Quality
Management
Techniques: AEM 6102
By
Dr. Prianka Binte Zaman
Associate Professor
Department of IPE, BUET
AEM 6102: Quality Management
Techniques (3 credits)-Syllabus
1. Statistical process control;
2. Process capability indices;
3. Design of experiment;
4. Taguchi method;
5. Total quality control;
6. Total quality management;
7. Quality function deployment;
8. World class manufacturing;
9. Reliability & quality;
10.Quality audit;
11.ISO 9000 series.
Google classroom code: 5htpbpd
What is Quality?
Quality refers to the characteristic of a product or service that
defines its ability to consistently meet or exceed customer
expectations.
Webster’s Dictionary: “The degree of excellence of a thing”.
Oxford dictionary: “the standard of something when it is
compared to other things”.
Philip B. Crosby: Quality is “conformance to
requirements”. This definition assumes that the
specifications and requirements have already been
developed. The next thing to look for is conformance
to these requirements.
W. Edwards Deming: “Good quality means a
predictable degree of uniformity and dependability
with a quality standard suited to the customer”.
What is Quality?
Joseph M. Juran: "Fitness for use". Fitness
is defined by the customer. Which typically
means its Performance, Conformance,
Durability, Safety and Reliability. This
definition stresses the importance of the
customer who will use the product.
American Society for Quality: “Quality
denotes an excellence in goods and services,
especially to the degree they conform to
requirements and satisfy customers”.
ISO 9000: "Degree to which a set of inherent
characteristics fulfills requirements” The
standard defines requirement as need or
expectation.
What is Quality?
Meaning of Quality:
Consumer’s Perspective
Quality of design: It is the quality which
the producer or supplier is intending to
offer to the customer.
Edeward defines quality in terms of
the capacity to satisfy needs.
Gilmore defines quality as the degree
to which a specific product satisfies
the wants of a specific consumer.
Fitness for use: how well product or
service does what it is supposed to.
Juran defines quality as fitness for
use.
A Mercedes and a Ford are equally “fit for
use,” but with different design
dimensions.
Meaning of Quality:
Producer’s Perspective
Quality of Conformance: Degree to which the product or
service design specifications are met
Crosby defines quality as the means to conform to
standards, specifications or requirements.
Parasuraman defines quality as the concerned with
meeting or exceeding customer expectations.
Meaning of Quality:
A Final Perspective
Consumer Quality Producer
Consumer’s and producer’s perspectives depend on
each other
Products can have high design quality but low
conformance quality, and vice versa
Both design quality and conformance quality should
provide products that meet customer objectives
This is often termed fitness for use
Entails identifying the dimensions of product (or
service) that the customer wants i.e., the voice of
the customer
Developing a quality control program
Dimensions/aspects of Quality:
Tangible Products
Performance
basic operating characteristics of a product; how well
a car is handled or its gas mileage
Features
“extra” items added to basic features, such as a
stereo CD or a leather interior in a car
Reliability
probability that a product will operate properly within
an expected time frame; that is, a TV will work
without repair for about seven years
Conformance
degree to which a product meets pre–established
standards
Dimensions/aspects of Quality:
Tangible Products (cont.)
Durability
how long product lasts before replacement
Serviceability
ease of getting repairs, speed of repairs, courtesy
and competence of repair person
Aesthetics
how a product looks, feels, sounds, smells, or tastes
Safety
assurance that customer will not suffer injury or
harm from a product; an especially important
consideration for automobiles
Dimensions/aspects of Quality:
Intangible Products/Service
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? “quickest, friendliest,
Courtesy most accurate
How are customers treated by service
employees?
available.”
Are catalogue phone operators nice
and are their voices pleasant?
Dimensions/aspects of Quality:
Intangible Products/Service(cont.)
Consistency
Is the same level of service provided to each customer each
time?
Is your newspaper delivered on time every morning?
Accessibility and convenience
How easy is it to obtain service?
Does a service representative answer you calls quickly?
Accuracy
Is the service performed right every time?
Is your bank or credit card statement correct every month?
Responsiveness
How well does the company react to unusual situations?
How well is a telephone operator able to respond to a
customer’s questions?
Implications of Quality
There are several things which have direct implications with
quality. Either they want it and use it, or they are responsible
for delivering it. In other words, these are the key elements
that have direct relation with quality. The basic elements those
have implications with quality are of four categories:
Customers/Consumers: They are the ultimate user or direct
beneficiaries of quality. So, any quality management drive
should focus on this element while preparing a quality plan.
Processes: This element is responsible for transforming the
input to quality output. Traditionally, people used to think that
the process is the only factor which needs to be controlled for
ensuring quality.
But modern quality management views that employees and
materials (thus suppliers too) should also be held responsible for
quality.
Implications of Quality
Employees: Now-a-days, role of employee in delivering
quality product is valued highly. They are considered as
internal customer, who need to kept satisfied in order to
deliver quality product. Thus they should be trained
regularly, with high degree of motivation and skill.
Materials: Role of suppliers in delivering quality goods is
now well recognized. A good manufacturing process does
not have much to contribute to quality if supplied
materials are not of good quality. That’s why the
Japanese producers now extend their quality activities
up to the supplier’ premises.
Quality Control
To achieve outstanding quality requires:
quality leadership from senior management,
a customer focus,
total involvement of the workforce, and
continuous improvement based upon rigorous analysis of
processes.
Four steps of quality control
Setting benchmarks: Determine the required quality target in
terms of a trade-off between cost and quality aspects. While
setting benchmark, or standards, manufacturability of
machineries and equipment and skill of manpower need to be
taken into account.
Appraising conformance: Regular monitoring and evaluation
are essential for measuring key characteristics of quality,
preferably in quantitative terms, which should be followed by
appraisal for ensuring conformance as per specifications.
Quality Control
Acting when necessary: If conformance appraisal shows
deviation from the bench marks, or stipulated output,
necessary correct measures should be taken in order to avoid
such occurrence. Necessary diagnosis must be performed to
identify and subsequently remove their causes throughout the
complete value chain function, such as, procurement, design,
production, maintenance, delivery, logistics, etc., which
influence customer satisfaction.
Planning for improvements: As control functions have
significant impact on quality, necessary plans must be
formulated for future better quality control.
This seems fairly similar to (Plan-Do-Check-Act) PDCA cycle of
TQM. Efficient and effective control is the key in management
success. If control fails, the organization fails to operate.
Benefits of Good Quality
Higher customer satisfaction
Reliable products/services
Better efficiency of operations
More productivity & profit
Better morale of work force
Less wastage costs
Less Inspection costs
Improved process
More market share
Spread of happiness & prosperity
Better quality of life for all.
Consequences of Poor Quality
Lower Productivity: productivity and quality are closely
related, thus, inseparable. Since, poor quality means
rework and rejection, it adversely affects productivity in
manufacturing process.
Loss of Production Time: Productivity in Japanese
industries is very high for many reason, one being the
philosophy-’Right the first time’, which means no
defectives at all, even no loss of time through trial and
error.
Loss of Material: In many cases, the defective products
can not be reworked for future use. This may mean
rejection, which not only means loss of material, but also
loss of other resoources and usefull time spent in
producing those products.
Consequences of Poor Quality
Loss of business: The most severe problem of bad
quality is loss of business. Failure of a product while in
use can severely damage the organization’s image,
which is detrimental for business. A satisfied customer
tells a few people about the good product, but a
dissatisfied customer will tell an average of 19 people. It
must be remembered that image or brand is created
over the years of reputation, while one or two defective
products may destroy the image in a moment.
Liability: Poor quality increases certain other costs.
These include liability costs in terms of warranty,
replacement, repair cost after purchase and any other
costs expended in transportation, inspection in the field,
and payment to customers or discounts used to offset
the inferior quality.
Expressing Dissatisfaction
Public action
Seeking redress directly from
Takes the firm
action
Taking legal action
A dissatisfied
A complaint to business, private,
customer or governmental agencies
Private action
Stop buying the product or
boycott the seller
Takes Warn friends about the product
no action and/or seller
Iceberg
The ‘Iceberg’ theory –
how much is immediately visible?
Cost of Quality
COQ offers managers a financial method to evaluate the level
of their quality and the costs associated with different levels
of quality.
Cost of quality-’for achieving it’ as well as for ‘loosing it’.
This total cost can be split into two fundamental areas:
1. Conformance cost: Cost of Achieving Good Quality
Prevention costs
Appraisal costs
2. Nonconformance cost: Cost of Poor Quality
Internal failure costs
External failure costs
Prevention Costs
Costs associated with all activities designed to prevent defects
in product or service.
These costs are used to build awareness of the quality
program and to keep the costs of appraisal and failure to a
minimum.
Prevention costs are all costs incurred in an effort to “make
it right the first time”.
This cost occurs for the following reasons:
Quality planning costs: costs of developing and
implementing quality management program
Training costs: costs of developing and putting on quality
training programs for employees and management
Information costs: costs of acquiring and maintaining data
related to quality, and development of reports on quality
performance
Appraisal Costs
The costs associated with measuring and evaluating the
product or service quality to ensure conformance.
This cost occurs for the following reasons:
Inspection and testing: costs of testing and inspecting
materials, parts, and product at various stages and at
the end of a process
Test equipment costs: costs of maintaining equipment
used in testing quality characteristics of products
Operator costs: costs of time spent by operators to gar
data for testing product quality, to make equipment
adjustments to maintain quality, and to stop work to
assess quality
Internal Failure Costs
Costs incurred prior to the shipment of the product or the
delivery of the service.
These costs are associated with defects that are found prior to
customer delivery.
This cost occurs for the following reasons:
Scrap costs: costs of poor-quality products that must be
discarded, including labor, material, and indirect costs
Rework costs: costs of fixing defective products to conform
to quality specifications
Process downtime costs: costs of shutting down
productive process to fix problem
Downgrading cost: the price differential between the
normal selling price and any selling price that might be
obtained for a product that does not meet the customer’s
requirements. Downgrading is common in the textile,
apparel goods, electronics, and carpet industries.
External Failure Costs
The costs of discovered defects occurring after product
shipment or service delivery.
This cost occurs for the following reasons:
Customer complaint costs: costs of investigating and
satisfactorily responding to a customer complaint
resulting from a poor-quality product
Product return costs: costs of handling and replacing
poor-quality products returned by customer
Warranty claims costs: costs of complying with product
warranties
Loss of good-will; loss of business reputation; loss of
future business; loss of market share.
Reducing the Cost of Quality
The aim of Quality management is to minimize the cost of
quality.
It makes no difference if this is done by reducing all components
or by increasing some and decreasing others enough to lower
the total cost.
To have a significant impact on the total cost; the cost of
failure must be reduced, and the usual strategy for achieving
this objective is to spend more on prevention.
“It is always cheaper to do a job right the first time than
to do it over”.
Juran Model-
The Original COQ model
Total
Failure Quality
Cost Per Good Unit of Product
Costs Costs
Minimum
cost
Cost of Appraisal
Plus Prevention
0 100%
(100% defective) Quality Level (100% good)
Definition of COQ model figure
In this case, the costs of prevention and appraisal are zero with a
100% failure rate.
The costs of prevention & appraisal rise to infinity as perfection (no
failures) is reached.
This hypothetical model shows that total quality cost is higher when
quality is low and falls as quality improves.
According to the model, a company greatly reduce failure costs by
adding relatively low-cost prevention and appraisal measures.
As prevention and appraisal expenditures continue to rise, the rate
of improvement begins to diminish until additional expenditures
produce little decrease in failure.
The model suggests that a relationship exists between conformance
and nonconformance quality costs, with a minimal total quality cost
at the optimal balance.
Implicit in this model is the trade off of conformance costs for
nonconformance costs to achieve the lowest total quality cost.
Quality Cost-Alternative View
Total
Failure Quality
Cost Per Good Unit of Product
Costs Costs
Minimum
cost
Cost of Appraisal
Plus Prevention
0 100%
(100% defective) Quality Level (100% good)
Evolution of Modern Concept
The complete evolution of Quality may be divided in to four domains:
Stage 3:
Stage 1: Stage 2: Stage 4:
Quality
Inspection- Statistical Total Quality
Stages Assurance
based Quality Management
(QA)
quality Control (SQC) (TQM)
Measurement Developing a Responsibility for all
Statistical
of capable process and continuous
process control
specifications for advance improvement,
Objective for analyzing
for assurance, Internal and
process
conformance documentation external customer
capability
and audit satisfaction
Top management
Quality Quality control leadership with
Responsibility control and and production involvement of all,
All departments
for quality production department including external
department stakeholders( e.g.
supplier)
Quality Control
Quality control popularly abbreviated as QC. It is a Software
Engineering process used to ensure quality in a product or a
service. It does not deal with the processes used to create a
product; rather it examines the quality of the "end products" and
the final outcome.
The main aim of Quality control is to check whether the products
meet the specifications and requirements of the customer. If an
issue or problem is identified, it needs to be fixed before delivery
to the customer.
QC also evaluates people on their quality level skill sets and
imparts training and certifications. This evaluation is required for
the service based organization and helps provide "perfect" service
to the customers.
Quality Assurance
Quality Assurance methodology has a defined cycle called PDCA cycle or
Deming cycle. The phases of this cycle are:
Plan-Do-Check-Act
These above steps are repeated to ensure that processes followed in the
organization are evaluated and improved on a periodic basis. Let's look
into the above QA Process steps in detail -
Plan - Organization should plan and establish the process related
objectives and determine the processes that are required to deliver a high-
Quality end product.
Do - Development and testing of Processes and also "do" changes in the
processes
Check - Monitoring of processes, modify the processes, and check whether
it meets the predetermined objectives
Act - A Quality Assurance tester should implement actions that are
necessary to achieve improvements in the processes
An organization must use Quality Assurance to ensure that the product is
designed and implemented with correct procedures. This helps reduce
problems and errors, in the final product.
Quality Guru’s
W. Edwards Deming - 14 point prescription for quality
Joseph M. Juran -Quality is fitness for use,
-Quality Trilogy
Quality Planning
Quality Improvement
Quality Control
Walter A. Shewhart – Control charts
Phillip Crosby - quality is free, zero defects
Kaoru Ishikawa - Quality circles,
-Cause-and-effect diagram
Shigeo Shingo – ZQC, TPM, Pokayoke
Dr. Edward Deming
Dr. Deming is the most widely
recognized quality guru.
He was a professor of statistics in the
New York University.
He was invited to Japan after the war II
He was regarded by the Japanese as the
chief architect of their industrial success
PDCA cycle
Continuous improvement (Kaizen)
14 points of management principle
Deming’s 14 Point Principle
1. Create a constant purpose toward improvement.
Plan for quality in the long term.
Resist reacting with short-term solutions
Don't just do the same things better, find better things to do.
Predict and prepare for future challenges, and always have the goal
of getting better
2. Adopt the new philosophy.
Embrace quality throughout the organization.
Put your customers' needs first, rather than react to competitive
pressure and design products and services to meet those needs
Be prepared for a major change in the way business is done
It's about leading not simply managing
Create your quality vision, and implement it
Deming’s 14 Point Principle(contd…)
3. Switch from defect detection to defect prevention
Inspections are costly and unreliable and they don't improve
quality, they merely find a lack of quality
Build quality into the process from start to finish
Don't just find what you did wrong, eliminate the "wrongs"
altogether
Use statistical control methods not physical inspections alone to
prove that the process is working.
4. Use a single supplier for any one item.
Quality relies on consistency the less variation you have in the
input, the less variation you'll have in the output
Look at suppliers as your partners in quality
Encourage them to spend time improving their own quality they
shouldn't compete for your business based on price alone
Use quality statistics to ensure that suppliers meet your quality
standards
Deming’s 14 Point Principle(contd…)
5. Improve constantly and forever.
Continuously improve your systems and processes.
Deming promoted the Plan-Do-Check-Act approach to process
analysis and improvement.
Emphasize training and education so everyone can do their jobs
better.
Use kaizen as a model to reduce waste and to improve productivity,
effectiveness, and safety.
6. Institute modern methods of training on the job.
Train for consistency to help reduce variation.
Build a foundation of common knowledge.
Allow workers to understand their roles in the "big picture."
Encourage staff to learn from one another, and provide a culture
and environment for effective teamwork.
Deming’s 14 Point Principle(contd…)
7. Implement leadership.
Expect your supervisors and managers to understand their workers
and the processes they use.
Be a coach instead of a policeman.
Figure out what each person actually needs to do his or her best.
Find ways to reach full potential, and don't just focus on meeting
targets and quotas.
8. Eliminate fear.
Allow people to perform at their best by ensuring that they're not
afraid to express ideas or concerns.
Let everyone know that the goal is to achieve high quality by doing
more things right and that you're not interested in blaming people
when mistakes happen.
Make workers feel valued, and encourage them to look for better
ways to do things.
Deming’s 14 Point Principle(contd…)
9. Break down barriers between departments.
Build the "internal customer" concept recognize that each
department or function serves other departments that use their
output.
Build a shared vision.
Focus on collaboration and consensus instead of compromise.
10. Get rid of unclear slogans/ Do not have unrealistic targets.
Do not place people under unnecessary pressure by asking them to
do things which are not achievable.
Let people know exactly what you want, don't make them guess.
"Excellence in service" is short and memorable, but what does it
mean? How is it achieved?
Outline your expectations, and then praise people face-to-face for
doing good work .
Deming’s 14 Point Principle(contd…)
11. Eliminate quotas and numerical targets
Look at how the process is carried out, not just numerical targets.
Deming said that production targets encourage high output and low
quality.
Provide support and resources so that production levels and quality
are high and achievable.
Measure the process rather than the people behind the process.
12. Remove barriers to pride of workmanship.
Allow everyone to take pride in their work without being rated or
compared.
Treat workers the same, and don't make them compete with other
workers for monetary or other rewards.
Over time, the quality system will naturally raise the level of
everyone's work to an equally high level.
Deming’s 14 Point Principle(contd…)
13. Implement education and self-improvement.
Improve the current skills of workers.
Encourage people to learn new skills to prepare for future changes
and challenges.
Build skills to make your workforce more adaptable to change, and
better able to find and achieve improvements.
14. Make "transformation" everyone's job.
Improve your overall organization by having each person take a
step towards quality.
Analyze each small step, and understand how it fits into the larger
picture.
Use effective change management principles to introduce the new
philosophy and ideas in Deming's 14 points.
Philip Crosby
Born in West Virginia in 1926.
After World War II and Korean War, he has worked for Crosley, Martin
Merietta and ITT as Corporate Vice president for 14 yrs.
Associates, Inc. 1979- his consulting firm- served hundreds of company.
Career IV, Associates II, Inc., Quality College-1991
His book- “Quality without Tears”, “Quality is Free”.
He popularized the idea- “Cost of Poor Quality”
-Figuring out how much it really costs to do things badly.
“Zero defect”- from his experience on an assembly line.
Died August 2001-but his legacy will live on in better quality in
thousands of organization.
Philip Crosby: Four absolutes
of quality management
1. Quality is defined as conformance to requirements, not as
goodness or elegance
The objective of quality improvement program is to get everyone to
do it right the first time.
To achieve this an organization must get its employees to
understand the requirements clearly.
The management has to perform three tasks to achieve this:
Organization should establish the requirements that
employees are to meet.
Supply the resources needed by the employees to meet
these requirements.
Encourage and help the employees to meet these
requirements.
Philip Crosby: Four absolutes
of quality management (contd..)
2. The system for causing quality is prevention, not appraisal
Inspection, testing and checking after the job is over is an
expensive and unreliable way to get quality.
What is required in prevention of defects.
The concept of prevention is based on understanding the process
that needs preventive actions.
The preventive activities are to look at the processes and identify
opportunities for errors
The errors can be controlled by eliminating the cause of the
problem.
Philip Crosby: Four absolutes
of quality management (contd..)
3. The performance standard must be Zero defects, not that’s
close enough
Organizations with millions of individual actions cannot afford to
have a percent or two to go astray.
The concept has to be “zero defect” that is absolute conformance
to the requirement.
There cannot be a grade or percentage of performance
The employees should be aware of what they are supposed to do
and do exactly that.
The employees have to do it right the first time to keep the
organization hassle free.
Philip Crosby: Four absolutes
of quality management (contd..)
4. The measurement of quality is the Price of Nonconformance
The cost of conformance consists of costs like all prevention
actions, training and education on quality.
Normally it should not be more than 2% of sales.
The price of nonconformance consists of faulty handling of a
customer’s enquiry to loss of orders, rejections, delayed delivery,
rework, salvaging etc.
It can be as high as 20% and it can eat up the organization’s
profit.
The price of nonconformance is everything that the organization
would not have done if it was done right at the first time.
Joseph Juran
“Quality is fitness for use”
The Trilogy consists of three sequential and logical groups of
activities:
1. Quality Planning,
2. Quality Control, and
3. Quality Improvement.
All three processes are universal
Applied to a particular process
Performed by top management or by middle management
Quality Trilogy:
1. Quality Planning
The role of quality planning is to design a process that will be able to
meet established goals under operating conditions.
The subject of planning can be anything -- an engineering process for
designing new products, a production process for making goods, or a
service process for responding to customer requests.
Quality Planning involves:
To identify who are the customers.
Discovering needs of those customers.
Translate those needs into engineering language
Find out opportunities for reduction of waste and develop a
product that can respond to those needs
Optimize the product features so as to meet the needs of both the
organization and the customers.
Quality Trilogy:
2. Quality Control
The role of quality control is to operate and when necessary correct
the process so that it performs with optimal effectiveness.
The process of managing operations to meet quality goals.
The process of Quality Control involves:
Choosing control subjects
Choosing units of measurement
Establishing a measurement procedure
Measuring
Interpreting differences between measurement and goal.
Taking action to correct significant differences
Quality Trilogy:
3. Quality Improvement
The role of quality improvement is to devise ways to take the
process to unprecedented levels of performance.
Assuming the process is under control, any waste that occurs must be
inherent in the design of the process.
The object of quality improvement is to reduce chronic waste to a
much lower level.
The steps in Quality Improvement:
Prove the need for improvement
Identify specific projects for improvement
Organize to guide the projects
Organize for diagnosis -- discovery of causes
Diagnose the causes
Provide remedies
Prove that the remedies are effective under operating conditions
Provide for control to maintain the gains.
Walter A. Shewhart
Born: March 18, 1891, New Canton, Illinois
Died: March 11, 1967 (aged 75)
Fields: physics, engineering, statistics
Institutions: Western Electric
known as the father of statistical quality control
and also related to the Shewhart cycle.
Shewhart was concerned that statistical theory serve the needs of
industry.
He framed the problems in terms of “assignable cause” and
“chance cause” variation and introduced the “Control Chart” as a
tool for distinguishing between the two.
His monumental work, Economic Control of Quality of
Manufactured Product, published in 1931, is regarded as a complete
and thorough exposition of the basic principles of quality control.
Kaoru Ishikawa
Born: July 13, 1915,Tokyo, Japan
Died: April 16, 1989 (aged 73)
Fields: Quality, Chemical engineering
Institutions: University of Tokyo, Musashi Institute of
Technology
Known for: Ishikawa diagram, quality circle
Books: “Introduction to Quality Control”, “What is Total
Quality Control?”, “How to Operate QC Circle Activities”
“Quality does not only mean
the quality of the product,
but also of after sales service,
quality of management,
the company itself
and human life”
Ishikawa’s Philosophy
Quality Control Circles (QCC)
A quality control circle consists of a small group of employees who do
similar work and arrange to meet regularly to identify and analyze
work-related problems, to brainstorm and to recommend and
implement solutions.
Fish-bone or Cause Effect Diagram
With the use of this diagram the user can see all the possible causes of
a result.
Quality throughout product’s life cycle, not just during production.
Shigeo Shingo
Shigeo Shingo (1909 - 1990), born in Saga City, Japan
Poka Yoke (meaning mistake proofing)
This involves identifying potential error sources in the process and
monitoring these sources for errors.
A variant to this approach is FMEA
Zero Quality Control
Total Productive Maintenance
Single Minute Exchange of Dies
Quality Awards
The Malcom Baldridge Award - The Malcolm
Baldrige National Quality Award is the centerpiece
of the Baldrige National Quality Program. This
award, which since 1988 has been presented
annually by the President to recognize performance
excellence, focuses on an organization‘s overall
performance management system. It does not
certify product or service quality.
The Deming Prize - The Union of Japanese
Scientists and Engineers (JUSE) created a prize to
commemorate Dr. Deming‘s contribution and friendship
and to promote the continued development of quality
control in Japan. The prize was established in 1950 and
annual awards are still given each year.
NASA
Quality Awards
Institute of Industrial Engineers
Singapore
Quality European
Award Quality
Award