Quality Management

Quality Specifications
• Design quality: Inherent value of the product in the
marketplace
– Dimensions:
• Performance,
• Features,
• Reliability/Durability,
• Serviceability,
• Aesthetics,
• Perceived Quality

• Conformance quality: Degree to which the product or

service design specifications are met
Costs of Quality

Cost of quality falls into Appraisal Costs

two categories
1. cost of achieving good
quality

External Failure Costs of

Costs Quality Prevention Costs

2. Cost of poor quality

When Cost of achieving
good quality increases, the
Internal Failure cost of poor quality
Costs
declines
Costs of Quality
 Appraisal costs
– Inspection and testing of purchased materials
– Inspection and testing of products
 Prevention costs
– Training of employees in quality
– Quality planning activities, process & product design cost
 Internal failure costs
– Costs of scrap and rework, downtime costs
– Costs of analyzing failures
 External failure costs
– Costs of warrantees, lost sales
– Costs of liabilities
Six Sigma Quality

• A philosophy and set of methods companies use to

eliminate defects in their products and processes

• It seeks to reduce variation in the processes that

lead to product defects
Six Sigma Quality: DMAIC Cycle

• Define, Measure, Analyze, Improve, and Control (DMAIC)

• Overall focus of the methodology is to understand and

achieve what the customer wants

• A 6-sigma program seeks to reduce the variation in the

processes that lead to these defects

• DMAIC consists of five steps….

Six Sigma Quality: DMAIC Cycle (Continued)

1. Define (D) Customers and their priorities

2. Measure (M) Process and its performance

3. Analyze (A) Causes of defects

4. Improve (I) Remove causes of defects

5. Control (C) Maintain quality

• Define
– Identify customer’s priority?
– Identify CTQ (critical-to-quality) characteristic?
• Measure
– Determine how to measure the process & its performance?
– What are acceptable limits on this measure?
• Analyze
– Determine most likely causes of the defects
– Identify key variables generating process variation
• Improve
– Identify means to improve the defects
– Modify the process to stay within limits
• Control
– Maintain the variation within control
 Seven Quality Control Tools
• Pareto Analysis • Scatter Diagram
• Flow Chart • SPC Chart
• Check Sheet • Cause-and-Effect Diagram
• Histogram
 Pareto Analysis
It is a Method of identifying the causes of poor quality. It Can
be used to find when 80% of the problems may be attributed
to 20% of the causes.

Correcting few major problems may result in greater

improvement in quality
NUMBER OF
CAUSE DEFECTS PERCENTAGE

Poor design 80 64 %
Wrong part dimensions 16 13
Defective parts 12 10
Incorrect machine calibration 7 6
Operator errors 4 3
Defective material 3 2
Surface abrasions 3 2
125 100 %
 70
(64)
60 Pareto Chart
Percent from each cause
50

40

30

20
(13)
(10)
10 (6)
(3) (2) (2)
0

Causes of poor quality

 Flow Chart
It enables everyone involved to have a clear picture of how a specific
Operation works and helps in better understanding the process.

Start/ Operation Operation Decision Operation

Finish

Operation Operation

Decision Start/
Finish
Histogram
Can be used to identify the frequency of quality
defect occurrence and display quality performance.

20

15

1
0

0
1 2 6 13 10 16 19 17 12 16 2017 13 5 6 2 1
 Check Sheet
It is a fact finding tool that can be used to collect data about
quality problems.
It Can be used to keep track of defects

COMPONENTS REPLACED BY LAB

TIME PERIOD: 22 Feb to 27 Feb 2002
REPAIR TECHNICIAN: Bob

TV SET MODEL 1013

Integrated Circuits ||||
Capacitors |||| |||| |||| |||| |||| ||
Resistors ||
Transformers ||||
Commands
CRT |
 Scatter Diagram
It can be used to illustrate the relationships between quality
behavior and other variables.

X
 Control Charts

It can be used to monitor ongoing production process

quality and quality conformance to stated standards of
quality.

1020
1010 UCL
1000
990
980 LCL
970
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
 Cause-and-Effect Diagram
It can be used to systematically track backwards to find a
possible cause of a quality problem (or effect).

Measurement Human Machines

Faulty
testing equipment Poor supervision Out of adjustment

Incorrect specifications Lack of concentration Tooling problems

Improper methods Inadequate training Old / worn

Quality
Inaccurate Problem
temperature
control Defective from vendor Poor process design
Ineffective quality
Not to specifications management
Dust and Dirt Material- Deficiencies
handling problems in product design

Environment Materials Process

 Cause-and-Effect Diagram

• It is a graphical description of the elements of a specific

quality problems and the relationship between those
elements.

• It is also called “fishbone” diagram or “Ishikawa”

diagram
Six Sigma Roles and Responsibilities

1. Executive leaders must champion the process

of improvement
2. Corporation-wide training in Six Sigma
concepts and tools
3. Setting stretch objectives for improvement
4. Continuous reinforcement and rewards
Total Quality Management (TQM)
• Total quality management is defined as managing the
entire organization so that it excels on all dimensions of
products and services that are important to the
customer
 Culture of Total Quality Management
 Participative management
– Create proper cultural environment
– Promote team concepts
– Change of attitude by management and labor
– Company goals versus individual goals
– Have a long-term focus
 TQM is based on an integrated whole
– All departments
– All functions
– All people in the company
 Elements of TQM
 Customer focus
– Everyone has a customer that must be satisfied
– Internal customers are as important as external ones
– The customer defines quality requirements

 Employee empowerment
– Freedom to meet customer’s needs and expectations
– Acceptance of responsibility for success of the business
– They understand the process best
– Must be given adequate training
 Elements of TQM
 Continuous improvement
– No process is perfect so strive to improve it
– Listen to the customer and incorporate feedback
– Make suggestions for improvement

 Benchmarking
– Collect data (internally and externally) to measure
performance
– Measurement helps identify improvement opportunities
ISO 9000 and ISO 14000

• Series of standards agreed upon by the International

Organization for Standardization (ISO)
• Adopted in 1987
• More than 160 countries
• A prerequisite for global competition?
• ISO 9000 an international reference for quality, ISO
14000 is primarily concerned with environmental
management
Three Forms of ISO Certification

1. First party: A firm audits itself against ISO 9000

standards

2. Second party: A customer audits its supplier

3. Third party: A "qualified" national or international

standards or certifying agency serves as auditor
External Benchmarking Steps

1. Identify those processes needing

improvement

2. Identify a firm that is the world

leader in performing the process

3. Contact the managers of that

company and make a personal visit
to interview managers and workers

4. Analyze data