The Certified Quality Process Analyst Handbook 2nd edition Chapter 1: Quality Concepts Various chapters (1st edition) Presented by Dr. Joan Burtner Certified Quality Engineer Associate Professor and Chair Dept. of Industrial Engineering and Industrial Management Mercer University

Chapter 1 Overview Quality planning Quality standards, requirements, and specifications Cost of quality Quality documentation IDM355 Fall 2017 Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering

Responsibilities for Quality Planning Top-level management is responsible for establishing the organization’s commitment to quality. Typically the organization designates a group (often called the quality council) that acts as a steering committee for the corporate quality initiative. The quality council is responsible for prioritizing improvement projects and making recommendations to management. IDM355 Fall 2017 Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering

Setting Goals and Objectives SMART guidelines for goals and objectives S = Specific M = Measurable A = Attainable R = Realistic T = Time-bound SMART example: “To ensure that we are satisfying our customers, 90 percent of our customers will give us 5’s or 6’s on our customer satisfaction survey by January 2014.” page 4 Link quality goals to: Product satisfaction Service satisfaction Customer satisfaction Cost of quality IDM355 Fall 2017 Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering

Deploying the Plan Allocate resources Designate personnel Assign specific tasks Provide equipment, materials, facilities, processes Hold individuals accountable for implementing the plan Identify measures of success Are requirements met? Are expectations met? Is the customer satisfied? IDM355 Fall 2017 Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering

Quality Standards, Requirements, and Specifications Quality assurance / total quality control philosophy led to quality standards ISO 9000 International standard for quality management systems Successful companies anticipate customer requirements Customer requirements are translated into specifications Physical, measurable characteristics Environmental, safety, maintainability requirements May also be federal environmental standards IDM355 Fall 2017 Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering

Cost of Quality (COQ) Cost of quality categories Prevention Appraisal Internal External The total cost of quality equals the sum of the costs associated with the four categories listed above. IDM355 Fall 2017 Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering

Cost of Quality - Prevention The costs of all activities specifically designed to prevent poor quality in products or services. Examples New product review Quality planning Supplier capability surveys Process capability evaluations Quality improvement team meetings Quality improvement projects Quality education and training IDM355 Fall 2017 Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering

Cost of Quality - Appraisal The costs associated with measuring, evaluating, or auditing products or services to assure conformance to quality standards and performance requirements Examples Incoming and source inspection/test of purchased material In-process and final inspection/test Product, process, or service audits Calibration of measuring and text equipment Associated supplies and materials IDM355 Fall 2017 Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering

Cost of Quality - Internal The costs resulting from products or services not conforming to requirements or customer/user needs. Failure costs occurring prior to delivery or shipment of the product … or the furnishing of a service …to the customer Examples of internal failure Scrap Rework Re-inspection Retesting Material review Downgrading IDM355 Fall 2017 Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering

Cost of Quality - External The costs resulting from products or services not conforming to requirements or customer/user needs. Failure costs occurring after delivery or shipment of the product … and during or after furnishing of a service …to the customer Examples of external failure Processing customer complaints Customer returns Warranty claims Product recalls IDM355 Fall 2017 Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering

Quality Documentation Three purposes Guide individuals in the performance of their duties Standardize the work processes throughout the organization Provide a source of evidence regarding practices See separate PowerPoint on course web site. IDM355 Fall 2017 Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering