What is Quality?

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What is Quality?. Operations Management Dr. Ron Lembke. What is Quality?. Dad and son cycle across US Dad has had electro-shock therapy, and keeps recognizing things on the trip Not supposed to remember Realizes needs more help Used to be philosophy prof. - PowerPoint PPT Presentation

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Total Quality Management

What is Quality?Operations ManagementDr. Ron LembkeWhat is Quality?Dad and son cycle across USDad has had electro-shock therapy, and keeps recognizing things on the tripNot supposed to rememberRealizes needs more helpUsed to be philosophy prof.Defining quality drove him over the edge the first time

What is Quality?Quality you know what it is, yet you dont know what it is. But thats self-contradictory. But some things are better than others, that is, they have more quality. But when you try to say what the quality is, apart from the things that have it, it all goes poof! Theres nothing to talk about. ... Robert M. Pirsig, Zen and the Art of Motorcycle Maintenance, p. 163

What is Quality?Obviously, some things are better than others but whats the betterness? So round and round you go, spinning mental wheels and nowhere finding anyplace to get traction. What the hell is Quality? What is it?

Robert M. Pirsig, Zen and the Art of Motorcycle Maintenance, p. 164

What is Quality?Brands you associate with Quality?AppleRolexMercedes, BMW, Lexus, ToyotaGodivaStarbucksOur Definition of QualityHigh price = high quality? Dont think soHigh end brands use expensive componentsQuality is conformance to requirements--Philip Crosby, Quality is Free 1979How well does it do what its supposed to do?Stated vs implied needsWe will focus on ConsistencyTotal Quality ManagementAn emphasis on Quality that encompasses the entire companyContinuous ImprovementEmployee empowerment, quality circlesBenchmarking - best at similar activities, even if in different industriesJust In Time - requires quality of suppliersTQM Tools - allow you to measure progressImportance of QualityLower costs (less labor, rework, scrap)Market ShareReputationProduct liability, recalls, warrantiesInternational competitivenessRoots of Quality1920s Bell Labs:Acceptance SamplingWant to guarantee certain % defective,How many do we need to sample?Supposedly 2% defective, we test 40 and 2 are bad, are more than 2% bad?InspectionDoes not add valueInspectors distrusted by workersIncrease quality and reduce need for inspectorsPoka-yoke - mistake proofHave workers do own inspectingBefore are inputs good?During process happening properly?After conforms to standards?Lost in Translation?IBM Canada Ltd. ordered some parts from a new supplier in Japan. The acceptable quality level allowed for 1.5% defects. The Japanese firm sent the order with a few parts packaged separately, & the following letter ...

Lost in Translation?Dear IBM: We dont know why you want 1.5% defective parts, but for your convenience we have packaged them separately.Sincerely,

W. Edwards DemingStatistics professor, specializing in acceptance samplingWent to Japan after WW IIHelped Japanese focus on and improve qualitySystem (not employees) is cause of poor qualityFourteen Points

Demings ParadigmsIntrinsic & extrinsic motivationManagement needs to improve and innovate processes to create resultsOptimize the system toward its aimCooperation is better than competitionJoseph JuranWent to Japan in 1951Quality HandbookQuality begins by knowing what customers wantToday Voice of the Customer80% of defects are controllableQuality PlanningQuality controlQuality improvement

Philip B. CrosbyMartin Marietta, ITT, starting in 1960sQuality is Free 1979I cant spend more on materials and training!Better reputation, sales, profitsManagement must be firmly behind any quality plans Do it right the first time

ISO 9000 CertificaitonISO is a word from the Greek isos, meaning equal (isoquant, isoprofit line). Its not an abbreviation.

Older ISO StandardsISO 9000:1994 StandardCertifies processes are standardized9001 for distributors9002 for assembly9003 for full-line manufacturing and retailing ISO 9000:2000 StandardAll replaced by ISO 9001:2000Conversion mandatory by Dec. 15, 2003

Basic PremiseA well-designed, well-implemented, and carefully managed quality system provides confidence that the outputs will meet customer expectations and requirements.

So why do it?In Europe (and elsewhere) only buy from certified companies to ensure safetyTelecommunications equipmentMedical devicesGas appliancesToysConstruction productsRequired for international competitivenessNot to mention all of the other benefits of trying to improve qualityQuality CompetitionsDeming Prize (Japan)Named after noted quality expertEstablished in 1950FL Light & Power, AT&T Malcolm Baldridge Quality Award (U.S.) 1987Awarded to 3 companies each yearFree analysis of your companyState-level awards run separatelySecretary of Commerce, died in a rodeo

How We Got HereNational conference on Productivity, 19827 conferences leading up to White House Conference on ProductivityAugust 20, 1987 Award createdStimulate companies to improve quality and productivityRecognize success to be example to othersGuidelines for companies to assess progress

Malcolm Baldrige1981-87 secty. of Commerce. Proponent of quality management as key to US economic survivalHelped draft early version of quality actResolved technology transfer differences with China and IndiaFirst Cabinet-level meetings with Soviet Union in 7 yearsPaved way for increased access for US firms

Reagans Cabinet

Champion Roper National Cowboy Hall of FameJuly 25, 1987 N. California rodeoHorse threw him, fell on him, and crushed him

Team Roping

Baldrige Criteria

Point Values

Malcolm Baldrige Double-Winner #1: Solectron1991 1997

Malcolm Baldrige Double-Winner #1: Solectron1991, 1997

Two Great HonorsFor attention to qualityWhat lovely trophiesAnyone notice anything?

Oopsie!I guess somebodys processes arent under controlSummaryWhat is Quality?Pioneers of QualityISO 9000: overview and intentMalcolm Baldrige National Quality AwardHistory, goals, process