3. Productivity and Quality Management Lecture 17

4. Introduction to Quality Contd.

5. What is... ? Quality

6. Totality of characteristics of an entity that bear on its ability to satisfy stated and implied needs (ISO Definition) What is Quality?

7. Q=P/E Where P = Performance, E = Expectations QUALITY QUANTIFIED?

8. Evolution of Quality Management Mass Inspection Quality Control (Acceptance Sampling) Quality Assurance Quality Management System Company wide Quality Control

9. Inspection Quality Control Quality Assurance Total Quality Management Reactive Approach Proactive Approach Detection Finding & Fixing mistakes Prevention Stop defects at source. Zero defects 1 2 3 4 Inspect products Incorporates QC/QA activities into a company-wide system aimed at satisfying the customer. (involves all organizational functions) Planned and systematic actions to ensure that products or services conform to company requirements Operational techniques to make inspection more efficient & to reduce the costs of quality. (example: SPC) Evolution of Quality Management

10. The Acceptance Inspection Model Reject, Scrap, Rework, Repair Pass the Inspection? NO YES Process Inspection Acceptance Next Process

11. PARTS INSPECTION  Earlier perception  Conformance to requirements through  Inspection after each major activity PRODUCT

12. QUALITY CONTROL  “The operational techniques and activities that are used to fulfil requirements for quality”. PRODUCT

13.  It is that part of Quality Management focused on fulfilling requirements of the Customers for the quality products.  The purpose of quality control is to uncover defects and have them corrected so that defect-free products will be produced.  Monitors and improves process and its performance through  Monitoring Inspections  Control plans  Statistical Process Control  Material review board  Establishment of Systems for:  Traceability  Non Conforming Material / product control  Corrective action (Rework / Repair) QUALITY CONTROL

14. QUALITY ASSURANCE  Implementation of planned & systematic activities to fulfill customer perceptions & requirements

15. QUALITY ASSURANCE  Quality Assurance leading to QMS  Improves, supports and audits product through establishing, reviewing and monitoring of  Customer requirements  System / Product documentation  Quality plans  Performance goals  Trainings  Utilization of resources  Supplier performance  Corrective / Preventive actions

16.  A management approach that places emphasis on “continuoual” process and system improvements for achieving customer satisfaction  A cultural entity  Quality improvement within the quality system  The quality policy  Objectives and responsibilities  Implementation and planning  Quality control  Quality assurance

17. Quality Management Quality Planning Criteria driven Quality Assurance Prevention driven Quality Control Inspection driven Quality Management System: Management system to direct and control an organisation with regard to quality – ISO 9000:2000

18. Quality Management Components Quality Planning – It identifies the standards and determines how to satisfy those standards. – It lays out the roles and responsibilities, resources, procedures, and processes to be utilized for quality control and quality assurance. Quality Assurance – It is the review to ensure aligning with the quality standards. An assessment will be provided here. – Planned and systematic quality activities. – Provide the confidence that the standards will be met.

19. Quality Control – Inspection Driven Quality Control – It addresses the assessment conducted during Quality Assurance for corrective actions. – Measure specific results to determine that they match the standards. – Use of Statistical Process Control (SPC) : a methodology for monitoring a process to identify special causes of variation and signal the need to take corrective action when appropriate. – SPC relies on control charts.

20. What is a Control Chart? A control chart is a presentation of data in which the control values are plotted against time. Control charts have a central line, upper and lower warning limits, and upper and lower action limits. Immediate visualisation of problems.

21. Control chart -illustration of construction 0102030405060708090100 0.8 0.9 1.0 1.1 1.2 1.3 X-chart Copper Warning limit Action limit Central line Control value

22. When to Take Action? One point plots outside the Action Limits. Two consecutive points plots between the Warning and Action Limits Eight consecutive points plot on one side of the Center Line Six points plots steadily increasing or decreasing When an unusual or nonrandom pattern is observed

23. When to Take Action?

26. Quality Improvement Tools Brainstorming Flow Diagram Nominal Group Technique Cause & Effect

27. Brainstorming Everyone participates Go round robin and only one person speaks at a time No discussion of ideas There is no such thing as a dumb idea Pass when necessary Use “BIG” yellow sticky notes and write only 1 idea per sticky note One person assigned as scribe For a complicated issue, the session could last 30-45 minutes…or longer!

28. Use a Nominal Group Technique To focus brainstorming results An internet search on “Nominal Group Technique” Will yield many examples and methods to apply this technique Nominal Group Technique

29. Flow Diagrams Build a common understanding of a whole process Develop process thinking Improve a process Standardize a process Why is flow diagramming helpful? Week4_4

30. Week 4_5

31. Understand the root causes of a problem BEFORE you put a “solution” into place Investigate the Root Causes

32. Cause & Effect Diagrams Identify and display many different possible causes for a problem See the relationships between the many causes Helps determine which data to collect Why are cause and effect diagrams helpful? Focused problem Root cause

33. Clearly define the focused problem Use brainstorming to identify possible causes Sort causes into reasonable clusters (no less than 3, not more than 6) Label the clusters (consider people, policies, procedures, materials if you have not already identified labels) Develop and arrange bones in each cluster Check the logical validity of each causal chain How To Construct Cause & Effect Diagrams

34. Building a Cause & Effect Diagram Turnover in staff Policies People Procedures Materials Inadequate training Burnout Lack of supervision Minimal benefits No policy on staff screening Paperwork overwhelming Lack of office space “Back-biting” environment Restrictive budget Location Escorting clients to appointments and having to wait

35. Cause & Effect Diagrams Bones should not include solutions Bones should not include lists of process steps Bones include the possible causes Better understand the current situation….. Now begin to develop a change.

36. To Summarize…. Brainstorming Nominal Group Technique Flow Diagram Cause & Effect Diagram

37. Histogram Used to visualize the distribution

38. Histogram

40. Pareto Chart Chart consistencies of most frequent defects Used to locate Major sources of problems Able to use with Count and Categorical Data

41. Example Pareto Chart

42. Control Charts Used to determine if variation is chance or assignable cause Good for measuring control of variation Control needed before Change More appropriately applied to process rather than product

43. Quality-related costs Prevention costs – activities to keep unacceptable products from being generated and to keep track of the process Appraisal costs – activities to maintain control of the system Correction costs – activities to correct conditions out of control, including errors

44. Prevention costs Quality planning and engineering New products review Product/process design Process control Burn-in Training Quality data acquisition and analysis

45. Appraisal costs Inspection and test of incoming material Product inspection and test Materials and services consumed Maintaining accuracy of test equipment

46. Correction costs 1.Internal Failure Costs: – Scrap – Rework – Retest – Failure analysis – Downtime – Yield losses – Downgrading (off-specing)

47. Correction costs 2.External Failure Costs: – Complaint adjustment – Returned product/material – Warranty charges – Liability costs – Indirect costs

48. Cost of implementing quality management, accreditation and quality assurance

49. Internal and External Benefits of Quality Reduces costs Increases dependability Increases speed Boosts moral Increases customer retention Increases profit Internal BenefitsExternal Benefits Customer gets correct product or service Correct specifications Appropriate intangibles Customer satisfaction Customer retention

50. Drawbacks Long way to establish in the organisation QM design not always fit for purpose (loss of cost effectiveness) Substantial efforts Maintain system, otherwise reject it.

51. Summary Total Quality Management Quality Improvement Tools Costs related to quality Benefits/Drawbacks

52. Indeed, Allah will not change the condition of people until they change what is in themselves Indeed, Allah will not change the condition of people until they change what is in themselves

53. Improving Productivity