Quality

Quality Management
Management
Process
Process Control
Control
 Quality Overview

• What is Quality?
– Vague, but not indeterminate
• Based upon customer requirements
• Need to understand customer, therefore
– Dimensions of quality
• Traditional:
– Two dimensions
» Conformance to specifications
» Design quality
– Quality is high when specifications met and
specifications = requirements
 Dimensions of Quality
Garvin’s Eight Dimensions of Quality
• Performance -- primary operating characteristics
• Features -- little extras
• Reliability -- probability of successful operation
(nonfailure) within a given time span
• Conformance -- meeting pre-established standards
• Durability -- length of usefulness, economically and
technically
• Serviceability -- speed, courtesy, competence, and
ease of repair
• Aesthetics -- pleasing to the senses
• Perceived quality -- indirect evaluations of quality
(e.g., reputation)
 Dimensions of Quality
Ten Dimensions of Service Quality
• Reliability -- consistency of performance and dependability
• Responsiveness -- willingness or readiness to provide service;
timeliness
• Competence -- possession of the skills and knowledge required to
perform the service
• Access -- approachability and ease of contact
• Courtesy -- politeness, respect, consideration for property, clean
and neat appearance
• Communication -- educating and informing customers in language
they can understand; listening to customers
• Credibility -- trustworthiness, believability; having customer’s best
interest at heart
• Security -- freedom from danger, risk, or doubt
• Understanding -- making an effort to understand the customer’s
needs; learning the specific requirements; providing individualized
attention; recognizing the regular customer
• Tangibles -- the physical evidence of service (facilities, tools,
equipment)
 Quality Management
• Total Quality Management - TQM
– What does total mean?
• Entire organization
• All products and processes
• All aspects (management, design, control)
– Not a flavor of the month (i.e., typical
management fad)
• Long term perspectives
• Consider the Japanese
– Checklist – Rigorously follow!!
 TQM – What it Involves
• Doing It Right the First Time
• Design Quality into the System (and Product)
– Methods – Equipment - Training
• Prevention is Better than Detection
• Quality is the Responsibility of Management
– Problems are result of the system
– Unempowered workers have no control over the system
• Customer Concept
– Focus: maximize value added
– External
– Internal – Horizontal – Supervisors – Subordinates
• Defects are Treasures
• Requirements
– Elements
• Top down commitment (management integrity)
• Bottom up ideas (cooperative worker attitudes)
– Two way communication is necessary
• Employee Empowerment
 Aspects of TQM
• Quality Concepts
– What is quality?
– Dimensions: design versus compliance quality
– Cost of quality (or lack of quality)
– Importance of quality
• Productivity and costs (Deming chain reaction)
• Competitiveness
• Quality Management
– Just good management in the first place!
– Addresses the quality of management
• Quality Control
– Acceptance sampling
– Process control
• Quality Improvement
– Approaches to making things/processes better
– Examples
• Taguchi methods – Charts – Histograms - Fisbone diagrams
– Primary sources (need two way communication)
• Customers Workers
 TQM – Deming Philosophy – 14 Points
1 -- Constancy of purpose
2 -- New philosophy
3 -- Price tag awarding of business
4 -- Mass inspection
5 -- Continuous improvement
6 -- Training
7 -- Supervision
8 -- Fear
9 -- Barriers
10 -- Slogans, etc.
11 -- Quotas
12 -- Pride in workmanship
• Direct labor
• Management
13 -- Education
14 -- Structure
 TQM – Deming Philosophy – Obstacles
• Lack of constancy of purpose (flavor-of-the month)
• Emphasis on short-term profits
• Performance evaluations (e.g., MBO)
• Executive mobility
• Emphasis of visible figures alone
• Excessive medical costs
• Excessive warranty costs (fueled by lawyers)
• Neglect of long-range planning
• Search for examples
• Belief that technology alone will transform industry
• Believing problems to be different
• Obsolescence in schools
• Reliance on Q/C departments
• Meeting specifications
• False starts (quality circles, lip service)
• Unmanned computers
 TQM - Other Quality “Experts:
• Joseph M. Juran
 The Quality Handbook editor
 Management breakthrough
 Quality trilogy
• Armand V. Fiegenbaum
 Total Quality Control
 Quality costs
 “Hidden plant”
• Kaoru Ishikawa
 Quality control circles
 Cause-effect diagrams
 Elemental statistical methods
• Philip B. Crosby
 Quality Is Free
 Zero defects
 Defined quality: meeting customer requirements
• Genichi Taguchi
 Efficient experimental design
 Robust design
 Quality loss function
 Competitive Benefits of TQM

Higher
prices
Continual Quality Improvement

Improved Market-Route
competitive or Benefits
position Increased
market
share

Increased
revenue

Increased
profits
Increased Reduced
defect-free cost of Cost-Route
output operations Benefits
 Recognizing Quality
• Benchmarking
– Definition: identifying and documenting best
practices
• Competitors - Other industries
– Start by selecting and benchmarking own
process
• Metrics: comparisons
• Practices: steps, errors, delays, etc.
– Concept and methods are evolving
– Typical steps summarized on next slide
 The Benchmarking Process: Common Steps
GETTING CONDUCTING COLLECTING
STARTED RESEARCH AND SHARING
Planning, INFORMATION
Collect
Organizing, information: Surveys
and Who's the Site visits
Managing best? Determine
for What to any third
benchmarking ask? parties

Continuous Improvement

PREPARING SELECTING ANALYZING

TO WHOM TO ADAPTING AND
BENCHMARK BENCHMARK IMPROVING
Identify key Establish Compare data.
process. relationship. Plan to surpass.
Form team. Plan to collect Implement and
Understand and share monitor.
your own information. Improve.
processes.
 Recognizing Quality
• Supplier Certification
– Part of vendor/customer partnership concept
• Can eliminate need for inspection, etc.
• Requires sharing of process information
– Alternatively, part of strong-arm approach
– ISO 9000 standards
• Doesn’t guarantee quality
• Emphasizes documentation of quality processes
• Requirement for selling to EC
– See various standards on next slide
 ISO 9000 Standards
Standard
ISO 9000 Quality Management and Quality Assurance
Standards -- Guidelines for Selection and Use
ISO 9001 Quality Systems -- Model for Quality Assurance
in Design, Development, Production,
Installation, and Servicing
ISO 9002 Quality Systems -- Model for Quality Assurance
in Production, Installation, and Servicing
ISO 9003 Quality Systems -- Model for Quality Assurance
in Final Inspection and Test
ISO 9004 Quality Management and Quality System
Elements -- Guidelines
 Recognizing Quality
• Quality Awards
– Include:
• Deming Prize (first major award)
• Baldrige Award (established by Congress)
• Statewide awards
– Provide
• Recognition (shouldn’t be primary goal)
• Path to improved quality
– Baldridge Award criteria
• Juran: criteria summarize TQM
Core Values for Baldridge Award

• Customer-driven quality
• Leadership
• Continuous improvement and learning
• Employee participation and development
• Fast response
• Design quality and prevention of defects
• Long-range view of the future
• Management by fact
• Partnership development
• Corporate responsibility and citizenship
• Results orientation
 Malcolm Baldrige Award Criteria - 1996
Maximum
Category Points
(1.0) Leadership 90
(2.0) Information and Analysis 75
(3.0) Strategic Planning 55
(4.0) Human Resource Development
and Management 140

(5.0) Process Management 140

(6.0) Business Results 250

 Employee Driven Quality
• Training (and education)
– Basic job skills - Tools for continuous improvement, SPC, etc. - Cross-training
– Must be considered as investment, not expense!
– Old (and still prevalent) approach
• Exploit division of labor (hire unskilled)
• Inhibits pride in workmanship
– Cross-training can build better understanding
• Organization
– Close supplier/customer (next process) contact
• Multi-functional teams, etc.
– Uniting workers for constancy of purpose
• Quality circles
• Cells and teams (pioneered in manufacturing)
– Project teams: when work flows are separated
• Gangs versus teams – see next slide
– Team training: team dynamics; problem-solving; quality tools
• Local Ownership
– Align management, control, and rewards with goals of employee/team
– Start with personal quality
• On time for meetings - Return phone calls within 24 hours - Etc.
– Managers as leaders
• Visible
• React to charts (abundant with local ownership)
• Facilitate jobs and problem solving
 Quality Circles: Gangs vs. Teams
A. Gangs: Quality circles composed of employees
from same department or shop

Welder Welder Order-entry Order-entry

A B Clerk A Clerk B

Supervisor Supervisor

Welder Welder Order-entry Order-entry

C D Clerk C Clerk D

Quality circle - welding Quality circle - order-entry

 Quality Circles: Gangs vs. Teams (cont.)
B. Teams: Quality circle composed of a chain of
provider-user pairs-formally organized
into a work cell

Order entry
Packer
clerk Saw Grinder
operator operator
Welder
 Quality Contrasts
• Quality and Speed
– Good quality takes time
– Reduced throughput times improved quality
• Benchmarking
– Keep it a secret
– Trade it (cooperate as well as compete)
• Management Theories
– Theory X (managers and workers)
– Theory Y (listen to the workers)
– Theory T (train for contribution to
improvement)
Seven Tools for TQM
 Pareto Analysis of Wine Glass
Defects (Total Defects = 75)
70 93% 97% 100% 100%
88%
60 54
72% 80%
Frequency (Number)

Cumulative Percent
50
40 60%
30 40%
20 12
20%
10 5 4 2
0 0%
Scratches Porosity Nicks Contamination Misc.
72% 16% 5% 4% 3%
Causes, by percent total defects
 Process Chart
• Shows sequence of events in process
• Depicts activity relationships
• Has many uses
– Identify data collection points
– Find problem sources
– Identify places for improvement
– Identify where travel distances can be reduced
 Process Chart Example

SUBJECT: Request tool purchase

Dist (ft) Time (min) Symbol Description

 D  Write order

 D On desk

75    D  To buyer

 D  Examine

 = Operation;  = Transport;  = Inspect;

D = Delay;  = Storage
 Cause and Effect Diagram
• Used to find problem sources/solutions
• Other names
– Fish-bone diagram, Ishikawa diagram
• Steps
– Identify problem to correct
– Draw main causes for problem as ‘bones’
– Ask ‘What could have caused problems in these
areas?’ Repeat for each sub-area.
Cause and Effect Diagram Example

Problem

Too
Toomany
many
defects
defects
Cause and Effect Diagram Example

Method Manpower

Main Cause

Too
Toomany
many
defects
defects

Material Machinery

Main Cause
Cause and Effect Diagram Example

Method Manpower

Drill
Overtime
Too
Toomany
many
defects
defects
Wood
Steel Lathe
Material Machinery
Sub-Cause
Cause and Effect Diagram Example

Method Manpower

Drill Tired
Overtime
Slow Too
Toomany
many
defects
defects
Wood Old

Steel Lathe
Material Machinery
Fishbone Chart - Problems with
Airline Customer Service
 Statistical Process Control (SPC)
• Uses statistics & control charts to tell
when to adjust process
• Developed by Shewhart in 1920’s
• Involves
– Creating standards (upper & lower limits)
– Measuring sample output (e.g. mean wgt.)
– Taking corrective action (if necessary)
• Done while product is being produced
Statistical Process Control Steps

Produce Good
Start
Provide Service
No
Assign.
Take Sample Causes?
Yes
Inspect Sample Stop Process

Create
Find Out Why
Control Chart
 Process Control Chart

Plot of Sample Data Over Time

80
Sample Value

Sample
60 Value
UCL
40
Average
20
LCL
0
1 5 9 13 17 21
Time
 Control Chart
30%

Upper Control Limit

20%

Coach's target value

10%

Lower Control Limit

0%
0 1 2 3 4 5 6 7 8 9 10
Game Number
Patterns to Look for in
Control Charts
 Inspection
• Involves examining items to see if an item is good
or defective
• Detect a defective product
– Does not correct deficiencies in process or product
• When/Where in process to inspect
– At the supplier’s plant while the supplier is producing
– At your facility upon receipt of goods from supplier
– Before costly or irreversible processes
– During the step-by-step production processes
– When production or service is complete
– Before delivery from your facility
– At the point of customer contact
 Inspection Points in Services

• Organization – Hard Rock Hotel

–
–
• What is inspected
–
–
• Standard
–
–
 Inspection Points in Services

Organization What is Standard

Inspected

Hard Rock Reception desk Use customer’s name

Hotel Greet guest in less
Doorman
than 30 seconds
All lights working,
spotless bathroom
Minibar Restocked and charges
accurately posted to bill
 Inspection Points in Services

• Organization – Jones Law Office

–
–
• What is inspected
–
–
• Standard
–
–
 Inspection Points in Services

Organization What is Standard

Inspected

Jones Receptionist Is phone answered

Law Office performance by the second ring
Billing Accurate, timely,
and correct format
Attorney Promptness in
returning calls
 Inspection Points in Services

• Organization – Bayfield Community

Hospital
–
–
• What is inspected
–
–
• Standard
–
–
 Inspection Points in Services

Organization What is Standard

Inspected

Bayfield Billing Accurate, timely, and correct

Community format
Hospital Pharmacy Prescription accuracy,
inventory accuracy
Lab Audit for lab-test accuracy
Nurses Charts immediately updated
Admissions Data entered correctly and
completely
 Inspection Points in Services

• Organization – Hard Rock Cafe

–
–
• What is inspected
–
–
• Standard
–
–
 Inspection Points in Services

Organization What is Standard

Inspected

Hard Busboy Serves water and

Rock bread within 1 minute
Cafe Busboy Clears all entrée items
and crumbs prior to
desert
Waiter Knows and suggest
specials and desserts
 Inspection Points in Services

• Organization – Bank
–
–
• What is inspected
–
–
• Standard
–
–
 Inspection Points in Services

Organization Some Points Issues to Consider

of Inspection

Bank Teller Shortages, courtesy,

stations speed, accuracy

Loan Collateral, proper credit checks,

accounts rates, terms of loans, default rates,
loan rates

Checking Accuracy, speed of entry, rate

accounts of overdraws
 Inspection Points in Services

• Organization – Nordstrom’s Dept Store

–
–
• What is inspected
–
–
• Standard
–
–
 Inspection Points in Services

Organization What is Standard

Inspected

Nordstrom’s Display areas Attractive, well-organized,

Department stocked, good lighting
Store
Rotation of goods,
Stockrooms organized, clean
Neat, courteous, very
Salesclerks knowledgeable
 Inspection Points in Services

• Organization – Restaurant
–
–
• What is inspected
–
–
• Standard
–
–
 Inspection Points in Services

Organization Some Points Issues to Consider

of Inspection
Restaurant Clean, proper storage,
unadulterated food, health
Kitchen
regulations observed, well-
organized
Cashier station Speed, accuracy, appearance

Dining areas Clean, comfortable, regular

monitoring by personnel,
 Inspection Points in Services

• Organization – Retail Store

–
–
• What is inspected
–
–
• Standard
–
–
 Inspection Points in Services

Organization Some Points Issues to Consider

of Inspection

Retail store Clean, uncluttered, organized, level

Stockrooms
of stockouts, amply supply, rotation
of goods

Display areas Attractive, well-organized, stocked,

visible goods, good lighting

Neat, courteous knowledgeable

Sales counters personnel; waiting time; accuracy in
credit checking and sales entry
 TQM in Services
• Service quality is more difficult to
measure than for goods
• Service quality perceptions depend on
– Expectations versus reality
– Process and outcome
• Types of service quality
– Normal: Routine service delivery
– Exceptional: How problems are handled
 Goods Vs. Services
Good Service
• Can be resold • Reselling unusual
• Can be inventoried • Difficult to inventory

• Some aspects of quality • Quality difficult to

measurable measure
• Selling is distinct from • Selling is part of service
production
• Product is transportable • Provider, not product is
transportable
• Site of facility important for cost • Site of facility
important for customer
• Often easy to automate contact
• Often difficult to
• Revenue generated primarily from automate
tangible product • Revenue generated
primarily from
intangible service.