Unit 2: Quality Management

“Quality means doing it right when no one is looking.”

Objectives:
1. Restate the evolution of quality
2. Identify dimensions of quality for both manufacturing and service
3. Discuss quality improvement
4. Explain quality planning

EVOLUTION OF QUALITY
During the early days of manufacturing, an operative’s work was inspected and a decision made whether to accept or reject it. As
businesses became larger, so too did this role, and full time inspection jobs were created. Accompanying the creation of inspection
functions, other problems arose:
• More technical problems occurred, requiring specialized skills, often not possessed by production workers
• The inspectors lacked training
• Inspectors were ordered to accept defective goods, to increase output
• Skilled workers were promoted into other roles, leaving less skilled workers to perform the operational jobs, such as manufacturing

These changes led to the birth of the separate inspection department with a “chief inspector”, reporting to either the person in charge of
manufacturing or the works manager. With the creation of this new department, there came new services and issues, e.g., standards,
training, recording of data and the accuracy of measuring equipment. It became clear that the responsibilities of the “chief inspector” were
more than just product acceptance, and a need to address defect prevention emerged.

Hence the quality control department evolved, in charge of which was a “quality control manager”, with responsibility for the inspection
services and quality control engineering.

Quality
Joseph M. Juran defined quality as “fitness for use”
Quality of the product or service in simple terms is its suitability for use by the customer.

1. Quality Improvement
2. Reduction of costs as a result of improvement in quality: fewer mistakes, repairs, rejections, etc.
3. Increased production
4. Larger market share as a result of improved quality and lower price
5. The organization continues to exist as a permanent and stable entity, with a good reputation, in a competitive
6. The organization produces and sells more with increased profitability, grows steadily and employs more workers

1920 - Statistical theory started to be used successfully to quality control.

At the close of World War II, Japan’s industrial system was almost destroyed. The government can no longer afford to function and basic
human needs were unmet. Further, it had a reputation for cheap imitation products and an illiterate workforce. This led Japanese
organizations to explore new ways of thinking with the assistance of some prominent quality gurus.

1950 - Quality management practices developed rapidly in Japanese plants. Quality management becomes a major theme in Japanese
management philosophy. So by 1960, quality control and management had become a countrywide concern.

1960 - Quality control and management had become a countrywide concern.

Late 1960’s and early 1970’s - Japan’s imports into the USA and Europe increased significantly, due to its cheaper, higher quality products,
compared to the Western counterparts.

1969 - The first international conference on quality control, sponsored by Japan, America and Europe, was held in Tokyo. In a paper given
by Feigenbaum, the term “total quality” was used for the first time, and referred to wider issues such as planning, organization and
management responsibility. Ishikawa gave a paper explaining how “total quality control” in Japan was different, it meaning “company wide
quality control”, and describing how all employees, from top management to the workers, must study and participate in quality control

1982 - It was stated that Britain’s world trade share was declining and this was having a dramatic effect on the standard of living in the
country. There was intense global competition and any country’s economic performance and reputation for quality was made up of the
reputations and performances of its individual companies and products/services.

Since then the International Standardization Organization (ISO) 9000 has become the internationally recognized standard for
quality management systems. It comprises a number of standards that specify the requirements for the documentation, implementation
and maintenance of a quality system.

TQM is now part of a much wider concept that addresses overall organizational performance and recognizes the importance of
processes. There is also extensive research evidence that demonstrates the benefits from the approach.
QUALITY GURUS
Kaoru Ishikawa
Developed cause and effect diagrams
Identified concept of “internal customer”

Armand V. Feigenbaum
Introduced the concept of total quality control.

Genichi Taguchi
Focused on product design quality
Developed Taguchi loss function.

Philip Crosby
Coined phrase “quality is free”
Introduced concept of zero defects.

Shigeo Shingo
Completion of the single-minute-exchange of die method (SMED) which is a type of lean manufacturing method.

Walter Shewart
Contributed to understanding of process variability
Developed concept of statistical control charts

Taiichi Ohno
Father of Toyota production system.
Just-in-time, Kanban, jidoka

DEMING’S 14 POINTS FOR TOP MANAGEMENT

1. Create Constancy of Purpose for Improvement of Products and Services
2. Adapt the New Philosophy
3. Cease Dependence on Mass Inspection
4. End the Practice of Awarding Business on the Basis of Price Tag Alone
5. Constantly Improve the System of Production and Services
6. Institute Training
7. Adopt and Institute Leadership
8. Drive Out Fear
9. Break Down Barriers Between Staff Areas
10. Eliminate Slogans, Exhortations and Targets for the Work Force
11. Eliminate Numerical Quota for the Work force
12. Eliminate Numerical Goals for People in Management
13. Remove Barriers that Rob People of Pride of Workmanship
14. Encourage Education and Self-Improvement for Everyone
15. Take Action to Accomplish the Transformation

FOUR ABSOLUTES OF QUALITY MANAGEMENT

1. The definition of quality is conformance to requirements
2. The system of quality is prevention
3. The performance standard is zero defects
4. The measurement of quality is the price of conformance

DIMENSIONS OF QUALITY
PERFORMANCE
FEATURES
AESTHETICS
RELIABILITY
CONFORMANCE
PERCEIVED QUALITY
DURABILITY
SERVICEABILITY
KEY DIMENSIONS OF SERVICE QUALITY
RELIABILITY
TANGIBLES
ASSURANCE
EMPATHY
RESPONSIVENESS
QUALITY IMPROVEMENT
 It is designed at improvement which is evaluating where the organization is, and determining approaches to make things better.
 Quality improvement activities can be incredibly helpful in advancing how things work. It can be challenging and fun striving to find
where the fault in the system is, and searching new methods to carry out things. Thinking outside the box is great opportunity.
 Seeks better ways of doing things.

Preventing Shipping Errors

The Company: A mid-sized wholesaler
The Scenario:
This supplier provides components for manufacturers, delivering pallet loads directly to plants. In this instance, the delivery driver
pulls up to the address on file only to discover it’s not a manufacturing facility; it’s clearly a residence.
The client runs a small business, and the credit card’s billing address belongs to the owner’s home, while the shipping address is for the
manufacturing facility. Delivery staff has mixed up the client’s billing and shipping addresses, leading to a costly process defect.

QUALITY IMPROVEMENT PROCESS

1. Institute a culture of quality in practice
2. Decide and prioritize possible areas for improvement
3. Gather and examine data
4. Talk about results
5. Commit to continuing evaluation

QUALITY IMPROVEMENT MODEL

1. Model for Improvement (Plan-Do-Study-Act or PDSA cycle) – is a logical succession of steps for obtaining precious learning and
knowledge for the continual improvement of a product or process.
2. Lean Six Sigma – merges from two accepted QI models. Merging these two methods offers the improvement team a complete tool lay
down to boost the speed and effectiveness of any process inside the organization which result in improved revenue, reduced costs and
better cooperation.

A. Lean – is well liked for its systematic approach to streamlining both manufacturing and service processes by eradicating waste while
continuing to bring worth to customers.
B. Six Sigma – a technique of efficiently solving a problem. Using a sig sigma lessens the quantity of defective products manufactured or
services provided, resulting in improved income and superior customer satisfaction.

QUALITY PLAN
Illustrates how an organization will attain its quality objectives. It tells the quality objectives and specifies the quality assurance and control
activities to be performed in daily company operations.

QUALITY PLANNING
Is the formation of an actionable plan that defines and guarantees quality from idea to delivery. Quality planning means planning how to
accomplish process and product quality requirements.

QUALITY PLANNING
Provides a system that is capable of meeting quality standards.

QUALITY CONTROL
Is used to determine when corrective action is required.

QUALITY IMPROVEMENT
Seeks better ways of doing things.

PRINCIPLES OF QUALITY PLANNING

Customer satisfaction comes first
Prevention over inspection
Management responsibility
Continuous improvement

QUALITY PLANNING TOOLS

Cost Benefit Analysis – is a technique to find out whether the desired quality standards can or should be payed.
Benchmarking – process of evaluating the real project to other projects for producing ideas for improvement and offering a foundation by
which to measure performance.
QUALITY PLANNING TOOLS
Plan of experiments– is a technique for examining the influence of single parameters on the degree of quality of the entire
product/process.
Cost of Quality– are the total cost incurred by investment in preventing nonconformance to requirements, appraise the product or service
for conformance to requirements and failing to meet requirements.

Additional quality planning tools– support the quality planning process. Such
tools and techniques are brainstorming affinity diagrams, force field analysis,
nominal group techniques, matrix diagrams, flowcharts, and prioritization matrices.

Quality Planning tools and techniques

1. Flow charts
2. Check sheets
3. Pareto Diagrams
4. Bench marking
5. Design of experiments