IE 362 Quality Control. Week1. (Quality and TQM) Lecture Outline

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1 IE 362 Quality Control Week1 Introduction to Quality Improvement. (Quality and TQM) Dr. Sun Olapiriyakul Lecture Outline Meaning of quality 8 dimensions of quality TQM Quality concepts and philosophies (Deming s 14 points, PDCA) 1

American Society for Quality What is Quality: Customer s Perspective Fitness for use Quality of design designing quality

2 The meaning of quality how good or bad something is a degree or level of excellence Marriam Webster Dictionary Oxford American Dictionary The totality of and of a product or that bears on its ability to satisfy stated or implied needs American Society for Quality What is Quality: Customer s Perspective Fitness for use Quality of design designing quality characteristics into a product or service A Mercedes and a Ford are equally fit for use but with different design dimensions. 2

3 8 Quality Dimensions Different people interpret quality differently. How can we quantify quality in measurable terms? 1. Performance 2. Features 3. Reliability 4. Conformance 5. Durability 6. Serviceability 7. Aesthetics 8. Perception 3

4 Dimensions of Quality: Services Time and timeliness how long must a customer wait for service, and is it completed on time? is an overnight package delivered overnight? Completeness: is everything customer asked for provided? is a mail order from a catalogue company complete when delivered? Courtesy: how are customers treated by employees? are catalogue phone operators nice and are their voices pleasant? Consistency is same level of service provided to each customer each time? is your newspaper delivered on time every morning? Dimensions of Quality: Service (cont.) Accessibility and convenience how easy is it to obtain service? does service representative answer you calls quickly? Accuracy is service performed right every time? is your bank or credit card statement correct every month? Responsiveness how well does company react to unusual situations? how well is a telephone operator able to respond to a customer s questions? 4

5 The meaning of quality Traditional definition Quality mean fitness for use. Modern definition Quality is inversely proportion to. ( in the important characteristics of a product) Total Quality Management (TQM) Total made up of the whole Quality degree of excellence a product or service provides Management Act, art, or manner of handling, controlling, directing, etc. TQM is management philosophy, defined to be a continuous joint effort of management, staff members, workforce, and suppliers to ensure long term customer loyalty and customer satisfaction. It maintains that organizations must always strive to continuously improve these processes by incorporating the knowledge and experiences of workers 5

Total Quality Management (TQM) W. Edwards Deming developed the Total Quality Management approach as an industrial strategy to improve business performance.

6 Total Quality Management (TQM) W. Edwards Deming developed the Total Quality Management approach as an industrial strategy to improve business performance. In his 1982 book "Out of the Crisis," he identifies variation as a disease that results in waste and poor quality. TQM requires six basic concepts: 1. A committed and involved management to provide long-term organizational support. 2. An unwavering focus on the, both internally and externally. 3. Effective involvement and utilization of the. 4. improvement of the business and production process. 5. Treating as partners. 6. Establish for the processes. Deming s 14 points Primary responsibility for quality improvement is employees and management s. by Deming W. Edwards Deming Long term goals Avoid mass inspection 6

7 Deming s 14 points leadership is required not supervision cooperation not competition Deming s 14 points Encourage self improvement for everyone 7

Shewhart s PDCA Model Shewhart cycle or Deming cycle is

Shewhart Deming developed some of Shewhart's methodological

8 Shewhart s PDCA Model Shewhart cycle or Deming cycle is used to make changes that lead to improvement in a manner of continuous quality improvement. This is a never ending process. Walter A. Shewhart Deming developed some of Shewhart's methodological proposals around scientific inference and named his synthesis the Shewhart cycle. Scope of TQM activity 8

9 Statistical Method for Quality Improvement Statistical process control (SPC) is a method for measuring and controlling quality during a manufacturing process. Statistical Method for Quality Improvement Statistical process control (SPC) is a method for measuring and controlling quality during a manufacturing process. 9

Quality Costs the cost of improving quality vs the cost of poor quality Prevention costs - reducing the potential for defects Appraisal costs - evaluating

10 Quality Costs the cost of improving quality vs the cost of poor quality Prevention costs - reducing the potential for defects Appraisal costs - evaluating products, parts, and services Internal failure costs - producing defective parts or service before delivery External failure costs - defects discovered after delivery 10

Quality: Getting the Basics Right. Trevor Naidoo

Quality: Getting the Basics Right Lecture outline What is quality? Evolution of quality management Focus of quality management customers Role of employees in quality improvement Quality in service companies