Introduction to quality, quality assurance and productivity

Introduction to Quality assurance and regulations, statistical quality methods , quality engineering and quality proces control, modern quality assurance systems and modern views of quality, quality improvement and terminologies, timelines of important milestone in the quality evolutionary processes.

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Introduction to Quality
Chapter 1
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Is an ounce of prevention really worth a
pound of cure?
•Quality is Free –Philip B. Crosby
•Th i s b o o k ch al len ged th e as s erti o n th at i t wo ul d co s t mo re to p ro du ce h igh er-quality
good s an d p rovi d ed an argu m en t th at i t wou l d cost m ore to p rod u ce a low-quality
product.
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Learning Objectives
1.Defi n e an d d i scu ss q u al ity an d qu al i ty im p ro vem en t
2.Di scu ss th e d i fferen t d i m en si o n s o f q u al ity
3.Di scu ss th e evo l u ti o n o f m o dern q u al i ty im p ro vem en t meth o d s
4.Di scu ss th e ro l e th at vari ab i l i ty an d stati sti cal m eth o d s p l ay in co n tro l li ng an d
improving quality
5.Exp l ai n th e l i n ks b etween q u al i ty an d pro d u cti vity an d between q u al i ty an d co st
6.Di scu ss p ro d u ct l i ab il ity
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Discussion topics
The Meaning of
Quality and
Quality
Improvement
A Brief History of
Quality Control
and Improvement
Statistical Methods
for Quality Control
and Improvement
Quality and
Productivity
Quality Costs
Legal Aspects of
Quality
Implementing
Quality
Improvement

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§Garvin (1987) provides eight components or dimensions of quality
1Performance Wi l l the product do the i ntended job?
2Reliability Ho w o ften d o es th e p ro d u ct fai l ?
3Du rab i l i ty Ho w l o n g d o es th e p ro d u ct l as t?
4Serviceability Ho w eas y i s i t to rep ai r th e p ro d u ct?
5Aesthetics What does the product l ook l ike?
6Features What does the product do?
7Perceived Quality What i s the reputati on of the com pany or its
product?
8Conformance to StandardsIs the product made exactly as the designer
intended?
9Responsiveness Ho w l o n g th ey d i d i t take th e s ervi ce p ro vi d er to
rep l y to yo u r req u es t fo r s ervi ce?
Dimensions of Quality
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§For the service sector some additional dimensions of Quality
could be added
10ProfessionalismTh i s i s th e kn o wl ed ge an d s ki ll s o f th e servi ce p ro vi d er, an d rel ate
to th e co m p eten cy o f th e o rgan i zati o n to p ro vi de th e req u i red
services.
11AttentivenessCustomers generally want caring, personalized attention from
th ei r servi ce p ro vi d ers. C u sto m ers wan t to feel th at th ei r n eed s
an d co n cern s are i m p o rtan t an d are b ei n g ad d res s ed .
Dimensions of Quality
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What is Quality?
§Quality is a multifaceted entity
§The American Society for Quality describes “quality” as a
subjective term for which each person or sector has its own
definition.
§Tr a d i t i o n a l v i ew o f Q u a l i t y
§Fitness for use
§Quality of design (V ariations in grades or levels of Quality are
intentional)
§Quality of conformance (How well the product conforms to the
specifications required by the design)
§The traditional view of quality has become associated more with
conformance aspect of quality than with design.
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Modern view of Quality
•Quality is inversely proportional to variability
•Customer doesn’t see the mean of the process, s/he only sees
the variability around the target that you have not removed -Jack
Welch (retired CEO -GE)

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What is Quality Improvement?
§Quality Improvement is the reduction of variability in processes
and products.
§Excessive variability in process performance often results in
waste.
§Quality Improvement is the reduction of waste.
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Quality Terminology
§Quality / Critical-To-Quality Characteristics (CTQ)
§Every product possesses a number of elements that jointly describe what
the user or consumer thinks of as quality
§Physical: length, weight, voltage, viscosity
§Sensory: taste, appearance, color
§Time Orientation: reliability, durability, serviceability
§Quality Engineering
§Set of operational, managerial, and technical activities that a company uses
to ensure that the quality characteristics of a product are at the nominal or
required levels and that the variability around these desired levels is
minimum.
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Quality Terminology
§Data Types
§Variables data are usually continuous measurements, such as length,
voltage, or viscosity.
§Attributes data, on the other hand, are usually discrete data, often taking
the form of counts.
§Specifications
§For a manufactured product, the specifications are the desired
measurements for the quality characteristics of the components and
subassemblies that make up the product, as well as the desired values for
the quality characteristics in the final product.
§In the service industries, specifications are typically in terms of the
maximum amount of time to process an order or to provide a particular
service. (Cycle Time)
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Quality Terminology
§Nominal / Target Value
§A value of a measurement that corresponds to the desired value for that
quality characteristic
§Upper Specification Limit (USL)
§The largest allowable value for a quality characteristic
§Lower Specification Limit (LSL)
§The smallest allowable value for a quality characteristic
§Nonconforming Product
§Products that fail to meet one or more of its specifications.
§Nonconformity
§Specific type of failure

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Quality Terminology
§Defective, Defects
§A nonconforming product is considered defective if it has one or more
defects, which are nonconformities that are serious enough to significantly
affect the safe or effective use of the product.
§Concurrent Engineering
§Stressed a team approach to design, with specialists in manufacturing,
quality engineering, and other disciplines working together with the
product designer at the earliest stages of the product design process.
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Discussion topics
The Meaning of
Quality and
Quality
Improvement
A Brief History of
Quality Control
and Improvement
Statistical Methods
for Quality Control
and Improvement
Quality and
Productivity
Quality Costs
Legal Aspects of
Quality
Implementing
Quality
Improvement
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Timeline of Important Milestones in the
Quality Evolutionary Process
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Timeline of Important Milestones in the
Quality Evolutionary Process

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Timeline of Important Milestones in the
Quality Evolutionary Process
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Timeline of Important Milestones in the
Quality Evolutionary Process
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Timeline of Important Milestones in the
Quality Evolutionary Process
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Timeline of Important Milestones in the
Quality Evolutionary Process

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Discussion topics
The Meaning of
Quality and
Quality
Improvement
A Brief History of
Quality Control
and Improvement
Statistical Methods
for Quality Control
and Improvement
Quality and
Productivity
Quality Costs
Legal Aspects of
Quality
Implementing
Quality
Improvement
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§Statistical Technology useful in quality improvement
§Statistical process control
§Design of experiments
§Acceptance-sampling
Statistical Methods for Quality Control and
Improvement
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Statistical Process Control (SPC)
§A control chart is one of the
primary techniques of
statistical process control
(SPC)
§Classically, control charts are
applied to the output
variable(s) in a system
§However, in some cases they
can be usefully applied to the
inputs as well.
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§Approach to systematically vary the controllable input factors in the
process and determining the effect these factors have on the output
product parameters.
§Off-line improvement technique
§Leads to a model of the process
§One major type of designed experiment is the factorial design, in which
factors are varied together in such a way that all possible combinations
of factor levels are tested.
Design of Experiments

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§Inspection and classification of a sample of units selected at
random from a larger batch or lot and the ultimate decision about
disposition of the lot, usually occurs at two points: incoming raw
materials or components and final production.
Acceptance-Sampling
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Modern Quality Assurance Systems
§Modern quality assurance
systems usually place less
emphasis on acceptance-
sampling and attempt to
make statistical process
control and designed
experiments the focus of
their efforts.
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Quality Engineering
§The primary objective of
quality engineering efforts is
the systematic reduction of
variability in the key quality
characteristics of the
product.
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Discussion topics
The Meaning of
Quality and
Quality
Improvement
A Brief History of
Quality Control
and Improvement
Statistical Methods
for Quality Control
and Improvement
Quality and
Productivity
Quality Costs
Legal Aspects of
Quality
Implementing
Quality
Improvement

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Quality and Productivity
§Producing high-quality products in the modern industrial
environment is not easy.
§A significant aspect of the problem is the rapid evolution of
technology
§To o l i t t l e a t t en t i o n i s p a i d t o a c h i ev i n g a l l d i m en s i o n s o f a n
optimal process: economy, efficiency, productivity, and quality.
§Effective quality improvement can be instrumental in increasing
productivity and reducing cost.
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Manufacturing Example
§Consider the manufacture of a mechanical component used in a
copier machine.
§Parts are manufactured in a machining process at a rate of
approximately 100 parts per day.
§First-pass yield = 75% (conforming).
§60% of the fallout (the 25% nonconforming) can be reworked into an
acceptable product, and the rest must be scrapped.
§The direct manufacturing cost = $20/part.
§Reworked parts incur an additional processing charge = $4
Cost / good part = (($20*100) + ($4*15))/90 = $22.89
To t a l Yi el d a f t er r ewo r k = 9 0 g o o d p a r t s / d a y
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Manufacturing Example
§Statistical process control procedure reduces variability and
thereby process fallout from 25% to 5%.
§Of the 5% fallout produced, about 60% can be reworked & 40% are
scrapped
Cost / good part = (($20*100) + ($4*3))/98 = $20.53
To t a l Yi el d a f t er r ewo r k = 9 8 g o o d p a r t s / d a y
§Installation of statistical process control & the reduction of
variability led to
§10.3% reduction in manufacturing costs
§10% increase in productivity
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Discussion topics
The Meaning of
Quality and
Quality
Improvement
A Brief History of
Quality Control
and Improvement
Statistical Methods
for Quality Control
and Improvement
Quality and
Productivity
Quality Costs
Legal Aspects of
Quality
Implementing
Quality
Improvement

9. 9
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Quality Costs
§Important financial control tool
§Reasons why the cost of quality should be explicitly considered in
an organization
§The increase in the cost of quality because of the increase in the
complexity of manufactured products associated with advances in
technology
§Increasing awareness of life-cycle costs, including maintenance, spare
parts, and the cost of field failures
§Quality engineers’ and managers’ ability most effectively communicate
quality issues in a way that management understands
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Categories of Quality Costs
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Preventive Costs
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Preventive Costs

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Appraisal Costs
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Internal Failure Costs
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External Failure Costs
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Analysis and Use of Quality Costs (example)

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Quality Costs
§Leverage Effect -dollars invested in prevention and appraisal have
a payoff in reducing dollars incurred in internal and external
failures that exceeds the original investment.
§Pareto Analysis -Consists of identifying quality costs by category,
or by product, or by type of defect or nonconformity.
§Reducing the cost of quality -Most of the cost reductions will
come from attacking the few problems that are responsible for
the majority of quality costs.
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Quality Costs
§Generating quality cost information
§The organization’s accounting system can provide information on those
quality-cost categories that coincide with the usual business accounts
§Information for cost categories for which exact accounting information is
not available should be generated by using estimates
§The usual method of reporting quality costs is in the form of a
ratio in which the numerator is quality cost dollars and the
denominator is some measure of activity
§Upper Management may want a standard to compare against and
this is usually done by comparing current performance to past
performance
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Failure of quality cost initiatives
§There are several reasons for the failure of quality-cost collection
and analysis efforts
§Failure to use quality-cost information as a mechanism for generating
improvement opportunities
§Overemphasis in treating quality costs as part of the accounting systems
rather than as a management control tool
§Management often underestimates the depth and extent of the
commitment to prevention that must be made.
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Discussion topics
The Meaning of
Quality and
Quality
Improvement
A Brief History of
Quality Control
and Improvement
Statistical Methods
for Quality Control
and Improvement
Quality and
Productivity
Quality Costs
Legal Aspects of
Quality
Implementing
Quality
Improvement

12. 12
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Legal Aspects of Quality
§Consumerism and product liability are important reasons why
quality assurance is an important business strategy.
§Virtually every product line of today is superior to that of
yesterday. Consumer dissatisfaction and the general feeling that
today’s products are inferior to their predecessors arise from
other phenomena.
§Explosion in the number of products
§Consumer tolerance for minor defects and aesthetic problems has
decreased considerably, so that blemishes, surface-finish defects, noises,
and appearance problems that were once tolerated now attract attention
and result in adverse consumer reaction.
§Competitiveness of the marketplace forces many manufacturers to
introduce new designs before they are fully evaluated and tested in order
to remain competitive.
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Legal Aspects of Quality
§Product liability is a major social, market, and economic force.
§In recent years, the courts have placed a more stringent rule in
effect called strict liability. Two principles are characteristic of
strict liability.
§The first is a strong responsibility for both manufacturer and merchandiser,
requiring immediate responsiveness to unsatisfactory quality through
product service, repair, or replacement of defective Product.
§Under strict product liability all advertising statements must be
supportable by valid company quality or certification data, comparable to
that now maintained for product identification under regulations for such
products as automobiles.
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Discussion topics
The Meaning of
Quality and
Quality
Improvement
A Brief History of
Quality Control
and Improvement
Statistical Methods
for Quality Control
and Improvement
Quality and
Productivity
Quality Costs
Legal Aspects of
Quality
Implementing
Quality
Improvement
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Implementing Quality Improvement
§A critical part of the strategic management of quality within any
business is the recognition of these dimensions by management
and the selection of dimensions along which the business will
compete.
§It is not necessary for the product to be superior in all dimensions
of quality, but management must select and develop the “niches”
of quality along which the company can successfully compete.
§Supplier selection and supply chain management may be the
most critical aspects of successful quality management in
industries such as automotive, aerospace, and electronics, where
a very high percentage of the parts in the end item are
manufactured by outside suppliers.

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Implementing Quality Improvement
§It is critical that management recognize that quality improvement
must be a total, company-wide activity, and that every
organizational unit must actively participate.
§The quality assurance function is a technology warehouse that
contains the skills and resources necessary to generate products
of acceptable quality in the marketplace.
§The quality function is not responsible for quality. The
responsibility for quality is distributed throughout the entire
organization.
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Implementing Quality Improvement
§Strategic management of quality in an organization must involve
all three components discussed earlier: quality planning, quality
assurance, and quality control and improve
§All of the individuals in the organization must have an
understanding of the basic tools of quality improvement.
§The key point is the philosophy that statistical methodology is a
language of communication about problems that enables
management to mobilize resources rapidly and to efficiently
develop solutions to such problems.
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End -Chapter 1