Quality - Defined

Operations Management
Dr David J. Newlands PhD.

Source: Waller

Quality Contractors &

Suppliers

Defining Quality
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

What is Quality?
Definition:
Giving the customer - or the next person in the process what is required, a product or service fit for use, and
doing this in such a way that each task is done right
the first time.

Takumi
A Japanese character that
symbolizes a broader
dimension than quality, a
deeper process than
education, and a more
perfect method than
persistence

 Of course I dont look busy. I did it right

the first time
Country Studios, 2003

Dont just sit there. Do something!

Dont just do something Sit there!
Blanchard and Spencer, The One Minute Manager

2004 Top Gear Survey - the Top 10

1: Honda S2000 - 94.0
2: Jaguar XJ series - 93.6
3: Lexus IS 200 - 93.1
4: Honda Jazz - 92.2
5: Skoda Octavia - 91.7
6: Toyota Yaris - 90.6
7: Toyota RAV4 (New) - 90.4
8: Mazda 6 - 90.2
9: Skoda Fabia - 90.1
10: Honda CR-V - 88.9

2005 Top Gear Survey - the Top 10

(Ranking: Make - Model)

1: Honda S2000
2: Lexus IS200/300
3: Lexus RX300
4: Skoda Superb
5: Skoda Octavia
6: Honda Jazz
7: Honda Accord
8: Subaru Legacy
9: Skoda Fabia
10: Subaru Forester
http://www.bbc.co.uk/topgear/survey/top_10.shtml

2004 Top Gear Survey - the Last 10 out of 142

133: Fiat Stilo - 73.7
134: Renault Megane - 73.6
135: Citroen Xsara - 73.5
136: Peugeot 206 - 73.5
137: Citroen Saxo - 73.4
138: Fiat Bravo - 70.7
139: Renault Espace - 70.6
140: Renault Laguna - 70.3
141: Peugeot 307 - 69.8
142: Mercedes M-Class - 69.8

2005 Top Gear Survey - the Last 10 out of 159

150: Citron Xsara
151: Peugeot 206
152: Renault Mgane
(Nov '02 on)
153: Rover 25
154: Fiat Stilo
155: Mercedes M-Class
156: Renault Laguna
157: Renault Espace
158: Peugeot 307
The Peugeot 807
159: Peugeot 807
http://www.bbc.co.uk/topgear/survey/last_10.shtml

Different Views
User-based better performance,
more features
Manufacturing-based
conformance to standards,
making it right the first time
Product-based specific and
measurable attributes of the
product

Other Quality Definitions

1. Market Place Quality. The degree to which a specific product
satisfies the customer wants, e.g., suit from a tailor.
2. Quality Grades & Classifications. The degree to which
a class of product satisfies potential, e.g. Grade 1 eggs.

3. Quality Conformance. The degree to which a specific product

conforms to a design or specification.
4. Quality Characteristics. The distinguishing features of a
product e.g. appearance, desirability, size, etc.

Grade A, Size XL

Implications of Quality
1. Company reputation
Perception of new products
Employment practices

Supplier relations

2. Product liability
Reduce risk

3. Global implications
Improved ability to compete

Key Dimensions of Quality

Performance
Features
Reliability
Conformance

Durability
Serviceability
Aesthetics
Perceived quality
Value

Service Quality
The Operations Manager must
recognize:
1. The tangible component of
services is important
2. The service process is important
3. The service is judged against the
customers expectations
4. Exceptions will occur

Service
Specs
at UPS

Determinants of Service Quality

Reliability

Credibility

Responsiveness

Security

Competence

Understanding/
knowing the
customer

Access
Courtesy
Communication

Tangibles

Definition of Quality
"Conformance to defined characteristics"
Fitness for purpose
Quality is not the same as Reliability
Reliability is the probability of a product working
effectively over a given period of time.

Quality is not the same as Luxury

Cheap mass-produced goods need to be of good
quality even if they do not have luxury features

The 10 most unreliable cars 2004

There were 142 cars listed in the 2004 final
survey, of which the following 10 were ranked as
the most unreliable.
Citroen C3 (133rd)
VW Polo (New) (134th)
Citroen Xsara (135th)
Citroen C5 (136th)
Fiat Stilo (137th)
Renault Megane (New) (138th)
Mercedes M-Class (139th)
Peugeot 307 (140th)
Renault Laguna (141st)
Renault Espace (142nd)
http://www.bbc.co.uk/topgear/survey/2004/unreliable.shtml

Source: Skynews.com

An Un-Reliable Structure
Charles De Gaule Airport Terminal Collapse

The need for Quality

Good quality wins orders in the market
Good quality reduces costs of manufacturing
Poor quality means loss of reputation and market
Poor quality means loss of money in material
and work done which is then scrapped

Quality is essential for productivity and profit

Quality is a requirement in all organisations

"Quality Is Free"

Quality and Strategy

Managing quality supports
differentiation, low cost, and
response strategies

Quality helps firms increase sales

and reduce costs
Building a quality organization is a
demanding task

Ways Quality Improves

Productivity
Sales Gains
Improved response
Higher Prices
Improved
Quality

Improved reputation
Reduced Costs

Increased
Profits

Increased productivity
Lower rework and scrap costs
Lower warranty costs
Figure 6.1

The Flow of Activities

Organizational Practices
Leadership, Mission statement, Effective operating
procedures, Staff support, Training
Yields: What is important and what is to be accomplished
Quality Principles
Customer focus, Continuous improvement, Benchmarking,
Just-in-time, Tools of TQM
Yields: How to do what is important and to be
accomplished
Employee Fulfillment
Empowerment, Organizational commitment
Yields: Employee attitudes that can accomplish
what is important

Figure 6.2

Customer Satisfaction
Winning orders, Repeat customers
Yields: An effective organization with
a competitive advantage

Ethics and Quality Management

Operations managers must
deliver healthy, safe, quality
products and services

Poor quality risks injuries,

lawsuits, recalls, and regulation
Organizations are judged by
how they respond to problems

COSHH
Control of Substances Hazadous to Health
1.
2.
3.
4.
5.

Eliminate the need to use dangerous materials

Substitute for benign materials
Minimise use
Isolate from dangerous materials
Minimise exposure.

TQM
Encompasses the entire organisation, from
supplier to customer
Stresses a commitment by management to
have a continuing, companywide drive
toward excellence in all aspects of products
and services that are important to the
customer

New Approaches to Quality

Three Threads
1. The need for top level commitment
2. Involvement throughout the organisation
3. Use of statistical tools to plan, control & improve quality.
The whole climate in the organisation may have to change Quality becomes everyones responsibility, ceasing to rest
with the Quality Department. It becomes a
TOTAL QUALITY PHILOSOPHY

That leads to Total Quality Culture

T.Q.M.
Customer driven
Conformance to customer expectations has top
importance
Respect people and their ability to contribute to
improvement
Quality applies to everyone, in all parts of the
organisation.
Emphasis on prevention & problem solving
Employees brought into decision process

What is TOTAL QUALITY?

Applies not just to technical quality of products
Total
but rather to quality of performance of every
Quality
function in a company
It needs: Universal participation
Simpler organisation structures and
Focus on customers needs
groupings of facilities & functions
Everything is a process which
contributes to quality
Application of relevant techniques
Continuous process
inc. SPC, Taguchi, FMEA etc.
improvement
Better performance
at lower cost
Quality that
wins business

Well managed communication

systems
Effective Supplier Development

Focus on N.V.A.W.

Approaches to Productivity
Traditional Approach
5%
VALUE-ADD

95%
WASTE

Focus on Value-added
Resources Through
Methods Improvement
Work Study
Automation

JIT Approach
Focus on the 95%
Non Value-Added
Resources Through
Total Quality Management
Total Waste Elimination
Enforced Problem Solving
Total Involvement
Source: ATKEARNEY

Quality Redefined

The quality of the product or service in terms of

performance, reliability, serviceability, durability
and aesthetics.
The package offered to the customer including the
product or service itself, price, delivery, costs of
ownership, and after sales service.
The quality of the processes that produced the
product or service.

What is Quality?
Conformance to Requirements
Measurement
The need for Prevention of defects
rather than appraisal or inspection
The Standard for Quality
- zero defects
- do it right first time
The Philosophy for Quality
- Total Quality Control =>
- Assurance via prevention rather than finding non quality

Quality Concepts
Operations Management
Dr David J. Newlands PhD.

Quality Concepts
Deming Total quality philosophy - based on continual
improvement and satisfaction of customer
expectations. 14 Points for Management
Juran

Uses the fitness for purpose which includes

cost effectiveness, availability, reliability, etc.
Top management commitment, fitness for use

Crosby Favours conformity to specification. Quality is Free

Taguchi Off line quality philosophy involves integration
of design and manufacturing processes at the
point of product creation plus experimentation
methodology

Demings 14 Points
1 Create constancy of purpose to improve product and service.
2 Adopt new a philosophy for new economic age by management
learning responsibilities and taking leadership for change;
not to live with delays, mistakes, defective materials and poor
workmanship. Plan to become competitive and stay in business.

3 Decide to whom top management is responsible.

Cease dependence on inspection to achieve quality;
eliminate the need for mass inspection by building quality
into the product. Use statistical evidence that quality is built-in.

4 End awarding business on price; instead minimise total cost

and move towards single suppliers to items.
Eliminate suppliers with no statistical evidence of quality.

Demings 14 Points
5 Improve constantly and forever the system of production and
service to improve quality and productivity and to decrease costs.

6 Institute modern methods for training on the job.

7 Institute leadership; change supervision from requiring sheer

volume to quality to help doing a better job - with quality as
a focus; overhaul supervision of management and
production workers.

8 Drive out fear so that all may work effectively for the organisation.
9 Break down barriers between Departments; research, design,
sales and production must work together, in teams, to foresee
problems in production and use.

Demings 14 Points
10 Eliminate slogans, exhortations and numerical targets for the

work force, such as zero defects or new productivity levels.

Such exhortations are divisory as the bulk of the problems
belong to the system and are beyond the power of the workforce.

11 Eliminate quotas or work standards, and management by

objectives or numerical goals that focus on productivity
improvements without providing quality improvement methods
to do so; substitute leadership.

Demings 14 Points
12 Remove barriers that rob people of their right to pride of
workmanship; hourly workers, management and engineering;
eliminate annual or merit ratings and management by objective.

13 Institute a vigorous education and self-improvement programme.

14 Put everyone in the company to work to accomplish
the transformation. Create management structures to push
daily on the above.

Crosby's 14-Step Quality Improvement Programme

1. Demonstrate management commitment
2. Form a Quality Improvement team
3. Establish real quality measures
4. Calculate the real cost of quality
5. Raise quality awareness throughout the company
6. Implement corrective action as soon as opportunities surface.
7. Establish a committee for a zero defects programme
8. Train supervisors in all aspects of the programme
9. Have a zero defects day, a corporation-wide event
10. Establish formal goals for each group
11. Remove causes of errors in process
12. Recognise outstanding acts or contributions
13. Form quality councils to meet and review regularly
14. Do it all over again, regularly.

Organisational Sylos

Organisational EVILution
Organisational View
Characteristics

Marketing

Design HQ Production Distribution

Specialised
Complex
Bureaucratic
Incremental in improvement
Un-empowered
Creative coping
Low Capability
Costly
Unfocussed
VULNERABLE

Failures usually occur at

functional boundaries

Costs
Advanced project finance concepts: influence of Kaizen
Total Acquisition Costs
Life Time Cost Models
ABC Costing
Cost Benchmarks
Ratio Analysis

Costs of Quality
Prevention costs - reducing the
potential for defects
Appraisal costs - evaluating
products, parts, and services

Internal failure - producing defective

parts or service before delivery
External costs - defects discovered
after delivery

Costs of Quality
Total
Cost

Total Cost
External Failure

Internal Failure

Prevention
Appraisal

Quality Improvement

Source: Waller

Relationship between Quality, Market Share,

and Return on Investment (ROI)

Market Share
13%

Numbers in the box

represent % ROI

28%

Low

11

17

23

Medium

11

17

26

High

20

26

35

Product
Quality

Source: Strategic Planning

Institute, USA.

Source: Waller

Source: Waller

Source: Waller

Source: Waller

Source: Waller

Traditional approach to quality

Based on Quality Control of manufactured
output by Inspection of output from processes.
Defects are only detected after they have occurred
Time delay between production and inspection
leads to further defective work being produced
Costs

- of inspection to prevent dispatch of

defective products.
- of rectification or scrapping of defective
products. (material and labour costs)

Armand Feigenbaum: Total Quality Control

Modern approach to quality

A systemic approach to an organization's activities.
Based on Quality Assurance by design
The creation of a Quality Culture
The commitment of top management
The involvement of all employees
Building quality into processes to prevent defects
Control of processes at all stages over all activities
Understanding cause of and reducing variations

= RIGHT FIRST TIME + RIGHT EVERY TIME

Traceability
The ability, to trace back from a product in use to
its manufacturer, the day, machine, operator
and batch of material from which it was made.
This requires keeping accurate quality records,
From this to trace forward to other customers
having products made the same day, machine,
operator and batch of material.
This is used when products fail prematurely.

Used in the following industries - Nuclear power

- Aircraft parts
- Military equipment
- Motor industry

European Quality Award Model

People 9%
Management

People 9%
Satisfaction

Leadership

Policy & 8%
Strategy

Processes

10%

Resources 9%

14%

Enablers

Customer 20%
Satisfaction
Impact 6%
on Society

Business
Results
15%

Results

Source: Waller

Malcom Baldrige National

Quality Award
Established in 1988 by the U.S.
government

Designed to promote TQM practices

Recent winners
The Bama Companies, Kenneth W.
Monfort College of Business,
Caterpillar Financial Services, Baptist
Hospital, Clarke American Checks,
Los Alamos National Bank

Baldrige Criteria
Applicants are evaluated on:
Categories
Leadership
Strategic Planning
Customer & Market Focus
Information & Analysis
Human Resource Focus
Process Management
Organizational Results

Points
120
85
85
90
85
85
450

How to Implement Quality

Operations Management
Dr David J. Newlands PhD.

5W1H
Ask good questions:

What
Why
When
Where
Who
How

Hoshin
Select the work post, production line
Create a task group to study and provide
appropriate information
Analyse, propose improvements, new methods
Implement proposed changes
Fine tune with modifications
Increase productivity throughput time reduced
Evaluate the change
Validate the new methods in terms of quality, cost
and reliable delivery

Quality Problem Solving Methodology

Team Formation

= Quality improvement /
team effectiveness

Problem Selection

= Pareto analysis

Cause Exploration

= Cause and effect diagrams

brain storming, data collection
= Statistical analysis and
financial appraisal

Solution Selection

Action Planning
Measure Results
& present to management

= Detailed action plans

Progress measurement
= Trend analysis

International Quality Standards

Industrial Standard Z8101-1981 (Japan)
Specification for TQM

ISO 9000 series (Europe/EC)

Common quality standards for products
sold in Europe (even if made in U.S.)
2000 update places greater emphasis on
leadership and customer satisfaction

ISO 14000 series (Europe/EC)

Stages in Quality Assurance

Marketing
Disposal

Design

Purchasing

Maintenance
Installation
and
Operation

Quality
Assurance

Distribution
Packing and Storage

Process
Planning
Manufacturing

Inspection & Testing

11 Stages as used in BS 5750 ISO9000

BRITISH STANDARD FOR QUALITY

BS 5750
A British Standard of Quality Assurance now
the basis of European & International Standards.
(EN 29000 and ISO 9000)
Part 0
Concepts and definitions.
Part 1
For organisations which design and
manufacture their own products.
Part 2
For organisations which manufacture
items to design of purchaser.
Part 3
Limited to supplier capability only
at final inspection and test.
Part 4
Management guide to implementation.

Scope of ISO / EN / BS Quality Standards

Design

Production
Final
Inspection
and test
Delivery

Installation
Servicing

ISO 9003
EN29003
BS 5750
Part 3

ISO 9002
EN29002
BS 5750
Part 2

ISO 9001
EN29001
BS 5750
Part 1

Quality System Documentation

ISO 9000
BS5750

Company
Policy

Level 1
General Approach
Level 2
Who?
What?
When?
Level 3
How?

Quality
Plan

Quality
MANUAL
Procedures

Work
Test
Calibration Specifications
Instruction Methods Methods

Level 4
Log Sheets
Evidence
etc.

Test
Results

Calibration
Records

Purchase
Orders

Reference
Lists

Approved
Supplier
Lists

BS 5760
BS 2564 Control Chart Techniques
BS 4778 Quality Vocabulary
BS 4891 A guide to Quality Assurance
BS 5700 A Guide to Process Control
BS 6000 Sampling Plans and Procedures
BS 7229 A Guide to Quality Systems Auditing
ISO
International Standards Organisation

CEN
Comite Europeen de Normalization

ISO 14000
Environmental Standard
Core Elements:
Environmental management

Auditing
Performance evaluation
Labeling
Life-cycle assessment

Seven Concepts of TQM

Continuous improvement
Six Sigma
Employee empowerment
Benchmarking
Just-in-time (JIT)
Taguchi concepts
Knowledge of TQM tools

Continuous Improvement
Represents continual
improvement of all processes
Involves all operations and work
centers including suppliers and
customers
People, Equipment, Materials,
Procedures

Shewharts PDCA Model

1.Plan
4. Act
Identify the
Implement improvement
and make
the plan
a plan

3. Check
Is the plan
working?

2. Do
Test the
plan
Figure 6.3

PDCA Cycle of Transformation Efforts

Though no hard and fast rules exist, there seems to be adequate testimony and experience
to roughly describe the first cycles of transformation for a typical organisation. Cycles
of transformation is the term chosen as transformation is an iterative process and the
Shewhart cycle is an elegant model.

ACT: Does the data confirm the

plan? Are other causes operating?
Are the risks of proceeding to
further change necessary and
worthwhile?

Plan: What could be? What changes

are needed? What obstacles need to be
overcome? What are the most important
results needed? Ect. Are data available?
What new information is needed?

Check: Measure and observe effects

of change or test.

Do: Small scale implementation of

change or test to provide data
for answers.

The plan is then modified by conclusions/answers surfaced in the first cycle.

This then is followed by continuous reiteration of all other steps, expanding
knowledge and applying understanding, forever.

Tools of TQM
Tools for Generating Ideas
Check sheets
Scatter diagrams
Cause and effect diagrams

Tools to Organize the Data

Pareto charts
Flow charts

Tools for Identifying Problems

Histogram
Statistical process control chart

Seven Tools for TQM

Check Sheet: An organized method of
recording data
Hour
Defect
A
B

1
///
//

2
/
/

//

3
/

4
/
/

5
/

6
/

7
///
//

8
/
///

//

////

Figure 6.5

Seven Tools for TQM

Productivity

Scatter Diagram: A graph of the value

of one variable vs. another variable

Absenteeism
Figure 6.5

Spider Diagram

Source: Waller

Seven Tools for TQM

Cause and Effect Diagram: A tool that
identifies process elements (causes) that
might effect an outcome
Cause
Materials

Methods

Effect

Manpower

Machinery
Figure 6.5

Broken luggage
carousel

Inadequate special
meals on-board

Mistagged
bags

Methods

Poor check-in
policies

Overbooking policies
Bumping policies

Mechanical delay
on plane

Dissatisfied
Airline
Customer

Understaffed
crew
Understaffed
ticket counters

Manpower

Poorly trained
attendants

supply of
magazines

Machinery

Deicing
equipment
not available

Inadequate

& blankets
on-board

Material

Insufficient
clean pillows

Cause-and-Effect Diagrams

Figure 6.6

Source: Waller

Source: Waller

Seven Tools for TQM

Flow Charts (Process Diagrams): A chart
that describes the steps in a process

Figure 6.5

Flow Charts
Packing and shipping process

Packing
station

Sealing
Weighing
Labeling

Quick freeze
storage
(60 Mins)

Storage
(4 to 6 hrs)

Shipping
dock

Seven Tools for TQM

Percent

Frequency

Pareto Charts: A graph to identify and plot

problems or defects in descending order of
frequency

E
Figure 6.5

Pareto Charts
Data for October

Frequency (number)

60

54

72

50
40
Number of
occurrences

30
20

12

10

Minibar
4%

Misc.
3%

0
Room svc
72%

Check-in Pool hours

16%
5%

Causes and percent

Cumulative percent

100
93
88

70

Statistical Process Control (SPC)

Uses statistics and control charts to
tell when to take corrective action
Drives process improvement

Four key steps

Measure the process
When a change is indicated, find the
assignable cause
Eliminate or incorporate the cause
Restart the revised process

Statistical Process Control (SPC)

Uses statistics and control charts to
tell when to take corrective action
Drives process improvement

Four key steps

Measure the process
When a change is indicated, find the
assignable cause
Eliminate or incorporate the cause
Restart the revised process

Seven Tools for TQM

Histogram: A distribution showing the
frequency of occurrence of a variable

Frequency

Distribution

Repair time (minutes)

Figure 6.5

Seven Tools for TQM

Statistical Process Control Chart: A chart with
time on the horizontal axis to plot values of a
statistic

Upper control limit

Target value
Lower control limit

Time
Figure 6.5

An SPC Chart
Plots the percent of free throws missed
20%

Upper control limit

10%

Coachs target value

0%

|
1

|
2

|
3

|
4

|
5

|
6

|
7

|
8

|
9

Lower control limit

Game number
Figure 6.7

Causes of poor quality

Deviation of output from design specification
Operations not done or done wrongly

Random variation of output from specification

Due to inherent process variation
Can be reduced with good maintenance
Choose a process to achieve output within tolerance

Gradual variation of output from specification

Due to tool or die wear
Change tool to restore output to specification
Smith 1997

Contributing Factors to Variation

Outer Noise
Consumer usage conditions, temperatures, humidity,
shock, vibration, operations, incoming material
Inner Noise
Deterioration of parts, of materials, oxidisation (rust)
machinery aging, tool wear
Between Product
Piece to piece variation,
process to process variation

Where they are supposed to

be the same

In SPC, these ratios are called Cp and Cpk

for process and product capability
Controllable Factors
All design parameters, all process parameters
all process setting parameters.
If you can measure it, you can control it or compensate for it.

Control Charts
Causes of Variation
A) Usual or chance variations - likely to occur in a random manner
b) Unusual or assignable variations - which normally can be traced to some
external causes.
Quality Engineers define limits within which variations are
acceptable and beyond which they are unacceptable and necessitate
some examination. These are called CONTROL LIMITS

Six Sigma
Originally developed by Motorola,
Six Sigma refers to an extremely
high measure of process capability
A Six Sigma capable process will
return no more than 3.4 defects per
million operations (DPMO)
Highly structured approach to
process improvement

Process / Product Statistical Spread

Factory A

LSL
Lower/Upper
Specification
Limit
(design tolerances)

Factory B

LSL

USL

USL

Factory C

LSL

USL

You have to close two of three factories down because of a

lack of demand. Which factories should you close and why?

Process / Product Statistical Spread

LSL

USL
= 99.73%

6
100 99.73 = 0.27
Multiply by 1000000
= 27000 parts per million defects
Six sigma is plus/minus six sigma
Cpk = specification / actual = 2

6 - 3 6/2

allowing for 1.5 mean shift this means 3.4ppm either side (6.8ppm total)

Kaizen
Continuous improvement
Requires total employment involvement
Essence of JIT is willingness of workers to

spot quality problems

halt production when necessary
generate ideas for improvement
analyze problems
perform different functions

Coordinated Application of Improvement Techniques

Achieving Critical
Performance
Measures

Coordinated
Business System
Engineering

Technology
Advance

Continuous
Improvement
(Kaizen/C.I.)
BPR and C.I.

Market
Leader

BPR
Target
Company

Kaikaku

Time (3 Years)
Managing what is

Six Sigma
1. Define critical outputs
and identify gaps for
improvement

DMAIC Approach

2. Measure the work and

collect process data
3. Analyze the data
4. Improve the process

5. Control the new process to

make sure new performance
is maintained

Six Sigma Implementation

Emphasize DPMO as a standard metric
Provide extensive training
Focus on corporate sponsor support
(Champions)
Create qualified process improvement
experts (Black Belts, Green Belts, etc.)
Set stretch objectives
This cannot be accomplished without a major
commitment from top level management

Taguchi Quality Philosophy

1. An important dimension of the quality of a manufactured product is the total loss
generated by that product to society (loss to society)
2. In a competitive society, continuous quality improvement and cost reduction are
necessary for staying in business.
3. A continuous quality program includes incessant reduction in the variation of
product performance characteristics about their target values (minimise variability).
4. A customers loss due to a products performance variation is often approximately
proportional to the square of the deviation of the performance characteristic from its
target value (loss function).
5. The final quality and cost of a manufactured product are determined to a large
extent by the engineering designs of the product and its manufacturing process
(quality by design)
6. Product (or process) performance variation can be reduced by exploiting the
non-linear effects of the product (or process) parameters on a performance
characteristic (robust design)
7. Statistically planned experiments can be used to identify the settings of product
(or process) parameters that reduce performance variation (design of experiments)

Employee Empowerment
Getting employees involved in product and
process improvements
85% of quality problems are due to process and
material

Techniques
Build communication networks that include
employees
Develop open, supportive supervisors

Move responsibility to employees

Build a high-morale organization
Create formal team structures

Quality Circles
Group of employees who meet
regularly to solve problems
Trained in planning, problem solving,
and statistical methods
Often led by a facilitator
Very effective when done properly

Source: Waller

Benchmarking
Selecting best practices to use as a
standard for performance
Determine what to
benchmark
Form a benchmark team
Identify benchmarking partners
Collect and analyze benchmarking
information
Take action to match or exceed the
benchmark

Best Practices for Resolving

Customer Complaints
Make it easy for clients to complain
Respond quickly to complaints
Resolve complaints on first contact
Use computers to manage
complaints
Recruit the best for customer
service jobs

Just-in-Time (JIT)
Relationship to quality:
JIT cuts the cost of quality
JIT improves quality

Better quality means less

inventory and better, easier-toemploy JIT system

Just-in-Time (JIT)
Pull system of production scheduling
including supply management
Production only when signaled

Allows reduced inventory levels

Inventory costs money and hides process
and material problems

Encourages improved process and

product quality

Just-In-Time (JIT) Example

Work in process
inventory level
(hides problems)

Unreliable
Vendors

Scrap

Capacity
Imbalances

Just-In-Time (JIT) Example

Reducing inventory reveals
problems so they can be solved

Unreliable
Vendors

Scrap

Capacity
Imbalances

Taguchi Concepts
Experimental design methods to
improve product and process design
Identify key component and process
variables affecting product variation

Taguchi Concepts
Quality robustness
Quality loss function
Target-oriented quality

Quality Robustness
Ability to produce products
uniformly in adverse manufacturing
and environmental conditions
Remove the effects of adverse
conditions
Small variations in materials and
process do not destroy product
quality

Quality Loss Function

Shows that costs increase as the
product moves away from what
the customer wants
Costs include customer
dissatisfaction, warranty and
service, internal scrap and repair,
and costs to society
Traditional conformance
specifications are too simplistic

Quality Loss Function

Cost of guarantee
or disposal of reject

LSL

Design Value Specification

USL

Quality Loss Function

L = D2C

High loss
Unacceptable

Loss (to
producing
organization,
customer,
and society)

Poor
Good

Best

Low loss

where
L = loss to society
D = distance from
target value
C = cost of deviation
Target-oriented quality
yields more product in
the best category
Target-oriented quality
brings product toward
the target value

Frequency

Conformance-oriented
quality keeps products
within 3 standard
deviations
Lower

Target
Upper
Specification

Figure 6.4

Failure Mode & Effects Analysis (FMEA)

A quality strategy which focuses on failure prevention
- the virtual elimination of the possibility of premature failure and mistake proofing as far as possible.
FMEA focus - Failure Modes, Mechanisms & Effects.
Failure mode - A description (physical) of a failure
Failure mechanism - the process that created that failure
Effects - The consequences that failure modes may have on
performance, methods of detecting the identified failure modes,
and possible means of prevention.
Critically analyse - to determine the ones that need further
attention by ranking risks and consequences.

FMEA
Can detect 1 obvious and clear - unmissable, 10 not
Severity of effect 1 no real effect 10 kills people
Frequency 1 hardly ever 10 often
1*1*1=1
10 * 10 * 10 = 1000
Anything above 125 must be worked on to reduce
the severity, frequency or make it easier to detect.

Quality Function Deployment

A system for translating consumer requirements into appropriate
company requirements at every stage, from research, through
product design and development, to manufacture, distribution,
installation and marketing, sales and service. (ASI 1987)

QFD Phases
product planning - part deployment - process planning - production planning

QFD Steps
Design
Requirements

Customer
Requirements

Step 7
Correlation Matrix
Step 3.
How they will be
achieved, design.

Step 1.
List of customer
wants

Step 4.
Relationship Matrix

Step 2.
Rank importance
Step 5. How much

Step 6. Up or down
Step 9. Competitive
assessment - technical
Step 10. Control items

Step 11. Ranking overall

Step 8.
Competitive
Assessment

Design of Experiments
1. Define the problem
2. Determine the objective
identify output characteristics, method of movement
3. Brainstorm
group factors into control factors and noise factors
determine levels and values of factors
4. Design the experiment
select orthogonal arrays for control factors
assign control factors to array columns
select an outer array for noise factors and assign factors to columns
5. Conduct experiment and collect data
6. Analyse data
Regular analysis
S/N Analysis
Average response tables
S/N response tables
Average response graphs
S/N response graphs
ANOVA
S/N ANOVA
7. Interpret results
select optimium levels of control factors
8. ALWAYS, ALWAYS, ALWAYS run confirmatory experiment

A Rubber Moulding Cause and Effect Diagram

Operator
Machine
Material
Clamping pressure
Viscosity of
Rate of cure of rubber
Loading
rubber
Holding pressure
Rubber ingredients
time
Injection time
Dia of metal
Air in rubber
Cleanliness
Injection pressure
Shot volume
Weight of slug
of gloves
Cycle time
Age of rubber
Temperature
Air Traps
Cause
Blisters
Product design
Mould temperature
Cleanliness
Humidity
Loading
Cavity position
Position of
Ambient temperature
Size
of
gates
breathers
Bumping
Size of runners
Draughts
Size of breathers
Microwaves
Wear
Runner
(pre-heat)
configuration
Method

Tooling

Environment

Rubber Moulding Design of Experiments - Setting Conditions for Tests

Factors
1. Mould temperature
2. Injection Pressure
3. Rubber compound
4. Rubber water content
5. Shape of slug
6. No. of slugs per cycle
(same total weight)
7. Preheated
(microwave oven)
8. Length of metal
(inner tube)
9. Length of metal
(outer tube)
10. Cycle time
11. Bumping
1. Cleanliness of mould
2. Loading time
3. Working session

Level 1
200-210oC
9000 psi
1120 (originally)
Wet
Packed as now
Two (app 635g each)

Level 2
185-195oC
7000 psi
1120A (Donalds new compound)
Dry
Packed individually
Three (app 427g each)

One minute

None

Above mean value

(long)

Below mean value

(short)

Above mean value

(long)
9 mins
Yes

Below mean value

(short)
7 mins
No

Yes
Normal (3 min)
Morning

No
Longer (5 min)
Afternoon

O/P

Taguchi noted Non-Linear Effects

I/P

Quality System Implementation

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.

Top management understanding

Management commitment
Quality cost measurement
Check eligibility for grants
Select specialist help
Brief all employees
Set up steering group
Decide how suppliers will be approved
Decide how purchases will be verified
Draft quality plans
Supplier selection and monitoring
Write manual, procedures, instructions
Implement procedures
Apply for assessment
Hold reviews, audits, corrective action
Pre-assessment check by outsider
Assessment
Celebration
Continual improvement

Quality Definitions

Definitions
QUALITY CONTROL
Actions taken to ensure that an ACCEPTABLE output
quality level is achieved.

INSPECTION FOR QUALITY

Measurement of certain physical characteristics (of materials,
components or finished products) to accept or reject on the
basis of conformance to a quality specification.
QUALITY SPECIFICATION
Specification of the limits to the values of certain physical
characteristics of a products that are judged to be important
for the sale and effective and safe use of a product.

STATISTICAL QUALITY CONTROL

Statistical techniques for assessing quality achievement on the
basis of output sampling.

Definitions
STATISTICAL PROCESS CONTROL
Statistical techniques for assessing processes to ensure they remain within
control limits.
QUALITY ASSURANCE
Procedures for ensuring that quality is built in at the design stage to provide
confidence that a product will meet quality requirements. Emphasis is on
preventing poor quality.
QUALITY POLICY
An organisations overall quality objectives stated in a written and circulated
document.
QUALITY SYSTEM
The organisation, responsibility, procedures and resources provided for
implementation of quality assurance.
QUALITY CULTURE
Values and beliefs shared by all employees and focused on the achievement
of quality in all aspects of an organisations activities.

Definitions
QUALITY CIRCLES (GROUPS)
Small groups of employees meeting with their supervisor
to identify, diagnose and resolve problems affecting quality
in their work area.
QUALITY DOCUMENTATION
Procedures, manuals and specifications used to define
and assure quality.
QUALITY MANUAL
A document defining quality procedures.
QUALITY RECORDS
Results of testing and inspection or of audits of quality
systems. Also synthesis for FMEA and COSY of
non-conformance analysis - to quantify savings and
justify quality efforts.

Definitions
QUALITY STANDARDS
National and International systems for the assessment and
certification that manufacturers and suppliers have quality
assurance procedures and systems so that customers may
have confidence in their likely conformance to quality
requirements. Certification is by Certified Bodies which
are registered with the Department of Trade and Industry.
QUALITY AUDIT
Monitoring and evaluation of an organisations quality
systems to ensure that they are achieving quality.
The audit may be carried out;
- internally within the organisation.
- by a purchaser or supplier
- by a third party assessment body

Inspection
Involves examining items to see if
an item is good or defective
Detect a defective product
Does not correct deficiencies in
process or product
It is expensive

Issues
When to inspect
Where in process to inspect

When and Where to Inspect

1. At the suppliers plant while the supplier
is producing
2. At your facility upon receipt of goods from
the supplier
3. Before costly or irreversible processes
4. During the step-by-step production
processes
5. When production or service is complete
6. Before delivery from your facility
7. At the point of customer contact

Inspection
Many problems
Worker fatigue
Measurement error

Process variability

Cannot inspect quality into a

product
Robust design, empowered
employees, and sound processes
are better solutions

Source Inspection
Also known as source control
The next step in the process is
your customer
Ensure perfect product to your
customer
Poka-yoke is the concept of foolproof devices
or techniques designed to pass only
acceptable product

Service Industry Inspection

Organization
Jones Law Office

What is
Inspected
Receptionist
performance
Billing

Attorney

Standard
Is phone answered by the
second ring
Accurate, timely, and correct
format
Promptness in returning calls

Table 6.4

Service Industry Inspection

Organization
Hard Rock Hotel

What is
Inspected
Reception desk
Doorman
Room
Minibar

Standard
Use customers name
Greet guest in less than 30
seconds
All lights working, spotless
bathroom
Restocked and charges
accurately posted to bill

Table 6.4

Service Industry Inspection

Organization
Arnold Palmer
Hospital

What is
Inspected
Billing
Pharmacy
Lab
Nurses
Admissions

Standard
Accurate, timely, and correct
format
Prescription accuracy, inventory
accuracy
Audit for lab-test accuracy
Charts immediately updated
Data entered correctly and
completely

Table 6.4

Service Industry Inspection

Organization
Hard Rock Cafe

What is
Inspected
Busboy
Busboy
Waiter

Standard
Serves water and bread within 1
minute
Clears all entre items and
crumbs prior to dessert
Knows and suggest specials and
desserts

Table 6.4

Service Industry Inspection

Organization
Nordstroms
Department
Store

What is
Inspected
Display areas
Stockrooms
Salesclerks

Standard
Attractive, well-organized,
stocked, good lighting
Rotation of goods, organized,
clean
Neat, courteous, very
knowledgeable

Table 6.4

TQM In Services
Service quality is more difficult to
measure than the quality of goods

Service quality perceptions depend

on
Intangible differences between
products
Intangible expectations customers
have of those products