Agenda

Basic Concepts – Quality & TQMThe Quality GurusCommonality of Themes of Quality GurusCommonality of Themes of Quality Gurus

QA, QC, SQCQA, QC, SQCCost of QualityQuality ModelsBenefits of TQMState of Quality Model Implementation in IndustriesConclusion

QualityTQM

Quality Gurus

3

IntroductionWhat is quality?

Dictionary has many definitions: “Essential characteristic,” “Superior,” etc.

Some definitions that have gained wide acceptance in various organizations: “Quality is customer satisfaction,” “Quality is Fitness for Use.”

The American National Standards Institute (ANSI) and the American Society for Quality (ASQ) define quality as:

“The totality of features and characteristics of a product or service that bears on its ability to satisfy given needs.”

Why care about qualityincrease productivity

expand market share

raise customer loyalty

enhance competitiveness of the firm

at a minimum, serve as a price of entry

Deming JURAN Philip Crosby

Basic Premise: Good quality – low price - profitableProposed: 4 step process: Plan – Do – Check – Act (PDCA)

Juran, like Deming was invited to Japan in 1954 by the union of Japanese Scientists and engineers.

Proposed: simple definition of “Fitness for Use”Quality PlanningQuality ControlQuality Improvement

Quality is defined as conformance to requirements, not “goodness”

• Prevention, not appraisal.

• Zero defect• Price of non-

conformance, not indexes.

The Quality Gurus

• Karou Ishikawa: “Quality Control Circles (QC Circles).• Shigeo Shingo: “Poka Yoke” – Mistake – proofing• Genichi Taguchi: Design Quality

Commonality of Themes of Quality GurusInspection is never the answer to quality improvement, nor

is “policing”.

Involvement of leadership and top management is essential to the necessary culture of commitment to quality.

A program for quality requires organization-wide efforts and long term commitment, accompanied by the necessary investment in training.

Quality is first and schedules are second.

DIFINITION OF QUALITYThe concept and vocabulary of quality are elusive. Different

people interpret quality differently.

When asked what differentiates their product or service;

The banker will answer” service” The healthcare worker will answer “quality health care” The hotel employee will answer “customer satisfaction” The manufacturer will simply answer “quality product”

Dictionary Definition

Quality Assurance-

All actions taken to ensure that standards and procedures are followed to and that delivered products or services meet performance requirements.

Quality Control-

Quality control refers to the process, most often implemented in manufacturing, of monitoring the quality of finished products through measures and an overall corporate commitment to producing defect-free products.

QA V.S QC

Quality Assurance

Examples of quality assurance include process checklists and project audits as well.

The auditor being able to tell if the deliverable seems acceptable based on the process used to create it (quality assurance).

Quality Control

Examples of quality control activities include deliverable peer reviews and the testing process too.

If your project gets audited, for instance, an auditor might not be able to tell if the content of a specific deliverable is acceptable (quality control).

Dimensions of Quality

Quality Improvement Quality improvement is the reduction of

variability in processes and products.

Alternatively, quality improvement is also seen as “waste reduction”.

Dimensions of Quality

Statistical Methods for Quality Control and Improvement

Statistical ProcessControl (SPC)Control charts are used for process monitoring and variability reduction.

SPC is an on-line quality control tool.

INTRODUCTION TO TQMWhat is TQM?

TQM is the integration of all functions and processes within an organization in order to achieve continuous improvement of the quality of goods and services. The goal is customer satisfaction.

“ No doubt , humans are always deficient”

(Al-Quran)

Customer Satisfaction Three Part System

Human Resource Management

Customer Expectations

Company Operations(Processes)

Customer Satisfaction

Cost Of Quality

Types of Quality Costs

The cost of quality is generally classified into four categories

1. Cost of Prevention

2. Cost of Appraisal

3. Cost of Internal Failure

4. Cost of External Failure

• Higher quality means higher cost• The cost of improving quality is less than the

resulting savings.• Quality costs are those incurred in excess of

those that would have been incurred if the product were built or the service performed exactly right the first time.

Three Views of quality Costs

Quality CostsCost of PreventionPrevention costs include those activities which remove and

prevent defects from occurring in the production process.Included are such activities as quality planning, production

reviews, training, and engineering analysis, which are incurred to ensure that poor quality is not produced. Appraisal

Those costs incurred to identify poor quality products after they occur but before shipment to customers. e.g. Inspection activity.

Quality Costs

Internal FailureThose incurred during the production process.Include such items as machine downtime, poor quality

materials, scrap, and rework.External FailureThose incurred after the product is shipped.External failure costs include returns and allowances,

warranty costs, and hidden costs of customer dissatisfaction and lost market share.

Quality CostsCOST OF QUALITY IS THE COST OF NON QUALITY

1: 10:100 Rule

“A stitch in time saves nine”

%

of sales

0

5

10

15

20

25

2001 2002 2003 2004 2005

External Costs

Internal Costs

Appraisal

Prevention

ISO 9000: 2000Malcolm Baldrige National Quality Award

Deming PrizeSix Sigma

ISO10012

ISO10012

ISO9000ISO

9000

Quality management

systems - Fundamentals &

vocabulary

ISO9004ISO

9004

Quality management

systems - Guidelines for performance improvement

ISO9001ISO

9001Quality management systems - Requirements

Technical Reports

Technical Reports

ISO10012

ISO10012Measureme

nt

ISO19011

ISO19011Audits

Guidelines

Annexes A & B for information

only

A desired result is achieved more efficiently when activities and related resources are managed as a process

PROCESS“set of interrelated or interacting activities

which transforms inputs into outputs

PROCESS“set of interrelated or interacting activities

which transforms inputs into outputs

INPUT OUTPUT

RESOURCES

CONTROLS

PRODUCT

PROCESS EFFECTIVENESS

Extent to which planned activities are realized and planned

results achieved

PROCESS EFFICIENCY

Relationship between the result achieved and

the resources used

ISO 9001:2000 Process Approach

Concept of integration

► ISO 9001:2008, ISO 14001:2004 & OHSAS 18001:2007 standards based on PDCA concept, therefore having similar structure:

Policy

Planning

Implementation and operation

Performance assessment

Improvement

Management review

Toyota Method- Top leadership commitment required

Problem Solving(Continous

inprovement & learning)

People and Partners

(Respect, challenge, and Grow them)

Process

(Eliminate Waste)

Philosophy

(Long-Term Thinking)

• Commitment to building a learning organisation• Commitment to understand process in detail• Commitment to through consideration in decision making

• Commitment to developing leaders who live the philosophy• Commitment to developing people and partners for the long term

• Commitment to lean methods for waste elimination • Commitment to value stream perspective.•Commitment to develop excellent process suported by throughly tested technology• Commitment to long –term

contribution to society• Commitement to company ecnomic performance and growth.

The Cornerstone of Lean – The Toyota Production System

Based on two philosophies:1. Elimination of waste 2. Respect for people

7 Wastesoverproductionwaiting timetransportprocessinventorymotiondefective goods

Deming Prize

PolicyOrganization and operations

Collection and use of information

Analysis

Planning for futureEducation and

trainingQuality assuranceQuality effectsStandardizationControl

Concentrates on :

Baldrige Criteria Framework: A Systems Perspective

Category Point Values1 Leadership 1202 Strategic Planning 853 Customer Focus 854 Measurement, Analysis, and

Knowledge Management 905 Workforce Focus 856 Process Management

857 Results

450TOTAL POINTS 1,000

30

Six Sigma - SIGMA LEVELSSigma Level ( Process Capability)

Defects per Million Opportunities

2 308,537

3 66,807

4 6,210

5 233

6 3.4

31

PHASESPhases of Six Sigma are:

Define specific goals to achieve outcomes, consistent with customers demand and business strategy

Measure reduction of defectsAnalyze problems ,cause and effects must be

consideredImprove process on bases of measurements and

analysisControl process to minimize defects

Benefits of TQMGreater customer loyaltyMarket share improvementHigher stock pricesReduced service callsHigher pricesGreater productivity

Conclusion Remember the earth revolves around the CUSTOMER. Quality begets

customers and customers beget quality. Let us all have action plans to support quality, this will make the world happy and earn us the blessing of God Almighty.

“Actions are direct reflection of one’s intentions” (Al-Quran)