Quality Concepts

NANI KURNIATI, PhD

DEPARTMENT OF INDUSTRIAL AND SYSTEM ENGINEERING

INSTITUT TEKNOLOGI SEPULUH NOPEMBER (ITS)

Industrial and System Engineering ITS

 Outline
Industrial and System Engineering ITS

Q definitions

Q dimensions

QP, QC, QI, QA, QMS

Q history

Q gurus

Legal aspect of Q

Cost of poor Q (COPQ)

Q DEFINITIONS

Industrial and System Engineering ITS

 What Quality is ?
Industrial and System Engineering ITS

• "the totality of features and characteristics of a product or

service that bears its ability to satisfy stated or implied
needs” - Business dictionary, ISO 8402-1986

• “how good or bad something is” - Cambridge dictionary,

Longman dictionary

• “degree of excellence; superiority in kind; a distinguishing

attribute” - Merriam-webster dictionary
 Q perspectives
Industrial and System Engineering ITS

Three perspectives of quality:

1. Q of design, Making sure a product or service is

produced according to design
2. Q of conformance, Q must consider product
specifications
3. Q of performance

Meaning of quality video

 Q perspectives, Q of design

Mercedes vs Ford
are equally “fit for 5-star hotel vs “losmen”
transportations”, are place to sleep with
but with different different features
design and
dimensions

Industrial and System Engineering ITS

 Q perspectives, Q of Conformance
Industrial and System Engineering ITS

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

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 Q perspectives, Q of Performance
Industrial and System Engineering ITS

▪ Q must keep along lifetime of the product

▪ Considering two aspects :
o Reliability (keandalan) – focus on failure
o Robustness (tangguh) – tangguh menghadapi
perubahan lingkungan
 Q perspectives, Consumer Producer
Industrial and System Engineering ITS

▪ Consumer’s perspective: PRICE

▪ Producer’s perspective: COST
 Another Q meanings
Industrial and System Engineering ITS

Traditional definition

• May related to Q of design and Q of conformance

Modern definition

• Variability is the important characteristic of product

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 The importance of Variance
Industrial and System Engineering ITS

• Japan Vs USA
• Why ? less variability = lower costs
• More smoothly & quietly = more superior
• Fewer repair & warranty = less rework = reduction of wasted time,
effort and money
• How ? Q improvement
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Q DIMENSIONS

Industrial and System Engineering ITS

 Dimensions of Quality
Industrial and System Engineering ITS

Dimensions of Q by Garvin (1987): Dimensions of Q:

Manufactured product Service

1. Performance 1. Time and Timeliness

2. Reliability 2. Completeness
3. Durability 3. Courtesy
4. Serviceability 4. Consistency
5. Aesthetics 5. Accessibility and convenience
6. Features 6. Accuracy
7. Perceived Quality 7. Responsiveness
8. Conformance to Standards
 Dimensions of Quality : Manufactured Products
Industrial and System Engineering ITS

1. Performance
• “Will the product do the intended job?”
• Will it perform certain specific function?
• basic operating characteristics of a product; how well a car is handled or its gas mileage
2. Reliability
• probability that a product will operate properly within an expected time frame
• “How often does the product fail?”
• Need frequent repair = unreliable
• Ex: TV will work without repair for about seven years
3. Durability
• “How long does the product last (before replacement) ?”
• Effective service life of the product
• Customer wants product that performs satisfactorily over period of time
4. Aesthetic
• “What the product look like, feel, sound, smell, taste?”
• Visual appeal of product (style, color, shape, packaging alternatives, tactile characteristic)
• Differentiate one brand with it’s competitors
 Dimensions of Quality : Manufactured Products
Industrial and System Engineering ITS

5. Serviceability
• “How quickly & economically a repair or routine maintenance activity?”
• How easy is it to repair the product?
• ease of getting repairs, speed of repairs, courtesy and competence of repair person
6. Features
• “What does the product do?”
• Features: something beyond the basic performance of the competition.
• Extra” items added to basic features
• Ex: a stereo CD or a leather interior in a car
7. Perceived Quality
• “What is the reputation of the company and its product?
• Influenced by failures of the product (highly visible to public/product recall), and how customer
is treated when such problem happened.
• Subjective perceptions based on brand name, advertising, and the like
8. Conformance to standard
• “ Is the product made exactly as the designer intended?”
• High Q product = the one that exactly meets the requirements placed on it
• Degree to which a product meets pre– established standards
 Dimensions of Quality : Service
Industrial and System Engineering ITS

1. Time and Timeliness

• How long must a customer wait for service, and is it completed on
time?
• Is an overnight package delivered overnight?

2. Completeness
• Is everything customer asked for provided?
• Is a mail order from a catalogue company complete when delivered?

3. Courtesy
• How are customers treated by employees?
• Are catalogue phone operators nice and are their voices pleasant?
 Dimensions of Quality:
Service
Industrial and System Engineering ITS

4. Consistency
• Is the same level of service provided to each customer each time?
• Is your newspaper delivered on time every morning?
5. Accessibility and convenience
• How easy is it to obtain service?
• Does a service representative answer you calls quickly?
6. Accuracy
• Is the service performed right every time?
• Is your bank or credit card statement correct every month?
7. Responsiveness
• How well does the company react to unusual situations?
• How well is a telephone operator able to respond to a customer’s
questions?
 Q Control
Q Planning and Q Assurance
Improvement

QUALITY STEPS

Industrial and System Engineering ITS

 Q Planning
Industrial and System Engineering ITS

• QP is a strategic activity, as vital to an organization’s long

term business success as the product development plan,
financial plan, and marketing plan, etc.
• Q planning involves identifying customers, both external
and those that operate internal to the business, and
identifying their needs (voice of customer, VOC).
• Then determine how products and services will be
realized, that meet or exceed customer expectations
• Planning of Q improvement on a specific, systematic basis
is also a vital.
 Q Control and Improvement
Industrial and System Engineering ITS

• QC and QI involve the set of activities used to ensure that

the product and service meet requirements and are
improved on a continuous basis.

• Since variability is often a major source of poor Q,

statistical techniques including SPC and DOE are major
tools of QCI.

• QI is often done on a project-by-project basis and involves

teams led by personnel with specialized knowledge of
statistical methods and experience in applying them.

• Projects should be selected so that they have significant

business impact and are linked with the overall business
goals for quality identified during the planning process.
 QI
Industrial and System Engineering ITS

• An equivalent definition is that quality improvement is the elimination

of waste. This is useful in service or transactional businesses.
 QA
Industrial and System Engineering ITS

QA is set of activities that ensure the Q level of products and

services are properly maintained and the Q issues are properly
resolved.
Documentation of Q system is important, involves four
components:
1. Policy generally deals with what is to be done and why.
2. Procedures focus on the methods and personnel that will
implement policy
3. Work instruction and specifications are usually product-,
department-, tool-, or machine-oriented.
4. Records are a way of documenting the policies, procedures
and work instructions that have been followed.
Q HISTORY

Industrial and System Engineering ITS

 History of Quality
Industrial and System Engineering ITS

❑ 1875, Frederick W Taylor pioneered dividing work into tasks ->

manufactured & assembled more easily & in standardized ->
improvement in productiviry & Q . Led to concept of study of motion
and work design. If carried to extremes -> halting innovation and
continuous improvement
❑ 1924, W.A. Shewhart developed Statistical control chart concept.
❑ 1928 H.F.Hodge & H.G.Romig developed and refined Acceptance
Sampling Methodology
❑ Mid 30’s Statistical Quality Control (SQC) method were in wide use at
western electric. But it value was not widely recognized by industry.
❑ WW2 greatly expanded use and acceptance of SQC concept to control
and improve product Q .
 History of Quality
Industrial and System Engineering ITS

❑ 1946 American Society for Quality Control was formed, which promotes
the use of Q improvement techniques for all types of product and
services.
❑ 1950’s Design of Experiment (DOE) for product and process
development were introduced in US firstly in the chemical industry. The
spread of these method was relatively slow.
❑ 1960 Japanese had used DOE systematically for process trouble
shooting, new process development, etc.
❑ 1980, a growth in the use of statistical methods for Q improvement in
US which is motivated by the widespread loss of business and market
suffered by many domestic companies due to foreign competition
Q GURUS

Industrial and System Engineering ITS

 Walter A. Shewhart (1891-1967)
Industrial and System Engineering ITS

• Trained in engineering and physics

• Long career at Bell Labs
• Developed the first control chart
about 1924
 W. Edwards Deming
Industrial and System Engineering ITS

• finished PhD in 1928

• Long career in government statistics,
USDA, Bureau of the Census
• During WW2, he worked with US
defense, contractors, deploying
statistical methods
• Sent to Japan after WW2 to work on
the census
• Met Walter Shewhart at Western
Electric
 Joseph M Juran
Industrial and System Engineering ITS

• Born in Romania (1904), immigrated

to the US
• Worked at Western Electric,
influenced by Walter Shewhart
• Emphasizes a more strategic and
planning oriented approach to quality
than does Deming
• Juran Institute is still an active
organization promoting the Juran
philosophy and quality improvement
practices
Industrial and System Engineering ITS

• Kaoru Ishikawa
– Son of the founder of JUSE, promoted widespread use of basic tools

• Armand Feigenbaum
– Author of Total Quality Control, promoted overall organizational
involvement in quality,
– Three-step approach emphasized quality leadership, quality
technology, and organizational commitment
 Product liability
Industrial and System Engineering ITS

Concept of strict liability

1. Responsibility of both manufacturer and
seller/distributor
2. Advertising must be supported by valid data
 Cost of poor quality (COPQ)
Industrial and System Engineering ITS

Quality Cost:
• Prevention costs: Q planning and engineering, new products review,
product/process design, process control, burn-in, training, data
acquisition and analysis
• Appraisal cos: inspection and test of incoming material, product
inspection and test, materials and service consumed, maintaining
accuracy of test equipment
• Internal failure costs: scrap, rework, retest, failure analysis, yield
losses, downgrading (off-spacing)
• External failure costs: complaint adjustment, returned
product/material, warranty changes, liability costs, indirect costs

COPQ video
END OF SLIDE