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Introduction to Quality

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Introduction to Quality

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  1. INTRODUCTION TO QUALITY © Operational Excellence Consulting. All rights reserved.

  2. NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg LEARNING OBJECTIVES Gain knowledge on the key concepts and principles of Quality Understand the Total Quality frameworks, methods and tools Identify the challenges and best practices of Total Quality 2 © Operational Excellence Consulting

  3. CONTENTS 02 03 04 05 01 KEY CONCEPTS OF QUALITY QUALITY PHILOSOPHIES & PRINCIPLES QUALITY FRAMEWORKS & MODELS CHALLENGES & BEST PRACTICES QUALITY IMPROVEMENT METHODS & TOOLS 3 © Operational Excellence Consulting

  4. “ Quality is not an act, it is a habit.” ARISTOTLE 4 © Operational Excellence Consulting

  5. COVID-19 VACCINES MIX-UPS & DEFECTS 5 © Operational Excellence Consulting

  6. QUALITY IS NOT A FAD Successful Lean organizations in Japan are built on a strong foundation of quality. 6 © Operational Excellence Consulting

  7. CUSTOMERS HAVE EXPECTATIONS OF QUALITY The customer who receives a defective product is 100% dissatisfied. 7 © Operational Excellence Consulting

  8. TRADITIONAL INSPECTION IS A POOR SUBSTITUTE FOR QUALITY Traditional 100% inspection does not provide 100% defect-free products. 8 © Operational Excellence Consulting

  9. Why does it always seem we have plenty of time to fix our problems, but never enough time to prevent the problems by doing it right the first time? 9 © Operational Excellence Consulting

  10. “ doubles.” Quality is more important than quantity. One home run is much better than two STEVE JOBS 10 © Operational Excellence Consulting

  11. WHY IS QUALITY AN IMPORTANT CONCEPT? To maintain customer satisfaction and loyalty by reducing and eliminating “defects” GREATER PROFITS 11 © Operational Excellence Consulting

  12. MINDSET OF A NON-QUALITY THINKER “Quality is the responsibility of the QA department.” “Quality improvement activities only increase our workload.” “Building quality into the design and manufacturing processes will only increase product cost.” “Zero defect is not possible.” 12 © Operational Excellence Consulting

  13. WHAT IS QUALITY? “A predictable degree of uniformity and dependability, at low cost and suited to the market.” “Fitness for purpose or use.” Joseph M. Juran W. Edwards Deming “Degree to which a set of inherent characteristics fulfils requirements.” “Conformance to requirements.” “Quality is what the customer says it is.” Philip B. Crosby ISO 9000 Armand V. Feigenbaum 13 © Operational Excellence Consulting

  14. WHAT QUALITY IS NOT ● ● ● ● A flavor of the month A machine vision system The job of the QA department Requiring supervisors to constantly “police” the operators ● ● 100 percent inspection ● A rigorous Six Sigma Green Belt certification program An ISO 9000 quality management system ● Another one of those “Extra Curricula Activities” ● Churning out tons of Standard Operating Procedures 14 © Operational Excellence Consulting

  15. QUALITY IN VARIOUS INDUSTRIES AIRLINES HEALTHCARE POSTAL SERVICES § On-time § Correct diagnosis § Fast delivery § Comfortable § Low waiting time § Correct delivery § Low-cost service § Low cost § Cost containment INSURANCE TELCO CONSUMER PRODUCTS Defect-free § Payout on-time § Low outage § Properly made § Fast processing § Low-cost service § Cost effective § Reasonable cost § Customer service § 15 © Operational Excellence Consulting

  16. BENEFITS OF QUALITY IMPROVEMENT Maintain customer satisfaction and loyalty High cost of poor quality (e.g. rework, scrap, warranty claims) Improve company image and reputation Develop a culture of continuous improvement and innovation Build problem-solving skills and improve employee morale Improve productivity and competitiveness 16 © Operational Excellence Consulting

  17. POOR QUALITY COSTS A TYPICAL COMPANY 15-20% OF SALES ANNUALLY We See Only the Tip of the Iceberg Maintenance and service Rejects Warranty claims Visible Rework Additional labor hours Scrap Cost to customer Improvement program costs Expediting Lost customer loyalty Excess inventory Quality engineering and administration Process control Less Visible Vendor control Quality audits Inspection/test (materials, equipment, labor) Longer cycle times 17 © Operational Excellence Consulting

  18. The 1-10-100RULE FOR MANAGING THE COSTS OF QUALITY Prevention Cost 1 10 Correction Cost 100 Failure Cost One dollar spent on prevention will save 10 dollars on correction and 100 dollars on failure costs. 18 © Operational Excellence Consulting Source: Based on Joel E. Ross

  19. TOTAL CUSTOMER SATISFACTION INNOVATION TOTAL CUSTOMER SATISFACTION & LOYALTY SERVICE QUALITY PRODUCT QUALITY Source: Adapted from Alex Trotman, ex-CEO Ford Motor Company 19 © Operational Excellence Consulting

  20. TOWARDS A TOTAL QUALITY CULTURE Tomorrow’s Culture Today’s Culture Quality Principles & Methodologies Organizational Values 20 © Operational Excellence Consulting

  21. QUALITY TRANSFORMATION REQUIRES A CULTURE CHANGE Culture Attitude The way we think Behavior The way we act Work Systems & Processes Quality awareness and improvement 21 © Operational Excellence Consulting

  22. JURAN’S 10 STEPS TO QUALITY IMPROVEMENT Build awareness of both the need for improvement and opportunities for improvement 1 1 6 6 Report progress 2 2 7 7 Set goals for improvement Give recognition 3 3 8 8 Organize to meet goals that have been set Communicate results 4 4 9 9 Provide training Keep score Maintain momentum by building improvement into company’s regular systems 5 5 10 10 Implement projects aimed at solving problems 22 Source: J. M. Juran © Operational Excellence Consulting

  23. THREE LEVELS OF QUALITY DEPLOYMENT QUALITY FOCUS MECHANISMS § Vision & Mission § Quality Policies & Goals § Hoshin Kanri § Products and services Organizational Level § Key products and services § Key business processes § Key inputs § Process Management, Control & Improvement Process Level § Quality Circles § Problem Solving Tools & Technique § Customer requirements § Measurements § Standards Individual Level 23 © Operational Excellence Consulting

  24. QUALITY STARTS WITH EACH AND EVERYONE OF US We ensure that our work is done right first time before passing it to the next process. 24 © Operational Excellence Consulting

  25. QUALITY & PERSONAL VALUES Personal initiative has a positive impact on business success Quality-focused individuals often exceed customer expectations Attitudes can be changed through awareness and effort (e.g., adhering to personal quality standards) Quality begins with personal attitudes 25 © Operational Excellence Consulting

  26. PERSONAL QUALITY STANDARDS 1. On time for meetings 8. Communicate daily with associates 2. Agenda for every meeting 9. Communicate daily with customers 3. Phone: answer in 2 rings 4. Email: respond within 1 day 10. Treat others with respect and dignity 5. Voice mail: cleared same day 11. Honesty in all dealings with others and yourself 6. Briefcase work: within 1 day 7. Organize your workstation for maximum productivity 12. Participate or lead in continuous improvement projects 26 © Operational Excellence Consulting

  27. PDCA QUALITY IMPROVEMENT (PROBLEM SOLVING) PROCESS Select the Theme 1 2 Plan the Schedule 3 Grasp the Present Situation PLAN 4 Establish the Target Analyze the Cause & Identify Corrective Action 5 Implement Corrective Action 6 DO Evaluate the Result 7 CHECK Standardize & Follow-up 8 ACT 27 © Operational Excellence Consulting

  28. CHALLENGES OF TOTAL QUALITY IMPLEMENTATION 1 1 6 6 Lack of data collection, measurement and analysis Lack of management commitment 2 2 7 7 Inability to change organizational culture (behaviors) Lack of empowerment and teamwork 3 3 8 8 Lack of focus on internal and external customers’ needs Lack of management review 4 4 9 9 Not dedicating resources and time to quality efforts Resistance to change 5 5 10 10 Lack of continuous training and education Continuous improvement is not continuous 28 Source: J. M. Juran © Operational Excellence Consulting

  29. “ In the race for quality, there is no finish line.” DAVID KEARNS Former CEO of Xerox 29 © Operational Excellence Consulting

  30. ABOUT OPERATIONAL EXCELLENCE CONSULTING Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. Based in Singapore, the firm’s mission is to create business value for organizations through innovative design and operational excellence management training and consulting solutions. For more information, please visit www.oeconsulting.com.sg © Operational Excellence Consulting

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