405 MGMT Six Sigma Quality Management
Description of Quality and Quality Experts
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Define Quality
Quality is like art. Everyone is for it and everyone recognizes it when they see it, but everyone defines it differently - Richard J. Schonberger
Juran Crosby Deming Feigenbaum
Quality is fitness for use. Quality is conformance to requirements (clearly stated). Quality should be aimed at the needs of the consumer, present and future. Quality is the total composite product and service characteristics of marketing, engineering, production, and maintenance through which the product and service in use will meet the expectations of the customer. Quality is the loss (from function variation and harmful effects) a product causes to society after being shipped, other than any losses caused by its intrinsic functions. Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.
Taguchi
ISO 9000
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EIGHT DIMENSIONS OF QUALITY Performance: Will the product do the intended job? Reliability: How often does the product fail? Durability: How long does the product last? Serviceability: How easy is it to repair the product? Aesthetics: What does the product look like? Features: What does the product do? Perceived Quality: What is the reputation of the company or its product? Conformance: Is the product made exactly as the design specifications?
1. 2. 3. 4. 5. 6. 7.
8.
Quality Specifications Quality of design Quality of conformance QUALITY: The ability of a product or service to consistently meet or exceed customers' expectations. In today's marketplace, production and delivery of high-quality goods and services is a key element of any organization's success. Note: Quality is inversely proportional to variability in production processes and products.
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Selected Historic Milestones in the Quality Movement 1911
Frederick W. Taylor publishes The Principles of Scientific Management, giving birth to such techniques as time and motion studies.
1931 Walter A. Shewhart of Bell Laboratories introduces statistical quality control methods in his book Economic Control of Quality of Manufactured Products.
1946
1950
The American Society for Quality Control (ASQC) is formed. W. Edwards Deming addresses Japanese scientists, engineers, and corporate executives on the subject of quality.
1951 Deming Prize, the first major award in quality, is established in Japan. 1957 Joseph M. Juran publishes the Quality Control Handbook. 1970 Philip Crosby introduces the concept of zero defects. 1979
1980
Philip Crosby publishes Quality is Free. Television documentary If Japan Can . . . Why Can't We? airs, giving W. Edwards Deming renewed recognition in the U.S.
1981 Ford Motor Company invites W. Edwards Deming to speak to its top executives, which begins a rocky but productive relationship between the automaker and the quality expert. 1982 W. Edwards Deming publishes Quality, Productivity, and Competitive Position.
1984
Philip Crosby publishes Quality Without Tears: The Art of HassleFree Management. U.S. Congress creates the Malcolm Baldrige National Quality Award.
1987
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1987 International Organization for Standardization (headquartered in Geneva, Switzerland) publishes ISO 9000 of quality standards. 1989 Motorola's six-sigma initiative begins.
1993 Michael Hammer and James Champy publish Regineering the Corporation. 1993 The total-quality approach is widely taught in U.S. colleges and universities. 1998 The American Society for Quality Control (ASQC) becomes the American Society for Quality (ASQ).
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QUALITY LEADERS
Walter A. Shewhart (emphasizes on statistical methods)
The pioneer and visionary of modern quality control
Economic Control of Quality of Manufactured Product, a landmark book in modern quality control (published in 1931)
The Shewhart control charts are fundamental tools of quality control W. Edwards Deming (emphasizes on statistical methods)
The most well known quality expert in the world.
Japanese highest quality award, the Deming prize, was established in 1951.
Deming chain reaction
Improve quality
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Costs decrease
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Productivity improves
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Capture the market with better quality & lower price
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Stay in business
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Provide jobs and more jobs
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Deming: Out of the Crisis (1986)
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Deming's 14 points 1. Create and publish to all employees a statement of the aims and purposes of the company or the organization. The management must demonstrate constantly their commitment to this statement. 2. Learn the new philosophy, top management and everybody. 3. Understand the purpose of inspection, for improvement of processes and reduction of cost. 4. End the practice of awarding business on the basis of price tag alone. 5. Improve constantly and forever the system of production and service. 6. Institute training. 7. Teach and institute leadership. 8. Drive out fear. Create trust. Create a climate for innovation. 9. Optimize toward the aims and purposes of the company the efforts of teams, groups, and staff areas. 10.Eliminate exhortations for the workforce. 11a. Eliminate numerical quotas for production. Instead learn and institute methods for improvement. 11b. Eliminate management by objective. Instead, learn the capabilities of processes, and how to improve them. 12. 13.
14.
Remove barriers that rob people of pride of workmanship. Encourage education and self-improvement for everyone. Take action to accomplish the transformation.
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Joseph M. Juran
(emphasizes on managerial role)
Also played a major role in the Japanese quality success story.
Juran trilogy: 1. quality planning (the process of preparing to meet quality goals), 2. quality control (the process of meeting quality goals during operations), and 3. quality improvement (the process of breaking through to unprecedented levels of performance).
Juran's quality planning steps (Juran on Planning for Quality, (1988))
Existing product and process Identify customers List of customers Discover customers' Customers' needs needs (in their language) Translate Customers' needs (in our language) Establish units of measure Units of measure Establish measurement Customers' needs (in units of measure)
Customers' needs (in units of measure) Develop product Product features Optimize product design Product goals Develop process Process features Optimize: prove Process capability Process ready to transfer Transfer to operations Process ready to produce
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Phillip B. Crosby
The author of Quality Is Free (published in 1979). His quality philosophy is characterized by four absolutes: 1. Quality is defined as conformance to requirements, not goodness or elegance. 2. The system for causing quality is prevention, not appraisal. 3. The performance standard must be Zero defects, not "that's close enough." 4. The measurement of quality is the price of nonconformance, not indexes.
14-step quality program 1. Management commitment. 2. Quality improvement team. 3. Quality measurement. 4. Cost-of-quality evaluation. 5. Quality awareness. 6. Corrective action. 7. Ad hoc committee for the zero defects program. 8. Supervisor training. 9. Zero defects day. 10. Goal-setting. 11. Error-cause removal. 12. Recognition. 13. Quality councils. 14. Do it over again .....
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Armand V. Feigenbaum
(emphasizes on organizational structure)
The author of Total Quality Control (published in 1951).
He defined "total quality control" is an effective system for integrating the quality-development, quality-maintenance, and quality-improvement efforts of various groups in an organization so as to enable marketing, engineering, production, and service at the most economical levels which allow for full customer satisfaction.
A systems approach to quality: A quality system is the agreed on, companywide and plant-wide operating work structure, documented in effective, integrated, technical and managerial procedures, for guiding the coordinated actions of the work force, the machines, and the information of the company and plant in the best and most practical ways to assure customer quality satisfaction and economical costs of quality.
Total quality control should be a horizontal concept stretching across the functional divisions of an organization:
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Kaoru Ishikawa
He developed the concept of true and of substitute quality characteristics. The "true" quality characteristics are the customer's view of product performance, expressed in the customer's vocabulary. "Substitute" quality characteristics are the producer's view of product performance expressed in the producer's technical vocabulary. The degree of match between true and substitute quality characteristics ultimately determines customer satisfaction.
He proposes three steps, which are the basis of quality-planning and qualityfunction-deployment (QFD) techniques. 1. Understand true quality characteristics. 2. Determine methods of measuring and testing true quality characteristics. 3. Discover substitute quality characteristics, and have a correct understanding of the relationship between true quality characteristics and substitute quality characteristics. He advocates 7 fundamental tools of quality control (claiming 95% of all quality problems within a company can be solved with these tools) 1. Cause-effect (Ishikawa) diagram 2. Stratification 3. Check sheet 4. Histogram 5. Scatter diagram 6. Pareto chart 7. Graphs and statistical control charts
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Genichi Taguchi He identifies three distinct types of noise:
1. 2. 3.
External noise: Variables in the environment or conditions of use that disturb product functions (e.g., temperature, humidity, and dust). Deterioration noise or internal noise: Changes that occur as a result of wear or storage. Unit-to-unit noise: Differences between individual products that are manufactured to the same specifications.
He focuses on design for quality by defining three design levels: 1. System design (primary): Functional design focused on pertinent technology or architectures. 2. Parameter design (secondary): A means of both reducing cost and improving performance without removing causes of variation. 3. Tolerance design (tertiary): A means of reducing variation by controlling causes but at an increased cost. The Taguchi approach to both parameter design and tolerance design is based on cost-performance optimization and experimental design methods.
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Link between Quality and Productivity Improving quality => Increasing productivity + Decreasing cost (!!!)
Example: Suppose a component of a machine is manufactured by a machining process at a rate of 100 parts per day. Of these, about 70% of the outputs conform to specifications. About 60% of the non-conforming outputs can be reworked into acceptable products, and the rest are scrapped. The direct manufacturing cost per part is $25. Reworks incur an additional cost of $6 per part. a. How many good parts are produced per day? b. What is the manufacturing cost per good part produced? Cost/good part =
A statistical process control procedure is implemented to reduce process variability. The non-conformance rate of production outputs decreases from 30% to 5%. Of the 5% non-conforming outputs, 60% can be reworked and the rest are scrapped.
c. How many good parts are produced per day now? d. What is the manufacturing cost per good part produced now?
Cost/good part =
Note: Cost of achieving quality improvements and increased productivity is often negligible.
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QUALITY COSTS Prevention Costs (before production!) Quality planning and engineering New products review Product/process design Process control Training Appraisal Costs (during/after production!) Inspection and test of incoming material Product inspection and test Maintaining test equipment Internal Failure Costs (before delivery!) Scrap Rework Retest Failure analysis Downtime Downgrading/off-specing External Failure Costs (after delivery!) Complaint adjustment Returned product/material Warranty charges Liability charges