Fall 2015What Is Quality?QualityFedEx and QualityProduct Quality DimensionsDimensions of Quality (Garvin)Slide 7Slide 8Quality PhilosophersDeming’s 14 PointsSlide 11Slide 12The Deming Wheel (or PDCA Cycle)Six SigmaSix Sigma Started By MotorolaCost of QualitySlide 17Cause-and-Effect DiagramISO 9000 FamilyQuestions?Quality Quality ManagementManagementFall 2015Quality is a measure of goodness that is inherent to a product or service.Bottom line: perspective has to be from theCustomer – fitness for use“The degree of excellence of a thing” (Webster’s Dictionary)“The totality of features and characteristics that satisfy needs” (ASQ)Fitness for useQuality of designWhat Is Quality?QualityQuality Management – not owned by any functional area – cross functionalMeasure of goodness that is inherent to a product or serviceFedEx and QualityDigitally Assisted Dispatch System – communicate with 30K couriers 1-10-100 rule 1 – if caught and fixed as soon as it occurs, it costs a certain amount of time and money to fix 10 – if caught later in different department or location = as much as 10X cost100 – if mistake is caught by the customer = as much as 100X to fixProduct Quality DimensionsProduct Based – found in the product attributesUser Based – if customer satisfiedManufacturing Based – conform to specsValue Based – perceived as providing good value for the priceDimensions of Quality (Garvin)1.1.Performance Performance Basic operating characteristicsBasic operating characteristics2.2.Features Features ““ExtraExtra”” items added to basic items added to basic featuresfeatures3.3.Reliability Reliability Probability product will operate Probability product will operate over timeover timeDimensions of Quality (Garvin)4.4.Conformance Conformance Meeting pre-established Meeting pre-established standardsstandards5.5.Durability Durability Life span before replacement Life span before replacement 6.6.Serviceability Serviceability Ease of getting repairs, speed Ease of getting repairs, speed & competence of repairs& competence of repairsDimensions of Quality (Garvin)7.7.AestheticsAestheticsLook, feel, sound, smell or Look, feel, sound, smell or tastetaste8.8.SafetySafetyFreedom from injury or harmFreedom from injury or harm9.9.Other perceptionsOther perceptionsSubjective perceptions based Subjective perceptions based on brand name, advertising, on brand name, advertising, etcetcQuality PhilosophersWalter Shewhart – Statistical Process Walter Shewhart – Statistical Process ControlControlW. Edwards DemingW. Edwards DemingJoseph Juran – strategic and planning Joseph Juran – strategic and planning basedbasedArmand Fiegenbaum – total quality Armand Fiegenbaum – total quality control “entire business must be control “entire business must be involved in quality improvement”involved in quality improvement”Deming’s 14 Points1.1.Create constancy of purposeCreate constancy of purpose2.2.Adopt philosophy of preventionAdopt philosophy of prevention3.3.Cease mass inspectionCease mass inspection4.4.Select a few suppliers based on Select a few suppliers based on qualityquality5.5.Constantly improve system and Constantly improve system and workersworkers6.6.Institute worker trainingInstitute worker trainingDeming’s 14 Points7.7.Instill leadership among Instill leadership among supervisorssupervisors8.8.Eliminate fear among employeesEliminate fear among employees9.9.Eliminate barriers between Eliminate barriers between departmentsdepartments10.10.Eliminate slogansEliminate slogans11.11.Remove numerical quotasRemove numerical quotasDeming’s 14 Points12.12.Enhance worker prideEnhance worker pride13.13.Institute vigorous training and Institute vigorous training and education programseducation programs14.14.Develop a commitment from top Develop a commitment from top management to implement these management to implement these 13 points13 pointsThe Deming Wheel(or PDCA Cycle)1. PlanIdentify the problem and develop the plan for improvement.2. DoImplement the plan on a test basis.3. Study/CheckAssess the plan; is it working?4. ActInstitutionalize improvement; continue the cycle.Also known as the Shewart CycleAlso known as the Shewart CycleSix SigmaQuality management program that measures and improves the operational performance of a company by identifying and correcting defects in the company’s processes and productsSix SigmaStarted By MotorolaDefineMeasureAnalyzeImprove ControlMade Famous by Made Famous by General ElectricGeneral Electric40% of GE executives’40% of GE executives’bonuses tied to 6 sigmabonuses tied to 6 sigmaimplementation implementationCost of QualityCost of achieving good qualityCost of achieving good qualityPreventionPreventionPlanning, Product design, Planning, Product design, Process, Training, InformationProcess, Training, InformationAppraisalAppraisalInspection and testing, Inspection and testing, Test equipment, Test equipment, OperatorOperatorCost of QualityCost of poor qualityCost of poor qualityInternal failure costsInternal failure costsScrap, Rework, Process failure, Scrap, Rework, Process failure, Process downtime, Price-Process downtime, Price-downgradingdowngradingExternal failure costsExternal failure costsCustomer complaints, Customer complaints, Product return, Product return, Warranty, Product Warranty, Product liability, Lost salesliability, Lost salesCause-and-Effect Diagram QualityQualityProblemProblemQualityQualityProblemProblemOut of adjustmentOut of adjustmentTooling problemsTooling problemsOld / wornOld / wornMachinesMachinesMachinesMachinesFaultyFaulty testing equipmenttesting equipmentIncorrect specificationsIncorrect specificationsImproper methodsImproper methodsMeasurementMeasurementMeasurementMeasurementPoor supervisionPoor supervisionLack of concentrationLack of concentrationInadequate trainingInadequate trainingHumanHumanHumanHumanDeficienciesDeficienciesin product designin product designIneffective qualityIneffective qualitymanagementmanagementPoor process designPoor process designProcessProcessProcessProcessInaccurateInaccuratetemperature temperature controlcontrolDust and DirtDust and DirtEnvironmentEnvironmentEnvironmentEnvironmentDefective from vendorDefective from vendorNot to specificationsNot to specificationsMaterial-Material-handling problemshandling