Chapter 9 Management of Quality Slides prepared by Laurel Donaldson Douglas College Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved.
Learning Objectives LO 1 LO 2 LO 3 LO 4 LO 5 Define the term quality, describe evolution of quality management, discuss dimensions and determinants of quality, describe various costs associated with quality, and discuss philosophies of quality gurus. Describe ISO 9001 and apply it. Describe HACCP and apply it. Describe and apply Canada Awards for Excellence and TQM. Give an overview of problem solving and process improvement, describe and use various quality tools. Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 2
Chapter Outline ® Introduction ® ® ® Evolution of Quality Management Dimensions and Determinants of Quality Costs of Quality Gurus ISO 9001 Hazard Analysis Critical Control Point Canada Awards for Excellence Total Quality Management Problem Solving and Continuous Improvement Six Sigma Basic Quality Tools ® Methods for Generating Ideas and Reaching Consensus Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 3
What is Quality? QUALITY is the ability of a product or service to consistently meet or exceed customer expectations ® Quality control is monitoring, testing, and correcting quality problems after they occur. ® Quality assurance is providing confidence in a products quality by preventing defects before they occur. LO 1 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 4
Evolution of Quality Management Pre-Industrial Revolution Craftsmanship: each craftsman responsible for quality. Industrial Revolution Division of labour: quality control shifts to full time inspectors 1950 s quality assurance 1970 s quality management systems 1980 s TQM, continuous improvement Today Six Sigma, statistical tools LO 1 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 5
Dimensions of Quality Performance Perceived quality Durability Reliability LO 1 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. Aesthetics Special features Safety 6
Service Quality Tangibles Courtesy Convenience Assurance Reliability Time LO 1 Responsiveness Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 7
Examples of Quality Dimensions LO 1 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 8
Examples of Quality Dimensions (Cont’d) LO 1 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 9
Determinants of Quality Product design • Intention of designers to include or exclude features that customers require Process design • Translating product characteristics into process specifications and tolerances Production • The degree to which goods or services conform to design specifications LO 1 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 10
Costs of Quality ®Failure Costs - costs incurred by defective parts/products ®Internal Failure Costs ®Fixing problems during production ®External Failure Costs ®fixing LO 1 problems after delivery to customer. Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 11
Costs of Quality (continued) Appraisal Costs ® Inspection and testing Prevention Costs ® Quality training, planning, customer assessment, creating standard operating procedures LO 1 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 12
The Quality Gurus • 14 points • mgmt must fix system • reduce variation • SPC, PDSA W. Edwards Deming Joseph M. Juran • fitness-as-use • trilogy: planning, control & improvement • continuous improvement • cost of quality LO 1 Armand Feigenbaum • zero defects • “Do it right the first time. ” Philip B. Crosby • “total field” • quality at the source • Quality is free Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 13
Quality Certification ®ISO 9001 ®Set of international standards on quality management and quality assurance, critical to international business ®Standards Council of Canada ®> 100 countries and 180 technical committees ®Documentation and assessment process takes 12 – 18 months for certification ®Re-register every 3 years LO 2 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 14
ISO 9001: 2000 Elements System Requirements Management Responsibilities Resource Management Product Realization Measurement, Analysis, and Improvement LO 2 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 15
ISO 9001 Activities Source: www. iso. org/iso_9000_selection_and_use-2009. pdf LO 2 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 16
Hazard Analysis Critical Control Point (HACCP) ®A quality control system, similar to ISO 9001, designed for food processors ®Deals with food safety (biological, chemical, and physical hazards) ® Main steps: 1. Hazard Analysis 2. Determination of the Critical Control Points 3. Creation of the HACCP Plan LO 3 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 17
Canada Awards for Excellence (CAE) Administered by National Quality Institute (NQI) Source: http: //www. nqi. ca/Certification/PEP/Overview. aspx LO 3 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 18
National Quality Institute (NQI) Source: http: //www. nqi. ca/Certification/PEP/Overview. aspx LO 3 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 19
Total Quality Management (TQM) A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction LO 3 Continuous Improvement: make never-ending improvements to critical processes Data driven Employee empowerment: Giving workers responsibility and training Team Approach Suppliers: encourage partnership and long term relationships Fail-safing: designing in elements that prevent errors Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 20
The TQM Approach 1. Find out what the customer wants 2. Design a product or service that meets or exceeds customer wants 3. Design processes that facilitates doing the job right the first time 4. Keep track of results 5. Extend these concepts to suppliers LO 3 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 21
Comparing the cultures of TQM and traditional organizations Aspect Traditional TQM Overall mission Maximize return on investment Emphasis on short term Not always open; at times inconsistent objectives Issue orders; enforce Not highest priority; may be unclear Assign blame; punish Not systematic; individuals Meet or exceed customer expectations Erratic Adversarial Narrow, specialized; much individual effort Product-oriented Continuous Partners Broad, more general; much team effort Objectives Management Role of manager Customer Requirements Problem solving Improvement Supplier relations Jobs Focus LO 3 Balance of long term and short term Open; encourages employee input; consistent objectives Coach, remove barriers, build trust Highest priority; important to identify and understand Identify and resolve Systematic; teams Process-oriented Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 22
Basic Steps in Problem Solving Define problem and establish improvement goals Define measures and collect data Analyze the problem Implement the solution Choose a solution Generate potential solutions Monitor solution to see if goals are accomplished LO 5 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 23
The PDSA Cycle Plan Act Do Study LO 5 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 24
Six Sigma ®Statistically ®Having no more than 3. 4 defects per million ®Conceptually ®Program designed to reduce defects ®Requires the use of certain tools and techniques Six sigma: A business process for improving quality, reducing costs, and increasing customer satisfaction. LO 5 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 25
Six Sigma Process 6 DMAIC LO 5 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 26
Basic Quality Tools LO 5 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 27
Basic Quality Tools LO 5 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 28
Check Sheet Billing Errors Monday Wrong Account Wrong Amount A/R Errors Wrong Account Wrong Amount LO 5 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 29
80% of the problems may be attributed to 20% of the causes. Number of defects Pareto Analysis Off Smeared Missing Loose Other center print label LO 5 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 30
Control Chart 1020 UCL 1010 1000 990 LCL 980 970 0 LO 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 31
Cause-and-Effect Diagram Materials Methods Cause Environment Cause Cause People LO 5 Cause Effect Cause Equipment Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 32
Diameter Run Chart Time (Hours) LO 5 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 33
Methods for Generating Ideas LO 5 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 34
Methods for Generating Ideas and Reaching Consensus ® Brainstorming ® Technique for generating a free flow of ideas in a group of people ® Quality Circles ® Groups of workers who meet to discuss ways of improving products or processes ® Interviewing ® Technique for identifying problems and collecting information ® Benchmarking ® Process of measuring performance against the best in the same or another industry ® The 5 W 2 H Approach ® A method of asking questions about a process/problem that include what, why, where, who, how, and how much LO 5 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 35
Learning Checklist þ Define the term quality. þ Explain why quality is important and the consequences of poor quality. þ Identify the determinants of quality. þ Describe the costs associated with quality. þ Describe the main ideas of the quality gurus. þ Outline the key elements of ISO 9001 and HACCP þ Describe the key ideas of TQM. þ Give an overview of the problem solving process for quality improvement. þ Describe the various quality tools. þ Describe some methods for generating ideas regarding quality issues. Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 36
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