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1 - Chapter 1

Companies must continually improve quality to compete successfully. There are two aspects of quality: quality of design which reflects the type of product or service provided based on customer needs, and quality of conformance which is how well the product meets design requirements and specifications. Total Quality Management (TQM) focuses on excelling on all dimensions that are important to customers. Key TQM principles include making quality everyone's responsibility, focusing on continuous improvement and problem solving through cooperation. The PDCA (Plan-Do-Check-Act) cycle is used for continuous improvement. Six Sigma further develops TQM ideas by focusing on financial impact. Deming emphasized statistical process control (SPC) and designed experiments to reduce variation and improve quality.

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70 views

1 - Chapter 1

Companies must continually improve quality to compete successfully. There are two aspects of quality: quality of design which reflects the type of product or service provided based on customer needs, and quality of conformance which is how well the product meets design requirements and specifications. Total Quality Management (TQM) focuses on excelling on all dimensions that are important to customers. Key TQM principles include making quality everyone's responsibility, focusing on continuous improvement and problem solving through cooperation. The PDCA (Plan-Do-Check-Act) cycle is used for continuous improvement. Six Sigma further develops TQM ideas by focusing on financial impact. Deming emphasized statistical process control (SPC) and designed experiments to reduce variation and improve quality.

Uploaded by

Srilekhya Meda
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 26

CHAPTER 1

Quality Improvement in the


Modern Business Environment

Companies must continually


improve the quality of their
products and services in order to
compete successfully in the
marketplace.
2

Quality of Design
Reflects decision about what type of
product or service to provide, e.g.,
1. paper cup vs. crystal goblet,
2. pickup truck vs. luxury sedan.
It is a marketing decision from the
customer perspective.
Box, G. E. P. and Woodall, W. H. (2012), Innovation,
Quality Engineering, and Statistics, Quality
Engineering 24, 20-29.
3

Quality of Conformance
Reflects how well the product meets
requirements and specifications required
by the design.
Must be ensured during the design of the
product and process and during
production.
4

Total Quality Management


(TQM)
... managing the entire
organization so that it excels on
all dimensions of products and
services that are important to the
customer.
5

Principles of TQM
Customer defines Quality
Management provides leadership for
Quality
Quality is responsibility of all employees
Company focus on Continuous
Improvement
6

Problems are solved through


cooperation
Training and education of all
employees in problem-solving for
continuous improvement
7

PDCA Cycle (Deming Wheel)


1.PLAN a change aimed at improvement.

2. Implement change. (DO it.)


3. CHECK and evaluate results.
4. Take ACTion by adopting change as
standard procedure, abandoning idea,
or modifying it and trying again.
8

....

Demings Wheel

4
1

3
2

Traditional Management vs. TQM

Good Enough
Short term focus
Company secrets
Motivated by profit
Business as usual
Product focusing
Dont think, just do
Assign responsibility
for quality
Ignore cost of poor
quality
Reactive

Continuous Improvement
Stresses Long term
Partners with suppliers
Focuses on customer
Innovative
Process focusing
Adapt to change
Everyone is responsible

Identify cost of quality


(see Table 1.5 on p. 39)
Proactive

10

Six-Sigma programs, started at


Motorola and used now at many
companies including GE and
AlliedSignal, take TQM ideas further
by focusing on bottom-line financial
impact.
11

The steps of the project include:


Define, Measure, Analyze, Improve
and Control.
Employees are trained at Master
Black Belt, Black Belt or Green Belt
level.
12

13

See www.isixsigma.com for a wealth of


information
Or
Six Sigma Black Belts: What Do They Need to
Know? by Roger Hoerl of General Electric
Journal of Quality Technology, 2001.

14

Quality characteristics are


variables which measure a
products fitness for use.
Examples include weight,
length, color, taste, percent of an
ingredient or impurity, strength,
etc..
15

If you cant describe and


measure quality using some
well-defined method
(operational definition), then
you cant control or improve
it.
16

A quality characteristic (q.c.)


usually has an ideal target value.
Tolerances are usually given such
that an individual item is O.K.
(conforming) if is in within the
tolerances; otherwise, it is not O.K.
(nonconforming).
17

For example, a part for


Mercedes is to be 25cm long
with a tolerance of +/- 01cm.
Thus, a part is O.K. if its
length is between 24.99cm
and 25.01cm.
18

OLD PHILOSOPHY.
Being within tolerances is good
enough.
NEW PHILOSOPHY.
Have the process average on
target and reduce variability to
improve quality.
19

Companies want to reduce


the percent of nonconforming
product. In many industries,
this proportion must be very
low, e.g., in a few parts per
million (PPM).
20

One of the key concepts of


statistical thinking is that
there is always variation.
We want to measure the
variation of a quality
characteristic, understand it,
and try to reduce it.

21

SPC is widely used by companies


to monitor and improve quality.
Statistically designed
experiments (DOE) are also
widely used to improve products
and processes.
22

Acceptance sampling is being


de-emphasized in industry.
Deming called it too late,
costly, and ineffective.
23

Demings 14 Points
1. Create constancy of purpose.
2. Adopt philosophy of prevention.
3. Cease mass inspection.
4. Select a few suppliers based on quality.
5. Constantly improve system and workers.
6. Institute worker training.

24

Instill leadership among supervisors.


8. Eliminate fear among employees.
9. Eliminate barriers between
departments.
10. Eliminate slogans.
7.

25

11. Remove numerical quotas.


12. Enhance worker pride.
13. Institute vigorous education
programs on quality improvement.
14.Implement these 13 points.
For more information on Deming, see
http://curiouscat.com/guides/demingbio.cfm.
26

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