Quality Management Lecture 6.

1
Quality Management Lecture 6.

• Quality of Products and Services

2
Concept of quality 1

• Totality of features and characteristics of a
  product or service that bears upon its ability to
  satisfy stated or implied needs.
• These needs can be
• Objective (determined in contracts, or in
  standards) easy to measure
• Subjective (usefulness) it belongs to the
  custemer
• What could be an objective and a subjective
  measure for the quality of a book?
• Book jacket
• Quality of the paper
• publisher
• Author
• contents

3
Concept of quality 2

• Nowadays it has a strategic definition, because
  it not just mean the quality of a product, but it
  It is a basic business strategy, which means
  that products and services should totally meet
  both internal and external customers stated and
  latent needs.
• Quality is defined as meeting customers
  requirements

4
5 Approaches to Defining Quality Garvin 1

• The Transcendent Approach a quality cannot be
  defined precisely, we learn to recognize it only
  through experience
• Innate excellence
• Pictures of Picasso

5
5 Approaches to Defining Quality - Garvin 2

• The Product-based Approach quality is precise
  and measurable variable, products can be ranked
  quality products have more attributes (computer
  with more memory)

6
5 Approaches to Defining Quality - Garvin 3

• The Manufacturing-based Approach products or
  services meet stated requirements,
• Manufacturing and engineering practise - Quality
  is measured by the manufacturers ability to
  target the requirements consistently with little
  variability

7
5 Approaches to Defining Quality - Garvin 4

• The User-based Approach quality of a product is
  determined by the consumer. There is widely
  varying individual preferences

8
5 Approaches to Defining Quality - Garvin 5

• The Value-based Approach quality is defined in
  costs and prices. How much is the benefit of the
  good or servce outweigh the cost?
• Did the costumer get his or her moneys worth?

9
Quality of Products
10

• Quality of design determined before the product
  is produced, to meet costumers needs
• Quality of conformance producing a product to
  meet qualifications.
• The abilities
• Availability continuity of a service to the
  customer
• Availabilityuptime/(uptimedowntime)
• Reliability the length of time that a product
  can be used before it fails - MTBF
• Maintainability restoration of a product to
  service once it has failed MTTR
• AvailabilityMTBF/(MTBFMTTR)
• Field service or customer service warrenty and
  repair or replacement of a produt after it has
  been sold

11
8 Dimensions of product quality - Garvin

• Performance refers to a products primary
  operating characteristics
• Features bells and whistles added to a
  products
• Reliability probability that the product will
  not fail in a specific period of time (MTPF
  mean time between failure)
• Conformance the degree to which a product or
  service meets its specifications
• Durability a measure of the product life
• Serviceability this is the speed, the
  competence and easy of repair
• Aesthetics how the product looks, feels,
  sounds, tastes and smells. This is clearly a
  matter of personal judgment
• Perceived quality images, advertising, and
  brand names can be critical to give information
  about the product quality

12
Quality cycle
Customer Specifies quality needs
Marketing Interprets Customer needs Works with
Customer to design product to fit operations
Engineering Defines design concept Prepares
specifications Defines quality characteristics
Operations Produces the product or
service Quality Control Plans and monitors quality
13
Quality of Services
14
HIPI priciples

• Heterogenity (variability in the quality of
  service because services are provided by people,
  and people perform inconsistently)
• Intangibility (there is no specimen )
• Perishability (vary in demand can occure
  difficulty in supply)
• Inseparability (good service cant be separated
  from bad service)

15
SERQUAL - quality dimensions of services

• Reliability - service is performed with high
  accuracy and thoroughness
• Responsiveness - the willingness of employees to
  provide the service and how fats the service is
  provided
• Competence - possession of required skills, and
  knowledge
• Access - approachability and ease of contact
• Courtesy -comprises politeness, respect,
  friendliness
• Communication - informing the customers in an
  understandable way and listening to them
• Credibility - trustworthiness and honesty
• Security - physical and financial safety
• Understanding the customer - steps to know
  customer better
• Tangibles - all physical products that are
  involved in service delivery

16
RATER model

• Reliability
• Assurance Involves knowledge and courtesy of
  employees and their ability to inspire trust and
  confidence
• Tangibles
• Empathy Which is caring, individualized or
  customized attention the organization provides
  its customers
• Responsiveness
• It is an efficient model in helping an
  organization shape up their efforts in bridging
  the gap between perceived and expected service.

17
GAP model

• GAP 1 (Knowledge Gap) the difference between
  guests expectation and management perceptions of
  those expectations, i. e. not knowing what
  consumer expect
• GAP 2 (Standards Gap) difference between
  managements perceptions of guests expectations
  and service quality specifications , i.e.
  improper service quality standards
• GAP 3 (Delivery Gap) difference between service
  quality specifications and service actually
  delivered, i.e. the service performance gap
• GAP 4 (Communication Gap) difference between
  service delivery and the communications to the
  guests about service delivery, i.e. whether
  promised match delivery?
• GAP 5 (Overall Gap) the difference between
  guests expectation and perceieved service.

18
(No Transcript)
19
Developing of Quality Systems
20
Quality Check (QCh)

• Method testing product at the end of a process,
  compare with stated specifications
• It regards to products
• Goals detecting defections, a separate refuse
• Result prevent refuse from moving to another
  step of production

21
Statistical Qualty Control (SQC)

• Goals ensure that mistakes can not arise again
• It regards to processes
• Method continuous improvement of processes PDCA
  cycle Plan, Do, Check, Act
• Results prevent mistakes from arising again,

22
Quality Management System (QMS)

• Goals ensure that mistakes can not arise at all
• It regards to the whole system organization,
  processes, resources,
• Method regular audits, when compare the whole
  system with specifications stated in
  documentations
• Results the product and operation are optimized
  to the customers requirements (the best possible
  soultion)

23
Total Quality Management - TQM

• Management approach for an organization
• General Principles of TQM
• Customer Focus both actions and functions are
  designed and performed with the aim os meeting
  the needs of customers, this will ensure
  long-term success
• Continouos process improvement
• Commitment and personnel involvement employees
  assume responsibilities to achive quality
  accomplishing their task, and actively take part
  in the process of continuous improvement.

24
International Standardization Organization - ISO

• ISO 9000 is a family of standards for quality
  management systems.
• In 1994, 2000 and 2008 the rules are updated, as
  the requirements motivate changes over time.
• It can be audited by internal or external
  experts.
• Under the 1994 version, the question was broadly
  "Are you doing what the manual says you should be
  doing?", whereas under the 2000 version, the
  question is more "Will this process help you
  achieve your stated objectives? Is it a good
  process or is there a way to do it better?"

25
Cost of quality
26
Control Costs (CC)

• related to the activities which remove defects
  from the production stream.
• Prevention include activities such as quality
  planning, new-product reviews, training,
  engineering analysis. These activities prevent
  defects before they occure.
• Appraisal eliminating deffects after they occure
  but before the product reach the customer

27
Failure Costs (FC)

• internal faliure cost incurres during the
  production process. Include rework, quality
  downgradeing, machine downtime
• external failure cost incurres after the product
  is shipped. Includes warranty charges, returned
  goods, allowances.
• TCCCFCPCACIFCEFC

28
Total Cost
cost
Total cost
Cost of failures
Minimum cost
Cost of control
Number of defects produced
29
Excercise

• Cost of failure
• F150040X
• Cost of control
• C3080/X
• X-percent defective
• What is the minimum cost of quality, and the
  optimal percent deffective?

30
Solution

• TCFCCC 150040X3080/X
• TC/dX40-3080/X20
• 40X23080
• X277
• X8,77
• TCmin2202

F(x)xn F(x)/dxnx(n-1)
31
Seminar - Excercise
32
Scaling Procedure Based on the Method of Paired
Comparsion

• Attributes of products are not equally important
  for customers
• We have to discover the rank of these features
  and thus we can focuse on the main needs of
  customers.

33
Exercise

• Coffee
• Hot (I1)
• Milky (I2)
• Sweet (I3)
• Strenght (I4)
• Create pairs (1-2 4-1 3-2 1-32-4 3-4)
• Rank them randomly or use Ross-method
• Compare them, underline the preferred item

34

• Create Preference Matrix this contains
  preferences. Both in the rows and in the cols the
  dimensons are presented. When someone prefer item
  in row to item in col there is 1, otherwise 0.
• In the last col there is the sum of the value
  being in the row. This means how often the row
  item was preferred to the others.

I1 I2 I3 I4 a
I1 - 0 1 1 2
I2 1 - 0 1 2
I3 0 1 - 0 1
I4 0 0 1 - 1
35
Consistency test

• There are 3 item A, B, C
• If AgtB and BgtC then AgtC
• When decision maker is not consistent then this
  statement is not true.
• Consistency coeeficient
• Where dmax is the maximum number of incosistent
  decisions
• If n is odd number
• If n is even number

36
Example

• dmax(27-3)/241
• d4(4-1)(8-1)/12-(444)/27-61
• K1-1/10
• This is an inconsistent decision maker.
• The decision maker consistent when Kgt85

I1 I2 I3 I4 a
I1 - 0 1 1 2
I2 1 - 0 1 2
I3 0 1 - 1 2
I4 0 0 0 - 0
37
Creation of weighted number

• Preference fraction
• Where m is the number of decision makers.
• To get the weighted number we have to transform
  Pa value into a normal distribution or simply
  calculate the percentage value of it.
• if m14

38
Totalized preference matrix
  I1 I2 I3 I4 I5 I6 I7 I8 I9 I10 a am/2 Pa
I1   2 13 7 7 2 0 1 7 6 45 52 0,37
I2 12   9 8 10 10 0 1 6 6 62 69 0,49
I3 1 5   0 0 2 1 0 1 0 10 17 0,12
I4 7 6 14   8 11 2 1 2 5 56 63 0,45
I5 7 4 14 6   5 0 1 0 1 38 45 0,32
I6 12 4 12 3 9   0 0 0 4 44 51 0,36
I7 14 14 13 12 14 14   13 14 14 122 129 0,92
I8 13 13 14 13 13 14 1   12 13 106 113 0,92
I9 7 8 13 12 14 14 0 2   1 71 78 0,55
I10 8 8 14 9 13 10 0 1 13   76 83 0,59
Rj 81 64 116 70 88 82 4 20 55 50 630  
18 1 53 7 25 19 -59 -43 -8 -13    
324 1 2809 49 625 361 3481 1849 64 169 9732  
39
Kedall coefficient of concordance (W)

• Rj is the sum of the colums in the totalized
  preference matrix
• is the mean of Rj-s
• ? is the squared distance
• m is the number of decision maker
• n is the number of items

40
Meaning of the Kendall Coefficient

• Kendall's coefficient of concordance is used
  traditionally in statistics for measuring
  agreement between k orderings.
• If it is 1 there is total concordance.
• If it is 0 there is no concordance at all. But it
  even occure in that case when there is two group
  of decision maker with opposite oppinion. Then
  cluster analyize should be used to discover the
  groups.

41
Thank You for Attention