Chapter 3: Quality Management 1

Chapter 3: Quality Management
What business are you in?

CEO of GM announced, GM wasnt in the business of making cars, GM was in the business of making money. Taylor > Drucker > McNamara
According to Tom Peters from In Search of Excellence fame
Chapter 3
Quality Management
Examples
West Babylon School District

Began applying continuous improvement and quality to its administrative and education processes. TQE Applied Demings 14 Points for management to administrative process. Numerous improvements made.
Chapter 3: Quality Management 6
National Semiconductor
Early proponent of total quality

Quality circles 1981 Preventive maintenance 1982 Statistical process control 1983 Design of experiment techniques 1984 Design for manufacturing techniques 1986
continued
Second stage of quality initiatives (1990s)

Focused on customer-supplier relationships Customer satisfaction Customer score cards Process analysis Employee empowerment Team strategies Problem solving techniques Visioning
continued
Third stage

Personal mastery Shared vision Systems thinking Team learning
NCR
Produces business information processing systems Recognized need to continuously improve its products Major component of its continuous improvement program is use of statistical techniques
NCR continued
Began using statistical process control techniques in 1985 to monitor its autoinsertion operation on its printed circuit board assembly line.
Line was producing an unacceptable number of defects. Reasons included misinserted or broken parts, using the wrong parts and so on.
NCR continued
Quality engineering department established process averages, control limits and guidelines for action for out-ofcontrol conditions.

Production was stopped when out-of-control condition detected until cause identified. Random samples of 1000 insertions were collected each hour and the results plotted on a c chart. Out-of-control situations were investigated to identify the assignable cause.
NCR concluded
Learned a great deal about the autoinsertion operation using the control charts.
Problem of broken parts was traced to a specific supplier.
Because of the success of this experiment, statistical process control was implemented across the entire assembly line. NCR has since changed its approach from inspect and repair to prevent and design for quality.
Timber Companies
Because of environmental restrictions and limited quantities of large-diameter trees, many timber companies are using statistical quality control techniques to maximize the quality and quantity of finished lumber produced
14
Converting Logs into Finished Lumber

Debarked log split down the middle Split log resawed to create boards Ends of boards trimmed Boards are stacked Log debarked Boards dried in kiln for 2 to 30 days Boards are planed
Applying SPC to the Stacking Operation

Important because this determines straightness of finished lumber. Lumber stacked in layers. Separators placed between layers to form air channels and transfer weight of wood. Automated equipment used to stack lumber making it necessary to monitor the alignment of the separators.
Stacking Operation continued

Estimated cost of misplaced separator is $31.50 owing to board warping. Average sawmill handles upwards of 30,000 separators each day. Measuring board placed in front of each column of separators to monitor separator alignment. Stack of lumber contains approximately 15 columns of separators and 360 separators.
Stacking Operation concluded

Total number of misplaced separators is divided by the total number of separators in the stack of lumber and result plotted on p chart. Using p chart, workers monitor the stacking equipment and identify problems before an out-of-control situation arises.
Quality Management Perspectives
19
Quality Costs
Two primary sets of costs involved in quality

Control costs Failure costs
These costs are often as high as 15 to 35% of sales Costs often broken down into four categories
Category 1: Prevention Costs
Costs associated with trying to prevent defects and errors

Training for quality Educating suppliers Designing product for quality Designing production system for quality Preventive maintenance
Category 2: Appraisal Costs
Costs of determining current quality

Measuring and testing parts Running special test laboratories Acquiring special testing equipment Conducting statistical process control Inspecting incoming materials
22
Category 3: Internal Costs of Defects
Costs incurred when defects are found before shipment/delivery to customer.

Labor and materials going into scrap Reworking and retesting to correct defects Downtime of equipment and labor while waiting for repairs Yield losses
23
Category 4: External Costs of Defects
Costs of trying to correct defects after receipt by customer.

Lost of customer goodwill Recalls to correct problem Warranty, insurance, and legal suit settlements
24
Quality Management Philosophies
25
26
W. Edwards Deming
Major source of poor quality is variation Quality improvement the responsibility of top management All employees should be trained in use of problem solving tools and especially statistical techniques
27
Demings 14 Points
Create constancy of purpose Adopt the new philosophy Cease dependence on mass inspection End practice of awarding business on basis of price tags Improve constantly and forever Institute modern methods of training
Demings 14 Points continued

Institute modern method of supervision Drive out fear Breakdown organizational barriers Eliminate arbitrary numerical goals Eliminate work standards and quotas Remove barriers that reduce pride of workmanship
Demings 14 Points continued

Institute a vigorous program of education and training Push the other 13 points everyday
30
Joseph Juran
Joseph Juran
Quality Control Handbook (1951) Quality Trilogy
Quality Planning Quality Control Quality Improvement
Need to place more emphasis on planning and improvement

Joseph Juran continued
Organizations move through 4 phases

1. Minimize prevention and appraisal costs results in increased external failure costs 2. Increase appraisal costs finds defects sooner and raises internal costs 3. Process control introduced increasing appraisal costs but lowering internal and external failure costs 4. Prevention costs increased in effort to lower total quality costs
Phillip Crosby
34
Philip B. Crosby
Quality is conformance to requirements, not elegance Better to produce item right the first time than to try to inspect quality in Quality at the source - responsibility shifted from quality control department to workers
Total Quality Management (TQM)

Quality problems do not exist, rather organizations have functional problems Zero defects only meaningful performance standard Cost of quality the only performance measure
36
cavorite-lis n GET f tg/stores/d communit rate-item cust-rec just-say-no true m/justsay
Economic Control of Quality of Manufactured Product (1931)
37
History of TQM
Dr. Shewart began using statistical control at the Bell Institute in 1930s Military standards developed in 1950s After World War II, Japanese Union of Scientist and Engineers began consulting with Deming Deming Prize introduced in Japan in 1950
History of TQM continued

Juran writes Total Quality Control 1951 Juran makes first trip to Japan in 1954 Quality Japans national slogan in 1956 First quality circles created in 1957 10,000 quality circles by 1966 100,000 quality circles by 1977 First U.S. quality circle 1974
Five Steps in TQM

Determine what customers want Develop products and services Develop production system Monitor the system Include customers and suppliers
40
New Responsibilities of Quality Control Department

Training employees how to control quality Conducting random quality audits Consulting on quality problems Determining cost of quality Helping implement quality control ideas Overseeing final test of finished goods
Quality Circles
Focus on all problems facing workers Composed of natural work groups Not limited to shop employees Usually spend couple hours per week on company time analyzing problems
42
Quality Tools
Process analysis Runs chart Control chart Pareto chart Histogram
Scatter diagram Fishbone chart Presentation skills Analysis skills Brainstorming
43
Tools for Quality Control
44
Tools for Quality Control

continued
45
Insufficient Time Spent Covering Curriculum
46
Taguchi Methods
Design for Manufacturability (DFM) Procedure for statistical testing to determine best combination of product and transformation system design that will make output relatively independent of normal fluctuations in the production system
Quality Function Deployment (QFD)
Tools for helping translate customer desires directly into product service attributes.
48
Benchmarking
Comparing an organizations performance to performance of other organizations.
49
Purposes for Benchmarking

Comparing an organizations performance to the best organizations performance Comparing an organizations business processes with similar processes Comparing products and services Identifying best practices to implement Projecting trends
Steps in Benchmarking
Preparing for the study
obtaining top management support published data original research
Collecting data
Using what was learned to improve organizational performance

Benchmarking Goals
Learning from experiences of others Determining how organization is performing relative to the best Helping to prioritize improvement efforts
developing stretch goals overcoming complacency within organization

Quality in Services
Measuring is difficult Training in standard procedures often used to improve quality One way to measure quality of services is to use customer satisfaction surveys J.D. Power and Associates uses surveys to rate domestic airlines, hotel chains, and rental car companies.
Rating the Performance of Domestic Airlines

On-time performance (25%) Airport check-in (11%) Courtesy of flight attendants (11%) Seating comfort (11%)
54
Service Defections
Organizations should monitor customer defections
feedback from defecting customers can be used to identify problem areas can determine what is needed to win them back changes in defection rate can be used as early warning signal
Quality Awards/Certifications
56
Deming Prize Criteria
Policies and objectives Operation of the organization Education Information Management Analysis
Standardization Control Quality assurance Results Future plans
57
2001 Malcolm Baldrige Award Criteria
Leadership (120 points)

organizational leadership public responsibility and citizenship
Strategic planning (85 points)
strategy development process strategy deployment
58
2001 Malcolm Baldrige Award Criteria continued
Customer and market focus (85 points)

customer and market knowledge customer relationship and satisfaction
Information and analysis (90 points)
measurement and analysis of organizational performance information management

Human resource focus (85 points)

work systems employee education, training, and development employee well-being and satisfaction
60
Process management (85)

product and service processes business processes support processes
61
Business results (450 points)

Customer-focused results financial and market results human resource results organizational effectiveness results
62
ISO 9000
Guidelines for designing, manufacturing, selling, and servicing products. Selecting an ISO 9000 certified supplier provides some assurance that supplier follows accepted business practices in areas covered by the standard
Elements of ISO 9000
Management Responsibility Quality System Contract Review Design Control Document and Data Control Purchasing Control of Customer Supplied Product Product Identification and Traceability Process Control Inspection and Testing
Control of Inspection, Measuring, and Test Equipment Inspection and Test Status Control of Nonconforming Product Corrective and Preventive Action Handling, Storage, Packaging, Preservation, and Delivery Internal Quality Audits Training Servicing Statistical Techniques
64
ISO 14000
Series of standards covering environmental management systems, environmental auditing, evaluation of environmental performance, environmental labeling, and life-cycle assessment. Intent is to help organizations improve their environmental performance through documentation control, operational control, control of records, training, statistical techniques, and corrective and preventive actions.
65
Process Capability
66
Process Capability
TQMs emphasis on making it right the first time has resulted in organizations emphasizing the ability of a production system to meet design specifications rather than evaluating the quality of outputs after the fact with acceptance sampling. Process capability measures the extent to which an organizations production system can meet design specifications.
Engineering Tolerance Versus Process Capability
68
Process Capability Depends On:

Location of the process mean. Natural variability inherent in the process. Stability of the process. Products design requirements.
69
Natural Variation Versus Product Design Specifications
70
Process Capability Index

Cp product's design specificat ion range USL - LSL 6 standard deviations of the production system 6
Cp < 1: process not capable of meeting design specs Cp > 1: process capable of meeting design specs As rule of thumb, many organizations desire a Cp index of at least 1.5. Six sigma quality (fewer than 3.4 defective parts per million) corresponds to a Cp index of 2.
Effect of Production System Variability on Cp
72
Statistical Quality Control
73
Chance Versus Assignable Variation

Chance variation is variability built into the system. Assignable variation occurs because some element of the system or some operating condition is out of control. Quality control seeks to identify when assignable variation is present so that corrective action can be taken.
Control Based on Attributes and Variables

Inspection for Variables: measuring a variable that can be scaled such as weight, length, temperature, and diameter. Inspection of Attributes: determining the existence of a characteristic such as acceptable-defective, timely-late, and right-wrong.
Control Charts
76
Control Charts
Developed in 1920s to distinguish between chance variation in a system and variation caused by the systems being out of control - assignable variation.
77
Control Charts continued

Repetitive operation will not produce exactly the same outputs. Pattern of variability often described by normal distribution. Random samples that fully represent the population being checked are taken. Sample data plotted on control charts to determine if the process is still under control.
78
Control Chart with Limits Set at Three Standard Deviations
79
Control Charts for Variables
80
Two Control Charts

Sample Means Chart Range Chart
81
Sample Data of Weights of Tacos (ounces)

Sample 1 2 3 Scenario 1 4, 5, 6 6, 7, 8 7, 8, 9 Scenario 2 4, 5, 6 3, 5, 7 2, 5, 8
82
Analysis of Scenario 1
Sample 1 2 3 Mean 5 7 8 Range 2 2 2
Sample means show problem having increased from 5 ounces to 8 ounces. Sample ranges have not changed from sample to sample.
Analysis of Scenario 2
Sample 1 2 3 Mean 5 5 5 Range 2 4 6
Sample ranges show problem having increased from 2 ounces to 6 ounces. Sample means have not changed from sample to sample.
Patterns of Change in Process Distributions
85
Control Limits
Sample Means Chart:
UCL X X A 2 R LCL X X A 2 R
Range Chart:
UCL R D 4 R LCL R D 3 R
Calculating the Grand Mean and the Average Range

X X N R R N
87
Mean Age of Ice Cream
88
Range in Ice Cream Age
89
Control Charts for Attributes
90
Fraction-defective (p) Charts

total number of defects p total number of units sampled
p (1 p ) n
UCL p p z p LCL p p z p
Number-of-defects (c) Charts

number of incidents observed c number of units sampled
c c
UCL c c z c LCL c c z c

Chapter 3: Quality Management 1

Diunggah oleh

Informasi Dokumen

Deskripsi Asli:

Judul Asli

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

Chapter 3: Quality Management 1

Diunggah oleh

Hak Cipta:

Format Tersedia

Chapter 3: Quality Management

What business are you in?

According to Tom Peters from In Search of Excellence fame