Managing Quality BA 341 Lean Operations Dr Bogdan Bichescu 1 First how do we Define Measure Quality In manufacturing In services Recall our discussion in Ch 1 The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs American Society for Quality ASQ 2 How Important is Quality Should it matter as a function of strategic focus e g differentiation response and cost Why or why not How costly is quality Cost of Quality Prevention costs Appraisal costs Internal failure costs External failure costs 3 The Cost of Quality COQ Total Cost Total Cost External Failure Internal Failure Prevention Appraisal Quality Improvement 4 The Importance of Quality There is absolutely no reason for having errors or defects in any product or service as quality is free according to Philip Crosby cost of poor quality is typically underestimated should include all the consequences of not building the right product or delivering the right service the first time a focus on quality is required regardless of the organizational strategy 5 Total Quality Management TQM Refers to a consistent and comprehensive focus on quality that encompasses the entire organization Quality is defined by identifying and meeting customer expectations Management is directly responsible for quality improvement Requires a continuous effort to analyze and improve organizational processes 6 Elements of TQM Continuous improvement Never ending process of continual improvement the goal is zero defects Covers people equipment materials procedures Based on Shewhart Deming PDCA model 7 Elements of TQM Six Sigma Originally developed by Motorola adopted and enhanced by Honeywell and GE A comprehensive program focused on total customer satisfaction including a Strong discipline DMAIC model Define Measure Analyze Improve Control Set of tools e g Statistical Process Control SPC Pareto charts histograms flowcharts cause andeffect diagrams etc 8 Elements of TQM Six Sigma 9 Elements of TQM Six Sigma the DMAIC Model Define project s purpose scope and outputs subject to the customer s definition of quality Measure the target process and collect data Analyze the data ensuring repeatability and reproducibility Improve by modifying or redesigning existing processes and procedures Control the new process to make sure performance levels are maintained 10 Elements of TQM Some additional principles Employee empowerment 85 of quality issues are due to either processes or materials Internal and external benchmarking Quality circles What are the benefits JIT quality at the source and effective inspection 11 Elements of TQM Key TQM Tools Check Sheet Scatter Diagram Cause and Effect Diagram Pareto Chart Statistical Process Control 12 Key TQM Tools Check Sheet An organized method of recording data Do you notice any patterns in the table below Hour Defect A B C 1 2 3 4 5 6 7 8 13 Key TQM Tools Scatter Diagram A graph of the value of one variable vs another variable Any obvious patterns in the example below Productivity Absenteeism 14 Key TQM Tools Cause and Effect Diagrams Ishikawa or fishbone Method shooting process Material ball Grain Feel grip Air pressure Size of ball Aiming point Bend knees Hand position Lopsidedness Follow through Training Conditioning Concentratio n Manpower shooter Rim size Motivation Rim alignment Consistency Balance Machine hoop backboard Missed freethrows Rim height Backboard stability 15 Key TQM Tools Pareto Chart Identifies and plots problems in descending order of frequency 70 100 60 93 88 50 54 72 40 Number of occurrences 30 20 10 0 12 4 3 2 Room svc Check in Pool hours Minibar Misc 72 16 5 4 3 Causes and percent of the total Cumulative percent Frequency number Data for October 16 Key TQM Tools Statistical Process Control SPC Uses statistics and control charts to learn systematically rather than haphazardly about process output Since variability is inherent in every process seeks to identify and differentiate between common cause random and special cause non random process variation when to take corrective action or not Systematic process improvement through elimination of special causes and gradual reduction of common causes 17 Key TQM Ingredients SPC Control Charts Constructed from historical data the purpose of control charts is to help distinguish between common cause and special cause variation Upper control limit Target value 1 2 3 4 5 6 7 8 9 Lower control limit Sample number 18