Lecture The management and control of quality - Chapter 1: Introduction to quality

In this chapter we shall be concerned with the definition of the concept of quality. Such definitions are important, for it may mean different things to different people in various circumstances. The industrial notions of quality, although dear and weIl stated, need not be the true measures of quality. Although they are important and serve many purposes, they are only part of a larger picture.

Chapter 1 Introduction to  Quality   Modern Importance of Quality    “The first job we have is to turn out  quality merchandise that consumers will  buy and keep on buying.  If we produce it  efficiently and economically, we will earn  a profit, in which you will share.”   ­ William Cooper Procter October 1887 Key Idea Building—and maintaining—quality into  an organization’s goods and services,  and more importantly, into the  infrastructure of the organization itself, is  not an easy task The Importance of Quality     Japanese success Impact of quality on productivity and  profit Costs of quality  Quality as a competitive advantage Quality and Productivity I. Market Gains Improved: •Performance •Reliability •Features •etc Improved  reputation  for quality Increased  Market share Higher Prices Experience­ based scale  economies Increased  Profits Quality and Productivity II. Cost Savings Increased productivity Improved  reliability or  conformance Lower  manufacturing  costs Lower rework  and scrap costs Lower warranty  and product  liability costs Increased  Profits Lower service  costs Relative Quality Boosts rates of  return % 50 40 ROS ROI 30 20 10 I nferior 20 40 60 80 Superior Relative quality (percentile) The Costs of Quality Prevention Costs Appraisal Costs Internal Failure Costs External Failure Costs Costs of quality assurance Prevention Costs           QC administration and systems planning Quality training Quality planning (QC engineering work) Incoming, in­ process, final inspection Special processes planning Quality data analysis Procurement planning Vendor surveys Reliability studies Quality measurement and control equipment Qualification of material Source: Adapted form J. W. Gavett, Production and Operations Management (New York: Harcourt Brace Jovanovich Costs of quality assurance Appraisal Costs Testing  Inspection  Quality audits  Incoming test and inspection and laboratory  acceptance  Checking labor  Laboratory or other measurement service  Setup for test and inspection  Test and inspection material  Outside endorsement  Maintenance and calibration  Product engineering review and shipping release  Field testing Source: Adapted form J. W. Gavett, Production and Operations Management (New York: Harcourt Brace Jovanovich  Quality Perspectives transcendent & value­based Customer products and services user­based needs Marketing product­based Design manufacturing­        based Manufacturing Distribution Information flow Product flow 22 TOTAL QUALITY INTERFACES CONSUMER NEEDS/REQUIREMENTS QUALITY QUALITY OF PERFORMANCE QUALITY OF DESIGN QUALITY OF CONFORMANCE WORK PROCESS/SYSTEM Quality as a Management  Framework    GE study Quality as a “management discipline”  and not just a “technical discipline” Total quality control, companywide  quality control, total quality  management, TQ Principles of Total Quality    Customer and stakeholder focus Participation and teamwork Process focus supported by continuous  improvement and learning …all supported by an integrated organizational  infrastructure, a set of management practices, and a set of tools and techniques 25 Customer and Stakeholder  Focus     Customer is principal judge of quality Organizations must first understand  customers’ needs and expectations in  order to meet and exceed them Organizations must build relationships  with customers Customers include employees and  society at large 26 Key Idea To meet or exceed customer expectations,  organizations must fully understand all  product and service attributes that  contribute to customer value and lead to  satisfaction and loyalty Participation and Teamwork     Employees know their jobs best and  therefore, how to improve them Management must develop the systems and  procedures that foster participation and  teamwork Empowerment better serves customers, and  creates trust and motivation Teamwork and partnerships must exist both  horizontally and vertically 28 Key Idea In any organization, the person who  best understands his or her job and  how to improve both the product and  the process is the one performing it Process Focus and Continuous  Improvement  A process is a sequence of activities  that is intended to achieve some result 30 Continuous Improvement      Enhancing value through new products  and services Reducing errors, defects, waste, and  costs Increasing productivity and effectiveness Improving responsiveness and cycle time  performance Key Idea Major improvements in response time may  require significant simplification of work  processes and often drive simultaneous  improvements in quality and productivity Deming’s View of a Production System Suppliers of materials and equipment Design and Redesign Receipt and test of materials A B C D Consumer research Consumers Production, assembly inspection Distribution Tests of processes, machines, methods INPUTS                PROCESSES             OUTPUTS Feedback 33 Learning   The foundation for improvement …  Understanding why changes are successful  through feedback between practices and  results, which leads to new goals and  approaches Learning cycle: – – – – Planning Execution of plans Assessment of progress Revision of plans based on assessment findings Infrastructure, Practices, and  Tools Infrastructure Leadership Strategic Planning Practices Tools HRM Performance appraisal Process mgt Information and knowledge management Training Trend chart 35 TQ Infrastructure      Customer relationship management Leadership and strategic planning Human resources management Process management Information and knowledge management 36 ... GE study Quality? ?as a ? ?management? ?discipline”  and? ?not just a “technical discipline” Total? ?quality? ?control,  companywide  quality? ?control,  total? ?quality? ? management,  TQ Principles? ?of? ?Total? ?Quality. .. not an easy task The? ?Importance? ?of? ?Quality     Japanese success Impact? ?of? ?quality? ?on productivity? ?and? ? profit Costs? ?of? ?quality? ? Quality? ?as a competitive advantage Quality? ?and? ?Productivity... infrastructure, a set? ?of? ?management? ?practices, and? ?a set? ?of? ?tools? ?and? ?techniques 25 Customer? ?and? ?Stakeholder  Focus     Customer is principal judge? ?of? ?quality Organizations must first understand  customers’ needs? ?and? ?expectations in