Quality Management:

Perspectives and Tools

Saurabh Chandra
Outline of the discussion

QUALITY DIMENSIONS AND PERSPECTIVES

COST OF QUALITY

QUALITY GURUS AND CONTRIBUTIONS

TQM and QMS

CASES FROM QUALITY MANAGEMENT

QUALITY AND PRODUCTIVITY

Some initial developments
• 1760: Industrial revolution
• How did industrial revolution brought about changes in quality?
• 1776: Division of Labour – Adam Smith
• 1900s: Scientific management - Frederick Winslow Taylor
• Craft production
• Assembly lines – Henry Ford
• Standardization
• Modularization
Quality
The ability of a product or service to consistently meet or exceed
customer expectations.

Consumer’s and Producer’s perspective

Dimensions of quality
Manufacturing Services
• Performance • Time and timeliness
• Features • Completeness
• Reliability
• Courtesy
• Conformance
• Consistency
• Durability
• Serviceability • Accesibility and
• Aesthetics
convinience
• Reputation • Accuracy
• Safety • Responsiveness
• Other perceptions
2-5
What Is Quality:
Customer’s Perspective
• Fitness for use
• how well product or service does what it is supposed to
• Quality of design
• designing quality characteristics into a product or service
• “Fit for use,” but with different design dimensions.

Copyright 2011 John Wiley & Sons, Inc. 2-6

 What Is Quality:
Producer’s
Perspective
• Quality of conformance
• making sure product or service is produced according to
design
• if new tires do not conform to specifications, they wobble
• if a hotel room is not clean when a guest checks in, hotel is not
functioning according to specifications of its design
Final perspective of Quality

2-8
Kissing Clunkers Goodbye
http://www.bloomberg.com/bw/stories/2004-05-16/hyundai-kissing-clunkers-goodbye
 Quality is ‘counter-entropic’.
- Result of deliberate hard work
- Involvement of Top Management
- Involves detailed planning
- Consideration of contributing elements
- Never ending process
Wrong perceptions:
• An expensive initiative
• Better quality costs more?
• An expensive end product
• Better quality means an expensive end product
• Time consuming
• We do not have time for this
Outline of the discussion

QUALITY DIMENSIONS AND PERSPECTIVES

COST OF QUALITY

QUALITY GURUS AND CONTRIBUTIONS

TQM and QMS

CASES FROM QUALITY MANAGEMENT

QUALITY AND PRODUCTIVITY

Cost of quality:
• Failure
• Internal : scrap and rework
• External: repair & warranty , liability, human suffering and
life losses, lawsuits, etc.
• Prevention
• Quality Planning: quality management system for the
organization
• Quality audits: system works as intended
• Process planning: production steps
• Process control: process performs as expected
• Training: reduced defects
Cost of quality contd.
• Appraisal
• Inspection of incoming supplies
• In-process product inspection
• Performance testing whenever possible
Benefits of quality:
• Customer satisfaction
• Reduced costs
• Higher profits
• Increased sales
• Increased competitiveness
Outline of the discussion

QUALITY DIMENSIONS AND PERSPECTIVES

COST OF QUALITY

QUALITY GURUS AND CONTRIBUTIONS

TQM and QMS

CASES FROM QUALITY MANAGEMENT

QUALITY AND PRODUCTIVITY

Deming Wheel: PDCA Cycle

2-17
 Quality Circles Process (Ishikawa)

Organization
8-10 members
Same area
Supervisor/moderator

Training
Presentation Group processes
Implementation Data collection
Monitoring Problem analysis

Problem Identification
Solution
List alternatives
Problem results
Consensus
Brainstorming

Problem Analysis
Cause and effect
Data collection and analysis

Copyright 2011 John Wiley & Sons, Inc.

Quality Guru - Shigeo
Shigeo Shingo:
• Complete elimination of errors
• Device alternative methods
• “Poka yoke” or mistake proofing
• McDy French fries filling scoops
• Checklists
• Pressure trips

2-19
Quality Guru - Taguchi
Genichi Taguchi
• Achieving quality by reducing variations in processes
• “ Quality Loss Function”
Approaches to conformance:
Which one will Taguchi prefer?
Production process 1 Production process 2
Specification Specification Specification Specification
limit limit limit Target limit
Target

1.35 1.40 1.45 1.35 1.40 1.45

Outline of the discussion

QUALITY DIMENSIONS AND PERSPECTIVES

COST OF QUALITY

QUALITY GURUS AND CONTRIBUTIONS

TQM and QMS

CASES FROM QUALITY MANAGEMENT

QUALITY AND PRODUCTIVITY

 TQM and QMS
• Total Quality Management (TQM)
• customer-oriented, leadership, strategic
planning, employee responsibility,
continuous improvement, cooperation,
statistical methods, and training and
education
Customer
• Quality Management System (QMS) satisfaction
• system to achieve customer satisfaction
that complements company other
systems
• Embodies TQM
• Evolved from ISO certification process.
Total Quality Management
• Customer satisfaction  Employee
• Conformance to specifications involvement
• Value  Cultural
• Fitness for use change
• Support
 Teams
• Psychological impressions

• Continuous improvement
• Kaizen
• Problem solving process
 Total Quality Management (TQM)

Quality Element Previous State TQM

Product Oriented Customer Oriented
Definition Product Oriented Customer oriented
Priorities Second to service & cost First among equals of
service & cost
Decisions Short term Long term
Emphasis Detection Prevention
Errors Operations System
Responsibility Quality Control Everyone
Problem solving Managers Teams
Procurement Price Partnerships, Life
cycle costing
Manager's Role Plan, assign, control & Delegate, coach,
enforce facilitate and mentor
Outline of the discussion

QUALITY DIMENSIONS AND PERSPECTIVES

COST OF QUALITY

QUALITY GURUS AND CONTRIBUTIONS

TQM and QMS

CASES FROM QUALITY MANAGEMENT

QUALITY AND PRODUCTIVITY

Whatever happened to quality?
http://www.industryweek.com
/companies-amp-executives/whatever-happened-quality
- Quality should encompass the entire enterprise
- 50 years after the advent of TQM, manufacturers dogged with high
profile quality defects
- Costs in scrapped product, lawsuits, and lost brand equity from
defects and recalls are huge
- Toyota, the progenitor of quality based production, faced a drop in
ratings.
- Fatal error in X-box
- Why?
Whatever happened to quality?

Quality goes upstream

- Companies adopting the “shared responsibility” aspect of Deming
- Beyond shop-floor and into front office, service department,
anywhere where value is added
- Change in attitudes:
- 35 years ago- policeman installed at the end of line
- Let’s find better ways to check
- Let’s find a way to predict
- How to improve quality of HR and support services
Ron Atkinson, chairman of American Society for Quality (ASQ)
- Quality has become a systems approach
Whatever happened to quality?

Larry Coburn, VP Operations, Crown audio

- Need for strong management and employee engagement

- Market: complex products need to be produced cheaply
- Things were breaking down under pressure
- First pass yields gotten so bad- rework inventory piled up to fill the
balances sheet
- Rework designated areas were large
- “hidden factories”- millions of dollars of untapped production/sales
- $4 million in terms of costs of poor quality.
Whatever happened to quality?

Larry Coburn, VP Operations, Crown audio

Way out of the mess:

- Production stoppage to avoid any further inventory pileup
- Analysis and testing of defective inventory
- Components grouped as per common problems
- Groupings used to analyze potential process improvement

Results:
- Saleable inventory
- Good handle on problem areas
- Months/years of rework converted to hours or rework
- Employee engagement for sustainability; real time data in hands
Outline of the discussion

QUALITY DIMENSIONS AND PERSPECTIVES

COST OF QUALITY

QUALITY GURUS AND CONTRIBUTIONS

TQM and QMS

CASES FROM QUALITY MANAGEMENT

QUALITY AND PRODUCTIVITY

Introduction:
• Dimensions of quality:
• Performance: meeting customer expectations
• Conformance: whether the process is carried out as intended
• Our focus on quality in terms of conformance
• What is the root cause of non-conformance?
 Assembly line defects

Assembly line for a lap-top

9 Steps

Each of them has 1% probability of a defect.

What’s the overall yield of the process?
Transplant tragedy in a hospital
• A 17 years old girl died following an organ transplant

• Mismatch in blood type between the donor and Jessica

• Experienced surgeon, high reputation health system

• About a dozen personnel did not notice the mismatch

• The surgeon did not check and assumed the organization offering the organ had checked

• It was the middle of the night/enormous time pressure/aggressive time line

• A system of redundant checks was in place

• A single mistake would have been caught

• But if a number of problems coincided, the outcome could be tragic

Swiss Cheese Model

Example:

3 redundant steps
Barriers
Each of them has a 1% probability of failure

ÞWhat is the probability of a defect?

The nature of defects:

• Assembly line example: ONE thing goes wrong and the unit is
defective

• Swiss cheese situations: ALL things have to go wrong to lead to a fatal

outcome

• Compute overall defect probability / process yield

• When improving the process, don’t just go after the bad outcomes,
but also after the internal process variation (near misses)
Impact of defects on flow:
• A defect can take one of the following two forms:
• Scrap: removing from the flow
• Rework: repeating some of the operations that have
happened before the defect
• Rework has the potential to make a resource a BN
• Defects also increase the variability of the process
• 10% defect rate does not mean exactly 1 in 10th unit
defective
Impact of defects on Flow
4 min/unit
50% defect
5 min/unit Scrap 6 min/unit Which one is the bottleneck?
D

Flow rate 2D 2D D

Utilization: 2D*5/60 2D*4/60 D*6/60

= = =
D/6 D/7.5 D/10

Bottleneck
 4 min/unit
Impact of 5 min/unit
30% defect
Rework 2 min/unit
Defects on
Flow
Capacity 1/5 1/4 1/2
(no defect) units/min units/min Units/min
= = =
12 per hr. 15 per hr. 30 per hr.

Defects included: Rework can convert a non

Processing 5 min 0.7*4 + 0.3*(4+4) = 2 min bottleneck to a bottleneck
Time 5.2 min

Capacity 1/5 1/5.2 1/2

units/min units/min Units/min

Demand D 1.3D D

Implied D/12 D/8.88 D/30

utilization
 Impact of defects on variability:
Starving at #2
Blocking at #1 #1 #2
Processing time of 5 min/unit at 5 min 5 min
each resource (perfect balance)
Probability Outcome Outcome Flow (per
With a probability of 50%, there is (G/B) (G/B) hour)
a defect at either resource and it
takes 5 extra min/unit at the 1/4 G G 12

resource to rework
1/4 B (10 min) G 6
=> What is the expected flow
rate? 1/4 G B (10 min) 6

How do you handle blocking

1/4 B B 6
and starving?
Effective flow rate = 1/4*12 + 1/4*6 + 1/4*6 + 1/4*6 = 7.5 units/hr.
The impact of inventory on quality
Buffer argument:
“Increase inventory”

Inventory in process
Toyota argument:
“Decrease inventory”

Inventory takes pressure off the resources (they feel buffered): demonstrated behavioral effects

Expose problems instead of hiding them

Next…
• Quality tools
• Statistical process control
• Process capability
• Six sigma