Chapter 3

Transcript Chapter 3

Chapter 3: Quality Management 1

What business are you in?

 CEO of GM announced, “GM wasn’t in the business of making cars, GM was in the business of making money”.

 Taylor > Drucker > McNamara  According to Tom Peters from “In Search of Excellence” fame Chapter 3: Quality Management 2

Chapter 3

Quality Management Chapter 3: Quality Management 3

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Examples

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West Babylon School District

 Began applying continuous improvement and quality to its administrative and education processes.

 TQE  Applied Deming’s “14 Points” for management to administrative process.

 Numerous improvements made.

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National Semiconductor

 Early proponent of total quality  Quality circles 1981  Preventive maintenance 1982  Statistical process control 1983  Design of experiment techniques 1984  Design for manufacturing techniques 1986 Chapter 3: Quality Management 7

National Semiconductor

continued

 Second stage of quality initiatives (1990s)    Focused on customer-supplier relationships Customer satisfaction Customer score cards     Process analysis Employee empowerment Team strategies Problem solving techniques  Visioning Chapter 3: Quality Management 8

National Semiconductor

continued

 Third stage  Personal mastery  Shared vision  Systems thinking  Team learning Chapter 3: Quality Management 9

NCR

 Produces business information processing systems  Recognized need to continuously improve its products  Major component of its continuous improvement program is use of statistical techniques Chapter 3: Quality Management 10

NCR

continued

 Began using statistical process control techniques in 1985 to monitor its autoinsertion operation on its printed circuit board assembly line.

 Line was producing an unacceptable number of defects.

 Reasons included misinserted or broken parts, using the wrong parts and so on.

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NCR

continued

 Quality engineering department established process averages, control limits and guidelines for action for “out-of control” conditions.

 Production was stopped when out-of-control condition detected until cause identified.

  Random samples of 1000 insertions were collected each hour and the results plotted on a

chart.

Out-of-control situations were investigated to identify the assignable cause.

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NCR

concluded

 Learned a great deal about the autoinsertion operation using the control charts.

 Problem of broken parts was traced to a specific supplier.

 Because of the success of this experiment, statistical process control was implemented across the entire assembly line.

 NCR has since changed its approach from “inspect and repair” to “prevent and design for quality.” Chapter 3: Quality Management 13

Timber Companies

 Because of environmental restrictions and limited quantities of large-diameter trees, many timber companies are using statistical quality control techniques to maximize the quality and quantity of finished lumber produced Chapter 3: Quality Management 14

Converting Logs into Finished Lumber

 Debarked log split down the middle  Split log resawed to create boards  Ends of boards trimmed  Boards are stacked  Log debarked  Boards dried in kiln for 2 to 30 days  Boards are planed Chapter 3: Quality Management 15

Applying SPC to the Stacking Operation

 Important because this determines straightness of finished lumber.

 Lumber stacked in layers.

 Separators placed between layers to form air channels and transfer weight of wood.

 Automated equipment used to stack lumber making it necessary to monitor the alignment of the separators.

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Stacking Operation

continued

 Estimated cost of misplaced separator is $31.50 owing to board warping.

 Average sawmill handles upwards of 30,000 separators each day.

 Measuring board placed in front of each column of separators to monitor separator alignment.

 Stack of lumber contains approximately 15 columns of separators and 360 separators.

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Stacking Operation

concluded

 Total number of misplaced separators is divided by the total number of separators in the stack of lumber and result plotted on

chart.

 Using

chart, workers monitor the stacking equipment and identify problems before an out-of-control situation arises.

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Quality Management Perspectives

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Quality Costs

 Two primary sets of costs involved in quality  Control costs  Failure costs  These costs are often as high as 15 to 35% of sales  Costs often broken down into four categories Chapter 3: Quality Management 20

Category 1: Prevention Costs

 Costs associated with trying to prevent defects and errors  Training for quality  Educating suppliers  Designing product for quality  Designing production system for quality  Preventive maintenance Chapter 3: Quality Management 21

Category 2: Appraisal Costs

 Costs of determining current quality  Measuring and testing parts  Running special test laboratories  Acquiring special testing equipment  Conducting statistical process control  Inspecting incoming materials Chapter 3: Quality Management 22

Category 3: Internal Costs of Defects

 Costs incurred when defects are found before shipment/delivery to customer.

 Labor and materials going into scrap  Reworking and retesting to correct defects  Downtime of equipment and labor while waiting for repairs  Yield losses Chapter 3: Quality Management 23

Category 4: External Costs of Defects

 Costs of trying to correct defects after receipt by customer.

 Lost of customer goodwill  Recalls to correct problem  Warranty, insurance, and legal suit settlements Chapter 3: Quality Management 24

Quality Management Philosophies

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W. Edwards Deming

 Major source of poor quality is

variation

 Quality improvement the responsibility of top management  All employees should be trained in use of problem solving tools and especially statistical techniques Chapter 3: Quality Management 27

Deming’s 14 Points

 Create constancy of purpose  Adopt the new philosophy  Cease dependence on mass inspection  End practice of awarding business on basis of price tags  Improve constantly and forever  Institute modern methods of training Chapter 3: Quality Management 28

Deming’s 14 Points

continued

 Institute modern method of supervision  Drive out fear  Breakdown organizational barriers  Eliminate arbitrary numerical goals  Eliminate work standards and quotas  Remove barriers that reduce pride of workmanship Chapter 3: Quality Management 29

Deming’s 14 Points

continued

 Institute a vigorous program of education and training  Push the other 13 points everyday Chapter 3: Quality Management 30

Joseph Juran

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Joseph Juran



Quality Control Handbook

(1951)  Quality Trilogy  Quality Planning  Quality Control  Quality Improvement  Need to place more emphasis on planning and improvement Chapter 3: Quality Management 32

Joseph Juran

continued

 1.

Organizations move through 4 phases Minimize prevention and appraisal costs – results in increased external failure costs Increase appraisal costs – finds defects sooner and raises internal costs 3.

Process control introduced increasing appraisal costs but lowering internal and external failure costs Prevention costs increased in effort to lower total quality costs Chapter 3: Quality Management 33

Phillip Crosby

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Philip B. Crosby

 Quality is conformance to requirements, not elegance  Better to produce item right the first time than to try to inspect quality in 

Quality at the source

- responsibility shifted from quality control department to workers Chapter 3: Quality Management 35

Total Quality Management (TQM)

 Quality problems do not exist, rather organizations have functional problems  Zero defects only meaningful performance standard  Cost of quality the only performance measure Chapter 3: Quality Management 36

Economic Control of Quality of Manufactured Product (1931)

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History of TQM

 Dr. Shewart began using statistical control at the Bell Institute in 1930s  Military standards developed in 1950s  After World War II, Japanese Union of Scientist and Engineers began consulting with Deming  Deming Prize introduced in Japan in 1950 Chapter 3: Quality Management 38

History of TQM

continued

 Juran writes “Total Quality Control” 1951  Juran makes first trip to Japan in 1954  “Quality” Japan’s national slogan in 1956  First quality circles created in 1957  10,000 quality circles by 1966  100,000 quality circles by 1977  First U.S. quality circle 1974 Chapter 3: Quality Management 39

Five Steps in TQM

 Determine what customers want  Develop products and services  Develop production system  Monitor the system  Include customers and suppliers Chapter 3: Quality Management 40

New Responsibilities of Quality Control Department

 Training employees how to control quality  Conducting random quality audits  Consulting on quality problems  Determining cost of quality  Helping implement quality control ideas  Overseeing final test of finished goods Chapter 3: Quality Management 41

Quality Circles

 Focus on all problems facing workers  Composed of natural work groups  Not limited to shop employees  Usually spend couple hours per week on company time analyzing problems Chapter 3: Quality Management 42

Quality Tools

 Process analysis  Runs chart  Control chart  Pareto chart  Histogram  Scatter diagram  Fishbone chart  Presentation skills  Analysis skills  Brainstorming Chapter 3: Quality Management 43

Tools for Quality Control

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Tools for Quality Control

continued

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Insufficient Time Spent Covering Curriculum

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Taguchi Methods



Design for Manufacturability (DFM)

 Procedure for statistical testing to determine best combination of product and transformation system design that will make output relatively independent of normal fluctuations in the production system Chapter 3: Quality Management 47

Quality Function Deployment (QFD)

 Tools for helping translate customer desires directly into product service attributes.

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Benchmarking

Comparing an organization’s performance to performance of other organizations.

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Purposes for Benchmarking

 Comparing an organization’s performance to the best organization’s performance  Comparing an organization’s business processes with similar processes  Comparing products and services  Identifying best practices to implement  Projecting trends Chapter 3: Quality Management 50

Steps in Benchmarking

 Preparing for the study  obtaining top management support  Collecting data  published data  original research  Using what was learned to improve organizational performance Chapter 3: Quality Management 51

Benchmarking Goals

 Learning from experiences of others  Determining how organization is performing relative to the best  Helping to prioritize improvement efforts  developing stretch goals  overcoming complacency within organization Chapter 3: Quality Management 52

Quality in Services

 Measuring is difficult  Training in standard procedures often used to improve quality  One way to measure quality of services is to use customer satisfaction surveys  J.D. Power and Associates uses surveys to rate domestic airlines, hotel chains, and rental car companies.

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Rating the Performance of Domestic Airlines

 On-time performance (25%)  Airport check-in (11%)  Courtesy of flight attendants (11%)  Seating comfort (11%) Chapter 3: Quality Management 54

Service Defections

 Organizations should monitor customer defections  feedback from defecting customers can be used to identify problem areas  can determine what is needed to win them back  changes in defection rate can be used as early warning signal Chapter 3: Quality Management 55

Quality Awards/Certifications

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Deming Prize Criteria

 Policies and objectives  Operation of the organization  Education  Information Management  Analysis    Standardization Control  Quality assurance  Results Future plans Chapter 3: Quality Management 57