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Quality Management – Prof. Schmitt Lecture 01
Introduction L 01 Page 0
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Lecture Quality Management
01 Introduction
Prof. Dr.-Ing. Robert Schmitt
Quality Management – Prof. Schmitt Lecture 01
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Dates of lectures
The lectures in Quality Management take place every Wednesday from 1:00 pm to 2:30 pm in Room 38 A 1 of the ITMC (Worringer Weg 1).14.10.09 1. Introduction
21.10.09 2. Normative Quality Management Systems
28.10.09 3. Strategic Quality Programs
04.11.09 4. Quality and Economics
18.11.09 5. Quality during Field Operation
25.11.09 6. Quality Management in the Production
02.12.09 Case Study: KAIZEN Lecturer Dr. Starke
09.12.09 8. Quality Management in the Early Phases – Focus Product
16.12.09 7. Quality Management in the Early Phases – Focus Process
13.01.10 9. Quality Management in the Early Phases – Focus Faults and Defects
20.01.10 10. Quality Management in the Procurement
27.01.10 11. Quality and Information
03.02.10 12. Quality Management in Service Industries
see also www.wzl.rwth-aachen.de
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Dates of Exercises
The Exercises in Quality Management take place every Thursday from 4:00 pm to 5:30pm in Room 38 A 3 of the ITMC Worringer Weg 1).
15.10.09 1. Quality Management Tools
22.10.09 2. Basics of Statistics
29.10.09 3. Implementation of a Quality Management System
05.11.09 4. Quality and Costs
19.11.09 5. Evaluation of Test and Field Data
26.11.09 6. Statistical Process Control (SPC)
10.12.09 7. Quality Function Deployment (QFD)
17.12.09 8. Design of Experiments (DoE)
14.01.10 9. Failure Modes and Effects Analysis (FMEA)
21.01.10 10. Assessment of Suppliers
28.01.10 11. Practical Computer Training
(ADITEC Room 102/103; 4:00 - 5:30pm)
04.02.10 12. Quality Management in Service Industries
see also www.wzl.rwth-aachen.de
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Information Concerning the Examination „Quality Management“
Examination in “Quality Management“
– It will be an examination of 120 minutes which consists of 6 exercises.
– Relevant for the examination are the lectures as well as the exercises.
– Not relevant for the examination, but nevertheless very interesting is the “CAQ-Workshop” and the case study.
– The exam will take place11. February 2010; 14:00-16:00h Kármán-Auditorium, Fo4
see also www.wzl.rwth-aachen.de
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Offers During the Lecture „Quality Management“
Offers during the lecture „Quality Management“
– Lectures with participation of lecturers from the industry
– Exercises and practical work with industrial examples of useThe practical computer training is limited to 2x20 participants The registration can be done in during the first lecture.
– Time for questions during and after the lectures and exercises
– 2 consultation-hours with the assistants before the exam
– Extensive lecture notes (see slide with lecture notes sale)
– Exams of the last 5 terms with sample solutions (see slide with lecture notes sale)
see also www.wzl.rwth-aachen.de
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Sale of the lecture notes „Quality Management“
When?
Where?
Costs:
Tuesday and ThursdayFrom 1:00 to 2:00 pm
WZLRoom 009, 53BSteinbachstraße 53B
€ 20,-
Lecture Notes Sale
For exam preparation the tasks and sample solutions of exams of the last 5 semesters can be bought at the WZL.
see also www.wzl.rwth-aachen.de
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Further Literature
T. Pfeifer:Quality ManagementStrategies-Methods-Techniques
T. Pfeifer:QualitätsmanagementStrategien-Methoden-Techniken
T. Pfeifer:Qualitätsmanagement Praxishandbuch
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contact
Your person of contact concerning the lecture „Quality Management“
Dipl.-Psych. Helmut Lieb
Telefon: 0241/ 80-26993;
E-Mail: [email protected]
Steinbachstraße 25Aditec Room 11252074 Aachen
see also www.wzl.rwth-aachen.de
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Contents
� Understanding of Quality and Quality Management
� Consequences of Bad Quality
– Economical
– Image
– Judicial
� Importance of Quality Management
� Ensuring High Quality – But How?
Literature
Becker, M.: „Unternehmenskultur als Auftrag an die Betriebspädagogik“, in: Geißler, H. (Hrsg.), Unternehmenskultur und Vision. Frankfurt a. M.: Peter Lang Verlag, 1991, S. 199-217
Feigenbaum, A. V.: Total Quality Control. 3rd. Edition, London: McGraw Hill, 1961
Frehr, H.-U.: Total Quality Management: unternehmensweite Qualitätsverbesserung. München; Wien: Carl Hanser Verlag, 1993
Hummel, T.; Malorny, C.: Total Quality Management: Tips für die Einführung. 2. Aufl., München, Wien: Carl Hanser Verlag, 1997
Juran, J. M.: Der neue Juran: Qualität von Anfang an. Landsberg/Lech: Verlag Moderne Industrie, 1993
Kamiske, G. F.: Die hohe Schule des Total Quality Management. Berlin: Springer Verlag, 1994
Kaplan, R. S.; Norton, D. P.: Balanced Scorecard. Stuttgart: Schäffer-Poeschel Verlag, 1997
N.N.: Application Forms & Instructions for Business, Education and Health Care. Baldrige National Quality Program 2000. National Institute of Standards and Technology (NIST), 2000
N.N.: Die acht Eckpfeiler der Excellence: Die Grundkonzepte der EFQM und ihr bedeutsamer Nutzen. Informationsbroschüre, European Foundation for Quality Management (EFQM), 2000
N.N.: Die Leistungen steigern mit dem EFQM-Modell für Business Excellence. Bewerbungsbroschüre, European Foundation for Quality Management (EFQM), 1999
Pfeifer, T.: Praxishandbuch Qualitätsmanagement. München, Wien: Carl Hanser Verlag, 1996
Pyzdek, T.: The Complete Guide to Six Sigma. Tucson: Quality Publishing, 1999
Siebert, G.; Kempf, S.: Benchmarking: Leitfaden für die Praxis. München, Wien: Hanser, 1998
Zink, K. J.: „Total Quality Management – Begriff und Aufgaben“. In: D. Preßmar (Hrsg.): Total Quality Management I. SzU, Band 54, Wiesbaden: Gabler, 1995
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Understanding of Quality
Colloquial, often referring to products:
� Free from defects
� Lasting
� Of higher value
„Quality is the overlap rate of explicit as well as implicit customer demands with the supplied product characteristics.”
Definition of quality
„Target“= Demands
„Actual“= Characteristics
Quality...according to this, quality is customer satisfaction.
The colloquial understanding of quality often refers to product quality regarding characteristics like no defects, long-lasting and high value. The modern, corporate understanding of quality exceeds the colloquial one and is seen as the overlap rate of „target“ and „actual“. The term „target“ holds explicit expressions by a customer as well as those which remain unspoken and are just implicit wishes. Those can be technical characteristics but also subjective issues, delivery time and price of a product (exact: of a set of characteristics). The understanding of quality will be examined in detail in chapter 2.
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Changing the Scope of Quality
Market analysis
Use
Inspection and Testing
Manufacturing/ Assembly
Purchase
Planning
Development/ Design
Qualitycircle
80‘s
Development ofmethods for the
prevention of failurewithin planning phases
(e.g. construction or process FMEA)
90‘s
Total quality thinkingwith adaption of the
company´s culture throughe.g. TQM or integrated
Quality Management
30‘s
Development of statistical methodsfor process controland sample inspection
20‘s
Grading and Sourcing out
Measures of Quality Management
The Quality Management has the responsibility to take measures in order to guarantee the quality in the entire company. A clear development of Quality Management is to be observed.
Shaped by the Tayloristic approach of “division of labour”, the activities of quality assurance were first limited with the final inspection whereby the principle of “failure detection with objective” dominated the sorting out of incorrect parts.
In the 30's the focus was directed from the product towards the manufacturing process. Although the basics for the development of statistical activities for process control and monitoring were already compiled during this time, the application took place many years afterwards.
Since the beginning of the 80's the activities of quality assurance were focused on production planning stages (off-LINE). With the use of the preventive quality assurance methods the aim is to detect failures at the planning stages before production starts and prevent the occurance by suitable measures.
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Quality Management Is...
...the sum of structures and activities (processes) that aim at generating maximum corporate quality.
The lecture improves the understanding of corporate Quality Management and identifies which control lever can be modified in which way to approach the target of lasting excellent quality (means: economical customer satisfaction).
Projectmanagement
Collectingcustomer demands
Company development
Process design
Innovation
Productionoptimisation
Organisationalstructure
...
Quality Management is the sum of structures and activities that aim at generating maximum corporate quality. In fact, this definition affects many different fields of a company. For example the project management, the organisational structure, etc. This means, that Quality Management can not be separated from the companies’ day-to-day business.But how can the Quality Management be specified if it can’t be seen separated from management, development, production, planning etc.?Quality Management helps to understand everything that is going on in the company, to identify coherences and to modify the control levers for success pointedly and systematically (corporate quality). On the one hand, this means the conservation of quality within the company, on the other hand the continuous improvement; Starting microscopic e.g. with the task and process of a worker (terms of ergonomics), this leads to macroscopic fields (e.g. company strategy).
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Structuring the Control Levers in Companies and in the Lecture
Quality Management Systems and Models structure the control levers of success in a company (see lecture 2 and 3). Starting from the customer different fields of Quality
Management also occur along the product lifecycle.
Lecture 2: Standardised Quality Management Systems, terms etc.Lecture 3: Strategic Quality Programs, company modelling/ focusingLecture 4: Economical point-of-view
Frame of action
7: Development,directed Innovation
1 6. .
KA: KundenanforderungenQM: Qualitätsmerkmale
Kundenanforderungen
Ge
wic
htu
ng
Kun
de
n-
be
wert
un
g
(Ku
nd
e)
Verg
leic
h m
itW
ett
be
we
rb
Vergleich mitWettbewerb
(Technologie)
Zusammenhangzwischen
KA und QM
Richtungder Optimierung
Korrelation
Qualitäts-merkmale
Kun
de
n-
anfo
rderu
nge
n
1
2
4
6 wichtige
Qualitätsmerkmale
6
techn. Bedeutung5
techn. Schwierigk.6 techn. Schwierigk.6
Schritte bei der Entwicklung des
House of Quality
3
9: Preventive error avoidance
Verbindung System-FMEA
Produkt und Prozess
Verbindung System-FMEA
Produkt und Prozess
Werkzeug
fehlerhaft
Schleif-
fehler
Durch-
messerzu groß
Ventil
klemmt
Drossel-
ventil öffnet nicht
Konstant-drossel-
bremslstg. fehlt
Motor-brems-
leistung zu gering
Motor defekt
Fahrzeug
bleibt liegen
Einstellung,
StörgrößeSchleifen
Ventil-
durch-
messer
VentilKonstant-
drossel
Konstant-
drossel
Bremssys.
Motor-
brems-
system
MotorFahrzeug
(LKW)
Struktur-ebene
Beispiel
Fehleraus-prägung
Prozess-
parameter
Prozess-
schritt
Merk-
malBauteil
Bau-
gruppe
Unterkom-
ponente
Kompo-
nente
Haupt-kompo-
nente
System FMEA
Produkt
FF F FU Ebene IIFF F FUFF F FU Ebene II
FF F FU Ebene III
FF F FU Ebene IV
FF F FUEbene V (bis 1996: Kons tr uktions -FMEA)
FF F FU Ebene IIIFF F FU Ebene III
FF F FU Ebene IVFF F FU Ebene IV
FF F FUEbene V (bis 1996: Kons tr uktions -FMEA)
FF F FUEbene V (bis 1996: Kons tr uktions -FMEA)
System FMEA
Prozess FF F FUEbene VII FF F FUEbene VII
FF F FU Ebene I Legende: = Fehlerfolge = Fehler
= FehlerursacheF
FU
FFFF F FU Ebene I FF F FU Ebene I Legende: = Fehlerfolge = Fehler
= FehlerursacheF
FU
FFLegende: = Fehlerfolge = Fehler
= FehlerursacheF
FU
FF
System
5: Product use and field data
Großrechner
• Quali tätsprognose
• Kostenprognose
• Quali täts-/Kostendesign
Daten-
reduktion
• Fehler• Baureihe
• Verschleiß-verhalten
• Kosten
• ...
Quelle: DaimlerChrysler AG
Ausfall-
daten
3-stufige
Qualitäts-
analyse
Optimierte Produkte
• Zuverlässig-keitsrelevanteKomponenten
• ...
• MittlereLebensdauer
• Kosten
• ...
• entstandene Kosten• ausgetauschte Komponenten
Händler,
VertragswerkstattMercedes-Benz
ProduktionEntwicklung
Garantiefall
6: Production
Vorlauf durchführen Eingriffsgrenzen bestimmen Regelkarte führen
Prozessanalysierenund Fehler eleminieren
neinnein
ja
ja
ja
Eingriffsgrenzenberechnen undeintragen
Kenngrößenberechnen und einzeich-nen
Fehlerursacheermitteln undFehlereliminieren
fähignein
Punkte mit syste-matischem Einflusskennzeichnen undbei Neuberechnungd. Eingriffsgrenzenausschließen
Stichprobemessen
Stichprobemessen
Fähigkeitermitteln
Stichprobemessen
Stichprobemessen
weitereStichproben
weitereStichproben
systema-tischer Fehler
systema-tischer Fehler
8: Process optimisation
10: Purchase
11: Networking, Information und IT-Support
12: Translation of contents to the service and hybrid sector
According to the widespread definition of Quality Management, the lecture shows the whole company. Lecture 2 and 3 open up the frame of action and highlight how companies can be modelled (pictured). Goal of Quality Management Systems and Quality Programs is not only to give a simplified picture of the company, but to be more specific: The transparency, delivered by the visualisation, shows weaknesses, allows comparisons of companies and enables the definition of minimum requirements for the organisationof a company (e.g. certification).Lecture 4 widens the view for company-wide coherence of quality and economics before individual divisions of the company are considered.Lecture 5 focuses on the end of the product lifecycle, where the paying customers decide about good or bad quality. In this stage a company can learn a lot - the lecture shows how.Backtracking the product creation process, the production (lecture 6) and the development with a directed innovation represent important milestones on the way to generating external customer satisfaction. Lecture 8 shows how business processes - also in development and production - can be optimised systematically. After that lecture 9 concentrates on a preventive layout of product- and process.The purchase (lecture 10) represents another pre-stage in the product creation process. Lecture 11 connects the prior contents with the IT-branch and points out the important benefits that can be derived.Finally lecture 12 translates the content of the former lectures to the industrial service sector.
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Consequences of Bad Quality - At a Glance
Source: Desatnik, Brunner
"90 % of customers, which are dissatisfied with the product quality, avoid the product in the future."
10%
90%
“Only 4% of the dissatisfied customers complain about the bad quality."
4%
96%
: lost customer
“Each customer will communicate his dissatisfaction to at least 9, sometimes 20, people."
“Each failure above the acceptable averageof market leaders causes a decrease of
the selling volume by 3-4%."
Failures/Unit1 2 3 4 5
90
100
%
Source: Study about Investment goods sector
Expected selling volume
Exp
ecte
d
failu
re r
ate
Se
llin
g v
olu
me
(%
)
5 Mio. €Missed sales and corresponding profits
1 Mio. €Warranty costs
1 Mio. €Costs for elimination of defects
Quality is the crucial requirement for a “good reputation”. Those who have it, will find all doors open, but those who have lost it, frequently perish or have to struggle desperately to have their names associated with that magic word “Quality” again.
A customer, who is dissatisfied with the product or the performances of the company and shares this idea with other people, has a great importance for the company. He represents only the tip of the iceberg.
About 24 further customers are dissatisfied with the product but do not express this to the company.
Not only the company suffers from dissatisfaction, but also other people. In some cases this is even more than 20 people.
Failures lead to the fact that buyers avoid the product in the future and this leads to sales and market share losses.
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Consequences of Bad Quality – At a Glance
Product quality
Process quality
System quality
-Customer dissatisfaction-Image damage-Reduction of market value-Complaints-Product recalls-High financial effort-...
-Waste-Deficiency of efficiency and eventually even effectiveness-Internal customer dissatisfaction-Demotivation-...
-Bad differentiation from competition-Demotivating company culture-Disorientation caused by imprecise responsibilities-Demotivation by lack of attraction-Fear caused by lack of competence-...
Consequences of bad quality
The classic understanding of quality differs between product, process and system quality. The consequences of bad quality can be differed accordingly.
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An Example From the Past: The „Ford - Pinto Desaster“
Situation:
� High competition, especially in the compact car segment
� Short development period demanded
� High cost pressure
Product specifications („Green Book“):
� Purchase price below 2000 $
� Weight below 2000 pounds.
� „Low Cost of Ownership“
� Big trunk
� „Safety doesn´t sell“
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Risks Have to Be Analysed in a Hholistic Way
Compress.mov
(Pre-) Start of production:
� Crashtest showed a high fire risk in case of rear impact, even at low speed
� Technical solution (11$ additional expenses per car vs. 180 expected dead people at a „price“ of 200.000$)
Actual consequences:
� Conservative approximation 500 dead people
� Recall of 1,2 Mio Pinto not until 5 years after SoP
� Absolute additional costs of more than 300 Mio $
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Spectacular Product Recalls
In the year 2000 tires of the Japanese company were responsible for the overbalancing of Ford Explorer all-terrain vehicles. This problem ended in the biggest callback worldwide.
Damaged tires
Recall amount 14,4 million tires Cost for recall 800 million US-Dollar
Poison in cansIn 1999 the beverage company had to callback Coke-cans in Belgium and Luxembourg. While transportation on wood pallets the cans were contaminated by timber preservatives before bottling.
Dangerous side effects
Cause for recall 52 deaths
The cholesterol-downer Lipobay was taken out of worldwide commerce by the pharmaceutical company. In case of combination with another substance serious side effects occurred.
Recall amount 3,1 million cars
Fire in the engine compartmentIn september 2001 the automotive company starts a callback for the brands Chrysler and Jeep. Causes: Risk of fire in the engine compartment, problems with the automatic and defective welding seams at the gear box.
Oily protheses
Paid damages 1 billion US-Dollar
In the year 2000 the swiss medical technology-company had to callback artificial knee- and hip-joints. The protheses were polluted by mineral oil.
The list of spectacular product recalls shows, that not only automotive companies are affected but also companies of other branches.
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Company Success Through Product and Process Quality
Company successCompany success
Quality ManagementQuality Management
Market growthMarket growth Profit growthProfit growth
Effectiveness increased by product quality
Effectiveness increased by product quality
Motivated, qualified and informed
employeesEfficiency increased by process quality
Efficiency increased by process quality
Quality Management increases effectiveness, efficiency and leads to motivated, qualified and informed employees. Company success is based on these three columns.
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Deming-Chain: Connection Between Quality and Company Success
Quality improvement Improvement of productivity
Reduction of costsReduction of prices
Increase in the market share Securing the position
Securing the jobsCompany Success
The connection between an increase of quality and the success of a company has already been identified long ago. Professor Deming, an American scientist who had great success in introducing and realisingQuality Management in Japan and who is one of most well known scientists in the fields of quality, visualised this coherence in the „Deming-Chain“.
This chain gives a causal relationship between advance in quality and company success. Of course the relationships in the chain just give a simplified picture of the actual very complex coherences, but they show the main relations and thereby create an awareness for the importance of quality.
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Importance of Quality Management
Quality Management focuses all factors for company success. The lectures show how to modify them systematically and pointedly by understanding the company coherences.
Satisfied customers
Satisfied shareholder
Motivated employees
Safeguarded jobs
Company culture
Mastered processes
Quality of the offered
productQuality image Market share
Early market entrance
Economics of Scale
Price
Costs
Warranty costs
Productivity
BlunderProcessing
time
Profit
effe
ctive
efficient!
The key factors for company success have a direct cause-and-effect-relationship.
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Success is Based on Several Columns
Vision Incentive AbilityInstru-ment
Action Plan
Success
Vision Incentive AbilityInstru-ment
FalseStart
VisionAction Plan
Incentive AbilityFru-
stration
VisionInstru-ment
IncentiveAction Plan
Fear
Vision AbilityInstru-ment
Action Plan
Little Effect
Incentive AbilityInstru-ment
Action Plan
Con-fusion
Vision
Like the previous slide showed, the factors for success provide coherences in form of direct cause-and-effect relationships.
With this column based visualisation the diversity of perspectives and the amount of coherences becomes even more obvious. Quality Management claims to check each perspective and to learn from this regarding corporate quality.
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Determining the Time for Improvement Is Important
Failure prevention in the early phases does not only save time and money, but increases the customer satisfaction.
-.10
1.-
10.-
100.-
Co
st p
er
failu
re
Failureprevention
Failureelimination
Am
ou
nt of
failu
res
Failureprevention
Processorganisation
Productdevelopment
Production Product useProduct
developmentProduction Product use
Failureelimination
Failureorigin
Not Only Modifying the Control Lever Is Important, But Also Determining the Time
The earlier the control lever for corporate quality is moved into the right direction the stronger is its impact.
Necessity of Quality Planning
The economical importance of Quality Planning cannot be measure, assuming that during the development and construction of a product already almost 70% of the later production costs are determined.
At the same time, today 70-80% of all product failures have their origin in planning and designing steps before SoP. In contrast to this, measures for the elimination of failures start way to late – often in end-of-line tests or already at the customer.
So the aim is, to reduce the amount of failures and their causes and to move their detection to the early phases of the product creation. With a widespread failure prevention and a strict process organisation, less failure should occur and more failures can be eliminated at an early stage.
According to this, less failures are made and follow-up costs can be reduced (see picture on the right: 10-times rule for follow-up costs of failures). So time and money can be saved and consequentially due to higher quality the customer satisfaction is increased.
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Ensuring High Quality – But How?
Required effort0
100%
Pe
rfe
ctio
n o
f solu
tion
[%
]100%
PLAN*
DOCHECK
ACT
A ambitious
R eal
T erminated
Deming circle
Goals:
Pareto principle
*)S pecific
M essurable
Deming Circle, Pareto Principle
As a first example for the „How“ a proceeding-model, a recommended action for a good determination of goals and a visualisation of coherences will be explained:
The Deming circle describes a systematical approach towards continuous improvement. The goals which are identified in the step “plan” should fulfil the SMART-requirements. The Pareto principle shows that (e.g. by recurrences of the PDCA circle) the progress towards perfection decreases. Thus, different further proceedings can be derived if necessary (see further lectures).
Those three different examples/methods indicate, that Quality Management is scalable – from generic to specific – and that the bigger picture has to be kept in mind.
Details for Continuous Improvement
Often right from the beginning the focus lies on perfect solutions. To identify and realise such solutions, usually a lot of time and personnel is necessary. In addition, the danger that a solution, which has been developed with high effort turns out to be improper or adverse during the realisation, exists. Therefore, it often makes more sense not to concentrate on perfect solutions exclusively, but also to consider solutions, which are quickly realisable.
After the introduction, there comes a phase of continuous improvement. Within this phase the focus should be on testing and verifying the implemented methods and measures, as well as challenging the processes and structures to enhance further improvements. Therefore, the Quality Management System should be designed to enhance and support continuous improvement. The system should be build open, transparent and developable and should not only allow but also encourage intensive communication.
Increasing effectiveness, efficiency, and ability for quality and to be competitive is not a temporary project which ends with the introduction of a Quality Management System. In fact, it is more important not to be satisfied with the achieved improvements, but to permanently learn and continuously improve.
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Diversity of Quality Management
Lectu
re Q
ualit
y M
anagem
ent
- Terms & comprehension
- Understanding coherences
- QM Systems & Standards
- Methods/Systematics
- Analyses
- Proceedings
- Visualisation models
Lecture Quality Management
Quality Management holds more than just implementing standards and methods. In fact, Quality Management consists of cross functional tasks and the understanding of the importance and challenge of high quality in a company. The lecture Quality Management aims at picking up on this extended understanding of quality and conveying it.
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... The Turnaround Starts With the First Stroke
We aredeeply
concerned!!!WZL & IPT
on board
Quality Management – Prof. Schmitt Lecture 01
Introduction L 01 Page 26
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„„Without quality everything is nothing.Without quality everything is nothing.““
Thank you very much for your attention!Thank you very much for your attention!