1. Class 22: Quality Management
OPSM301 Spring 2012
Class 22:
Quality Management

2. Quality Is That which makes anything such as it is - Dictionary
Fitness for use - J. Juran and ASQ
Conformance to requirements - P. Crosby
Closeness to the target - deviations mean loss to the society G. Taguchi
Providing full customer satisfaction at the most economical levels A. Feigenbaum
Eight dimensional - Performance, Features, Conformance, Reliability, Serviceability, Durability, Aesthetics, and Perception - D. Garvin
Copyright © 2013 Pearson Education Inc. publishing as Prentice Hall

3. Variability = Actual - Expected
Customer Needs - Product Design
Product Design - Process Capability
Process Capability - Process Performance
Process Performance - Product Performance
Product Performance - Customer Perception

4. Ways in Which Quality Can Improve Profitability
Sales Gains
Improved response
Higher prices
Improved reputation
Improved Quality
Increased Profits
Reduced Costs
Increased productivity
Lower rework and scrap costs
Lower warranty costs

5. Quality Costs Cost of Control (Quality, Conformance)
Prevention costs: reducing the potential for defects
Appraisal costs: evaluating products
Cost of Failure of Control (Unquality, non-conformance)
Internal failure costs:of producing defective parts or service
External failure costs: occur after delivery

6. Early Defect Detection Saves
Stage: At Source Next Process End of Line Final Inspection End User
Cost:
Impact: • Little • Minor • Rework • Much rework • Warranty
delay • Reschedule • Delivery delay • Complaints
• Inspect more • Reputation
• Market share
Prevention Saves Even More!

7. International Quality Standards
ISO 9000 series
Common quality standards for products sold in Europe (even if made in U.S.)
2000 update places greater emphasis on leadership and customer satisfaction
ISO series
Environmental management
Auditing
Performance evaluation
Labeling
Life cycle assessment

8. TQM: Continuous Process Improvement
Measurement
External and Internal
Analysis
Analyze Variation
Control
Adjust Process
Improvement
Reduce Variation
Innovation
Redesign Product/Process D A C P
Improve
Innovate D A C P
Improve
Control

9. Analytical Tools for Continuous Improvement
Process Analysis
Pareto Charts
Histograms
Scatter Diagrams
Fish-Bone Charts
Control Charts

10. Seven Tools for TQM

11. Check Sheet Type of Defect Number of Defective Flow Units Cost
Response Time
Customization
Service Quality
Garage Quality

12. Pareto Analysis
The purpose of Pareto Analysis is to identify and highlight major symptoms of major quality problems
It is based on the premise that usually a small number of faults cause the majority of malfunctions (to separate the vital few and trivial many)

13. Developing Pareto Analysis
Define classification of defects to be monitored
Define the period of time over which the assessment will be made
Total the frequency of occurrence of each class of defects over the period
Plot the histogram and cumulative distribution of the classes in descending order of the frequency occurrence
Identify the classes that constitute the majority of defect occurrences

14. “80 percent of the problems are due to 20 percent of the causes”
Pareto Analysis
-100%
Frequency
Percentage
-50%
-0%
A B C D E F
Pareto Law (80/20 Rule):
“80 percent of the problems are due to 20 percent of the causes”

15. Fish-Bone Diagram
Also known as cause-and-effect diagram, or Ishikawa diagram
Pareto analysis is used to identify key problems or symptoms,
Fish-Bone diagram is used to sort causes of the problems
Brain storming sessions of groups of workers needed
It is a very valuable educational tool

16. Fish-Bone Diagram Used to find problem sources/solutions Other names
Fish-bone diagram, Ishikawa diagram
Steps
Identify problem to correct
Draw main causes for problem as ‘bones’
Ask ‘What could have caused problems in these areas?’ Repeat for each sub-area.
This slide introduces the Cause and Effect Diagram. The next several slide show the development of a simple example.
If time is available, it would be helpful to ask students to develop their own examples.

17. Cause-and-Effect Diagrams
Material
(ball)
Method
(shooting process)
Size of ball
Lopsidedness
Grain/Feel (grip)
Air pressure
Follow-through
Hand position
Aiming point
Bend knees
Balance
Missed free-throws
Training
Conditioning
Motivation
Concentration
Consistency
Manpower
(shooter)
Rim alignment
Rim size
Backboard stability
Rim height
Machine
(hoop &
backboard)

18. Weight data for 20 days-Table 1
Time 1 2 3 4 5 6 7 8 9 10
9:00 81 82 80 74 75 83 86 88
11:00 73 87 79 84
13:00 85 76 91 89
15:00 90 78 77
17:00
Time 11 12 13 14 15 16 17 18 19 20
9:00 86 88 72 84 76 74 85 82 89
11:00 83 79 80
13:00 81 78 90
15:00 77 92
17:00 87

19. Histogram 2 4 6 8 1 7 9
Weight (kg)
Frequency