Lesson 13

Introduction To Quality

quality is the ability of a product or service

to consistently meet or exceed customer
expectations

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 The Evolution of Quality
. Industrial revolution - smaller jobs, more specialization and
less responsibility for the final product
. Early 1900’s - product inspection introduced -Fredrick Winslow Taylor .
1924 - statistical control charts - W. Shewhart of Bell Laboratories .
1930, - acceptance sampling - H.F. Dodge & H.G. Roming of Bell Labs .
WWII - statistical methods began to be more widely accepted,
especially in statistical sampling techniques
. 1950’s - quality assurance, statistical quality control methods
introduced to the Japanese - W. Edwards Deming
- “cost of quality” concepts - Joseph Juran
- “total quality control” including product design and
materials - Armand Feigenbaum
. 1960’s - “zero defects” emphasize employee performance - P. Crosby
. 1970’s - quality assurance methods throughout the entire process
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 Quality – What Is It?
“The degree of excellence of a thing”
(Webster’s Dictionary)

“The totality of features and characteristics that satisfy needs” (

American Society for Quality Control – ASQ)

Fitness for consumer use – meet or exceed customer expectations

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 Quality – What Is It?

Mercedes Hyundai

Porsche Beetle
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 Dimensions of Quality
Performance - characteristics of the product or service
Aesthetics - appearance, feel, smell, taste
Special features - extra characteristics
Conformance - customer’s expectations
Safety - risk of injury or harm
Reliability - consistency of performance
Durability - useful life of the product or service
Perception - reputation Porsche
Service after the sale - handling of complaints, customer satisfaction

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 Examples Of Quality Dimensions
(Product) (Service)
Dimension Automobile Auto Repair
Performance Everything works, fit & finish All work done, at agreed price
Ride, handling, grade of Friendliness, courtesy,
materials used Competency, quickness

Aesthetics Interior design, soft touch Clean work/waiting area

Special features Gauge/control placement Location, call when ready

Convenience Cellular phone, CD player Computer diagnostics
High tech

Safety Antilock brakes, airbags Separate waiting area

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 Examples Of Quality Dimensions
(Product) (Service)
Dimension Automobile Auto Repair
Reliability Infrequency of breakdowns Work done correctly,
ready when promised

Durability Useful life in miles, resistance to Work holds up over time

rust & corrosion

Perceived Top-rated car Award-winning service

quality department

Service after Handling ofcomplaints and/or Handling of complaints

sale requests for information

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 The Determinants of Quality
Quality of Design - intention of designers to include or exclude features
in a product or service designed to meet a customer/client
need/want/requirement.- it represents the inherent value of the product
or service in the marketplace
. Poor design can result in manufacturing or service problems
. Customer disapproval
Quality conformance - the degree to which the goods or services
conform to the intent of the designers
. Requires customer education/awareness as to the
intended use of the product/service (e.g. Electrical
requirements, medication instructions, attorney advice)
Ease of use
Service after delivery

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 Fitness For Consumer Use
Quality

Producer’s Perspective Consumer’s Perspective

Quality of Conformance Quality of Design

Production • Conformance to • Dimensions Marketing
specifications • Price
• Cost

Fitness for
Consumer Use

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 Quality – What Is It?

Mercedes Hyundai

Porsche Beetle
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 The Consequences Of Poor Quality
. Loss of business
. Liability
. Productivity
. Costs

Failures will occur. The prevailing quality philosophy is that prevention is

the best cure for quality problems. (An ounce of prevention is worth a
pound of cure).

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 Costs Of Quality
When considering the “costs of quality” we must consider:

Failure costs - costs caused by defective parts, products, or faulty

services
. Internal - failures discovered during production (e.g.
rework, problems, material/product losses, downtime)
. External - failures discovered after delivery (e.g. warranty,
returned goods, liability claims, penalties)
Appraisal costs - costs of activities designed to ensure quality or uncover
defects (e.g. in-line inspection, final inspection, field testing, crash test
dummies, crumpled cars)
Prevention costs - costs of preventing defects from occurring (e.g.
training, working with vendors, quality control procedures, quality
improvement programs, extra attention in design and production)
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 Quality Guru’s
W. Edwards Deming - 14 point prescription for quality
Joseph M. Juran - stressed management methods
Armand Feigenbaum - quality as a “total field” - customer
Phillip Crosby - quality is free, zero defects
Kaoru Ishikawa - quality circles, problem solving methodology
Genichi Taguchi - cost of poor quality, robust product design

Continual Improvement 
Management Methods
Total Quality
Quality Circles
Product Design

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 Deming’s 14 Points
1 - Create constancy of 7 - Instill leadership among
purpose supervisors
2 - Adopt philosophy of 8 - Eliminate fear among
prevention employees
9 - Eliminate barriers between
3 - Cease mass inspection departments
4 - Select a few suppliers 10 - Eliminate slogans
based on quality 11 - Remove numerical quotas
5 - Constantly improve system 12 - Enhance worker pride
and workers 13 - Institute vigorous training &
6 - Institute worker training education programs
14 - Implement these 13 points

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 Quality Awards
The Malcom Baldridge Award - The Malcolm Baldrige National Quality
Award is the centerpiece of the Baldrige National Quality Program. This
award, which since 1988 has been presented annually by the President
to recognize performance excellence, focuses on an organization's
overall performance management system. It does not certify product or
service quality.

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 Categories For The Baldridge Award
Business: Manufacturing companies or subsidiaries that produce and
sell manufactured products or manufacturing processes or produce
agricultural, mining, or construction products.
Healthcare:
Education:

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 Characteristics Of A Baldridge Winner
The major characteristics of a Malcolm Baldridge Winner are
companies/organizations who have:
. formulated a vision of what they thought quality is and how
. they would achieve it.
. senior management involvement
. carefully planned and organized their quality effort to be sure it
would be effectively initiated.
. vigorously controlled the overall process.

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 Criteria For The Malcom Baldridge Award
The Baldrige Criteria for Performance Excellence is updated each
year to provide a systems perspective for understanding performance
management. They reflect validated, leading-edge management
practices against which an organization can measure itself. With their
acceptance nationally and internationally as the model for performance
excellence, the Criteria represent a common language for
communication among organizations for sharing best practices. The
Criteria are also the basis for the Malcolm Baldrige National Quality
Award process. The Criteria include leadership, strategic planning,
customer & market focus, information & analysis, human resource
development & management, process management and business
results.

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 Criteria For The Malcom Baldridge Award
Leadership - The organization’s leadership system
and senior leaders’ personal leadership
Strategic Planning - How the organization sets strategic
directions and how it develops the critical
strategies and action plans
Customer and Market Focus - How the company determines
requirements, expectations, and preferences of customers and
markets
Information and Analysis - The selection, management, and
effectiveness of use of information and data to support key company
processes and action plans, and the company’s performance
management system

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 Criteria For The Malcom Baldridge Award
Human Resource Focus - How the company enables
employees to develop and utilize their full potential,
aligned with the company’s objectives
Process Management - How key processes are designed,
implemented, managed, and improved
Business Results - The organization’s performance and improvement in
key business areas

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 Quality Awards
The Deming Prize - The Union of Japanese Scientists and Engineers
(JUSE) invited Dr. Deming to Japan in July 1950. He held a series of
lectures and seminars during which he taught the basic principles of
statistical quality control to executives, managers and engineers of
Japanese industries. His teachings made a deep impression on the
participants' minds and provided great impetus in implementing quality
control in Japan.

In appreciation, JUSE created a prize to commemorate Dr. Deming's

contribution and friendship and to promote the continued development of
quality control in Japan. The prize was established in 1950 and annual
awards are still given each year.

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 Quality Awards
Industry, regional, and company awards .
Institute of Industrial Engineers

. NASA

. European Quality Award

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 Quality Certifications
ISO - International Organization for Standardization - purpose is to
promote worldwide standards that will improve operating efficiency,
improve productivity, and reduce costs
. Truly international in scope
. Certification required by many foreign firms

ISO 9000 series - quality management and assurance

ISO 9001 ~ Suppliers and Designers
ISO 9002 ~ Production
ISO 9003 ~ Inspection and Test
ISO 9004 ~ Quality Management

ISO 14000 - environmental performance

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 ISO Accreditation
European registration
3rd party registrar assesses quality program
European Conformity (CE) mark authorized
United States 3rd party registrars
American National Standards Institute - ANSI
American Society for Quality Control - ASQ
Registrar Accreditation Board - RAB

                    
  

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 You Know It When You See It

“quality is not something you inspect into a product/service, it is the

result of the mental attitude of the person who is producing or delivering
a product/service, either you have the mental attitude or you do not … if
you do not, you can be trained to have it … some people choose to …
some do not

… at any rate, in your business careers it will be easy to spot those who
have it and those who do not … you will know it when you see it”

Hodges, 1998

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 Total Quality Management

refers to the quest for quality that

involves everyone in the organization.
Two key philosophies:
. Continual improvement
. Customer satisfaction

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 Total Quality Management
TQM may be defined as managing the entire organization so that it
excels on all dimensions of products and services that are important to
the customer.
. Marketing, sales, R&D
. Engineering
. Purchasing
. Personnel
. Management
. Packing, storing, shipping
. Customer service
Total Quality management is a broad concept rooted in the Deming
philosophy. It involves the following concepts:

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 Elements Of Total Quality Management
. Determine what customer (target market) wants
. Design a product to meet or exceed wants and make it easy to
produce and easy to use
. Design a production process to do it right the first time
. Track results and use them to guide future improvements
. Continuous improvement - get a little better each day
. Benchmarking - learn from those who do “it” best
. Employee empowerment - responsibility/authority at source
. Team approach - spirit of cooperation, shared e sig
n Pro
ces
sD
tc D esi
problem solving Pro
du gn

. Decisions based on facts rather than opinion Customer

Improvement
Continuous
Involvement
Employee
Tools
. Knowledge of Quality Tools/Methodologies Satisfaction

king

Pur
n Ma
. Supplier quality - make vendors part

chas
ing
io
Decis
of your team
Benchmarking
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 Shared Problem Solving – The Quality Circle

Organization
8-10 members
Same area Training
Presentation
Moderator Group processes
Implementation
Data collection
Monitoring
Problem analysis

Problem ID
Solution List alternatives
Problem analysis
Problem results Consensus
Cause & effect
Brainstorming
Data collection &
analysis

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 Three Sigma and Six Sigma Quality
Statistical methodologies for achieving continual process improvement
and reducing process variability

• Basically these are the same concept which are designed to

reduce process variability
– Program designed to reduce defects
– Requires the use of certain tools and techniques
• Statistically process variability (standard deviation) is such that
– Six sigma: no more than 3.4 defects per million
– Three sigma: no more than 2.7 defects per thousand

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 Three Sigma and Six Sigma Quality

Product Lower Product Upper

specification specification

1.35 ppt 1.35 ppt

1.7 ppm 1.7 ppm

Process Mean

+/- 3 Sigma

+/- 6 Sigma

ppt – parts per thousand

ppm – parts per million 13 - 31
 Three Sigma and Six Sigma Quality
Six sigma quality has gained popularity in recent years

Six sigma teams are sanctioned by top management and are

coordinated through program champions who work on the projects
management deems most likely to succeed.

Six sigma practitioners receive certifications as they gain knowledge and

proficiency in the terminology and methodology (e.g. “green” and “black”
belts.

D – Define
M – Measure
A – Analyze
I – Improve
C – Control 13 - 32
 Process Improvement Steps

Plan
Deming Wheel

Act

Do

Study

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 Process Improvement Steps
Select a
process

Document

Study/document

Evaluate

Seek ways to
Implement the
Improve it
Improved process

Design an
Improved process

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 Process Improvement Steps
Plan a change aimed at improvement
Plan
. Define the problem and establish an improvement goal
. Collect data (Process Mapping)
. Analyze the problem
Actpotential solutions
. Generate
. Choose a solution (Redesign the Process)
Do
. Implement the solution

Study/Check Do
. Monitor the solution. Did it work?

Act Study
. Institutionalize the change or abandon or do it again.
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 Process Mapping
Process Mapping involves the following steps:
Plan
. Collect information about the process, identify each step in the
process, and for each step determine:
.. The inputs and outputs, the people involved, all
Act decisions that are made
. Document such measures as time, cost, space used,
waste, employee morale, employee turnover, accidents,
safety hazards, working conditions, revenues, profits/(losses),
quality and customer satisfaction
Do
. Prepare a flowchart of the process that accurately depicts the
process with not too much or too little information
.. Make sure that key activities and decisions are
Study
represented

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 Process Mapping
Once the information is collected:
Plan
. Ask these questions about the process
.. Is the flow logical?
.. Are there any steps or activities missing?
Act
.. Are there any duplications?
. Ask these questions about each step
.. Is the step necessary?
.. Does the step add value?
.. Does any waste occur at this step?
.. Could the time be shortened?
Do
.. Could the cost to perform the step be reduced?
.. Could two (or more) steps be combined?
Study

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 Redesign The Process
Using the results of the above steps, redesign
Plan the process if
possible.
. Document the improvements; potential measures include:
.. Reductions in time, cost, space, waste, employee
Act
turnover, accidents, safety hazards, and
increases/improvements in employee morale,
working conditions, revenues/profits, quality and
customer satisfaction
Do

Study

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 7 Basic Improvement Tools
There are 7 basic tools available to assist the operations manager in the
improvement process previously described. These tools help identify
and quantify the opportunities for improvement. They include:

. Check sheets
. Flowcharts
. Scatter diagrams
. Histograms
. Pareto Analysis
. Control Charts
. Cause and effect diagrams

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 Check Sheets

A check sheet is a simple tool for recording the reasons a process may
not be performing as expected. It is a simple observational method
which organizes and determines the frequency of reasons.

Billing Errors Monday

Wrong Account

Wrong Amount

A/R Errors

Wrong Account

Wrong Amount

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 Process Flow Charts
A Process Flow Chart is a simple tool for recording the sequence of
steps and decision points in a process. The flow chart is very useful in
analyzing a process to determine the strong and weak points in the
process.

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 Process Flow Chart

It usually follows that a more

Alarm goes off detailed process flow chart will
allow for better understanding and
better decisions. The process flow
chart also identifies points where
Yes data should be collected to aid in
Sleep Late the decision making process.

No
Get Eat Go to Class
Shower
Dressed Breakfast

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 Scattergram
A scattergram is a simple graphical tool which can be used to identify
the relationship between two variables. It can prove beneficial when
setting parameters for activities within a process.

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0
0 5 10 15 20 25 30 35 40 45

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 Histogram
A histogram is a simple graphical tool which can be used to identify the
frequency of a cause of variation. The histogram is the result of the
process of identifying types of variation observed.
Number of defects

Off Smeared Missing Loose Other

center print label
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 Pareto Chart
A Pareto chart is a histogram which shows the relative importance of
problems or defects. It makes identifying and solving problems easier.
It is based on the Pareto Principle which basically says most effects
have relatively few causes and is sometimes referred to as the 80/20
rule (80% of the problems come from 20% of the causes (people,
materials, machines, etc.)
You’re a quality analyst for Corning Glass.
You’ve collected data on 100 rejected glasses:
Nicks 80
Cuts 11
Scratches 3
Porosity 3
Misc. 3

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 Pareto Chart

# of Defects
100 Pareto Charts identify the major causes
80 and suggest that if the major causes are
80 solved first the quality will improve more
60 than by solving the secondary causes.

40
20 11 3 3 3
0
Nicks Cuts Scratches Porosity Misc.
Cause
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 Control Chart
A Control Chart is a time series plot of a quality parameter used to
indicate whether a process is in or out of control. Control charts are
used to identify when a process is exhibiting random or non-random
(assignable) behavior. Out of
control
UCL

Mean

LCL

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Sample number

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 Control Chart
A Control Chart can also be used to monitor improvements in a
process.

UCL UCL
UCL

LCL
LCL
LCL
Process not Process centered Additional
centered and stable improvements
and not stable made to the process –
variability improved

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 Run Charts
A Run Chart is a tool to plot observations over a period of time.

# Defective

3.5

2.5

1.5

0.5

0
8:00 AM 8:45 AM 9:30 AM 10:15 AM 11:00 AM 11:45 AM 12:30 P M 1:15 P M 2:00 P M 2:45 P M 3:30 P M 4:15 P M 5:00 P M 5:45 P M

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 Ishikawa - Cause & Effect Diagram
A Cause & Effect Diagram (fishbone diagram)is a graphical tool used to
search for the causes of a problem. It is sometimes called a fishbone or
Ishikawa diagram.

Methods Materials
Cause
Cause
Cause
Cause
Cause Cause
Environment Effect
Cause Cause

Cause Cause
Cause Cause

People Equipment

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 Ishikawa - Cause & Effect Diagram
Personnel
Personnel
Equipment
Equipment
Passenger processing at gate
Aircraft late to gate
Late cabin cleaners
Other
Mechanical failures
Weather Unavailable cockpit crew
Delayed
Air traffic delays Late cabin crew
flight
departures
Late baggage to aircraft Poor announcement of departures
Late fuel Weight/balance sheet late
Late food service
Delayed check-in procedure
Contractor not provided
updated schedule Waiting for late passengers
Materials
Materials
Procedures
Procedures
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 Methods For Generating Ideas
There are many ideas for generating improvement ideas. Typically they
come from a collaboration of all personnel involved in the process.
Some of these include:
Brainstorming – free flow of ideas
Quality Circles – groups of interested people
conduct action oriented meetings to plan, do,
study, and act on improvement opportunities
Interviewing – technique for identifying problems
and collecting information
Benchmarking
5W2H – What, When, Where, Why, Who, How and How Much?
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 Homework
Read and understand all material in the chapter.

Discussion and Review Questions

Recreate and understand all classroom examples

Exercises on chapter web page

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