Quality Management BUS 424

1. Quality Management BUS 424 Second semester 2013

2. Instructor: Dr. Mohammed A. Nasseef • Email: manassief@kau.edu.sa • Website: www.nasseef.info Contact Number: 0540627773 ( SMS and whatsApp) note: mobile number is for urgent calls, please if you call consider a appropriate time.

3. Grading Policy • Midterms 20 • One Team Project Written Report 15 (team members all receive same grade) • One Team Project Presentation 15 • Class Participation 10 • Final Exam 40 • TOTAL 100

4. Quality Evolution

5. Evolution of Quality I • Finding mistakes/errors • External assessment/control • Culture of mistrust • Inspecting • the past

6. Evolution of Quality II • avoid mistakes • personal responsibility / ownership • culture of trust • Looking into • the past and • plan for the future

7. Evolution of Quality III •  Systematic fulfillment of customer requirements

8. Evolution of Quality IV  Participation of all members of an organization

9. Quality is Everywhere people deal with the issue of quality continually in their daily lives We all apply a number of criteria when making a purchase To understand quality as a consumer-driven concept How will you judge the quality of the restaurant? Service Response time Food preparation Atmosphere Price Selection

10. What is Quality • Fred Smith. CEO of FedEx defines quality as “ performance to the standard expected by customer “ • Boeing “ providing our customer with products and services that consistently meet their needs and expectations”

11. Is …So Quality • Although there is no universally accepted definition of quality. There are some similarity among among quality definition: • Quality involves meeting or exceeding customer expectations. • Quality applies to products, services, people, processes, and environments. • Quality is ever changing state (i.e., what consider quality today may not good enough to be considered quality tomorrow).

12. W. Edwards Deming • Born on October 14, 1900 • Was an American statistician, professor, author, lecturer, and consultant • Widely credited with improving production in the United States during the Cold War • Best known for work in Japan • Taught top management (1950 onwards)

13. W. Edwards Deming Quality keys: • Understanding customer needs • Process improvement • Statistical analysis • Expertise of workers • PDCA cycle

14. DEMING 14 POINTS • Create constancy of purpose • Adopt a new philosophy • Stop dependence on inspection • Don’t focus on price tag • Improve constantly & forever

15. DEMING 14 POINTS • Institute training • Institute leadership • Drive out fear • Break down barriers • Eliminate slogans, exhortations

16. DEMING 14 POINTS • Eliminate quotas; use leadership • Remove barriers to workmanship • strong education program • Involve everybody

17. The Deming Cycle • The Deming cycle, or PDSA cycle, is a continuous quality improvement model consisting of a logical sequence of four repetitive steps for continuous improvement and learning: Plan, Do, Study (Check) and Act. • It is also known as the Deming circle/cycle/wheel, Shewhartcycle, control circle/cycle, or plan–do–study–act (PDSA)

18. The Deming Cycle • W. Edwards Deming in the 1950's proposed that business processes should be analyzed and measured to identify sources of variations that cause products to deviate from customer requirements. • He recommended that business processes be placed in a continuous feedback loop so that managers can identify and change the parts of the process that need improvements.

19. The Deming Cycle • Example : • At Toyota this is also known as "Building people before building cars.“ •  Toyota and other Lean companies propose that an engaged, problem solving workforce, using PDCA, is better able to innovate and stay ahead of the competition through rigorous problem solving and the subsequent innovations. This also creates a culture of problem solvers using PDCA and creating a culture of critical thinkers.

20. The Deming Cycle • PLAN establish the objectives and processes necessary to deliver results in accordance with the expected output (the target or goals). By establishing output expectations, the completeness and accuracy of the specification is also a part of the targeted improvement. When possible start on a small scale to test possible effects. • DO Implement the plan, execute the process, make the product. Collect data for charting and analysis in the following "CHECK" and "ACT" steps.

21. The Deming Cycle • CHECK Study the actual results (measured and collected in "DO" above) and compare against the expected results (targets or goals from the "PLAN") to discover any differences. Look for deviation in implementation from the plan and also look for the appropriateness and completeness of the plan to enable the execution, i.e., "Do". Charting data can make this much easier to see trends over several PDCA cycles and in order to convert the collected data into information. Information is what you need for the next step "ACT".

22. The Deming Cycle • ACT Request corrective actions on significant differences between actual and planned results. Analyze the differences to determine their root causes. Determine where to apply changes that will include improvement of the process or product. When a pass through these four steps does not result in the need to improve, the scope to which PDCA is applied may be refined to plan and improve with more detail in the next iteration of the cycle, or attention needs to be placed in a different stage of the process.

23. Joseph M. Juran Quality keys: • Features that satisfy customers • Freedom from deficiencies • Juran Trilogy® • Quality planning • Quality control • Quality improvement

24. Joseph M. Juran • Dr. Juran was born on December 24, 1904 in Braila, Romania. He moved to the United States in 1912 at the age of 8. • Juran holds degrees in both engineering and law. The emperor of Japan awarded him the Order of the Sacred Treasure medal, in recognition of his efforts to develop quality In  Japan. • Juan's teaching and consulting career spanned more than seventy years, known as one of the foremost experts on quality in the world.

25. Joseph M. Juran Juran is best known for the following contributions to the quality philosophy: • Juran's Three Basic Steps to Progress • Juran's Ten Steps to Quality Improvement •  The Juran Trilogy

26. Juran's Three Basic Steps to Progress • Juran's Three Basic Steps to Progress are broad steps    to achieve world-class quality • I. Achieve structured improvements on  continual basis combined with dedication and a sense of urgency. • II. Establish an extensive training program. • III. Establish commitment and leadership on the part of higher management

27. Juran's Ten Steps to Quality  Improvement 1.Build awareness of both the need for  improvement and  opportunities for  improvement 2. Set goals for improvement. 3.Organize to meet the goals that have been set. 4.Provide training. 5.Implement projects aimed at solving problems. 6.Report progress.

28. Juran's Ten Steps to Quality  Improvement 7.Give recognition. 8.Communicate results. 9.Keep score. 10.Maintain momentum by building improvement into the company's  regular systems

29. JURAN TRILOGY

30. JURAN TRILOGY • Juran's prescriptions focus on three major aspects of quality called the Quality  Trilogy. • Quality planning ­ the process for preparing to met quality goals, • Quality control ­ the process for meeting quality goals during  operations, and • Quality improvement ­ the process for breaking through to unprecedented levels of performance

31. JURAN TRILOGY • Quality Planning: Quality planning involves developing the products, systems, and process needed to meet or exceed customer  expectations.  The following steps are required

32. JURAN TRILOGY Quality Planning 1. Determine who the customers are. 2. Identify customers' needs. 3.Develop products with features that respond  to customer needs. 4.Develop systems and processes that allow the organization to produce these features. 5.Deploy the plans to operational levels

33. JURAN TRILOGY Quality Control • Assess actual quality performance. 2. Compare performance with goals. 3.Act on differences between performance and goals

34. JURAN TRILOGY Quality Improvement 1. Develop the infrastructure necessary to make annual quality improvements. • Identify specific areas in need of improvement, and implement improvement projects. • Establisha project team with responsibility for  completing each  improvement project. • Provide teams with what they need to be able to diagnose problems to determine root causes develop solutions, and establish control that will maintain gains made

35. Announcement • Midterm exam 12 March 2013 • http://manassief.kau.edu.sa • Group project • Baldrige Award Recipients • http://www.baldrige.nist.gov/Contacts_Profiles.htm

37. FUNDAMENTALS OF TOTAL QUALITY  • Total quality­ a comprehensive, organization-wide effort to improve the quality of products and service applies not only to large manufacturers, but to small companies alike.  • All organization large and small, manufacturing and service, profit and not-for-profit can benefit from applying the principles of total quality.

38. Principles of Total Quality • Total Quality (TQ) is a people focused management system  that aims at continual increase in customer satisfaction at continually lower real cost.  • TQ is a total system approach (not a separate area or program) and an integral part of high level strategy; it works horizontally across functions and  departments, involves all employees, top to bottom, and extends backward and forward to include the supply chain and the customer chain.  TQ stresses learning and adaptation to continual change as  keys  to organizational success

39. Principles of Total Quality • The foundation of total quality is philosophical: TQ includes systems, methods, and tools. The systems • permit change; the philosophy stays the same. TQ is anchored in values that stress the dignity of the • individual and the power of community action

40. Principles of Total Quality • There probably are as many different  approaches to TQ as there are businesses.  However, most share  basic elements:  (1) customer focus, (2) a process orientation,  (3) continuous improvement and learning,  (4) empowerment and teamwork,  (5) management by fact, and  (6) leadership and strategic planning.

41. Leadership for Quality • Leadership is fundamental to management and  organizational  behavior and is on just about everyone's short list of basics for organizational success.  • Thus it is not surprising that leadership plays crucial role in the total quality organization. Virtually every article and  book written about quality emphasizes leadership. • is the first category in the Malcolm Baldrige  National Quality Award and is recognized as the "driver“ of successful quality systems.

42. Leadership for Quality • Leaders establish unity of purpose and direction of the organization. • They should create and maintain the internal environment in which people  can become fully involved in achieving the  organization's objectives. • Leaders communicate a vision that turns self-interest into commitment to the job

43. Leadership VS. Manager

44. Leadership VS. Manager

45. The roles of a Quality Leader • Underlying the concept of quality leadership  are some clear imperatives for managers who  aspire to quality leadership.  • First, they must establish a vision.  • Second, they must live the values.  • Third, they must lead  the improvement efforts.

46. Establish a Vision • A vision is a vivid concept of what an organization could be •  It is a dream, both in the sense of being desirable and in the sense of being a long way from the current reality,  but it is not an "impossible dream."  A vision should be clear and exciting to an organization's employees. • It should be linked to customers' needs and convey a general strategy for achieving the mission.

47. Live the Values • All of the vision and values in the world are worthless if the organization is not continuously making  strides  to improve its performance in the eyes of customers • Visions of world-class quality and competitiveness can only be achieved if an organization keeps finding ways to do things a little better and a little faster.  Leaders must be at the center of these efforts

48. Lead Continuous Improvement • Manager's actions can symbolize their commitment to quality-oriented values in many concrete ways. • For example, they can attend training programs on various aspects of quality, instead of just sending • others.  • They can practice continuous improvement in  processes  that they control, such as strategic planning and capital budgeting.  Perhaps most importantly, they can provide adequate funding for quality efforts. So that TQ will not be the "poor cousin" to other business issues.

49. EMPOWERMENT FOR TQ • Empowerment means giving someone power-granting the authority to do whatever is  necessary to satisfy customers, and trusting employees to make the right choices without  waiting for management approval.  • By empowering employees, organizations  drive decision making down to its lowest possible level

50. EMPOWERMENT FOR TQ •  Empowerment allows organizations to flatten their organizational structure because fewer managers are needed to "direct and control“  employees •  It represents a high degree of involvement in which employees make decisions themselves  and are responsible for their outcomes