BUAD306

Chapter 9 – Management of QualityChapter 10 – Quality Control (not in text)

READ THIS CHAPTER!

Quality Defined By YOU

Examples of high quality products and services?

Examples of low quality products and services?

What do you remember more?

Quality Defined by Business

The ability of a product or service to consistently meet or exceed customer expectations

Dimensions of Quality

Performance – basic operating characteristics Aesthetics – how a product looks, feels, etc. Special features – “extras” Conformance – to specifications Reliability – consistency of performance Durability – how long it lasts Perceived Quality – customer’s view of quality Serviceability - service after sale/repairs Safety – risk of harm/injury

Quality Terms

Ease of Use – how easy it is for the customer to use the product/service

Service after Use – how well the company “steps up”

Quality of Design – designing quality characteristics into a product or service

Quality of Conformance – making sure the product is produced according to the design/intent of designers

Quality Considerations For Service Industries

Tangibles – appearances (staff, facility, etc.) Convenience – ease of availability/accessibility Reliability – perform consistently & accurately Responsiveness – how well company reacts to

unusual circumstances Timeliness – speed of service delivery/waiting

time Assurance – the knowledge level of the staff Courtesy – how well customer is treated

Consequences of Poor Quality

Loss of business Liability - due to damages or injury Productivity – defective products can

slow down a production process Costs Diminished Reputation

Costs of Quality

Appraisal Costs – costs of measuring, testing and analyzing

Prevention Costs – costs incurred during production design

Failure Costs – difference between what it actually costs to produce/deliver & what it would cost if there were no failures Internal Failure Costs (before)– rework, downtime External Failure Costs (after)– complaints, returns

Quality Responsibilities

Who is responsible for quality in the organization?

Why is it important to face quality issues sooner than later?

Ensuring Continual Quality

Design quality into the process Instill a quality mentality Continually seek new ideas and

improvements

How do you do this systematically???

Total Quality Management

A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.

Total Quality Management

1. Customer defined quality2. Successful product design3. Utilize processes that ensure quality4. Continuous improvement - track results & improve on

them5. Encourage suppliers & distributors to embrace TQM6. All employees responsible for quality – requires training7. Utilize competitive benchmarking8. Shared problem solving – team oriented9. Top management leadership

Read Text

Six Sigma – as defined by GE “…if you can measure how many "defects"

you have in a process, you can systematically figure out how to eliminate them and get as close to "zero defects" as possible.

To achieve Six Sigma Quality, a process must produce no more than 3.4 defects per million opportunities.

An "opportunity" is defined as a chance for nonconformance, or not meeting the required specifications.

This means we need to be nearly flawless in executing our key processes.

IMPT: Read Text

Six Sigma Concepts - DMAIC

Define – process improvement goals Measure – baseline data Analyze – to verify cause Improve – based on analysis Control – transition into production &

monitor continuously

IMPT: Read Text

Example: Trabant

Is Trabant an example of efficiency? Are there issues at Trabant? What solutions do you have?

Problem Solving & Quality

Variety of Techniques – all generally following the same “steps:”Define problemDevelop measures/standardsAnalyze the situationGenerate solutionsImplement solutionMonitor

IMPT: Read Text

Basic Quality Tools

Check sheets Flowcharts Scatter diagrams Histograms Pareto analysis Control charts Cause-and-effect diagrams Run Chart

IMPT: Read Text

Generating New Ideas

Brainstorming Interviewing Benchmarking 5W2H

What, Why, Where, When, Who, How, How Much

IMPT: Read Text

Benchmarking Steps

Analysis using quality tools Identify a critical process that needs

improvement Identify an organization that excels in

the process Study their benchmark activity Analyze data (compare/contrast) Improve process

IMPT: Read Text

Chapter 10

Quality Control

Quality Scenarios

Toner Cartridges Subway Subs Taco Bell Tacos

Quality Control

A process that measures output relative to a standard and acts when outputs don’t meet the standard

Phases of Quality Assurance

Acceptancesampling

Processcontrol

Continuousimprovement

Inspectionbefore/afterproduction

Correctiveaction duringproduction

Quality builtinto theprocess

The leastprogressive

The mostprogressive

Inspection

How Much/How Often Why?? Where/When Centralized vs. On-site

Inputs Transformation Outputs

Acceptancesampling

Processcontrol

Acceptancesampling

Inspection Points

Production Inputs Finished products Before a costly

operation Before an irreversible

process Before a covering

process

Services Restaurants –

appearance, waiting time, food quality, accuracy

Retail – inventory, pricing, appearance, waiting time

Process Control

A statistical procedure using control charts to see if any part of the production process is not functioning properly and could cause poor quality.

Process Control Steps

Define Measure Compare to standard Evaluate Take corrective action Evaluate corrective action

Variations and Control

Assignable Variation - A variation whose source can be identified Examples: fatigue, equipment

adjustments, carelessness, interruptions

Random Variation - Natural variations in the output of processExamples: Countless minor factors

Data Evaluated

Attribute Data (P & C Charts)• Product characteristic evaluated with a

discrete choice: Good/bad, yes/no Variable Data (Control Charts)

• Product characteristic that can be measured on a continuous scale: Length, size, weight, height, time, velocity

Control Charts

A time-ordered plot of sample statistics, used to distinguish between random and nonrandom variability

Compared against control limitsUpper control limitsLower control limits

Process Control Charts

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

UCL

LCL

Sample number

Mean

Out ofcontrol

Normal variationdue to chance

Abnormal variationdue to assignable sources

Abnormal variationdue to assignable sources

Process is In Control When…

No sample points are outside limits Most points near process average Equal number of points above &

below centerline Points appear randomly distributed