Ch. 9 Management of Quality

8 quality management principles from the ISO 9000 version?

1. A customer focus 2. Leadership 3, involvement of people 4. A process approach 5. A system approach to management 6. Continual improvement 7. Use of a factual approach to decision making 8. Mutually beneficial supplier relationships

Service quality is often judged in 9 dimensions. What are they with small descriptions?

1. Convenience- availability and accessibility of the service 2. Reliability- ability to perform a service dependably, consistently, and accurately 3. Responsiveness- willingness of service providers to help customers in unusual situations and to deal with problems 4. Time- speed with which service is delivered 5. Assurance- knowledge exhibited by personnel who come into contact with a customer and their ability to convey trust and confidence 6. Courtesy- the way customers are treated by employees who come into contact with them 7. Tangibles- the physical appearance of facilities, equipment, personnel, and communication materials 8. Consistency- ability to provide the same level of good quality repeatedly 9. expectations - meet or exceed customer expectations

What are Deming's 14 points?

1. Create constancy of purpose for improving products/services 2. Adopt the new philosophy 3. Cease dependence on inspection to achieve quality 4. End the proactive of awarding business on price alone (minimize total cost by working with a single supplier) 5. Improve constantly and forever every process for planning, production, and service 6. Institute training on the job 7. Adopt and institute leadership 8. Drive out fear 9. Break down barriers between staff areas 10. Eliminate slogans, exhortations and targets for the workforce 11. Eliminate numerical quotas for the workforce and numerical goals for management 12. Remove barriers that rob people of pride of workmanship, and eliminate the annual rating or merit system 13. Institute a vigorous program of education and self-improvement for everyone 14. Put everybody in the company to work accomplishing the transformation

Steps to problem solving? 7 steps

1. Define problem and establish an improvement goal 2. Develop performance measures and collect data 3. Analyze the problem 4. Generate potential solutions 5. Choose a solution 6. Implement the solution 7. Monitor the solution and see if it accomplishes the goal

What is the total quality management approach? 6

1. Find out customer wants (use internal customer and external customer) 2. Design a product or service that will meet/exceed customer wants (easy to use and produce) 3. Design processes that facilitate doing the job right the first time (find where mistakes are likely to occur and try to prevent them) 4. Keep track of results, and use them to guide improvements in the system (continue to always improve) 5. Extend these concepts throughout the supply chain 6. Top management must be involved and committed or TQM will just be another fad that fails and fades

Steps to benchmarking? 5

1. Identify a critical process that needs improvement 2. Identify an organization that excels in the process, preferably the best 3. Contact the benchmarking organization, visit it, and study the benchmarking activity 4. Analyze the data 5. Improve the critical process at your organization

Product quality is often judged in 9 dimensions. What are they with small descriptions?

1. Performance- min characteristics of product 2. Aesthetics- appearance, feel, smell, taste 3. Special features- extra characteristics 4. Conformance- how well a product corresponds to to design specifications 5. Reliability- dependable performance 6. Durability- ability to perform over time 7. Perceived quality- indirect evaluation of quality (reputation) 8. Serviceability- handling of complaints or repairs 9. Consistency- quality doesn't vary

What are Deming's key contributions? 2

14 points Special vs common causes of variation

What is the 80-20 rule?

80% of the problems come from 20% of the items

What is six sigma?

A business process for improving quality, reducing costs, and increasing customer satisfaction Used to reduce the occurrence of defects to achieve lower cost and improved customer satisfaction

What is are key requirement for registration for ISO?

A company review, refine, and map functions such as process control, inspection, purchasing, training, packaging, and delivery Must be re-registered every 3 years

What is a scatter diagram?

A graph that shows the degree and direction of relationship between two variables Can be useful in deciding if there is a correlation between the values of two variables Correlation may point to a problem Can have a positive or negative relationship Higher the correlation between two variables the less scatter in the points vise versa

What is total quality management (TQM)?

A quest for quality in an organization; looks at the quality of every aspect of the process that produces the product or service; used to prevent poor quality from occurring

What is ISO 14000

A set of international standards for assessing a company's environmental performance

What is ISO 9000

A set of international standards on quality management and quality assurance, critical to international business

What is brainstorming?

A technique in which a group of people share thoughts and ideas on problems in a relaxed atmosphere that encourages unrestrained collective thinking Goal ist to generate free flow of ideas on identifying problems and finding causes, solutions, and ways to implement solutions

Overview of process involvement steps 3

A. Map the process 1. Collect info about the process and identify each step of the process 2. Prepare a flowchart that accurately depicts the process (key activities and decisions are represented B. Analyze the process 1. Ask questions about the process and how things are flowing or if there are steps missing or duplicated 2. Ask even more questions about what can be added or shortened C. redesign the process

What is quality?

Ability of a product or service to consistently meet or exceed customer requirements or expectations (but customers have different requirements; this definition is customer-dependent)

Where can discrepancies take place?

Actual customer expectations and management perceptions of them Management perception of customer expectations and service-quality specifications Service quality and service actually delivered Service actually delivered and what is communicated bout eh service to customers Customers' expectations of the service provider and their perceptions of provider delivery

What is the plan-do-study-act (PDSA) cycle?

Aka Shewhart cycle or Deming wheel; conceptual basis for problem solving activities 4 basic steps: Plan, Do, Study Act

What are control charts used for?

Analyzing the output of processes to determine when corrective action is necessary

What is the Baldrige award?

Annual award given by the US gov to recognize quality achievements of US companies; focuses on the customer satisfaction

4 categories of costs associated with quality?

Appraisal prevention internal failures external failures

What is return on quality (ROQ)?

Approach that focuses on the economics of quality efforts Quality improvement projects are viewed as investments

What is the deming prize?

Awarded annually to firms that distinguish themselves with quality management programs and to individuals who lead such efforts

Ways to generate ideas? 3

Brainstorming, quality circles, and benchmarking

What is a control chart?

Can be used to monitor a process to see if the process output is random Can help detect the presence of correctable causes of variation

What is a run chart?

Can be used to track the values of a variable over time Can aid in identifying trends or other patterns that may be occurring

What is a histogram?

Can be useful in getting a sense of the distribution of observed values Can see if the distribution is symmetric, what the range of values is, and if there are any unusual values

What are Ishikawa key contributions? 2

Cause and effect diagrams Quality circles

What are quality circles

Circles comprise a number of workers who get together periodically to discuss ways of improving products and processes Can motivate workers by demonstrating management interest in worker ideas Have very little authority to implement any but minor changes

What are the 3 philosophies for Total quality management?

Continuous improvement Involvement of everyone in the organization Customer satisfaction (meeting or exceeding customer expectations)

What are Shewhart's key contributions? 1

Continuous improvement (Kaizen)

Other important elements of total quality management? TQM 10

Continuous improvement- philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs Competitive benchmarking- identifying other orgs that are the best at something and studying how they do it to learn how to improve your operation Employee empowerment- giving workers the responsibility for improvements and the authority to make changes to accomplish them provides strong motivation for employees Team approach- use of teams for problem solving and to achieve consensus takes advantage of group synergy, gets people involved, and promotes a spirit of cooperation and shared values amongst employees Decision based on facts rather than opinions- management gathers and analyzes data as a basis for decision making Knowledge of tools- employees and managers are trained in the use of quality tools Supplier quality- suppliers must be included in quality assurance and quality improvement efforts so their processes are capable of delivery quality parts and materials in a timely manner Champion- their role is promote the value and importance of of TQM principles throughout the company Quality at the source- the philosophy of making each worker responsible for the quality of his or her work Suppliers- partners in the process and long-term relationships are encouraged

What are Shewhart's key contributions? 2

Control charts Variance reduction

What are internal failure costs?

Costs related to defective products or services before they are delivered to customers

What are external failure costs?

Costs related to delivering substandard products or services to customers (after customer gets it) usually greater than internal failure costs on a unit basis

What are appraisal costs?

Costs related to measuring, evaluating and auditing materials, parts, products and services to assess conformance with quality standards (before customer gets it)

What are prevention costs

Costs related to reducing the potential for quality problems (before customer gets it)

main way to think about quality?

Degree to which performance of a product or service meets or exceeds customers expectation

What are the 4 primary determinants of quality?

Design How well the product or service conforms to the design Ease of use Service after delivery

What are the benefits of good quality?

Enhanced reputation for quality Ability to command premium prices Increased market share Greater customer loyalty Lower liability costs Fewer production and service problems (higher productivity) Fewer complaints from customers Lower production costs Higher profits

What does packaging and shipping have to do with quality?

Ensure goods are not damaged in transit, clearly labeled, and instructions are included, and it all occurs in a timely manner

What is the European Quality award?

Europe's most prestigious award for organizational excellence

What is in the study phase?

Evaluate the data collection during the do phase, check how closely the results match the original goals of the plan phase

What do customer services have to do with quality?

First department to learn of problems; responsible for communicating that info to appropriate departments, dealing in reasonable way with customers, working to resolve problems, and following up to confirm situation is handled

7 basic quality tools?

Flow chart Check sheet Histogram Pareto chart Scatter diagram Control chart Cause and effect diagram

What is DMAIC? What are the 5 steps?

Formal problem solving process of six sigma 1. Define: set the context and objectives for improvement 2. Measure: determine the baseline performance and capability of the process 3. Analyze:use data and tools to understand the cause and effect relationships of the process 4. Improve: develop the modifications that lead to a validated improvement in the process 5. Control: establish plans and procedures to ensure that improvements are sustained

What do the standards set by the ISO do?

Help facilitate international trade, provide governments a basis for health, safety, and environmental legislation, aid in transferring technology to developing countries Increase level of quality and reliability, productivity while making products and services affordable

What is the act phase?

IF results are successful, standardize the new method and communicate the method IF results are unsuccessful, revise the plan and repeat the process or cease this project

What is in the do stage?

Implement plan on a small scale if possible, document changes and collect data systematically for evaluation

What is fail-safing?

Incorporating design elements that prevent incorrect procedures; make process mistake proof

Typical goals of process improvement?

Increase customer satisfaction, achieving higher quality, reducing waste, reducing cost, increasing productivity, and reducing process time

What does poor quality lead to?

Increase of certain costs

What does ease of use mean?

Increase the likelihood that the product will be used for its intended purpose and in a way that will continue to function properly and safely

What does production/ operations have to do with quality?

It ensures that processes yield products and services that conform to design specifications (correcting root causes are important aspect here)

What does quality assurance have to do with quality?

It gathers and analyzes data on problems and working with operations to solve problems

What does quality at the source accomplish? 3

It places direct responsibility for the quality on the person(s) who directly affect it It removes the adversarial relationship that often exists between quality control inspectors and production workers Motivates workers by giving them control over their work (take pride in it)

What is the Deming Prize?

Japan's highly coveted award recognizing successful quality efforts (given annually) can also be given to other companies outside of the Japan Focuses on statistical quality control, making much narrow scope than the Baldrige Award

What is kaizen?

Japanese term for continuous improvement

What are difficulties with TQM (total quality management)?

Lack of company wide definition of quality (incoordination) Lack of strategic plan for change- chance of success is lessened and the need to address strategic implications of change is ignored Lack of customer focus- risk of customer satisfaction Poor intraorganizational communication- frustration, waste, and confusion ensue Lack of employee empowerment- not empowering employees gives impress of not trusting them View of quality as a quick fix- need to be seen as long term effort Emphasis on short term financial results- temporary solutions treat symptoms but not in the long run Inordinate presence of internal politics and turf issues- sap the energy of org and derail best ideas Lack of strong motivation- ensure employees are motivated Lack of time to devote to quality initiatives: don't add more work without adding additional resources Lack of leadership- managers need to be leaders

What is a primary role of management?

Lead an org daily operation & to maintain its viable entity in to the future

What are the consequences of poor quality? 4. with def

Loss of business - Can increase criticism and hurt reputation, and decrease share of market Liability - Will have to pay damages or injuries resulting from faulty design or workmanship Productivity - Mostly in manufacturing process if parts are defective and have to be reworked, if assembler has to try a number of parts before finding one, also poor tools and equipment lead to injuries and defective output Costs - Earlier in the process a problem is spotted the cheaper it is to fix it

What is essential for TQM to be successful?

Majority of those in an organization have to buy in to the idea or there is risk that a significant portion of the benefits of the approach will not happen Utilize a top-down approach and top management need to be visibly involved

Standards for ISO 14000 certification? 3 major areas? With def

Management systems- systems development and integration of environmental responsibilities into business planning Operations- consumption of natural resources and energy Environmental systems- measuring, assessing, and managing emissions, effluents, and other waste streams

What does procurement have to do with quality?

Obtaining g/s that will not detract from quality of the organization's g/s

What is a cause and effect diagram?

Offers a structured approach to the search for the possible cause(s) of a problem; aka fishbone diagram Helps to organize problem solving efforts by identifying categories of factors that might be causing problems Aks who what where when why and how

What does the ISO 9000 and ISO 14000 focus on?

Organization's processes rather than its products and services but but stress continual improvement

What is the cause and effect diagram (aka fishbone diagram) used for?

Problem solving and the implementation of quality circles (involve workers in quality improvement)

What is benchmarking?

Process of measuring an organization's performance on a key customer requirement against the bat in the industry or against the best in any industry Establish a standard against which performance is judged

What are the 5 key areas that are examined for the Baldrige award?

Product and process outcomes customer outcomes, workforce outcomes leadership and governance outcomes financial and marketing outcomes

What is the International Organization for Standardization (ISO)?

Promotes world wide standards for the improvement of quality, productivity, and operating efficiency through a series of standards and guidelines

What is ISO 24700?

Quality and performance of office equipment that contains reused components

What does design have to do with quality?

Quality begins here; includes features of the p/s, attention to the processes that will be required to make them and necessary to deliver the service to customers

What are Juran's key contributions? 2

Quality is fitness-for-use Quality trilogy

What are Crosby key contributions? 2

Quality is free Zero defects (do it right the first time)

What are Feigenbaum key contributions? 2

Quality is total field Customer defines quality

What is top management responsible for?

Quality; establish strategies for quality, they must institute programs to improve quality; guide, direct, and motivate managers and workers, set an example by being involved in quality initiatives

Key to quality?

Reducing the variability in process outputs

What is six sigma based on (principles)?

Reduction of variation is an important goal Methodology is data driven; it requires valid measurements Outputs are determined by inputs; focus on modifying and or controlling inputs to improve outputs Only critical few inputs have significant impact on outputs; concentrate on those

What is a check sheet?

Simple tool frequently used for problem identification Users can record and organize data in a way that facilitates collection and analysis Designed on the basis of what the users are attempting to learn by collecting data

6 major criticisms of TQM?

Some blindly follow it and neglect other priorities Programs may not be linked to the strategies of the org in a meaningful way There might not be a correlation between quality related decisions to market performance Failure to plan program before embarking can lead to false stars, employee confusion, meaningless results Might pursue continuous improvements when a dramatic one is needed Quality efforts may not be tied to results

What is in the plan stage?

Study current process; document it and then collect data on the process or problem Then analyze data and develop a plan for improvement + specify measures

How does ethics play a role in quality?

Substandard work- report and take responsibility for defective products and substandard service, poor designs, shoddy workmanship, and substandard parts and raw materials Having knowledge of this and failing to correct and report it in a timely manner is unethical and can have a number of negative consequences these can include increased costs for org in terms of lower productivity, increase in accident rates, inconveniences and injuries to customers, and increase liability costs

What is process improvement?

Systematic approach to improving a process; involves documentation, measurement, and analysis for the purpose of improving the functioning of a process

What are Taguchi key contributions? 1

Taguchi loss function

What is a pareto analysis?

Technique for focusing attention on the most important problem areas Classify the cases according to degree of importance and focus on resolving the most important ; 80-20 rule

What is the quality of conformance?

The degree to which goods and services conform to (achieve) the intent of the designers Affected by capability of equipment used, skills, training, and motivation of the workers

What is the quality of design?

The intention of designers to include or exclude certain features in a product or service

What does risk come from?

The use of substandard materials or work methods, which lead to inferior product quality and potential product liability

What does marketing and sales have to do with quality?

They determine customers' needs and comm them to appropriate areas of the organization; also must report any probs with products or services to the company

What is SERVQUAL?

Tool used to assess service quality; instrument designed to obtain feedback on an organization's ability to provide quality service to customers Focuses on tangibles, reliability, responsiveness, assurance, and empathy

What is a flowchart?

Visual representation of a process Help identify possible points in a process where problems occur Show decision points in the process to

Questions for benchmarking approach?

What organizations do it the best How do they do it How do we do it now How can we change to match or exceed the best