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What is QUALITY?Different Definitions of Quality

Fred Smith (CEO of Federal Express-performance to the standard expected by the customer

The General Services Administration (GSA)-meeting the customers needs the first time and every time

Boeing -providing our customers with products and services that consistently meet their needs and expectations U.S. Department of Defense (DOD)

-doing the right thing the first time, always striving for improvement, and always satisfying customers.

Common Elements on Quality 1. Quality involves meeting or exceeding customer expectations.

2. Quality applies to products, services, people, process and improvement.3. Quality is an ever-changing state

Quality is dynamic state associated with products services, people, processes and environment that meet oe exceeds expectati

The Total quality Approach DefinedDOD defines the total quality management as follows:

TQ consists of continuous improvement activities involving everyone in the organization managers and workers in totally integrated effortperformance at every level. This improved performance is directed toward sa tisfying such cross functional goal as quality, cost, schedule ,mission, need andsuitability. TQ integrates fundamental management techniques existing improvements efforts and technical tools under a disciplined approach focused on

continued process improvement. The activities are ultimately focused on increase customer satisfaction.


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Three Legged Stool of Total Quality

Big Q1. Products2. Services3. People4. Processes5. Environments

Customer Focus

Measures People Process*SPC *Quality is built in *Continual improvement

*Benchmarking *Quality is expected not inspected*Good enough is neverenough

* Quality Tools *Employees are empowered


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Quality Tip

Nicholas Scheele

What It Is?

Total Quality is an approach to doing business that attempts to maximize the competitiveness of an organization on through the continual improvement of thequality of its products, services, people, process and environment.

How it is Achieved?

1. Strategically Based 5. Long term commitment 8. Education and training

2.Customer Focus 6. Teamwork 9. Freedom through control

3. Obsession with quality 7. Continual process improvement 10.Unity of purpose

4. Scientific approach to decision making and problem solving 11. Employee involvement


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Specifications Traditional Total Quality

1 .Productivity You cannot have both

2. Quality defined Meeting customer specificationsSatisfying customer needs and exceeding customerexpectations.

3. Quality Measurement Measured by establishing an acceptable levelof non conformance and measuring against

benchmark

Measured by establishing high performancebenchmarks for customer satisfaction and then

continually improving performance.

4. Quality Achievement Inspected o the productDetermined by product and process design and

achieved by effective control techniques.

5. Attitude towards defectDefects are expected part of producing a

product.Defects are to be prevented using effective control

systems and should be measured in defects.

6. Quality as a function Quality is a separate function Quality should be fully integrated throughout theorganization

7. Responsibility to quality Employees are blamed for poor qualityAtleast 85 % of quality problems are managementfault.

8. Supplier relationship Short term and cost driven Long term and quality oriented

Two Views of Quality


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Strategically based

Using Strategic Planning in Total Quality ManagementStrategic planning is a process an organization uses to prioritize and focus the efforts of the company as well as the implementation of a

plan. A company uses strategic planning to predict and anticipate changes in the business environment and position the company to respond.Companies must develop an edge in the marketplace that differentiates the organization from all other businesses. An environment and reputation for

customer value and quality is one approach to meeting the demands of customers.

Implementing a strategic planning process in a company's Total Quality Management approach requires the organization to analyze andevaluate the needs of customers to determine the best approach to meet their needs. The final product and goal of the organization is creating value for

consumers. The organization must make quality a top priority for everyone in the company, from top managers to the workers building product.


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CUSTOMER FOCUS

What are the Types of customers?

What is the relation of a process vs its customers?

Define customer satisfaction?

How would you define quality with respect to customer satisfaction process?

What is customer defection, why it occurs and how can it be stopped?


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In a total quality setting, the customer is the driver. This point applies to both internal and external customers. External customers define the qua lity of the produor service delivered. Internal customers help define the quality of the people, process, and environments associated with the products or services.

There are two distinct types of customers i.e. external and internal. Internal customers are within the company-the colleagues working together fordelivering a service or product for the external customer.

An external customer may be an individual or an enterprise that hires or purchases the product(s) or service(s) from another person or business inexchange of money.

One of the most important factors for the success of an enterprise is its customers. Without them, a business cannot exist.

The process is defined as a set of interconnected activities that result in a product or a service to be offered to a customer. Thus, their relation is of criticalimportance. The result of one activity (the process) directly affects the o ther entity (the customer).

For example, all the customer complaints are analogous to process variation. If variation that is non-conformance to the quality standards occurs, it wultimately affect the quality of the end product or service. Therefore it important to keep a strong check on this aspect.


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Customer satisfaction is not an objective statistics but more of a feeling or attitude. If a customer is happy with a product or a service it has hired orpurchase they will pay their bills promptly, which greatly improves cash flow-the lifeblood of any organization. Customers that are satisfied willincrease in number, buy more, and buy more frequently.

Many companies approach customer satisfac tion in a narrow way by confining quality considerations to the product alone . Whereas, serviceconnected with the product are frequently over looked, such as packaging, timely and accurate shipping and ability to meet deadline matters.Customer define quality in terms of their overall experience with the company.

Customer defection means losing a business. It occurs when an unhappy customer decides to stop hire or purchase your services or products anddecides to find some other suitable alternative that satisfies its needs which your organization failed to deliver. Therefore, customer defection is athreat. On the other hand retaining a customer is great opportunity. For a product manufacturing company a customer defection may occur due topoor quality of product or poor after-sales services, whereas in case of service sector it plainly based on the quality of service itself.

Employee retention, which is achieved through good human resources management practices and organization development methods such as teambuilding, job development, and empowerment. Employee retention depends on employee satisfaction, which in turn can be related to externalservices and customer satisfaction.


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Quality and teamwork expert Peter R. Scholtes explains the concept of customer focus as follows:

Whereas Management by Results begin with profit and loss and return on investment, Quality Leadership starts with the customer. UnQuality Leadership, an organizations goal is to meet and exceed customer needs, to give lasting value to the customer. The return will focustomers boast of the companys quality and service. Members of a quality organization recognize both external customers, those who purchuse the products or services, and internal customers, fellow employees whose work depends on the work that precedes them.


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OBSESSION WITH QUALITY When an organization is obsessed with quality, good enough is never good enough.

Quality has to be something that's considered from the very beginning and built into everything a business or organization does. Planningcarefully, monitoring your work, and constant reevaluation and adjustment are all extremely important. You don't ensure quali ty by catching mistakes before

they reach the customer; you ensure it by setting up a system in which you don't make the mistakes to begin with. Everyone in the organization mustunderstand and adopt this point of view if the organization is truly going to have quality performance.

SCIENTIFIC APPROACH This means using the best research available, as well as the experience of others, to construct an effective program or initiative. That

approach is much more likely to result in success and high quality than relying only on intuition or on what seems politically correct.

LONG TERM COMMITMENTThe best work in the world is ultimately useless if it's not maintained. Quality is a long-term concept: you have to keep striving for its

improvement, even after you've achieved an acceptable level of performance. "Acceptable" is never good enough. In fact, you're never really at anendpoint, because the level you're trying to reach is "the best that can possibly be."

TEAMWORKWorking in teams, rather than individually, people make better connections with their colleagues and the organization, and create better

results. Teamwork removes performance pressure from the individual and usually coaxes (influence) better performance from everyone.


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CONTINUAL PROCESS IMPROVEMENT

The work of an organ ization must be viewed as a process that is never finished. Any program can always be improved, and must be changed as theneeds of the community or the target population change.

EDUCATION AND TRAINING

According to Scholtes: In a quality organization everyone is constantly learning. Management encourages employees to constantechnical skill and professional expertise. People gain an ever-greater mastery of their jobs and learn to broaden their capabil ities.education and training that people who know how to work hard learn how to also work smart.

FREEDOM THROUGH CONTROL

The freedoms enjoyed in a total quality setting are actually the result of well-planned and well carried out controls. Controls such as scientificmethodologies lead to freedom by empowering employees to solve problems within their scope of control.

UNITY OF PURPOSE

In order for quality to be achieved, everyone in an organization or business has to work together toward common goals. That means mutual supportthroughout the organization, not turf battles, not jealousy, not unnecessary competition. All interactions among people in the organization should bemutually helpful and aimed at achieving the best possible performance of the organization as a whole.


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EMPLOYEE EMPOWEWRMENT

In addition to employee involvement, employee empowerment isanother management concept the basic theme of which is to giveemployees the means for making important decisions, and makingthose decisions the "right" ones. When done right, the results areheightened productivity and a better quality of work life.


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Total Quality Pioneers

Demings contributions

Deming is the best known quality pioneer in the United States. According to Deming biographer Andrea Gabor: Deming has become the by far the mosinfluential proponent of quality management in the United States. Armand and Joseph Juran have strong reputations and advocate approaches toquality like Deming but both of them did not reach what Deming achieved.

Dr. William Edwards Deming is the man behind the concept, who is considered to be the father of modern quality control.


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THE DEMING CYCLE


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PDCAA CYCLE

The PDCAA cycle can be applied to an activity or a set of activities that are planned in advance. In the IT industry, it is mostly applied to the servicemanagement function.

The cycle is somewhat similar to Kaizen, where minor improvements are done at a time, and the cycle must be iterated to get the essence of it.

How does it Work?

Plan Any activity you need to undertake requires some planning. The first step in the cycle is to prepare a plan which will consider all possiblecombinations of outcomes, risks, necessary resource requirements amongst others. I suggest you put down your plan in a word document, rather than

just in your mind.

Do As the simple two letter word says, do what you have planned.

Check After you have done what was planned, stand back and observe. Compare the results with the plan. Analyze what else could have been doneto make the output better. Document the delta and the improvements in the same word file.

Act The analysis conducted would provide pointers on what needs to be done to fill the bridge between what was planned and what was implemented. And the improvements that were listed are implemented in this part of the cycle.

Analyze- Analyze how the product is received in the market place in terms of quality, cost and other criteria.


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Demings Fourteen Points

Create constancy of purpose toward the improvement of products and services in order to become competitive, stay in business, and provide jobs.

Adopt the new philosophy.

Stop depending on inspection to achieve quality.

Stop awarding contracts on the basis of low bids.

Improve continuously and forever the system of production and service, to improve quality and productivity, and thus constantly reduce cost.

Institute training on the job.

Institute leadership.


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Break down barriers between departments so that people can work as a team.

Eliminate slogans, exhortations, and targets for the workplace.

Eliminate quotas and management by objectives.

Remove barriers that job employees of their pride of workmanship.

Institute a vigorous program of education and self-improvement.

Make the transformation everyones job and put everyone to work on it.


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Demings Seven Deadly Diseases

1. Lack of constancy of purpose to plan products and services thathave a market sufficient to keep the company in business andprovide jobs.


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2. Emphasis on short-term profits; short-term thinking that is driven by a fear of unfriendly takeover attempts and pressure from bankers andshareholders to produce dividend.

3. Personal review systems for managers and management by objectives without providing methods or resources to accomplish objectives.


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4. Job hopping- by managers.

5. Using only visible data and information in decisiowith little or no consideration given to what is not kncannot be known.


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6. Excessive medical cost.

7. Excessive costs of liability driven up by lawyers that work on

contingency fees


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Activities in the area of quality management

Research and Development

Consulting Services

Seminars and Workshops

Training and Support Material

Jurans three basic steps to progress

1. Achieve structured improvements on a continual basis combinededication and a sense of urgency.

2. Establish an extensive training program.

3. Establish commitment and leadership on the part of the highermanagement.


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JURANS TEN STEPS TO QUALITY

1.Build awareness of both the need for improvement and opportunities for improvement.

2.Set goals for improvement

3.Organize to meet the goals that have been set.

4.Provide training.

5.Implement projects aimed at solving problems.

6.Report progress

7.Give recognition

8.Communicate result.

9.Keep score.

10.Maintain momentum by building improvement into company's regular process.


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THE PARETO PRINCIPLE

Is sometimes called the 80/20 rule. Named after economist Vilfredo Pareto. Dr. Juran suggested this principle to applied the idea to the

quality management

THE JURAN TRILOGY

Juran was one of the first to write about the cost of poor qu

which is composed of three managerial processes:q u a l i t y c o n t r o l and q u a l i t y i m p r o v e m e n t


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CROSBYS CONTRIBUTIONS

Started his carrer, in quality later than Deming and Juran.

Was a director of quality at ITT Corporation (1965-1979).

In 1979, Crosby started the management consulting company the Philip Crosby Associates. an international consulting firm on quality improvement, which he ran until 1992.

Is known for his concepts of "Do it right first time" and "Zero defects".

He defines quality as conformance to requirements which the company itself has established for its product based directly on customer needs.

He also known for his Quality Vaccine and Crosby's Fourteen Steps to Quality Improvements.

(1926-

2001)


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CROSBY'S THE FOUR ABSOLUTES OF QUALITY MANAGEMENT

Quality must be defined as conformance to requirements-not just as a good thing to do.

The best way to ensure quality is prevention, not inspection.

The standard for quality must be zero defects not "close is good enough"

Quality is measured by nonconformance, not indexes.


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SIX SIGMA CONCEPT

First developed in the mid-1980's by Moto

Won the Malcom Baldrige Nationa l Quality


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Six Sigma

A philosophy focusing on continuous improvement.

Enchancing profitability through improved quality and efficiency.

Improve the performance of processes to the point where the defect rateis 3.4 per million or less.

It uses a set of quality management methods, including statisticalmethods, and creates a special infrastructure of people within theorganization who are experts in these methods.

KEY ROLES FOR SIX SIGMA


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Six-step protocol for process improvement

Identify the product characteristics wanted by customers. Classify the characteristics in terms of their criticality.

Determine if the classified characteristics are controlled by part and/or process.

Determine the maximum allowable tolerance for each classified characteristic.

Determine the process variation for each classified characteristic.

Change the design of the product, process, or both to achieve a Six sigma process performance.


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SIX SIGMA:THE NAME

The name six sigma comes from the concept of standard deviation, a statictically derived value represented by the lowercase Greek sigma ( ).

If six sigma deviates three or four standard deviations away from the mean, the product must then remade or it will not pass quality inspection.


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Difference between straight statistics and the motorola cersion.


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RELATIONSHIP OF SIX SIGMA TO TOTAL QUALITY

Six sigma is an extension of total quality management.

Both help in improving quality.


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HOW IS SIX SIGMA ACHIEVED?

Six sigma can be achieved by improving process performance. There are two different methodologies for carrying out improvements in processes or operation.

DMAIC DMADV

SIX SIGMA METHODS

DefineMeasureAnalyzeImproveControl

DefineMeasureAnalyzeDesignVerify


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SIX SIGMA ROAD MAP

1. Appoint a champion

2. Select a cross-functional team

3. Develop quantifiable goals

4. Develop an implementation plan that establishes training, addresses data collection, and includes a program maintenance plan

5. Coordinate the road map.


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HISTORY OF SIX SIGMA

Robert Galvin- Motorola President in 1981.

Jack Welch- CEO ofGeneral electric to six sigma in 1995.


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THE FUTURE OF QUALITY MANAGEMENT


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Trends that will shape the future of quality management:

Demanding customers

Shifting customer value expectations

Economic pressures

New management approaches


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QUALITY MANAGEMENT CHARACTERISTICS FOR THE FUTURE

A total commitment to continually increasing value for customers, investors, and employees.

A firm understanding that market driven means that quality is defined by customers not the company.

A commitment to leading people with a bias fro continuous improvement and communication.

A recognition that sustained growth requires that simultaneous achievement of four objectives continually fo rever: a.) customer satisfaction, b.) costleadership, c.) effective human resources, and d.) integration with the supplier base.

A commitment to fundamental improvement through knowledge, skills, problem solving, and teamwork.


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1. A fundamental attribute of TQM is

a. Drawing control charts

5. Systematic problem solving requires

a. Motivating the worker


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b. Having team meetings

c. Top management's direct involvement

d. Meeting ISO 9000 audit

2. Drawing control charts requires

a. Calculation of statistics from data

b. Adjusting the machines

c. Teamwork training of workers

d. Top management involvement

3. Inspection assures that

a. The process is in control

b. Workers are motivated

c. Product meets specification

d. Quality problems are solved

4. Vision states

a. Where the workers want to go after work

b. Whether we should use inspection

c. Where the company wants to be in the long run

d. That customers are the boss

b. Defining the problem to be solved

c. Drawing control charts

d. Keeping management informed

6. A sampling plan helps in

a. Keeping the process in control

b. Keeping workers motivated

c. Adjusting ovens in the kitchen

d. Rejecting lots that are of unacceptable qua

7. Team orientation means

a. Workers having lunch with their families

b. Workers getting daily briefing

c. Working collectively toward a common go

d. Cooperation with government regulators

8. Problem identification requires

a. Flow charting the process

b. Monitoring customer complaints

c. Knowing how to draw control charts

d. Team meetings

9. Problem solving begins with

a. Team discussions

13.Service quality cannot be managed when

a. No vendors are involved


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b. SPC

c. Design of experiments

d. Problem identification

10. A Pareto chart shows

a. That the process is in control

b. The vital few from the trivial many

c. Process capability

d. A line drawn as production proceeds

11. Quality management requires

a. ISO 9000 certification

b. Workers not working overtime

c. Printing promotional brochures

d. Keeping internal customers satisfied

12. A problem definition should include

a. A control chart

b. Names of members of the team

c. What the problem is and what it is not

d. Ideas to solve the problem

b. Customer expectations are not known

c. Workers don't meet regularly with manage

d. Consultants are not consulted

14. Cost of quality is really

a. A way to prioritize actions

b. Cost of production

c. Cost of sales

d. Cost of high-quality products

15. The Baldrige Award is

a. A ISO 9000 requirement

b. An indication of SPC being used

c. Indication of no competition

d. Indication that TQM programs are effectiv

16.TQM does not imply

a. Strong external customer orientation

b. Partnership with vendors

c. Meticulously re-stocking defective produc

d. Training

17. SPC implies

a. Statistical process control


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b. Use of control charts

c. Sometimes leaving the process alone

d. All above

18. TQM is part of

a. Strategic management

b. ISO 9000 certificationc. QS 9000 certification

d. Hospital management

19.The best strategy in quality is

a. To inspect the output before shipment

b. To aim to produce on target

c. To check machines every day

d. To keep workers relaxed

20. The quantity sigma () indicates

a. Trend in the process

b. Dispersion in the data

c. Lack of attention by workers

d. Average

Answers1. c2. a3. c4. c5. b6. d7. c8. a

9. d10. b11. d12. c13. b14. A15. d16. c17. d18. a19. b20. b


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Exam Alerts:1. Who has overall responsibility for quality planning?

a. Project managerb. Quality managerc. Senior managerd. Project planner

2. Which of the following best describes the plan quality process?

a. Auditing quality requirements and the results from quality controlmeasurements.

b. Monitoring and recording results of executing quality activities

c. Identify quality requirements and/or standards for the project

d. Identify poor quality process or product quality

3. Which of the following is not a responsibility of the project manager?

a. Acquiring HR resources for the project team

b. Managing overall responsibility for quality in the organization

c. Overall responsibility for risk on the project

d. Overall responsibility for customer satisfaction on the project

4. Which subsidiary plan/component documents how the organizachieve the quality objectives for the project?

a. Quality management plan

b. Quality baseline

c. Process improvement plan

d. Quality control checklist

5. Which quality theory outlines 14 points and calls for quality alevels of the organization?

a. CMM

b. Kaizen

c. TQM

d. Malcolm Baldrige


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Answers

1. Answer A is correct. The project manager has overall responsibility. All other members of the project team assist in the process.

2. Answer C is correct. The Plan Quality process is the process of identifying quality requirements and/or standards to the project and produ Answer A is incorrect because it describes the Perform Quality Assurance process. Answer B is incorrect because it describes the PerforQuality Control process. Answer D is incorrect because it describes quality control activities.

3. Answer B is correct. Senior management is responsible for quality in the organization. The project manager is responsible for product qualon the project.

4. Answer A is correct. The quality management plan lists which quality policies apply to the project and documents how the quality objecwill be met. The quality baseline documents the quality objectives for the project. The process improvement plan documents how processes wbe analyzed for improvement. A quality control checklist is used to ensure steps of a process are completed.

5. Answer C is correct. Total Quality Management (TQM) uses 14 points and calls for quality awareness from everyone involved. CMM outlfive levels of process maturity. Kaizen, or continuous improvement, calls for a cycle of improvements to processes. Malcolm Baldrige iaward for quality awareness.

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