Lecture 3-2 / Week 3

Managing Quality

Dr. Waqas Ahmed

NBS

© 2014 Pearson Education, Inc. 6-1

 Seven Concepts of TQM
1. Continuous improvement
2. Six Sigma
3. Employee empowerment
4. Benchmarking
5. Just-in-time (JIT)
6. Taguchi concepts
7. Knowledge of TQM tools

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 Continuous Improvement
► Never-ending process of continual
improvement
► Covers people, equipment, materials,
procedures
► Every operation can be improved

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 Shewhart’s PDCA Model
Figure 6.3

4. Act 1. Plan
Implement Identify the
the plan, pattern and
document make a plan

3. Check 2. Do
Is the plan Test the
working? plan

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 Continuous Improvement
► Kaizen describes the ongoing process
of unending improvement
► TQM and zero defects also used to
describe continuous improvement

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 Six Sigma
► Two meanings
► Statistical definition of a process that is
99.9997% capable, 3.4 defects per
million opportunities (DPMO)
► A program designed to reduce defects,
lower costs, save time, and improve
customer satisfaction
► A comprehensive system for achieving
and sustaining business success

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 Six Sigma
► Two meanings
Lower limits Upper limits
2,700 defects/million
► Statistical definition of a process that is
3.499.9997%
defects/million capable, 3.4 defects per
million opportunities (DPMO)
► A program designed to reduce defects,
lower costs, save time, and improve
customer satisfaction Mean
► A comprehensive system±3for achieving
and sustaining business ±6success

Figure 6.4

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 Six Sigma Program
► Originally developed by Motorola,
adopted and enhanced by Honeywell
and GE
► Highly structured approach to process
improvement

6
► A strategy
► A discipline – DMAIC
► A set of 7 tools

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 Six Sigma
1. Defines the project’s purpose, scope, and outputs,
identifies the required process information keeping
in mind the customer’s definition of quality
2. Measures the process and collects data
3. Analyzes the data ensuring
repeatability and reproducibility DMAIC Approach
4. Improves by modifying or
redesigning existing
processes and procedures
5. Controls the new process
to make sure performance
levels are maintained

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 Implementing Six Sigma
► Emphasize defects per million opportunities
as a standard metric
► Provide extensive training
► Focus on corporate sponsor support
(Champions)
► Create qualified process improvement
experts (Black Belts, Green Belts, etc.)
► This cannot
Set stretch be accomplished without a
objectives
major commitment from top level
management

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 Employee Empowerment
► Getting employees involved in product and
process improvements
► 85% of quality problems are due
to process and material
► Techniques
1) Build communication networks
that include employees
2) Develop open, supportive supervisors
3) Move responsibility to employees
4) Build a high-morale organization
5) Create formal team structures
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 Quality Circles
► Group of employees who meet
regularly to solve problems
► Trained in planning, problem
solving, and statistical methods
► Often led by a facilitator
► Very effective when done properly

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 Benchmarking
Selecting best practices to use as a
standard for performance
1. Determine what to benchmark
2. Form a benchmark team
3. Identify benchmarking partners
4. Collect and analyze benchmarking
information
5. Take action to match or exceed the
benchmark

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 Best Practices for Resolving
Customer Complaints
Table 6.3
BEST PRACTICE JUSTIFICATION
Make it easy for clients to complain It is free market research
Respond quickly to complaints It adds customers and loyalty
Resolve complaints on first contact It reduces cost
Use computers to manage complaints Discover trends, share them, and align
your services
Recruit the best for customer service It should be part of formal training and
jobs career advancement

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 Internal Benchmarking
▶ When the organization is large enough
▶ Data more accessible
▶ Can and should be established in a
variety of areas

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 Just-in-Time (JIT)
Relationship to quality:
► JIT cuts the cost of quality
► JIT improves quality
► Better quality means less
inventory and better, easier-to-
employ JIT system

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 Just-in-Time (JIT)
► ‘Pull’ system of production scheduling
including supply management
► Production only when signaled
► Allows reduced inventory levels
► Inventory costs money and hides
process and material problems
► Encourages improved process and
product quality

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 Taguchi Concepts
► Engineering and experimental design
methods to improve product and
process design
► Identify key component and process
variables affecting product variation
► Taguchi Concepts
► Quality robustness
► Quality loss function
► Target-oriented quality

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 Quality Robustness

► Ability to produce products uniformly in

adverse manufacturing and
environmental conditions
► Remove the effects of adverse
conditions
► Small variations in materials and
process do not destroy product quality

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 Quality Loss Function
► Shows that costs increase as the
product moves away from what the
customer wants
Target-
► Costs include customer oriented
dissatisfaction, warranty quality
and service, internal
scrap and repair, and costs to
society
► Traditional conformance
specifications are too simplistic
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 Quality Loss Function
High loss
L = D2C
Unacceptable where
Loss (to L= loss to
producing Poor society
organization,
customer, Fair D2 = square of
and society) the distance from
Good target value
Best C = cost of
Low loss Target-oriented quality
deviation
yields more product in
the “best” category
Target-oriented quality
brings product toward
Frequency the target value
Conformance-oriented
quality keeps products
within 3 standard
deviations
Lower Target Upper
Specification Figure 6.5
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