1. Week 02A – Management of Quality (Ch 6)
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Week 02A – Management of Quality (Ch 6)
Dimensions, determinants, definition, pioneers, Cost of Quality, awards, ISO registration, TQM, process improvement methodology, quality tools, PDCA (PDSA) cycle, Quality Circles, Six Sigma

2. What’s your definition of quality?
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What’s your definition of quality?
High price?
Reliable?
Attractive?
Durable?
Other?

3. Dimensions of Quality (Goods) - David Garvin
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Dimensions of Quality (Goods) - David Garvin
Performance
Aesthetics
Special features
Safety
Reliability
Durability
Perceived quality
Service after sale

4. Dimensions of Quality (Service) (Parasuraman, Zeithamel, and Berry)
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Dimensions of Quality (Service) (Parasuraman, Zeithamel, and Berry)
Tangibles
Service Reliability
Responsiveness
Assurance
Empathy
Availability
Professionalism
Timeliness
Completeness
Pleasantness

5. Quality - a Definition - 1
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Quality - a Definition - 1
“Fitness for use” - Juran
Based on various factors: reliability, durability, performance, usefulness, aesthetics, price, etc. - Various
“Meets customer requirements” – Various
“Consistently meets or exceeds customer expectations” – Stevenson
“Ability of a product or service to meet customer needs” - Heizer

6. Quality - a Definition - 2
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Quality - a Definition - 2
“Consistently meets or exceeds customer requirements” – Bentley
Emphasis on requirements
Includes understanding of expectations
Implies an agreement
explicit or
Implicit
Related concept:
“Do it right the first time and every time”

7. Determinants of Quality
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Determinants of Quality
How well a product satisfies its intended purpose based on 4 factors
Design
Conformance to the design
Ease of use
Service after delivery

8. Case Study – a personal experience
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Case Study – a personal experience
Program introduction
General manager kickoff talk
Key question – “What do we do at the end of the month if we’re not sure that a product meets quality requirements?”
The answer – “That all depends…”
Possible consequences
Program results

9. Quality Gurus / Pioneers - 1
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Quality Gurus / Pioneers - 1
Frederick Taylor ( )
Inspection
Gauging
Walter Shewhart (Bell System) ( )
Developed Statistical control charts
Mentored Deming
PDCA cycle (shared with Deming)
Identified 2 causes of variation: chance and assignable

10. Quality Gurus / Pioneers - 2
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Quality Gurus / Pioneers - 2
H.G. Romig ( ) and Harold Dodge ( ) (Bell System)
Acceptance sampling tables
W. (William) Edwards Deming ( )
Trained in engineering, mathematics, and physics
Physics professor, U.S. Census Bureau, USDA, consultant
Taught SQC to Japanese QC people ( )
PDCA cycle (shared with Shewhart)
Honored by Japanese prize in his name

11. Quality Gurus / Pioneers - 3
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Quality Gurus / Pioneers - 3
W. (William) Edwards Deming (cont’d.)
14 points based on:
Constancy of purpose
Continual improvement
Profound knowledge
Appreciation for a system
A theory of variation
A theory of knowledge

12. Quality Gurus / Pioneers - 4
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Quality Gurus / Pioneers - 4
Joseph M. Juran (Bell System) ( )
Also lectured in Japan
Authored/Edited Quality Control Handbook
Built on Pareto concept
“Quality Trilogy” concept
Quality planning
Quality control
Quality improvement

13. Quality Gurus / Pioneers - 5
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Quality Gurus / Pioneers - 5
Armand Feigenbaum (GE, General Systems Company) ( )
“Cost of nonconformance”
Total quality control concept
Authored Total Quality Control
40 steps in quality principles
TQC is system for integration…
Standards, appraisal, corrective action
Technological and human factors
4 categories of quality costs (next slide)
Control quality at the source

14. Cost of Quality (Juran/Feigenbaum)
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Cost of Quality (Juran/Feigenbaum)
TRADITIONAL CoQ
CURRENT CoQ
External Failure
Internal Failure
Prevention
Appraisal

15. Quality Gurus / Pioneers - 6
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Quality Gurus / Pioneers - 6
Philip Crosby (Martin Marietta, ITT, PCA) ( )
Zero Defects
Authored Quality is Free, Quality Without Tears
Started Quality College (multiple sites)
Company teams trained
Emphasized behavioral change

16. Quality Gurus / Pioneers - 7
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Quality Gurus / Pioneers - 7
Kaoru Ishikawa ( )
Quality Circles
7 Basic Tools of Quality
Cause and effect [“fishbone” or
Ishikawa] diagram
Promoted statistical methods
Recognized internal customer
Conceived “company wide quality control”

17. Quality Gurus / Pioneers - 8
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Quality Gurus / Pioneers - 8
Genichi Taguchi ( )
Emphasized variation reduction
Taguchi loss function
Shigeo Shingo ( )
Not focused on quality but had significant impact
Setup standardization
Poka-yoke
Source inspection systems

18. SJSU Bus 140 - David Bentley
Awards & Prizes
Deming Prize
Awarded by Union of Japanese Scientists & Engineers
First awarded in 1951
Named after W. Edwards Deming
Malcolm Baldrige Award
Awarded by US Department of Commerce
1987 legislation
Named after Malcolm Baldrige

19. Awards & Prizes (cont’d)
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Awards & Prizes (cont’d)
European Quality Award
Award for “organizational excellence”
Originally one per year
Now several categories
Other awards
Most developed nations have some form of Quality awards or prizes

20. Value of Awards & Prizes
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Value of Awards & Prizes
Shows effort
Largely dependent on money spent
Used in advertising
Doesn’t reflect customer view

21. International Organization For Standardization
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ISO
International Organization
For Standardization

22. SJSU Bus 140 - David Bentley
Current ISO Standards
ISO 9000 family – “Quality management”
ISO 9001:2008 (QMS - Requirements)
ISO family – “Environmental management”
ISO 14001:2004 (EMS - Requirements)
ISO 19011:2002 (Guidelines on Quality and/or Environmental Management Systems Auditing)

23. SJSU Bus 140 - David Bentley
ISO Registration
What’s been good
Focus on quality
Demonstrates effort
What was bad (mostly fixed in ISO 9000:2000
Became mechanical
Emphasized conformance to documentation, not meeting QUALITY
Didn’t include customer view

24. SJSU Bus 140 - David Bentley
Quality Today
Reflects a blend of concepts and contributions from the “pioneers” (“gurus”)
Stresses organization-wide TQM
Emphasizes the role of the front-line worker (authority and responsibility)
Seeks to recognize achievement through prizes and certification

25. SJSU Bus 140 - David Bentley
TQM Approach
Know customer requirements and wants
Design a product to delight the customer
Design a process to do the job right (the first time and) every time
Apply fail-safing techniques (“poka-yoke” devices)
Monitor and record results for improvement ideas
Work with suppliers and customers

26. Poka-Yoke (Mistake-Proofing)
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Poka-Yoke (Mistake-Proofing)
Developed by Shigeo Shingo
An approach for mistake-proofing processes using automatic devices or methods to avoid simple human or machine error, such as forgetfulness, misunderstanding, errors in identification, lack of experience, absentmindedness, delays, or malfunctions

27. SJSU Bus 140 - David Bentley
Poka-Yoke Examples (from John Grout’s Poka-Yoke Page) (refer to mod. 09/15/02 DAB

28. SJSU Bus 140 - David Bentley
Other TQM Points
Continual improvement (“kaizen”)
Competitive benchmarking
Employee enablement
Use of teams
Training
Extension to suppliers
Traditional vs. TQM cultures

29. Ishikawa’s Seven Basic Tools of Quality
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Ishikawa’s Seven Basic Tools of Quality
Process flowcharts
Check sheets
Scatter diagrams
Histograms
Pareto analysis (charts)
Cause-and-effect diagrams (Ishikawa/Fishbone)
Control charts
Run charts

30. SJSU Bus 140 - David Bentley
Flowcharts
Shows unexpected complexity, problem areas, redundancy, unnecessary loops, and where simplification may be possible
Compares and contrasts actual versus ideal flow of a process
Allows a team to reach agreement on process steps and identify activities that may impact performance
Serves as a training tool

31. SJSU Bus 140 - David Bentley
Check Sheet
Creates easy-to-understand data
Builds, with each observation, a clearer picture of the facts
Forces agreement on the definition of each condition or event of interest
Makes patterns in the data become
obvious quickly xx
xxxxxx x

32. SJSU Bus 140 - David Bentley
Scatter Diagram
Supplies the data to confirm a hypothesis that two variables are related
Provides both a visual and statistical means to test the strength of a relationship
Provides a good follow-up to cause and effect diagrams *
* *
* *

33. SJSU Bus 140 - David Bentley
Histogram
Displays large amounts of data that are difficult to interpret in tabular form Shows centering, variation, and shape Illustrates the underlying distribution of the data Provides useful information for predicting future performance Helps to answer the question “Is the process capable of meeting requirements?

34. SJSU Bus 140 - David Bentley
Pareto Diagram
Helps a team focus on causes that have the greatest impact
Displays the relative importance of problems in a simple visual format
Helps prevent “shifting the problem” where the solution removes some causes but worsens others

35. Cause and Effect Diagram
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Cause and Effect Diagram
Enables a team to focus on the content of a problem, not on the history of the problem or differing personal interests of team members
Creates a snapshot of collective knowledge and consensus of a team; builds support for solutions
Focuses the team on causes, not symptoms
Effect
Cause

36. SJSU Bus 140 - David Bentley
Control Chart
Focuses attention on detecting and monitoring process variation over time
Distinguishes special from common causes of variation
Serves as a tool for on-going control
Provides a common language for discussion process performance
* * *
* * *

37. SJSU Bus 140 - David Bentley
Run Chart
Monitors performance of one or more processes over time to detect trends, shifts, or cycles
Allows a team to compare performance before and after implementation of a solution to measure its impact
Focuses attention on truly vital changes in the process
* * *
* * *

38. Process Improvement Sequence - 1
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Process Improvement Sequence - 1
Management responsibility
Develop process improvement plan
Determine process or area to examine
Form and train Process/Quality Improvement Team

39. Process Improvement Sequence - 2
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Process Improvement Sequence - 2
Team: use coarse tools
Process flowchart
Check sheets and histograms
Pareto analysis < (iterative
Fishbone chart > steps)

40. Process Improvement Sequence - 3
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Process Improvement Sequence - 3
Team: use fine tools
Process control charts
Run diagrams
Scatter diagrams
Failsafing

41. Process Improvement Sequence - 4
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Process Improvement Sequence - 4
Team
Determine process changes
Implement pilot process improvement
Measure and evaluate results
Repeat if results unsatisfactory; deploy full implementation if results satisfactory

42. SJSU Bus 140 - David Bentley
PDCA (or PDSA) Cycle
Also known as the Deming wheel, or Deming/Shewhart cycle or wheel
4 parts to the cycle
Plan - document and analyze
Do - implement “improvement”
Check (or Study) - compare to desired state
Act - correct or standardize

43. Quality Circles vs. QITs
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Quality Circles vs. QITs
Quality Circles
Limited authority
Focus within department
Often seen as added work
Ongoing
Quality Improvement Teams
Greater authority
Focus on total process
Recognized as important part of job
End when process improvement complete

44. SJSU Bus 140 - David Bentley
5W2H Approach
What? Subject
Why? Purpose
Where? Location
When? Timing/sequence
Who? People involved
How? Method
How much? Cost/impact

45. SJSU Bus 140 - David Bentley
Six Sigma

46. SJSU Bus 140 - David Bentley
Six Sigma Quality
Latest popular approach to Quality
± 6 standard deviations (6) from the process mean = % defects
Represents a goal
Certification from ASQ on processes to support Six Sigma
Many consulting and training firms on how to implement Six Sigma

47. SJSU Bus 140 - David Bentley
Six Sigma at GE
“The central idea behind Six Sigma is that if you can measure how many ‘defects’ you have in a process, you can systematically figure out how to eliminate them and get as close to ‘zero defects’ as possible.”
Making Customers Feel Six Sigma Quality

48. SJSU Bus 140 - David Bentley
Six Sigma Evolution
Started as a simple quality metric at Motorola in 1986 (Bill Smith)
Concept migrated to Allied Signal
(acquired Honeywell and took its name)
Picked up by General Electric
Commitment by CEO Jack Welch in 1995
Grown to be an integrated strategy for attaining extremely high levels of quality

49. SJSU Bus 140 - David Bentley
What is Six-Sigma?
Sigma () is a Greek letter used to
designate a standard deviation (SD) in
statistics
Six refers to the number of SD’s from the
specialized limit to the mean.
Six sigma is a fairly recent umbrella approach to achieve quality

50. Percent Not Meeting Specifications
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Percent Not Meeting Specifications
+1Σ = 32%
+2Σ = 4.5%
+3Σ = 0.3%
+6Σ = %

51. SJSU Bus 140 - David Bentley
Six-Sigma Levels
Sigma Level
Long-term ppm* defects 1
691,462 2
308,538 3
66,807 4
6,210 5
233 6
3.4

52. SJSU Bus 140 - David Bentley
Statistics - DPU
Defect
Six Sigma: “any mistake or error passed on to the customer” ???
General view: any variation from specifications
DPU (defects per unit)
Number of defects per unit of work
Ex: 3 lost bags ÷ 8,000 customers =

53. Statistics – dpmo (defects per million opportunities)
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Statistics – dpmo (defects per million opportunities)
Process may have more than one opportunity for error (e.g., airline baggage)
dpmo = (DPU × 1,000,000) ÷
opportunities for error
Ex: ( )(1,000,000) ÷ 1.6 =
or (3 lost bags × 1,000,000) ÷ (8,000 customers × 1.6 average bags) =

54. SJSU Bus 140 - David Bentley
Statistics - Off-Centering Source: Evans & Lindsay, The Management and Control of Quality, Southwestern, 2005

55. SJSU Bus 140 - David Bentley
k-Sigma Quality Levels Source: Evans & Lindsay, The Management and Control of Quality, Southwestern, 2005