Quality
ISO 9000 Registration Process
• The final audit begins with a review of the
company's quality manual, which the
accredited registrar or third party audit
team typically uses as its guide. The
audit team checks to see that the
documented quality system meets the
requirement of ISO 9000 and that the
organization is practicing what is
documented.
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-26
Introduction to Quality
ISO 9000 Registration Process
• When the registrar is satisfied with the
favourable recommendation of the audit
team, it grants registration and issues a
registration document to the company.
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-27
Introduction to Quality
ISO 14000
• ISO 14000 - A set of international
standards for assessing a company’s
environmental performance
• Standards in three major areas
– Management systems
– Operations
– Environmental systems
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
9-28
Introduction to Quality
ISO 14000
• Management systems
– Systems development and integration of
environmental responsibilities into business
planning
• Operations
– Consumption of natural resources and
energy
• Environmental systems
– Measuring, assessing and managing
emissions, effluents, and other waste
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.