EIN5226 Module 1
Deming's 14 Points for Management (most important)
3.Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place. 4.End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust. 8.Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force. 11.A) Eliminate work standards (quotas) on the factory floor. Substitute leadership. B) Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership.
19th Century
A shift from agricultural society to an urban society with early industrialization. enabled by advances in technology, powered by engines and interchangeable parts. Eli Whitney is associated with the production of the cotton gin. First time machine and processes where developed and that's how uniform parts where produced and assembled into a final product. *factories were sole proprietorship, typically small factory run by owner.
1920 - WWII
Advancements in quality techniques and statistical quality control was found. At&t bell laboratory formed a quality department empathizing quality, inspection, test, and product reliability. - this is where Walter Shewhart created control chart concepts focusing on the process rather than the final product. - Acceptance Sampling is accepting or rejecting a lot of parts or goods based on statistical principles. During WWII with the scarcity of materials and safety concern, gov. and industry interest in statistical methods increased.
Cost of Quality
Cost of poor quality if you do not meet you specifications what does it cost you in terms of scrap, rework and production costs. Cost of attaining a quality product What it cost to do things wrong, resulting in losses such as time, money and opportunity.
TQM Principles
Customer focus Total Employee Involvement Process Centered Integrated System Strategic and systematic approach Continual improvement Fact based decision making Effective communication *top management commitment
The complaint department arranges for a replacement product to be sent to a customer. (review question)
External Failure cost
Post WWII (Japan)
Japan had very low amounts of materials and had to rebuild their factories. US sent experts to help them. Edward W. Deming introduced statistical control concepts. 1950s Joseph Duran introduced TQ concepts. The Japanese embraced all of these concepts and they started having a real competitive advantage. Japanese concepts improved and introducing products to the US. early 1970s Japanese production was a very real threat to US manufacturing.
Walter Shewhart
Major Contributions - Known for development of statistical process control charts at Bell Telephone Laboratories - Plan-Do-Check-Act cycle attributed to him
Continual improvement examples
Plan Do Check Act (PDCA) Quality Tools Six Sigma Programs 83 A3 Lean
Kaoru Ishakawa
Popularized Total Quality Control in Japan Developed Ishakawa diagram (also called fishbone diagram or cause and effect diagram) Popularized "Quality Control Circles" to involve workers in solving problems in their own work Authored "Guide to Quality Control" (1976 translation of "Genba no QC Shuho") and identified the "7 Quality Tools"
What type of activities would be considered to be in each of the traditional cost of quality categories?
Prevention cost would include Quality Design Reviews, Operator Training, Capability Studies, Process Control, Vendor Qualification. Appraisal cost would include inspection and test, test equipment and maintenance, inspection and test reporting and other expense reviews. Internal failure cost would include scrap and rework, design changes, correction reports, late time cards and excess inventory cost. External failure would include warranty costs, customer complaint visits, field service training costs, returns and recalls and liability suits.
Craftsmen
These individuals contributed greatly to new inventions and new ways of making things. -responsible for design and production -items made one at a time -pieces hand crafted and fit together
1970-1990 US Quality Emphasis
Turning point for the US industry. The US reacts to Japanese advances in TQM and shifts in emphasis from cost to quality. •Quality Philosophies adopted •Growth in use of Statistical Methods
Post WWII (US)
US was in a level of prosperity where there was an abundance of materials and emphasis on quantity. Factories began to produce get everything out of the door. Managers were measured on quantity shipped rather than quality. Quality made very little progress at that time in the US.
The "14 points for management" were articulated by ________.
W. Edwards Deming
Genichi Taguchi
Wrote Design of Experiments in 1962 Promoted principles of robust design: Instead of trying to eliminate or reduce causes of product performance variability, adjust design of product so that the product is insensitive to the effects of uncontrolled variation. Taguchi Loss Function - The further from target a characteristic is, the greater the quality losses are.
W. Edwards Deming
Wrote Out of the Crisis (1982) providing specific advise to get the US industry out of providence. Book known for: 7 Deadly Diseases 14 Points for Management Advocate for application of statistical theory
Joseph Juran
Wrote Quality Control Handbook 1st Edition in 1951, Now in 6th Edition 2010 "Vital few, trivial many" - The Pareto Principle or Juran's Principle? Top management must commit time and resources Specific improvement goals must be in the business plan Responsibility for improvement must be assigned People must be trained for quality management and improvement The workforce must be empowered to participate in the improvement process *basics for success
Armand V. Feigenbaum
Wrote Total Quality Control in 1961 Given credit for establishing Total Quality Control concepts
Total employee involvement
all employees committed to quality efforts team emphasis
Equipment used for testing an established product requires maintenance at regular intervals. (review question)
appraisal cost
Field service technicians are sent to training to learn how to fix appliances. (review question)
external failure cost
Early 1900's
factories get larger and person's tasks got smaller. Frederick Taylor - father of industrial engineering, complex operations broken into small tasks. Henry ford - model T, first mass produced products because of his assembly lines. Assembly lines were so large, tasks needed to be split into different departments. - inspection - production - specification
hidden cost of quality
iceberg
A part was found out of tolerance and had to be reworked and re-inspected? (review question)
internal failure cost
The quality control department inspects parts which have just completed a rework operation. (review question)
internal failure cost
Total Quality Management (TQM)
it is a management approach to long-term success through customer satisfaction. is based on all members of an organization participating in improving processes, products, services and the culture in which they work. The methods for implementing this approach are found in the teachings of such quality leaders as Philip B. Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa and Joseph M. Juran. increase external and internal customer satisfaction with a reduced amount of resources.
Customer Focus
meet customer requirements and exceed expectations external customers internal customers
Extensive training is required of all sales personnel prior to interacting with customers. (review question)
prevention cost
At what point in the life cycle of a product do each of the traditional cost of quality categories occur?
prevention cost occur prior to production to prevent poor quality in products or services appraisal cost occurs when product is in the inspection phase, costs associated with measuring, evaluating or auditing products or services to ensure conformance to quality standards or performance requirements internal failure cost occurs when finding something is not right with a product and it is still in the warehouse and has not been shipped to the customer. external failure cost is associated when products or services do not meet requirements where the failure is identified prior to delivery of product or furnishing of the service to the customer.
what is meant by hidden cost of quality? (review question)
the biggest portion of cost of poor quality is not visible and unless effort is made to uncover some of them the real cost of poor quality is not known and makes a company unprofitable.
Traditional Model of quality cost
the thought then was that it was too expensive to have perfect quality. red curve is failure cost and the green curve is the prevention cost. the failure cost goes down as the quality level approaches perfect quality. to get total quantity cost you must add the failure cost and the prevention cost together
What circumstances in the first half of the 20th century prompted the early development of statistical quality control techniques?
the us focused to much on the quantity of manufacturing rather than quality. Japan started focusing on TQM which gave US a huge competitor. Doing this the
New model of optimum quality costs
total quality cost are minimum at perfect quality. can achieve 0 defects
Quality Gurus
•Walter Shewhart •Armand V. Feigenbaum •Philip B. Crosby •Joseph Juran •W. Edwards Deming •Kaoru Ishakawa •Genichi Taguchi
Philip B. Crosby
•Wrote Quality is Free (1980) Absolutes of quality management 1.Quality means conformance to requirements. 2.Quality comes from prevention. 3.The quality performance standard is zero defects. 4.Quality is measured by the price of nonconformance