QUALITY MANAGEMENT

OBJECTIVES

Understand dimensions of design quality, process quality and

service quality.
•
• Describe the quality gurus that contributed to the modern
field of quality.
•
• Discuss the costs of quality.
•
• Understand and Differentiate between TQM, ISO9001 and Six
• In 1980 quality was not the main priority in north
America manufacturer. Compaired to Japan,
North American manufacturer slowly have fallen
behindand customer preferred Japanese product
due to its superior level of quality Especially in
automotive markets
 2 PRIMARY FACTORS

Quality of any product is determined by

these two
• Design quality
• Process quality
 DESIGN QUALITY

• Refers to the actual characteristics of the product

• Example
• Think about the design of your favourite cell
phone. The decisions made by Marketing as well
as the Design team will determine the way your
phone will operate, the quality of the sound, the
features it has, not to mention the way it looks
and feels.
 PROCESS QUALITY

• Refers to the ability of the organization to produce

the good or service having perfect quality at each
stage of the process, or in other words,
manufacturing defect-free products.
 SERVICE QUALITY

• Each customer has a certain

performance level in mind from which to
compare or evaluate a service.
• Things to consider in measuring service
quality
 GURUS OF QUALITY

INDIDUALS WHO SPENT THEIR CAREERS RESEARCHING,

TEACHING AND DEVELOPING THE FIELD OF QUALITY.

• Walter Shewhart Philip Crosby

• Edwards Deming • Armand Fiegenbaum
• Joseph Juran
 WALTER SHEWHART
(1891-1967)

• Dr. Shewhart was an American physicist, engineer and

statistician. He is known as the father of statistical quality
control and spent much of his career researching
variation and is credited with the creation of the first
control chart. His work focused around the need to reduce
variation in order to improve quality. He is responsible for
the concepts of assignable and common variation.
 EDWARDS DEMING
(1900-1993)

• An American engineer, statistician, professor and

author. Dr. Deming was recruited to Japan after
WWII to assist with their national census. Beginning
in 1950 Deming trained thousands of Japanese
engineers, managers, and scholars in basic
statistical process control.
• He is credited with guiding the rise of Japanese
superior quality. In appreciation for Deming’s
guidance the Japanese named their highest
quality award after Dr. Deming (The Deming
Prize).
• Dr. Deming has an extensive list of published
works but is likely most well known for Deming’s
14 points and the Deming Cycle.
 JOSEPH JURAN
(1904-2008)

• Juran was a Romanian-born American engineer.

• He is best known for the Quality Control Handbook,
which was first published in 1951.
• He emphasized the importance of three specific
factors which came to be known as the quality
trilogy: quality planning, quality control and quality
improvement.
• He authored hundreds of papers and 12 books.
• He is responsible for creating the concept known
today the cost of quality.
• Joseph Juran also came upon the work of Vilfredo
Pareto (1848-1923) and made the Pareto Principle,
also known as the 80/20 rule, well known today as
a tool for problem solving and continuous
improvement.
 PHILIP CROSBY
(1926-2001)

• Crosby was an American businessman and author.

He published Quality is Free in 1979. He believed
that the costs of quality are often understated. He
coined the phrase zero defects and felt that there
was no reason for any errors. He taught that it is less
expensive to do it right the first time rather than to
pay for extra inspection, scrap, rework and repairs.
 ARMAND FIEGENBAUM
(1920-2014)

• .Dr.
Feigenbaum was an American quality engineer and
businessman. He was the Director of Manufacturing
Operations at General Electric from 1958-1968. He
devised the concept of total quality control, which later
became total quality management (TQM). He is also
known for his concept of a “hidden plant.” He felt that a
large portion of a plant’s capacity is wasted due to the
large amount of failures and defects.
 COST OF QUALITY

• This variation can be broken down into four

categories which are the prevention costs, appraisal
costs, and failure costs, which are further classified
as internal failure costs and external failure costs.
 PREVENTION COST

• Prevention costs include all the funds spent to prevent

the occurrence of defects.
Example
• Quality improvement initiatives, employee
training, upgrading of equipment, implementing
quality procedures and making proactive design
changes.
 APPRAISAL COSTS

• All money spent in checking and testing of product

during the production process would be considered
Appraisal costs. Wages of inspectors when defined
as part of the process, testing labs and equipment,
gauging, and process control, would be included in
this category.
 INTERNAL FAILURE COSTS

• Once a defect has been produced, with any luck

the organization will detect the error before it
leaves the building and is sent to the customer.
Often, defective products can be repaired, but all of
the extra time spent on the rework is considered
internal failure costs. Product that is unable to be
repaired is classified as scrap that is also
considered as internal Failure costs.
 EXTERNAL FAILURE COSTS

• Once a defective product has been shipped to the

customer, the costs then become external failure costs.
Replacement product, expedited shipping, potential law
suits, product recalls, and of course loss of future business
are all external failure costs. It is impossible to predict the
actual external failure costs since there is no way of
gauging the impact of dissatisfied customers on future
business.
 QUALITY SYSTEMS

• Three common quality systems that many

organizations use in order to manage their quality
are total quality management (TQM), ISO9001, and
Six Sigma.
 TOTAL QUALITY MANAGEMENT
(TQM)

• Total quality management (TQM), or quality

assurance, includes all the steps that a company
takes to ensure that its goods or services meet or
exceed the customers defined specifications and
are of sufficiently high quality to meet customers’
needs.
• Generally speaking, a company adheres
to TQM principles by focusing on three
tasks:
• Customer satisfaction
• Employee involvement
• Continuous improvement
 CUSTOMER SATISFACTION

• Companies that are committed to TQM understand that

the purpose of a business is to generate a profit by
satisfying customer needs. Thus, they let their customers
define quality by identifying and offering those product
features that satisfy customer needs. They encourage
customers to tell them how to make the right products,
both goods and services, that work the right way.
 EMPLOYEE INVOLVEMENT

• Successful TQM requires that everyone in the

organization, not simply upper-level management,
commits to satisfying the customer.
• To get everyone involved in the drive for quality
assurance, managers must communicate the
importance of quality to subordinates and motivate
them to focus on customer satisfaction.
 CONTINUOUS IMPROVEMENT

• An integral part of TQM is continuous improvement: the

commitment to making constant improvements in the
design, production, and delivery of goods and services.
Improvements can almost always be made to increase
efficiency, reduce costs, and improve customer service
and satisfaction. Everyone in the organization is
constantly on the lookout for ways to do things better.
 ISO

• The International Organization for Standardization

(ISO) is an international standard-setting body
composed of representatives from various standards
organizations.
• Founded on 23 February 1947, the organization
promotes worldwide proprietary, industrial and
commercial standards. It is headquartered in
Geneva, Switzerland, and works in 164 countries.
 HAZARD ANALYSIS CRITICAL
CONTROL POINT (HACCP)

• HACCP is a quality management system for

organizations in the food processing industry.
 SIX SIGMA

• Six Sigma is a set of techniques and tools for

process improvement.
• It was introduced by engineer Bill Smith while
working at Motorola in 1980. It is a comprehensive
quality system for achieving business success by
minimizing variation in business processes.
DMAIC
MODEL
Define the problem, improvement activity,
opportunity for improvement, the project goals, and
customer (internal and external) requirements.
Measure process performance.
Analyze the process to determine root causes of
variation and poor performance (defects).
Improve process performance by addressing and
eliminating the root causes.
1.Control the improved process and future process
performance.