PTTE 434 - Lecture 1 Quality Assurance, Organization & ManagementLecture 1 - ObjectivesGarvin’s Five Definitions of QualityGarvin’s Five Definitions of Quality (Cont’d)Quality Revolution or Quality Confusion?Juran’s ApproachW. Edwards DemingA. V. FeigenbaumPhilip CrosbyCrosby’s Four Absolutes of Quality ManagementKaoru IshikawaSix Sigma?Show FilmIt can’t be done!Quality? - Convincing ManagementHidden costs of poor qualitySlide 17Opportunity Cost of AttritionOptimum Cost of QualityTwo Components of QualityQuality ProgressLittle Q and Big QContinuous ImprovementCompetitive StandingAttribute Comparison - Radar GraphPerformance - Satisfaction MapConvincing upper managementSlide 28Are Quality Approaches Influenced By Culture?National and International Quality AwardsThe Malcolm Baldrige National Quality AwardSlide 32Slide 33Slide 34Slide 35Slide 36MBNQA CriteriaSlide 38Slide 39Slide 40Slide 41Slide 42Quality Improvement: The Japanese WayWhat is the Deming Prize?The Deming PrizeOther Japanese Contributions to Quality ThoughtOther Japanese Contributions to Quality Thought - 5 S’sSlide 48Shingo Prize for Excellence in ManufacturingShingo Prize for Excellence in ManufacturingShingo Prize for Excellence in ManufacturingQuality Improvement: The European WaySlide 53ISO 9000 and 14000Slide 55European Quality AwardSlide 57Slide 58Slide 59Contributions of Various DisciplinesContributions of Various Disciplines (Cont’d)Slide 62Systems DynamicsHow SD can facilitate the Improvement EffortsApproach for Quality Improvement ProjectsCarrying out the projectIntro to Six SigmaBreakthrough ImprovementSix Sigma Process - Click HereValue EngineeringValue Engineering/Value Analysis - Why is it important?Competitive AdvantageSix Step Value Engineering Job PlanMapping VE to 6Vilfredo ParetoDefining the Problem - Pareto AnalysisQuality Improvement ExampleSolder Defects - Pareto AnalysisIshikawa or Fishbone DiagramProcess DataConclusionsDon’t jump to solution!Don’t jump to solution! - DOE Fusible Lining ExampleSporadic v.s. Chronic ProblemsSlide 85Sporadic and chronic quality problemsPTTE 434 - Lecture 1Quality Assurance,Organization & ManagementJim Wixson, CVS, [email protected](208) 520-2296 (mobile)(425) 385-8028 (Everett Apartment)(425) 294-6947 (Boeing Office)2Lecture 1 - ObjectivesLearn the five definitions of qualityLearn about some of the various quality “movements.Understand the concept of “Cost of Poor Quality.”Understand the concept of “Continuous Improvement.”Talk about some of the continuous improvement leaders and tools.Learn about the importance of defining the problem well before trying to solve it.3Garvin’s Five Definitions of QualityTranscendent Definition (Relative Quality): Quality is universally recognizable; it is related to a comparison of features and characteristics of products.Product-Based: Quality is a precise and measurable variable. Differences in quality reflect differences in quantity of some product attribute.User-Based Definition: Quality is “fitness for intended use.”4Garvin’s Five Definitions of Quality (Cont’d)Manufacturing-Based Definition: Quality is “conformance to specifications.”Value-Based Definition: Quality is defined in terms of costs and prices. A quality product is one that provides performance at an acceptable price or conformance at an acceptable costs.5Quality Revolution or Quality Confusion?6Juran’s ApproachBalanced approach using managerial, statistical, and technological concepts of qualityOperational Framework: Quality Planning, Control, and Improvement7W. Edwards DemingBroad Systems view of quality14 points focused on four parts:systems approachstatistical variationnature and scope of knowledgepsychology and understanding of human behavior8A. V. FeigenbaumEmphasized “Total Quality Control” throughout all functions of the organization.Total Quality Control means both planning and control.Provide technical and managerial procedures to ensure customer satisfaction and an economical cost of quality.9Philip CrosbyDefined quality as: Conformance to requirements.The only performance standard is ZERO DEFECTS.All levels of employees can be motivated, but, they need the right tools.10Crosby’s Four Absolutes of Quality ManagementQuality is defined as conformance to requirements, not as 'goodness' nor 'elegance'. The system for causing quality is prevention, not appraisal. The performance standard must be Zero Defects, not 'that's close enough'. The measurement of quality is the Price of Non-conformance, not indices.11Kaoru IshikawaShowed the Japanese how to integrate the many tools of quality, especially the simpler tools.Basic 7 Tools: Histograms, Pareto Charts, Cause and Effect Diagrams, Run Charts, Scatter Diagrams, Flow Charts, Control Charts12Six Sigma?13Show FilmCarving a Career in Quality, Phillip Cosby and Assoc., 25 min.14It can’t be done!“Management wants us to add on these quality activities to our regular duties without giving us the additional time [to accomplish them] -- it can’t be done!”Discussion - How can it be done?Has your employer implemented any quality improvement programs?How was it done?15Quality? - Convincing ManagementLoss of productionLoss of customersLoss of businessLoss of jobsClass - Can you list some more reasons?16Hidden costs of poor qualityReprocessingRejects Sorting InspectionCustomer returnsWarranty expensesDowngrading of productLost salesProcess downtimeExtra inventoryLost discountsDamaged goodsPremium freight costsCustomer allowancesOvertime to correct errorsLoss of good willPaperwork errorsDelaysObsolete inventoryIncorrect orders shippedExtra process capacityCompetitorCompetitorCompetitor17Quality? - Convincing ManagementQuality is no longer just a technical issue, it is a business issue.In order for a quality program to succeed, top management must be involved and committed to its success.A company’s success is directly related to management’s commitment to quality.18Opportunity Cost of AttritionDollars (000s)Number of HouseholdsQuarters05,00010,00015,00020,00025,00030,00035,00050,0000100,000150,000300,000200,000250,0001Q$26,0002Q$28,0003Q$27,0004Q$28,500Annual Avg. profit lost (000s)Households defecting120,000124,000122,500125,00019Optimum Cost of QualityQuality of Conformance %Cost per Good Unit of Product1000Total quality costs per