Quality and HRM Lecture 1
Quality and HRM Lecture 1
PP Sengupta Lecture 1
Contact me at
Email : [email protected] Mobile : 9433095778 My profile :
Chief General Manager ( Operations) , Coal India Ltd at Kolkata for 6 years, 36 years in SCM and operations . Worked in World Bank projects as procurement lead Black Belt certification , six sigma Qualified lead assessor , ISO 9000 Certified TPM practitioner , Japanese Institute of Plant Engineers
2
DEFINITIONS OF QUALITY
A degree of excellence [the Concise Oxford Dictionary] The totality of features and characteristics that bear upon the ability of a product or service to satisfy a given need [British Standard 4778] The total composite product and service characteristics of marketing, engineering, manufacture and maintenance through which the product and service will meet the expectations of the customer [Dr Armand V Feigenbaum]
3
PERCEPTIONS OF QUALITY
JAPAN
SONY, TOYOTA
GERMANY
USA UK
BMW, MERCEDES
WATCHES
SWITZERLAND
MCDONALDS
TESCO ACER
TAIWAN
DEFINITIONS OF QUALITY
Customer's expressed and implied requirements are met fully the totality of features and characteristics of a product or service that bears on its ability to meet a stated or implied need [ISO, 1994], fitness for use [Dr. Joseph M Juran, 1988], conformance to requirement [Philips B Crosby, 1979].
Definitions of Quality
Fitness for use (Juran) Conformance to requirements (Crosby) Degree of excellence Performance exceeding expectations (Q = P/E) The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs ANSI/ASQ 6
Defining Quality
ASQ (American Society for Quality): quality is a subjective term for which each person has his or her own definition www.asq.org
7 7
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
8 8
9 9
Product-Based Definition
Quality is found in the components and attributes of a product.
User-Based Definition
If the customer is satisfied, the product has good quality.
10
Stouts View
Quality =
Performance Expectation
11
Extended definitions
Quality meaning getting everyone to do what they have agreed to do and to do it right the first time is the skeletal structure of an organization, finance is the nourishment, and relationships are the soul Crosby extra-ordinary customer satisfaction or delighting the customers by extra little things
12
Customer-based definitions
Edwards [1968] Quality consists of the capacity to satisfy wants... Gilmore [1974] Quality is the degree to which a specific product satisfies the wants of a specific consumer. Kuehn & Day [1962] In the final analysis of the marketplace, the quality of a product depends on how well it fits patterns of consumer preferences. Juran [1988] Quality is fitness for use. Oakland [1989] The core of a total quality approach is to identify and meet the requirements of both internal and external customers. 13
Value-based definitions
Broh [1982] Quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost. Feigenbaum [1983] Quality is the degree to which a specific product conforms to a design or specification Newell & Dale [1991] Quality must be achieved in five basic areas: people, equipment, methods, materials and the environment to ensure customers need are met. Kanji [1990] Quality is to satisfy customers requirements continually; TQM is to achieve quality at low cost by involving everyones daily commitment.
14
Producers view
conformance to requirements (Crosby) costs of quality (prevention, scrap, warranty) increasing conformance raises profits
15
16
Quality of design
designing quality characteristics into a product or service A Mercedes and a Ford are equally fit for use, but with different design dimensions
17
18
Meaning of Quality
Meaning of Quality
Producers Perspective
Consumers Perspective
Quality of Conformance
Production Conformance to specifications Cost
Quality of Design
Quality characteristics Price Marketing
4. Consistency
7. Responsiveness
Features
extra items added to basic features, such as a stereo CD or a leather interior in a car
Reliability
probability that a product will operate properly within an expected time frame; that is, a TV will work without repair for about seven years
23
Conformance
degree to which a product meets preestablished standards
Durability
how long product lasts before replacement
Serviceability
ease of getting repairs, speed of repairs, courtesy and competence of repair person
24
Safety
assurance that customer will not suffer injury or harm from a product; an especially important consideration for automobiles
Perceptions
subjective perceptions based on brand name, advertising, and the like
25
Completeness:
Is everything customer asked for provided? Is a mail order from a catalogue company complete when delivered?
26
Consistency
Is the same level of service provided to each customer each time? Is your newspaper delivered on time every morning?
27
Accuracy
Is the service performed right every time? Is your bank or credit card statement correct every month?
Responsiveness
How well does the company react to unusual situations? How well is a telephone operator able to respond to a customers questions?
28
Empathy
Caring, individual attention paid to customers by the service firm.
29
Meaning
Primary product characteristics Secondary characteristics added features
Conformance
Reliability Durability Service
Response
Aesthetics Reputation
Human-to-human interface
Sensory characteristics Past performance, ranking first
Quality dimensions are independent focus on a few dimensions (e.g. Japanese cars reliability, conformance, and aesthetics) 30
Historical Review
Middle age Craft Guilds (training) Industrial Revolution Specialization of labor Decline in workmanship, product still not complicated still 100% inspection 1924 Walter Shewhart developed statistical chart (Book: Economic Control of Quality of Manufactured Product) Dodge & Romig developed acceptance sampling as a substitute for 100% inspection 1942 - US Managers failed to recognize value of SQC 1946 ASQC (now ASQ) was formed
32
Historical Review
1950 William Edwards Deming lectures CEOs in Japan on SQC 1954 Joseph Juran went to Japan Managements responsibility for quality 1960 Quality Control Circle (QCC) formed in Japan quality improvement 1980s US Quality Movement, TQM Concepts published
33
Historical Review
Late 1980s automotive industry emphasize SPC, suppliers required to use Malcolm Balridge Award established (to measure TQM implementation) Taguchi method, Design of Experiments (DOE) 1990s ISO 9000 series became Global QA std., QS 9000 introduced by automotive industry customer satisfaction ISO 14000 2000 New ISO 9000:2000 version, Six Sigma Program introduced information 34 technology
Shift to Quality
Pre-World War II
1945
1990s
35
The journey
Six Sigma Quality Management Systems
1930
1950
1970
1980
1990
2000
36
SPC
Process
N1
C
37
Quality Gurus
Walter Shewart
In 1920s, developed control charts Introduced the term quality assurance
W. Edwards Deming
Developed courses during World War II to teach statistical quality-control techniques to engineers and executives of companies that were military suppliers After the war, began teaching statistical quality control to Japanese companies
Joseph M. Juran
Followed Deming to Japan in 1954 Focused on strategic quality planning
38
Philip Crosby
In 1979, emphasized that costs of poor quality far outweigh the cost of preventing poor quality In 1984, defined absolutes of quality management conformance to requirements, prevention, and zero defects
Kaoru Ishikawa
Promoted use of quality circles Developed fishbone diagram Emphasized importance of internal customer
39
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.
40
W. Edwards Deming
Focus on bringing about improvements in product and service quality by reducing uncertainty and variability in goods and services design and associated processes (the beginning of his ideas in 1920s and 1930s). Higher quality leads to higher productivity and lower costs.
Commitment
Point 2: Learn the Philosophy Point 3: Understand Inspection Point 4: Stop Making Decisions Purely on
Point 5: Improve Constantly and Forever Point 6: Institute Training Point 7: Institute Leadership
42
43
Demings 14 Points
1. 2. 3. 4. Create constancy of purpose Adopt philosophy of prevention Cease mass inspection Select a few suppliers based on quality 5. Constantly improve system and workers
44
1. Plan
Identify problem and develop plan for improvement.
3. Study/Check
Assess plan; is it working?
2. Do
Implement plan on a test basis.
47
Plan: study current situation Do: implement plan on trial basis Study: determine if trial is working correctly Act: standardize improvements
48
49
51
52
Concurrent engineering
The simultaneous performance of product and process design activities. Has resulted in improved quality and faster speed to market for new products.
53
Redundancy
Is applied so that a back up system can take over for the failed primary system.
54
56
Inputs
Conversion Process
Outputs
Customers
Feedback
Controlling
57
58
59
Dependability
Quality
60
Figure 1.5
62
63
Relationship Management
Directing attention toward satisfying and delivering value to the customer.
64
Organization
Offering Offering Offering Payment
Intermediary
Payment
Payment
Customer
65
66
67
Improve Quality
Productivity Improves
Stay in
Business
Provide Jobs
and More Jobs
68
69
Cost of Quality
Basic Economic Quality Level Model
Cost
Total Quality Costs = Sum of Losses and Gains
Figure 1.9
Quality
70
Related Concepts
Employee Empowerment Organizational Design Job Analysis 360-degree evaluation Total Quality Human Resources Management
71
Organizational Design
Human resources managers are involved in many aspects of organizational design, such as the design of reward systems, pay systems, organizational structure, compensation, training mechanisms, and employee grievance arbitration.
Job Analysis
Involves collecting detailed information about a particular job.
72
Design team formation and management Off-line experimentation Reliability/durability product testing
75
76
77
78
Contingency Approach
Definitions and dimensions of quality applied within an organization will, and should vary. Dimensions of quality will depend on the environment in which a company operates. Provides flexibility to managers in pursuing quality.
79
Incorporates QA/QC activities into company-wide system aimed at satisfying the customer
Detection
SQC
Inspection
81
Quality Control
QC the use techniques and activities to achieve, sustain and improve quality of products or service. It integrates these related techniques and activities: Specifications of what is needed Design of the products/service to meet specs. Production or installation to meet full intent of specs. Inspection to determine conformance to specifications Review usage to provide information for revision of specs. if needed The aim should be towards quality 82 improvement
1. 2. 3. 4. 5.
Quality Assurance
All those planned or systematic actions necessary to provide adequate confidence that a product or service will satisfy given requirements for quality Need systems and procedures to ensure consistency in methods for producing products
83
84
Design Engineering
Procurement
(Purchasing)
Production
Process Design
85
86
Principles of TQM
Customer-oriented Leadership Strategic planning Employee responsibility Continuous improvement Cooperation Statistical methods Training and education
87
TQM and
Partnering
a relationship between a company and its supplier based on mutual quality standards
Customers
system must measure customer satisfaction
Information Technology
infrastructure of hardware, networks, and software necessary to support a quality program
88
89
Quality Circle
Organization
8-10 members Same area Supervisor/moderator
Presentation
Implementation Monitoring
Training
Group processes Data collection Problem analysis
Solution
Problem results
Problem Identification
List alternatives Consensus Brainstorming
Problem Analysis
Cause and effect Data collection and analysis
90
Quality Management
Six Sigma
Defects are any mistakes or errors that are passed on to the customer (many people also use
the term nonconformance).
91
Quality Management
Six Sigma The Six Sigma concept characterizes quality performance by defects per million opportunities (dpmo), computed as DPU 1,000,000 opportunities for error (or, as is often used in services, errors per million opportunities epmo).
92
Quality Management
Six Sigma
A DPU measure might be lost bags per customer. However, customers may have different numbers of bags; thus the number of opportunities for error is the average number of bags per customer.
If the average number of bags per customer is 1.6, and the airline recorded 3 lost bags for 8,000 passengers in one month (note: 12,800 opportunities for error in one month), then
epmo = (3/8,000 DPU) 1,000,000/1.6 = 234.375
93
Quality Management
94
95
nonconforming goods and services from being made and reaching the customer.
ascertaining quality levels through measurement and analysis of data to detect and correct problems.
96
a result of unsatisfactory quality that is found before delivery of good or service to the customer. poor-quality goods or services reach the customer.
97
3. Checksheets: simple tools for data collection, 4. Histograms: graphically represent frequency of
values within a specified group.
98
6. Cause-and-Effect Diagrams: represent chain of relationships; often called a fishbone diagram. 7. Scatter Diagrams: graphical component of
regression analysis.
99