Management of Quality

  

Dictionary has many definitions: “Essential characteristic,” “Superior,” etc.

Some definitions that have gained wide acceptance in various organizations: “ Quality is customer satisfaction ,” “ Quality is Fitness for Use.”

Quality is the ability of a product or service to consistently meet or exceed customer expectations.

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 Meeting Customer Requirements. (stated or implied)  Through Totality of Good and Services.

 By Conforming to a specified standards.

 At a given Time or over a period of time.

 At a price a customer can afforded and has willingness to pay.

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 Before Industrial Revolution, skilled craftsmen served both as manufacturers and inspectors, building quality into their products.

 Industrial Revolution changed this basic concept to

interchangeable parts

. Likes of Thomas Jefferson and F. W. Taylor (“scientific management”.

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•

Statistical approaches to quality control

started at Western Electric with the separation of inspection division. Pioneers like

Walter Shewhart

,

George Edwards

,

W. Edwards Deming

and

Joseph M. Juran

were all employees of Western Electric.

• After World War II, under General MacArthur's Japan rebuilding plan,

Deming and Juran went to Japan.

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• Deming and Juran introduced statistical quality control theory to Japanese industry.

• The difference between approaches to quality in USA and Japan: Deming and Juran were able to

convince the top managers the importance of quality.

• After 20 years Market started preferring Japanese products and American companies suffered immensely.

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• America woke up to the quality revolution in early 1980s.

Ford Motor Company consulted Dr. Deming

help transform its operations.

to • (By then, 80-year-old Deming was virtually unknown in USA. Whereas Japanese government had instituted The Deming Prize for Quality in 1950.) • Managers

(TQM).

started to realize that “quality of management” is more important than “management of quality.” Birth of the term

Total Quality Management

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  

Walter Shewart

◦ In 1920s, developed control charts ◦ Introduced the term “ quality assurance”

W. Edwards Deming

◦ Developed courses during World War II to teach statistical quality-control techniques to engineers and executives of companies that were military suppliers ◦

Joseph M. Juran

◦ Followed Deming to Japan in 1954 ◦ After the war, began teaching statistical quality control to Japanese companies Focused on strategic quality planning

  

Armand V. Feigenbaum

◦ In 1951, introduced concepts of total quality control and continuous quality improvement

Philip Crosby

◦ In 1979, emphasized that costs of poor quality far outweigh the cost of preventing poor quality ◦ ◦ ◦ In 1984, defined absolutes of quality management— conformance to requirements, prevention, and “zero defects”

Kaoru Ishikawa

◦ Promoted use of quality circles Developed “fishbone” diagram Emphasized importance of internal customer

      1924 - Statistical process control charts 1930 - Tables for acceptance sampling 1940’s - Statistical sampling techniques 1950’s - Quality assurance/TQC 1960’s - Zero defects 1970’s - Quality assurance in services 9 12

a) Characteristic Technological b) – Strength, Hardness and Surface Finishing Psychological c) d) – Taste, Status and Beauty Time Oriented – Reliability, Maintainability and Availability Contractual e) – Contractual Provision Ethical – Courtesy and Honesty 9 13

• • • • Quality of design – Quality of Market Research – Quality of Concept – Quality of specifications Quality of Conformance – – Technology Manpower – Management Availability – – Reliability Maintainability – Logistical Support Service Example in Quality of Design in Car Industry Size Appearance Comfort Fuel Economy Comfort Material Used 9 14

• • • • • • • •

Performance:

main characteristics of the product/service

Conformance

: how well product/service conforms to customer’s expectations.

Aesthetics:

appearance, feel, smell, taste

Special Features:

extra characteristics

Reliability:

consistent

Durability:

Product life

Perceived Quality:

indirect evaluation ( reputation)

Serviceability:

after sale service PROPOSED BY PROF. DAVID GARDIN

FROM Reactive Detection & Inspection Acceptable Quality Level Blame Placing Cost or Quality Quality Cost More Meet the Specification TO Proactive Prevention Zero Defect Problem Solving Cost & Quality Quality Cost Less Continuous Improvement 9 16

FROM Quality Department has only quality Problem TO R&D, Purchasing, Marketing, Operations etc have quality problem Part of Management Team Subordinate to Management team Quality is Technical Quality is Managerial 9 17

       Convenience Reliability Responsiveness Time Assurance Courtesy Tangibles 9 18

Dimension 1. Convenience 2. Reliability 3. Responsiveness 4. Time 5. Assurance 6. Courtesy 7. Tangibles Examples Was the service center conveniently located?

Was the problem fixed?

Were customer service personnel willing and able to answer questions?

How long did the customer wait?

Did the customer service personnel seem knowledgeable about the repair?

Were customer service personnel and the cashierfriendly and courteous?

Were the facilities clean, personnel neat?

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    Loss of business:

buying Customer quietly stops

Liability:

Due to damages or injuries

Productivity:

Rework or scrap (more input)

Costs 9 20



Enhance reputation

     

Increase market share Greater customer loyalty Lower liability Cost Fewer complains Lower production cost Higher profits

        Top management Design Procurement Production/operations Quality assurance Packaging and shipping Marketing and sales Customer service 9 22



Failure Costs defective services.

- costs incurred by parts/products or faulty



Internal Failure Costs

◦ Costs incurred to fix problems that are detected before the product/service is delivered to the customer.



External Failure Costs

◦ All costs incurred to fix problems that are detected after the product/service is delivered to the customer.

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 ◦ Appraisal Costs Costs of activities designed to ensure quality or uncover defects  ◦ Prevention Costs All TQ training, TQ planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring 9 24

◦ ◦ ◦ ◦ ◦ ◦ Upon Received of Raw Materials Before Costly & irreversible Operations Before work that could hide defect Upon Completion of a product Before stocking high value items Before shipment to customers 9 25

END OF PART – 1

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