QUALITY PLANNING

1. QUALITY PLANNING By Zaipul AnwarBusiness & Advanced Technology Centre,Universiti Teknologi Malaysia

2. QUALITY PLANNING • What Is Quality Planning? Quality planning is the activity of • determining customer needs and • developing the products and processes required to meet those needs

3. QUALITY PLANNING • For managers to provide this leadership requires that they • Understand how quality planning is being done • Understand how quality planning should be done • Provide the needed infrastructure and resources The leadership for change must come from the managers

4. QUALITY PLANNING • MULTIPLE LEVELS OF QUALITY PLANNING • The worker level. • The departmental level. • The multifunctional level • This level is concerned with broad processes, such as new product development, recruitment, purchasing, and billing. Such processes thread their way through multiple company functions • The corporate or divisional level

5. OUR ROLE Customer Processor Supplier OUR PROCESS (ES) Our Customer Our Supplier Our Product (s) Our Inputs QUALITY PLANNING

6. The Quality Planning diagram • To illustrate, the company is a processor team. In its role as a customerit receives such inputs as • Information concerning client needs, competitive products, and government regulations • Money from sales and investors • Purchased goods and services • Feedback from customers

7. The Quality Planning diagram • In its role as a processor, the company converts these and other inputs into products such as sales contracts, purchase orders, saleable goods and services, invoices, and reports of many kinds

8. The Quality Planning diagram • In its role as supplier, the company provides clients with goods services, and invoices, and provides suppliers with purchase orders, payments, and feedback. Information is provided to all

9. Existing Product and Process Identify Customers List of Customers Discover Customers’ Needs List of Customers’ Needs (in their language) THE QUALITY PLANNING ROAD MAP Translate APPLY MEASUREMENT Customers’ Needs (In our language) Develop Product Product Features Develop Process Process Features (process ready to produce) Transfer to Operations

10. Existing Product and Process INPUT PROCESS Identify Customers OUTPUT List of Customers Input-output diagram for identifying customers QUALITY PLANNING • The input is the subject matter of the planning—the product (or process) under consideration • The process consists of the activities conducted to discover who is affected by the product • The output is a list of those who are affected—the customers

11. Flow Charting B. Micro-level Flow Charting A. Macro-level Flow Charting • Source: AT&T Network Operations Group • Provides understanding of the whole • Identifies customers previously neglected • Identifies opportunities for improvement

12. 100 Useful Many Percent Vital Few 0 Sales Customers Pareto analysis of customers and sales volume • Use of the Pareto principle • A relative few (“vital few”), each of whom is of great importance to us. • A relatively large number of customers, each of whom is only of modest importance to us (the “useful many”)

13. Use of the Pareto principle - example • For example, two types of clients book hotel rooms: • Travellers who arrive one by one at random • Planners of meetings and conventions who book blocks of rooms far in advance • The planners of meetings and conventions constitute the vital-few customers. These planners receive special attention from the hotel. The travellers are the useful many, and they receive standardised attention

14. Key Interfaces BUSINESSEXAMPLE OF KEY INTERFACE Banking Bank teller and depositorRestaurant Waiter and dinerHotel Reception clerk and guestRetailing Salesperson and shopperTelephone Operator and subscriber

15. A Customer Is a Cast of Characters Example: Those who sell supplies to hospitals soon learn that their customers include the hospital administrator, the purchasing director, the quality director, various heads of specialized departments (e.g., pharmacy, X-ray, histology, and cardiology), and various professionals (e.g., physicians, surgeons, and nurses). All have needs, and all have some degree of influence on what is to be bought, and from whom

16. A Customer Is a Cast of Characters Internal Customers • Internal customers include the managers of the affected departments. Their influence on quality is considerable. • Internal customers also include the work force. Individually, they are among the useful many. Collectively, they are one of the vital few

17. A Customer Is a Cast of Characters Consumers • Consumers are a vital category of useful-many customers. Their limited technological literacy forces them to rely heavily on fallible, biased human sensing in making their decisions about which products to buy. They discover the technological adequacy of the product later, through subsequent usage. The results of that usage are then influential regarding repeat purchases.

18. A Customer Is a Cast of Characters Consumers • Suppliers face these realities in various ways: 1. Accept some consumer perceptions, bias and all, and then design products and practices to respond to those consumer perceptions. 2. Try to change consumer perceptions by such methods as providing demonstrations or opportunities for trial use of products. 3. Publish technological data and propaganda to stimulate changes in perceptions.

19. Classification Based on Use • Processors. They use a product as inputs to their process. They then perform additional processing after which they sell the resulting product to their customers. In consequence, the initial product affects multiple levels of customers. • Merchants. They buy a product for resale. As part of the resale they may perform some processing along with breaking bulk and repackaging. As with the processors, the initial product affects multiple levels of customers: the merchant, the merchant’s clients, and so on through the distribution chain. • Ultimate users. They are the final destination of the product. In some product lines there is a market for used products, so that there are multiple tiers of ultimate users. • The public. Members of the public may be affected by a company even though they do not buy its products. The most obvious impacts relate to product safety or to damage to the environment. There are other impacts as well.

20. What role should managers play at each step of the planning process? What role should managers play with respect to the quality planning process generally? • auditing of the quality-planning process • (the quality-planning process generally, specific elements of the quality-planning process) • managers should assure that the methods in use for identifying customers are able to provide the quality planners with the essential customer base

21. Existing Product and Process Identify Customers List of Customers Discover Customers’ Needs List of Customers’ Needs (in their language) THE QUALITY PLANNING ROAD MAP Translate APPLY MEASUREMENT Customers’ Needs (In our language) Develop Product Product Features Develop Process Process Features (process ready to produce) Transfer to Operations

22. Input-output diagram for identifying customers’ needs • Discovery of customers’ needs is the second step on the quality-planning road map List of Customers INPUT PROCESS OUTPUT Discover Customers’ Needs Customers’ Needs (in their language)

23. Types of customers’ needs • Stated Needs and Real Needs • Perceived Needs • Cultural Needs • Needs Traceable to Unintended Use

24. Methods for Discovering Customers’ Needs • Be a Customer • Communicate with Customers • Market Research • Simulate Customers’ Use Customers’ Needs Are a Moving Target

25. A ROLE FOR MANAGERS • Visits with key customers • Review of reports on market researches, sales, customer service, product dissatisfactions, etc. • Attendance at industry conferences and shows

26. Existing Product and Process Identify Customers List of Customers Discover Customers’ Needs List of Customers’ Needs (in their language) THE QUALITY PLANNING ROAD MAP Translate APPLY MEASUREMENT Customers’ Needs (In our language) Develop Product Product Features Develop Process Process Features (process ready to produce) Transfer to Operations

27. Customers’ Needs (in their language) INPUT PROCESS OUTPUT Translate Customers’ Needs (in our language) Input-output diagram for translation Customer needs may be stated in any of several languages: 1. The customer’s language 2. The producer or supplier’s (“our”) language 3. A common language

28. Common languages in the company Upper Management: Language of Money Middle Management: Must be Bilingual Lower Management and Non-supervisors: Language of Things

29. A Role for Managers • Managers should accelerate this evolution by creating project teams whose missions are directed at establishing the needed glossaries, standardisation, and measurement.

30. NEEDS TRANSLATION NEEDS TRANSLATION Tertiary Secondary Low purchase price Warranty coverage Length of Warranty Spreadsheet: Customer needs

31. Existing Product and Process Identify Customers List of Customers Discover Customers’ Needs List of Customers’ Needs (in their language) THE QUALITY PLANNING ROAD MAP Translate APPLY MEASUREMENT Customers’ Needs (In our language) Develop Product Product Features Develop Process Process Features (process ready to produce) Transfer to Operations

32. Customers’ Needs (in units of measure) INPUT PROCESS OUTPUT Develop Product Product Features Input-output diagram for product development Product development is the activity of determining the product features that respond to customer needs

33. The spiral of progress in quality FEEDBACK MAINTENANCE USE RETAIL WHOLESALE

34. The following table lists some of the products, along with who the suppliers are and who the principal customers are

35. Product Features: The Criteria • Meets the needs of our customers. “Needs” here, means all customers’ needs: stated, perceived, real, and cultural. • Meets our needs as a supplier including the needs of our internal customers. • Meets competition. The fact that a product meets customer needs does not assure that customers will buy it; a competitor’s product may be better, or give better value. Hence, meeting competition is an important criterion for product developers. • Minimises the combined costs. Customers and suppliers incur costs when they use or supply the product, and each tries to keep their respective costs to a minimum. However, the true optimum as viewed by society is to minimize the combined costs

36. Disciplines for determining product features include the quality-oriented disciplines • Models and data systems for evaluating and predicting product reliability and maintainability • Process-capability studies for evaluating and predicting producibility • Experiments for discovering the optimum result attainable from multiple converging variables • Spreadsheets for assembling numerous interrelated data into condensed, easy-to-grasp forms • Methods for evaluating cost of poor quality • Methods for guarding against human error • Decision trees, flow diagrams, and still other aids to quality analysis and decision making

37. Product Design • An essential part of product development (i.e., providing the product features required to meet customer needs) is product design. As used here, product design is the activity of defining the product features required meeting customer needs. • Product design is a creative process based largely on technological or functional expertise. The designers are design engineers, systems analysts, and still other planners. The end results of product design are specifications, drawings, and procedures

38. Product Design • The Pros and Cons of Structure • Cons - It is a lot of extra work to prepare the spreadsheets (and other elements) of the structured approach • Pros - • It is an aid to human effectiveness, supplementing human memory and helping to guard against human error • It is an aid to participation in quality planning; that is, completing the spreadsheets requires inputs from the affected departments

39. Japan Plan Japan Execute U.S. Plan U.S. Execute Time Brief planning and lengthy execution versus lengthy planning and brief execution

40. During the process of launching new products, use is made of three generic forms of spread-sheet

41. Example of spreadsheet showing standardised symbols

42. Qualitative customer needs and quantitative product

43. Existing Product and Process Identify Customers List of Customers Discover Customers’ Needs List of Customers’ Needs (in their language) THE QUALITY PLANNING ROAD MAP Translate APPLY MEASUREMENT Customers’ Needs (In our language) Develop Product Product Features Develop Process Process Features (process ready to produce) Transfer to Operations

44. Product Goal INPUT PROCESS OUTPUT Develop Process Process Features Input-output diagram for process development A process is “a systematic series of actions directed to the achievement of a goal.” As used here, the term includes all functions, non-manufacturing as well as manufacturing. It also includes the human forces as well as the physical facilities

45. Process Development • Process development is a generic term that includes the activities of product design review, choice of process, and process design, provision of facilities, and provision of software (methods, procedures, cautions). • Our emphasis is on process design, which is defined as follows: the activity of defining the specific means to be used by the operating forces for meeting the product goals. • This definition covers (a) the physical equipment to be provided; (b) the associated software (the brain and nervous system of the equipment); and (c) information on how to operate, control, and maintain the equipment

46. Process Capability • In the case of process development a major aid for prediction is “process capability”: the inherent ability of a process to carry out its intended mission • Example - Engineers who design goods are aided by tables that set out the properties of materials and the failure rates of components

47. Process Design • The end result of process design is a definition of the means to be used by the operating forces for meeting the product goals. • To arrive at this definition the process designers require various inputs, especially knowledge of the product quality goals, of the operating conditions, and of the capability of alternative processes

48. Supplier Dept. In-House Dept. Sub- Assembly Dept. Final Assembly To Test and Usage Process Design Most major processes consist of multiple operations (also called steps, tasks, unit processes, etc.). Examples of such operations are opening the mail and heat treating. Such operations are linked together in various ways, mainly by a combination of a procession and an assembly tree

49. Spreadsheet: Product features and process

50. Existing Product and Process Identify Customers List of Customers Discover Customers’ Needs List of Customers’ Needs (in their language) THE QUALITY PLANNING ROAD MAP Translate APPLY MEASUREMENT Customers’ Needs (In our language) Develop Product Product Features Develop Process Process Features (process ready to produce) Transfer to Operations