What is Quality?
“Quality” may be
Perfection
Consistency
Eliminating waste
Speed of delivery
Compliance with policies and procedures
Providing a good, usable product
Doing it right the first time
Delighting or pleasing customers
Total customer service and satisfaction
Defining Quality
Qualitycanbeaconfusingconcept,partlybecause
peopleviewqualityinrelationtodifferingcriteria
basedontheirindividualrolesintheproduction-
marketingvaluechain.
“getting what you pay for”
“getting more than you pay for”
“a degree or level of excellence”
“the totality of features and characteristics of a
product or service that bears on its ability to
satisfy given needs” (American National
Standards Institute (ANSI) and American Society
for Quality Control (ASQC))
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Quality And Profitability
Improved Quality
of
Design
Higher
Perceived Value
Increased
Market Share
Higher
Prices
Increased
Revenues
Higher
Profitability
Improved
Quality of
Conformance
Lower
Manufacturing
And
Service Costs
Joseph M. Juran and the Cost Of Quality
2typesofcosts:
UnavoidableCosts:preventingdefects(inspection,
sampling,sorting,QC)
AvoidableCosts:defectsandproductfailures
(scrappedmaterials,labourforre-work,complaint
processing,lossesfromunhappycustomers
Juran’sModel of Optimum Quality Cost
COST PER GOOD UNIT OF PRODUCT
0
100% DEFECTIVE
100%
100% GOOD
QUALITY LEVEL
COST OF APPRAISAL + PREVENTION
FAILURE COST
TOTAL
QUALITY
COST
Joseph M. Juran and the Cost Of Quality
100% defective Point of “Enough
quality”
Total
Costs
Unavoidable
costs
Avoidable
costs
Costs
Quality Gurus
•Walter A. Shewhrat (Father of Quality, 1920-1940s)
•Dr. W. Edwards Deming (14-points, 1945-1980s)
•Dr. Joseph M. Juran (TQM, post WWII –1980s)
•Philip Crosby (Quality is Free, 1980s)
•Kaoru Ishikawa (Fish Bone, SPC, post WWII -1980s)
History of Quality Paradigms
1-Customer-CraftqualityParadigm
Designandbuildeachproductforaparticularcustomer.
Producerknowsthecustomerdirectly.
2-Massproduction&inspectionParadigm
Focusondesigningandbuildingproductsformassconsumption.
-Pushproductsonthecustomer(limitcustomerchoices).
-Qualityismaintainedbyinspectinganddetectingbadproducts.
Majorinnovationtothisparadigm:statisticalprocesscontrol
3-TQMParadigm
Potentialcustomersdeterminewhattodesignandbuild.
Higherqualityobtainedbyfocusingonpreventingdefectsand
continuouslyreducingvariabilityinallprocesses.
TQM: A Definition
TQMisateam-basedcooperativeformofdoing
businessthatreliesontalentsandcapabilitiesto
continuallyimprovequalityandproductivity.
Continuous Improvement
(through measurement and analysis)
Customer
Focus
Process
Management
Employee Training
& Empowerment
T. Q. M.
•Reduce rework activities (Cost reduction)
•Shorter development cycle (Cost reduction)
•Increased customer satisfaction (Quality improvement)
Pillars of TQM
Other Elements of TQM
Leadership
VisionandPlanStatement
EmployeeParticipation
RecognitionandReward
EducationandTraining
SupplierQualityManagement
PerformanceEvaluation
ProductDesign
BARRIERS TO TQM IMPLEMENTATION
Lack of management commitment
Inability to change org. Structure
Improper planning
Lack of continuous training & education.
Inadequate team work and empowerment
Inadequate monitoring
Paying inadequate attention to internal and
external customers
Non-continuous pursuing
Inadequate Use of Empowerment And Team
Work
Tools of TQM
Check sheets
Scatter diagrams
Cause-and-effect diagrams
Pareto charts
Flow charts
Histograms
Statistical process control
Tools of TQM
Tools for generating ideas
Check sheet
Scatter diagram
Cause and effect diagram
Tools to organize data
Pareto charts
Process charts (Flow diagrams)
Tools for identifying problems
Histograms
Statistical process control chart
Seven QC Tools for TQM
Usesstatistics&controlchartstotellwhento
adjustprocess
DevelopedbyShewhartin1920’s
Involves
Creatingstandards(upper&lowerlimits)
Measuringsampleoutput(e.g.meanwgt.)
Takingcorrectiveaction(ifnecessary)
Donewhileproductisbeingproduced
Statistical Process Control (SPC)