MANAGEMENT
January 2014
Quality Management
QUALITY MANAGEMENT
Introduction
Philosophy & Concepts
Tools and Techniques used in Total Quality
management
International Quality Standards and Awards
January 2014
Quality Management
Literature
Quality Management for Organizational
Excellence
by David L.Goetsch and Stanley B.Davis
January 2014
Quality Management
January 2014
Quality Management
January 2014
Quality Management
What is Quality?
January 2014
Quality Management
Definition of Quality
Joseph M.Juran:"Fitness for use."
Philip B. Crosby: "Conformance to requirements.
Peter Drucker: "Quality in a product or service is not what
the supplier puts in. It is what the customer gets out and is
willing to pay for
ISO 9000: "Degree to which a set of inherent
characteristics fulfills requirements
Six Sigma: "Number of defects per million opportunities.
American Society for Quality:
a. The characteristics of a product or service that bear on its
ability to satisfy stated or implied needs;
b. A product or service free of deficiencies.
January 2014
Quality Management
Quality
Quality has been defined in a number of ways.
When viewed from a consumers perspective,
it means meeting or exceeding customer
expectations.
..providing him with superior value
January 2014
Quality Management
Dimensions of Quality
Dimension
Performance
Features
Conformance
Reliability
Durability
Serviceability
Response
Aesthetics
Reputation
January 2014
Product example
Mobile phone
Signal, Battery charge
Internet, camera,......
Workmanship
Mean-time-to-failure
Useful life
Ease of repair
Courtesy of dealer
Surface finish
Customer report ranking
Quality Management
January 2014
Quality Management
10
Total Quality
Total quality is an approach to doing business
that attempts to maximize an organizations
competitiveness through the continual
improvement of the quality of its products,
services, people, processes, and
environments.
January 2014
Quality Management
11
January 2014
Quality Management
12
Jurans trilogy
Designing and planning for Quality
Compliance, controlling and assuring
quality
Improving quality
January 2014
Quality Management
13
Jurans trilogy
Creating processes to design goods and services
to meet needs of the stakeholders (internal and
external). Understand needs of customers
Creating processes to control quality. Ensure
compliance to design criteria
Creating a systematic approach to improve
continuously. Failures must be discovered and
remedied.
=> Create functions and skills to do the things
above
January 2014
Quality Management
14
Financial trilogy
Financial planning
Annual financial and operational budgets (revenues, costs and
profits)
Financial goals for the organization and its divisions
Financial control
Evaluation of actual financial performance and taking action on
the differences
Cost control, expense control, risk management, inventory
control, etc.
Financial improvement
Improvement of financial results
Cost reduction projects, new facilities, new product
development, M &A, joint ventures, etc
January 2014
Quality Management
15
Quality planning
Establish the project and design goals
Identify the customers
Discover the customer needs
Develop the product or service features
Develop the process features
Develop the controls and transfer to operations
=> Customer customer needs- product features
process features- process control features
January 2014
Quality Management
16
Benchmarking
Brainstorming
Competitive analysis
Control charts
FMEA
Flow diagram
Process capability
Scatter diagram
Etc.
January 2014
Quality Management
17
Quality Control
Assure Repeatable and Compliant Processes
January 2014
Quality Management
18
January 2014
Quality Management
19
Quality Improvement
Create breakthroughs in Performance
January 2014
Quality Management
20
January 2014
Recognize
Define
Measure
Analyze
Improve
Control
Quality Management
21
Jurans trilogy
January 2014
Quality Management
22
January 2014
Quality Management
23
January 2014
Quality Management
24
January 2014
Quality Management
25
Strategic Management
Ethics
Partnering
Quality Culture
Customer Satisfaction
Employee Empowerment
Leadership and Change
Teambuilding and Teamwork
Effective Communication
Training
January 2014
Quality Management
26
Quality Management
27
Costs of Quality
Prevention
Appraisal and inspection
Internal failure
External failure
COPQ
January 2014
Quality Management
28
Prevention Costs
Quality Planning activities
FMEA analysis
Control Plans
Quality training
Product design Verification
January 2014
Quality Management
29
Testing product
Reviewing documents
Inspecting equipment and supplies
End of line inspection
Product audits
Etc.
January 2014
Quality Management
30
Rework on product
Scrap of non conforming product
Correcting database errors
Stocking extra parts to replace defective
components
Etc,
January 2014
Quality Management
31
January 2014
Quality Management
32
Scrap
Rework
Warranty
Customer Return
Quality Management
33
Cost of Quality
Costs
Total
Failure
100%
Quality Management
34
Cost of Quality
Cost of Quality
Quality Costs
Junk
Zone
Excess
Quality
Profit
Zone
Customer Value
of Quality
Freedom from Failures
January 2014
Quality Management
100%
35
January 2014
Quality Management
36
2,5 %
26 %
Appraisal
Internal Failure
68 %
January 2014
Prevention
External Failure
Quality Management
37
January 2014
Quality Management
38
January 2014
Quality Management
39
West Marine Recalls Folding Bicycles; Frames Can Break Causing Riders to
Fall
West Marine Jetty Express 2 and Port Runner 2 bicycle frames can break. Bikes are used in and
around docks and marinas. January 30, 2014
40
January 2014
Quality Management
41
January 2014
Quality Management
42
January 2014
Quality Management
43
January 2014
Quality Management
44
January 2014
Quality Management
45
Strategic Management
Ethics
Partnering
Quality Culture
Customer Satisfaction
Employee Empowerment
Leadership and Change
Teambuilding and Teamwork
Effective Communication
Training
January 2014
Quality Management
46
Strategic Management
Strategic management is management that bases
all actions, activities, and decisions on what is
most likely to ensure successful performance in
the marketplace.
The two major components of strategic
management are strategic planning and strategic
execution.
Part of strategic planning is thinking creatively to
eliminate sacred cows that work against
competitiveness.
January 2014
Quality Management
47
Strategic planning
January 2014
Quality Management
48
SWOT Analysis
Step 2
Step 3
Step 4
Step 5
Step 6
January 2014
(environmental assessment)
Quality Management
(action plan)
49
SWOT analysis
SWOT analysis is defined as a structured
approach to evaluating the strategic position
of a business by identifying its strengths,
weaknesses, opportunities and threats
SWOT analysis identifies the core
competencies of the organization
January 2014
Quality Management
50
Core competencies
January 2014
Quality Management
51
SWOT analysis
Opportunities
Threats
=> apply to External Factors
Strengths
Weaknesses
=> apply to Internal Factors
January 2014
Quality Management
52
SWOT example
January 2014
Quality Management
53
SWOT analysis
January 2014
Quality Management
54
Vision
January 2014
Quality Management
55
January 2014
Quality Management
56
Vision Statement JC
January 2014
Quality Management
57
Mission
January 2014
Quality Management
58
January 2014
Quality Management
59
Mission Statement JC
Exceeding Our Customers Increasing
Expectations
Customers are the reason we are in business. They
are at the core of our reputation. Our focus must
be to help them be successful.
Our Mission is founded on quality, innovation,
productivity and responsiveness.
January 2014
Quality Management
60
Guiding Principles
An organizations guiding principles establish
the framework within which it will pursue its
mission. Together, the guiding principles
summarize an organizations value system,
the things it believes are most important.
January 2014
Quality Management
61
Customer Satisfaction
Employee Engagement
January 2014
Quality Management
62
Sustainability
January 2014
Quality Management
63
January 2014
Quality Management
64
Quality Management
65
Action plan
Well defined, finite projects and activities
undertaken for the purpose of specific desired
outcomes in support of the broad objectives.
January 2014
Quality Management
66
SWOT Analysis
Step 2
Step 3
Step 4
Step 5
Step 6
January 2014
(environmental assessment)
Quality Management
(action plan)
67
Strategic Management
Strategies that organizations can adopt for gaining a
sustainable competitive advantage are
cost leadership,
differentiation, and
market-niche strategies.
Quality Management
68
Strategic Management
Integration of Quality programs in strategic
plan is important for their success
This includes annual quality goals and
subgoals
January 2014
Quality Management
69
Strategic Execution
Even the best strategic plan will serve no
purpose unless it is effectively executed.
Progress of achieving goals is measured
by:
KPIs (Key Process Indicators)
Quantitative reports on performance
Audits
January 2014
Quality Management
70
Ethics
Partnering
Quality Culture
Customer Satisfaction
Employee Empowerment
Leadership and Change
Teambuilding and Teamwork
Effective Communication
Training
January 2014
Quality Management
71
Ethics
Ethics is about doing the right thing within a
moral framework.
The most common impediment to ethical
conduct is human nature because people
tend to behave according to perceived
personal interest.
January 2014
Quality Management
72
Ethics
The Total Quality approach cannot be
successfully implemented in an organization
that fails to subscribe to high standards of
ethical behavior
January 2014
Quality Management
73
Ethics
Many of the fundamental elements of total quality
depend on trust and ethical behavior, including
communication,
interpersonal relations,
conflict management,
problem solving, teamwork,
employee involvement and empowerment, and
customer focus.
January 2014
Quality Management
74
Ethics
Sarbannes Oxley (SOX) Federal law in the US.
Top management must now individually
certify the accuracy of financial information.
Penalties for fraudulent financial activity are
much more severe
January 2014
Quality Management
75
Partnering
Quality Culture
Customer Satisfaction
Employee Empowerment
Leadership and Change
Teambuilding and Teamwork
Effective Communication
Training
January 2014
Quality Management
76
Partnering
Partnering means working together for mutual
benefit. It involves pooling resources, sharing costs,
and cooperating in ways that mutually benefit all
parties involved in the partnership.
Partnerships may be formed
internally (among departments) and
externally with suppliers, customers
January 2014
Quality Management
77
January 2014
Quality Management
78
Quality Management
79
Suppliers
Suppliers
January 2014
Customer
Customer
Quality Management
End Users
End Users
80
Quality Culture
Customer Satisfaction
Employee Empowerment
Leadership and Change
Teambuilding and Teamwork
Effective Communication
Training
January 2014
Quality Management
81
Quality Culture
One of the greatest obstacles in implementing Total Quality is the
cultural behavior
Why?
Successful Total Quality implementation requires cultural change
People do not like to change!
Resisting change is natural human behavior
Fear
Uncertainty
Loss of control
More work
Emotional transition
January 2014
Quality Management
82
January 2014
Quality Management
83
Quality Management
84
January 2014
Quality Management
85