Lecture 2: Quality Management

Compiled by Ramdziah Md. Nasir

Evolution of quality

Quality management styles

Quality thinkers

Traditional vs modern quality management

Elements of Total Quality Management

Pre-World War II 1945 1990s

Isolated

Economies

Focus on

quantity

Period of

change from

quantity to

quality

Focus on

quality

4

History of Quality Paradigms

Customer-craft quality paradigm:

design and build each product for a particular customer. producer knows the customer directly.

Mass production and inspection quality paradigm:

focus on designing and building products for mass consumption.

larger volumes will reduce costs and increases profits. push products on the customer (limit choices). quality is maintained by inspecting and detecting bad

products.

TQM or Customer Driven Quality paradigm: potential customers determine what to design and build. higher quality will be obtained by preventing problems

How Do Organizations Compete?

Most common competitive measures:

Quality (both real and perceived) Cost Delivery (lead time and accuracy)

Other measures

safety, employee morale, product development (time-to-market, innovative

products)

Contrasting Approaches

Passive / Reactive

Setting acceptable quality levels

Inspecting to measure

compliance

Proactive / Preventive

Design quality in products and processes

Identify sources of variation (processes and materials)

Monitor process performance

In 1970s, U.S. companies noticed dramatic loss of market share to Japanese competitors in many product areas, especially more noticeable in automotive and electronics industries. The reasons is, Japanese products were superior in quality and lower in price. Japanese companies were already using the statistical processes, charts, etc to improve quality and adopt quality management.

On the contrary, in the U.S. this approach on quality was not employed, rather they pushed on quantity. Companies adopt weed out the bad ones, keep the production rolling attitude. Management-employee relationships have been primarily adversarial, stemming from the history of big business exploitation of workers. So much distrust, arguments over contracts can lead to plant shut-down and lost of jobs. Workers were to be blame for poor quality, management has complete disregard for quality responsibility.

According to Deming, only 15% of quality problems is attributed to workers, while 85% is due to the manufacturing process which can only be changed by the management decision.

Changes must be made for U.S. companies to regain their position. A turn-around is possible, but the management must lead the way.

Deming was responsible for the reawakening the U.S. industries to the need for better quality.

Japanese Quality Innovators

Kaoru Ishikawa (post WWII 1980s)

Genichi Taguchi (1960s 1980s)

U.S Quality Innovators

Walter Shewhart (1920-1940s)

W. Edwards Deming

Joseph M. Juran

Philip Crosby (1980s)

Pioneer of modern quality control recognized the need to separate variation into assignable and unassignable causes

Founder of the control chart (X-bar and R chart)

Originator of plan-do-check-act cycle

Perhaps the 1st to integrate statistics, engineering and economics

Defined quality in terms of objective and subjective quality. Objective quality quality of a thing independent of people. Subjective quality quality is relative to how people perceive it (how people value it).

Check

Plan

Do

Action

Studied under Shewhart at Bell Laboratories

Contributions: well known for helping Japanese companies apply Shewharts statistical process control Quality (high quality)

Deming developed his 14 points to help companies realize their potential for better competitive position through continuous improvement.

As quality and productivity improvement was not put on an institutional basis within the organization it was always perceived of as someone else's job.

Attempts to provide a clear roadmap for management so they might come to understand what needs to be done and who is responsible for making it happen.

It would not be possible to put the concept of never ending improvement in place in a way that would have a lasting impact on competitive position, without upper level management involvement and leadership

Improve

Quality

Costs Decrease: (Less rework,

fewer mistakes,

less scrap)

Productivity

Improves

Achieve Greater

Market Share

(higher quality products at less cost)

Stay in

Business

Provide Jobs

and

More Jobs

1. Create constancy in purpose to improve quality

2. Adopt the new philosophy companies must be willing to change

3. Stop depending on mass inspection

4. End the practice of rewarding business on the basis of price tag alone

5. Constantly and forever improve the system of production and service

6. Institute modern training methods on the job

7. Institute modern methods of supervision

8. Drive out fear

9. Break down barriers between staff areas

10. Eliminate numerical goals for the workforce

11. Eliminate work standards and numerical quotas

12. Remove barriers that hinder the hourly workers

13. Institute a rigorous program of education and training

14. Create a structure in the top management that will push every day on the preceding 13 points.

1. Lack of constancy of purpose, failure to plan ahead

2. Emphasis on short-term profits

3. Evaluation of performance, merit rating or annual review

4. Mobility of management

5. Running a company with visible figures alone

6. Excessive medical costs

7. Excessive legal costs

Feigenbaum

Developed the concept of Total Quality Control.

System for managing the entire value-chain connecting supplier to customer.

If you want to find out about your quality, go out and ask your customer.

Quality control staff = Facilitators.

Quality Management advocate, consultant,

and author of Quality is Free

The Four absolutes of quality including: #1- quality is defined by conformance to requirements,

not goodness.

#2 - system for causing quality is prevention not

appraisal.

#3 - performance standard is zero defects, not thats close enough.

#4 - measurement of quality is the price of

nonconformance, not indexes.

1. The definition of quality is conformance to requirements.

Crosby emphasizes the attitude Do it right the first time. Management must insist that there is absolutely no reason for selling faulty products to customers

2. The system of quality is prevention Prevention features corrective changes to

the process, anticipate for errors, think ahead and take preventive measures.

3. Insist zero defects from suppliers. Instill in them, any defect is not acceptable.

Believes mistakes are caused by two factors 1 lack of knowledge, 2 lack of attention. Lack of knowledge can be solve by education and training. Lack of attention requires personal commitment to excellence and attention to details

4. The measure of quality is the price of non-conformance (PONC)

Suggests that the measure of quality is how much is spent to correct quality problems (non-conformance). It is estimated that PONC amounted to 20% for products and 35% for services. Price of conformance (actual cost to produce if zero defects) is only about 3%-4% of the sales price.

Cost of conformance at all quality levels is reduced with increasing prevention (downward shifts of conformance cost curve with quality)

.

Prevention

Cost of

Confo

rma

nce

Quality Low High

Outgoing products/services normally contains deviations from the published, or agreed requirements

The company has an extensive corrective service network to keep customer satisfied

Management does not provide clear performance or definition of standard quality

Management does not know the price of non-conformance

Management denies that it is (the management) the cause of the problem

1. Management must be committed to quality

improvement

2. Form a dedicated quality improvement team to set up

educational activities, creating procedures, actions, etc

3. Measure your progress Quality must be measured thru the input, process and output

4. Keep tract of cost of quality price of non-conformance (PONC) before and after the quality

improvement efforts must be determined

5. Create quality awareness company-wide

6. Corrective action to the root of the problem use SPC to identify problem, their roots and eliminate them.

7. Plan for Zero Defect (ZD Planning) Eliminate possibility for problem to happen

8. Educate the employee everyone should received the same education on quality

9. ZD (Zero Defect) day Give opportunity for management to make its official commitment to

quality in front of everyone.

10. Set the goals Use chart to monitor the progress. 11. Error-cause removal ask people to submit

statements of problems they are aware of and work

on them

12. Recognize good work/effort in the quality

process

13. Create quality councils a forum to bring quality professional together and let them learn from each

other

14. Repetition makes perfection Do it all over again, and again.

Contributions

also well-known for helping improve Japanese quality.

directed most of his work at executives and the field of quality management.

Developed the Juran Triology for managing quality:

Quality planning, quality control, and quality improvement.

Developed concept of true and substitute quality characteristics true characteristics are the customers view

substitute characteristics are the producers view

degree of match between true and substitute ultimately determines customer satisfaction.

Advocate use of the 7 tools (e.g., fish bone diagram)

Advanced the use of quality circles (worker quality teams).

Respect for humanity as a management philosophy - full participation.

Cross-functional management.

Taguchi methods emphasize consistency of performance and reduced

variation

Quality loss function (deviation from target is a loss to society).

Parameter design (robust engineering) which is an application of

Design of Experiments (DOE).

Identify key variables

Reduce variation on the important variables

Open up tolerances on unimportant variables

Attention to quality as a design issue not just a

manufacturing issue.

Concept of robust/parameter design.

By varying parameters through design of experiments to obtain a more

robust/ consistently functioning product rather than by tightening

tolerances or using more expensive materials, quality as measured by

performance in the field can be improved.

Loss increases as the product quality shifts away from the target

quality characteristics

Target Lower

specification

limit

Upper

specification

limit

Loss

Seven Tools in Quality Control

1. Histograms

2. Pareto charts

3. Check sheets

4. Defect concentration diagrams

5. Scatter diagrams

6. Cause and effect diagrams

7. Control charts

Will be detailed in lecture 4

How to use 6

Sigma and

procedures:

DMAIC

compiled by AMIR YAZID ALI 31

Five Steps in Six Sigma

1. Define the project goals and customer requirements

2. Measure the process to assess current performance

3. Analyze the process and determine root causes of variations and defects

4. Improve the process

5. Control implement control over the new or improved process

32

1. Define

The phases are : Provide it with a charter (the problem to solve)

Identify customers served by the process

Develop high-level process map

1. Identify customer needs and requirements

Customer - recipient of product or service of the process to be improved

2. Create high-level process map

Process map - flow graph showing steps and decision points in the process

33

2. Measure- Phases

1. Create data collection plan

Where measurements should occur: Input measures (supplier effectiveness)

Process measures (your efficiency)

Output measures (your effectiveness)

2. Implement the plan (collect the data)

3. Measure the current sigma level of the

process

34

3. Analysis- phases

1. Basic data analysis

Purpose is to present the data in a way that lends itself to making inferences

2. Process analysis Interpreting results of basic data analysis Developing a more detailed picture of the way the process

operates and what is wrong with it

3. Root cause analysis Objective is to identify the significant factors that affect

process performance

35

3.1 Basic Data Analysis

Usually means graphical displays Discrete data: histograms, Pareto charts, pie charts,

defect concentration diagrams

Continuous data: check sheets, scatter diagrams

Additional techniques: analysis of variance, regression analysis, hypothesis testing

36

3.2 Process Analysis

Process maps of details are used here

Typical questions in process analysis:

What are value-adding steps in process? What are non-value-adding steps? Which steps generate defects and errors?

37

3.3 Root Cause Analysis

identify the significant factors that affect process performance y = f(x1, x2, . . ., xi, . . xn)

where y = output variable of interest, and x1, x2, . . ., xi, . . xn are independent variables in the process

Phases are Brainstorm hypotheses on the process relationships and problems

Useful tool: cause-and-effect diagram

Result of brainstorming: list of possible hypotheses

Eliminate unlikely hypotheses

Validate the remaining hypotheses

38

4. Improve- Phases

1. Generate alternative improvements

2. Analyze and prioritize alternative

improvements

3. Implement improvements

39

4.1 Generate Alternative Improvements

Search for improvements and solutions that

will:

Reduce defects

Increase customer satisfaction

Improve quality of product or service

Reduce variation

Increase process efficiency

40

4.2 Analyze and Prioritize

Likely that the list of improvements is too long to implement all of them

Discard those alternatives that are deem impractical

Prioritize the remaining alternatives

Techniques: Process mapping

Failure mode and effect analysis (FMEA)

Pareto priority index

Criteria matrix

41

5. Control

Purpose is to maintain improved performance that was achieved through implementation of

the proposed improvements

Actions in the control step: 1. Develop control plan

2. Transfer responsibility back to original owner

3. Disband Six Sigma team

42

5.1 Develop Control Plan

Document results of the improvement project

Establish standard operating procedure (SOP):

Details of process control relationships

Input, process, and output variables to measure and monitor

Who is responsible for these measurements

Corrective action procedures when something goes wrong

Institutional procedures required

Training requirements

43

Why is the Control Step Necessary?

Human resistance to change

Comfort with previous method

Absence of standard operating procedures

detailing new method

Inadequate process performance monitoring

Lack of attention by supervision

PROTON'S TOUGH ATTITUDE ON QUALITY SHOWING RESULTS

Shah Alam - It's been just five months into PROTON's Quality Enhancement Campaign, but customers are already beginning to benefit from the initiative to introduce a continuous and comprehensive program aimed at improving the quality of Proton products.

Introduced in acknowledgement that quality has been an issue for PROTON, the campaign is one of the measures being taken to transform the national car manufacturer and addresses all key areas including the manufacturing and engineering processes, sales and after-sales service activities, as well as vendors.

The campaign continues to address the importance of quality in all areas to: produce better products, implement more stringent systems and disciplines to abide by the procedures, improve the manufacturing and engineering processes, practice customer-focused service at showrooms and workshops, and extend the practice to vendors and dealers.

"Quality is a thrust that any manufacturer continuously strives to improve upon and it is a challenge which we will have to resolve if PROTON is to make an impact globally," said Managing Director of PROTON Holdings Berhad, Syed Zainal Abidin Syed Mohamed Tahir.

Thank you

for your

kind

attention:0