Slide 18 Dimensions of QualityElements of TQMMalcolm Baldridge National Quality AwardMalcolm Baldridge Award WinnersISO 9000Slide 7Slide 8Costs of QualityComponents of QualityVoice of the Customer: Linking Customer Needs to Business ProcessesVoice of the Customer: Quality Function DeploymentHouse of QualityLinked Houses From Customer To ManufacturingBenefits of QFDMore New Product Development ToolsValue Analysis/Value EngineeringRobust Quality: Taguchi’s View of Cost of VariabilityQuality & the Voice of the Customer: Key Learning ObjectivesSlide 20Process CapabilityQuality Wireless (A): CapabilitySlide 23What is Process Improvement?Continuous Improvement: PDCA Cycle (Deming Wheel)Quality Wireless (A): Checking for ImprovementSlide 27Has Process Performance Changed? Quality Wireless (B)Performance of Inventory ManagerStatistical Process Control: Source of VariabilityVarious Patterns in Control ChartsSPC – Quality Wireless (B)Slide 33SPC – Setting Control LimitsControl Charts & Voice of the Process: Key Learning ObjectivesSlide 36Why 6-Sigma?Slide 38Why 6-Sigma? Robustness to Mean ShiftsWhy 6-Sigma? 6-Sigma Quality at FlyrockProcess Capability: Sigma CapabilityImpact of Mean ShiftWhy 6-Sigma? Rapid DetectionImproving Process CapabilityKey Learning Objectives: SPCS. Chopra/Operations/Quality 1Operations Management:Process Quality & Improvement ModuleQuality & the Voice of the Customer»What is Quality?»Quality Programs in practice»Voice of the CustomerProcess Capability and Improvement»Process Capability»Checking for Improvement (Quality Wireless)Control Charts & Voice of the Process»Statistical Process Control (SPC)»Quality Wireless (B)Why 6-Sigma?»Flyrock TiresS. Chopra/Operations/Quality 28 Dimensions of QualityPerformanceFeaturesServiceabilityAestheticsPerceived QualityReliabilityConformanceDurabilityQ of designQ of process conformance to design = process capabilityS. Chopra/Operations/Quality 3Elements of TQMManagement by factCross-functional (process) approachCulture and leadership–Customer focus–Employee focus–High performance focus»Continuous improvement»BenchmarkingExternal alliances - the value chainSource: Eitan ZemelS. Chopra/Operations/Quality 41 Leadership 1102 Strategic Planning 80–Strategy Development Process3 Customer and Market Focus 804 Information and Analysis 805 Human Resource Development and Management 1006 Process Management 100–Product and Service Processes –Support Processes –Supplier and Partnering Processes7 Business Results 450TOTAL POINTS 1000Malcolm Baldridge National Quality AwardS. Chopra/Operations/Quality 5Malcolm Baldridge Award WinnersAmes Rubber Corporation (1993)Armstrong World Industries Building Products Operations (1995)AT&T Consumer Communications Services (1994)AT&T Network Systems Group (1992)AT&T Universal Card Services (1992)Cadillac Motor Car Company (1990)Chugach School District (2001)Clarke American Checks (2001)Corning Telecommunications Products Division (1995)Dana Corporation (2000)Eastman Chemical Company (1993)Federal Express Corporation (1990)Globe Metallurgical Inc. (1988)Granite Rock Company (1992)GTE Directories Corporation (1994)IBM Rochester (1990)Karlee Company, Inc. (2000)Los Alamos National Bank (2000)Marlow Industries (1991)Milliken & Company (1989)Motorola Inc. (1988)Operations Management International (2000)Pal’s Sudden Service (2001)Pearl River School District (2001)The Ritz-Carlton Hotel Company (1992)Solectron Corporation (1991)Texas Instruments Incorporated - Defense Systems & Electronics Group (1992)University of Wisconsin-Stout (2001)Wainwright Industries, Inc. (1994)Wallace Co., Inc. (1990)Westinghouse Electric Corporation - Commerical Nuclear Fuel Division (1988)Xerox Corporation - Business Products & Systems (1989)Zytec Corporation (1991)Last Updated: May 28, 2002S. Chopra/Operations/Quality 6ISO 9000Series of standards agreed upon by the International Organization for Standardization (ISO)Adopted in 1987More than 100 countriesA prerequisite for global competition?ISO 9000: “document what you do and then do as you documented.”Source: Adapted from Chase & Aquilano Design Procurement Production Final test Installation Servicing ISO 9003ISO 9002ISO 9001S. Chopra/Operations/Quality 7S. Chopra/Operations/Quality 8S. Chopra/Operations/Quality 9Costs of QualityCost of Conformance–Cost of Appraisal–Cost of PreventionCost of Non-Conformance–Cost of Internal Failure–Cost of External Failure100:110:11:1ProductDesignProcessDesignProductionImproveProductQuality LeverBenefits of Building Q in EarlyLow VisibilityRewardHigh VisibilityRewardTimeS. Chopra/Operations/Quality 10Components of QualityVoice of the customer–Customer Needs–Quality of DesignVoice of the process–Quality of Conformance–Process CapabilityProcess Control and ImprovementS. Chopra/Operations/Quality 11Voice of the Customer: Linking Customer Needs to Business Processes Business Process Customer Need Internal MetricOverall QualityProduct (30%)Sales (30%)Installation (10%)Repair (15%)Billing (15%)Reliability (40 %) % Repair CallEasy to Use (20%) % Calls for HelpFeatures/Functions (40%) Function Performance TestKnowledge (30%) Supervisor ObservationsResponse (25%) % Proposals Mad on TimeFollow-Up (10%) % Follow-Up MadeDelivery Interval (30%) Average Order IntervalDoes Not Break (25%) % Repair ReportsInstalled When Promised % Installed on Due DateNo Repeat Trouble (30%) % Repeat ReportsFixed Fast (25%) Average Speed of RepairKept Informed (10%) % Customers InformedAccuracy, No Surprise (45%) % Billing InquiriesResponse on First Call (35%) % Respolved First CallEasy to Understand (10%) % Billing InquiriesSource: Kordupleski et al., CMR ‘93.S. Chopra/Operations/Quality 12Voice of the Customer: Quality Function DeploymentWhat do customers want?Are all preferences equally important?Will delivering perceived needs deliver a