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IS 470 Agenda - Week 1

Administrative
Confirm class roster
Confirm meeting time
Review requirements
Attendance
Participation
Homework
Presentations
Discuss course
objectives/approach
Lecture/discussion
Chapter 1 Quality Basics
The Customer

Week 3 Assignments
Homework -
Read - Ch 1
Presentations:
Organizing for
Quality

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Quality Basics

Chapter One
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Defining Quality
ASQ - quality is a subjective term for
which each person has his or her own
definition

Whats your definition?
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Defining Quality
In technical usage, quality can have
two meanings:
the characteristics of a product or service
that bear on its ability to satisfy stated or
implied needs, and
a product or service free of deficiencies


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Defining Quality - Gurus
Deming - non-faulty systems
Out of the Crisis
Juran - fitness for use
Quality Control Handbook
Crosby - conformance to
requirements
Quality is Free
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Defining Quality- Different Views
Customers view (more subjective)
the quality of the design (look, feel, function)
product does whats intended and lasts
Producers view
conformance to requirements (Crosby)
costs of quality (prevention, scrap, warranty)
increasing conformance raises profits
Governments view
products should be safe
not harmful to environment
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Stouts View


Quality =
Performance
Expectation
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Value-based Approach
Manufacturing
dimensions
Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics
Perceived quality
Service dimensions
Reliability
Responsiveness
Assurance
Empathy
Tangibles
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Our Textbook Definition
Armand Feigenbaum -
author: Total Quality Control (1961)
quality is a customer determination based
on the customers actual experience with
the product or service, measured against
his or her requirements - stated or
unstated, conscious or merely sensed,
technically operational or entirely
subjective - and always representing a
moving target in a competitive market.
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Shift to Quality
Pre-World War II 1945 1990s
Isolated
Economies
Focus on
quantity
Period of
change from
quantity to
quality
Global
Economy
Focus on
quality
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History of Quality Paradigms
Customer-craft quality paradigm:
design and build each product for a particular customer.
producer knows the customer directly.
Mass production and inspection quality paradigm:
focus on designing and building products for mass
consumption.
larger volumes will reduce costs and increases profits.
push products on the customer (limit choices).
quality is maintained by inspecting and detecting bad
products.
TQM or Customer Driven Quality paradigm:
potential customers determine what to design and build.
higher quality will be obtained by preventing problems
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Need for a New Strategy
Foreign markets have grown
Import barriers and protection are not the
answer.
Consumers are offered more choices
They have become more discriminating.
Consumers are more sophisticated
They demand new and better products.
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Why Quality Improvement?
Global Competition
Economic and political boundaries are
slowly vanishing
The 1950s slogan Built by Americans for
Americans is very far from reality in the
2000s.
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Why Quality Improvement?
On the stroke of midnight on December
31, 1992, the United States will become
the second-largest economy in the world
for the first time in a century.
Quote from a 1990 Xerox quality conference.
More than corporate profits are at risk;
the challenge is to the American
standard of living.
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Why Quality Improvement?
It pays
Less rework, fewer mistakes, fewer
delays, and better use of time and
materials
In United States today, 15 to 20% of
the production costs are incurred in
finding and correcting mistakes.
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How Do Organizations Compete?
Most common competitive measures:
Quality (both real and perceived)
Cost
Delivery (lead time and accuracy)
Other measures
safety,
employee morale,
product development (time-to-market,
innovative products)
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Contrasting Approaches
Passive /
Reactive
Setting
acceptable
quality levels
Inspecting to
measure
compliance
Proactive / Preventive
Design quality in
products and processes
Identify sources of
variation (processes
and materials)
Monitor process
performance
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The Quality Hierarchy
Inspection
Quality Control
Quality Assurance
Total Quality
Management
Incorporates QA/QC activities
into company-wide system
aimed
at satisfying the customer
Actions to insure products or
services conform to company
requirements
Operational techniques to make
inspection more efficient and to
reduce the costs of quality.
Inspect products
Prevention
Detection
SPC
SQC