Week 02C

1
Week 02C Management of Quality (Ch 2)

• Dimensions, determinants, definition, pioneers,
  Cost of Quality, awards, ISO registration, TQM,
  process improvement methodology, quality tools,
  PDCA (PDSA) cycle, Quality Circles, Six Sigma

2
Whats your definition of quality?

• High price?
• Reliable?
• Attractive?
• Durable?
• Other?

3
Dimensions of Quality

• Performance
• Aesthetics
• Special features
• Safety
• Reliability
• Durability
• Perceived quality
• Service after sale

4
Quality - a Definition - 1

• Fitness for use - Juran
• Based on various factors reliability,
  durability, performance, usefulness, aesthetics,
  price, etc. - Various
• Meets customer requirements Various
• Consistently meets or exceeds customer
  expectations Stevenson
• Ability of a product or service to meet customer
  needs - Heizer

5
Quality - a Definition - 2

• Consistently meets or exceeds customer
  requirements Bentley
• Emphasis on requirements
• Includes understanding of expectations
• Implies an agreement
• explicit or
• Implicit
• Concept Do it right the first time and every
  time

6
Determinants of Quality

• How well a product satisfies its intended purpose
  based on 4 factors
• Design
• Conformance to the design
• Ease of use
• Service after delivery

7
Case Study a personal experience

• Program introduction
• General manager kickoff talk
• Key question What do we do at the end of the
  month if were not sure that a product meets
  quality requirements?
• The answer That all depends
• Possible consequences
• Program results

8
Quality Gurus / Pioneers - 1

• Frederick Taylor (1856-1915)
• Inspection
• Gauging
• Walter Shewhart (Bell System) (1891-1967)
• Developed Statistical control charts
• Mentored Deming
• PDCA cycle (shared with Deming)
• Identified 2 causes of variation chance and
  assignable

9
Quality Gurus / Pioneers - 2

• H.G. Romig (????-????) and Harold Dodge
  (1893-1976) (Bell System)
• Acceptance sampling tables
• W. (William) Edwards Deming (1900-1993)
• Trained in engineering, mathematics, and physics
• Physics professor, U.S. Census Bureau, USDA,
  consultant
• Taught SQC to Japanese QC people (1947-1965)
• PDCA cycle (shared with Shewhart)
• Honored by Japanese prize in his name

10
Quality Gurus / Pioneers - 3

• W. (William) Edwards Deming (contd.)
• 14 points based on
• Constancy of purpose
• Continual improvement
• Profound knowledge
• Appreciation for a system
• A theory of variation
• A theory of knowledge

11
Quality Gurus / Pioneers - 4

• Joseph M. Juran (Bell System) (1904-2008)
• Also lectured in Japan
• Authored/Edited Quality Control Handbook
• Built on Pareto concept
• Quality Trilogy concept
• Quality planning
• Quality control
• Quality improvement

12
Quality Gurus / Pioneers - 5

• Armand Feigenbaum (GE, General Systems Company)
  (1922- )
• Cost of nonconformance
• Total quality control concept
• Authored Total Quality Control
• 40 steps in quality principles
• TQC is system for integration Standards,
  appraisal, corrective action
• Technological and human factors
• 4 categories of quality costs
• Control quality at the source

13
Cost of Quality (Juran/Feigenbaum)
TRADITIONAL CoQ CURRENT CoQ

 
External Failure
 
  External Failure
Internal Failure  
  Internal Failure
   
Prevention  
   
  Prevention
   
Appraisal  
   
  Appraisal
14
Quality Gurus / Pioneers - 6

• Philip Crosby (Martin Marietta, ITT, PCA)
  (1926-2001)
• Zero Defects
• Authored Quality is Free, Quality Without
  Tears
• Started Quality College (multiple sites)
• Company teams trained
• Emphasized behavioral change

15
Quality Gurus / Pioneers - 7

• Kaoru Ishikawa (1915-1989)
• Quality Circles
• Cause and effect fishbone or
• Ishikawa diagram
• Promoted statistical methods
• Recognized internal customer
• Conceived company wide quality control

16
Quality Gurus / Pioneers - 8

• Genichi Taguchi (1924- )
• Emphasized variation reduction
• Taguchi loss function
• Shigeo Shingo (1909-1990)
• Not focused on quality but had significant impact
• Setup standardization
• Poka-yoke
• Source inspection systems

17
Awards Prizes

• Deming Prize
• Awarded by Union of Japanese Scientists
  Engineers
• First awarded in 1951
• Named after W. Edwards Deming
• Malcolm Baldrige Award
• Awarded by US Department of Commerce
• 1987 legislation
• Named after Malcolm Baldrige

18
Awards Prizes (contd)

• European Quality Award
• Award for organizational excellence
• Originally one per year
• Now several categories
• Other awards
• Most developed nations have some form of Quality
  awards or prizes

19
Value of Awards Prizes

• Shows effort
• Largely dependent on money spent
• Used in advertising
• Doesnt reflect customer view

20
ISO

• International Standards Organization

21
Current ISO Standards

• ISO 9000 family Quality management
• ISO 90012008 (QMS - Requirements)
• ISO 14000 family Environmental management
• ISO 140012004 (EMS - Requirements)
• ISO 190112002 (Guidelines on Quality and/or
  Environmental Management Systems Auditing)

22
ISO Registration

• Whats been good
• Focus on quality
• Demonstrates effort
• What was bad (mostly fixed in ISO 90002000
• Became mechanical
• Emphasized conformance to documentation, not
  meeting QUALITY
• Didnt include customer view

23
Quality Today

• Reflects a blend of concepts and contributions
  from the pioneers (gurus)
• Stresses organization-wide TQM
• Emphasizes the role of the front-line worker
  (authority and responsibility)
• Seeks to recognize achievement through prizes and
  certification

24
TQM Approach

• Know customer requirements and wants
• Design a product to delight the customer
• Design a process to do the job right (the first
  time and) every time
• Apply fail-safing techniques (poka-yoke
  devices)
• Monitor and record results for improvement ideas
• Work with suppliers and customers

25
Poka-Yoke(Mistake-Proofing)

• Developed by Shigeo Shingo
• An approach for mistake-proofing processes using
  automatic devices or methods to avoid simple
  human or machine error, such as forgetfulness,
  misunderstanding, errors in identification, lack
  of experience, absentmindedness, delays,
• or malfunctions

26
Poka-Yoke Examples (from John Grouts Poka-Yoke
Page)(refer to www.campbell.berry.edu/pokayoke)
mod. 09/15/02 DAB
27
Other TQM Points

• Continual improvement (kaizen)
• Competitive benchmarking
• Employee enablement
• Use of teams
• Training
• Extension to suppliers
• Traditional vs. TQM cultures

28
Process Improvement Tools

• Process flowcharts
• Check sheets
• Scatter diagrams
• Histograms
• Pareto analysis (charts)
• Cause-and-effect diagrams (Ishikawa/Fishbone)
• Control charts
• Run charts

29
Flowcharts

• Shows unexpected complexity, problem areas,
  redundancy, unnecessary loops, and where
  simplification may be possible
• Compares and contrasts actual versus ideal flow
  of a process
• Allows a team to reach agreement on process steps
  and identify activities that may impact
  performance
• Serves as a training tool

30
Check Sheet

• Creates easy-to-understand data
• Builds, with each observation, a clearer picture
  of the facts
• Forces agreement on the definition of each
  condition or event of interest
• Makes patterns in the data become
• obvious quickly

xx xxxxxx x
31
Scatter Diagram

• Supplies the data to confirm a hypothesis that
  two variables are related
• Provides both a visual and statistical means to
  test the strength of a relationship
• Provides a good follow-up to cause and effect
  diagrams

32
Histogram

• Displays large amounts of data that are difficult
  to interpret in tabular form
• Shows centering, variation, and shape
• Illustrates the underlying distribution of the
  data
• Provides useful information for predicting future
  performance
• Helps to answer the question Is the process
  capable of meeting requirements?

33
Pareto Diagram

• Helps a team focus on causes that have the
  greatest impact
• Displays the relative importance of problems in a
  simple visual format
• Helps prevent shifting the problem where the
  solution removes some causes but worsens others

34
Cause and Effect Diagram

• Enables a team to focus on the content of a
  problem, not on the history of the problem or
  differing personal interests of team members
• Creates a snapshot of collective knowledge and
  consensus of a team builds support for solutions
• Focuses the team on causes, not symptoms

Effect
Cause
35
Control Chart

• Focuses attention on detecting and monitoring
  process variation over time
• Distinguishes special from common causes of
  variation
• Serves as a tool for on-going control
• Provides a common language for discussion process
  performance

36
Run Chart

• Monitors performance of one or more processes
  over time to detect trends, shifts, or cycles
• Allows a team to compare performance before and
  after implementation of a solution to measure its
  impact
• Focuses attention on truly vital changes in the
  process

37
Process Improvement Sequence - 1

• Management responsibility
• Develop process improvement plan
• Determine process or area to examine
• Form and train Process/Quality Improvement Team

38
Process Improvement Sequence - 2

• Team use coarse tools
• Process flowchart
• Check sheets and histograms
• Pareto analysis lt--- (iterative
• Fishbone chart ---gt steps)

39
Process Improvement Sequence - 3

• Team use fine tools
• Process control charts
• Run diagrams
• Scatter diagrams
• Failsafing

40
Process Improvement Sequence - 4

• Team
• Determine process changes
• Implement pilot process improvement
• Measure and evaluate results
• Repeat if results unsatisfactory deploy full
  implementation if results satisfactory

41
PDCA (or PDSA) Cycle

• Also known as the Deming wheel, or
  Deming/Shewhart cycle or wheel
• 4 parts to the cycle
• Plan - document and analyze
• Do - implement improvement
• Check (or Study) - compare to desired state
• Act - correct or standardize
  
  

42
Quality Circles vs. QITs

• Quality Circles
• Limited authority
• Focus within department
• Often seen as added work
• Ongoing
• Quality Improvement Teams
• Greater authority
• Focus on total process
• Recognized as important part of job
• End when process improvement complete

43
5W2H Approach

• What? Subject
• Why? Purpose
• Where? Location
• When? Timing/sequence
• Who? People involved
• How? Method
• How much? Cost/impact

44
Six Sigma

45
Six Sigma Quality

• Latest popular approach to Quality
• 6 standard deviations (6?) from the process
  mean 0.0003 defects
• Represents a goal
• Certification from ASQ on processes to support
  Six Sigma
• Many consulting and training firms on how to
  implement Six Sigma

46
Six Sigma at GE

• The central idea behind Six Sigma is that if you
  can measure how many defects you have in a
  process, you can systematically figure out how to
  eliminate them and get as close to zero defects
  as possible.
• Making Customers Feel Six Sigma Quality

47
Six Sigma Evolution

• Started as a simple quality metric at Motorola in
  1986 (Bill Smith)
• Concept migrated to Allied Signal
• (acquired Honeywell and took its name)
• Picked up by General Electric
• Commitment by CEO Jack Welch in 1995
• Grown to be an integrated strategy for attaining
  extremely high levels of quality

48
What is Six-Sigma?

Sigma (?) is a Greek letter used to designate a standard deviation (SD) in statistics Six refers to the number of SDs from the specialized limit to the mean. Six sigma is a fairly recent umbrella approach to achieve quality

49
Percent Not Meeting Specifications

• 1S 32
• 2S 4.5
• 3S 0.3
• 6S 0.00034

50
Six-Sigma Levels
Sigma Level Long-term ppm defects
1 691,462
2 308,538
3 66,807
4 6,210
5 233
6 3.4

51
Statistics - DPU

• Defect
• Six Sigma any mistake or error passed on to the
  customer ???
• General view any variation from specifications
• DPU (defects per unit)
• Number of defects per unit of work
• Ex 3 lost bags 8,000 customers
• .000375

52
Statistics dpmo (defects per million
opportunities)

• Process may have more than one opportunity for
  error (e.g., airline baggage)
• dpmo (DPU 1,000,000)
• opportunities for error
• Ex (.000375)(1,000,000) 1.6 234.375
• or (3 lost bags 1,000,000) (8,000
  customers 1.6 average bags)
• 234.375