1. Introduction to Quality Total Quality Management
Management Science – 2
Introduction to Quality Total Quality Management

2. Quality Management What does the term quality mean?
Quality is the ability of a product or service to consistently meet or exceed customer expectations.
degree of excellence of a thing.
Totality of features and characteristics that satisfy needs

3. Evolution of Quality Management
Fredrick Taylor (Scientific Management)
Statistical process control charts
Tables for acceptance sampling
1940’s - Statistical sampling techniques
1950’s - Quality assurance/TQC (DEMING)
1960’s - Zero defects
1970’s - Quality assurance in services

4. Quality Assurance vs. Strategic Approach
Emphasis on finding and correcting defects before reaching market
Strategic Approach
Proactive, focusing on preventing mistakes from occurring
Greater emphasis on customer satisfaction

5. Dimensions of Quality Performance Features Reliability
basic operating characteristics of a product; how well a car is handled.
Features
“extra” items added to basic features, such as a stereo CD or a leather interior in a car
Reliability
probability that a product will operate properly within an expected time frame; that is, a TV will work without repair for about seven years

6. Dimensions of Quality (Cont’d)
Conformance
degree to which a product meets pre–established standards
Durability
how long product lasts before replacement
Serviceability
ease of getting repairs, speed of repairs, courtesy and competence of repair person

7. Dimensions of Quality (Cont’d)
Aesthetics
how a product looks, feels, sounds, smells, or tastes
Safety
assurance that customer will not suffer injury or harm from a product; an especially important consideration for automobiles
Perceptions
subjective perceptions based on brand name, advertising, and the like

8. Examples of Quality Dimensions

9. Examples of Quality Dimensions (Cont’d)

10. Dimensions of Quality: Service
Time and Timeliness
How long must a customer wait for service, and is it completed on time?
Is an overnight package delivered overnight?
Completeness:
Is everything customer asked for provided?
Is a mail order from a catalogue company complete when delivered?

11. Dimensions of Quality: Service
Courtesy:
How are customers treated by employees?
Are catalogue phone operators nice and are their voices pleasant?
Consistency
Is the same level of service provided to each customer each time?
Is your newspaper delivered on time every morning?

12. Dimensions of Quality: Service
Accessibility and convenience
How easy is it to obtain service?
Does a service representative answer you calls quickly?
Accuracy
Is the service performed right every time?
Is your bank or credit card statement correct every month?

13. Dimensions of Quality: Service
Responsiveness
How well does the company react to unusual situations?
How well is a telephone operator able to respond to a customer’s questions?

14. Challenges with Service Quality
Customer expectations often change
Different customers have different expectations
Each customer contact is a “moment of truth”
Customer participation can affect perception of quality
Fail-staffing must be designed into the system

15. Quality Gurus Walter Shewart W. Edwards Deming Joseph M. Juran
In 1920s, developed control charts
Introduced the term “quality assurance”
W. Edwards Deming
Developed courses during World War II to teach statistical quality-control techniques to engineers and executives of companies that were military suppliers
After the war, began teaching statistical quality control to Japanese companies
Joseph M. Juran
Followed Deming to Japan in 1954
Focused on strategic quality planning

16. Quality Gurus (cont.) Armand V. Feigenbaum Philip Crosby
In 1951, introduced concepts of total quality control and continuous quality improvement
Philip Crosby
In 1979, emphasized that costs of poor quality far outweigh the cost of preventing poor quality
In 1984, defined absolutes of quality management—conformance to requirements, prevention, and “zero defects”
Kaoru Ishikawa
Promoted use of quality circles
Developed “fishbone” diagram
Emphasized importance of internal customer

17. Determinants of Quality (cont’d)
Quality of design
Intension of designers to include or exclude features in a product or service:
Different car models with different features
size
Appearance
Roominess
Fuel economy
Comfort
Material used

18. Determinants of Quality (cont’d)
Quality of Conformance
Making sure a product or service is produced according to design:
if new tires do not conform to specifications, they wobble
if a hotel room is not clean when a guest checks in, the hotel is not functioning according to specifications of its design

19. The Consequences of Poor Quality
Loss of business
Liability
Productivity
Costs

20. Benefits of Good Quality
Organizations will benefit in different way:
Enhance reputation
Increase market share
Greater customer loyalty
Lower liability Cost
Fewer complains
Lower production cost
Higher profits

21. Responsibility for Quality
Top management
Design
Procurement
Production/operations
Quality assurance
Packaging and shipping
Marketing and sales
Customer service

22. Costs of Quality
Failure Costs - costs incurred by defective parts/products or faulty services.
Internal Failure Costs
Costs incurred to fix problems that are detected during the production.
Defective materials
Incorrect machine setting
Faulty equipment
Carelessness
Wrong procedure

23. Costs of Quality External Failure Costs
All costs incurred to fix problems that are detected after the product/service is delivered to the customer.
Warranty work
Handling of complains
Replacement
Liability

24. Costs of Quality (continued)
Appraisal Costs
Costs of activities designed to ensure quality or uncover defects
Cost of inspector
Testing
Test equipment
Labs
Field testing

25. Costs of Quality (continued)
Prevention Costs
Cost of preventing defects form occurring
Planning and adminstration
Working with vendors
Training
Quality control procedures

26. Total Quality Management
A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.
Continuous Improvement
Involvement of Everyone
Customer Satisfaction

27. Elements of TQM Continual improvement (never ending)
Competitive benchmarking
Employee empowerment
Team approach
Decisions based on facts
Knowledge of tools
Supplier quality
Champion
Quality at the source
Suppliers

28. Quality at the Source
The philosophy of making each worker responsible for the quality of his or her work.

29. Basic Quality Tools Flowcharts Check sheets Histograms Pareto Charts
Scatter diagrams
Control charts
Cause-and-effect diagrams
Run charts

30. Quality Tools Flow Chart : Cause and Effect
displays the steps in a process showing order and relationships helps in understanding of that process and identifies potential weaknesses i.e. poor performance
Cause and Effect
Also know as fishbone or Ishikawa

31. Quality Tools

32. Quality Tools

33. Check Sheet COMPONENTS REPLACED BY LAB
TIME PERIOD: 22 Feb to 27 Feb 2002
REPAIR TECHNICIAN: Bob
TV SET MODEL 1013
Integrated Circuits ||||
Capacitors |||| |||| |||| |||| |||| ||
Resistors ||
Transformers ||||
Commands
CRT |

34. Cause-and-Effect Diagram
Figure 9.12
Quality
Problem
Out of adjustment
Tooling problems
Old / worn
Machines
Faulty
testing equipment
Incorrect specifications
Improper methods
Measurement
Poor supervision
Lack of concentration
Inadequate training
Human
Deficiencies
in product design
Ineffective quality
management
Poor process design
Process
Inaccurate
temperature
control
Dust and Dirt
Environment
Defective from vendor
Not to specifications
Material-
handling problems
Materials

35. Methods for Generating Ideas
Brainstorming
Quality circles
Interviewing
Benchmarking