What is Quality?

1. What is Quality? • Descriptors for quality ? • Performance • Aesthetics • Special Features • Safety • Reliability • Durability • Perceived Quality • Service After Sale • What does it mean to you as a producer?, as a consumer? • Quality can be more than improving cost and throughput.

2. Definition of Quality • Quality as Excellence • Relative to a standard such as a competitor • Level of quality can be ever changing • Quality as Conformance to Specification • Emphasis is on manufacturing quality • Number of defects relative to design • Does not guarantee it meets customer needs • Quality as Fitness for Use • Includes engineering and marketing in the quality equation • High quality is when the product meets the customers expressed and • intended needs • Quality as Value for the Price • Level of quality is relative not only to similar products but to substitutes • Part of strategic quality plan

3. Determinants of Quality • How do we determine quality? • Design • How well it conforms to the design • Ease of use • Service after delivery • Does it do what I expect it to do. • Does it do it when I want it to. • Is it available when I want it. • Is it at the right price. What are the advantages of quality?

4. Cost of Quality • Can you quantify how much the lack of quality is costing you? • Do you know which operations have the highest cost due to lack of • quality? • Internal and external • How do you measure the costs of quality? • Number of defects • $ spent to fix rework and scrap • $ lost due to missed due dates • COQ can provide justification for improvement initiatives. • Time and money are limited so need to apply where it does the most • good • True costs are typically hard to capture.

5. Quality Metrics • Product • Reliability: Mean Time Between Failure • Durability: under what conditions is the product design to operate • Serviceability:Can it be repaired, at what cost, where can it be repaired • Service • Reliability: Can the work be performed correctly • Tangibles: What impression does the customer have. • Responsiveness: Prompt service • Assurance: Does the customer feel you know what you are doing • Empathy: The customer is not a number

6. Symbols of Quality • ISO 9000 quality standard • Documentation of quality procedures and on-site assessment • Everyone is working to a process • Corrective and preventive actions • ISO 14000 • Assess a company’s performance in terms of environmental • responsibility • Management systems, Operations, Environmental systems measures • The Deming Prize: focus on statistical quality control • Malcolm Baldridge National Quality Award • Provides a means to assess a firms individual performance • Compare their organization with others • Focus on customer satisfaction

7. Quality in Historical Perspective • Inspection • Sampling • 100% inspection • What are some of the Pros and Cons? • Statistical Process Control • Looking for Trends • X charts, R charts, C charts • Operator evaluation • Quality Assurance • Quality is the responsibility of everyone ( not just the Quality group) • Everyone is to look for changes within their work. • Strategic Quality Management’ • Previous methods looked at quality as reducing costs. • Recognizes the competitive advantage of quality

8. Quality Management Leadership • W. Edward Deming • Focused on statistical process control • Found initial success in Japan during the 1950’s • Professed that rewards for improving quality often are decreases in costs and • improvement in throughput. • Less scrap • More on-time deliveries • Higher productivity • Joseph M. Juran • Focused on Total Quality Control • Based on: Quality Planning, Quality Control, Quality Improvement • Philip Crosby • Four Absolutes of Quality Management • What is quality ? • What system do we need to institute so that we offer a quality product or service. • Which performance standard should we use to measure the quality of • our performance? • Which system is appropriate for measuring the quality of what we do?

9. Total Quality Management • Def: An organizational approach to total customer satisfaction and a continuous process of improvement. • TQM is: • A philosophy and a set of quiding principles and tasks for improving • quality • A way to manage an organization based on “Total Customer” satisfaction • and a continuous process of improvement • The way we would do things if we had not thought of a worse way. • TQM Includes: • 1. Recognizes quality as a strategic issue ( Strategic Quality Planning) • 2. Clear focus on customer satisfaction • Includes both internal and external customers • 3. Continuous Improvement of Key Processes • Given that business and the market are dynamic • Forces on to have a written process in place

10. Total Quality Management (con’t) • TQM Includes: • 4. Effective Collection and analysis of information • By understanding your processes and goals information collection becomes easier. • Do not collect data that is only easy but that which can be used in decision making. • Analyze data only to the level of decision making. • 5. Effective design of products and services. • Requires that quality go beyond manufacturing • Intended use • Customer needs • Design for Manufacturing • 6. Effective Leadership • Quality has to be a top down process • Otherwise it is a Fad. • Read TQM Implementation Process (P 280-281)

11. Barriers to TQM • 1. Assuming that implementing total quality will quickly and completely end all the • organizations ills. • 2. Top management’s failing to provide a demonstration of it's commitment to the • quality effort. • Middle management's failing to recognize its new leadership roles and its • feeling threatened by a perceived loss of power to employees. • 4. Becoming so obsessive about internal quality activities that critical performance • issues, such as financial performance and external customers needs are • overlooked. • 5. Creating hundreds of improvement teams and failing to provide resources, • direction, training , and encouragement to help ensure success. • 6. Adopting an off-the-shelf quality program without modifying it to match the • company’s unique characteristics. • 7. Failing to link quality goals to financial returns and compensation.

12. Barriers to TQM • 1. Assuming that implementing total quality will quickly and completely end all the • organizations ills. • 2. Top management’s failing to provide a demonstration of it's commitment to the • quality effort. • Middle management's failing to recognize its new leadership roles and its • feeling threatened by a perceived loss of power to employees. • 4. Becoming so obsessive about internal quality activities that critical performance • issues, such as financial performance and external customers needs are • overlooked. • 5. Creating hundreds of improvement teams and failing to provide resources, • direction, training , and encouragement to help ensure success. • 6. Adopting an off-the-shelf quality program without modifying it to match the • company’s unique characteristics. • 7. Failing to link quality goals to financial returns and compensation.

13. Origins of Six Sigma Motorola – 1987 Allied Signal – 1990 GE - 1995 • Benefits • Generates sustained success • Sets a performance goal for everyone • Enhances value to the customer • Accelerates the rate of improvement • Promotes learning and Cross-pollination 300,000 policies 99% - 3000 6 Sigma - 1 • Tools • Process design • Analysis of variance • Balanced scorecard • Voice of customer • Creative thinking • Design of experiement • Process Management • SPC • Continuous Improvement

14. Six Sigma • Themes • Genuine Focus on the Customer • Survey customers at beginning and end to establish impact • Data- and Fact- Driven management • Decision based on data based performance objectives, not opinion and assumption • Process Focus, Management & Improvement • Developing, understanding and mastering processes are key to success • Proactive Management • Define ambitious goals and review frequently • Boundary-less Collaboration • Learn to make global not local decisions • Understand fit in the big picture to understand impact of decision • Drive for Perfection: Tolerate failure

15. Barriers to TQM • Differences • Customer focus • Failure per million metric (commonality) • Emphasis on training • Continuous improvement • Addresses Non manufacturing • Solutions are not limited to a certain dept

16. Barriers to TQM • 6 sigma is based on a closed loop system • Must id the right metrics • sensitive to the right metrics • mechanism for correction • Deming Model Plan – Do – Check Act • Plan • Review current performance • Gather data • Devise a solution • Plan implementation • Do • Pilot the plan solution • Check • Act

18. Prioritize, Analyze, & implement Improvement Identify Core Processes 1 Define Customer Requirements 2 Measure Current Performance 3 4 Expand & Integrate 5 Six Sigma Road Map Ways to deliver products, services & value to customers Standards based on customer needs Ongoing customer VOC data gathering Captures efficiency of processes Identify hi-potential opportunities Develop solutions based on factual analysis & creative thinking Expand current performance improvement and integrate into other areas of company

19. Six Sigma Improvement Process Define Identify the problem Define requirements Set Goals Measure Validate problem or process Refine problem/goal Measure key steps/ inputs Analyze Develop causal hypotheses Identify “vital few” root causes Validate hypothesis Improve Develop ideas to remove root cause Test solutions Standardize solution/measure results Control Establish standard measures to maintain performance Correct Problems as needed

20. Barriers to TQM